US asset managers turn to London to open latest offices
Three US asset managers have opened sales offices in London in the past month. Sales and client service staff based in the UK capital are seen as essential for businesses that have until now run most of their money in the US.
That is less to do with the UK’s defined-benefit pensions market, most of which is closed and in run-off, and more to do with being in the same time zone as asset-rich clients in the Middle East, Europe and Africa.
The Kansas City-based investment house American Century Investments is one of the new arrivals, setting up in London this summer under Michael Green, a former chief executive of Morgan Stanley Investment Management’s international business. American Century has never been outside the US before.
Green said: “In the US, out of the top 20 asset managers it is only American Century and Dodge & Cox that have no material business outside the country. But if you look at the last two years, net inflows have all come from outside the US.
“In the current environment asset managers that are overly dependent on one country or one sector are the ones that are likely to suffer more.”
Despite only being on the ground for a couple of months, American Century has got off to a good start, according to Green. It has signed up three former US clients already – one from the Middle East and three from continental Europe.
Brandywine Global Investment Management, a unit of Legg Mason, also set up in London last month. Ted Whitaker, managing director of Brandywine’s international business, said: “We will be better equipped to meet the needs of a growing list of clients based in the UK, Europe, the Middle East and Africa.”
Brandywine’s office is led by Johan Joly, a former marketer for Lehman Brothers’ fixed-income portfolio analytics group.
Vanguard Investments, one of the US’ biggest fund managers with $1.3 trillion (€1 trillion) in assets, is another to have opened in London. It is in a slightly different position to the other two, having run a sizeable European operation from Waterloo, Belgium for the past decade, which is focused on institutional clients.
A spokeswoman for the company said its policy was to establish offices in all the primary countries where it has clients to serve.
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