Foreword Introduction: the opportunity Policy and regulation Aligning US and UK approaches Investment and capital 昀氀ows Sector focus Looking ahead Sector focus US and UK 昀椀nancial and professional services: growing together Asset management Virtually all US managers among the world’s Top 50 have a physical presence in the UK, often for their international headquarters. And they continue to expand, with Blackstone and M12 recently setting up a new infrastructure investment team in London and Rockefeller Asset Management International and Apollo Management opening their 昀椀rst 15 international o昀케ce. Firms are also setting up outside London, such as Vanguard (Manchester) and Blackrock (Edinburgh). Other 昀椀rms like Franklin Templeton have portfolio managers in London, Edinburgh and Leeds. This is because the UK o昀昀ers access to clients around the world, global investment opportunities and expertise in a wide range of asset classes and sectors. Large US asset owners such as The New York State Common Retirement Fund (NYSCRF) and California Public Employees’ Retirement System (CalPERS) have both allocated real estate and 16 infrastructure mandates here. US investors consistently make up the largest single client base for the UK asset management sector. Assets managed in the UK on behalf of North American clients were valued at £845bn in 2022 – around 20% of assets managed for 17 overseas clients. £845bn “As a global investment manager, the UK is an important and strategic location for our international business. The availability of key Assets managed on behalf of North American clients from the UK talent, convenient time zone and supportive regulatory and policy frameworks, in addition to the attractiveness and scale of the local market, are important factors in our choosing to locate global and regional talent and functions in London, Edinburgh and Leeds.” Martyn Gilbey, UK Country Manager, Franklin Templeton Sources: 15. fDi Markets accessed October 2023 16. Pitchbook 2023 17. Investment Association 2023 9