New York is by far the largest financial centre in the US, overshadowing rivals for both the size and depth of its capital markets and banking sector, as well as in its attractiveness to foreign investors. In the 12 months to the end of June 2014, a total of $343m-worth of foreign direct investment (FDI) reached the city’s financial services sector, according to database fDi Markets. This data includes investments that originated from other US states too.
Lesser known US hubs, however, also proved to be strong catalysts for foreign investment. Ranking international financial centres by capital expenditure, Columbus in Ohio is second in the inward FDI list, bringing in a total of $189m in FDI, while Tampa in Florida, is a close third with $188m-worth of investments. Furthermore, Tampa received the largest single investment across all hubs – this is an estimated $163m that USAA, the Texas-based financial services provider to the US military and their families, spent to expand its local presence.
New York also shows its might when it comes to outward investment to other financial hubs. Total FDI outflows from the city were $3.48bn and included projects to be developed in China, India and Russia. The biggest single investments were directed to Brazil, however. New York-based asset manager StepStone and investment bank Greenhill & Co have invested an estimated $361m each to open offices in São Paulo. The second largest US hub by FDI outflows is Chicago, Illinois, which generated only about one-tenth of New York’s investments, at $364m.
Boston – the host of this year’s Sibos, the international cash management and trade finance event running between September 29 and October 2 – also features in the outflows list, sitting in 10th place with a total of $139m in outward FDI.
The largest of Boston’s three investments originated since July 2013 is State Street’s estimated $82m to open an office in Shanghai.
