US asset manager American Century Investments is setting up its first international business, based in London, as firms look outside the battered domestic equity market for investors.
“The non-US asset management market is growing faster than the US business, so it makes sense to expand outside,” said Michael Green, former chief executive of Morgan Stanley Investment Management for the non-Americas, who will head the international business from London.
American Century Investments, which focuses on equities, has $84bn (£47.4bn, €60.5bn) assets under management and is unknown outside the US. It aims to increase its growing number of non-US investors through targeting institutional investors in northern Europe, the UK and the Middle East. It currently manages $1.3bn assets for European and Middle East investors.
Mr Green said the move comes as “long-only traditional asset managers are becoming more in demand than managers focusing on structured products”.
American Century is planning to launch a range of Ucits III funds focusing on growth equities in global, US and emerging markets to be up and running by the first quarter of next year.
Mr Green said the asset manager was not planning to expand through acquisition because of possible integration difficulties for a small operation but will develop through organic growth.