Boston moves ahead in world finance rank
The global recession has actually enhanced Boston’s reputation as one of the top financial centers in the world.
A new report ranks the Hub within the top 10 financial centers in the world, moving from 11th place to ninth place, as many other financial hotspots tumbled along with the global economy.
The “Global Financial Centres Index,” prepared for the City of London Corp., indicates that major investment players across the globe appreciate Boston’s steady environment for financial firms and experts at a time of deep market turmoil.
Previous rankings by other firms usually have Boston in top 20 lists of financial cities – thanks to the large number of mutual-fund, wealth-management, venture capital and private-equity firms based here.
But the City of London Corp.’s study, which was conducted by the UK-based Z/Yen Group, stands out because, in addition to data measuring the amount of funds flowing through a city, it relies on surveys of financial executives who are asked to rate cities.
Those interviewed are also dominated by European executives, confirming that Boston has an international, Old World flare appealing to those on the other side of the Atlantic.
Jim Lowell, editor of Fidelity Investor, an independent print and online newsletter, said Boston is considered a “hidden gem” by some international investors.
“Boston has long been known for being staid, fiduciary (minded) and for its long-term asset management,” said Lowell.
Those somewhat conservative traits have apparently helped Boston during tough financial times.
London and New York remain the unquestioned leaders of the financial world, the index report said.
If anything, London and New York’s leads may have solidified, despite London, in general, and New York, in particular, being epicenters of the current financial crisis. The two cities have maintained their lead partly because many up-and-coming, fast-growing cities in Asia and elsewhere took heavy hits during the current economic crisis, the City of London report said.
Boston was also a beneficiary of the recession, in terms of rankings.
The Hub rated particularly high for its financial “infrastructure” and “market access” to funds and deals, the report said.
How long Boston can maintain its strong, top-tier status is in question.
Cities throughout Asia and the Middle East – such as Shanghai, Beijing and Dubai – are emerging as financial powerhouses that want a larger piece of the funds and jobs flowing to more established financial centers, the report said.