Mass Finance Sector Impact On State Economy Up $5.2 Billion
For immediate release: June 12, 2012
Contact: Tom De Santes, Mass Insight, 617-778-1537 email@example.com
Mass Finance Sector Impact On State Economy Up $5.2 Billion
Mass Insight/PWC Report Shows
Over $40 Billion Contribution with close to 170,000 jobs
Boston, MA – Mass Insight has released the latest annual report prepared for its Boston Financial Services Leadership Council in partnership with PricewaterhouseCoopers highlighting the impact of the state’s financial services sector on the economy.
New findings in the 2012 Mass Insight/PWC Mass Finance Impact Report reveal the financial services sector in the state significantly increased its contribution to the state’s economy in 2011 despite the recession, and in job retention has outperformed the New York and California sectors over the last four years of the down economy. Core business in asset management, retirement and risk management, as well as increased globalization of money management, contributed to a nearly 15% increase in contribution to gross state product from $35.5 billion in (2010) to $40.7 billion in (2011) and sustained nearly 170,000 jobs.
The Commonwealth’s “complete portfolio”, compared to transaction-focused capitals like New York, provides a balanced sector based on a unique cluster of fiduciary services, from venture capital and private equity supporting innovation and business growth to the asset management, retirement and risk management services that preserve and grow capital.
Other key indicators from the report of Boston’s success in financial services include:
4.5 % increase: Average Wages for Financial Services and supporting jobs have increased to $115,000
23% increase: Hedge Fund Assets for the top players have increased to nearly $100 billion
28% increase: Sovereign Wealth Funds under management increased from $3.6 trillion to $4.62 trillion
45% increase: Venture Capital Funds re-invested in the state’s emerging industries
The Mass Finance Impact Report was presented at a Global Finance Centers 2020, one-day leadership forum convened by Mass Insight, The Commonwealth, and the Boston British Consulate at MIT’s Sloan School to follow up on Governor Deval Patrick’s trade missions. Governor Patrick opened presentations, which brought together a delegation of London finance leaders with Boston’s top firms and academic experts to discuss key finance trends and success factors and identify an agenda for Boston-London business and academic collaborations in the wake of the continued integration of China, Asia and other rising finance centers into global capital markets.
“The financial services sector continues to be a major contributor to The Commonwealth’s economy,” said Governor Patrick. “Our ability to leverage the unique strengths within this vital sector will help our state compete regionally, nationally and on a global scale as we move towards 2020.”
Governor Patrick spoke to financial service leaders and industry experts from Boston and London at The Global Finance Centers 2020 Forum on Monday, June 11 at MIT Sloan School of Management, where the report was presented. The findings supported discussions as financial experts from industry, policy, and academia collaborated to position Boston as a leading global finance center.
“Boston is the leading U.S. asset management center and a thought leader on retirement policy and risk management,” said William Guenther, Chairman, CEO and Founder of Mass Insight Global Partnerships. “Our leadership is being recognized globally and our partnerships with London will position us for success as China and Asia continue to rise.”
Andrew Lo, Professor of Finance and Director of the Laboratory for Financial Engineering at MIT Sloan, an expert panelist at the global forum, adds, “Boston is not only the world’s center for the asset management industry, but with all of the universities, consulting practices, and think tanks, has become a mecca for research on investments, risk management, and financial technologies.” Boston continues to gain prominence in global markets as a result of its ability to sustain success, support innovation, and provide thought leadership around the financial services, which have garnered it international attention.
“Boston is a great partner for London’s world-leading financial services community because of its world-class asset management firms and its focus on financing innovation,” said Dr. Phil Budden, British Consul General in Boston and co-host of the global forum. “Boston is well-placed in a world of changing policy, regulatory and technological challenges – to provide leadership.”
At Monday’s forum, new BFSLC member Edvaldo Morata, Managing Director of Corporate Banking, Sovereign|Santander, summarized the event by highlighting “the importance of the innovation economy in Massachusetts” where Boston has successfully become a “gateway to doing business in the region.”
About the Boston Financial Services Leadership Council: The Boston Financial Services Leadership Council (BFSLC) is an initiative of Mass Insight Global Partnerships and is led by co-chairs John Hailer, President and CEO, Natixis Global Asset Management; James Phalen, Executive Vice President, State Street Corporation; and Ronald O’Hanley, President, Asset Management and Corporate Services, Fidelity Investments. The BFSLC brings together executives from the Boston financial services community with academic partners to advocate for the sector in Massachusetts, to identify relevant state and national policy challenges, and to establish regional and global partnerships to support Boston’s role as a global finance center.
About the Mass Insight Global Partnerships: Mass Insight Global Partnerships, founded in 1989 by William Guenther, is a Boston-based consulting and research firm that builds strategic pre-competitive alliances between higher education, industry and government, both regionally and globally. Mass Insight organizes collaborative, performance-based leadership initiatives supported by individual members, and uses communications, publications, policy research and public opinion surveys to shape public-private actions and develop innovative partnerships. Financial services partners were among the 20 charter members of the Advanced Cyber Security Center launched last year by Mass Insight, and led by a cross-section of partners including MITRE, Boston Federal Reserve Bank and the Commonwealth of Massachusetts, to defend against the most sophisticated attacks on IT systems.