NEW YORK, July 16, 2018 /PRNewswire/ -- Distribution 360,
the latest European study from Broadridge Financial Solutions, Inc.
(NYSE: BR), reveals growing opportunities for asset managers
selling in Europe. Despite
increased complexity and disruptions in the region's fund markets,
Europe's pool of accessible assets
has reached €3.4 trillion.1
Broadridge Distribution 360 offers asset managers an independent
guide to the European fund landscape, navigating firms to
accessible opportunities as well as revealing the relative
importance of different distribution channels from country to
country – critical knowledge for firms defining or honing their
European distribution strategy.
The key findings from the study include:
- The European opportunity is enormous and growing. The
market that independent asset managers can realistically address is
estimated to be €3.4trn – up 17 percent on 2016, thanks to a
combination of rocketing sales and asset growth. Growth was
registered in all key European markets.
The top-five markets by accessible assets:
1. UK
2. Italy
3. Switzerland
4. Germany
5. France
- European savers maintain very high allocations to cash
with only 9 percent of Eurozone households owning a mutual fund
despite compelling reasons to invest in funds at present.
- One size doesn't fit all. Europe's core fund markets exhibit disparate
characteristics in terms of product preferences, distribution
channels, selector behaviour and – crucially – openness to
cross-border products.
- Europe's distribution
landscape is moving towards its most important phase of
development, a phase that will be characterised by a greater
focus on asset managers' marketing, service and brand
characteristics – the key elements of differentiation, rather than
simply product.
- Usage of sub-advisory arrangements continues to blossom,
with core equity or flexible mixed asset strategies the primary
areas of activity.
"Europe continues to represent
a great opportunity, and regulatory initiatives such as the Capital
Markets Union (CMU) and the Pan-European Pension Plan (PEPP) could
boost the uptake of third-party funds," said Mark McFee, Director of Broadridge EMEA
Insights. "But anyone serious about tapping these opportunities
needs to understand what is driving change in the distribution
landscape as a whole, and what makes each market tick. The markets
that appear most attractive on first glance can represent
significant challenges too, be it due to a strong bias towards
locally domiciled products, for example in the UK, a highly
competitive environment in terms of the sheer number of groups
present, such as in Germany, or
relatively short fund holding periods, as is the case in
Italy."
Much of the analysis in Distribution 360 is based on
MackayWilliams' proprietary 'accessible assets' data. The
completion of this research follows Broadridge's recent acquisition
of MackayWilliams, which extends Broadridge's ability to offer
clients a combined view of global institutional and retail data
analytics with qualitative insights into the global funds
industry.
About the research
Distribution 360 is an annually
updated online solution, based on analysis of data from multiple
sources, including proprietary market data and unique research
amongst 1,000 of Europe's key
distributors, insights from local experts, and two decades of
experience in assessing the asset-gathering opportunities available
to third-party groups in Europe's
diverse and ever-changing markets. This edition of the research is
based on 2017 data.
Analysis is based on data that estimates the portion of the
European market that can realistically be addressed by third-party
asset managers. This combines top-down market data with in-depth
research into fund-selector views and behavior to assess the degree
to which markets and distribution channels are open to independent
product offerings.
For more about Distribution 360, visit
https://d360.mackaywilliams.com.
About Broadridge
Broadridge Financial Solutions, Inc.
(NYSE: BR), a $4 billion global
fintech leader, provides investor communications and
technology-driven solutions for broker-dealers, banks, mutual funds
and corporate issuers globally. Broadridge's investor
communications, securities processing and managed services
solutions help clients reduce their capital investments in
operations infrastructure, allowing them to increase their focus on
core business activities. With over 50 years of experience,
Broadridge's infrastructure underpins proxy voting services for
over 50 percent of shares globally, processes votes in more than
100 countries, and processes more than $5
trillion in fixed income and equity trades per day in more
than 70 countries. Broadridge employs approximately 10,000
full-time associates in 16 countries. For more information about
Broadridge, please visit www.broadridge.com.
Media contact:
Matthew Luongo
Prosek Partners
mluongo@prosek.com
+1 646-396-0966
1 (Figure calculated as at 31/12/2017, including ETFs
but excluding money market funds and funds of funds)
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SOURCE Broadridge Financial Solutions, Inc.