BlackRock maintains top position in
Broadridge's Fund Brand 50 global asset manager rankings, but ESG
runs into trouble in Europe
LONDON, March 26, 2024 /PRNewswire/ -- The latest edition
of Broadridge's Fund Brand 50 (FB50), an annual research study by
global Fintech leader Broadridge Financial Solutions,
Inc. (NYSE:BR) was released today, highlighting the world's
best-performing third-party asset management brands. The study
reveals that cautious European investors put the squeeze on the
asset management industry – parking cash in bank savings accounts
and money market funds – and scrutinising asset manager credentials
like never before. As slowing growth colours global economic
forecasts in 2024, fund groups need to play to their strengths and
flex their brand attributes to compete in a saturated market that
cannot sustain the current levels of competition.
"In a year that saw passive managers gain further momentum,
Vanguard moves into the top-10 brand rankings, scoring highly as a
key international player and for its solidity," said Barbara Wall, Director of Global Distribution
Insights, Broadridge. "Fellow passive specialist iShares also moves
up the league table from eighth place to sixth, unseating Robeco,
although the Dutch active manager maintains pole position for its
ESG credentials. The passive trend is further evidenced by the
entry of Xtrackers into the top 50, with the firm's range of
sectoral and thematic ETFs proving popular with fund
selectors."
The independent study, now in its 13th year, measures
and ranks asset managers' relative brand attractiveness based on
fund selector perceptions: taking into account 10 brand attributes
to reveal the top global and regional brands in Europe, APAC, and the US. FB50 also reveals
the local market brand leaders in Europe and APAC's most significant retail
markets for third-party fund distribution. This is the latest study
from Broadridge's Data and Analytics business and highlights the
depth and breadth of the firm's global market insights.
Top-10 European Asset Management Brands
Rank
|
Fund
Group
|
Change
|
1
|
BlackRock
|
0
|
2
|
JPMorgan AM
|
0
|
3
|
Fidelity
|
0
|
4
|
Pictet AM
|
0
|
5
|
Amundi
|
0
|
6
|
iShares
|
+ 2
|
7
|
Robeco
|
- 1
|
8
|
Schroders
|
- 1
|
9
|
Vanguard
|
+ 4
|
10
|
PIMCO
|
+ 2
|
Key insights
The top-five global brands, led by BlackRock, are all industry
giants in terms of both assets under management and operational
scale. While the top five remain undisturbed from last year, there
is significant movement in the top 10. The remainder of the top-50
list sees selector's favourite companies run the gamut, from niche
product and local market specialists to the major one-stop-shop
providers.
ESG impact
The big story is that 2023 was a bad year for ESG in
Europe. Transparency issues, poor
performance, regulatory pressures, and energy security issues all
exacerbated the situation. Outflows from responsible investment
funds, greenwashing concerns, and the reclassification of many
Article 9 products were all compounding factors, as some
commentators have questioned whether ESG has reached a tipping
point.
Broadridge interviews with fund selectors suggest that this may
be overexaggerated, as ESG still constitutes a major consideration
in investment decision-making. But firms are undeniably more
skeptical and subject asset manager credentials to greater scrutiny
to validate a firm's ESG bona fides. To facilitate this, selectors
would like a more standardised vocabulary around ESG, as well as
improved communication around portfolio positions and
engagement.
Asset management brands strongly associated with ESG investing,
such as Robeco, Liontrust, Nordea, and Pictet have all seen their
brand scores fall in 2023, which may point to sustainability
credentials being less of a differentiator in this more skeptical
climate. Further regulation has been touted as a solution, but
Broadridge's fund selector interviews suggest that this could prove
a hindrance, rather than a help, to the ESG cause.
Top valued attributes
The top-five most important attributes in Europe have seen subtle shifts in 2023.
'Appealing investment strategy' replaces 'Client-oriented thinking'
in first place. This is due to asset managers presenting
alternative investment choices to worried clients, many of whom
were withdrawing from long-term mutual funds and resting their
money in interest-bearing savings accounts.
Fund launch activity was subdued as providers prioritised
cost-cutting efforts. It is telling that 'Innovation/Adaptation to
market change' dropped out of the top five to be replaced by
'Solidity' – an attribute that last year was far more prominent in
US and APAC than EMEA. This change benefits the large global firms,
a trend we have also observed in APAC and the US. Big firms tend to
benefit when investor confidence is low.
Good communication remains vital, which is why 'Keeping best
informed,' moves up a rung to third place. Selectors particularly
value proactive communication when funds have underperformed.
Additional findings from this year's study
include:
- While ESG convictions may not be the game changer they once
were, it is noteworthy that 50% of the top-10 brands score highly
in this area. Amundi, in particular, has been praised for its range
of sustainable investments, including its climate-neutral ETF
offerings.
- The expansion into the private markets space is an emerging
differentiator. Schroders reputation in the growing private markets
and fixed income spaces mitigated criticism of the firm's fees and
allowed the manager to limit the damage done to their brand to
dropping a single rung on the ladder.
- Fixed income was one of the few bright spots in an otherwise
gloomy landscape, as risk-averse investors sought guaranteed
returns. PIMCO's strength in the fixed income space helped the firm
regain a top-10 berth.
- A relatively risk-averse European climate was a boon to passive
specialists. In many cases, this was at the expense of active
specialists, although active ETFs are a growing niche – comprising
approximately 5% of Europe's total
ETF intake in 2023.
- A webinar is scheduled for March 27,
2024 at 2 PM GMT /
10 AM ET / 10
PM HKT to reveal the top asset management brands in each
region. Registration is available to all at
https://event.on24.com/wcc/r/4510770/F63F5F36B873DEE0FC7D364394198FBE
and is now open.
About the research
The Broadridge Fund Brand 50 report is an annual study
monitoring the influence of brand on third-party fund selection.
The study is based on intensive interviews in Europe, APAC, and the US with more than 1,200
of the most significant fund selectors and gatekeepers – the key
decision makers who choose which funds and groups are added to a
distributor's buy list. Interviewees name their top-three suppliers
across the following 10 brand attributes.
These attributes are as follows:
- Appealing investment strategy
- Client-oriented thinking
- Keeping best informed
- Expert in what they do
- Solidity
- Stability of investment management team
- Innovation/Adaptation to market
- Key international player
- Local knowledge
- Social responsibility/Sustainability
These answers, as well as commentary from other preference
questions, are collated using statistical analysis and transformed
into a 'Total Brand Score', on which groups are ranked.
Asset managers, consultants and other industry stakeholders
interested in receiving the in-depth Broadridge Fund Brand 50
analysis can make their request via the Fund Brand 50 information
page.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with over $6 billion in
revenues, provides the critical infrastructure that powers
investing, corporate governance, and communications to enable
better financial lives. We deliver technology-driven solutions that
drive business transformation for banks, broker-dealers, asset and
wealth managers and public companies. Broadridge's infrastructure
serves as a global communications hub enabling corporate governance
by linking thousands of public companies and mutual funds to tens
of millions of individual and institutional investors around the
world. Our technology and operations platforms underpin the daily
trading of more than $10 trillion of
equities, fixed income and other securities globally. A certified
Great Place to Work®, Broadridge is part of the S&P 500® Index,
employing over 14,000 associates in 21 countries.
For more information about us, please visit
https://www.broadridge.com/.
Media Contact:
Ruby Yeomans
Cognito
+44 (0) 7463730043
Ruby.Yeomans@cognitomedia.com
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