There was no change among the top five asset managers in Asia Pacific, according to the latest edition of Broadridge’s Fund Brand 50, an annual research study by Broadridge Financial Solutions.
BlackRock remained at the top of the league tables, followed by JP Morgan Asset Management, Fidelity International, Allianz Global Investors and AllianceBernstein.
“The lack of movement at the top of the leader board belies turbulent underlying market conditions,” said Broadridge.
“Global and local managers had to navigate a more challenging fund landscape across Apac and fund selectors became more cautious as a result. Apac fund selectors took a risk-off stance and displayed a strong preference for low-cost products with minimal exposure to market forces.”
Yet, there were some movements further down the league tables, as fund selectors consolidated business among larger firms.
Schroders gained a place from the 2021 survey to reach sixth, while PIMCO jumped three places to seventh.
Franklin Templeton and Nomura Asset Management dropped two places each to eighth and 10th respectively and Vanguard remained in ninth place.
Top-10 APAC Asset Management Brands
|2||JPMorgan AM||No Change|
|4||Allianz GI||No Change|
|5||Alliance Bernstein||No Change|
|8||Franklin Templeton||– 2|
|10||Nomura AM||– 2|
The market uncertainty over the last year has led to Asia fund selectors being more cautious when choosing who to invest with and what to buy.
“Apac fund selectors adopted a risk-off stance, displaying a preference for global brands with proven track records, appealing investment strategies and low-risk products with regular income components,” said Evonne Gan, engagement manager for asset management advisory at Broadridge.
“Solidity was more important to fund selectors in Apac than in other regions, as buyers looked to consolidate business among firms with whom they have an existing relationship.”
Moreover, the market volatility also led to fund buyers prioritising asset managers’ expertise, as they sought out high-quality analysis examining the impact of economic and geopolitical uncertainties on markets.
“Firms that had expert teams in place to provide this analysis, particularly on a tailored basis, found themselves at a significant competitive advantage,” Broadridge said.
Appealing investment strategy
Just as with the 2021 survey, Apac fund selectors chose “appealing investment strategy” as the most important brand attribute in 2022.
When choosing a product to invest in, clients favoured low risk products that show a regular income and solid track record, which tend to be found among the larger global asset managers.
The second and third most important attributes identified by Apac asset managers were “client oriented thinking” and “expert in what they do”.
Despite investors’ tendency to seek safe harbour in a volatile climate, Apac fund selectors actually valued ‘innovation/adaptation to market’ in fourth place, displacing ‘solidity’, which dropped down to fifth.
Regardless of geopolitical uncertainty, China is the most coveted market within the Apac region with global managers actively increasing their retail exposures.
Although the market is still highly competitive and remains largely dominated by local firms, Broadridge noted that Chinese fund selectors are beginning to favour larger global firms due to their more comprehensive product offerings, strong global brand recognition and client service capabilities.