UBS Asset Management has maintained its lead at the top of Broadridge’s China Power Ranking, but JP Morgan Asset Management and Blackrock are fast catching up.
UBS AM managed to hold the overall top ranking because of its strong China AUM growth, with its inbound China fund assets growing by 27% during the first half this year to reach $19.3bn, the fintech firm said in a report.
However, JP Morgan AM has overtaken UBS AM to become the most recognised global brand in China, based on a survey of retail investors conducted by Broadridge. This can likely be attributed to its recent announcement to take full control of its joint venture in China, China International Fund Management.
Meanwhile, Blackrock has made good progress on multiple fronts, including brand perception, China AUM growth from its joint venture, as well as local operational strength and business scope, according to the report.
“Not only has Blackrock been approved to set up the first wholly foreign-owned retail fund company in China, it also plans to establish a majority-owned bank wealth management JV with Temasek and China Construction Bank,” Yoon Ng, Broadridge’s Singapore-based senior director for Asia-Pacific insights, said in the report.
Other global asset managers, especially those that are part of a joint venture in China, also improved their scores during the first half, driven by a strong domestic market rally and rising demand for Chinese equities.
“This led to strong growth in global asset managers’ China fund AUM, which helped their scores,” Ng said.
Broadridge makes use of six unequally-weighted criteria to determine the rankings. The highest weightings include local operational strength (25%) and size of China AUM (20%), which include domestic (Chinese investors investing in China), inbound (foreign investors investing in China) and outbound (Chinese investors investing overseas) assets. Money market funds are excluded.
Brand perception in China also makes up a huge weighting of the score (20%), followed by the extent of business scope (15%), China as a strategic opportunity (10%) and global investment strength (10%).
No change in top 10 managers
There was no change in the top-10 ranked managers compared to Broadridge’s previous ranking in April, although there were some moves within the list, according to the report.
For example, Eastspring Investments rose to seventh in the ranking from ninth previously, while Axa Investment Management rose one spot to sixth. The gains can mainly be attributed to their improved results in retail brand perception, as well as the AUM growth at their China JVs.
On the flipside, Fidelity dropped two spots to eighth, according to the report. Although it obtained a higher score on brand perception, it was offset by its declining offshore AUM score, as its Fidelity China Focus Fund suffered redemptions due to performance.