U.S. Fund Brand 50

Vanguard Unseats BlackRock’s Top Spot in Broadridge’s 2024 Best-Performing Fund Brand Ranking in the U.S.

13^th annual ranking highlights that ‘Solidity’ and ‘Client-oriented thinking’ distinguish leading asset managers

NEW YORK –  March 26, 2024 – 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. U.S. fund selectors prize solidity and client service as the domestic giants jostle for position and strengthen their hold on the asset management industry.

“In 2024, fund selectors and gatekeepers were resolute that top-choice managers concentrate on services that add value to their investors, such as keeping them best informed and sharing their knowledge of the markets,” said Jeff Tjornehoj, Senior Director, Fund Insights, Broadridge. “Those same selectors also emphasized asset management partners who help them meet the shifting needs of heterogeneous investors through development of appealing investment strategies.”

The independent study measures and ranks asset managers’ relative brand attractiveness based on fund selector perceptions: taking into account 10 brand attributes to reveal the top U.S. and global brands. 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 U.S. Asset Management Brands

Key insights

While no-one new breaches the top five, the major firms jostle for position, with Vanguard usurping BlackRock’s position atop the ranking. Vanguard was able to maintain first place in the three highest-ranked brand attributes and duked it out with BlackRock across the entire brand spectrum. In fact, the two firms split first place in eight of the 10 categories, with Vanguard winning by points total.

There was plenty of competition elsewhere in the top ten, as JPMorgan took fourth, pushing Fidelity down to fifth, as First Trust took T. Rowe Price’s 10^th place position.

Homegrown groups continue to dominate the U.S. – in fact they significantly strengthened their domestic dominance. French firm Natixis IM remains the highest-ranked non-US brand but fell from 22^nd place to 32nd.

2023 was a gangbuster year in U.S. markets. Domestic stocks were up 24%, international equities up 19.5%, and a well-timed fourth-quarter rally saved bonds from an unprecedented third consecutive year of losses as they returned 5.5%.

Last year’s uncertain climate saw investors cling to stability and resulted in stasis in the rankings. This year, investor confidence returned, and firms sought new ways of differentiating themselves from their competitors.

Valued attributes

While U.S. fund selectors were less risk-averse than in 2022, they still prized ‘Solidity’ above all other attributes – resulting in a consolidation of strength for the domestic giants. ‘Stability of investment management team’ was also a top-five attribute, as fund selectors desire stability that extends to the teams that they work with.

‘Appealing investment strategy’ ranked third in the list of desirable attributes. Investors favor asset managers who can offer a clear and effective strategy for balancing risk and returns. A well-defined strategy can distinguish a firm from competitors in the eyes of clients with specific investment approaches or needs.

Expertise is also highly valued in the U.S. – advisers want to shift the burden of research onto asset managers. Clients preferred approachable, knowledgeable fund specialists who can provide specialized, detailed analysis in a timely manner.

Additional findings from this year’s study include:

• US fund flows are dominated by the myriad decisions made by intermediaries on behalf of individual clients to buy or sell a fund. To help facilitate this, the industry innovates new products (model portfolios, interval funds, separately managed accounts, actively managed ETFs, etc.). Strong equities and fragile bonds gave asset managers the opportunity to target clients with communications advising them on how to navigate this changing landscape. Firms that were able to do so saw their brands burnished.
• A rush of advisers seeking out private equity and private debt opportunities helped alternatives manager Blackstone Group jump 57 spots to land in 21st position.
• Fund selectors highly value clear and detailed marketing materials. In a crowded marketplace, successful managers offer fund selectors a wide range of new investment products. Effective communication of the value of these product strategies is as important to fund selector decision-making as offering a wide range of products from which to choose.

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.

• Solidity
• Client-oriented thinking
• Appealing investment strategy
• Thinks and acts globally
• Stability of investment management team
• Experts in what they do
• Knowledge and understanding of the markets
• Innovation/Adaptation to market change
• Keeping best informed
• 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.

Europe Fund Brand 50

Best-Performing Fund Brands in Europe and Globally According to the 2024 Broadridge Fund Brand 50 Report

BlackRock maintains top position in Broadridge’s Fund Brand 50 global asset manager rankings, but ESG runs into trouble in Europe

LONDON – 26^th March 2024 – 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 13^th 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

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.

APAC Fund Brand 50

Best-Performing Fund Brands in APAC and Globally According to the 2024 Broadridge Fund Brand 50 Report

Broadridge Fund Brand 50 study reveals fund selectors place a premium on expertise and solidity, favouring large global firms. China, however, bucks the wider regional trend and values the local expertise of domestic firms.

SINGAPORE – 26^th March 2024 – 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 APAC fund selectors placed increasing importance on asset manager expertise in 2023, as a way of offsetting economic and geopolitical uncertainty, downward pressure on fees, and an increasingly onerous regulatory burden.

“A cautious outlook continued throughout the year, and investors prioritised regular payouts in an uncertain climate. The beneficiaries of this were well-trusted providers of fixed-income funds and ETFs with proven track records, as well as larger asset managers with strong jurisdictional brand recognition,” said Evonne Gan, Engagement Manager, APAC Asset Management Advisory at Broadridge. “The lack of movement at the top of the leaderboard belies turbulent underlying market conditions. Global and local managers had to navigate a more challenging fund landscape as APAC fund selectors took a risk-off stance and displayed a strong preference for low-cost products with minimal exposure to market forces.”

The independent study, now in its 13^th 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, the US, and APAC. FB50 also reveals the local market brand leaders in APAC and Europe’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 APAC Asset Management Brands

Key insights

Although there was no change among the top-five brands, led by BlackRock, things were shifting under the surface – even if the pace of change at the upper echelons of the leaderboard is more incremental. While the global giants at the top of the rankings maintain their places, their lead is being eroded – particularly in the case of BlackRock. While still in pole position, the firm has not consolidated its overall position in the Asia-Pacific region – as it only achieves a top-five ranking in four of the seven markets and faces stiff competition from local manager dominance in China.

The cautious outlook of 2022 continued into 2023. In an uncertain climate – both globally and within the APAC region – investors prioritised regular payouts. The beneficiaries of this were well-known and well-trusted providers of fixed-income funds and ETFs with proven track records, as well as larger asset managers with strong jurisdictional brand recognition.

One of the big takeaways from the prior last two FB50 reports was the rise of the global managers in China. This year, however, FB50 paints a very different picture. Chinese markets are shunning global firms just as quickly as they took up with them.

Valued attributes

There is significant change among the top attributes this year, which speaks to a marked shift in investor sentiment and behaviour. ‘Expert in what they do’ takes top spot as the most important criteria in FB50 2024, with ‘Appealing Investment Strategy’ in second, and ‘Solidity’ in third. This is a sharp rise in the value of expertise in the region compared to last year – which in turn marks a continuing trend from the year before. As the market has become more sophisticated and globalised, investors have come to realise that merely relying on metrics such as returns or track records is no longer sufficient to achieve their investment goals. Instead, they are looking for asset managers who can provide expert guidance and advice, and who can navigate the complexities of the modern investment landscape.

Solidity is in third place, up from fifth last year, which partially explains why global managers continued to dominate: buoyed by strong brand rankings, large global AUM, and popular and comprehensive investment ranges. All of the top five have a presence in at least six of the seven markets under Broadridge’s coverage in APAC (Australia, China, Hong Kong, Japan, Singapore, South Korea, and Taiwan).

Additional findings from this year’s study include:

• In 2023, competition for assets in China intensified – with strong demand for low-risk products (fixed income funds and ETFs).
• The two leading Asian managers swapped places, with Mirae Asset Global Investments usurping Nomura’s coveted position within the APAC top-10. The largest asset manager in APAC in terms of AUM remains the top-ranked firm in Japan and maintains a healthy seventh place in Taiwan.
• In many ways, Nomura’s situation is emblematic of large Japanese fund firms who have set their sights on expanding to faster-developing markets overseas. But they remain under-represented on the global stage in terms of assets and brand recognition, especially given the size of Japan’s economy.
• In contrast to Japanese firms, Chinese firms are rising quickly in the 2023 brand rankings. E Fund Management (12), China’s largest fund manager and the third-largest in APAC, climbed from 21st to 12th. It was ranked in the top 10 in APAC for ‘Expert in what they do’ and ‘Innovation/Adaptation to market’.

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:

• Expert in what they do
• Appealing investment strategy
• Solidity
• Keeping best informed
• Client-oriented thinking
• Key international player
• Stability of investment management team
• Innovation/Adaptation to market
• Social Responsibility/Sustainability
• Local knowledge

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.