September 20, 2022 | Stamford, CT — A preference for size and reliable service is playing to the strengths of the world’s biggest asset managers, like Allianz Global Investors, which earned the title of 2022 Overall Quality Leader in Overall Intermediary Distribution in both Asia and Europe.
In a period characterized by significant outflows, the larger asset managers stand out from other fund providers on third-party distribution platforms due not only to their size, but also to client service capabilities that have helped investors make informed decisions in this period of epic volatility.
Fund distributors rank “market-view” seminars from fund providers as second in importance only to effective product information in terms of the sales support they receive from managers on their platforms. Allianz Global Investors and other leading managers are committed to providing this type of high-quality service, which helps distributors support clients, and helps investors on the platform produce better outcomes. These large fund providers also have the resources to deploy sophisticated digital capabilities that allow them to deliver information to clients in the timeliest of manners—a critical advantage in uncertain markets.
Asia: Managers Target HNW
For the past several years, asset managers competing in Asia have focused their growth strategies on distribution platforms like private banks and wealth management that cater to high net worth investors. With investors in “risk-off” mode, assets on HNW platforms have proved much stickier than assets on retail banking and insurance platforms.
“HNW investors in Asia are more likely to take a long-term perspective and ride out volatility, or even to view it as a buying opportunity,” says Parijat Banerjee, Senior Relationship Manager at Coalition Greenwich.
Europe: A Bearish Mix
The war in Ukraine, a still-unfolding energy crisis, troubling inflation, fears of recession, a market selloff, supply-chain disruptions, and continued effects from COVID-19 have combined for a bearish mix of conditions for investors in Europe.
The result has been outflows on fund distribution platforms, with fixed-income getting hit particularly hard. Looking ahead, fund distributors expect that weakness to continue in core fixed-income strategies. On a more positive note, fund distributors do expect to see healthy inflows resume into most equity strategies, and to continue for the full range of alternative asset classes.
“Across all asset classes, European fund distributors are putting an emphasis on scale and managers with a proven track record—not just in terms of absolute performance, but in terms of having a history of weathering crises, supporting clients, and maintaining stability in the investment teams that run their funds,” says Sophie Emler, Senior Relationship Manager at Coalition Greenwich.
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