Hello. Thank you for joining us today for this webinar session. My name is Aidan Paterson, and I'll be your host for today's discussion. In this webinar, we're going to be speaking about brand, examining what is behind a successful brand, what attributes matter most to fund selectors, and how these preferences are shaping the asset management industry. The reason that we're speaking about this today is that Broadridge have just published the latest edition of the Fund Brand 50 Report, a study that profiles and ranks the top 50 asset management brands across Europe, North America, and Asia, as well as the top brands globally. Here's how the rankings work: we conduct extensive interviews with over 1,200 top third-party fund selectors and aggregate their responses to power our Fund Buyer Focus Intelligence Solution, which is used to generate the report.
We take these responses to rank asset managers across 10 attributes and aggregate these into what we term a total brand score, which we use for the overall global and regional rankings. Here's an example of what that looks like. This is from last year's report, covering 2022 data and showing BlackRock's performance in Europe. It's a good example because you can see the firm's consistency: it ranks number one or two for all brand attributes, except for social responsibility and sustainability. So what are these brand attributes? You can see them here. They vary slightly between the three regions, but broadly cover the same ground. These are the attributes that we used in APAC, ranked in order of preference.
This changes from year to year, so this is the ranking of attributes preferred by fund selectors for the year 2023. So what global trends did we see this year? Well, the first thing that we learned is that the number of truly global managers is shrinking. Our usual top 25 is a top 23 this year, as not enough firms met our criteria to be considered a truly global brand. It's worth pointing out that our criteria aren't that stringent. We have a relatively low hurdle of being a top 100 brand in each region surveyed to qualify as a global brand. Now, this is the second year in a row that the pool of global managers has shrunk, possibly indicating the beginning of a trend.
But one thing we are seeing is, for those managers that can build and sustain a global presence, the incumbents at the top of the leaderboard are proving increasingly difficult to dislodge. So what does help a manager climb the rankings? Well, this year, investor appetite for passive products was a big differentiator. While ESG played a role, it was less impactful than in previous years. Overall, one of the main things we saw was fund selectors expressed a preference for stability, likely due to the turbulent market conditions experienced in the last few years. This led to a consolidation of strength for the large global managers at the top of the leaderboard, although there were interesting regional narratives playing out behind this.
To get a more detailed analysis of these regional trends, we'll be going to our experts in Europe, APAC, and the U.S. to get their take on the brand trends driving FP50 2024. First off, we go to Barbara Wall for a deep dive into European trends. Over to you, Barbara.
Thanks, Eden. While 2023 proved to be a disappointment for the European long-term funds industry, net losses of EUR 46 billion were only around a fifth of the EUR 213 billion withdrawn in 2022, which provides some perspective in a year marked by heightened geopolitical tensions and macroeconomic uncertainty. However, there is no doubt that 2023 was particularly tough for active managers, while passive competitors continued to gain momentum, with ETFs inflows being powerful drivers. This is reflected in the top 10 brand ranking and also further down the league table. While the top 5 brand ranking remains unaltered from the previous year, with J.P. Morgan continuing to snap at the heels of BlackRock and increasing its total brand score by a significant margin, passive powerhouse Vanguard shimmys up four places to enter the top 10.
In terms of brand credentials, Vanguard scores highly as a key international player and for its solidity. Vanguard has taken its time to build a brand in Europe and has been circumspect in terms of fund launch activity, preferring the less-is-more approach. The US manager has significantly fewer ETFs on offer compared to its rivals. Passive peer iShares also moves up the ranking from eighth to sixth place, unseating Robeco in the process. iShares' top brand attributes are key international player, appealing investment strategy, and, again, solidity. iShares has a very wide product range, and as one selector points out, there is no way of avoiding this all-encompassing ETF provider. Following the ESG backlash last year, ESG convictions may not be the game-changer they once were. However, it is noteworthy that 50% of our top 10 brands score highly in this area.
Despite dropping in the ranking, Robeco remains in pole position for its ESG credentials. Another notable ESG brand, Nordea, fell out of the top 10 ranking in 2023. However, the group is building its presence in the alternative space, which could help it recover support this year. After struggling to capitalize on the surging investor interest in the fixed income investment category, following three rungs to 12th place in 2022, PIMCO regained its mojo in 2023, slotting back into the top flight. After rallying towards the end of last year, fixed income is on everyone's radar. The focus on fixed income could have some impact on the brand movers and shakers in 2024. While the top 10 balance tipped in favor of local groups in 2022, in 2023 we see some movement in the opposite direction, with US brands accounting for six of the top 10 brand slots.
Moving out of the top 10, the passive trend is further evidenced by the entry of Xtrackers into the top 50. According to selectors, the group's top brand attributes include key international player, again, and innovation, adaptation to market change. At this point, I'd like to shine the spotlight on active managers. PIMCO wasn't the only active strategist to see an uptick in its brand ranking, with boutique outfits such as Artemis also rising in the brand league table. We single out Carnegie Fonder for a special mention. It isn't the fastest riser in 2023, but after its acquisition by the Carnegie Group, it has piqued the interest of selectors on a number of levels. Some acquisitions can be brand disruptive, but here is an example of a firm that has been able to capitalize on a marriage.
Following the acquisition by the Carnegie Group in 2022, Carnegie Fonder has been able to offer a wider product range, including private markets coverage. This has been valued by fund selectors, many of whom are looking to increase their exposure in this segment. Carnegie Fonder also has a strong fund or brand presence in the Nordics and is valued for its expertise in Swedish equities. These days, it's handy to have more than one USP. With slowing growth weighing on the global economic outlook in 2024, product providers will need to plate in strengths and flex their brand attributes to navigate toward its fast-becoming and oversupplied and fiercely challenging European funds market. Thank you for listening.
Thank you, Barbara. A lot of food for thought in European trends this year. One thing that really stood out to me was a cautious investor outlook, as we saw a number of firms benefit from an appetite for passive products and guaranteed returns. Next, we go to Evonne Gan for her commentary on asset management brand trends in APAC. Evonne, over to you.
Thanks, Eden. Fund flow trends in APAC for 2023 can be summarized in three words: stability, income, and passive. After a difficult 2022, asset managers in APAC faced another challenging year in 2023. So apart from the continuing regional economic and geopolitical uncertainties, asset managers are also dealing with a cautious investor sentiment in the region. As such, managers with larger AUM and stronger brand recognition benefited from this shift in appetite. Against this backdrop, for the second year in a row, there was no change in the top 5 FP50 rankings in APAC. Fund managers often attributed the global managers' strong brand rankings to drivers such as having more established track records, being expert in what they do, offering investment strategies that were popular with clients, and having a wider range of comprehensive solutions.
Zooming into China, J.P. Morgan was the only global manager ranked among the top 10 fund houses. The firm has been active in product development, offering innovative ETFs such as foreign-invested ETF, active ETF, and thematic ETFs. J.P. Morgan has also intensified their localization efforts and increasingly taken a leaf from local managers' playbooks when it comes to online and offline marketing campaigns. Elsewhere, global managers continue to lead. BlackRock was the top-ranked firm in Singapore, and J.P. Morgan took the first place in Hong Kong, while Fidelity was also second-ranked in Japan. Meanwhile, Allianz Global Investors continued to rank highly in Taiwan, and AllianceBernstein was also in the top three in both Taiwan and Hong Kong. While AllianceBernstein's ranking remained largely unchanged this year, its underlying brand preference has actually improved.
The firm has an excellent track record of dividend payment, which fulfills persistent demand for stability and income in many APAC markets. The firm has also created many highly informative videos during the pandemic, and this has helped to solidify brand loyalty.
Thank you, Evonne. Very interesting analysis. One point that stood out to me was global managers taking cue from local managers in the Chinese market, and they'd be wise to do so. One of the big stories of FP50 in the last few years has been the rise of global managers in China. But this year, we're seeing Chinese fund selectors turn their back on global firms just as quickly as they took up with them, as several global managers take a heavy fall down the rankings in China. Finally, we go to Jeff Tjornehoj for his analysis of the US asset management industry. Over to you, Jeff.
Thank you, Aidan, and welcome, everyone, to the fourth edition of Fund Brand 50 US, the preeminent source for fund branding insights for US fund managers. In a sharp turn away from the depressing returns that swamped nearly all assets in 2022, 2023 brought a windfall. Domestic stocks hit the gas pedal and crossed the finish line up 24%. International equities gained over 19%, and a well-timed fourth-quarter rally saved bonds from an unprecedented third consecutive year of losses as they returned just under 2%. The contrast between resilient equities and fragile bonds was an opportunity for asset managers to support their clients with topical and timely communications about shifting market conditions. Top brands always score well for keeping their clients informed, and helping clients through both setbacks and successes is a hallmark of their efforts.
Fund flows are dominated by the countless decisions made by intermediaries on behalf of individual clients to buy or sell a fund. To help intermediaries be successful at their craft, the funds industry has been busy churning out new products to meet demand in the form of model portfolios, interval funds, separately managed accounts, actively managed ETFs, and more. Overall, a strong brand is an asset in product development that provides many benefits and contributes to the success and longevity of the business. By investing in and nurturing their brand, companies can create a competitive advantage that sets them apart in the marketplace and drives sustainable growth. Our top three brands are known to do these things well, and not surprisingly, they've been the top three brands for four years running. This year, we've had a shakeup at the very top as Vanguard emerged victorious and nudged out BlackRock.
That's not our only come-from-behind story. Goldman Sachs jumped three positions from 10th to 7th, and First Trust made massive strides with fund selectors and gatekeepers as they moved up from 14th to 10th place. Of course, when some firms move up, it follows that some have to move down. While I don't want to give too much away, I will say that somewhere out there, a bighorn sheep has lost some footing on the mountain. Aidan, I'll send it back to you.
Thank you, Jeff. A very interesting point there about brand as a driver of product development. I think we're seeing this as the big firms find new ways to strengthen their position on top of the leaderboard, and one of the key strengths they can offer is a wide range of products that encompasses innovative new offerings. So that wraps up our regional coverage. I'd like to thank all three of our experts for their contributions. 2023 was an interesting year for asset management brand trends, and I think it's safe to say that we'll be seeing many of these trends continue into 2024. FP50 is available now. You can place an order and access to a report both on our Distribution Insight platform. If you're not already signed up, it's free to register, and we post a selection of free content, including articles, white papers, podcasts, and videos.
You can also access Fund Buyer Focus Intelligence via the Distribution Insight platform to track fund selector rankings and see how you're faring on an ongoing basis. If you're not an FBFI client and would like to schedule a demo or ask a question about FBFI, get in touch via the contact details at the end of this webinar. That's all from us. Thank you for joining us today, and we hope you enjoyed the session.