Vanguard has edged past BlackRock to secure the top position in Broadridge Financial Solutions’ 2024 Fund Brand 50 (FB50) rankings for the United States. Vanguard also has emerged as the biggest riser among the FB50 rankings in Europe, where it now is a top-10 fund brand.
The study, now in its 13th year, provides an authoritative analysis of the performance of asset management brands in the eyes of US fund selectors. Conducted by Broadridge, the FB50 report is based on a survey involving more than 1,200 key fund selectors and gatekeepers across the United States, Europe, and the Asia-Pacific region.
These participants, responsible for the crucial decisions on fund inclusion in distributor lists, were asked to evaluate their top-three asset management brands across a spectrum of ten attributes, including the solidity of the firm, client-oriented approaches, and the appeal of investment strategies.
Vanguard’s ascent to the pinnacle of the US rankings is a testament to its comprehensive performance across these categories, notably outperforming in the top three attributes deemed most critical by selectors. The report detailed how Vanguard and BlackRock closely contended across the entire range of brand attributes. However, Vanguard’s cumulative score across these categories propelled it to the leading position, demonstrating the tight competition at the industry’s summit.
Natixis IM highest-ranked non-US brand
Domestic groups continue to dominate the U.S. and significantly strengthened their domestic dominance. French firm Natixis IM remains the highest-ranked non-US brand but fell from 22nd place to 32nd.
Broadridge’s European fund brand rankings made clear that BlackRock, JPMorgan, Fidelity, Pictet, and Amundi remain the top five investment fund brands in Europe. BlackRock and Robeco are the favourites among Dutch fund selectors and gatekeepers, despite the burgeoning interest in passive investment options.
Vanguard moves into European top-10
“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, Broadridge’s director of global distribution insights, in a statement.
“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.”
Criteria such as local insight, expertise, and investment strategies contribute to the compilation of an annual list identifying asset managers favoured by fund selectors.
Growing scepticism towards ESG
European investors displayed increased caution and scrutiny towards the asset management sector in 2023, with a preference for savings accounts or money market funds. “Asset managers are under closer scrutiny than ever before,” Broadridge said.
In the Netherlands, BlackRock and Robeco continue to lead the pack this year, with JPMorgan, iShares, and Pimco completing the top five. Notably, Kempen and Goldman Sachs have fallen in the rankings, whereas VanEck and Pictet saw increased interest last year.
Asset managers with a focus on sustainability seem to have lost some of their appeal, Broadridge found.
2023 proved challenging for ESG in Europe, marred by transparency issues, underperformance, and regulatory scrutiny. “Investment funds faced withdrawals, greenwashing allegations, and the reclassification of Article 9 funds, leading some to speculate on the zenith of ESG,” Broadridge reports.
Sustainability credentials less appreciated
Yet, according to discussions with gatekeepers and fund selectors, the apprehensions surrounding ESG might be exaggerated. “While ESG remains a significant factor in fund selection, there’s growing scepticism about asset managers’ sustainability claims.” There’s a call for more clarity and enhanced communication regarding engagement and portfolio decisions.
Interest in asset managers renowned for ESG, such as Robeco, Nordea, and Pictet, declined significantly in Europe by 2023, diminishing their sustainability credentials’ impact on selections. Still, half of the top 10 asset managers on Broadridge’s list are highly regarded for their ESG initiatives, with Amundi notably acclaimed for its broad spectrum of sustainable investment options, including several climate-neutral ETFs.
The offering of private market investments is increasingly marking asset managers’ distinctiveness. Schroders, for example, enhanced its standing in the private market, mitigating concerns over high fees.
With improved conditions in the fixed income market, there’s a trend towards selecting firms specialising in this area, such as Pimco.
As the global economic growth decelerates, Broadridge highlights the need for asset managers to focus on their strengths and adaptability to remain competitive in a crowded market. “Providing alternative investment options is crucial for appeasing clients who are moving their investments away from mutual funds.”
Top 10 Fund Brands in Europe
Top 10 Fund Brands in the United States
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