Performance and Credibility Continue to be
Major Factors for Investors Picking an Asset Manager
HONG
KONG, May 6, 2024 /PRNewswire/ -- Investors
across Asia continue to look to
diversify their investment portfolios amidst an uncertain global
economy, according to FleishmanHillard's The Future of Asset
Management in Asia
2024 report.
The report, published with research by TRUE Global Intelligence
practice, features analysis drawn from an online survey of 1,250
investment professionals in Asia,
with 250 respondents each in, Hong Kong SAR, Japan, Mainland China, Singapore and South
Korea between March 30 and April 10,
2024. The report also includes an overview of the latest
trends in Asia's asset management
industry.
The 2024 report highlights the key risks currently identified by
investors. The majority of investors (42%) are most concerned about
slow global economic growth or even a downturn, followed by
persistent inflation (24%) and geopolitical tensions (16%). In
response to these uncertainties, nearly one-third of respondents
(29%) plan to shift their investments towards lower-risk options,
while 23% intend to maintain their current risk profile. Notably,
investors from mainland China
stand out as 49% see more buying opportunities and are increasing
their risk appetite or actual investments in high-yield
instruments.
While equities funds (51%) and fixed income funds (34%) remain
popular among Asian investors in the coming year, there is a
growing interest in diversifying portfolios. Investors are now
showing enthusiasm for private market investments, particularly in
private equity funds (15%) and private credit funds (15%).
Respondents believe that these alternative investments can enhance
and diversify their returns, complementing traditional stocks and
bonds (90%), and helping mitigate overall portfolio risks
associated with economic downturns (90%).
In terms of investment sectors, AI (49%) continues to be the
most favored sector for the upcoming year, followed by the internet
sector (34%), biotechnology and healthcare (33%) and technology,
media and telecoms (33%). This indicates a strong preference for
new economy sectors that have experienced rapid growth despite
global economic challenges.
Patrick Yu, Asia Pacific lead of FleishmanHillard's
Financial and Professional Services sector, commented on the
findings, stating, "Investors are seeking to diversify their
portfolios to build resilience during this period of global
economic uncertainty. Private equity and private credit funds,
traditionally favored by institutional investors, are now
increasingly attractive to Asian investors. This presents
significant opportunities for asset managers to expand their
product offerings and communications strategies to cater to the
needs of Asian investors."
Similar to last year's report, the performance (93%) and
credibility (92%) of asset managers remain the most critical
factors for investors when choosing an asset manager. Other
important criteria include knowledge of individual managers (87%)
and the public profile of the asset manager (86%). While the
environmental, social and governance (ESG) commitment of asset
managers is still considered important (78%), it has declined
slightly by four percentage points compared to the previous year's
survey.
Furthermore, Asian investors prioritize sophistication in risk
management (86%), transparent fee disclosures (86%) and
transparency in communication with customers (84%) as the most
important qualities for overseas asset managers operating in their
local markets.
Yu emphasized the importance of transparency, profile and
reputation for asset managers, highlighting, "More than ever,
demonstrating transparency and having a strong profile and
reputation are key for asset managers. Credibility and performance
are fundamental to these qualities, and it is crucial for asset
managers to elevate their strategies, product offerings and ESG
commitment to make a difference in the highly competitive
environment in the Asia Pacific
region."
The survey findings also revealed:
- Asia Pacific (54%) remains the
most popular region for investment in the coming year, with
Singaporean investors (69%) displaying the highest confidence in
the region. North America (43%) is
the second preferred region for investment, particularly favored by
Japanese investors (58%).
- Similar to last year, digital platforms (54% of total) are the
most popular channel for fund patronage among Asian investors,
driven by the variety of fund choices (83% of digital platform
users). Independent financial advisers or bank intermediaries
continue to be important channels (43%), alongside wealth managers
(38%), reflecting that a significant number of investors prefer to
receive expert advice through in-person meetings during fund
patronage. In particular, mainland China and Singapore investors show an increased interest
in purchasing funds from independent financial advisers (60% in
2024 compared to 53% in 2023 for Mainland China and 55% in 2024
compared to 45% in 2023 for Singapore).
- According to the report, financial media (45%) remains the most
popular source of information for Asian investors for funds and
investment products. However, this proportion has declined by eight
percentage points from 2023. Face-to-face interactions, including
independent financial advisers or bank intermediaries (30%) and
friends and family (29%), are also ranked as important information
sources. Notably, mainland Chinese investors prefer social media
platforms as their primary source of information (52%) compared to
their counterparts in the region.
- Regarding ESG, the most important commitment from asset
managers, as cited by investors, is "walking the talk" and taking
action in proxy voting in listed companies (82%). Transparency in
ESG data and protocol (79%) and clearly defined ESG goals and
objectives (79%) are also highly valued.
FleishmanHillard's The Future of Asset Management in
Asia 2024 report includes
quantitative data and qualitative analysis on the asset management
industry in Asia. All 1,250
respondents self-identified as having traded or invested in at
least one of the following: equities funds, fixed income funds,
ETFs, alternatives, balanced funds, PE funds, digital assets or
cryptos. A Mainland China focused report, The Future of
Asset Management in China
2024, is also available for asset managers interested
specifically in this growing market.
About FleishmanHillard
FleishmanHillard specializes in public relations, reputation
management, public affairs, brand marketing, digital strategy,
social engagement and content strategy. FleishmanHillard was named
2021, 2022 and 2023 Campaign Global PR Agency of the Year; 2023
ICCO Large Agency of the Year – The Americas; 2022 and 2023 PRWeek
U.S. Agency of the Year; 2022 and 2023 PRWeek U.S. Outstanding
Extra-Large Agency of the Year; 2023 Campaign US PR Agency of the
Year; 2021 PRovoke APAC Consultancy of the Year; and 2021
PRWeek UK Large Consultancy of the Year. FleishmanHillard is part
of Omnicom PR Group and has nearly 80 offices in more than 30
countries, plus affiliates in 45 countries.
About Omnicom Public Relations Group
Omnicom PR Group (OPRG) is the largest global network of
communications and consulting agencies in the world. It is home to
three of the top global PR agencies - FleishmanHillard, Ketchum,
Porter Novelli and more than a dozen specialist agencies in
corporate and public affairs, political consulting and advertising,
language strategy, global health strategy and organizational
transformation. OPRG is part of Omnicom Group Inc. (NYSE: OMC).
www.TeamOPRG.com.
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SOURCE FleishmanHillard