Credibility, Performance and Service Fees are Key Criteria for Choosing Asset Managers, According to FleishmanHillard’s First Pan-Asia Future of Asset Management Report

Preference for Foreign Asset Managers in Terms of Performance, Track Record and Trustworthiness

HONG KONG, June 14, 2022 – The vast majority of Asian investors see credibility (96%), performance (96%) and service fees (90%) as the key criteria for choosing an asset manager, according to FleishmanHillard’s The Future of Asset Management in Asia 2022.

The report, which for the first time now covers four markets across Asia (mainland China, Hong Kong SAR, Singapore and South Korea) and follows three years of the well-received Future of Asset Management in China report, offers insights for global asset managers assessing opportunities in Asia. Published in collaboration with the agency’s TRUE Global Intelligence practice, the report features analysis drawn from an online survey of Asian investors’ attitudes and behaviors, plus an overview of the latest industry trends.

The survey shows that overseas asset managers are preferred for their performance (53%), track record (45%) and trustworthiness (43%) by investors over local players. Asian investors value asset managers that are transparent in customer communication (92%) and fee disclosure (89%) and that offer sophisticated risk management capabilities (90%) and strong ESG products (78%).

“Despite continuous market volatility in 2021 and the first quarter of 2022, Asia continues to be an epicenter of growth for international asset managers, with China presenting opportunities for expansion amid an upsurge in the number of affluent investors in the region,” said Patrick Yu, Asia Pacific lead of FleishmanHillard’s Financial and Professional Services sector. “Credibility and performance continue to be key for investors in Asia choosing asset managers. Overseas managers need to think through how they can accommodate investors’ appetites by delivering uncorrelated alpha with well-timed, top-notch investment solutions drawing upon a variety of global expertise and experiences.”

The survey also found:

  • Asian investors show a strong preference for investing in the region they know the best: Asia Pacific. The exception here is South Korean investors, who are most keen to invest in North America (58%) and are almost as likely to target Europe (37%) as Asia Pacific (39%).
  • With the Ukraine-Russia conflict increasing global volatility, most investors are moving investments into lower risk options, although Singaporean investors are just as likely to maintain their current asset allocations as they are to reduce risk.
  • Despite the fall in stock markets, particularly in growth segments, investors in the region still have their sights on investing in innovation sectors this year, with 53% of investors across the region saying they will invest in the internet and technology sector.
  • With a number of new investment themes breaking onto the scene in the last year, such as non-fungible tokens (NFTs) and the metaverse, the report shows a clear appetite among investors in the surveyed markets for products investing in these themes. Cryptocurrency-related products topped investors’ wish-lists, with 45% showing interest despite weaker performance in the six months prior to the survey.
  • A total of 41% also expressed interest in metaverse-themed products, and 33% said they are considering investing in an NFT or digital collectible, which is largely driven by investors in the Hong Kong SAR, 43% of whom expressed interest.
  • More than half (59%) of investors use online methods for fund patronage, followed by independent financial advisers (46%) and wealth managers (43%).

FleishmanHillard’s The Future of Asset Management in Asia 2022 report includes qualitative and quantitative data. FleishmanHillard TRUE Global Intelligence fielded an online survey of 418 investment professionals in mainland China, the Hong Kong SAR, Singapore and South Korea between April 27 and May 5, 2022. All respondents to the survey self-identified as working in investment, finance or banking, and had traded or invested in at least one of the following: equities funds (77%), fixed income (57%), ETF (48%), alternatives (15%), balanced funds (30%) or PE funds (11%).

The Future of Asset Management in Asia Report :