The Cerulli Report European Fund Selector 2015 Securing a Place on the Buy List NEW Interactive Data Supplement Overview & Methodology This annual report examines the fund selection process across the major European markets: France, Germany, Italy, Spain, Switzerland, and the United Kingdom. The report maps out points of access for key influencers in the selection chain. Data in this report comes from two proprietary surveys of more than 100 European fund selectors and 35 cross-border asset managers, and interviews with more than 80 fund selectors. Benefits - Analyze fund buyers selection and de-selection criteria - Examine key relationships in the selection process - Highlight where selectors want to see developments in product innovation Questions Answered - What are the most important criteria for fund selection? - How many funds and managers are on fund selectors shelves in each country? - Which fund sectors have the most competitive products, according to fund selectors? - Who are the key influencers in securing selection? - Which channels are European asset managers focusing on? NEW Interactive Data Supplement Experience Cerulli s digital platform and interact with analyses from this report today With this report subscription, we re pleased to include these interactive charts: LOOK INSIDE THIS REPORT 182 Pages, 135 Exhibits Subscription Information $17,000 Annual - Hardcopy - Digital copy in color - Unlimited online firm-wide access - Exhibits in Excel - Key findings - Online access to 2 related reports - Analyst support - NEW Interactive Data Supplement Research Included A subscription to this report remains active until the next iteration of this report releases and includes online access to the following related Cerulli research: Two years of The Cerulli Report: European Fund Selector To Purchase CALL +1 617-437-0084 EMAIL info@cerulli.com VISIT www.cerulli.com 1. Fund Selection and De-Selection Criteria: Review fund selectors and asset managers views on fund selection, including fees, fund performance, and investment philosophy, in side-by-side comparison. 2. European Fund Selectors Buy Lists: Evaluate the number of funds and managers on European fund selectors buy list by type and country. 3. European Product Trends: Explore European product trends and challenges by product type, country, and asset class.
New Cerulli interactive Data SupplemeNt Interact with select Cerulli Report analyses today What are Interactive Data Supplements? We are pleased to offer an interactive experience with select data contained in 2015 Cerulli Reports. This Interactive Data Supplement (IDS), allows you to interact with select exhibits in unique ways: NEW Interactive Data Supplement Access consolidated data from multiple report exhibits in a single comparative view Home in on specific data elements Build custom charts that are easily exported for presentations and other materials Apply customizable filters to Cerulli Report analyses including assets under management, net new flows, product type, channel, year, marketplace, and currency $120,000M $100,000M $80,000M EXPLORE FIRM: Select Firm YEAR: 2010-2Q 2013 PROGRAM TYPE: Customize elements including currency, year, channel, etc. $60,000M $40,000M $20,000M $0M 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 $140,000M $120,000M $100,000M $80,000M $60,000M $40,000M $20,000M 10% 5% 0% -5% (All) Mutual Fund Advisory Separate Accounts Rep as Portfolio Manager PROGRAM NAME: (All) Manager Select Model Wealth Portfolio Optimum Market Portfolio Personal Wealth Portfolio SAM (non-securities) SAM (securities) UVEST - CAA UVEST - NATCO UVEST - Vista Mgr Direct UVEST - Vista Wrap Rep as Portfolio Manager Separate Accounts Mutual Fund Advisory Assets Growth Rate View granular data Export exhibits the way you want them to look in Excel, PDF, or as an image $0M 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Source: Cerulli Associates Remember my changes How to Access IDS This new service is complimentary and is accessible via Cerulli Client Login. Simply access your firm s online Cerulli research with your unique login credentials and you will find the View Interactive Data Supplement link to this platform in My Reports. VIEW INTERACTIVE CHART You can also jump to the related IDS chart in the report by clicking on the View Interactive Chart button throughout the PDF. To obtain online access: Visit www.cerulli.com, or contact our account management team: +1 617-437-0084 info@cerulli.com
France Chapter 4 exhibit 4.03 Number of Funds on a French Fund Selector s Buy list, 2014 2015 Source: Cerulli Associates Analyst Note: French fund selectors were asked to identify the number of funds on their buy list. VIEW INTERACTIVE CHART 40% 33% 30% 20% 18% 18% 17% 17% 18% 13% 10% 9% 9% 9% 9% 9% 8% 4% 4% 4% 0% <10 10 20 20 40 40 80 80 120 120 150 150 200 200 250 250 300 >300 2014 2015 A total of 33% of fund selectors surveyed by Cerulli reported a buy list of 200 250 funds. Boutique firms, however, generally have smaller lists of between 40 and 80 funds. The size of the buy list usually reflects the firm s style; bigger buy lists allow a tailored approach to the client, while smaller ones usually comprise more exclusive products. Key Implication: Asset managers increasingly focus on well-known funds and prefer to work with fewer products, which gives them more control of their buy list and the ability to conduct a thorough in-house due diligence of selected funds. the Cerulli Report European Fund Selector 2015 63 C A
Expanded table of Contents table of CoNteNtS - Expanded Key Questions Answered...13 1. How much space is there on a fund selector s shelf?...13 2. What is the divergence between fund selectors top selection criteria and the importance attached to those criteria by asset managers?...14 3. What are the most important factors that hamper a seller s progress with a buyer?...15 4. What can managers do to encourage inflows in the short to medium term?...16 5. What sectors hold opportunities for managers pitching to German selectors?...17 6. Are managers welcome to make unsolicited calls on fund buyers in Italy?...18 Chapter 1: Players...19 Exhibit 1.01. Largest 20 Managers by Mutual Fund and Fund-of-Funds Assets Under Management in Europe, 2014...20 Exhibit 1.02. Global Private Banks Ranked by Assets Under Management, 2012 2013...21 Exhibit 1.03. Number of Advisors in Financial Advisor Firms in the United Kingdom, 2009 2014...22 Exhibit 1.04. Percentage of Assets Under Discretionary Management, 2015...23 Exhibit 1.05. Top 20 European Pension Funds by Investable Assets Under Management, 2013 2014...24 Exhibit 1.06. Largest 20 UK Long-term Insurance Companies by Gross Written Premiums, 2012 2013...25 Exhibit 1.07. Importance of Key Attributes for Winning Mandates Direct from European Insurance Companies, 2014...26 Exhibit 1.08. Importance Placed by European Pensions on Fund Attributes in Terms of Alternative Fund Selection Criteria, 2014..27 Exhibit 1.09. Asset Managers Views on Profit Margins Over the Next 12 24 Months by Institution Type, 2015...30 Chapter 2: Process...32 Exhibit 2.01. European Fund Selectors Listed by Difficulty of Getting On or Staying On the Buying List, 2015...34 Exhibit 2.02. Factors That Play a Pivotal Role in the Selection of a Fund, 2015...35 Exhibit 2.03. Most Influential Factors in Removing a Fund from a Buy List, 2015...36 Exhibit 2.04. Number of Funds on a European Fund Selector s Buy List by Channel, 2015...37 Exhibit 2.05. Number of Managers on a European Fund Selector s Buy List by Channel, 2015...39 Exhibit 2.06. Roles With the Biggest Impact During the Fund Selection Process, 2014 2015...40 Exhibit 2.07. Asset Managers Greatest Challenges in Fund Promotion, 2014 2015...41 Exhibit 2.08. Previous Experience of Product Specialist Staff, 2014 2015...42 Chapter 3: Products...45 Exhibit 3.01. Asset Classes That Are Going to Attract the Most Inflows in the Next 12 and 36 Months, 2015...46 Exhibit 3.02. Fund Sectors in Which Private Banks Are Going to Increase Clients Exposure In the Next 12 24 Months, 2014...48 Exhibit 3.03. Asset Managers Expectations of Smart Beta Product Sales to European Institutions Over the Next 12 24 Months, 2015...49 Exhibit 3.04. European Multi-Asset Mutual Fund Net New Flows and Fund Launches, 2007 2014...51 Exhibit 3.05. European Institutional Investors Expected Changes in Investment in Alternatives Over the Next 12 to 24 Months and Three to Five Years, 2014...52 the Cerulli Report European Fund Selector 2015 7 C A
table of Contents Expanded Exhibit 3.06. Marketshare of Sustainable and Responsible Investment Retail Funds for Selected Countries, June 2014...53 Exhibit 3.07. Passively Managed Assets as a Percentage of Total Portfolio Size, 2015...55 Exhibit 3.08. Popular Fund Sectors Among Passively Managed Funds, 2015...56 Exhibit 3.09. European Equity Funds with Low Active Share, November 2014...57 Chapter 4: France...59 Exhibit 4.01. French Mutual Funds Assets Under Management and Net New Flows, 2010 2014...61 Exhibit 4.02. Global Selection Teams vs. Independent Selection Teams, France, 2014 2015...62 Exhibit 4.03. Number of Funds on a French Fund Selector s Buy List, 2014 2015...63 Exhibit 4.04. Number of Managers on a French Fund Selector s Buy List, 2015...64 Exhibit 4.05. Buy List Turnover in France, 2015...65 Exhibit 4.06. Preferred Partnerships in France, 2014 2015...66 Exhibit 4.07. Outsourced Fund Selection Process in France, 2015...67 Exhibit 4.08. Databases Used by French Selectors, 2014 2015...68 Exhibit 4.09. Top 5 Most Used Fund Ratings in France, 2015...69 Exhibit 4.10. French Fund Selectors Selection Criteria, 2014 2015...70 Exhibit 4.11. French Fund Selectors De-Selection Criteria, 2014 2015...71 Exhibit 4.12. French Fund Sectors With No Unique Products, 2015...72 Exhibit 4.13. French Fund Selectors Views on the Most Useful Events, 2015...73 Exhibit 4.14. Frequency of Unsolicited Manager Meetings in France, 2014 2015...74 Exhibit 4.15. Fund Manager Turnover by Domicile, 2003 2014...75 Chapter 5: Germany...76 Exhibit 5.01. German Mutual Funds Assets Under Management and Net New Flows, 2010 2014...78 Exhibit 5.02. Global Selection Teams vs. Independent Selection Teams, Germany, 2014 2015...79 Exhibit 5.03. Number of Funds on a German Fund Selector s Buy List, 2015...80 Exhibit 5.04. German Buy List Turnover, 2015...81 Exhibit 5.05. Preferred Partnerships in Germany, 2014 2015...82 Exhibit 5.06. Databases Used by German Fund Selectors, 2014 2015...83 Exhibit 5.07. Top 5 Most Used Fund Ratings in Germany, 2015...84 Exhibit 5.08. German Fund Selectors Selection Criteria, 2014 2015...85 Exhibit 5.09. German Fund Selectors De-Selection Criteria, 2014 2015...86 Exhibit 5.10. German Fund Sectors With No Unique Products, 2015...87 Exhibit 5.11. Prominent Brand Names in Germany, 2015...88 Exhibit 5.12. Most Useful Events for German Fund Selectors, 2015...89 Exhibit 5.13. Frequency of Unsolicited Manager Meetings in Germany, 2015...90 Exhibit 5.14. Fund Manager Turnover by Domicile, 2003 2014...91 Chapter 6: Italy...92 Exhibit 6.01. Italian Mutual Funds Assets Under Management and Net New Flows, 2010 2014...95 Exhibit 6.02. Global Selection Teams vs. Independent Selection Teams, Italy, 2014 2015...96 Exhibit 6.03. Number of Managers on an Italian Fund Selector s Buy List, 2014 2015...97 C A 8 the Cerulli Report European Fund Selector 2015
Expanded table of Contents Exhibit 6.04. Number of Funds on an Italian Fund Selector s Buy List, 2014 2015...98 Exhibit 6.05. Buy List Turnover in Italy, 2015...99 Exhibit 6.06. Preferred Partnerships in Italy, 2014 2015...100 Exhibit 6.07. Outsourced Fund Selection Process in Italy, 2015...101 Exhibit 6.08. Databases Used by Italian Fund Selectors, 2014 2015...102 Exhibit 6.09. Top 5 Most Used Fund Ratings in Italy, 2015...103 Exhibit 6.10. Italian Fund Selectors Selection Criteria, 2014 2015...104 Exhibit 6.11. Italian Fund Selectors De-Selection Criteria, 2014 2015...105 Exhibit 6.12. Italian Fund Sectors With No Unique Products, 2015...106 Exhibit 6.13. Most Useful Events for Italian Fund Selectors, 2015...107 Exhibit 6.14. Frequency of Unsolicited Manager Meetings in Italy, 2015...108 Exhibit 6.15. Fund Manager Turnover by Domicile, 2003 2014...109 Chapter 7: Spain...110 Exhibit 7.01. Spanish Mutual Fund Assets Under Management and Net New Flows, 2010 2014...112 Exhibit 7.02. Global Selection Teams vs. Independent Selection Teams in Spain, 2014 2015...113 Exhibit 7.03. Number of Managers on a Spanish Fund Selector s Buy List, 2014 2015...114 Exhibit 7.04. Number of Funds on a Spanish Fund Selector s Buy List, 2014 2015...115 Exhibit 7.05. Buy List Turnover in Spain, 2015...116 Exhibit 7.06. Preferred Partnerships in Spain, 2014-2015...117 Exhibit 7.07. Outsourced Fund Selection Process in Spain, 2015...118 Exhibit 7.08. Databases Used by Spanish Fund Selectors, 2014 2015...119 Exhibit 7.09. Top 5 Most Used Fund Ratings in Spain, 2015...120 Exhibit 7.10. Spanish Fund Selectors Selection Criteria, 2014 2015...121 Exhibit 7.11. Spanish Fund Selectors De-Selection Criteria, 2014 2015...122 Exhibit 7.12. Spanish Fund Sectors With No Unique Products, 2015...123 Exhibit 7.13. Most Useful Events for Spanish Fund Selectors, 2015...124 Exhibit 7.14. Frequency of Unsolicited Manager Meetings in Spain, 2014 2015...125 Exhibit 7.15. Fund Manager Turnover by Domicile, 2003 2014...126 Chapter 8: Switzerland...127 Exhibit 8.01. Swiss Mutual Funds Assets Under Management and Net New Flows, 2010 2014...129 Exhibit 8.02. Global Selection Teams vs. Independent Selection Teams in Switzerland, 2014 2015...130 Exhibit 8.03. Number of Funds on a Swiss Fund Selector s Buy List, 2015...131 Exhibit 8.04. Buy List Turnover in Switzerland, 2015...132 Exhibit 8.05. Preferred Partnerships in Switzerland, 2015...133 Exhibit 8.06. Outsourced Fund Selection Process in Switzerland, 2015...134 Exhibit 8.07. Databases Used by Swiss Fund Selectors, 2014 2015...135 Exhibit 8.08. Top 5 Most Used Fund Ratings in Switzerland, 2015...136 Exhibit 8.09. Swiss Fund Selectors Selection Criteria, 2014 2015...137 Exhibit 8.10. Swiss Fund Selectors De-Selection Criteria, 2014...138 Exhibit 8.11. Swiss Fund Sectors With No Unique Products, 2015...139 Exhibit 8.12. Most Useful Events for Swiss Fund Selectors, 2015...140 the Cerulli Report European Fund Selector 2015 9 C A
table of Contents Expanded Exhibit 8.13. Frequency of Unsolicited Manager Meetings in Switzerland, 2015...141 Exhibit 8.14. Fund Manager Turnover by Domicile, 2003 2014...142 Chapter 9: United Kingdom...143 Exhibit 9.01. UK Mutual Fund Assets Under Management and Net New Flows, 2010 2014...145 Exhibit 9.02. Global Selection Teams vs. Independent Selection Teams in the United Kingdom, 2014 2015...146 Exhibit 9.03. Number of Managers on a UK Fund Selector s Buy List, 2014 2015...147 Exhibit 9.04. Number of Funds on a UK Fund Selector s Buy List, 2014 2015...148 Exhibit 9.05. Buy List Turnover in the United Kingdom, 2015...149 Exhibit 9.06. Preferred Partnerships in the United Kingdom, 2014 2015...150 Exhibit 9.07. Outsourced Fund Selection Process in the United Kingdom, 2015...151 Exhibit 9.08. Databases Used by UK Fund Selectors, 2014 2015...152 Exhibit 9.09. Top 5 Most Used Fund Ratings in the United Kingdom, 2015...153 Exhibit 9.10. UK Fund Selectors Selection Criteria, 2014 2015...154 Exhibit 9.11. UK Fund Selectors De-Selection Criteria, 2014 2015...155 Exhibit 9.12. UK Fund Sectors With No Unique Products, 2015...156 Exhibit 9.13. Prominent Brand Names in the United Kingdom, 2015...157 Exhibit 9.14. Most Useful Events in the United Kingdom, 2015...158 Exhibit 9.15. Frequency of Unsolicited Manager Meetings in the United Kingdom, 2015...159 Exhibit 9.16. Fund Manager Turnover by Domicile, 2003 2014...160 Appendix...161 Exhibit A.01. Largest 20 Fund-of-Funds Managers by Assets Under Management in Europe, 2012 2014...161 Exhibit A.02. Relationship Between Asset Managers and Private Banks, 2014...162 Exhibit A.03. Business-to-Business and Direct-to-Consumer Platform Assets in Selected Markets, 2014...163 Exhibit A.04. European Fund Selectors De-Selection Criteria, 2014 2015...164 Exhibit A.05. Asset Managers Views on Factors Affecting De-Selection, 2014 2015...165 Exhibit A.06. European Fund Selectors Selection Criteria, 2014 2015...166 Exhibit A.07. Asset Managers Views on Factors Affecting Selection, 2014 2015...167 Exhibit A.08. European Buy List Turnover, 2015...168 Exhibit A.09. Databases Used by European Fund Selectors, 2014 2015...169 Exhibit A.10. Asset Managers Main Areas of Focus for 2015...170 Exhibit A.11. Largest 20 Managers by Mutual Fund and Fund-of-Funds Assets Under Management in Germany, 2014...171 Exhibit A.12. Largest 20 Managers by Mutual Fund and Fund-of-Funds Assets Under Management in Italy, 2014...172 Exhibit A.13. Largest 20 Managers by Mutual Fund and Fund-of-Funds Assets Under Management in Spain, 2014...173 Exhibit A.14. Largest 20 Managers by Mutual Fund and Fund-of-fund Assets Under Management in Switzerland, 2014...174 Exhibit A.15. Largest 20 Managers by Mutual Fund and Fund-of-fund Assets Under Management in United Kingdom, 2014...175 Exhibit A.16. Largest 20 Managers by Mutual Fund and Fund-of-fund Assets Under Management in France, 2014...176 Exhibit A.17. Growth Predictions for Third-Party Assets Size, 2015...177 Exhibit A.18. Asset Managers Views on Most Important Attributes for Consultants Selecting a Manager for a European Insurance Company, 2014...178 Exhibit A.19. Passively Managed Assets as a Percentage of the Total Portfolio Size Within the Next 12 and 24 Months, 2015...179 Exhibit A.20. Fund Manager Turnover by Domicile, 2003 2014...180 C A 10 the Cerulli Report European Fund Selector 2015
Company Index CoMPANY INDeX 4AlphaDrivers...79, 91 Abante Asesores...125 Allfunds...12, 33, 110, 111, 113, 117, 118, 121, 122, 124, 127 Allianz Global Investors...28, 81, 84, 86, 88 Artemis Fund Managers...54 ATP Group...28 Aviva...54 AXA...28, 54 Banif Financial Group...110 Bank Berenberg...54 Banque Degroof...54 BBVA...110, 117 Bestinver...111, 121 BlackRock...129 Bloomberg...68, 102, 119, 135, 152 BNP Paribas...127 BNP Wealth Management...54 Borsa Italiana...98 Citywire...68, 83, 118, 119, 124, 135, 136 Commerzbank...80 Consultants Kommalpha...78 Copenhagen Infrastructure Partners...31 Credit Suisse...127, 128, 129 Deutsche Bank...88 Dimensional Fund Advisors...143, 157 FE Analytics...160 Fidelity Worldwide Investment...21, 121 Flossbach von Storch...83 FRR...44 Global Impact Investing Network...54 HSBC...127 ING Investment Management...31 Insight Investments...31 Inversis Banco...111 J.P. Morgan Asset Management...31, 54 the Cerulli Report European Fund Selector 2015 181 C A
Company Index Jupiter Asset Management...54 L&G Group...54 Lipper FMI...112 Lloyds Bank...127 Morningstar...11, 68, 83, 84, 119, 120, 135, 136, 152, 153 Old Mutual...144 PensionDanmark...31 PFZW...44 Pictet...129 PIMCO...84, 86, 91 S&P Financial Services...69 Santander...110, 117, 121 SCM Direct...57 SEB...80 Source...54 Standard Life...28 State Street Global Advisors...54 Swisscanto...128, 129 Talanx...86 UBS...110, 127, 128, 129 Vanguard...143, 157 Zurich Insurance...54 C A 182 the Cerulli Report European Fund Selector 2015