ETF issuers’ influence in the top European asset management brand rankings has grown significantly over the past year, according to Broadridge’s latest report.
This year’s Broadridge Fund Brand 50 report, which interviewed over 1,200 fund selectors globally about their top three fund suppliers across 10 brand attributes, found momentum was growing behind passive asset managers.
Vanguard made the biggest gains, moving up four places and breaking into the top 10 for the first time.
The passive giant is now the fourth-largest ETF issuer in Europe having booked over $20bn net new assets in 2023 while its global brand recognition also boosted its performance.
Barabra Wall, director of global distribution at Broadridge, said: “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.”
Meanwhile, BlackRock’s iShares leapfrogged Robeco and Schroders into sixth position with Amundi remaining in fifth.
DWS’s Xtrackers entered the top 50 for the first time, according to Broadridge, demonstrating the rise of ETFs in investor portfolios.
“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,” Wall said.
“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.”
Chart 1: Top 10 European asset management brands
Rank | Fund Group | Change |
|---|---|---|
1 | BlackRock | 0 |
2 | JPMorgan AM | 0 |
3 | Fidelity | 0 |
4 | Pictet AM | 0 |
5 | Amundi | 0 |
6 | iShares | ↑ 2 |
7 | Robeco | ↓ 1 |
8 | Schroders | ↓ 1 |
9 | Vanguard | ↑ 4 |
10 | PIMCO | ↑ 2 |
Source: Broadridge
The top five brands, led by BlackRock, remain unchanged over the year.
However, Broadridge said a “relatively risk-averse” European investor climate acted as a “boon” for passive specialists, but also noted active ETFs rising market share.
It added Amundi was “praised for its range of sustainable investments including its climate-neutral ETF offerings”.
This was despite a tough year for ESG in 2023, when poor performance, regulatory pressures and energy security issues created a perfect storm.
“Broadridge interviews with fund selectors suggest that this may be overexaggerated, as ESG still constitutes a major consideration in investment decision-making,” the group said.
“But firms are undeniably more sceptical and subject asset manager credentials to greater scrutiny to validate a firm’s ESG bona fides.”
The findings come as evidence of active managers struggling to outperform their benchmark grew stronger last week.
The Morningstar European Active-Passive Barometer 2023 revealed just 31.2% of active equity managers beat their average benchmark return across 38 categories, highlighting their “notably low” success rate.
