ST. LOUIS, Sept. 15, 2020 /PRNewswire/ -- Fund
managers' investment performance, brand credibility and online
communications are key factors to attract Chinese investors,
according to a new report published today by
FleishmanHillard.
The report, The Future of Asset Management in China 2020, offers insights to global
asset managers assessing opportunities in China. It is the second annual China-focused asset management report
published by FleishmanHillard, which features analysis drawn from
an online survey of mainland Chinese investors' attitudes and
behavior, plus an overview of the latest industry trends.
The key findings of the report show that when selecting a fund
manager, mainland Chinese investors put emphasis on performance,
credibility and online communications. However, while Chinese
investors will pay higher fees for foreign fund management relative
to local managers, they expect to get some added value in the form
of unique investment strategies and capabilities. Notably, ESG
product offerings are a requirement for the majority.
"Despite the COVID-19 pandemic and geopolitical issues, the
asset management industry in China
continued to grow healthily thanks to the ongoing relaxation of
market access rules for overseas asset managers," said Patrick Yu, Asia
Pacific lead for FleishmanHillard's Financial and
Professional Services practice. "Our second China-focused asset management report provides
useful insights to help industry players understand investor
expectations and plan their communications programs more
effectively. Understanding the industry landscape and having a
well-thought out communications strategy continue to be important
for overseas asset managers to flourish and attract mainland
investors."
The report includes the following findings from mainland
investors:
- Performance and credibility continue to be key. Asset
management performance and credibility remain the most important
factors when selecting a fund manager, but there is a fall in the
number who consider it very important – performance factors dropped
to 56% from 64% last year and credibility fell to 55% from 74%.
However, net importance (combining "very" or "somewhat" important)
shows little change from last year.
- QDLP and WFOE fund products continue to entice mainland
investors. Just over 90% of the investors had invested in
Qualified Domestic Limited Partner (QDLP) products run by overseas
asset managers. Most of them experienced higher service fees, but
they found that acceptable. Almost nine out of 10 (89%) of the
investors had purchased private fund products from overseas asset
management houses that have a Wholly-Foreign-Owned-Enterprise
(WFOE), down a fraction from last year (91%). Feedback on WFOE
asset management funds was similar to QDLP, conveying that
performance is good and investment strategy is unique. While the
fees are on the high side relative to the local players, they are
very manageable. Appetite for WFOE products clearly remains very
strong, reflecting the confidence many Chinese investors have in
overseas fund managers.
- Prospect for overseas asset managers in onshore retail funds
looks promising. Thanks to ongoing relaxation of policies, the
local regulator in China has
recently approved the first overseas manager to run an onshore
retail fund management platform. It is promising to see that nine
out of 10 investors would be interested in onshore retail funds
offered by overseas asset managers. The prospect of global brands
with their own strategies fused with mainland China expertise for the China market is clearly compelling for local
investors.
- Digital and, in particular, mobile distribution channels for
thought leadership and products are critically important during and
after COVID-19. The pandemic has sparked the use of more online
channels for patronage or access to fund information in
China, with 68% opting for more
online channels. This is likely here to stay, emphasizing the need
for a digital – and mobile – strategy.
- COVID-19 has had relatively little impact, yet the vast
majority have changed their approach to risk as a result of the
U.S.-China trade tensions.
Four out of five investors say COVID-19 has affected their
confidence in their financial situation, but just one in five (21%)
say they are extremely uncertain about their financial situation in
the near term. Overall, the impact looks to have been relatively
moderate – for 56% it is described as low. Yet for investors, the
survey shows that one-third increased their asset allocation risk
appetite as a result of the trade tensions. Interestingly, more
than 90% said they had altered their approach because of the
tensions.
- Greater risk management (56%), transparency in
communications with customers (50%) and strong ESG product
offerings (50%) continue to be the top three most important traits
for an overseas asset management operating in China.
FleishmanHillard's "The Future of Asset Management in
China 2020" report includes
qualitative and quantitative data. FleishmanHillard TRUE Global
Intelligence™ fielded an online survey of 250 Chinese investment
professionals between July 20 and July 27,
2020. 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 fund (85%),
fixed income (76%), ETF (72%), balanced funds (63%), PE funds (58%)
or alternatives (29%).
About FleishmanHillard
FleishmanHillard specializes in
public relations, reputation management, public affairs, brand
marketing, digital strategy, social engagement and content
strategy. FleishmanHillard was named 2019 PRWeek U.S. Outstanding
Large Agency; 2019 Holmes Report North America Large Agency of the
Year; ICCO Network of the Year – Americas 2017-2019; Agency of the
Year at the 2017 and 2018 North American Excellence Awards; 2018
Large Consultancy of the Year by PRWeek UK; PR News' Best Places to
Work in PR 2016-2018; Human Rights Campaign Best Places to Work for
LGBTQ Equality 2018-2020; PR Awards Asia 2017 Greater China Agency
of the Year; and NAFE's "Top Companies for Executive Women"
2010-2020. The firm's award-winning work is widely heralded,
including at the Cannes International Festival of Creativity.
FleishmanHillard is part of Omnicom Public Relations Group, and has
80 offices in more than 30 countries, plus affiliates in 50
countries.
About Omnicom Public Relations Group
Omnicom Public
Relations Group is a global collective of three of the top global
public relations agencies worldwide and specialist agencies in
areas including public affairs, marketing to women, global health
strategy and corporate social responsibility. It encompasses more
than 6,300 public relations professionals in more than 370 offices
worldwide who provide their expertise to companies, government
agencies, NGOs and nonprofits across a wide range of industries.
Omnicom Public Relations Group delivers for clients through a
relentless focus on talent, continuous pursuit of innovation and a
culture steeped in collaboration. Omnicom Public Relations Group is
part of the DAS Group of Companies, a division of Omnicom Group
Inc. (NYSE: OMC) that includes more than 200 companies in a wide
range of marketing disciplines including advertising, public
relations, healthcare, customer relationship management, events,
promotional marketing, branding and research.
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