Alternatives and fixed income the most competitive asset classes in France

Research by Fundamental Media reveals that France is the market with the highest number of unique brands mentioned 

Key points: 

• Within the different asset classes, French intermediaries recalled the highest number of unique brands in fixed income and French equities, with the fewest brands mentioned in emerging market equities and multi-asset. 

• The most competitive asset classes are alternatives, fixed income and multi-asset, while the least competitive asset classes are North American equities, French equities and global equities. 

• Absolute return, smart beta and passive management are the most competitive management styles, while ETFs is by far the least competitive. 

Alternatives, fixed income and multi-asset are the most competitive asset classes in France, while ETFs and North American equities are the least competitive, research by Fundamental Media found. 

For its Global Brand Survey 2024, Fundamental Media collected the views of 135 financial intermediaries in France from June to September 2023 to better understand their perception of asset management brands. One of the questions focused on unprompted brand recall to determine which asset managers the respondents associate with different asset classes and management styles. These responses provide insights into the competitiveness of each asset class and management style. 

Across the 15 asset classes and management styles, French intermediaries recalled 230 unique asset management brands. Many brands were mentioned in each asset class and management style, but in some cases the mentions were heavily skewed to a few asset managers, indicating less competition, while other asset classes and management styles had a more balanced spread of mentions across many different brands. 

To better understand the competitiveness of each asset class and management style, we looked at the standard deviation in the number of mentions. A low standard deviation in the number of mentions within an asset class or management style indicates that the mentions are more evenly distributed among the different brands within that category. This suggests a more competitive environment because no single brand overwhelmingly dominates the market. Instead, many brands are receiving similar levels of attention, implying that none have a significantly larger market share or recognition than the others. 

In contrast, a high standard deviation means that the mentions are more unevenly distributed, with a few brands receiving many more mentions than the others. This indicates less competition, as the market is dominated by a small number of leading brands. 

In conclusion, in more competitive asset classes and management styles, companies who put much effort into increasing their visibility might be able to gain market share and move up through the ranking faster compared to less competitive asset classes and management styles, where more effort and time might be needed to reduce the gap with the most established brands. 

Within the different asset classes, French intermediaries recalled the highest number of unique brands in fixed income and French equities, with the fewest brands mentioned in emerging market equities and multi-asset. When looking at the standard deviation, it becomes clear that the most competitive asset classes are alternatives, fixed income and multi-asset, while the least competitive asset classes are North American equities, French equities and global equities. 

Respondents were also asked about their intentions to increase or decrease their clients’ exposure to each asset class and management style over the next 12 months. This revealed that fixed income is likely to see the most inflows, as 59% of respondents expect an increase while only 7% is planning a decrease. These findings indicate a favourable time for asset managers promoting fixed income, as the demand is high and intermediaries associate many different brands with the asset class rather than only opting for a select few managers. 

Other asset classes that are likely to see an increase in demand are emerging market equities (41% expect an increase vs 25% a decrease) and global equities (30% plan an increase vs 16% a decrease), while real estate is expected to see the highest decrease (49% plan a decrease vs 19% an increase).  

Within the management styles, active management saw the highest number of recalled brands, while only 21 unique ETF brands were mentioned. Absolute return, smart beta and passive management are the most competitive management styles, while ETFs is by far the least competitive. 

However, the most competitive management styles are the most likely to see outflows, as financial intermediaries plan to decrease their exposure. Passive management is expected to take the biggest hit (36% plans a decrease vs 9% an increase), followed by smart beta (28% plans a decrease vs 12% and increase). Respondents are divided on their plans for their clients’ exposure to absolute return, with 30% planning an increase and 22% a decrease.  

For access to the full report, visit our dedicated Global Brand Survey page.