Brand strength the most important fund selection factor for Hong Kong intermediaries

Transparency is considered the second-most important factor, research by Fundamental Media finds

Key points:

• Brand strength and transparency are the two most important factors financial intermediaries in Hong Kong look at when it comes to choosing between two funds with a similar track record
• This is a change from 2019, when investment philosophy was the most important factor, followed by quantitative fund ratings
• While the preference for online events has increased since the pandemic, 60% of financial intermediaries in Hong Kong still prefer offline events due to the opportunities for face-to-face networking and interaction

Brand strength and transparency are the two most important factors financial intermediaries in Hong Kong look at when it comes to choosing between two funds with a similar track record, research by Fundamental Media has revealed.

This is quite a change from 2019, when we carried out our previous Asia intermediaries research. That year, investment philosophy was the most important factor, followed by quantitative fund ratings. In 2023, these factors were considered the fourth and third most important, respectively. Four years ago, transparency was the third most important factor, while brand strength came fourth.

The most important fund selection factors also differ in each Asian market. While brand strength, transparency and quantitative fund ratings make up the top three in Hong Kong, Singaporean intermediaries first look at qualitative fund ratings, followed by comments/insights from a fund manager and investment philosophy. Meanwhile, the most important factors for Taiwanese respondents are brand strength, investment philosophy and commission paid by the fund provider.

From October 2022 to March 2023, we surveyed 31 financial investment professionals in Hong Kong to gauge their views on investment trends, support and communications received from asset managers, and media consumption.

Our research found that the Covid-19 pandemic has had quite an impact on intermediaries’ media and event preferences. While the preference for online events has increased, 60% of financial intermediaries in Hong Kong still prefer offline events due to the opportunities for face-to-face networking and interaction.

In terms of media consumption, the use of print media has seen a steep drop since the pandemic, as has radio, while mobile and desktop use is steadily increasing. The use of social media for professional purposes is on the rise as well, as overall usage of social media has increased since 2019.

With 80% of Hong Kong intermediaries listening, podcasts are also emerging as a new established media channel, perhaps taking up market share from radio.

For access to the full report, contact [email protected]