Research reveals competitiveness of asset classes in the Netherlands

Dutch intermediaries recalled 109 unique asset management brands across 15 prompted asset classes and management styles 

Key points: 

• Intermediaries’ ability to recall asset managers that they associate with specific asset classes and management styles provided insights into the competitiveness of each asset class and management style. 

• Fixed income also showed the lowest standard deviation, followed by alternatives and real estate, suggesting that these asset classes are more competitive than the others. 

• The research showed that fixed income is also the asset class that is most likely to see inflows during the next year. 

Most asset classes and management styles are relatively competitive in the Netherlands, with the most competitive ones being fixed income, alternatives, absolute return and passive management, according to research by Fundamental Media. 

For the Global Brand Survey 2024, Fundamental Media surveyed 54 financial intermediaries in the Netherlands from June to September 2023 to better understand their perception of asset management brands. Part of the research focused on intermediaries’ ability to recall asset managers that they associate with specific asset classes and management styles. These responses provide insights into the competitiveness of each asset class and management style. 

Dutch intermediaries recalled 109 unique asset management brands across the 15 prompted asset classes and management styles. Many brands were mentioned in all these categories, but some had more mentions for a greater variety of brands, indicating a higher level of competitiveness, while others had most mentions concentrated towards only a few 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 asset classes, the number of unique brands mentioned was highest in European equities and fixed income and the lowest in multi-asset and Dutch equities. When looking at the variability in the number of mentions within each asset class, fixed income also showed the lowest standard deviation, followed by alternatives and real estate, suggesting that these asset classes are more competitive than the others. Dutch equities showed the highest standard deviation. However, the standard deviations for all asset classes and management styles were all relatively close to each other, suggesting that the market is overall quite competitive.  

Although some asset classes are more competitive than others, offering asset managers the opportunity to gain market share by differentiating themselves from their competitors, not all asset classes are in vogue. 

The research showed that fixed income is also the asset class that is most likely to see inflows during the next year, as 37% of intermediaries plan to increase their clients’ exposure to this asset class while 13% are planning a decrease. This was followed by global equities, where 31% plan an increase and 12% a decrease. Real estate is likely to see the largest outflows, with 42% expecting to decrease their exposure and 12% planning an increase, followed by Dutch equities, where 13% plan a decrease and 7% an increase. 

Active management saw by far the highest number of unique brands mentioned within the management styles. Unique brand mentions for smart beta and ESG were the lowest. Absolute return and passive management had the lowest standard deviation and thus the most competition, while ESG was the least competitive. 

Although competitiveness is low within ESG, Dutch intermediaries are most likely to increase exposure to this asset class, with 43% planning an increase and 6% a decrease. Respondents are divided on their plans for absolute return, with 10% planning an increase and 10% planning a decrease. Slightly more respondents (16%) are planning a decrease in passive management than an increase (12%). 

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