Research reveals the most competitive asset classes in Spain

Spanish intermediaries recalled 196 unique brands across 15 asset classes and management styles 

Key points: 

• We asked 156 financial intermediaries in Spain which asset managers they associate with different asset classes and management styles. 

• When looking at the variability in the number of mentions within each asset class, real estate, alternatives and European equities showed the lowest standard deviation, suggesting that these asset classes are more competitive than the others. 

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

Real estate, alternatives and absolute return are the most competitive asset classes and management styles in Spain, according to research by Fundamental Media. ETFs, North American equities and fixed income are the least competitive.  

For the Global Brand Survey 2024, we surveyed 156 financial intermediaries in Spain from June to September 2023 to understand how they perceive different asset management brands. Among other topics, we asked them which asset managers they associate with different asset classes and management styles. The responses provided us with insights on the competitiveness of each asset class and management style. 

Spanish intermediaries recalled 196 unique asset management brands across the 15 asset classes and management styles. A high number of managers was mentioned in each asset class and management style, but some had a better spread of mentions across the different companies, making them more competitive, while for others the mentions were 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. 

The highest number of different brands were recalled in European equities, alternatives and multi-asset, while intermediaries only mentioned 36 asset management firms which provide Spanish equities. However, when looking at the variability in the number of mentions within each asset class, real estate, alternatives and European equities showed the lowest standard deviation, suggesting that these asset classes are more competitive than the others. On the other hand, North American equities and fixed income had a much higher leaning towards a smaller number of leading brands, making them less competitive. 

However, while real estate is the most competitive asset class, it is also the asset class that is most likely to see outflows in the next year. When asked about which asset classes they plan to increase or decrease over the next 12 months, 33% of Spanish intermediaries indicated they plan to decrease their clients’ exposure to real estate while only 16% plan an increase. The asset classes that are most popular are fixed income (61% plan an increase vs 11% a decrease) and global equities (57% plan an increase vs 8% a decrease). Among the most competitive asset classes, emerging market equities is attracting the most interest from intermediaries and thus offering the best opportunities to increase market share. 

Within the prompted management styles, the highest number of unique brands were recalled in active management and ESG, and the least in ETFs. Absolute return and smart beta are the most competitive management style, while ETFs is by far the least competitive.  

However, absolute return is likely to see a small overall decrease, with 30% of financial intermediaries in Spain planning to decrease their clients’ exposure to this asset class, while 24% plan an increase. Active management (56% plan an increase vs 7% a decrease) and ESG (53% expect an increase vs 9% a decrease) are expected to see the biggest inflows, suggesting better opportunities to gain market share. 

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