UK intermediaries most likely to buy funds from managers they can easily recall

Research by Fundamental Media finds that brand recall has the strongest correlation with propensity to buy

Key findings:

• UK financial intermediaries’ ability to recall an asset manager’s brand is the strongest indicator of their purchase intentions.
• This is followed by intermediaries’ belief in an asset manager’s ability to generate returns (perceived quality).
• Intermediaries provided more positive comments for those asset management firms that scored high on the brand values ‘personable’ and ‘partner’.

Financial intermediaries in the UK are most likely to buy funds from asset managers that are at the top of their mind, research by Fundamental Media reveals.

This is one of the key findings from the UK Global Brand Survey 2024, which is based on the responses from 156 financial intermediaries in the UK. To understand their perception of asset managers’ brands, we have developed a Brand Equity Index using a combination of quantitative and qualitative methods across five pillars: recall, familiarity, perceived quality, propensity to buy and distinctiveness.

The propensity to buy score assesses the likelihood to increase the use of funds provided by that particular asset manager. When correlating this score with those from the other four brand factors, we see that UK financial intermediaries’ ability to recall an asset manager’s brand is the strongest indicator of their purchase intentions.

This is a change from our previous studies in 2017 and 2021, when respondents’ belief in an asset manager’s ability to generate returns (perceived quality) had the strongest correlation to propensity to buy. In this year’s study, while its correlation with propensity to buy remains high, brand recall shows an even higher correlation.

Brand distinctiveness is correlated to familiarity but can be linked to both positive and negative associations with brands, explaining the weaker correlation to propensity to buy. However, when looking at single components of the distinctiveness score, some values will be more likely to drive propensity to buy than others.

The score for distinctiveness as a brand factor took into consideration scores for 14 brand values, but the brand values became less prominent compared to 2021, showing overall lower correlations with propensity to buy. However, when looking at the seven sets of prompted values, UK intermediaries are most likely to buy funds from asset managers which they consider to be a partner and tried and tested.

Qualitative analysis of comments on different asset managers revealed that financial intermediaries in the UK provided more positive comments for those asset management firms that scored high on the brand values ‘personable’ and ‘partner’ rather than those perceived as ‘corporate’ and ‘supplier’, with most of the other value sets receiving a similar number of positive and negative comments.

Unlike their peers in other European countries, financial intermediaries in the UK have a strong preference for local UK brands, with nine local managers in the top 15 of the Brand Equity Index, although some global managers have a very strong position in the UK as well.

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