BlackRock has knocked Schroders off the top of an influential ranking of UK fund brands, with the US behemoth also edging past JPMorgan and Fidelity International to claim the number one spot.
The annual ranking compiled by Broadridge is based on interviews with more than 1,200 fund selectors across Europe, the US and Asia Pacific. It measures asset managers’ brand attractiveness across 10 attributes including investment management team stability, local knowledge, innovation and social responsibility and sustainability.
Schroders, which oversees £751bn of assets, slipped three places to fourth position in this year’s ranking. It finished behind Fidelity International and JPMorgan Asset Management, which retained their second and third spots respectively.
“Schroders remains a strong and well liked brand but has slipped this year,” said Chris Chancellor, vice president for data and analytics at Broadridge.
READ The secrets of M&G’s ‘spectacular turnaround’
“This appears to be linked more to product than anything else. It is still seen as excellent at service and a strong and solid firm but it has slipped due to lower rankings in ‘appealing investment strategy’ and ‘expert in what they do’.”
He added: “Both of these elements are very linked to product and suggests the others above Schroders had the more in-demand products last year.”
UK-listed Polar Capital also registered a drop, falling two places to ninth position. Chancellor said slowing demand for the asset manager’s thematic equity products had impacted on its overall brand appeal.
Schroders and Polar Capital were contacted for comment.
What’s behind BlackRock’s rise?
According to Chancellor, BlackRock’s rise up the ranking was due to fund selectors’ favourable view of its investment strategy, with its range of passive products and competitive pricing playing a part.
The world’s largest asset manager, which also retained its number one spot in the European brand league table, scored highly for “client oriented thinking” and “local knowledge”, with fund selectors commenting on knowledgeable sales teams and solid client relationships.
Baillie Gifford and Royal London Asset Management were among other groups that climbed the UK ranking, finishing in sixth and eighth spot respectively.
READ Schroders ramps up focus on AI, identifies 80 projects
However, M&G posted the biggest year-on-year rise in the top 10, moving up five places in the UK league table to seventh position.
Chancellor said M&G climbed due to it being viewed as expert in what it does, as well as improvements in its sustainability and innovation scores.
“The expertise seems to be especially linked to fixed income which obviously had a better 2023 than the previous years,” said Chancellor.
According to results published on 21 March, M&G posted net inflows of £1.1bn across its asset management and wealth business in 2023, up from £200m the previous year.
M&G chief executive Andrea Rossi told Financial News the asset manager wanted to bolster its private markets capabilities across continental Europe, particularly in private credit.
Which UK fund houses are falling behind?
Polar and Schroders were not the only fund groups to register a fall in their UK brand ranking.
UK-listed Liontrust dropped out of the top 10 altogether, falling six places to finish 12th.
The £27bn asset manager endured a tough 2023, including a failed bid to acquire Swiss rival GAM and investors pulling billions from its funds.
Last year also saw the London-headquartered asset manager ejected from the FTSE 250. John Ions, Liontrust CEO, told FN in February it is on the hunt for acquisition targets, adding “the desire to grow the business is still as strong”.
Chancellor said Liontrust remains a “really well-liked” brand among fund selectors, but its ranking was pulled down by their view of the asset manager’s stability.
A spokesperson for the asset manager said: “Liontrust continues to be perceived to be leaders in sustainable investing and UK equities among professional and retail investors.”
To contact the author of this story with feedback or news, email David Ricketts
