Only 3 per cent of fund managers have a genuinely global presence, but they manage more than 40 per cent of the world’s contestable assets under management, according to NMG Consulting.
Of the 721 fund managers operating worldwide, only 21 (or 2.9 per cent) have a recognised brand in 10 countries or more, according to NMG Consulting.
In its latest Trialogue article, NMG Consulting found that 70 per cent of asset managers only have brand recognition in one country.
Eighteen per cent of managers are recognised in 2-3 countries, 9 per cent have a brand presence in 4-9 countries, and just 3 per cent of managers are 'global' in the sense that they are recognised in 10 or more countries.
"So, despite a perfect combination of conditions, the asset management industry is crowded and highly domestic," said NMG.
The consultant identified five conditions that are necessary for asset managers to develop their 'global' franchise: expand into regional areas first; develop capabilities organically; utilise M&A to develop overseas; avoid cultural 'silos' and encourage collaboration; and maintain a commitment to each country in the face of adversity.
"While global status will deliver scale, diversity and differentiation, it is out of reach for most asset managers. For the minority aspiring to be global, we advocate learning from the mistakes of others and boldly tackling these conditions," said NMG.
The 21 asset managers that have achieved brand recognition in 10 or more countries are: Aberdeen Standard Investment, Alliance Bernstein, AXA Investment Managers, BlackRock, Capital Group, Deutsche Asset Management, Fidelity, Franklin Templeton, Goldman Sachs AM, Investec, Invesco, JP Morgan AM, Lazard, M&G Investments, MFS, Morgan Stanley, Pimco, Schroders, State Street Global Advisors, UBS Asset Management, and Wellington.
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