Confidential. Not for re-distribution.
Singapore Fund Management Highlights 2016
Survey findings and more
1
Agenda
• Survey highlights
• Fund selection trends
• Retail Investors’ behavior
2
Respondent Profile
3
24 firms participated in the survey
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016Analyst note: Three firms do not have any assets sourced from Singapore, while two other firms do not have intermediary sales.
S$1-5 bn48%
S$5-10 bn
S$10-20 bn
14%
More than
S$20 bn24%
Number of Participants Growth in 2015
Decrease48%
Increase52%
Business Mix
4
Assets booked in Singapore (S$ billion)
78.4 80.7
12.5 15.5
187.2 197.1
$0
$50
$100
$150
$200
$250
$300
$350
Dec-14 Dec-15
Intermediaries (excl. PB) Private Bank Institutional
S$ 293.3 bn S$ 278.1 bn
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016Analyst note: Two firms do not have intermediary sales.
Institutional Business
5
% Contribution to Total AUM - Institutional
38%
5%
14%
43%
0%
20%
40%
60%
80%
100%
Institutional
<10% 10-25% 25-50% 50-75% >75%
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016
Decrease38%
Increase29%
Constant33%
Change in 2015
Retail business (including Private banking)
6
Singapore Mutual Fund AUM by Distribution Channel
18.4% 18.4%
21.2% 20.7%
22.7% 26.2%16.9% 12.1%
11.8% 10.8%
9.0% 11.7%
0%
20%
40%
60%
80%
100%
2014 2015
Local banks Foreign banksPrivate banks Insurance companiesIFA / platforms Others (e.g. direct or securities firms)
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016
Channel Penetration 2015
28.6%
33.3%
23.8%
23.8%
28.6%
19.0%
14.3%
23.8%
28.6%
38.1%
42.9%
42.9%
Insurance companies
Local banks
Others
Foreign banks
Private banks
IFA / platforms
Increase Decrease
7
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016
8
Singapore Mutual Fund AUM by Fund Schemes
61% 53%
26%26%
13% 20%
0%
20%
40%
60%
80%
100%
2014 2015
Authorised funds Recognised funds Restricted recognised funds
Increase in restricted recognized funds
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016
9
Assets managed outside of Singapore
Assets sourced from Singapore
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016
Singapore Mutual Fund AUM by Asset Class
50.1%
51.3%
26.1%
23.3%
19.0%
21.1%
1.9%
1.6%
3.0%
2.7%
0% 20% 40% 60% 80% 100%
2014
2015
Equity Fixed incomeMixed assets / balanced Money marketOthers (e.g. alternatives, commodities, etc)
10
Source: IMAS-Cerulli Associates' Survey Findings of Singapore Fund Management Companies 2016
Agenda
• Survey highlights
• Fund selection trends
• Retail Investors’ behavior
11
Challenges in Promoting Funds in Asia
12
Analyst Note: Managers’ rating on a scale of 1-5, 1= Least challenging and 5= Most challenging.Source: Cerulli Associates, The Cerulli Report – Asian Fund Selector 2016: Striving for Longevity on Distributors’ Shelves
2.6
2.9
3.0
3.2
3.3
3.4
3.7
0 1 2 3 4 5
Getting a good fund rating
Lack of brand awareness in Asia
Accessing key influencers
Difficulty in customizing products for Asian distributors
Getting onto a third-party consultant/fund platform
Differentiating my fund from its peers
Having the right product fit
Differing Perspectives
13
Source: Cerulli Associates, The Cerulli Reports – Asian Fund Selector 2016: Striving for Longevity on Distributors’ Shelves, Asian Distribution Dynamics 2016: Responding to an Evolving Landscape, Wealth Management in Asia 2015: Meeting the Needs of Asia’s Affluent Investors
Product features
SG investors• Regular income• Capital protection• Clear investment targets
SG asset managers • Regular income• Clear investment targets• Flexible allocation Global/regional
banks• Flexible allocation• Currency share class• Regular income
Top Criteria For Fund Selection, 2016
14
2.3
3.0
3.0
3.4
3.5
3.8
4.0
4.24.3
4.4
0 1 2 3 4 5
Size of assets raised at competitors’ shelves
Fund size
Fees
Branding and marketing support
Access to fund portfolio manager
Timely, accurate and deep fund data
Experience/turnover of the investment team
Fund performance, including its consistency
Investment philosophy
Investment process
Analyst Note: Fund Selectors’ rating on a scale of 1-5, 1= Least important and 5= Most important.Source: Cerulli Associates, The Cerulli Report – Asian Fund Selector 2016: Striving for Longevity on Distributors’ Shelves
Criteria For Fund De-Selection, 2016
15
Analyst Note: Fund Selectors’ rating on a scale of 1-5, 1= Least important and 5= Most important.Source: Cerulli Associates, The Cerulli Report – Asian Fund Selector 2016: Striving for Longevity on Distributors’ Shelves
2.4
3.0
3.1
3.3
3.3
4.04.0
4.1
4.2
4.5
0 1 2 3 4 5
Built/acquired in-house capabilities
Significant change in house views
The fund breached its capacity
Risks involving parent company
Poor back office support
Departure of portfolio manager
Poor fund performance
Style drift within the fund
Lack of transparency
Inadequate risk control
Agenda
• Survey highlights
• Fund selection trends
• Retail Investors’ behavior
16
Sources of Information for Investors
10.0%19.4%
23.2%
23.6%
30.0%
51.4%
54.8%
64.4%
0.0% 20.0% 40.0% 60.0% 80.0%
Mobile apps
Social media
Face to face interaction
Television, radio
My social circle
My relationship manager
Print media
Financial websites
17
Source: Cerulli Associates, The Cerulli Report – Wealth Management in Asia 2015: Meeting the Needs of Asia’s Affluent Investors
18
Extent of Digital Engagement Among Singapore Investors, 2015 and 2020E
Source: Cerulli Associates, The Cerulli Report – Wealth Management in Asia 2015: Meeting the Needs of Asia’s Affluent Investors
2015, 5.6%
2020E, 11.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
0%–20% 20%–40% 40%–60% 60%–80% 80%–100%
Digital Engagement
8.0%
11.3%
14.7%
19.3%
21.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
I don't know how to select the right fund/s
I don't believe in letting others run myinvestments
I prefer to put my money in otherinvestments
I don't know what mutual funds are
I have inadequate investment knowledgeand understanding of them
19
Source: Cerulli Associates, The Cerulli Report – Wealth Management in Asia 2015: Meeting the Needs of Asia’s Affluent Investors
Top 5 Reasons for Not Investing in Mutual Funds