Vanguard Unseats BlackRock’s Top Spot in Broadridge’s 2024 Best-Performing Fund Brand Ranking in the U.S.

The latest edition of Broadridge’s Fund Brand 50 (FB50), an annual research study by global Fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR) was released today, highlighting the world’s best-performing third-party asset management brands. U.S. fund selectors prize solidity and client service as the domestic giants jostle for position and strengthen their hold on the asset management industry.

“In 2024, fund selectors and gatekeepers were resolute that top-choice managers concentrate on services that add value to their investors, such as keeping them best informed and sharing their knowledge of the markets,” said Jeff Tjornehoj, Senior Director, Fund Insights, Broadridge. “Those same selectors also emphasized asset management partners who help them meet the shifting needs of heterogeneous investors through development of appealing investment strategies.”

The independent study measures and ranks asset managers’ relative brand attractiveness based on fund selector perceptions: taking into account 10 brand attributes to reveal the top U.S. and global brands. This is the latest study from Broadridge’s Data and Analytics business and highlights the depth and breadth of the firm’s global market insights.

Top-10 U.S. Asset Management Brands

Key insights

While no-one new breaches the top five, the major firms jostle for position, with Vanguard usurping BlackRock’s position atop the ranking. Vanguard was able to maintain first place in the three highest-ranked brand attributes and duked it out with BlackRock across the entire brand spectrum. In fact, the two firms split first place in eight of the 10 categories, with Vanguard winning by points total.

There was plenty of competition elsewhere in the top ten, as JPMorgan took fourth, pushing Fidelity down to fifth, as First Trust took T. Rowe Price’s 10^th place position.

Homegrown groups continue to dominate the U.S. – in fact they significantly strengthened their domestic dominance. French firm Natixis IM remains the highest-ranked non-US brand but fell from 22^nd place to 32nd.

2023 was a gangbuster year in U.S. markets. Domestic stocks were up 24%, international equities up 19.5%, and a well-timed fourth-quarter rally saved bonds from an unprecedented third consecutive year of losses as they returned 5.5%.

Last year’s uncertain climate saw investors cling to stability and resulted in stasis in the rankings. This year, investor confidence returned, and firms sought new ways of differentiating themselves from their competitors.

Valued attributes

While U.S. fund selectors were less risk-averse than in 2022, they still prized ‘Solidity’ above all other attributes – resulting in a consolidation of strength for the domestic giants. ‘Stability of investment management team’ was also a top-five attribute, as fund selectors desire stability that extends to the teams that they work with.

‘Appealing investment strategy’ ranked third in the list of desirable attributes. Investors favor asset managers who can offer a clear and effective strategy for balancing risk and returns. A well-defined strategy can distinguish a firm from competitors in the eyes of clients with specific investment approaches or needs.

Expertise is also highly valued in the U.S. – advisers want to shift the burden of research onto asset managers. Clients preferred approachable, knowledgeable fund specialists who can provide specialized, detailed analysis in a timely manner.

Additional findings from this year’s study include:

• US fund flows are dominated by the myriad decisions made by intermediaries on behalf of individual clients to buy or sell a fund. To help facilitate this, the industry innovates new products (model portfolios, interval funds, separately managed accounts, actively managed ETFs, etc.). Strong equities and fragile bonds gave asset managers the opportunity to target clients with communications advising them on how to navigate this changing landscape. Firms that were able to do so saw their brands burnished.
• A rush of advisers seeking out private equity and private debt opportunities helped alternatives manager Blackstone Group jump 57 spots to land in 21st position.
• Fund selectors highly value clear and detailed marketing materials. In a crowded marketplace, successful managers offer fund selectors a wide range of new investment products. Effective communication of the value of these product strategies is as important to fund selector decision-making as offering a wide range of products from which to choose.

A webinar is scheduled for March 27, 2024 at 2 PM GMT / 10 AM ET / 10 PM HKT to reveal the top asset management brands in each region. Registration is available to all at https://event.on24.com/wcc/r/4510770/F63F5F36B873DEE0FC7D364394198FBE and is now open.