THE CERULLI REPORT

Asia Marketing and Sales Organizations Customizing Strategies for Local Markets

Overview This report provides an in-depth analysis of the distribution and marketing strategies of Asian asset managers, and how they use LOOK INSIDE third-party intermediaries to promote their products. It covers the 6 pages of report content attached asset management industry in Asia, excluding Japan and Australia. It also evaluates sales and marketing tactics of managers as well as distributors and retail investors. This report explores distribution 82 pages, 33 exhibits trends, internal resources, digital media, advertising, and branding. The main topics are Pan-Asian marketing, catering to local investor demand, and digital media, supported with case studies and advertising illustrations from specific firms.

Benefits TO PURCHASE • Evaluate the viability of a regional sales and marketing approach CALL +1 617-437-0084 • Understand current advertising trends and benchmarking your EMAIL [email protected] firm’s marketing techniques against competitors’ strategies VISIT www.cerulli.com • Identify effective ways to build a strong brand HAVE US CONTACT YOU: http://clients.cerulli.com/tiny/59w5 • Learn what sales and marketing campaigns resonate with distributors and retail investors • Explore the potential of digital media Purchase Information $15,000 | ANNUAL Questions Answered • Hardcopy • Digital copy in color 1. How should regional firms manage their internal structures • Unlimited online firm-wide access and position their brands in each local market? • Exhibits in Excel 2. What should firms do to stand out from the crowd, and how • Key findings • Analyst support do they measure their marketing initiatives? 3. How powerful is social media as a marketing tool, and to what extent is resource allocation justified? 4. How can managers build relationships with and win the hearts of distributors? 5. What strategies work in marketing offshore products, and what are the channels managers can tap? 6. What campaigns (e.g. focusing on brand or performance) sell well in which Asian countries? 7. How can foreign managers penetrate the local scene and gain the trust of retail investors? 8. How are managers integrating thought leadership develop- ment and other marketing efforts to target both institutional and retail clients? 9. What are distributors demanding in support from managers, and how are managers addressing such demands? 10. How are managers effectively implementing branding campaigns in domestic markets such as China, India, and Korea? Index of Exhibits

INDEX OF EXHIBITS

Chapter 1: Marketing and Sales Strategy 1. Opening Statements of Fund Advertising Regulations Across Selected Countries ...... 16 2. Asia Ex-Japan by Distribution Channel, 2013 ...... 17 3. Asia Ex-Japan Mutual Fund Assets Under Management Distribution by Affiliated vs. Third-Party Channels, 2011–2013 ...... 19 4. Asia Ex-Japan Managers’ Views on Which Distribution Channels They Intend to Expand the Use of Over the Next Three Years, 2013–2014 ...... 20 5. Staffing Numbers at Selected Asset Management Firms in Asia ...... 21

Chapter 2: Brand Building 6. Asian Asset Managers’ Views on Attributes Impacting a Firm’s Success in Asia...... 24 7. Asian Asset Managers’ Views on External Asset Manager Selection Criteria, 2010–2014...... 25 8. Asian Asset Managers’ Manpower Support at Distributors’ Events...... 27 9. Advertising Cost for Selected Media in Hong Kong and Singapore ...... 28 10. Asian Asset Managers’ Key Areas of Focus in Advertising...... 29 11. Asian Asset Managers’ Views on Measurement of Marketing Initiatives...... 30 12. APS Asset Management’s Management and Investment Professionals, September 2014 ...... 32 13. Dimensional Fund Advisors’ Academic Leaders, September 2014 ...... 33

Chapter 3: Digital and Social Media: The New Approach 14. Asian Managers’ Plans for Future Advertising by Media Outlet, 2014...... 36 15. Retail Investors’ Main Sources of Information for Mutual Funds, 2014 ...... 37 16. Regional vs. Locally Operated Presence on Social Media Channels, August 2014 ...... 39 17. Retail Investors’ Main Sources of Investment Information, 2014 ...... 41 18. Asian Managers’ Views on Current Challenges in Pursuing Digital Marketing Strategies, 2014 ...... 42

Chapter 4: Sales Strategy: Supporting Distributors 19. Asset Managers’ Views on Areas Requiring Significant Changes Within Their Organization ...... 46

The Cerulli Report • Asia Marketing and Sales Organizations 2014 5 CA Index of Exhibits

20. Offshore Funds in Taiwan, 2013...... 47 21. Indian Mutual Fund Assets Under Management by Distribution Channel, 2011–2013...... 49 22. Asset Managers’ Views on the Importance of Various Forms of Support to Distributors, 2014 ...... 50

Chapter 5: Offshore Product Sales and Marketing 23. Modes of Sale for Selected Markets in Asia...... 54 24. Snapshot of Foreign Asset Management Companies and Their Master Agents in Taiwan, June 2014...... 56 25. Asian Asset Managers’ Views on Possible Strategies to Build Distribution Relationships Over the Next 2 Years, 2013...... 59 26. Southeast Asian Asset Managers’ Preparations in Respective Markets Relating to the ASEAN Fund Passport ...... 61

Chapter 6: Locally Oriented Campaigns 27. Marketshare of Top Managers in Asia, 2012–June 2014 ...... 68 28. Asset Managers’ Views on Attributes’ Impact on a Firm’s Success, 2014...... 68 29. Asset Managers’ Views on Challenges Facing the Marketing Department, 2014 ...... 69 30. Largest 10 Indian Mutual Fund Managers, June 2014...... 72 31. India’s Wholly Foreign-Owned Managers by Operating Margins, FY2012/2013 ...... 73 32. Korean Household Financial Assets, 2008–2013...... 77 33. Selected Regulations on Advertising of Mutual Funds ...... 79

C A 6 The Cerulli Report • Asia Marketing and Sales Organizations 2014 Sample Section Asia Marketing & Sales Organizations: Customizing Strategies for Local Markets Brand Building Chapter 2

EXHIBIT 8 Asian Asset Managers’ Manpower Support at Distributors’ Events

Source: Cerulli Associates Analyst Notes: Respondents were asked, “How often do the following personnel from your firm provide support at distributors’ events (roadshows, seminars for RMs/clients, etc)?”. Results based on a survey of Asian asset managers across four markets (China, Hong Kong, Taiwan, and Singapore).

100% 8.3% 16.7% 8.3% 80%

60% 41.7% 58.3%

40% 8.3%

20% 16.7% 33.3% 8.3% 0% Portfolio manager attends Product specialist attends

All of such Around 75% Around 50% Around 25% Never attend events of such events of such events of such events such events

Apart from providing support at distributors’ events, making use of social media tools such as a blog or Twitter is becoming a necessity. An additional benefit is that it can even be operated and maintained by portfolio managers who sit outside Asia and might better suit their schedule.

Though he does spend a lot of time in Asia, Mark Mobius from Franklin Templeton is a good example. The star asset manager runs his own blog and has his own Twitter account, regularly penning down his thoughts on developments in emerging markets and their implications together with his team of writers. Elsewhere, M&G’s team of bond managers runs a blog named “Bond Vigilantes” from the U.K. office. While many managers do maintain a website or blog that might publish similar topics, one distinguishing trait that the above examples share is that the blog posts tend to be written from the first-person perspective. Beyond that, M&G’s blog also contains the bios of these “bloggers”, which include light-hearted information such as favorite heroes (where characters such as Iron Man are mentioned). The general idea is for people to be able to relate to the views and personal experiences of these individuals, and eventually identify with them and the firm.

Another approach is to leverage media coverage. This comes in many forms, including appearing in media interviews, speaking at events, and publishing whitepapers. For example, Franklin Templeton commissioned ORC International to conduct a Global Investor Sentiment Survey this year. It included responses from 11,113 individuals in 22 countries and the findings have been made publicly available. Such initiatives and media attention not only create a “halo effect” among the end-investors, but also indirectly make it easier for distributors to refer to such materials in their sales effort.

The Cerulli Report • Asia Marketing and Sales Organizations 2014 27 CA Company Index

COMPANY INDEX

Aberdeen ...... 8,23, 27, 32 Alibaba ...... 36, 42, 48 AllianceBernstein ...... 62, 63 Allianz Global SITE ...... 53 Asset Management ...... 75 APS Asset Management ...... 23, 30 Baidu ...... 42, 68 BNY Mellon ...... 67 BNY Mellon Western Fund Management ...... 67 China Unicom ...... 68 Daiwa Asset Management ...... 69 Deutsche Asset Management ...... 37 Dimensional Fund Advisors ...... 23, 31 Fidelity Worldwide Investment ...... 18, 38 Franklin Templeton ...... 25, 27, 52, 71, 72, 73, 74, 78 Fullgoal Fund Management ...... 68 Galaxy Asset Management ...... 41 Goldstate Securities ...... 66 Harvest Fund Management ...... 37 HDFC Asset Management ...... 69 Hyundai Securities ...... 47 ICICI Prudential Asset Management ...... 47 J.P. Morgan Asset Management ...... 19, 51 Kasikorn Asset Management ...... 46 KBC Bank ...... 66 Kiwoom Securities ...... 38, 47 Korea Value Asset Management ...... 75 Kotak Mahindra Asset Management ...... 69 Krung Thai Asset Management ...... 46 Kyobo Asset Management ...... 75 L&T ...... 47 M&G ...... 25, 52 ...... 53 Mirae Asset Global Investments ...... 38 Morgan Stanley Investment Management ...... 69 Morningstar ...... 75 NH-CA Asset Management ...... 75 ORC International ...... 25 PIMCO ...... 23

The Cerulli Report • Asia Marketing and Sales Organizations 2014 81 CA Company Index

PineBridge Investments ...... 53, 69 Reliance Capital Asset Management ...... 70 Sahara Asset Management ...... 70 Samsung Asset Management ...... 38 SBI Asset Management ...... 69 SCB Asset Management ...... 46 Schroder Investment Management ...... 52, 76 Shinhan BNP Paribas Asset Management ...... 75 Sina Weibo ...... 37 Soho Square ...... 72 StockQ ...... 56 Tianhong Asset Management ...... 69 Truston Asset Management ...... 75 UBS Hana Asset Management ...... 75 Value Partners ...... 66 Value Partners Goldstate Fund Management ...... 67 Western Asset (Legg Mason) ...... 61, 63

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