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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)

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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

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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

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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

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Challenges in Promoting Funds in Asia

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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

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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

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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

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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

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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

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Source: Cerulli Associates, The Cerulli Report – Wealth Management in Asia 2015: Meeting the Needs of Asia’s Affluent Investors

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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

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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

Contact Us

Thusitha De SilvaDirector

tdesilva@cerulli.com

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www.cerulli.com