Middle East Investment Panorama results

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Nov 18, 2013 (3 years and 7 months ago)

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0

|
MEIP Survey


August 2012

Middle East Investment Panorama results

Platinum sponsors only
NOT FOR EXTERNAL DISTRIBUTION

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|
MEIP Survey


August 2012

Agenda







Introduction: methodology


Demographics sample breakdown
-

detailed


Analysis


results by key questions








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|
MEIP Survey


August 2012


Research was conducted online, CATI and face
-
to
-
face, using Insight
Discovery’s database


Fieldwork undertaken throughout May and June 2012


Total participation


2012: 250 respondents


Eligible respondents: 212


Non
-
eligible respondents: 38



64.3%

35.7%

Eligible
Non-Eligible
84.8%

15.2%

Eligible
Non-Eligible
2011 (n=330)


2012 (n=250)

Introduction

|

Survey methodology

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|
MEIP Survey


August 2012

Yes

98.0%

No

2.0%

43.7%

16.4%

6.7%

5.9%

5.0%

4.2%

4.2%

2.9%

2.5%

2.1%

2.1%

1.7%

1.3%

0.8%

0.4%

Financial advisory/ wealth
management firm
Private Bank- international
Asset management company-
regional
Commercial bank
Insurance company (international)
Investment bank
Retail bank- international
Investment Company
Retail bank- regional
Family Office/ corporate
Private Bank- regional
Institution/ pension fund
Asset management company-
international
Insurance company (regional)
Sovereign Wealth Fund
Company Work for


those that said

YES

Sample Size 253


Demographics

|
Do you work for a company which has dealings with either asset


management and/ or international life companies?

Excluded
from survey
(6.3%)

x

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MEIP Survey


August 2012

Top Mngmt

16.4%

Snr Mngmt

32.0%

Mid Mngmt

28.9%

Jnr Mngmt

6.7%

Non Mngmt

16.0%

2011


Demographics

|

‘C
urrent position’ profiles

48.4%

Top Mngmt

14.8%

Snr Mngmt

34.1%

Mid Mngmt

27.3%

Jnr Mngmt

4.0%

Non Mngmt

19.9%

2012

2011
-

Non management increase is due to the high number of financial advisers who
participated in the survey

48.9%

Sample Size : 212

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MEIP Survey


August 2012

Top
management
(CEO, CIO or
board director,
General
Manager)


14.8%

Senior
management
(Directors and
Heads of
departments)


34.1%

Middle
management
(Managers)


27.3%

Junior
management
(Assistant
Managers)


4.0%

Non
-
management


19.9%

Demographics

|

Respondents Profiles
-

2012

Current Position

Age group

6.8%

56.3%

21.6%

15.3%

Under 30
30-39
40-49
50 & over
Sample Size 212

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MEIP Survey


August 2012


Demographics

|

Respondents Profile

-

Nationality and country worked in

37.4%

30.7%

4.5%

3.4%

1.7%

1.7%

1.7%

1.7%

1.7%

1.7%

1.1%

1.1%

1.1%

1.1%

1.1%

1.1%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.6%

0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
84.9%

3.9%

3.4%

2.2%

2.2%

1.7%

0.6%

0.6%

0.6%

United Arab…
Saudi Arabia
Bahrain
Kuwait
Oman
Qatar
Jordan
Lebanon
Other
Country worked in

Sample Size 212

GCC

98%

Rest of
the
Middle
East

2%

Area worked in

Nationality

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MEIP Survey


August 2012

Results reporting

The results are reported primarily at the total level and for 2012 only


Insights in to current developments, future asset allocation


trends, best ‘Global Emerging Markets manager’ and key


criteria for selecting external fund managers

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|
MEIP Survey


August 2012

Sample Size : 212

Insights into current developments
|

Thinking about some of the issues that are

facing your business, do the following present an opportunity or a challenge?

49.1%

44.8%

40.1%

45.3%

47.2%

40.1%

44.3%

37.3%

Changing regulations
Oil price volatility
Continuation of Arab Spring
Home country bias of retail investors
Challenge
Opportunity
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|
MEIP Survey


August 2012

Sample Size 212

Investments

|
Your Company or clients’ exposure to various strategies over the next


12 months
-

will it increase, decrease or stay the same?

49.4%

46.2%

43.4%

41.7%

38.2%

32.2%

31.7%

30.5%

28.0%

27.0%

26.5%

25.7%

21.3%

18.3%

17.4%

14.5%

40.9%

42.0%

38.2%

49.7%

41.8%

47.0%

41.3%

51.4%

49.6%

49.4%

58.7%

56.3%

43.3%

56.9%

46.1%

56.4%

9.7%

11.8%

18.4%

8.6%

20.0%

20.8%

27.0%

18.1%

22.4%

23.6%

14.8%

18.0%

35.4%

24.8%

36.5%

29.1%

Equity strategies-Global emerging markets
Fixed interest-Sukuks
Other strategies-Structured products
Fixed interest-Global emerging markets
Alternative strategies-Gold
Alternative strategies-Real estate
Alternative strategies-Private equity
Equity strategies-Shariah compliant equities
Fixed interest-GCC funds
Other strategies-Cash
Alternative strategies-Other commodities
Fixed interest-Global developed markets
Alternative strategies-Hedge fund of funds
Equity strategies-GCC stock exchanges
Alternative strategies-Hedge funds, single strategy
Equity strategies-GCC funds
Increase
Maintain
Decrease
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MEIP Survey


August 2012

Single country
funds (eg China,
Brazil etc)

15.1%

Regional funds (eg
MENA, EMEA etc)

13.2%

Global emerging
market funds

56.6%

Focussed funds (eg
BRIC)

6.3%

Separately
managed

5.7%

Other, please
specify

3.1%

Investments

|
Preferred Route for gaining exposure to emerging markets

Sample Size : 212

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|
MEIP Survey


August 2012

32.8%

23.9%

13.9%

11.1%

9.4%

3.3%

2.8%

2.8%

Past performance
Reputation of company
Investment process
Stability of investment team
Independent fund ratings
Fees
Client support
On the ground sales support from
investment management companies
Level of outsourcing
Influencer
|
What influences you the most when selecting a fund or a fund manager?




Most important in ranked order

Sample Size : 212

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|
MEIP Survey


August 2012

Big influence

16%

Neutral

38%

No influence

37%

Don't
know/not
willing to
answer

9%

Sample Size : 212

Investments

|
Fund Selection Process

3%

9%

18%

17%

53%

Less than 1 year
1-2 years
3 years
5 years
All of the above
Time frame you usually look at when assessing

the past performance record of a fund

Influence of soft commission on

fund selection process

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|
MEIP Survey


August 2012

International Asset Management Section

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|
MEIP Survey


August 2012

Yes

84.8%

No

15.2%

Invest in, or recommend funds and/or strategies
from international asset management companies

Sample Size : 212

International Asset Management

|

Investment habits & historical dealing


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|
MEIP Survey


August 2012

72.9%

70.6%

63.5%

62.9%

54.7%

54.7%

46.5%

41.8%

38.8%

34.1%

33.5%

31.8%

28.8%

28.2%

27.6%

22.9%

20.6%

19.4%

18.2%

17.6%

Blackrock
Franklin Templeton
J P Morgan Asset Man
Fidelity
Schroders
Invesco
HSBC Global Asset Man
Aberdeen
Emirates NBD
Threadneedle
Investec
Baring Asset Man
Pictet Asset Asset Man
Morgan Stanley
PIMCO
BNP Paribas Investment Partners
Amundi
Jupiter
BNY Mellon
Natixis
Sample Size : 170

International Asset Management

|

Historical
dealings
(predominantly active long

only managers) dealt with over the past 18 months.

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|
MEIP Survey


August 2012

72.9%

70.6%

63.5%

62.9%

54.7%

54.7%

46.5%

41.8%

38.8%

34.1%

33.5%

31.8%

Blackrock
Franklin Templeton
J P Morgan Asset
Man
Fidelity
Schroders
Invesco
HSBC Global Asset
Man
Aberdeen
Emirates NBD
Threadneedle
Investec
Baring Asset Man
I
ncluding
Financial Advisers

Sample Size : 170 with financial advisers, 77 excluding financial advisers

64.9%

63.6%

50.6%

42.9%

40.3%

37.7%

37.7%

32.5%

29.9%

23.4%

22.1%

22.1%

Franklin Templeton
Blackrock
Fidelity
J P Morgan Asset…
PIMCO
Schroders
Aberdeen
Invesco
HSBC Global Asset…
Morgan Stanley
BNP Paribas…
Amundi
Excluding
Financial Advisers

International Asset Management

|

Historical
dealings
(predominantly active long

only managers) dealt with over the past 18 months.

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|
MEIP Survey


August 2012

International Asset Management

|

which companies have given you the best support


over the past year
-

Top ranked (1= the best)

23.6%

17.2%

8.9%

7.0%

6.4%

5.1%

3.8%

3.8%

3.2%

2.5%

1.3%

1.3%

1.3%

1.3%

1.3%

1.3%

J P Morgan Asset Man
Franklin Templeton
Blackrock
Natixis
Invesco
Schroders
Aberdeen
Emirates NBD
Fidelity
Russell
Ashmore
BNP Paribas Investment…
Eastspring (Prudential)
Goldman Sachs Asset Man
HSBC Global Asset Man
PIMCO
Sample Size : 212

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|
MEIP Survey


August 2012

International Asset Management

|

which companies have given you the best support


over the past year


Top 2 ranked (1,2)

31.2%

27.4%

19.7%

15.3%

14.0%

13.4%

13.4%

8.3%

7.0%

4.5%

3.8%

3.2%

2.5%

J P Morgan Asset Man
Franklin Templeton
Blackrock
Emirates NBD
Fidelity
Invesco
Schroders
Natixis
Aberdeen
HSBC Global Asset Man
Morgan Stanley
PIMCO
Russell
Sample Size : 212

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|
MEIP Survey


August 2012

Directly from
the asset
management
company, 29.0%

Directly through
an offshore life
platform, 27.5%

Indirectly
through an
offshore life
platform (eg
mirror fund,
29.0%

Indirectly
through a
private bank or
other
proprietary
platf, 14.5%

International Asset Management

|
Accessing funds from international asset

management companies through…


Sample Size 212

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MEIP Survey


August 2012

39.9%

35.5%

8.0%

7.2%

6.5%

2.9%

Morningstar
/OBSR
S&P
Trustnet
Fitch
Lipper
Other
Ranked in position 1 (all those that said yes)

International Asset Management

|

When considering an investment, are fund rating

important? And, which agencies do you use, and value the most?

Yes

87.7%

No

12.3%

Are fund ratings important?

Sample Size 2142

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|
MEIP Survey


August 2012

International Asset Management

|

When considering an investment

which agencies do you use, and value the most


Top ranked? (1= the best)

39.9%

35.5%

8.0%

7.2%

6.5%

2.9%

Morningstar/OBSR
S&P
Trustnet
Fitch
Lipper
Other
Sample Size: 212

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|
MEIP Survey


August 2012

International Asset Management
|
Overall Satisfaction level
with
international

asset
management companies



0.0%

0.0%

6.3%

5.0%

18.2%

17.6%

29.6%

16.4%

5.7%

1.3%

Extremely
unsatisfied 1
2
3
4
5
6
7
8
9
Extremely
satisfied 10
Sample Size 212

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MEIP Survey


August 2012

International Asset Management
|
Overall Satisfaction level
with
regional

asset
management companies which specialise in either GCC
or MENA products



2.6%

3.6%

9.2%

8.2%

15.4%

10.3%

13.3%

7.2%

1.0%

1.0%

Extremely
unsatisfied 1
2
3
4
5
6
7
8
9
Extremely
satisfied 10
Sample Size 214

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|
MEIP Survey


August 2012

International Life Companies Section

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MEIP Survey


August 2012

Yes

63.4%

No

36.6%

Recommend products from ILC

Sample Size : 172

International Life
|
Do you recommend products from international life companies?

28

|
MEIP Survey


August 2012

59.2%

31.1%

8.7%

1.0%

FPI
Zurich International
MetLife Alico
66.3%

16.8%

5.9%

5.9%

3.0%

2.0%

Zurich
International
Royal London 360
FPI
MetLife Alico
Swiss Life
Generali
24.3%

22.3%

20.4%

18.4%

9.7%

4.9%

FPI
Zurich
International
Generali
Skandia
International
MetLife Alico
Royal London 360
51.0%

26.0%

9.4%

8.3%

4.2%

1.0%

Skandia
International
Zurich
International
Generali
FPI
MetLife Alico
Royal London 360
Protection
term

Protection
Whole of Life

Investment products
regular premium, contractual

Investment products
regular premium, non
-
contractual

Sample Size : 108

International Life
|
Which ILC provider is best for …

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|
MEIP Survey


August 2012

International Life
|
Which ILC provider is best for …

39.0%

32.5%

11.7%

6.5%

5.2%

3.9%

1.3%

Zurich
International
Friends Provident
International
Skandia
International
MetLife Alico
Generali
Royal London
360
Swiss Life
Corporate savings

Sample Size : 108

58.8%

22.5%

8.8%

5.0%

2.5%

1.3%

1.3%

Zurich International
FPI
MetLife Alico
Generali
Skandia
International
Royal London 360
Swiss Life
36.9%

16.5%

15.5%

13.6%

7.8%

5.8%

2.9%

1.0%

Skandia…
Zurich…
FPI
Generali
Royal London 360
MetLife Alico
Swiss Life
Hansard
Corporate
Protection

Investment products
lump sum

34.0%

28.2%

14.6%

12.6%

4.9%

2.9%

2.9%

Skandia
International
Zurich
International
Generali
FPI
Royal London 360
MetLife Alico
Swiss Life
Fund range

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|
MEIP Survey


August 2012

36.3%

18.8%

15.0%

11.3%

8.8%

6.3%

2.5%

1.3%

Zurich
International
FPI
Skandia
International
MetLife Alico
Generali
Royal London 360
Hansard
Swiss Life
International Life
|
Which ILC provider is best for …

Sales client support

Sample Size : 108

30.7%

30.7%

19.8%

10.9%

5.0%

3.0%

FPI
Zurich
International
Skandia
International
MetLife Alico
Generali
Royal London 360
Attractive commission terms

31

|
MEIP Survey


August 2012

Sample Size : 105

International Life
|
Do

you
believe
there is room for other international life
companies
to
have


a physical presence in the Middle East?

Yes

70.4%

No

29.6%

Chance for other ILCs to
enter Middle East

16.7%

14.8%

13.0%

11.1%

7.4%

5.6%

3.7%

3.7%

3.7%

22.2%

prudential
standard life
manulife
sunlife
axa
transamerica
allianz
metlife
new york life
Others
Most preferred ILC to enter Middle East
(from those that said yes)

33

|
MEIP Survey


August 2012

59.6%

13.5%

9.6%

7.7%

4.8%

1.9%

On the ground sales
support
Fund manager events
Life company training
events
Company website
Corporate/ social events
Webcasts/ conference calls
Sample Size : 104

International Life
|
Preferred method of interacting with ILC and/or fund managers



Top most important

34

|
MEIP Survey


August 2012

72.4%

9.5%

8.6%

4.8%

2.9%

1.0%

1.0%

Referrals from existing
clients
Telemarketing
Family/ friends
Organising client
seminars
Introductions from
corporate clients
Social media (Linkedin
etc)
PR and advertising
Sample Size : 105

International Life
|
How do you go about securing new clients?

36

|
MEIP Survey


August 2012

Sample Size : 105

International Life
|
In which of the following areas could ILCs look to improve their offering to

a
dvisers?


Top most important

22.6%

21.7%

21.7%

18.9%

15.1%

Digital services, post sales
processing
Digital services, pre sales
processing
Sales skills training
Expanding their fund range
Technical support
37

|
MEIP Survey


August 2012

Sample Size : 105

International Life
|
In relation to the development of life insurance across the GCC countries, do

y
ou think the following areas are opportunities or challenges?

22.1%

17.3%

12.5%

10.6%

8.7%

4.8%

1.0%

33.7%

35.6%

34.6%

30.8%

29.8%

14.4%

6.7%

20.2%

3.8%

15.4%

36.5%

25.0%

32.7%

30.8%

15.4%

35.6%

31.7%

18.3%

33.7%

34.6%

41.3%

8.7%

7.7%

5.8%

3.8%

2.9%

13.5%

20.2%

Understanding of life insurance on the part
of Arab nationals
General volatility of financial markets over
the last three years or so
Regulatory environment
The small scale and lack of capital of most
local insurance (both life and non-life)
companies in the GCC
Political risk across the MENA region in the
wake of the ‘Arab Spring’ of early 2011

Potential for Islamic finance and, in
particular, family Takaful
Large and increasing numbers of
expatriates from South Asia
Major challenge
Challenge
Neutral/No view
Opportunity
Major Opportunity
38

|
MEIP Survey


August 2012

International Life
|
Overall Satisfaction level



0.0%

1.9%

3.8%

3.8%

16.3%

21.2%

21.2%

25.0%

4.8%

1.9%

Extremely
unsatisfied 1
2
3
4
5
6
7
8
9
Extremely
satisfied 10
Sample Size 104