《中欧国际工商学院(CEIBS):2021年全球资产管理中心指数报告(英文版)(47页).pdf》由会员分享,可在线阅读,更多相关《中欧国际工商学院(CEIBS):2021年全球资产管理中心指数报告(英文版)(47页).pdf(47页珍藏版)》请在三个皮匠报告上搜索。
1、 Global Asset Management Center Index Report(2021)CEIBS LUJIAZUI INSTITUTE OF INTERNATIONAL FINANCE September 9,2021 CONTENTS PREFACE.1 EXECUTIVE SUMMARY.4 PREFACE.1 EXECUTIVE SUMMARY.4 PART 1 COMPETITIVENESS OF THE ASSET MANAGEMENT CENTER.7 PART 1 COMPETITIVENESS OF THE ASSET MANAGEMENT CENTER.7 1.
2、1 THE CORE COMPETITIVENESS OF ASSET MANAGEMENT CENTER IS ASSETS UNDER MANAGEMENT.8 1.2 THE GLOBAL ASSET MANAGEMENT CHAINS.9 1.3 THE CORRELATIONS BETWEEN FINANCIAL SYSTEM AND ASSET MANAGEMENT CENTER.10 PART 2 2021 GLOBAL ASSET MANAGEMENT CENTER INDEX(GAMCI).11 PART 2 2021 GLOBAL ASSET MANAGEMENT CENT
3、ER INDEX(GAMCI).11 2.1 RANKINGS.12 RANKINGS OF GLOBAL ASSET MANEGEMENT.12 RANKING IN DTEILD FIELDS.13 2.2 INDICATOR SYSTEM.18 PRINCIPLE OF INDICATOR CHOICE.18 INDICATOR SYSTEM.19 EXPLANATION OF MAIN INDICATORS.22 2.3 ANALYSIS OF INDEX.29 TYPES OF GLOBAL ASSET MANAGEMENT CENTERS.29 LONDON IS DRAGING
4、DOWN BY BREXIT.31 PART 3 CHALLENGES AND OPPORTUNITIES FOR SHANGHAI AND THE GLOBAL ASSET MANAGERS.33 PART 3 CHALLENGES AND OPPORTUNITIES FOR SHANGHAI AND THE GLOBAL ASSET MANAGERS.33 3.1 HOW SHANGHAI STEP INTO LEADING ASSET MANAGEMENT CENTER.34 STRENTH OF SHANGHAI BUILDING GLOBLE ASSET MANAGEMENT CEN
5、TER.34 DISTANCE BETWEEN SHANGHAI AND OTHER LEADING ASSET MANAGEMENT CENTER.34 WHERE ARE SHANGHAIS DEVELOPMENTS MOVE TO.36 3.2 HOW GLOBAL ASSET MANAGERS CAN BENEFIT FROM SHANGHI.40 PENSION FUNDS.40 ESG PRODUCTS.41 ALTERNATIVE ASSETS.43 Global Asset Management Center Index Report(2021)1 PREFACE After
6、30 years of hard work,Shanghai has basically become an international financial center with global influence.According to the deployment of the government,the 14th Five-year Plan for building Shanghai International Financial Center clearly states that Shanghai will continue to promote opening-up and
7、focus on institutional opening-up to further gather global headquarters and functional financial institutions,as well as enhance the function of global resource allocation with building an influential global asset management center.Nowadays,Shanghai has formed a comprehensive financial market which
8、includes stocks,bonds,currencies,foreign exchanges,commodity futures,financial futures,gold,insurance,draft,and trust.Shanghai also has built a series of financial infrastructures,including registration,custody,settlement and clearing,as well as advanced technological means.All provides a solid guar
9、antee for the issuance,trading,pricing and risk management of financial assets.At the end of 2020,Shanghai Stock Global Asset Management Center Index Report(2021)2 Exchange ranked No.3 in the world in terms of stock market capitalization,No.1 in terms of IPO proceeds and No.5 in terms of stock tradi
10、ng volume.The interbank bond market is the second-largest in the world;the Shanghai Gold Exchange is the world largest exchange market for spot gold and crude oil futures market is already the third-largest globally.At the same time,the asset management industry in Shanghai has formed:the Assets und
11、er Management(AuM)in Shanghai accounts for about 1/4 of mainland China,among which the AuM of insurance asset management and mutual funds account for more than 30%separately.29 of the 33 Wholly Foreign-Owned Enterprise Private Fund Managers(WFOE PFM)registered with the Asset Management Association o
12、f China(AMAC)have settled in Shanghai.17 of the worlds top 20 asset managers have set up subsidiaries and expanded their businesses in Shanghai.Still,Shanghai has some shortcomings compared with the mature global asset management centers.According to government,Shanghai will strive hard to basically
13、 build a comprehensive and open asset management hub with high concentration of managerial elements,high internationalization level and relatively complete ecological system,and become an important hub of asset management in Asia Global Asset Management Center Index Report(2021)3 and enter the foref
14、ront list of global asset management centers by 2025.Stones from other mountains can be used to polish jade.CEIBS Lujiazui Institute of International Financial has developed the Global Asset Management Center Index independently,aiming to learn the international experience and track the trend of the
15、 global asset management industry for the goal above by comparing with the worlds leading asset management centers.Global Asset Management Center Index has at least three spots worthy of attention.First,evaluates with the objective data which can be well sourced and shows the neutrality and objectiv
16、ity.Second,highlights the importance of the core indicators,also takes universality into account.Third,open designing for sub-indices improvement and development in the future,which would have guiding value for the sub-industry markets of the asset management industry.Hope to contribute to Shanghai
17、global asset management center construction by providing useful reference for regulators,asset management institutions,asset management service institutions and investors.Global Asset Management Center Index Report(2021)4 EXECUTIVE SUMMARY Global Asset Management Center Index system includes three T
18、iers.Tier 1 distinguishes the business foundation from business performance of asset management.Tier 2 measures the business foundation from four aspects:capital supply(including domestic capital pool and overseas capital inflow),institutional opening-up,talent reserve and underlying assets.And the
19、business performance is measured from four aspects as well:asset management institution,open-end fund,ESG(Environment,Social and Governance)business and alternative assets.Tier 3 reflects specific information by 48 indicators in total,including 46 quantitative indicators that are regularly updated a
20、nd 2 qualitative indicators.In order to show the gap between global asset management centers more clearly,the index carries out statistical evaluation of the indicators above according to eight sub-areas,and sets the score for the top city in each sub-area as 100 points;then convert the score for ot
21、her cities in the same proportion.Last,sets different weights to each sub-area,and sums up to obtain a comprehensive Global Asset Management Center Index Report(2021)5 score.In terms of results,New York topped the list,followed by London and Boston.Even though,London has the gap of nearly 8 points w
22、ith New York,and only 2 points ahead of Boston,which indicates that the strength of the second tier is similar,and a large gap with the first tier.Hong Kong,Singapore,Paris,Los Angeles,Shanghai,Chicago and Tokyo are within a two points score gap,which are in the third tier.In addition,the competitiv
23、eness of the cities such as Luxembourg,Dublin,Toronto,Frankfurt and Zurich are also extremely close.Different asset management centers have different advantages in the eight sub-areas.New York is not prominent in ESG business and alternative asset allocation.European asset management centers such as
24、 Luxembourg and Dublin are the opposite.Shanghai has little competitiveness in many areas except assets supply and underlying assets.Hong Kong stands out in terms of its institutional opening-up and talent pool.According to the ratio of two dimensions of AuM,global asset management centers can be ca
25、tegorized into three types:intermediary,overseas and balanced.A detailed comparison Global Asset Management Center Index Report(2021)6 between Shanghai and leading asset management centers in three types shows that:Shanghai can provide more large-scale capital and underlying assets than Paris;Shangh
26、ai lags far behind Hong Kong in terms of institutional opening-up and talent pool,as well as far behind London and New York in institutional opening-up,talent pool and asset management institutions.Therefore,the path for Shanghai to be global asset management center in coming 5 years is as follows:f
27、irst,guide the leading domestic and foreign asset management institutions to allocate on Chinas green assets;second,promote the in-out flow of capital and talent,develop intermediary services,so as to provide various products and services for global asset management companies in China.Global Asset M
28、anagement Center Index Report(2021)7 PART 1 COMPETITIVENESS OF THE ASSET MANAGEMENT CENTER Global Asset Management Center Index Report(2021)8 1.1 THE CORE COMPETITIVENESS OF ASSET MANAGEMENT CENTER IS ASSETS UNDER MANAGEMENT The core of the competitiveness of the asset management center relies on th
29、e competitiveness of the asset management institutions.The revenue bases of asset management institutions are mainly management fees and performance fees,which are different from each other.Management fees are a fixed percentage of Assets under Management and vary by investment style and asset class
30、,while performance fees depend on the relative asset performance against the benchmark such as a market index.It can be seen that this income structure is entirely dependent on the scale of Assets under Management.Assets under Management(AuM)is the total market value of the portfolio managed by fina
31、ncial institutions on behalf of clients,reflecting both the inflow and outflow of specific funds and the price of assets which fluctuates daily.Capital inflow or appreciation will improve the AuM,while capital outflow or depreciation,and investor reduction will lead to the decline of AuM.For example
32、,the growth of global AuM was mainly driven by the growth of market value,especially by the rise of stock market from the second Global Asset Management Center Index Report(2021)9 half of 2020 to the first half of 2021.1.2 THE GLOBAL ASSET MANAGEMENT CHAINS Financial markets are essentially global i
33、n nature rather than regional.The asset management supply chain is also global,as asset management institutions tend to delegate their portfolios to managers overseas in order to gain local advantages.Some countries provide capital(demand of asset management),some provide the market(supply of asset
34、management),and some provide the platform connecting supply and demand.As a result,there would be two characteristics of asset management industry inevitably.First,the demand of the asset management often comes from overseas in small countries,while the capital supply of big countries is mainly from
35、 domestic.Second,there are different conditions on the demand side,supply side and intermediary side of asset management business.In addition to abundant capital,the demand side also needs free capital flow.The supply side should have high-quality assets and a wide range of products.The intermediary
36、 should offer lower investment barriers and better infrastructure.Global Asset Management Center Index Report(2021)10 1.3 THE CORRELATIONS BETWEEN FINANCIAL SYSTEM AND ASSET MANAGEMENT CENTER From the point of investment and financing,the international financial center has the advantage in two chann
37、els:bank and capital market.But financial systems differ from country to country.According to the World Bank,major Asian countries such as China and Japan as well as western European countries such as Germany and France set up financial systems dominated by commercial banks(indirect financing),while
38、 those of the United States and United Kingdom are dominated by capital markets(direct financing).In the global scope,the main body of asset management institutions is investment bank that mainly serve the capital market,which is the fundamental feature that distinguishes them from commercial banks.
39、Therefore,international financial centers dominated by capital markets are often the leading asset management centers,while those dominated by the banking system developed relatively slower.Global Asset Management Center Index Report(2021)11 PART 2 2021 GLOBAL ASSET MANAGEMENT CENTER INDEX(GAMCI)Glo
40、bal Asset Management Center Index Report(2021)12 2.1 RANKINGS RANKINGS OF GLOBAL ASSET MANEGEMENT In terms of results,New York topped the list,followed by London and Boston.Even though,London has the gap of nearly 8 points with New York,and only 2 points ahead of Boston,which indicates that the stre
41、ngth of the second tier is similar,and a large gap with the first tier.Hong Kong,Singapore,Paris,Los Angeles,Shanghai,Chicago and Tokyo are within a two points score gap of each other,which are in the third tier.In addition,the competitiveness of cities such as Luxembourg,Dublin,Toronto,Frankfurt an
42、d Zurich are also extremely close.Table 2-1 Global Asset Management Center Ranking(2021)Ranking City Ranks 1 New York 96.7 2 London 89.2 3 Boston 87.1 4 Hong Kong 84.7 5 Singapore 84.6 6 Paris 84.1 7 Los Angeles 83.8 8 Shanghai 83.7 9 Chicago 83.0 10 Tokyo 82.8 11 Luxembourg 81.9 12 Dublin 81.4 13 T
43、oronto 81.1 14 Frankfurt 80.9 15 Zurich 80.3 Global Asset Management Center Index Report(2021)13 Figure 2-1 Global Asset Management Center Ranking(2021)RANKING IN DTEILD FIELDS Different asset management centers have different advantages in the eight sub-areas.New York is not prominent in ESG busine
44、ss and alternative asset allocation.European asset management centers such as Luxembourg and Dublin are the opposite.Shanghai has little competitiveness in many areas except assets supply and underlying assets.Hong Kong stands out in terms of its institutional opening-up and talent pool.020406080100
45、15 Zurich14 Frankfurt13 Toronto12 Dublin11 Luxemberg10 Tokyo9 Chicago8 Shanghai7 Los Angeles6 Paris5 Singapore4 Hong Kong3 Boston2 London1 New YorkCapital SupplyIntitional Opening-UPTalent ReserveUnderlying AssetsAsset Managers,Open-ended FundESG Business,Alternative AssetsGlobal Asset Management Ce
46、nter Index Report(2021)14 Table 2-2 Global Asset Management Center Ranking in Sub-areas(2021)Ranking Capital Supply(10%)Institutional Opening-up(10%)Talent Reserve(20%)Underlying Assets(20%)Asset Manager、Open-end Fund(30%)ESG Business、Alternative Asset(10%)1 New York Hong Kong New York New York New
47、York Luxemburg 2 Chicago Dublin Hong Kong London Boston Paris 3 Boston London Singapore Shanghai London Dublin 4 Los Angeles Singapore London Chicago Paris Frankfurt 5 Shanghai New York Boston Frankfurt Frankfurt Singapore 6 Tokyo Chicago Los Angeles Luxemburg Los Angeles London 7 Singapore Boston S
48、hanghai Tokyo Tokyo New York 8 Toronto Los Angeles Paris Hong Kong Zurich Hong Kong 9 Hong Kong Zurich Tokyo Singapore Hong Kong Zurich 10 Paris Luxemburg Chicago Paris Singapore Toronto 11 London Tokyo Toronto Toronto Frankfurt Frankfurt 12 Frankfurt Frankfurt Frankfurt Dublin Chicago Boston 13 Dub
49、lin Toronto Luxemburg Zurich Shanghai Tokyo 14 Luxemburg Paris Dublin Boston Dublin Shanghai 15 Zurich Shanghai Frankfurt Los Angeles Luxemburg Chicago Note:1.Capital supply and“Institutional Opening-up are national indicators,New York,Chicago,Boston and Los Angeles rank the same with the same score
50、.Rank them for clarity only.2.Data in brackets are weights.Global Asset Management Center Index Report(2021)15 Figure2-2 Global Asset Management Center Ranking in Sub-areas(2021)Capital Supply 708090100 Zurich Luxemberg Dublin Frankfurt London Paris Hong Kong Toronto Singapore Tokyo ShanghaiNew York
51、,Boston,Chicago,Los AngelesInstitutional Opening-up 707580859095100 Shanghai Paris Toronto Frankfurt Tokyo Luxemberg ZurichNew York,Boston,Chicago,Los Angeles Singapore London Dublin Hong KongGlobal Asset Management Center Index Report(2021)16 Talent Reserve Underlying Assets 707580859095100 Frankfu
52、rt Dublin Luxemberg Zurich Toronto Chicago Tokyo Paris Shanghai Los Angeles Boston London Singapore Hong Kong New York707580859095100 Los Angeles Boston Zurich Dublin Toronto Paris Singapore Hong Kong Tokyo Luxemberg Frankfurt Chicago Shanghai London New YorkGlobal Asset Management Center Index Repo
53、rt(2021)17 Asset Management Managers and Open-end Fund 6065707580859095100 Luxemberg Dublin Shanghai Chicago Frankfurt Singapore Hong Kong Zurich Tokyo Los Angeles Toronto Paris London Boston New YorkESG Business and Alternative Assets 6065707580859095100 Chicago Shanghai Tokyo Boston Los Angeles To
54、ronto Zurich Hong Kong New York London Singapore Frankfurt Dublin Paris LuxembergGlobal Asset Management Center Index Report(2021)18 2.2 INDICATOR SYSTEM PRINCIPLE OF INDICATOR CHOICE The index is compiled with the following five principles:First,highlight the AuM which is the core of the asset mana
55、gement center in weight design.Second,highlight the infrastructure functions of exchanges to reflect the different characteristics of the asset management industry from other financial sectors,that is,to serve the real economy through capital markets.Third,consider the evaluation results of horizont
56、al comparison and dynamic comparison,finding the main factors that promote or hinder the development of global asset management center.Fourth,give consideration to both growth and scalability of index research in the future,the sample cities should be comprehensively reflected from all angles as far
57、 as possible.Fifth,the index compilation method is transparent and simple.Real data using the quantitative indicators which can be examined and traced can avoid the fuzziness and intractability of the index.Global Asset Management Center Index Report(2021)19 Government and asset management instituti
58、ons can conduct collaborative research on relevant issues and lay a solid foundation for the scientific development of the index.Based on the principles above,the specific methodology of adopting indicators for this index includes the following four points:indicators should come from reliable instit
59、utions and have with mature methodology;Indicators are steadily available through public channels;Indicators are updated regularly,at least once a year.INDICATOR SYSTEM Global Asset Management Center Index system includes three Tiers.Tier 1 distinguishes the business foundation from business perform
60、ance of asset management.Tier 2 measures the business foundation from four aspects:capital supply(including domestic capital pool and overseas capital inflow),institutional opening-up,talent reserve and underlying assets.And the business performance is measured from four aspects as well:asset manage
61、ment institution,open-end fund,ESG(Environment,Social and Governance)business and alternative assets.Tier 3 reflects specific information Global Asset Management Center Index Report(2021)20 by 48 indicators in total,including 46 quantitative indicators that are regularly updated and 2 qualitative in
62、dicators.In order to show the gap between global asset management centers more clearly,Global Asset Management Center Index carries out statistical evaluation with SPSS to the indicators above by 8 sub-areas,and sets the score for the top city in each sub-area as 100 points;then convert the score fo
63、r other cities in the same proportion.Last,sets different weights to each sub-area,and sums up to obtain a comprehensive score.Figure 2-3 Global Asset Management Center Index(2021)Global Asset Management Center Index Report(2021)21 Table 2-3 Global Asset Management Center Index(2021)Tier 1 Tier 2 Ti
64、er 3 Sources BUSINESS FOUNDATION Capital supply(Domestic Capital pool and overseas capital inflow)Total deposit CEIC Insurance premium Private pension funds Foreign reserve Sovereign wealth funds SWF Public pension funs Balance payment account-non reserve financial account CEIC Balance payment accou
65、nt-financial and insurance service trade GDP growth rate(current year)IMF Average long term government bonds yields BLOOMBERG Major stock index yield(1 year)Institution opening-up Financial system WORLD BANK Legal system FDI Restrictiveness Index-financial industry OECD FDI Restrictiveness Index-bus
66、iness industry Capital gains tax rate KPMG Corporate tax rate Talent Reserve Number of university which economy and econometrics in top 100 of QS QS Number of employee in financial industry BUREAU OF STATISTISC Number of employed in Finance/Number of employed in tertiary industry Average salary in f
67、inancial industry/Average salary Individual income tax rate KPMG Underlying Assets Number of listed stocks WEF Number of listed bonds Number of listed funds Number of derivative Value of stock trading Outstanding of debts Value of exchange bonds trading Value of listed funds trading Value of futures
68、 and options trading Open position of futures and options Value of OTC foreign exchange derivatives trading BIS Value of OTC interest rate derivatives trading Global Asset Management Center Index Report(2021)22 EXPLANATION OF MAIN INDICATORS Business Foundation(1)Capital for asset management comes f
69、rom bank deposits,insurance,pensions and foreign exchange reserves.And capital flows freely within a country.(2)The balance of international payments account is divided into current account and capital and financial account.Among them,the financial and insurance services account and the non-reserve
70、Table 2Table 2-3 3(continued(continued)GlobalGlobal Asset Management Center Index(2021)Asset Management Center Index(2021)Tier 1 Tier 2 Tier 3 Sources BUSINESS PERFORMANCE Asset managers Total AuM of top 10 local asset managers ASSET MANAGERS Number of local asset managers which ranking global top 5
71、0 Total number of branches of global top 50 asset managers in the sample city AuM locally in the sample city REGULATORS Open-ended funds AuM IIFA Number of funds Market capitalization of ETFs WEF Number of ETFs Value of ETFs trading ESG products Number of ESG ETF Number of ESG funds Number of ESG bo
72、nds in stock exchange Alternative assets AuM IIFA Number of funds Global Asset Management Center Index Report(2021)23 financial account mainly reflect the net inflow of foreign capital.(3)The drive of capital inflow mainly comes from the expectation of a countrys economic growth and the onshore/offs
73、hore interest rate spread,which is reflected in the expected GDP growth rate,long-term Treasury bond yield and stock yield.(4)According to the research,the common law system would be better for the development of capital market which is closely related to the asset management business than the civil
74、 law system.Therefore,the financial system dominated by capital market is more conducive to the development of the asset management center than by banks.(5)The FDI Restrictiveness Index in financial sector and business sector are assigned by OECD with a range of 0-1.The higher the value,the higher t
75、he degree of control of capital flows.Capital inflow is positively correlated with the AuM,which means the higher the FDI Restrictiveness Index is,the more negative the impact on the asset management center is.(6)Considering the differences in industrial structure and currency among the sample citie
76、s,the number of people employed Global Asset Management Center Index Report(2021)24 in the financial industry is divided by the number of people in the tertiary industry,and the average salary in the financial industry is divided by the average local salary to eliminate the relevant influence.(7)Ass
77、et management products with more scale usually have higher market trading volume and more liquidity.Therefore,the trading volume of exchange(stocks,bonds,futures)and off-exchange(foreign exchange derivatives,interest rate derivatives)comprehensively reflects the supply capacity of the underlying ass
78、ets of the asset management center.Business Performance(8)The AuM and global ranking of the local leading asset management institutions is the core of a global asset management center,as well as the number of local branches of the global leading asset management institutions.(9)Currently,the proport
79、ion of open-end funds in the world is as high as over 90%,the quantity and net assets of open-end funds are important indicators of asset management center.Global Asset Management Center Index Report(2021)25(10)ESG has become an important field for the sustainable development of the global economy,a
80、nd ESG financial products have accelerated expansion since the pandemic in 2020,which is the main innovation direction of the asset management industry globally.(11)In the process of economic recovery,the traditional investment market has appeared a series of problems,such as high valuation,limited
81、correlation between fixed income and equities,bond yields continue to fall and risk asymmetry.More and more investment strategies have turned to AID(Alpha,Income and Diversity)investment which has become the indispensable to the global investors portfolios to pursuing excess returns.Global Asset Man
82、agement Center Index Report(2021)26 Figure 2-5 Tax rate%(2020)Source:KPMG 0000Corporate Tax Rate%Individual Income Tax Rate%Capital Gains Tax Rate%(R)Figure 2-4 FDI Restrictiveness Index in finance and business(2020)Source:OECD 00.050.10.150.20.2500.010.020.030.040.050.060.070.
83、08FDI Restrictness-Financial Industy(L)FDI Restricness-Business(R)Global Asset Management Center Index Report(2021)27 Figure 2-7 Average Salary in Finance/Average Salary in City%(2020)Source:Bureau of Statistics in each city 0300Figure 2-6 Employed in Finance/Employed In tertiary Industry
84、%(2020)Source:Bureau of Statistics in each city 055Global Asset Management Center Index Report(2021)28 Figure 2-8 AuM and quantities of local asset managers(2021)Source:Asset managers 02468025Unit:$100 tnTotal AuM of top 10 local asset managersFigure 2-9 Branches of global top
85、50 asset managers in asset management centers(2021)Source:Asset Managers 8293030301020304050Los AnglesBostonChicagoLuxembergFrankfurtDublinZurich ParisTorontoShanghaiSingaporeTokyoHong KongLondonNew YorkGlobal Asset Management Center Index Report(2021)29 2.3 ANALYSIS OF INDEX T
86、YPES OF GLOBAL ASSET MANAGEMENT CENTERS From the two dimensions of the AuM,there is a huge difference between the local AuM(including local asset managers and global managers)and the global AuM of the local asset managers.Based on the ratio of two kinds of AuM,the sample global asset management cent
87、ers can be roughly divided into three categories:Luxembourg,Singapore and Hong Kong with a ratio of more than 3.Paris,Toronto and Zurich have ratios below one.The remaining cities are in the third category,with a ratio between 1 and 3.Figure 2-10 AuM comparison in two dimensions(2021)Note:Luxembourg
88、 has a ratio of 98.3,which is not shown in the chart.Source:Regulators,Asset managers Global Asset Management Center Index Report(2021)30 Intermediary asset management center By the end of 2020,the AuM of Luxembourg,Hong Kong and Singapore was$5.9 trillion,$1.2 trillion dollars and$2.5 trillion resp
89、ectively,while the AuM of the top 10 local asset managers were only$0.06 trillion,$0.2 trillion and$0.3 trillion respectively.It shows that the capital owners of asset management are mainly from overseas,while the center can provide abundant asset management products and services locally,making it a
90、 typical intermediary asset management center.Overseas asset management center At the end of 2020,Paris,Toronto and Zurich had$5.0 trillion,$2.2 trillion and$1.7 trillion of asset management respectively,while the AuM of the top 10 local asset managers had$7.0 trillion,$4.2 trillion and$6.6 trillion
91、 respectively.This shows that the local asset managers are skillful at investment service,though the vitality of the local capital market is relatively limited,and the asset managers mainly focus on overseas.Balanced asset management center London,Frankfurt,Tokyo and Dublin had$11tn,$4.7tn,$6.4tn an
92、d$3.8tn respectively at the end of 2020,while the AuM Global Asset Management Center Index Report(2021)31 of the top 10 local asset managers had$6.6tn,$2.6tn,$4.7tn and$1.4tn respectively.The AuM in the local market is close to that of overseas markets shows that capital supply and capital market ar
93、e similar scale.LONDON IS DRAGING DOWN BY BREXIT The index concludes that London is not in the top tier of global asset management centers for two reasons:First,from the point of view of the supply of high-yield market,the overall risk of UK market is lower,and provides small profit margins than eme
94、rging economies.As a result,UK leads the world in commercial banking and foreign exchange trading business,but it does not dominate the overseas business of multinational investment banks.For example,announced by Goldman Sachs group in 2020,the proportion of UK in its overseas business has dropped t
95、o less than 10%,which is lower than the Chinese market(including the mainland,Hong Kong,Macao and Taiwan).Second,in terms of the intermediary business,the negative impact of Brexit on London is already beginning to show.Global Asset Management Center Index Report(2021)32(1)Labor mobility barriers we
96、aken Londons human capital.Under the Brexit trade arrangement,current EU rules on free flow of labors no longer apply to UK and vice versa.About 1 million EU citizens were living in London at the end of 2020,with about 10%working in finance,10%in business and professional fields.(2)London stock mark
97、et has shrunk dramatically.Trading volumes in euro-denominated shares on the London exchange have fallen by 50 per cent since the first trading day of 2021 compared with the same period last year,and trading in the shares of several large multinationals has shifted to other European Union bourses,no
98、tably Paris,Amsterdam and Frankfurt.(3)Assets are transferred by multinational financial institutions to the EU.As the Brexit agreement only involves trade in goods,UKs financial services industry has lost its free operation right in the EU market,and negotiations on the UK-EU financial services tra
99、de are still in progress.At the same time,as EU regulators restrict EU companies and investors from buying the services of financial institutions outside the EU(including possibly restricting non-EU asset managers from managing EU funds),transnational financial institutions are moving one after anot
100、her.Global Asset Management Center Index Report(2021)33 PART 3 CHALLENGES AND OPPORTUNITIES FOR SHANGHAI AND THE GLOBAL ASSET MANAGERS Global Asset Management Center Index Report(2021)34 3.1 HOW SHANGHAI STEP INTO LEADING ASSET MANAGEMENT CENTER STRENTH OF SHANGHAI BUILDING GLOBLE ASSET MANAGEMENT C
101、ENTER First of all,Shanghai has great advantages in capital supply and underlying assets due to Chinas great economic power especially in term of scale.Chinas bond yield and the long-term appreciation trend of RMB will become the main driving force of overseas capital inflow.Second,as the global pan
102、demic continues,Chinas prevention measures have greatly attracted the return of overseas talent.If the pilot reform on tax rates is promoted,it will significantly increase the pool of talent and internationalization of Shanghais asset managers.DISTANCE BETWEEN SHANGHAI AND OTHER LEADING ASSET MANAGE
103、MENT CENTER According to the evaluation of 8 detailed fields,Shanghai has obvious deficiencies in institutional open-up,asset management Global Asset Management Center Index Report(2021)35 institutions and ESG business.First,Chinas financial system is dominated by banks(indirect financing)and the ci
104、vil law system in terms of law.Compared with the financial system dominated by capital markets(direct financing)and the Common law system,less support is given to the development of the asset management industry.In addition,according to the data of OECD,although China has accelerated the opening of
105、its financial industry in recent years,the FDI control on the financial industry and business is still relatively strict,capital gains tax rates and corporate tax rates are also much higher than in smaller economies such as Hong Kong,Singapore and Luxembourg.Second,Shanghai has lower aggregation of
106、global asset managers both in terms of headquarters and branches.The AuM of top 10 shanghai-based asset managers just over$2,000bn,compared with$23tn in New York and$6,600bn in London.None of the Shanghai-based asset managers are ranked in the top 50 in the world,compared with 10 in New York and 6 i
107、n London.The aggregation of branches is a little bit lower too.Within Asia,31 of the worlds top 50 asset managers have branches in Shanghai,compared with 37 in Hong Kong,36 in Tokyo and 33 in Singapore.Global Asset Management Center Index Report(2021)36 According to statistics,overseas large asset m
108、anagers in Asia usually choose two cities to land;Tokyo is relatively independent,while Singapore and Hong Kong are strong substitutions to Shanghai.Third,Shanghais innovation business is still in the early stage of development both in quantity and scale.For example,although there are more than 1,20
109、0 ETFs in Shanghai Stock Exchange,there are only 10 ETFs relative in ESG,far less than those in Europe and the United States.The allocation ratio of alternative assets in Shanghais public funds is not low(about 10%compared with 5.8%in Hong Kong,21.2%in Singapore and 16.3%in Dublin)but still small in
110、 terms of AuM.WHERE ARE SHANGHAIS DEVELOPMENTS MOVE TO We compare Shanghai with the leading asset management centers in 3 types to find the way Shanghais asset management business develops probably.Shanghai has similar comprehensive strength with even more capital supply and underlying assets than P
111、aris.There is a big gap between Shanghai and Hong Kong in institutional opening-up and talent reserve.Shanghai lags far Global Asset Management Center Index Report(2021)37 behind London and New York in institutional opening-up,talent reserve and asset managers.In the future,Shanghai may:(1)Promote t
112、he innovation of green asset management products,guide domestic and foreign leading asset managers to allocate on Chinas green assets so as to serve Chinas Two-Cycle strategy;(2)Promote in-out capital flow and talent flow,develop intermediary services and become an important platform for global asse
113、t allocation;(3)Expand the overseas distribution of Chinese financial groups and provide sustainable overseas investment services for domestic pension funds,sovereign wealth funds,insurance companies,banks and individuals.Global Asset Management Center Index Report(2021)38 Figure 3-1 Shanghai compar
114、e with other leading asset management centers(2021)Global Asset Management Center Index Report(2021)39 Global Asset Management Center Index Report(2021)40 3.2 HOW GLOBAL ASSET MANAGERS CAN BENEFIT FROM SHANGHI PENSION FUNDS Pension funds in the field of sustainable investment focus on the public pen
115、sion funds.In the process of global economic recovery,public pension funds have become an important capital owner.For example,infrastructure investment matches the investment cycle,investment capacity and investment demand of pension funds.In 2020,pension fund investments in infrastructure continued
116、 to grow,including renewable energy,agricultural and industrial properties(including warehouses,industrial plants and logistics centers).By the first half of 2021,pension assets explicitly linked to ESG were close to$20tn,or 40 per cent of total global pension assets which set portfolios rarely inve
117、st in developing markets though.China is the worlds second largest economy and the largest developing country,the national household balance sheets more than$70 trillion,GDP topped RMB 100 trillion,but the pension wealth reserves of about RMB 12 trillion,only 10%of GDP,which still has larger distanc
118、e compare with the average proportion of OECD countries as high as 80%.Pension fund and capital market Global Asset Management Center Index Report(2021)41 are highly matched since they are both long-term.The introduction of pension funds will greatly increase the proportion of institutional investor
119、s and improve the structure of Chinas capital market.ESG PRODUCTS According to UNCTAD,there were 552 ESG ETFs globally in 2020,attracting about$300bn inflow.From January to August 20211,the global ESG ETF net inflow reached$100 bn,and the number of products increased to 726,involving nearly 2,000 li
120、sted companies.Total assets have reached$325 bn,as well as the net inflow has exceeded the level of the whole year last year.Even though,from the perspective of regional distribution,the development of ESG ETF is not balanced.Backed by legislation to shift to a low-carbon economy in the EU and stron
121、g demand for big Tech stocks in Europe,70 per cent of global ESG ETFs are set up in Europe,followed by North America at about 20 per cent and less than 10 per cent elsewhere.ESG ETF inflows in Europe reached$65.6 bn in the January-August period,accounting for 50 percent of total ETF inflows in Europ
122、e.ESG ETFs account for more than 1 Trackinsight,https:/ Global Asset Management Center Index Report(2021)42 16 per cent of total ETF turnover on Xetra,Frankfurts electronic trading platform,compared with 6%in 2020,according to Deutsche Borse.Assets in its ESG ETF reached$160bn,up 219%year on year.Mo
123、reover,Luxembourg is the largest single host country,holding nearly 30 per cent of the global market by assets.Compared with Europe and the US,developing countries account for only 3%of ESG ETFs and only 5%of the world by products volume.But emerging economies,represented by China,have become import
124、ant players in a range of SDG areas,such as pharmaceuticals and renewable energy,with significant growth potential.About$600 bn of ESG bonds were issued globally in 2020.China is the worlds fourth largest market for green bond issuance,with a total financing volume of about$15 bn,but less than a qua
125、rter of the U.S.($61.5 billion)and half of France($37 billion).At the same time,in the social bond and sustainable bond market Table 3-1 AuM of ESG ETF in Europe and US(2021)2021(Jan-Aug)2021(Jan-Aug)ESG ETFESG ETF share of share of ETF ETF AuM share Net inflow share EuropeEurope 13%50%USUS 2%6%Sour
126、ce:REUTERS Global Asset Management Center Index Report(2021)43 product issuance has not entered the global forefront.ALTERNATIVE ASSETS The recovery has seen a series of problems in traditional investment markets,such as overvalued,limited correlations between fixed income and equities,persistently
127、low bond yields and asymmetric risk.More and more investment strategies have turned to AID(Alpha,Income and Diversity)investment for pursuing excess returns.These alternative investments have become integral to the portfolios of global investors.For example,in basic assets such as core physical asse
128、ts,Figure 3-3 Alternative Asset Allocation in Global Asset Management Centers%(2021)Figure 3-3 Alternative Asset Allocation in Global Asset Management Centers%(2021)Note:Data in Shanghai is the alternative assets ratio in public funds.Source:Asset managers,Security Regulators.Global Asset Management
129、 Center Index Report(2021)44 investors have access to stable cash flows generated by long-term contracts that will grow with inflation.Traditional bond yields have been historically low during the pandemic,but yields on core real assets have remained stable and are significantly overpriced relative
130、to fixed income assets.When monetary policy is normalized,its risk premium will be further compressed.But with rising interest rates and rising inflation,there is still room for yields in core real assets,even as bond yields rise.As a result,yield-seeking investors are increasingly allocating capita
131、l to private infrastructure,with high-quality core property particularly attractive and REITs fast becoming a standard part of asset allocation for managers.Though REITs has more than 60 years of development history in the international capital market,it is still a new thing for the domestic capital
132、 market.According to regulations,Chinas infrastructure public offering REITs are listed and traded on the stock exchange.Currently,Shanghai Stock Exchange has 6 REITs only.In the future,it is necessary for Shanghai to follow the national strategy closely,focus on high-quality projects,promote actively more products to be listed,and give full play to the intermediary function of the asset management industry to connect investors with the real economy.