Calastone – Enabling Distribution · IA Target ed Absolut e Ret urn Risk 2 : SD 0.04 GB00B703Z S07 IA UK All Companies Risk 3 : SD 0.12 GB00B7T0G907 IA UK All Companies Risk 4 :

Distribution trendsEdward Glyn, Global Head of Relationship Management, Calastone

© 2017 Calastone Limited

Client business drivers


• Reducing pool of rich, predictable, easy-to-service clients

• ‘Tech’ savvy, financially challenged, emerging generation

• Multi-channel client centric digital distribution

• Increasing channel competition and new entrants

• Focus on TCO across the chain

• Real time data (Client, Market, Regulation)

Where is data being harnessed to its fullest extent?


What are people buying?

What are people searching for?

What are people sharing?

The outsiders are here…

Yu’e Bao Money Market Fund

• App based fund launched in 2013 by Alibaba via Alipay

• 1 Yuan min. deposit, avg. investment 4,000 Yuan

• c.324m customers – mostly rural, low income, 20-30 year olds

• 1.4 trillion Yuan ($210bn) AUM

• Accounts for 28% of China’s money-market funds


The Asset Management industry

is yet to fully harness

the huge potential of data



Distribution TrendsProvided by Calastone


The network-effect


Metcalfe’s Law:

“The value of a network is proportional

to the square of the number of participants”

What can the Australian Managed Fund Industry learn from a year of market volatility?


What was the impact of the Brexit Referendum and Australian Election on Australian Managed Funds






What was the impact of the US Election on Australian Managed Funds?


What was the impact of the US Election on Australian Managed Funds?


What was the impact of the US Electionon Australian Managed Funds?


Profiling distributor countries based on order value


0-19

19-69

39-83

83-149

149-257

257-449

449-709

709-1067

1067-1618

1618-2371

2371-3358

3358-4749

4749-6368

6368-8870

8870-12k

12k-17k

17k-26k

26k-44k

44k-95k

95k+

#Orders

OrderSize

GrandTotal

Australia: Institutional and High Net Worth


Taiwan: Trading mentality

0-13

13-39

39-83

83-149

149-257

257-449

449-709

709-1067

1067-1618

1618-2371

2371-3358

3358-4749

4749-6368

6368-8870

8870-12k

12k-17k

17k-26k

26k-44k

44k-95k

95k+

#Orders

OrderSize

Taiwan


Hong Kong: Retail and High Net Worth

0-13

13-39

39-83

83-149

149-257

257-449

449-709

709-1067

1067-1618

1618-2371

2371-3358

3358-4749

4749-6368

6368-8870

8870-12k

12k-17k

17k-26k

26k-44k

44k-95k

95k+

#Orders

OrderSize

HongKong


Eastern Europe: New retail investors


Risk profiles based on price volatility


-

10.00

20.00

30.00

40.00

50.00

60.00

04/01/20

16

18/01/20

16

01/02/20

16

15/02/20

16

29/02/20

16

14/03/20

16

28/03/20

16

11/04/20

16

25/04/20

16

09/05/20

16

23/05/20

16

06/06/20

16

20/06/20

16

04/07/20

16

18/07/20

16

01/08/20

16

15/08/20

16

29/08/20

16

12/09/20

16

26/09/20

16

10/10/20

16

24/10/20

16

07/11/20

16

21/11/20

16

05/12/20

16

19/12/20

16

Risk1:SD0.01GB00B5KKCX12IATargetedAbsoluteReturn

Risk2:SD0.04GB00B703ZS07IAUKAllCompanies

Risk3:SD0.12GB00B7T0G907IAUKAllCompanies

Risk4:SD0.55GB0033874768IAAsiaPacificExcludingJapan

Risk5:SD0.87GB00B5STJW84IAEuropeExcludingUK

Risk6:SD3.79LU0173614495IAChina/GreaterChina

Distribution patterns by price volatility – High Net Worth


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Distributor1

Distributor2

Distributor3

Distributor4

Distributor5

Distributor6

Distributor7

Distributor8

Distributor9

Distributor10

Distributor11

Distributor12

Distributor13

Distributor14

Distributor15

ExtremelyHigh VeryHigh High Low VeryLow ExtremelyLow

Distribution patterns by price volatility – Retail


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Distributor1

Distributor2

Distributor3

Distributor4

Distributor5

Distributor6

Distributor7

Distributor8

Distributor9

Distributor10

Distributor11

Distributor12

Distributor13

Distributor14

Distributor15

ExtremelyHigh VeryHigh High Low VeryLow ExtremelyLow

Demographic profile show a rational market…


…but do we know who’s holding the most volatile funds?


Can we predict whether a new fund launch will be successful based on the first few days?


Conclusions


Disclaimer


The material in this presentation has been prepared by Calastone Limited (Company number 6892983 registered in

England & Wales) (“Calastone”) and has been compiled from sources believed to be reliable. However Calastone gives

no warranties, express or implied, representations or undertakings that the information is complete, accurate, or fit for a

particular purpose. All such warranties are expressly disclaimed and excluded.

Neither Calastone or any representative, agent or employee of Calastone shall be liable to a viewer of this presentation

or to any third party for any loss, damage or injury arising out of the information in this presentation, or from the actions

taken or not taken in response to any such information. The inclusion in this presentation of information from third party

companies or links to websites of such companies does not give or imply any recommendation, warranty,

representation or undertaking whatsoever by Calastone about such information

Calastone, CTN and the logo are registered trademarks of Calastone Limited.

© Calastone Limited. All rights reserved

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Calastone – Enabling Distribution · IA Target ed Absolut e Ret urn Risk 2 : SD 0.04 GB00B703Z S07 IA UK All Companies Risk 3 : SD 0.12 GB00B7T0G907 IA UK All Companies Risk 4 :