UK Investment Management in 2005

• EMU and its implications
  
• Consolidation
  
• Products
  
• Customers
  
• Distribution and marketing
  
• New entrants
  
• The institutional market

1.0 Introduction

• Summary
  
• 1.1 Aims, scope and methodology
  
  • Aims and scope
    
  • Methodology
  
  
  
• 1.2 Glossary
  
  • 401(k) investment plans
    
  • AITC
    
  • AUTIF
    
  • Actuary
    
  • Actuarial valuation
    
  • Auditor
    
  • Brand partner
    
  • Capital gearing
    
  • Defined benefit schemes
    
  • Defined contribution schemes
    
  • Discount
    
  • E-commerce
    
  • EMU
    
  • Equities
    
  • Financial Services Authority
    
  • Financial Services Act 1986
    
  • Fixed-interest security
    
  • Gearing
    
  • Group personal pensions
    
  • Growth stocks
    
  • Internet service providers (ISPs)
    
  • Investment trust
    
  • ISA
    
  • LIFFE
    
  • LSE
    
  • Minimum Funding Requirement
    
  • National Savings
    
  • Net asset value
    
  • OEIC
    
  • OPRA
    
  • Partnership marketing
    
  • Passive management
    
  • PEP
    
  • Pension scheme trustee
    
  • Pooled pension fund
    
  • Set-top box
    
  • UCITS
    
  • Unit trust
    
  • Tessa
    
  • Tracker fund
    
  • Wealthy individuals subgroups

2.0 Emu and its implications

• Summary
  
• Introduction
  
• 2.1 Impact of EMU on Euro investors
  
• 2.2 A window of opportunity for the UK
  
  • The Euro will be a major driver of the UK fund management industry
    
  • UK fund management industry will adopt a more continental style
    
  • Customers will move away from savings and deposits
  
  
  
• 2.3 Impact of EMU on UK investors
  
  • Investing on a sectoral or industry basis becomes more important
  
  
  
• 2.4 The impact of EMU on the private client market
  
  • European wide benchmarking
    
  • Pan -European fund management expertise is necessary
    
  • Brand will become more important in this market
  
  
  
• 2.5 Impact of EMU on corporate pension funds
  
  • Investment strategies
  
  
  
• 2.6 Frankfurt and London battle for supremacy
  
• 2.7 Conclusions

3.0 Consolidation

• Summary
  
• Introduction
  
• 3.1 Drivers of M&A activity
  
• 3.2 The effect of all this consolidation
  
  • Small players must get bigger or must specialise
    
  • Larger players must globalise
    
  • Three examples of recent M&A activity
  
  
  
• 3.3 Conclusions

4.0 Products

• Summary
  
• Introduction
  
• 4.1 The future of ISAs
  
  • Background
    
  • Implications for fund managers
    
  • Will ISAs be as successful as PEPs?
  
  
  
• 4.2 The unit trust market
  
  • A radical proposal to replace unit trusts
    
  • New funds to cater for distinct customers
    
  • The future of unit trusts
  
  
  
• 4.3 Tracker funds
  
  • Further growth is expected in the tracker fund market
  
  
  
• 4.4 Dramatic changes in store for investment trusts?
  
  • Changes in the charging structure
    
  • Changes in advertising?
    
  • A transformation with the Internet
    
  • Will the sector stay alive?
  
  
  
• 4.5 The era of the OEIC?
  
  • In the next few years OEICs should take off
  
  
  
• 4.6 Stakeholder pensions
  
  • Why do we need stakeholder pensions?
    
  • Impact on the investments market
    
  • The future of stakeholder pensions
  
  
  
• 4.7 The Lifetime Individual Savings Account
  
  • Impact on life assurance companies
  
  
  
• 4.8 Conclusions

5.0 Customers

• Summary
  
• Introduction
  
• 5.1 Groth in the private client market
  
  • Earners are driving growth in this market
    
  • Implications for private client providers
  
  
  
• 5.2 Customer awareness of investment products
  
  • The lack of consumer awareness is apparent
  
  
  
• 5.3 The lack of equity culture in the UK
  
  • The number of UK shareholders has remained fairly stagnant
    
  • Selling the idea of buying shares
  
  
  
• 5.4 Conclusions

6.0 Distribution and marketing

• Summary
  
• Introduction
  
• 6.1 The Internet
  
  • Internet broking should become more popular in the UK
    
  • The framework is already in place
  
  
  
• 6.2 Interactive television
  
  • Consumers will be able to interact with their television in two ways
  
  
  
• 6.3 Is outsourcing the way ahead?
  
  • Outsourcing could be an option for one stop shops
    
  • Branded competitors can also benefit from outsourcing
  
  
  
• 6.4 Marketing
  
  • Partnership marketing could become more important in the next few years
    
  • Brand is key
  
  
  
• 6.5 Conclusions

7.0 New entrants

• Summary
  
• Introduction
  
• 7.1 New entrants in the banking industry
  
  • The trend is for decreasing margins for new entrants
  
  
  
• 7.2 New entrants in UK investment management
  
  • Strong brands will win in the investment management game
    
  • The American invasion is prevalent in the pension fund market
    
  • American companies are also pushing into the retail market
  
  
  
• 7.3 Conclusions

8.0 The institutional market

• Summary
  
• Introduction
  
• 8.1 The occupational pension fund market
  
  • Defined contribution schemes versus defined benefit schemes
    
  • Pension fund managers will deal with clients directly
    
  • Defined contribution customers may have different investment preferences
  
  
  
• 8.2 Changes on the horizon
  
  • Underperformance of the Big Four
    
  • Competitors are knocking on the door
    
  • A different way ahead
  
  
  
• 8.3 Conclusions

Index 1

• Reuters Business Insight

List of Tables

• Table 0.1: Merger and acquisition activity in the past decade
  
• Table 0.2: Corporate pension fund market, 1995-7
  
• Table 0.3: Top five players by funds under management, 1997
  
• Table 0.4: Companies offering ISAs from day one
  
• Table 0.5: Advertising spend in 1999 will be huge
  
• Table 0.6: Retail competitors in the tracker fund market, September 1998
  
• Table 0.7: Retail competitors in the tracker fund market, September 1998 (con'd)
  
• Table 0.8: In six months, OEIC funds under management grew by 87%
  
• Table 0.9: OEIC competitors in September 1998
  
• Table 0.10: OEIC competitors in February 1999
  
• Table 0.11: UK population projections, 1996-2036
  
• Table 0.12: UK population projections, 1996-2036
  
• Table 0.13: Segmentation of UK wealthy individual market by number of individuals
  
• Table 0.14: Number of UK individuals owning shares, 1990-9
  
• Table 0.15: The framework for Internet technology will develop
  
• Table 0.16: Virgin Direct and Marks & Spencer, unit trust sales
  
• Table 0.17: New entrants in banking
  
• Table 0.18: Defined contributions continue to dominate new occupational pensions, 1994-8