Savings and Investments: Market Assessment 2002

The results showed that people still rely on their branch of bank or building society, and that they like to deal with an adviser face-to-face. They still like the concept of the building society. They are not interested in the more complex financial products, nor in the newer distribution channels, unless they are wealthy or young.

Key Note analyses the demographic characteristics of the population, showing that most people do not save very much. Contributions to pensions and life insurance are more than adequate, but it is clear that, for the population as a whole, saving is a very low priority. Only the top 10% appear to save a significant amount. There are significant differences according to age, region and socio-economic group. This report covers the industry, focusing primarily on the UK market.

1. Introduction

• Definition
  
• What Is Saving?
  
• What Is Investment?
  
• Assumptions
  
• The Focus

2. Strategic Overview

• Market Dynamics And Segmentation
  
• Current Status Of The Market
  
• Total Industry Value And Growth
  
• Largest Sector And Market Share
  
• Market With Highest Growth Rate
  
• Market With Lowest Growth Rate
  
• Method Of Distribution
  
• Using New Technology
  
• Table 1: UK Users Of Financial Services On The Internet By Sector (Million And Index 1996=100), 1996-2001
  
• Figure 1: UK Users Of Financial Services On The Internet By Sector (Million And Index 1996=100), 1996-2001
  
• Nop Consumer Research
  
• I'm Happy To Invest Conducting Transactions Via The Internet
  
• I'm Happy To Invest Conducting Transactions Via The Telephone
  
• I Prefer To Talk With Someone Face-To-Face When I Am Deciding About Savings Or Financial Transactions
  
• Investment Planning
  
• Competitive Structure
  
• Advertising
  
• The Consumer
  
• Unemployment And Earnings
  
• Table 2: Proportion Of UK Workforce Claiming Unemployment And Average Earnings Growth Rates (%), 1997-2001
  
• Figure 2: Proportion Of UK Workforce Claiming Unemployment (%), 1997-2001
  
• Prices, Interest Rates And Savings
  
• Table 3: Consumer Expenditure, Retail Prices And Average Earnings (Index 1995=100 And %), 1997-2001
  
• Table 4: Base Rate, Savings Ratio, Equity Prices, Net Financial Assets And House Prices (% And Index 1995=100), 1997-2001
  
• Table 5: Retail Prices, Base Rate, 3-Month Interest Rate, Savings Ratio, House Prices, Net Financial Assets And Total Net Worth (Index 1995=100, % And £Bn), 1997-2001
  
• Household Savings
  
• Savings And Investments
  
• Table 6: UK Savings And Investments By Sector (% Of Gdp), 1998-2001
  
• Figure 3: UK Savings And Investments By Sector (% Of Gdp), 1998-2001
  
• Table 7: UK Household-Sector Income, Savings And Investments (£M And %), 1997-2001
  
• Household Expenditure
  
• Table 8: Household Expenditure By Age, Region And Income Decile Group (£ Per Week), 2000-2001
  
• Household Wealth
  
• Household Net Wealth
  
• Table 9: UK Household Net Wealth By Assets And Liabilities And By Wealth Owned (£Bn And %), 1996-2001
  
• Total Household Savings
  
• Table 10: Household Savings By Household Type And Amount (% And 000), 1999/2000
  
• Sources Of Gross Weekly Household Income
  
• Table 11: Sources Of Gross Weekly Household Income By Region (%), 1999-2000
  
• Figure 4: Sources Of Gross Weekly Household Income By Region (%), 1999-2000
  
• Table 12: Pensioners' Gross Income By Source In The UK/Great Britain (£ Per Week), 1979-1999/2000
  
• Figure 5: Pensioners' Gross Income By Source In The UK/Great Britain (£ Per Week), 1979-1999/2000
  
• Consumer Dynamics
  
• Demographics
  
• Table 13: The UK Population By Age (000), 1996, 2001 And 2006 3
  
• Nop Consumer Research
  
• I Don't See Any Point In Saving Money
  
• The Safest Way To Invest Money Is In Property
  
• Market Forecasts

3. Bank Savings

• Introduction
  
• Market Size
  
• Table 14: Personal-Sector Liquid Assets By Deposits With Banks (£M And %), 1999-2001
  
• Market Shares
  
• Table 15: Individual Group Balances — Customer Accounts Liabilities By Individual Banks (£M), 1998-2001
  
• Figure 6: Individual Group Balances — Customer Accounts Liabilities By Individual Banks (£M), 1998-2001
  
• Table 16: Total Sterling Deposits With Major British Banking Groups (£M), 1997-2001
  
• Consumer Trends
  
• I Like To Save With A Bank

4. Building Society Savings

• Introduction
  
• Market Size
  
• Table 17: Personal-Sector Liquid Assets By Deposits With Building Societies (£M), 1999-2001
  
• Consumer Trends
  
• I Like To Save With A Building Society

5. National Savings And Government Bonds

• Introduction
  
• Market Size
  
• Table 18: Personal-Sector Liquid Assets By National Savings Deposits (£M And %), 1999-2001
  
• Table 19: National Savings Amounts Outstanding And Net Transactions By Product (£M), 1998-2001
  
• Figure 7: National Savings Amounts Outstanding And Net Transactions By Product (£M), 1998-2001
  
• Consumer Trends
  
• I Like To Save Using Tax-Free Products Like National Savings

6. ISAS, PEPS And Tessas

• Introduction
  
• Market Size
  
• Table 20: Inflows To Tessas And ISAs (£M), 1998-2001
  
• Advertising
  
• Table 21: Main Media Advertising Expenditure On Isas (£000), Years Ending December 2000 And 2001

7. Investments And Equities

• Introduction
  
• Consumer Trends
  
• I Like To Buy Shares For Long-Term Growth
  
• I Like To Invest On The Stock Market
  
• Advertising
  
• Table 22: Main Media Advertising Expenditure On General Investment Schemes (£000), Years Ending December 2000 And 2001
  
• Table 23: Main Media Advertising Expenditure On Online Investment Services (£000), Years Ending December 2000 And 2001
  
• Figure 8: Main Media Advertising Expenditure On Online Investment Services (£000), Years Ending December 2000 And 2001

8. Unit Trusts

• Introduction
  
• Market Size
  
• Table 24: UK Unit Trust Total Funds Under Management By Top Ten Companies (% And £), December 2001
  
• Open-Ended Investment Companies
  
• Table 25: Top Ten UK OEIC Funds Under Management By Value And Market Share (£ And %), December 2001
  
• Figure 9: Top Ten UK OEIC Funds Under Management By Value And Market Share (£ And %), December 2001
  
• Table 26: Unit Trusts By Value Of Funds (£M And Index 1994=100), 1994-2001
  
• Figure 10: Unit Trusts By Value Of Funds (£M And Index 1994=100), 1994-2001
  
• Consumer Trends
  
• I Like To Invest In Unit Trusts
  
• Distribution
  
• Table 27: Unit Trusts By Holdings (£M), 1997-2001
  
• Table 28: Gross Retail Sales Of Unit Trusts By Outlet Channel (%), 2001

9. Investment Trusts

• Introduction
  
• Market Size
  
• Table 29: Top 13 UK Investment Trust Funds By Total Assets And Market Share (£M And %), 31st December 2001
  
• Figure 11: Top 13 UK Investment Trust Funds By Market Share ( %), 31st December 2001
  
• Consumer Trends
  
• I Like To Save In Investment Trusts
  
• Distribution
  
• Table 30: The UK Investment Trusts Market By Holdings (£M), 1997-2001
  
• Split-Capital Investment Trusts

10. Bonds And Exotic Products

• Introduction
  
• Corporate Bonds
  
• Venture-Capital Trusts And Enterprise-Investment Schemes
  
• Advertising
  
• Table 31: Main Media Advertising Expenditure For Bonds (£000), Years Ending December 2000 And 2001

11. An International Perspective

• Financial Assets In EU Countries
  
• Table 32: Household Financial Assets In Selected EMU Countries (%), 2000 87
  
• Financial Assets In OECD Countries
  
• Table 33: Financial Assets Of Households In Major OECD Countries (% Of Nominal Disposable Income), 1997-2001

12. Pest Analysis

• Political Factors
  
• Economic Factors
  
• Social Factors
  
• Technological Factors

13. Consumer Dynamics

• Overview
  
• Table 34: Summary Of NOP Response Rate By Number And Proportion (%), 2002
  
• Saving With A Bank Or Building Society
  
• I Like To Save With A Bank (S1)
  
• I Like To Save With A Building Society (S2)
  
• Table 35: Saving With A Bank Or A Building Society (% Of Respondents), 2002
  
• Saving Using Tax-Free Products Or Unit Trusts
  
• I Like To Save Using Tax-Free Products Like National Savings (S3)
  
• Table 36: Saving Using Tax-Free Products Or Unit Trusts (% Of Respondents), 2002
  
• I Like To Invest In Unit Trusts (S4)
  
• Attitudes Towards Investment Trusts And Shares
  
• I Like To Save In Investment Trusts (S5)
  
• Table 37: Saving Using Investment Trusts And Shares For Long-Term Growth (% Of Respondents), 2002
  
• I Like To Buy Shares For Long-Term Growth (S6)
  
• Investment In The Stock Market And Property
  
• I Like To Invest On The Stock Market (S7)
  
• Table 38: Investing In The Stock Market And In Property (% Of Respondents), 2002
  
• The Safest Way To Invest Money Is In Property (S8)
  
• Investing In Own Business Or In Pensions
  
• I Prefer To Invest In My Own Business (S9)
  
• Table 40: Investing In Own Business Or A Pension Scheme (% Of Respondents), 2002
  
• I Put Any Spare Money I Have Into A Pension Scheme (S10)
  
• No Point In Saving/Investing Via The Internet
  
• I Don't See Any Point In Saving Money (S11)
  
• I'm Happy To Invest Conducting Transactions Via The Internet (S12)
  
• Table 41: Attitudes Towards Saving; Attitudes Towards Investing Via The Internet (% Of Respondents), 2002
  
• Telephone Or Face-To-Face Transactions
  
• I'm Happy To Invest Conducting Transactions Via The Telephone (S13)
  
• Table 42: Attitudes Towards Telephone Or Face-To-Face Transactions (% Of Respondents), 2002
  
• I Prefer To Talk With Someone Face-To-Face When I Am Deciding About Savings Or Financial Transactions (S14)
  
• Easy-Access Or Long-Term Savings
  
• I Want To Be Able To Get At Any Savings I Might Have Fast (S15)
  
• Table 43: Attitudes Towards Easy-Access Or Long-Term Saving (% Of Respondents), 2002
  
• I Am Happy For My Savings To Mature Until I Retire (S16)
  
• Passing On Savings Or Indifference
  
• I Want To Leave Any Savings I Might Have To My Family (S17)
  
• Table 44: Passing On Savings And Indifference Towards Savings Or Investments (% Of Respondents), 2002
  
• I Don't Have Any Fixed Opinion About Savings Or Investments (S18)
  
• None Of These/Don't Know
  
• None Of These
  
• Don't Know
  
• Table 45: None Of These; Don't Know (% Of Respondents), 2002

14. Company/Supplier Profiles

• Fidelity
  
• Corporate Strategy
  
• Strengths And Weaknesses
  
• New Product Development
  
• Brand Development
  
• Advertising
  
• Distribution
  
• Foreign & Colonial
  
• Corporate Strategy
  
• Strengths And Weaknesses
  
• New Product Development
  
• Innovation
  
• HBOS
  
• Corporate Strategy
  
• Strengths And Weaknesses
  
• New Product Development
  
• Brand Development
  
• Innovations
  
• Advertising
  
• Jupiter
  
• Corporate Strategy
  
• Strengths And Weaknesses
  
• New Product Development
  
• Brand Development
  
• Innovations
  
• Nationwide Building Society
  
• Corporate Strategy
  
• Strengths And Weaknesses
  
• Innovations
  
• Advertising
  
• Distribution
  
• Royal Bank Of Scotland
  
• Corporate Strategy
  
• Strengths And Weaknesses
  
• New Product Development
  
• Innovations
  
• Advertising

15. The Future

• The Savings Market
  
• Consumer Issues
  
• Table 46: Selected Forecast Economic Criteria (%, Index 1995=100 And £Bn), 2002-2006
  
• Table 47: Forecast Household Savings And Investments (% Of Gdp), 2002-2007
  
• Figure 12: Forecast Household Savings And Investments (% Of Gdp), 2002-2007
  
• Supplier Issues
  
• Table 48: Forecast Personal-Sector Liquid Assets By Deposits And ISA Inflows By Sector (£M), 2002-2007
  
• Figure 13: Forecast Personal-Sector Liquid Assets By Deposits And ISA Inflows By Sector (£M), 2002-2007
  
• Unit Trusts
  
• Table 49: Forecast Unit-Trusts Market By Value Of Funds (£M And Index 2002=100), 2002-2007
  
• Investment Trusts
  
• Table 50: Forecast Investment-Trusts Market By Holdings (£M), 2002-2007
  
• Demographic Changes
  
• Table 51: UK Population Projections (000), 1996-2021
  
• Market Dynamics By Pest Analysis
  
• Political Factors
  
• Economic Factors
  
• Social Factors
  
• Technological Factors

16. Further Sources

• Associations
  
• Publications
  
• General Sources
  
• Bonnier Information Sources
  
• Government Sources
  
• Other Sources