Product Type: Market Research Report
Published by: Datamonitor
Published: July 2006
Product Code: R313-16754Description Introduction
The report identifies key variations in UCITS III regulation implementation and competitive developments that are holding back or spurring on the UCITS fund market growth and presents readers with insight into how best to approach these fast growing markets.
Scope- Covers the entire European funds market with particular focus on the top eight markets;
- Provides both historic market sizing data for the whole of Europe and provides forecast profiles for seven selected markets;
- Covers regulatory and competitive developments across Europe.
Highlights
By the end of 2005, UCITS funds accounted for 70% of the total fund industry in Europe in terms of the number of funds available. Net inflows are even more weighted towards the UCITS side of the market, suggesting that UCITS' popularity with investors was greater than that of non-UCITS in 2005.
Many fund managers believe that the current legislation brought in under UCITS III does not do enough to create a truly unified, harmonized single European market. They are concerned that several important goals such as cross-border mergers, and the pooling of investor assets across borders, will not be feasible without further amendments.
Reasons to Purchase- Gain insight into the current situation in Europe with regard to UCITS III;
- Use the report to assess potential opportunities and threats resulting from UCITS III regulation and appropriate responses;
- Understand the potential development of the UCITS market in Europe over the next five years.
Table of Contents - EXECUTIVE SUMMARY
- Introduction
- Sizing the UCITS market
- Implementation: European overview
- Competitor dynamics
- Key conclusions
- The future decoded
- CHAPTER 1 INTRODUCTION
- What is this report about?
- Who is the target reader?
- How to use this report
- CHAPTER 2 SIZING THE UCITS MARKET
- Introduction
- Key findings
- By the end of 2005 there were 30,831 UCITS funds in Europe, collectively worth just over EUR5tn
- France and Luxembourg are the dominant markets for UCITS
- Italian UCITS have the highest average value
- UCITS funds account for 70% of all funds in Europe and 79% of all assets held in funds
- Germany is the only European market in which UCITS funds are less popular than non-UCITS
- Several European fund markets are completely dominated by UCITS
- Equity funds are the most popular form of UCITS in terms of net assets
- Equity funds are the driving force behind UCITS sales while money market funds continue to perform poorly
- Data tables
- CHAPTER 3 IMPLEMENTATION: EUROPEAN OVERVIEW
- Introduction
- Key findings
- Individual states' UCITS III implementation underpins European hopes for a standardized financial market
- Registration obligations continue to prove onerous and expensive in some states
- Tax discrimination is dying out under pressure from European authorities
- Positive action has been taken to eradicate tax discrimination
- Discrimination remains in some states
- CHAPTER 4 COMPETITIVE DYNAMICS
- Introduction
- Key findings
- Increasing investment possibilities have transformed the UCITS market
- UCITS III has had a mixed reception in terms of product development so far
- OEICs, bonds and unit trusts are the main focus of UCITS conversions and launches
- Bond funds offer the possibility of UCITS compliant retail absolute return funds
- Despite being less popular, fund of funds UCITS take advantage of active asset allocation provisions
- REITs are expected to be an important feature in future UCITS
- UCITS III remains an unsatisfactory option for some due to its requirements and limitations
- NURS threatens the success of UCITS funds in the UK
- CHAPTER 5 KEY CONCLUSIONS
- Introduction
- Key findings
- Derivatives used to create absolute returns and increasing complexity will be the key directions in product development
- Coordinated pan-European fund management will become an important feature of the market
- UCITS III presents significant opportunities for fund managers in Europe
- As the markets enter a period of uncertainty, absolute returns will become attractive to retail investors
- A "level playing field" among fund managers in Europe is being created by UCITS III
- The popularity of diversification will reward creative fund managers
- Fund managers face several challenges in their bid to launch successful pan-European funds
- Regulatory issues must be resolved or overcome by fund managers
- The expense of running UCITS must be effectively absorbed
- Retail investors need to be made ready for UCITS across Europe
- Across Europe investors have different investment cultures, preferences and needs
- Institutional specialists must learn how to effectively target retail investors
- CHAPTER 6 THE FUTURE DECODED
- Introduction
- Key findings
- The UCITS market is forecast to grow significantly between 2005 and 2010
- The non-UCITS market will have mixed fortunes over the next five years
- The Belgian, French, Luxembourg and UK markets will see strong growth in UCITS between 2005 and 2010
- The Belgian market will experience very strong overall growth
- UCITS will become even more dominant in the French market
- The Luxembourg market will strengthen its position as the largest UCITS market in Europe
- In the UK further development of the Directives is likely to create an important UCITS hub
- The Austrian, Spanish and German markets will see lower growth in the UCITS market between 2005 and 2010
- Austrian market conditions are not overly restrictive but UCITS only comprises two thirds of the mutual funds market
- The Spanish market is already almost UCITS-only
- The nature of the German market means that foreign-domiciled UCITS will remain an important part of the market
- Data tables
- APPENDIX
- Definitions
- Europe
- Trillion
- UCITS
- Further reading
- Savings and Investments SPP
- Interactive Databases
- Reports
- Briefs
- Related Global Wealth Service SPP Reports
- Interactive Databases
- Market Reports
- Strategic Insight Reports
- Wealth Management Competitor Tracker
- Datamonitor Asia Pacific Wealth Management SPP
- SPP writing team
- List of Tables
- Table 1: Number of UCITS funds investing in transferable securities and money market instruments in Europe
- Table 2: Net assets of UCITS funds investing in transferable securities and money market instruments in Europe
- Table 3: Total funds and net assets held in the European fund industry,
- Table 4: Forecast growth of UCITS assets 2005-2010
- Table 5: Forecast growth of non-UCITS assets 2005-2010
- Table 6: Forecast share of total mutual funds market 2005-2010
- List of Figures
- Figure 1: France and Luxembourg together account for almost half of all UCITS funds in Europe
- Figure 2: Luxembourg and France dominate net funds assets invested in UCITS in Europe
- Figure 3: On average UCITS funds hold more assets than non-UCITS, as well as dominating the European market
- Figure 4: Equity funds account for over a third of the European UCITS market
- Figure 5: The UCITS markets in Belgium and Luxembourg are forecast to double in size between 2005 and 2010
- Figure 6: The German non-UCITS market is forecast to grow significantly while others will see falls in value
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