Market Guide: Retail Investment Market in the UK 2006

• Sizes retail deposits, mutual funds, equities and bonds.
• Assesses regulatory barriers and opportunities 5 years historic data from 2001-5 and 5 year forecast to 2010

• Get an overview of the retail investment market, including past growth and forecast growth.
• Assess regulatory barriers and opportunities affecting retail investments in this country.
• Analyze competition from retail banks and mutual fund companies

EXECUTIVE SUMMARY - MARKET HIGHLIGHTS

Market overview

Market forecasts

Market regulation

Competitive market structure

Market leaders

INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

CHAPTER 1 MARKET OVERVIEW

Introduction

Retail assets account for the bulk of savings in deposits and mutual funds

Half of all UK retail savings and investments is held in deposits

Since 2002, the proportional value of retail assets held in mutual funds and equities has been increasing, at the expense of deposits

CHAPTER 2 MARKET FORECASTS

Introduction

Key findings

Deposits will continue to account for a declining proportion of household wealth, with slight increases in the proportion of equity and mutual funds

CHAPTER 3 MARKET REGULATION

Introduction

Key findings

The Financial Services Authority regulates the UK savings and investments sector

For banks and investment companies, Basel II capital adequacy requirements imply additional investment in risk management expertise and in IT systems to calculate risk

New legislation for listed entities aims at enhancing investor confidence

Banks, asset management companies and investment companies which belong to financial conglomerates face additional supervisory requirements

Distance marketing rules enhance consumer protection

Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection

EU proposals will address consolidation in the financial services sector

CHAPTER 4 COMPETITIVE MARKET STRUCTURE

Introduction

Key findings

Domestic banks comprise the largest segment of the UK banking sector, by number

The top 5 banking groups account for 82% of the banking market, measured by total assets

The top 5 asset managers control just over 30% of the mutual funds market

The majority of public investment funds are unit trusts

CHAPTER 5 MARKET LEADERS

Introduction

Key findings

As at December 2005, the Barclays Group led the banking market, based on total assets

Grupo Santander (including the Abbey Group) ranked second in the banking sector

In 2005, the Royal Bank of Scotland Group had the third highest market share among banks, measured by total assets

The HSBC Group was the fourth largest banking group, by total assets

The HBOS Group ranked fifth among banks; its asset management arm, Insight Investment, ranked third in the mutual funds market

Fidelity International UK is the market leader in mutual funds, measured by AuM

Scottish Widows Investment Partnership trailed the market leader in the mutual funds market

INVESCO Perpetual is the fourth largest asset manager, by AuM

M&G Securities rounds out the top five asset managers

APPENDIX

Definitions

Asset manager / Asset management company

Bank

Collective Investment Scheme

Friendly society

Fund of funds

Hedge fund

Investment company

ISA

Non-retail market

Retail market

SICAF

SICAV

UCITS

Further reading

Savings and Investments SPP

Interactive Databases

Reports

Related Global Wealth Service SPP Reports

Interactive Databases

Market Reports

Strategic Insight Reports

Wealth Management Competitor Tracker

SPP writing team

List of Tables

Table 1: Total Savings & Investments segmented by retail v institutional, GBPm, as at Dec 2005

Table 2: Total Savings & Investments segmented by retail v institutional, in percentages, as at Dec 2005

Table 3: Retail Savings & Investments, segmented by asset class, GBPm, Dec 2005

Table 4: Retail Savings & Investments, segmented by asset class, GBPm, 2001 - 2005

Table 5: Retail Savings & Investments, segmented by asset class, in percentages, 2001 - 2005

Table 6: Retail Savings & Investments, segmented by asset class, GBPm, 2006 - 2010

Table 7: Retail Savings & Investments, segmented by asset class, in percentages, 2006 - 2010

Table 8: Number of banks & building societies, segmented by type, as at Mar 2006

Table 9: Top 5 banks by total assets, as at Dec 2005

Table 10: Top 5 Asset management companies by retail assets under management (AuM), as at Dec 2005

Table 11: Number of public investment funds, segmented by type, as at Mar 2006

List of Figures

Figure 1: Retail savings and investments outstrip non-retail holdings in deposits and mutual funds

Figure 2: Deposits account for half of all retail savings and investments in the UK in 2005

Figure 3: Deposits consistently account for the single highest proportion of household assets

Figure 4: Over the next 5 years, household savings portfolios will experience marginal increases in the proportions of equity and mutual funds

Figure 5: As at December 2005, domestic banks and building societies accounted for 55% of the UK banking sector, by number

Figure 6: As at December 2005, the Barclays plc Group led the banking sector

Figure 7: Fidelity International led the public investment funds sector, in terms of AuM, as at December 2005

Figure 8: As at December 2005, unit trusts represented 57% of mutual funds, by number of funds