Market Guide: Retail Investment Market in France 2006: Industry Report

Market Guide: Retail Investment Market in France 2006

Product Type: Market Research Report
Published by: Datamonitor
Published: February 2007
Product Code: R313-21080

Description

Introduction

This report is most appropriate for companies looking for an overview of the retail investments markets in order to assess the level of market opportunity (using our market data and forecasts), regulatory barriers and opportunities, and level of competition in the market. For more detailed market data please refer to Datamonitor's Retail Savings and Investments Interactive Database 2006.

Scope

Sizes retail deposits, mutual funds, equities and bonds;

Presents competitor market data for retail banks and mutual fund companies;

Assesses regulatory barriers and opportunities;

5 years historic data from 2001-5 and 5 year forecast to 2010.

Highlights

The Financial Security Act Established two new types of investment vehicle: funds with streamlined investment rules Aria funds (Agréés à Règles d'Investissement Allégées) and contractual funds. A third new investment vehicle, the open-ended real estate fund (L'organisme de placement collectif immobilier - OPCI), was created by Order 2005-2178.

The rationalization of the French banking industry, which began in the 1980s, continued in 2005. The number of co-operative and mutual banks was reduced by two, due to the merger of two Crédit Agricole regional banks, as well as that of two savings banks and two Banques Populaires institutions. There was a net decline of 5 commercial banks.

The number of authorized investment firms fell by 6 during 2005. 12 firms were de-registered. At the end of the year, there were 122 investment firms, apart from the portfolio management companies supervised by the AMF. The top ten investment firms accounted for 98% of the total assets of these 122 firms, with the top three accounting for 87.5%.

Reasons to Purchase

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.

Table of Contents

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 savings and investments account for 22% of the total market in France
Just under 90% of retail assets is held in deposits and mutual funds
Since 2002, the proportional value of retail assets held in equities investments has been increasing
CHAPTER 2 MARKET FORECASTS
Introduction
Key findings
Deposits will continue to account for the majority of household wealth, with a marginal increase in the proportion of equity
CHAPTER 3 MARKET REGULATION
Introduction
Key findings
The Banking Commission of the Central Bank and the Financial Markets Authority are the primary regulators of the French 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
Regulatory amendments affect internal control and compliance at asset management companies and investment companies
Banks, asset management companies and investment companies which belong to financial conglomerates face additional supervisory requirements
Financial services companies must adapt their accounting systems to meet new standards for financial statements
Listed financial institutions have new reporting obligations regarding insider trading
New legislation for listed entities aims at enhancing investor confidence
Asset management companies have increased flexibility in fund management
Three new vehicles augment the range of investment options
Distance marketing rules enhance consumer protection
Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection
Proposed anti-money laundering legislation implies an additional administrative burden for banks
CHAPTER 4 COMPETITIVE MARKET STRUCTURE
Introduction
Key findings
The largest segment of banks in France comprises foreign commercial banks
Consolidation in the French banking sector continues
Banks distribute primarily through their branch networks, but telephone and Internet banking are widely used
The top 5 banks control 77% of the banking market, measured by total assets
Several leading asset managers belong to banking groups
Over 60% of available mutual funds comprises balanced funds or equity funds
Competitors in securities trading include investment companies and other authorized institutions
CHAPTER 5 MARKET LEADERS
Introduction
Key findings
As at December 2005, BNP Paribas led the banking market, based on total assets; its asset management division is BNP Paribas Asset Management
The Crédit Agricole Group trailed the market leader in the banking sector; its asset management arm is Crédit Agricole Asset Management
Société Générale Group ranked third among banks, measured by total assets; its asset management arm is Société Générale Asset Management
In 2005, Crédit Mutuel had the fourth largest share of the banking market, measured by total assets
The Banque Populaire Group ranks fifth among banks
Axa IM and IXIS Asset Management are key players in the market for mutual funds
APPENDIX
Definitions
Asset manager / Asset management company
Bank
Collective Investment Scheme
Friendly society
Fund of funds
Hedge fund
Investment company
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, EURm, 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, EURm, as at Dec 2005
Table 4: Retail Savings & Investments, segmented by asset class, EURm, 2001 - 2005
Table 5: Retail Savings & Investments, segmented by asset class, in percentages, 2001 - 2005
Table 6: Retail Savings & Investments, segmented by asset class, EURm, 2006 - 2010
Table 7: Retail Savings & Investments, segmented by asset class, in percentages, 2006 - 2010
Table 8: Number of banks segmented by type, as at Dec 2005
Table 9: Top 5 banks by total assets, as at Dec 2005
Table 10: Number of mutual funds, segmented by type, as at Dec 2005
List of Figures

Figure 1: Retail savings and investments account for 70% of deposits, but less than 30% in all other asset classes
Figure 2: Deposits account for 65% of retail savings and investments in France in 2005
Figure 3: Deposits consistently account for the single highest proportion of household assets, followed by mutual funds
Figure 4: Over the next 5 years, the proportional distribution of household assets will remain largely consistent, with marginal increases in equity and deposits
Figure 5: As at December 2005, foreign commercial banks dominated the French banking sector, by number
Figure 6: As at December 2005, BNP Paribas led the market, with 24% of total assets of the banking sector
Figure 7: As at December 2005, balanced funds and equity funds together represented 63% of mutual f
unds, by number of funds

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