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

Market Guide: Retail Investment Market in Ireland 2006

Product Type: Market Research Report
Published by: Datamonitor
Published: June 2007
Product Code: R313-23913

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

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

During 2005, Irish private investors in mutual funds held the majority of these assets in balanced funds (65% of retail mutual fund assets under management), followed by equity funds (17%) and property funds (10%). Bond funds represented 8% of mutual fund assets. Overall, however, deposits continued to account for the bulk of household savings.

The IFSRA published a revised Consumer Protection Code on July 25th 2006. It harmonizes and updates previous codes and establishes a level playing field among financial services providers. It covers: advertising & marketing, know your customer obligations, suitability of products offered and fair treatment of customers.

The net asset value of collective investment schemes in Ireland increased from EUR435 billion in 2004 to EUR586 billion in 2005, representing assets managed by 3,798 funds (including sub-funds).

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

Overview: Catalyst; Summary; Executive Summary; The Irish retail savings and investments sector has grown at a compound annual rate of 17.7%, driven, to a large extent, by growth in mutual funds; Between 2001 and 2005, with the exception of equity, all asset classes in the retail savings and investments market in Ireland experienced double-digit compound annual growth; Double-digit growth in deposits and mutual funds will be sustained between 2006 and 2010; EU and national legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers; The top four Irish banks dominate the local banking sector; The banking market leaders include three domestic banks and two banks headquartered in the UK and Denmark; Table of Contents; Table of figures; Table of tables
MARKET OVERVIEW: Between 2001 and 2005, with the exception of equity, all asset classes in the retail savings and investments market in Ireland experienced double-digit compound annual growth; Retail assets account for 80% of mutual funds, but less than half of all other asset classes in the Irish market; Mutual funds outstrip all other asset classes in the Irish retail savings and investments market; Since 2002, the proportionate value of retail assets held in mutual funds has been increasing, at the expense of deposits and equities
MARKET FORECASTS: Double-digit growth in deposits and mutual funds will be sustained between 2006 and 2010; Mutual funds will continue to account for more than 80% of household wealth, but deposits will grow more quickly
MARKET REGULATION: EU and national legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers; The Irish Financial Services Regulatory Authority (Financial Regulator) regulates the 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; Recent legislation enhances consumer protection; Banks, asset management companies and investment companies which belong to financial conglomerates face additional supervisory requirements; Investment firms are subject to client money and fit and proper requirements; EU legislation aims at enhancing investor confidence; Distance marketing rules define sales practices; A new fund structure augments the range of investment options; Proposed anti-money laundering legislation implies an additional administrative burden for banks; Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection
COMPETITIVE MARKET STRUCTURE: The top four Irish banks dominate the local banking sector; Domestic banks dominate the Irish banking sector, by number; The top 5 banks control 61% of the banking market, measured by customer deposits; The majority of collective investment schemes are UCITS
MARKET LEADERS: The banking market leaders include three domestic banks and two banks headquartered in the UK and Denmark; As at December 2005, Bank of Ireland led the banking market, based on total assets; Allied Irish Bank ranked second in the banking sector; In 2005, permanent tsb had the third highest market share among banks, measured by customer deposits; Ulster Bank was the fourth largest bank, by customer deposits; National Irish Bank ranked fifth among banks
APPENDIX: 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; Ask the analyst; Datamonitor consulting; Disclaimer
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 & building societies, segmented by type, as at Apr 2006; Table 9: Top 5 banks by total customer deposits, as at Dec 2005; Table 10: Number of collective investment schemes, segmented by type, as at Dec 2004
List of Figures: Figure 1: Retail savings represent only a small proportion of the equity and bond markets; Figure 2: Mutual funds and deposits together account for 95% of retail savings; Figure 3: Mutual funds consistently account for the single highest proportion of household assets; Figure 4: Over the next 5 years, compound annual growth in the retail savings and investments market will slow to 11.3%; Figure 5: Irish banks and building societies account for 61% of the banking market, by number; Figure 6: Bank of Ireland controls more than one-quarter of the market, based on customer deposits; Figure 7: UCITS and designated investment companies accounted for roughly 85% of all investment funds, by number in 2004

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