Product Type: Market Research Report
Published by: Datamonitor
Published: December 2007
Product Code: R313-29419Description Introduction
Fund supermarkets in Germany 2007 examines developments in the German fund supermarket sector and assesses the distribution channels that are in operation. The report analyzes both the current and possible future trends of the industry.
Scope
Sizes the investment funds market; Reviews relevant legislative developments and their implications for fund distribution through supermarkets; Profiles leading fund supermarkets in Germany and explores their marketing and distribution strategies.
Highlights
Research conducted by Datamonitor in 2007 found that while there was limited impact of supermarkets in terms of trades from individual customers, IFAs and asset managers were making increased use of these online platforms. Fund supermarkets operating in the German market offer a broad mix of investment funds in all asset classes, with some platforms' portfolios extending to in excess of 6,000 domestic and international funds. In addition, a number of supermarkets have diversified their services. Intense competition sees German fund supermarkets offering investors deep discounts on front-end loads for investment funds. Some hosts even waive these fees altogether. These discounts also put pressure on fund managers who are distributing through commercial and savings banks.
Reasons to Purchase
Get an overview of the scope of the investment fund market; Analyze the offerings of key providers in the sector; Use our analysis to inform fund marketing and distribution strategies and adapt to changes in the fund supermarket model.
Table of Contents - OVERVIEW
- Catalyst
- Summary
- EXECUTIVE SUMMARY
- Germany's fund supermarket sector continues to expand to meet the demands of a growing potential customer base
- Germany's retail mutual fund market reflects strong growth
- Recent legislation on collective investments supports product innovation and enhances investor protection
- Direct banks are among the leading fund supermarkets
- Fund supermarkets are expanding beyond their traditional business activity
- Table of Contents
- Table of figures
- Table of tables
- MARKET BACKGROUND
- Germany's retail mutual fund market reflects strong growth
- Germany's mutual fund industry is worth EUR1,263 billion
- DISTRIBUTION DYNAMICS
- Retail banks dominate the distribution of mutual funds
- Close to half of all mutual fund assets under management is attributed to retail banks
- Fund supermarket clients demand control and accessibility
- REGULATION
- Recent legislation on collective investments supports product innovation and enhances investor protection
- Asset management companies may establish unit classes within funds
- Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection
- MiFID allows fund managers and distributors improved flexibility, but also introduces new obligations
- The planned revision of the Investment Act will relax regulatory restrictions
- DISTRIBUTOR PROFILES
- Direct banks are among the leading fund supermarkets
- Comdirect offers one of the broadest fund ranges
- Pricing keeps pace with the competition and helps build customer relationships
- Comdirect serves both B2C and B2B markets
- Services extend to banking and advice
- DAB bank focuses on the retail market
- Despite its retail emphasis, DAB also facilitates intermediary trading
- DAB also delivers banking and adivce
- Cortal Consors markets to individual investors
- Investors have access to banking products and services
- FondsDISCOUNT.de serves the needs of experienced private investors
- FondsDISCOUNT competes strongly on price
- The product range extends beyond investment funds
- Competition is reducing fees for investors
- DISTRIBUTION STRATEGIES
- Fund supermarkets are expanding beyond their traditional business activity
- Branding is as important to fund supermarkets as it is to end investors
- Fund supermarkets are pursuing growth by offering banking services and investing in bricks and mortar
- Intermediaries will require dedicated services and enhanced platform capability
- Marketing aimed at both individual investors and intermediaries should emphasize the concept of partnering for growth
- Leading supermarkets are helping intermediaries to grow their businesses
- Fund managers will continue to rely on direct sales, although supermarkets represent a key element of heir distribution strategies
- Demographic shifts, alternative investment structures and cost-driven technological advances will impact fund supermarkets' growth
- Population shifts and a more engaged investment market will help sustain growth
- Structured products offer fund supermarkets opportunities for further diversification
- Investment in technology can boost both revenue and profit
- APPENDIX
- Data
- Definitions
- Asset manager / Asset management company
- Bank
- Collective Investment Scheme
- Exchange-Traded Fund
- Fund of funds
- Fund supermarket
- Hedge fund
- Non-retail market
- Retail market
- Structured products
- UCITS
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Comparative overview of selected German fund supermarkets
- Table 2: Total mutual funds under management segmented by investor, EURm, 2002-2006
- Table 3: Retail savings & investment asset balances, EURm, 2002-2006
- Table 4: Retail mutual funds under management segmented by type of fund, EURm, 2002-2006
- Table 5: Total mutual fund assets segmented by distribution channel, Dec 2006
- List of Figures
- Figure 1: Retail investors account for an increasing proportion of mutual funds in Germany
- Figure 2: Mutual funds represent one-fifth of household portfolios
- Figure 3: Balanced funds and bond funds together account for over half of household mutual fund portfolios
- Figure 4: Retail banks dominated Germany's mutual fund sector in 2006
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