Product Type: Market Research Report
Published by: Datamonitor
Published: December 2007
Product Code: R313-29420Description Introduction
Fund supermarkets in Spain 2007 examines developments in the Spanish 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 Spain and explores their marketing and distribution strategies.
Highlights
Fund supermarkets exercise considerable control over the fortunes of fund managers through their short-lists of recommended funds. Fund supermarkets in Spain currently offer a comprehensive range of investment funds, covering domestic and international markets. Most recently, Spanish legislation has made provisions for two new fund classes available to retail investors exchange traded funds and funds of hedge funds. Year-on-year growth in AuM fell from 11.94% in 2005 to 1.31% in 2006. This sharp decline in growth is partly attributed to: a growing preference for bank deposits (among conservative investors) triggered largely by the introduction of a new tax regime; and increasing demand for foreign funds (among more sophisticated investors).
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
- The fund supermarket sector in Spain continues to develop, with providers expanding their range of products and services for both B2C and B2B markets
- Spain's bank-dominated mutual funds industry is registering a declining growth rate
- Recent Spanish legislation supports the development and marketing of collective investments
- Fund supermarkets are offering an expanded range of services
- Fund supermarket distribution provides an expansionary forum for smaller fund managers, in particular, and a platform for the supermarkets themselves to explore broader business areas
- Table of Contents
- Table of figures
- MARKET BACKGROUND
- Spain's bank-dominated mutual funds industry is registering a declining growth rate
- The mutual fund industry in Spain is worth EUR321 billion
- In 2006, growth in mutual funds under management declined as a result of new legislation and shifting investor demand
- DISTRIBUTION DYNAMICS
- Spanish banks dominate the mutual fund sector
- Banks account for more than half of mutual fund distribution, according to two separate sources
- Fund supermarket clients are young and technologically savvy
- REGULATION
- Recent Spanish legislation supports the development and marketing of collective investments
- Legislation has been aimed at improving the flexibility and efficiency of the collective investments sector, while enhancing investor protection
- Fund supermarkets can offer access to new fund structures
- The new law also created new opportunities for fund distribution
- New regulations on prospectuses are intended to facilitate fund marketing
- The revised income tax law increased competition from savings deposits
- New EU legislation (UCITS directive and MiFID) will facilitate market development and enhance consumer protection
- MiFID allows fund managers and distributors improved flexibility, but also introduces new obligations
- DISTRIBUTOR PROFILES
- Fund supermarkets are offering an expanded range of services
- Tressis offers the broadest selection of mutual funds
- Pricing and investment stipulations are less competitive than those of other providers
- Retail investors account for a minority of business
- Inversis focuses on the intermediary market
- Inversis maintains pricing parity
- Just 25% of business is attributed to individual investors
- Uno-e is a smaller player, marketing to individual investors
- Pricing is more competitive than some larger platforms, but in line with the general industry trend
- Uno-e is a retail-based provider
- FondoTop focuses on investment funds for the retail market
- Pricing is competitive
- FondoTop's primary market comprises individual customers
- Spanish investors pay minimal fees for fund supermarket services
- DISTRIBUTION STRATEGIES
- Fund supermarket distribution provides an expansionary forum for smaller fund managers, in particular, and a platform for the supermarkets themselves to explore broader business areas
- Fund platforms rely on advanced technical capability for efficient processing and the flexibility to respond to market demand for new funds
- Supermarkets are sustaining their growth by offering access to new fund structures and providing complementary services
- For retail-focused supermarkets, pricing and branding are key; intermediary-based platforms emphasize operational support
- Fund supermarkets support fund managers' expansion initiatives; however fund managers also have their part to play
- Direct distribution and value-added services will shape the future development of the fund supermarket sector
- 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 Spanish 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: Mutual fund subscriptions segmented by financial group, EURm, 2006 Q1-Q4
- Table 6: Mutual fund redemptions segmented by financial group, EURm, 2006 Q1-Q4
- Table 7: Total mutual fund assets segmented by distribution channel, Dec 2006
- List of Figures
- Figure 1: Retail mutual funds represent just over two-thirds of total mutual funds under management
- Figure 2: Retail mutual funds accounted for 18% of total household savings and investment portfolios in 2006
- Figure 3: Investors hold roughly one third of their fund assets in balanced funds or bond/money market funds
- Figure 4: More than 60% of mutual fund subscriptions are channeled through banks
- Figure 5: Banks and savings banks together account for more than 90% of fund redemptions
- Figure 6: Fund supermarkets account for a miniscule proportion of fund assets today
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