European Investment Management 2004

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

• Introduction
• Market context
• Client focus
• Competitive dynamics

CHAPTER 2 INTRODUCTION

• What is this report about?
• Who is the target reader?
• How to use this report

CHAPTER 3 MARKET CONTEXT

• Introduction
• Key findings
• Key European trends
  • Economic and financial drivers
• Total funds under management
  • Market Analysis
• Country snapshots
  • Belgium
  • Finland
  • France
  • Germany
  • Ireland
  • Italy
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Switzerland
  • UK
• Mutual funds
  • European overview
  • European harmonisation
  • Mutual fund total market analysis
  • Retail mutual fund market analysis
  • Institutional mutual fund market analysis
  • Retail mutual fund asset allocation
• Life and pensions funds
  • European overview
  • Life and pensions funds total market analysis
  • Regulatory developments
  • Asset allocation
• Non-life insurance funds
  • European overview
  • Non-life funds total market analysis
  • Asset allocation
• Data
  • Total European assets
  • Country specific data
  • European mutual funds
  • European life and pensions
  • European non-life assets

CHAPTER 4 CLIENT FOCUS

• Introduction
• Key findings
• Customer preference
  • In-house or outsource
  • Choosing an investment manager
  • Attracting customers
• Customer retention
  • Servicing clients
  • Contacting clients
  • Losing clients
• Customer outlook
  • Choosing an Investment manager
  • Future focus
• Data

CHAPTER 5 COMPETITIVE DYNAMICS

• Introduction
• Key findings
• European developments
  • Selling off asset management capabilities
  • Consolidation
  • Focus on asset management
  • Expanding asset management capabilities
• Competitor profiles
  • No. 1 - Deutsche Asset Management
  • No. 2 - AXA Investment Managers Limited
  • No. 3 - SG Asset Management
  • No. 4 - ING Investment Management
  • No. 5 - Credit Suisse Asset Management
• European Competitors
• Country Snapshots
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Ireland
  • Italy
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Switzerland
  • UK
• Data
  • Competitor data
  • Europe
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Ireland
  • Italy
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Switzerland
  • UK

CHAPTER 6 ACTION POINTS

CHAPTER 7 APPENDIX

• Definitions and abbreviations
  • General defintions
• Research Methodology
• Further reading
  • Datamonitor Reports
  • Datamonitor Global Wealth Service: Insight Reports
  • Datamonitor Global Wealth Service: Competitor Tracking
• Datamonitor Financial Services Consulting
• SPP writing team

List of Tables

• Table 1: Total European assets under management segmented by fund type, 1998-2002
• Table 2: Total European assets under management, segmented by country, 1998-2002
• Table 3: Investment assets segmented by country and market sector, EURm 2002
• Table 4: Belgian assets under management, segmented by fund type, 1998-2002
• Table 5: Danish assets under management, segmented by fund type, 1998-2002
• Table 6: Finnish assets under management, segmented by fund type, 1998-2002
• Table 7: French assets under management, segmented by fund type, 1998-2002
• Table 8: German assets under management, segmented by fund type, 1998-2002
• Table 9: Irish assets under management, segmented by fund type, 1998-2002
• Table 10: Italian assets under management, segmented by fund type, 1998-2002
• Table 11: Dutch assets under management, segmented by fund type, 1998-2002
• Table 12: Norwegian assets under management, segmented by fund type, 1998-2002
• Table 13: Spanish assets under management, segmented by fund type, 1998-2002
• Table 14: Swedish assets under management, segmented by fund type, 1998-2002
• Table 15: Swiss assets under management, segmented by fund type, 1998-2002
• Table 16: UK assets under management, segmented by fund type, 1998-2002
• Table 17: Total retail and non-retail mutual fund assets, segmented by country, 1998-2002
• Table 18: European retail mutual fund assets, segmented by country, 1998-2002
• Table 19: Non-retail mutual fund assets, segmented by country, 1998-2002
• Table 20: Retail mutual fund assets segmented by country and asset class, 2002
• Table 21: Life and pension fund assets segmented by country, 1998-2002
• Table 22: Life and pensions assets, segmented by country and by asset class, 2002
• Table 23: Non-life insurance assets, segmented by country, actual values, 1998-2002
• Table 24: Non-life insurance assets segmented by country and asset class, actual values, 2002
• Table 25: What percentage of your investments do you manage in-house?
• Table 26: Why do you outsource investment management?
• Table 27: As a pan-European company, do you use investment managers in each country or just in your country of origin?
• Table 28: How did you go about selecting the last investment management company that you chose?
• Table 29: If you use a pension consultant, what would happen if you disagreed with their choice of Investment Manager?
• Table 30: At what level in your company are the decisions regarding which Investment manager/s to use made?
• Table 31: How many investment managers do you use?
• Table 32: When you selected your last investment management company, how important were the following attributes?
• Table 33: When an investment manager is trying to win your business, how important is it that you meet the following people?
• Table 34: Which of the following elements of service are the most important?
• Table 35: How often does your investment manager contact you about your investments?
• Table 36: Is the frequency of contact with your investment manager too much, too little or just right?
• Table 37: What would most likely lead you to switch Investment Manager?
• Table 38: How often do you switch Investment Manager?
• Table 39: Has the market downturn placed more emphasis upon any aspects of your choice of Investment Manager?
• Table 40: Deutsche Bank's quarterly results Q1/2001 - Q3/2003
• Table 41: AXA Investment Managers results 2000-2002
• Table 42: Top 30 asset managers in Europe by office AuM, 2003
• Table 43: Top 10 asset managers in Belgium by office AuM, 2003
• Table 44: Top 10 asset managers in Denmark by office AuM, 2003
• Table 45: Top 10 asset managers in Finland by office AuM, 2003
• Table 46: Top 20 asset managers in France by office AuM, 2003
• Table 47: Top 20 asset managers in Germany by office AuM, 2003
• Table 48: Top 10 asset managers in Ireland by office AuM, 2003
• Table 49: Top 10 asset managers in Italy by office AuM, 2003
• Table 50: Top 10 asset managers in the Netherlands by office AuM, 2003
• Table 51: Top 10 asset managers in Norway by office AuM, 2003
• Table 52: Top 10 asset managers in Spain by office AuM, 2003
• Table 53: Top 10 asset managers in Sweden by office AuM, 2003
• Table 54: Top 20 asset managers in Switzerland by office AuM, 2003
• Table 55: Top 30 asset managers in the UK by office AuM, 2003

List of Figures

• Figure 1: Life and pensions assets continue to outweigh non-life and mutual fund assets, 2002
• Figure 2: Across Europe, 47% of life and pensions institutions outsourced a proportion of their investment management.
• Figure 3: Local players dominate the investment management market in France, 2003
• Figure 4: Average GDP dropped sharply in 2000 but recovered in 2002
• Figure 5: The average stock market performance of the thirteen European markets adversely affected total investment assets, 1998-2002
• Figure 6: European stock indices have all picked up in 2003
• Figure 7: Investor preference has shifted in recent years, retail mutual fund equity exposure has been reduced in favor of bond and money market exposure, 2000-2002
• Figure 8: Life and pensions assets continue to outweigh non-life and mutual fund assets, 2002
• Figure 9: Total assets under management, grew from EUR6,269bn to EUR7,933bn, 1998-2002
• Figure 10: The UK had the largest total assets under management in Europe, at EUR2,016bn, 2002
• Figure 11: Germany has the most mutual fund assets under management in Europe, 2002
• Figure 12: Belgian assets peaked in 2001 at EUR241.7bn
• Figure 13: Growth in the Danish market leveled off over the 2000-2002 period
• Figure 14: Mutual funds are a small but growing market in Finland, 2002
• Figure 15: France is the 2nd largest mutual fund market, the 2nd largest life and pensions market and the 3rd largest non-life market in Europe, 2002
• Figure 16: Germany is the largest mutual fund market, the 3rd largest life and pensions market and the largest non-life market in Europe, 2002
• Figure 17: The Irish investment market is dominated by life and pensions assets, 1998-2002
• Figure 18: Italy is the 4th largest mutual fund market, the 5th largest life and pensions market and the 5th largest non-life market in Europe, 2002
• Figure 19: As a result of the relatively high exposure to equities in the Netherlands, investment assets suffered over the 2000-2002 period
• Figure 20: Life and pensions assets dominate the Norwegian investment management market, 2002
• Figure 21: Spain is the 5th largest mutual fund market, the 8th largest life and pensions market and the 7th largest non-life market in Europe, 2002
• Figure 22: Sweden saw a sharp decline in its investment management market over the 2000-2002 period due to the high exposure to equities
• Figure 23: Switzerland is the 6th largest mutual fund market, the 6th largest life and pensions market and the 4th largest non-life market in Europe, 2002
• Figure 24: The UK is the 3rd largest mutual fund market, the largest life and pensions market and the 2nd largest non-life market in Europe, 2002
• Figure 25: European mutual fund assets under management initially grew in 2000 by 7.8% despite the falling equity markets
• Figure 26: In 2002, Germany was the largest mutual fund market in Europe, followed by France
• Figure 27: Institutional assets consistently made up around a third of total assets over the 1998-2002 period
• Figure 28: France is by far the largest retail mutual funds market
• Figure 29: Germany leads the way in institutional mutual funds, 2002
• Figure 30: Retail mutual funds have a relatively high exposure to equities with 25.0% of retail mutual fund assets invested in equity funds
• Figure 31: Life and pension asset growth has stopped in recent years
• Figure 32: UK life and pensions remain by far the largest in Europe, 2002
• Figure 33: Bonds and equities dominate life and pension fund investments across Europe, 2002
• Figure 34: Non-life assets have increased every year since 1998
• Figure 35: Germany is the largest non-life investment market in Europe, 2002
• Figure 36: Non-life asset allocation has changed little over the equity downturn
• Figure 37: What percentage of your investments do you manage in-house?
• Figure 38: Why do you outsource investment management?
• Figure 39: Do you use investment managers in each country in which you have a presence or just those in your country of origin?
• Figure 40: How did you go about selecting the last investment manager that you chose?
• Figure 41: If you use a pension consultant, what would happen if you disagreed with their choice of Investment Manager?
• Figure 42: At what level in your company are the decisions regarding which Investment manager/s to use made?
• Figure 43: How many investment managers do you use?
• Figure 44: When you selected your last investment management how important were the following attributes?
• Figure 45: When an investment manager is trying to win your business, how important is it that you meet the following people?
• Figure 46: Which are the most important elements of service?
• Figure 47: How often does your investment manager contact you about your investments?
• Figure 48: What would be most likely to lead you to switch Investment Manager?
• Figure 49: How often do you switch Investment Manager?
• Figure 50: Has the market downturn placed more emphasis upon any aspects in your choice of Investment Manager?
• Figure 51: Italian investors will be focusing almost exclusively on European investments
• Figure 52: Spanish investors preference of fixed income/equity mix
• Figure 53: Deutsche Asset Management sits within the PCAM division of Deutsche Bank
• Figure 54: Deutsche Bank's asset management and wealth management segment has seen declining costs and rising revenues in 2003
• Figure 55: AXA Investment Managers has managed to increase revenues despite the poor equity markets over the 2000-2002 period
• Figure 56: Net income has suffered for the Asset Management arm since 2000
• Figure 57: Credit Suisse Asset Management sits within Credit Suisse First Boston the investment bank
• Figure 58: CSAM's assets under management are invested across a range of asset classes, 31/12/2002
• Figure 59: Deutsche Asset Management is the largest European investment manager by either office or regional AuM, 2003
• Figure 60: KBC is by far the largest asset manager, with 3.6 times more assets under management than the next largest Dexia, 2003
• Figure 61: The Danish market has many competitive asset managers although Nordea is the market leader by office assets, 2003
• Figure 62: In Finland, as in Denmark, Nordea is the largest asset manager by office assets AuM, 2003
• Figure 63: The French market is dominated by French asset managers such as Société Générale and AXA, 2003
• Figure 64: DekaBank is the market leader by office assets in the competitive German asset management market, 2003
• Figure 65: The largest players in Ireland are all Irish, with Bank of Ireland leading the way by office assets, 2003
• Figure 66: Sanpaolo IMI is the clear market leader in the Italian market by office assets, 2003
• Figure 67: Dutch asset managers dominate the market in the Netherlands, 2003
• Figure 68: Norway has two market leaders by office assets, both with around EUR14bn in AuM, 2003
• Figure 69: BBVA has almost 84% share of the top 9 Spanish asset managers' office assets under management, 2003
• Figure 70: AB Svensk and Folksam lead the market in Sweden, with over EUR10bn in office AuM each, 2003
• Figure 71: The Dutch-owned Robeco leads the market in Switzerland with over EUR90bn in office AuM, 2003
• Figure 72: Deutsche Bank is the clear market leader in the UK industry with over EUR650bn in office AuM, 2003