Market Guide: Retail Investment Market in Denmark 2006

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • The Danish retail savings and investments sector hasgrown at a compound annual rate of 12.9% in the last 5 years; however areduced rate of growth is expected between 2006 and 2010
    • Household portfolios will see increased allocations tomutual funds and equities between 2006 and 2010
    • Legislation aimed at improving investor confidence andconsumer protection imposes additional obligations on providers
    • The leading Danish banks and asset management companiescontrol more than 70% of their respective markets
    • The top two banks also lead the Danish mutual fundssector
• Table of Contents
• Table of figures
• Table of tables
• MARKET OVERVIEW
  • Between 2001 and 2005, the Danish retail savings andinvestments market experienced compound annual growth of 12.9%, drivenprimarily by growth in mutual funds and equities
    • Retail assets outstrip non-retail holdings in thedeposits and mutual funds markets
    • Deposits account for just under half of the Danishretail savings and investments market
    • Since 2001, mutual funds have accounted for a growingproportion of household wealth
• MARKET FORECASTS
  • Household portfolios will see increased allocations tomutual funds and equities between 2006 and 2010
    • Mutual funds will continue to account for an increasingproportion of household wealth
• MARKET REGULATION
  • Legislation aimed at improving investor confidence andconsumer protection imposes additional obligations on providers
    • The Danish Financial Supervisory Authority regulates thesavings and investments sector
    • For banks and investment companies, Basel II capitaladequacy requirements imply additional investment in risk managementexpertise and in IT systems to calculate risk
    • Anti-money laundering legislation implies an additionaladministrative burden for banks
    • New legislation updates the regulations on collectiveinvestments and financial services providers
    • Investment firms are subject to client moneyrequirements
    • Foreign collective undertakings are subject to DFSAcontrol and require marketing approval
    • Upcoming EU legislation (UCITS directive and MiFID)facilitates market development and enhances consumer protection
• COMPETITIVE MARKET STRUCTURE
  • The leading Danish banks and asset management companiescontrol more than 70% of their respective markets
    • Domestic institutions comprise the largest segment ofthe Danish banking sector, by number
    • The top 5 banks control 71% of the banking market,measured by total assets
    • The top 5 asset managers control 78% of the mutual fundsmarket, measured by assets under management
• MARKET LEADERS
  • The top two banks also lead the Danish mutual fundssector
    • Danske Bank & BG Bank lead the Danish bankingsector; Danske Invest is the mutual funds market leader
    • Nordea Bank trails the market leader in the Danishretail banking market; Nordea Invest ranks second in the mutual fundssector
    • Jyske Bank ranks third among banks; Nykredit PortefoljeAdministration is the third largest asset manager
    • FIH Group (Kaupthing Bank) is the fourth largest Danishbank by total assets; BankInvest ranks fourth among asset managers, byAuM
    • Sydbank rounds out the banking market leaders;Investeringsforeningen RHAM Value Partner has the fifth-highest mutualfunds market share
• 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 byretail v institutional, DKKm, as at Dec 2005
  • Table 2: Total Savings & Investments segmented byretail v institutional, in percentages, as at Dec 2005
  • Table 3: Retail Savings & Investments, segmentedby asset class, DKKm, as at Dec 2005
  • Table 4: Retail Savings & Investments, segmentedby asset class, DKKm, 2001 - 2005
  • Table 5: Retail Savings & Investments, segmentedby asset class, in percentages, 2001 - 2005
  • Table 6: Retail Savings & Investments, segmentedby asset class, DKKm, 2006 - 2010
  • Table 7: Retail Savings & Investments, segmentedby asset class, in percentages, 2006 - 2010
  • Table 8: Number of banks segmented by type, as at Dec2005
  • Table 9: Top 5 banks by total assets, as at Dec 2005
  • Table 10: Top 5 asset management companies by assetsunder management (AuM), as at Dec 2005
• List of Figures
  • Figure 1: Retail assets account for more than half ofdeposits and mutual funds, but less than one-fifth of equity and bonds
  • Figure 2: Deposits and mutual funds together accountfor roughly 80% of retail savings
  • Figure 3: Deposits account for the single highestproportion of household assets, but the proportional value of mutualfunds has been increasing
  • Figure 4: The decline in household assets in depositswill be offset by increases in assets in mutual funds and equities
  • Figure 5: Danish banks and savings banks account for86% of the market, by number
  • Figure 6: Danske Bank & BG Bank lead the bankingsector, with a market share of 38%
  • Figure 7: Danske Invest accounts for 24% of the mutualfunds (investment associations) market