Table of Contents
- Overview
- Executive Summary
- The global asset market is dominated by the US
- The Australian market tends to have a more focused range of fund options
- The UK and US markets are dominated by a few large players
- In mainland Europe most competitors are retail banks
- Fund supermarkets will continue to be an important distribution channel
for managed funds in the future
- Technological advances are driven by the requirements of advisers
- Intermediaries will require dedicated services and enhanced platform
capability
- Marketing of products ranges will become more crucial as platforms need
to differentiate their offerings
- Platforms must take steps to address the potential disadvantages of
fund supermarkets
- The future of supermarkets is bright
- The evolution of fund supermarkets into Wraps
- Table of Contents
- Table of figures
- Table of tables
- Market Background
- The global asset market is dominated by the US
- The US dominates the global market for mutual funds
- Germany' s mutual fund industry is worth USD3,817billion
- The mutual fund industry in Spain is worth EUR321 billion
- Superannuation funds dominate the Australian market
- Distribution dynamics
- The Distribution landscape varies dramatically across the markets
assessed in this study
- US multiple distribution channels have increased competition
- 65% of the funds in Spain are distributed through retail banks
- In Germany half of all mutual fund assets under management is
attributed to retail banks
- Australia' s biggest banks also dominate the fund supermarket space
- The target customer base for fund supermarkets varies across different
countries
- In the US and Australia fund supermarkets are targeted at an older
customer base
- The average US fund supermarket customer is middle-aged with an
above-average income
- The average Australian fund supermarket customer is middle-aged and
investing for retirement
- In mainland Europe fund supermarkets are targeted at a younger
customer base
- Spanish fund supermarket clients are at the opposite end of the
spectrum; young and technologically savvy
- Fund supermarket clients demand control and accessibility
- REgulation
- In Australia, regulations regarding superannuation are crucial to market
development
- Australians have benefited from the recent superannuation changes
- Individuals aged 60 and over can access their superannuation benefit
tax-free
- Limitations on concessionally taxed superannuation contributions
have changed
- Post- tax superannuation contributions are limited to AUD150,000 per
annum
- The transitional AUD1 million contribution limit served to boost
fund inflows
- Pan-European regulations have an impact on the development of all
distribution channels
- 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
- Competitor Focus
- The Australian market tends to have a more focused range of fund options
- There is a similar range of funds available in all other geographies
- The UK and US markets are dominated by a few large players
- Then a few small niche players in the UK who either white-label the
larger supermarkets or offer their own funds
- In mainland Europe most competitors are retail banks
- Distribution Dynamics
- The main driver of demand for fund supermarkets will continue to be the
preferences of advisors
- Fund supermarkets will continue to be an important distribution
channel for managed funds in the future
- The features of the fund supermarkets will evolve to meet advisor needs
- Technological advances are driven by the requirements of advisers
- The success of fund supermarkets is dependent on the efficiency of
this technology
- Intermediaries will require dedicated services and enhanced platform
capability
- Fund ranges through supermarkets will become more complex and diverse
- Supermarkets are sustaining their growth by offering access to new
fund structures and providing complementary services
- Volatility in the markets will result in an increased customer
demand for structured and alternative investments
- Interest in alternative asset classes is growing
- Fund supermarkets are pursuing growth by offering banking services and
investing in bricks and mortar
- Strategies for choosing funds will continue to grow in sophistication
- The cost of funds have fallen across all markets and this trend will
continue
- Marketing of products ranges will become more crucial as platforms need
to differentiate their offerings
- Relationships should be built with advisers and other distribution
channels
- Leading supermarkets in Germany are helping intermediaries to grow
their businesses
- White labeling of fund supermarkets through third parties is a key way
of targeting new customer segments
- Direct distribution and value-added services will shape the future
development of the fund supermarket sector
- Fund managers will continue to rely on direct sales, although
supermarkets represent a key element of heir distribution strategies
- Platforms must take steps to address the potential disadvantages of fund
supermarkets
- The future of supermarkets is bright
- The evolution of fund supermarkets into Wraps
- APPENDIX
- Definitions
- 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: Total retail assets under management, 2002-2006, USDm
- Table 2: Total retail mutual fund assets under management, 2002-2006,
USDm
- Table 3: Number of funds and number of suppliers hosted by platforms
surveyed in all geographies, 2007
- List of Figures
- Figure 1: The US dominates global retail asset markets
- Figure 2: The US mutual funds amounted to USD 9billion in 2006
- Figure 3: Fund supermarkets account for a very small proportion of
fund assets in Spain today
- Figure 4: Retail banks dominated Germany' s mutual fund sector in 2006
|
Related Report
|
View Cart
