Market Guide: Retail Investment Market in Sweden 2006

Table of Contents

• EXECUTIVE SUMMARY - MARKET HIGHLIGHTS
  • Market overview
  • Market forecasts
  • Market regulation
  • Competitive Market structure
  • Market leaders
• INTRODUCTION
  • What is this report about?
  • Who is the target reader?
  • How to use this report
• CHAPTER 1 MARKET OVERVIEW
  • Introduction
    • The retail market accounts for over half all deposits in Sweden, but less than 50% in all other asset classes.
    • One third of all retail investments is held in deposits.
    • Since 2003, shares have accounted for a growing proportion of household wealth
• CHAPTER 2 MARKET FORECASTS
  • Introduction
  • Key findings
    • Mutual funds will account for an increasing proportion of household wealth
• CHAPTER 3 MARKET REGULATION
  • Introduction
  • Key findings
    • Finansinspektionen regulates all companies operating in Swedish financial markets; there is self-regulation by industry associations
    • Recent regulations pertaining to financial advice, money laundering and VAT on financial services affect banks, asset managers and investment companies alike
      • The Sixth VAT directive disincentivises outsourcing and unbundling of products
    • For banks, Basel II capital adequacy requirements imply additional investment in risk management expertise and in IT systems to calculate risk
    • Amendments to investment fund regulations and the Swedish Investment Funds Association' s Code of Conduct aim to improve transparency in asset management companies
    • Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection
• CHAPTER 4 COMPETITIVE MARKET STRUCTURE
  • Introduction
  • Key findings
    • The majority of banks in Sweden are Savingsbanks
    • Banks distribute primarily through their branch networks; but telephone and Internet banking are widely used
    • The ' big four' commercial banks dominate Sweden' s banking industry
    • The ' big four' are also the key players in the mutual funds industry
    • Equity funds represent the largest category of available investment funds in Sweden
    • Competitors in securities trading include investment companies and other authorized institutions
• CHAPTER 5 MARKET LEADERS
  • Introduction
  • Key findings
    • Svenska Handelsbanken is the market leader, based on total deposits to commercial banks; it has the fourth largest asset management company
    • SEB trails the market leader in both the banking and mutual funds sectors
    • ForeningSparbanken ranks third among banks and fourth among asset managers; its asset management arm, Robur, leads the mutual funds industry.
    • Nordea Bank is the fourth highest ranked bank by total deposits; Nordea Fonder is the third largest asset manager
• APPENDIX
  • Definitions
    • Asset manager / Asset management company
    • Bank
    • Collective Investment Scheme
    • Friendly society
    • Fund of funds
    • Hedge fund
    • Investment company
    • Non-retail market
    • Retail market
    • Tenant ownership rights
    • UCITS
  • Further reading
    • Datamonitor Savings & Investments SPP
      • Interactive Databases
      • Reports
    • Related Global Wealth Service SPP Reports
      • Interactive Databases
      • Market Reports
      • Strategic Insight Reports
      • Wealth Management Competitor Tracker
  • SPP writing team
  • List of Tables
    • Table 1: Total Savings & Investments segmented by retail v institutional, SEK bn, Dec 2005
    • Table 2: Total Savings & Investments segmented by retail v institutional, in percentages, Dec 2005
    • Table 3: Retail Savings & Investments, segmented by asset class, SEKm, Dec 2005
    • Table 4: Retail Savings & Investments, segmented by asset class, SEKbn, 2001 - 2005
    • Table 5: Retail Savings & Investments, segmented by asset class, in percentages, 2001 - 2005
    • Table 6: Retail Savings & Investments, segmented by asset class, SEKbn, 2006 - 2010
    • Table 7: Retail Savings & Investments, segmented by asset class, in percentages, 2006 - 2010
    • Table 8: Number of banks segmented by type, Dec 2005
    • Table 9: Top 5 banks by total deposits, Dec 2005
    • Table 10: Top 5 asset management companies by Assets under Management (AuM), Dec 2005
    • Table 11: Number of mutual funds segmented by type, Dec 2005
  • List of Figures
    • Figure 1: Bonds are the largest asset class in Sweden in 2005
    • Figure 2: Deposits represent one-third of household savings but equity and mutual funds together account for 59%
    • Figure 3: Deposits account for the single highest proportion of household assets, but the proportionate value of shares has been increasing
    • Figure 4: The decline in household assets in deposits will be offset by increases in assets in mutual funds and equities
    • Figure 5: More than half of all Swedish banks are Savingsbanks
    • Figure 6: Svenska Handelsbanken controls one-quarter of the banking market, measured by total deposits
    • Figure 7: Robur Swedbank manages one-quarter of all mutual fund assets
    • Figure 8: Over 60% of all mutual funds offered are equity-based