Market Guide: Retail Investment Market in France 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
    • Retail savings and investments account for 22% of the total market in France
    • Just under 90% of retail assets is held in deposits and mutual funds
    • Since 2002, the proportional value of retail assets held in equities investments has been increasing
• CHAPTER 2 MARKET FORECASTS
  • Introduction
  • Key findings
    • Deposits will continue to account for the majority of household wealth, with a marginal increase in the proportion of equity
• CHAPTER 3 MARKET REGULATION
  • Introduction
  • Key findings
    • The Banking Commission of the Central Bank and the Financial Markets Authority are the primary regulators of the French savings and investments sector
    • For banks and investment companies, Basel II capital adequacy requirements imply additional investment in risk management expertise and in IT systems to calculate risk
    • Regulatory amendments affect internal control and compliance at asset management companies and investment companies
    • Banks, asset management companies and investment companies which belong to financial conglomerates face additional supervisory requirements
    • Financial services companies must adapt their accounting systems to meet new standards for financial statements
    • Listed financial institutions have new reporting obligations regarding insider trading
    • New legislation for listed entities aims at enhancing investor confidence
    • Asset management companies have increased flexibility in fund management
    • Three new vehicles augment the range of investment options
    • Distance marketing rules enhance consumer protection
    • Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection
    • Proposed anti-money laundering legislation implies an additional administrative burden for banks
• CHAPTER 4 COMPETITIVE MARKET STRUCTURE
  • Introduction
  • Key findings
    • The largest segment of banks in France comprises foreign commercial banks
    • Consolidation in the French banking sector continues
    • Banks distribute primarily through their branch networks, but telephone and Internet banking are widely used
    • The top 5 banks control 77% of the banking market, measured by total assets
    • Several leading asset managers belong to banking groups
    • Over 60% of available mutual funds comprises balanced funds or equity funds
    • Competitors in securities trading include investment companies and other authorized institutions
• CHAPTER 5 MARKET LEADERS
  • Introduction
  • Key findings
    • As at December 2005, BNP Paribas led the banking market, based on total assets; its asset management division is BNP Paribas Asset Management
    • The Crédit Agricole Group trailed the market leader in the banking sector; its asset management arm is Crédit Agricole Asset Management
    • Societé Générale Group ranked third among banks, measured by total assets; its asset management arm is Societé Générale Asset Management
    • In 2005, Crédit Mutuel had the fourth largest share of the banking market, measured by total assets
    • The Banque Populaire Group ranks fifth among banks
    • Axa IM and IXIS Asset Management are key players in the market for mutual funds
• 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
    • 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
  • SPP writing team
  • List of Tables
    • Table 1: Total Savings & Investments segmented by retail v institutional, EURm, as at Dec 2005
    • Table 2: Total Savings & Investments segmented by retail v institutional, in percentages, as at Dec 2005
    • Table 3: Retail Savings & Investments, segmented by asset class, EURm, as at Dec 2005
    • Table 4: Retail Savings & Investments, segmented by asset class, EURm, 2001 - 2005
    • Table 5: Retail Savings & Investments, segmented by asset class, in percentages, 2001 - 2005
    • Table 6: Retail Savings & Investments, segmented by asset class, EURm, 2006 - 2010
    • Table 7: Retail Savings & Investments, segmented by asset class, in percentages, 2006 - 2010
    • Table 8: Number of banks segmented by type, as at Dec 2005
    • Table 9: Top 5 banks by total assets, as at Dec 2005
    • Table 10: Number of mutual funds, segmented by type, as at Dec 2005
  • List of Figures
    • Figure 1: Retail savings and investments account for 70% of deposits, but less than 30% in all other asset classes
    • Figure 2: Deposits account for 65% of retail savings and investments in France in 2005
    • Figure 3: Deposits consistently account for the single highest proportion of household assets, followed by mutual funds
    • Figure 4: Over the next 5 years, the proportional distribution of household assets will remain largely consistent, with marginal increases in equity and deposits
    • Figure 5: As at December 2005, foreign commercial banks dominated the French banking sector, by number
    • Figure 6: As at December 2005, BNP Paribas led the market, with 24% of total assets of the banking sector
    • Figure 7: As at December 2005, balanced funds and equity funds together represented 63% of mutual funds, by number of funds