Capital Protected and Structured Products in Europe 2007

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • Market Context
  • Customer Focus
• Table of Contents
• Table of figures
• Table of tables
• MARKET CONTEXT
  • Introduction
  • Key findings
  • Demand for capital protected products is on the increase
    • Wealthy European clients are demanding alternative investments because they are keen to diversify
  • Demand for capital protected and structured products is likely to remain strong and steady
  • Institutional demand is likely to increase by around 5-10% per year
    • Lack of understanding and insufficient promotion are the major barriers to future take-up of capital protected and structured products by institutional investors
  • High net worth interest in capital protected & structured products is predicted to grow by up to 0-10% per year
    • A lack of understanding and product expense are the main barriers to high net worth take-up of capital protected & structured products
  • Mass market demand for capital protected & structured products is likely to increase over the next 3 years
    • Lack of client understanding and concern over product expense will be the likely barriers to mass market take-up of capital protected & structured products
  • ADI, AXA and Credit Agricole are perceived as the leading competitors for capital protected and structured products in France
  • Deutsche Bank has the best reputation in Germany
  • Credit Suisse is perceived as the top player in Italy
  • Allianz Dresdner is perceived as the market leader for capital protected & structured products in Spain
  • Barclays, Goldman Sachs & HSBC have the best reputation in the UK market
  • ADI is a specialist alternative asset management company
  • Deutsche Bank Asset Management has been active for more than 30 years in Germany and more than 50 years in the UK
    • Deutsche Bank has recently launched a client structured product portal
  • Credit Suisse is in the top ten global financial institutions in terms of assets under management
  • Allianz Dresdner has more than 100 years of asset management experience to its name
  • Data
• CUSTOMER FOCUS
  • Introduction
  • Key findings
  • The high net worth segment is the biggest customer group in Europe for capital protected funds, while institutional clients are the largest for structured products
    • The main customer group for capital protected products varies widely between European countries
    • In France & Germany the high net worth segment shows the most demand for structured products
  • Institutional investors are likely to be the biggest customer base for these products in the future
    • UK asset managers have the strongest belief that the institutional market will remain the biggest customer group for capital protected products
    • Institutional clients will be the main customer group for structured products in all countries apart from Germany, where the mass market is expected to dominate
  • The mass market is likely to see the biggest increase in demand for capital protected & structured products
  • The retail banking channel is the most successful method of distributing capital protected and structured products to the mass market in Europe
    • The mass market for capital protected and structured products in the UK is dominated by independent advisors
  • High net worth investors prefer retail banks as a distribution channel
    • Italian high net worth customers prefer to purchase capital protected & structured products via a private bank wealth manager, while in the UK independent advisors are preferred
  • Institutional investors across Europe tend to purchase capital protected and structured products directly
    • Direct sales are the most popular channel in all countries but France & Italy
• APPENDIX
  • Definitions
    • Alternative investment
    • Capital protected product
    • High net worth (HNW)
    • Liquid assets
    • Mass affluent
    • Private client
    • Structured product
    • Traditional investment
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: In your opinion, what is the most important reason why wealthy clients are demanding alternative investments?
  • Table 2: What type of alternative investment fund is most in demand by your wealthy clients or the wealth managers who offer your funds to their clients?
  • Table 3: Thinking of the next 3 years, how do you think demand for the following alternative investments will change among institutional investors?
  • Table 4: Thinking of institutional investors, what do you think will be the major barriers to wider take-up of the following alternative investments in the next three years?
  • Table 5: Thinking of the next 3 years, how do you think demand for the following alternative investments will change among high net worth investors?
  • Table 6: Thinking of high net worth customers, what do you think will be the major barriers to wider take-up of the following alternative investments in the next three years?
  • Table 7: Thinking of the next three years, how do you think demand for the following alternative investments will change among mass market investors?
  • Table 8: Thinking of mass market customers, what do you think will be the major barriers to wider take-up of the following alternative investments in the next three years?
  • Table 9: In France, who are the 3 best asset managers at building capital protected and structured products?
  • Table 10: In Germany, who are the 3 best asset managers at building capital protected and structured products?
  • Table 11: In Italy, who are the 3 best asset managers at building capital protected and structured products?
  • Table 12: In Spain, who are the 3 best asset managers at building capital protected and structured products?
  • Table 13: In the UK, who are the 3 best asset managers at building capital protected and structured products?
  • Table 14: Number of capital protected funds between 2002-2006 for 5 European countries
  • Table 15: Net assets of capital protected funds between 2002-2006 for 5 European countries, EUR
  • Table 16: Which is your biggest customer group for the following products?
  • Table 17: In 3 years, which will be your biggest customer group for the following products?
  • Table 18: For the following investments, from which customer base will the most increase in demand come in 3 year' s time?
  • Table 19: What do you think is the best way for the following alternative investments to be distributed to mass market investors?
  • Table 20: What do you think is the best way for the following alternative investments to be distributed to high net worth investors?
  • Table 21: What do you think is the best way for the following alternative investments to be distributed to institutional investors?
• List of Figures
  • Figure 1: In spite of France' s minor blip, the number of capital-protected funds have shown steady growth throughout Europe
  • Figure 2: Net assets of capital-protected funds have been growing particularly strongly in France and Luxembourg
  • Figure 3: In your opinion, what is the most important reason why wealthy clients are demanding alternative investments?
  • Figure 4: There is no general consensus as to the main customer group for capital protected products between countries in Europe
  • Figure 5: Institutions are the main client group for structured products across Europe but demand from high net worths is stronger in Germany
  • Figure 6: Institutions are expected to be the biggest customer group for capital protected products in 3 years' time, apart from Germany and Italy
  • Figure 7: Institutions will be the biggest group for structured products in 3 years' time across Europe, apart from Germany, where it is expected to be the mass market
  • Figure 8: What do you think is the best way for capital protected products to be distributed to mass market investors?
  • Figure 9: What do you think is the best way for structured products to be distributed to mass market investors?
  • Figure 10: What do you think is the best way for capital protected products to be distributed to high net worth investors?
  • Figure 11: What do you think is the best way for structured products to be distributed to high net worth investors?
  • Figure 12: What do you think is the best way for capital protected products to be distributed to institutional investors?
  • Figure 13: What do you think is the best way for structured products to be distributed to institutional investors?