Market Guide: Retail Investment Market in Austria 2006

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • The Austrian retail savings and investments sector has grown at a compound annual rate of 5.8% in the last 5 years; a similar rate of growth is expected between 2006 and 2010
    • Between 2001 and 2005, the Austrian retail savings and investments market experienced compound annual growth of 5.8%, driven primarily by growth in mutual funds and equities
    • Household portfolios will see increased allocations to mutual funds and equities between 2006 and 2010
    • Legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers
    • The leading Austrian banks and asset management companies control more than 90% and 60% of their markets, respectively
    • Banking groups also dominate the mutual funds sector
• Table of Contents
• Table of figures
• Table of tables
• MARKET OVERVIEW
  • Between 2001 and 2005, the Austrian retail savings and investments market experienced compound annual growth of 5.8%, driven primarily by growth in mutual funds and equities
    • Non-retail assets exceed retail holdings in all asset classes except for mutual funds
    • Deposits account for more than half of the Austrian retail savings and investments market
    • Since 2003, mutual funds and equities have accounted for a growing proportion of household wealth, primarily at the expense of deposits
• MARKET FORECASTS
  • Household portfolios will see increased allocations to mutual funds and equities between 2006 and 2010
    • Between 2006 and 2010, growth in the market will be driven by retail investment in mutual funds and equity
• MARKET REGULATION
  • Legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers
    • The Austrian Financial Market Authority (FMA) regulates the 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
    • Financial conglomerates face additional supervisory requirements
    • Legislative amendments augment the powers of the FMA
    • Banks and asset management companies must adjust their systems to provide for tax remittance
    • Recent legislation improves consumer and investor protection
    • Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection
    • Anti-money laundering legislation implies an additional administrative burden for banks
• COMPETITIVE MARKET STRUCTURE
  • The leading Austrian banks and asset management companies control more than 90% and 60% of their markets, respectively
    • Raiffeisen credit cooperatives comprise the largest segment of the Austrian banking sector, by number
    • The top 5 banks control 91% of the banking market, measured by total assets
    • The top 5 asset managers control 66% of the mutual funds market
    • Balanced funds represent the single largest percentage of Austrian mutual funds, by number
• MARKET LEADERS
  • Banking groups also dominate the mutual funds sector
    • Bank Austria Creditanstalt AG leads the Austrian banking sector; Pioneer Investments Austria (formerly Capital Invest) ranks third in the mutual funds market
    • BAWAG PSK AG trails the market leader in the Austrian banking market; BAWAG PSK Invest ranks fifth in the mutual funds sector
    • Oberbank AG ranks third among banks, by total assets
    • Bank fur Tirol und Vorarlberg AG is the fourth largest Austrian bank by total assets
    • BKS Bank AG rounds out the banking market leaders
    • Raiffeisen Kapitalanlage-Gesellschaft m.b.H. leads the mutual funds market, by AuM
    • ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H. (Erste Capital Management) is the second largest asset manager
    • Allianz Invest Kapitalanlagegesellschaft mbH has the fourth-highest mutual funds market share
• APPENDIX
  • Asset manager / Asset management company
  • Asset allocation fund
  • 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 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: Top 5 asset management companies by mutual fund assets under management (AuM), as at Dec 2005
    • Table 11: Number of mutual funds, segmented by type, as at Dec 2005
  • List of Figures
    • Figure 1: Retail assets account for less than one-third of the total equity and bonds markets
    • Figure 2: Deposits and mutual funds together represent 82% of retail savings
    • Figure 3: At 11.5%, compound annual growth in retail equity holdings outstripped all other asset classes between 2001 and 2005
    • Figure 4: Mutual funds and equity will continue to account for increasing proportions of household savings
    • Figure 5: Credit co-operatives account for 85% of the market, by number
    • Figure 6: Bank Austria Creditanstalt AG leads the banking sector, with a market share of 56%
    • Figure 7: Raiffeisen Kapitalanlage-Gesellschaft accounts for 22% of the mutual funds market
    • Figure 8: Equity funds and alternative funds together account for just over one-quarter of the market, by number