Fund supermarkets in Spain 2007

Table of Contents

• OVERVIEW
  • Catalyst
  • Summary
• EXECUTIVE SUMMARY
  • The fund supermarket sector in Spain continues to develop, with providers expanding their range of products and services for both B2C and B2B markets
    • Spain' s bank-dominated mutual funds industry is registering a declining growth rate
    • Recent Spanish legislation supports the development and marketing of collective investments
    • Fund supermarkets are offering an expanded range of services
    • Fund supermarket distribution provides an expansionary forum for smaller fund managers, in particular, and a platform for the supermarkets themselves to explore broader business areas
• Table of Contents
• Table of figures
• MARKET BACKGROUND
  • Spain' s bank-dominated mutual funds industry is registering a declining growth rate
    • The mutual fund industry in Spain is worth EUR321 billion
      • In 2006, growth in mutual funds under management declined as a result of new legislation and shifting investor demand
• DISTRIBUTION DYNAMICS
  • Spanish banks dominate the mutual fund sector
    • Banks account for more than half of mutual fund distribution, according to two separate sources
      • Fund supermarket clients are young and technologically savvy
• REGULATION
  • Recent Spanish legislation supports the development and marketing of collective investments
    • Legislation has been aimed at improving the flexibility and efficiency of the collective investments sector, while enhancing investor protection
      • Fund supermarkets can offer access to new fund structures
      • The new law also created new opportunities for fund distribution
    • New regulations on prospectuses are intended to facilitate fund marketing
    • The revised income tax law increased competition from savings deposits
    • New EU legislation (UCITS directive and MiFID) will facilitate market development and enhance consumer protection
      • MiFID allows fund managers and distributors improved flexibility, but also introduces new obligations
• DISTRIBUTOR PROFILES
  • Fund supermarkets are offering an expanded range of services
    • Tressis offers the broadest selection of mutual funds
      • Pricing and investment stipulations are less competitive than those of other providers
      • Retail investors account for a minority of business
    • Inversis focuses on the intermediary market
      • Inversis maintains pricing parity
      • Just 25% of business is attributed to individual investors
    • Uno-e is a smaller player, marketing to individual investors
      • Pricing is more competitive than some larger platforms, but in line with the general industry trend
      • Uno-e is a retail-based provider
    • FondoTop focuses on investment funds for the retail market
      • Pricing is competitive
      • FondoTop' s primary market comprises individual customers
    • Spanish investors pay minimal fees for fund supermarket services
• DISTRIBUTION STRATEGIES
  • Fund supermarket distribution provides an expansionary forum for smaller fund managers, in particular, and a platform for the supermarkets themselves to explore broader business areas
    • Fund platforms rely on advanced technical capability for efficient processing and the flexibility to respond to market demand for new funds
    • Supermarkets are sustaining their growth by offering access to new fund structures and providing complementary services
    • For retail-focused supermarkets, pricing and branding are key; intermediary-based platforms emphasize operational support
    • Fund supermarkets support fund managers' expansion initiatives; however fund managers also have their part to play
    • Direct distribution and value-added services will shape the future development of the fund supermarket sector
• APPENDIX
  • Data
  • 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: Comparative overview of selected Spanish fund supermarkets
    • Table 2: Total mutual funds under management segmented by investor, EURm, 2002-2006
    • Table 3: Retail savings & investment asset balances, EURm, 2002-2006
    • Table 4: Retail mutual funds under management segmented by type of fund, EURm, 2002-2006
    • Table 5: Mutual fund subscriptions segmented by financial group, EURm, 2006 Q1-Q4
    • Table 6: Mutual fund redemptions segmented by financial group, EURm, 2006 Q1-Q4
    • Table 7: Total mutual fund assets segmented by distribution channel, Dec 2006
  • List of Figures
    • Figure 1: Retail mutual funds represent just over two-thirds of total mutual funds under management
    • Figure 2: Retail mutual funds accounted for 18% of total household savings and investment portfolios in 2006
    • Figure 3: Investors hold roughly one third of their fund assets in balanced funds or bond/money market funds
    • Figure 4: More than 60% of mutual fund subscriptions are channeled through banks
    • Figure 5: Banks and savings banks together account for more than 90% of fund redemptions
    • Figure 6: Fund supermarkets account for a miniscule proportion of fund assets today