The Future of Fund Supermarkets 2007

Content

• Overview
• Catalyst
• Summary
  • Executive Summary
  • The Global Asset Market Is Dominated By The Us
  • The Australian Market Tends To Have A More Focused Range of Fund Options
  • The Uk And Us Markets Are Dominated By A Few Large Players
  • In Mainland Europe Most Competitors Are Retail Banks
  • Fund Supermarkets Will Continue To Be An Important Distribution Channel For Managed Funds In The Future
  • Technological Advances Are Driven By The Requirements of Advisers
  • Intermediaries Will Require Dedicated Services And Enhanced Platform Capability
  • Marketing of Products Ranges Will Become More Crucial As Platforms Need To Differentiate Their offerings
  • Platforms Must Take Steps To Address The Potential Disadvantages of Fund Supermarkets
  • The Future of Supermarkets Is Bright
  • The Evolution of Fund Supermarkets Into Wraps
  • Table of Figures
  • Table of Tables
  • Market Background
  • The Global Asset Market Is Dominated By The Us
  • The Us Dominates The Global Market For Mutual Funds
  • Germany's Mutual Fund Industry Is Worth Usd3,817billion
  • The Mutual Fund Industry In Spain Is Worth Eur321 Billion
  • Superannuation Funds Dominate The Australian Market
  • Distribution Dynamics
  • The Distribution Landscape Varies Dramatically Across The Markets Assessed In This Study
  • Us Multiple Distribution Channels Have Increased Competition
  • 65% of The Funds In Spain Are Distributed Through Retail Banks
  • In Germany Half of All Mutual Fund Assets Under Management Is Attributed To Retail Banks
  • Australia's Biggest Banks Also Dominate The Fund Supermarket Space
  • The Target Customer Base For Fund Supermarkets Varies Across Different Countries
  • In The Us And Australia Fund Supermarkets Are Targeted At An Older Customer Base
  • The Average Us Fund Supermarket Customer Is Middle-Aged With An Above-Average Income
  • The Average Australian Fund Supermarket Customer Is Middle-Aged And Investing For Retirement
  • In Mainland Europe Fund Supermarkets Are Targeted At A Younger Customer Base
  • Spanish Fund Supermarket Clients Are At The Opposite End of The Spectrum; Young And Technologically Savvy
  • Fund Supermarket Clients Demand Control And Accessibility
  • Regulation
  • In Australia, Regulations Regarding Superannuation Are Crucial To Market Development
  • Australians Have Benefited From The Recent Superannuation Changes
  • Individuals Aged 60 And Over Can Access Their Superannuation Benefit Tax-Free
  • Limitations On Concessionally Taxed Superannuation Contributions Have Changed
  • Post- Tax Superannuation Contributions Are Limited To Aud150,000 Per Annum
  • The Transitional Aud1 Million Contribution Limit Served To Boost Fund Inflows
  • Pan-European Regulations Have An Impact On The Development of All Distribution Channels
  • Upcoming Eu Legislation (Ucits Directive And Mifid) Facilitates Market Development And Enhances Consumer Protection
  • Mifid Allows Fund Managers And Distributors Improved Flexibility, But Also Introduces New Obligations
  • Competitor Focus
  • The Australian Market Tends To Have A More Focused Range of Fund Options
  • There Is A Similar Range of Funds Available In All Other Geographies
  • The Uk And Us Markets Are Dominated By A Few Large Players
  • Then A Few Small Niche Players In The Uk Who Either White-Label The Larger Supermarkets Or offer Their Own Funds
  • In Mainland Europe Most Competitors Are Retail Banks
  • Distribution Dynamics
  • The Main Driver of Demand For Fund Supermarkets Will Continue To Be The Preferences of Advisors
  • Fund Supermarkets Will Continue To Be An Important Distribution Channel For Managed Funds In The Future
  • The Features of The Fund Supermarkets Will Evolve To Meet Advisor Needs
  • Technological Advances Are Driven By The Requirements of Advisers
  • The Success of Fund Supermarkets Is Dependent On The Efficiency of This Technology
  • Intermediaries Will Require Dedicated Services And Enhanced Platform Capability
  • Fund Ranges Through Supermarkets Will Become More Complex And Diverse
  • Supermarkets Are Sustaining Their Growth By offering Access To New Fund Structures And Providing Complementary Services
  • Volatility In The Markets Will Result In An Increased Customer Demand For Structured And Alternative Investments
  • Interest In Alternative Asset Classes Is Growing
  • Fund Supermarkets Are Pursuing Growth By offering Banking Services And Investing In Bricks And Mortar
  • Strategies For Choosing Funds Will Continue To Grow In Sophistication
  • The Cost of Funds Have Fallen Across All Markets And This Trend Will Continue
  • Marketing of Products Ranges Will Become More Crucial As Platforms Need To Differentiate Their offerings
  • Relationships Should Be Built With Advisers And Other Distribution Channels
  • Leading Supermarkets In Germany Are Helping Intermediaries To Grow Their Businesses
  • White Labeling of Fund Supermarkets Through Third Parties Is A Key Way of Targeting New Customer Segments
  • Direct Distribution And Value-Added Services Will Shape The Future Development of The Fund Supermarket Sector
  • Fund Managers Will Continue To Rely On Direct Sales, Although Supermarkets Represent A Key Element of Heir Distribution Strategies
  • Platforms Must Take Steps To Address The Potential Disadvantages of Fund Supermarkets
  • The Future of Supermarkets Is Bright
  • The Evolution of Fund Supermarkets Into Wraps
• Appendix
  • Definitions
• Ucits
  • Mifid
  • 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: Total Retail Assets Under Management, 2002-2006, Usdm
  • Table 2: Total Retail Mutual Fund Assets Under Management, 2002-2006, Usdm
  • Table 3: Number of Funds And Number of Suppliers Hosted By Platforms Surveyed In All Geographies, 2007
• List of Figures
  • Figure 1: The Us Dominates Global Retail Asset Markets
  • Figure 2: The Us Mutual Funds Amounted To Usd 9billion In 2006
  • Figure 3: Fund Supermarkets Account For A Very Small Proportion of Fund Assets In Spain Today
  • Figure 4: Retail Banks Dominated Germany's Mutual Fund Sector In 2006