European Mutual Funds Databook 2004

CHAPTER 1 INTRODUCTION 23
What is this report about? 23
Who is the target reader? 23
How to use this report 23
CHAPTER 2 EUROPEAN MUTUAL FUNDS 25
Key Findings 25
European Overview 26
Product Segmentation 37
Performance and Competition 41
Forecasts 42
European overview data tables 45
CHAPTER 3 BELGIUM 52
Market Overview 52
Distribution 56
Performance and Competition 57
Forecast 61
Data Tables 62
CHAPTER 4 DENMARK 67
Market Overview 67
Performance and Competition 72
Forecast 73
Data Tables 74
CHAPTER 5 FRANCE 79
Market Overview 79
Distribution 86
Performance and Competition 87
Forecast 90
Data Tables 91
CHAPTER 6 GERMANY 96
Market Overview 96
Distribution 102
Performance and Competition 105
Forecast 109
Data Tables 110
CHAPTER 7 ITALY 116
Market Overview 116
Distribution 120
Performance and Competition 121
Forecast 126
Data Tables 127
CHAPTER 8 THE NETHERLANDS 132
Market Overview 132
Performance and Competition 137
Forecast 141
Data Tables 142
CHAPTER 9 NORWAY 146
Market Overview 146
Performance and Competition 150
Forecast 151
Data Tables 152
CHAPTER 10 SPAIN 155
Market Overview 155
Distribution 160
Performance and Competition 161
Forecast 165
Data Tables 167
CHAPTER 11 SWEDEN 173
Market Overview 173
Performance and Competition 178
Forecast 179
Data Tables 180
CHAPTER 12 SWITZERLAND 185
Market Overview 185
Forecast 189
Data Tables 190
CHAPTER 13 THE UNITED KINGDOM 194
Market Overview 194
Distribution 200
Performance and Competition 201
Forecast 202
Data Tables 204
CHAPTER 14 APPENDIX 209
Macroeconomic Data 209
Definitions 212
Research Methodology 213
Data Integracy 214
Further Reading 214
SPP writing team 216

List of Tables
Table 1: Top 5 Belgian fund management groups by total fund management group median fund performance 1999-2003 59
Table 2: Total Belgium mutual funds under management segmented by type of investor 1999-2003, EURm 62
Table 3: Belgian retail mutual funds under management segmented by domicile 1999-2003, EURm 62
Table 4: Belgium retail mutual funds under management segmented by type of fund 1999-2003, EURm 63
Table 5: Belgian mutual funds gross inflows segmented by asset class 1999-2003, EURm 63
Table 6: Total Belgium mutual funds gross outflows segmented by asset class 1999-2003, EURm 64
Table 7: Total Belgium mutual funds net inflows segmented by asset class 1999-2004, EURm 64
Table 8: Total Belgium retail mutual fund assets per adult 1999-2003, EUR 65
Table 9: Belgium mutual fund distribution channels 2003 65
Table 10: Belgium mutual fund median performance by type of fund, 1999-2003 EURm 65
Table 11: Top 5 largest Belgian fund management groups by total fund management group net assets 2003, EURm 66
Table 12: Belgium forecasted retail and non-retail funds 2003-2008, EURm 66
Table 13: Total Danish mutual funds segmented by investor 1999-2003 74
Table 14: Danish retail mutual funds assets under management segmented by type of fund 1999 -2003, DKKm 74
Table 15: Danish non-retail mutual funds under management segmented by type of fund 1999-2003 75
Table 16: Total Danish mutual funds gross inflows segmented by asset class, 1999-2003 75
Table 17: Total Danish mutual funds gross outflows segmented by asset class, 1999-2003 76
Table 18: Total Danish mutual funds net inflows segmented by asset class, 1999-2003 76
Table 19: Denmark retail mutual fund assets per adult 1999-2003, DKK 77
Table 20: Total Danish mutual fund principal competitors ranked by assets under management, 1999-2003 77
Table 21: Denmark forecasted retail and non-retail fund growth 2003-2008 78
Table 22: Top 5 French mutual fund management groups by total group median fund performance 1999-2003 89
Table 23: Total French mutual funds under management segmented by type of investor 1999-2003, EURm 91
Table 24: French retail mutual funds assets under management segmented by domicile 1999 - 2003, EURm 92
Table 25: French retail mutual funds under management segmented by type of fund 1999-2003, EURm 92
Table 26: French non-retail mutual funds under management segmented by type of fund 2001-2003, EURm 93
Table 27: French retail mutual fund assets per adult 1999-2003, EUR 93
Table 28: French mutual fund distribution networks 2003 94
Table 29: French mutual fund median % performance segmented by type of fund 1999-2003 94
Table 30: Top 7 French mutual fund management groups by total group fund net assets under management 2003, EURm 95
Table 31: French retail and non-retail funds under management forecasted growth 2003-2008, EURm 95
Table 32: German top five mutual fund groups by median performance 2001-2003 107
Table 33: German top five mutual fund groups by median performance 1999-2000 (Continued) 108
Table 34: Total German mutual funds under management segmented by type of investor 1999 - 2003, EURm 110
Table 35: German retail mutual funds assets under management segmented by domicile 1999-2003, EURm 110
Table 36: German retail mutual funds total assets under management segmented by type of fund 1999-2003, EURm 111
Table 37: German non-retail mutual funds total assets under management segmented by type of fund 1999 - 2003, EURm 111
Table 38: Total German mutual funds gross inflows segmented by asset class 1999-2003, EURm 112
Table 39: Total German mutual funds gross outflows segmented by asset class, 1999-2003 112
Table 40: Total German mutual funds net inflows segmented by type of fund 1999-2003, EURm 113
Table 41: German retail mutual funds assets per adult 1999-2003, EUR 113
Table 42: German mutual fund distribution channels 2000-2002 113
Table 43: German mutual fund performance segmented by median performance and type of fund 1999-2003 114
Table 44: Top 5 German mutual fund management group by total fund net assets 2003, EURm 114
Table 45: German forecasted retail and non-retail fund growth 2003-2008, EURm 115
Table 46: Top five Italian fund management groups according to median fund performance 1999-2003 124
Table 47: Total Italian mutual funds segmented by investor 1999 - 2003, EURm 127
Table 48: Italian retail mutual funds assets under management segmented by domicile 1999 - 2003, EURm 127
Table 49: Italian retail mutual funds total assets under management segmented by type of fund 1999-2003, EURm 127
Table 50: Total Italian mutual funds gross inflows segmented by asset class 1999-2003 128
Table 51: Total Italian mutual funds gross outflows segmented by asset class 1999 - 2003 128
Table 52: Total Italian mutual funds net inflows segmented by asset class 1999 - 2003 129
Table 53: Italian retail mutual funds per adult 1999-2003 129
Table 54: Italian mutual fund distribution channels 2000 129
Table 55: Italian mutual fund performance segmented by type of fund and median fund performance 1999-2003 130
Table 56: Top Italian mutual fund groups by total fund net assets 2003, EURm 130
Table 57: Italian forecasted retail funds under management 2003-2008, EURm 131
Table 58: Top five fund management groups by median group performance 2001-2003 139
Table 59: Top five fund management groups by median group performance 1999-2000 (continued) 140
Table 60: Total Dutch mutual funds under management segmented by investor 1999 - 2003 142
Table 61: Dutch retail mutual funds under management segmented by type of fund 1999-2003, EURm 142
Table 62: Dutch non-retail mutual funds under management segmented by type of fund 1999 -2003 143
Table 63: Total Dutch mutual funds net inflows segmented by type of fund 1999 - 2003, EURm 143
Table 64: Netherlands retail mutual fund assets per adult 1999-2003, EURm 144
Table 65: Netherlands % median fund performance segmented by type of fund 1999-2003 144
Table 66: Netherlands fund management groups by total fund net assets 2003, EURm 144
Table 67: Netherlands retail and non-retail forecasted funds under management growth 2003-2008, EURm 145
Table 68: Norway mutual funds by total funds under management 2003, NOKm 150
Table 69: Total Norwegian mutual funds under management segmented by type of investor 1999-2003, NOKm 152
Table 70: Norwegian retail mutual funds under management segmented by type of fund 1999-2003, NOKm 152
Table 71: Total Norwegian mutual funds gross inflows segmented by type of fund 1999-2003, NOKm 153
Table 72: Total Norwegian mutual funds gross outflows segmented by type of fund 1999-2003, NOKm 153
Table 73: Total Norwegian mutual funds net inflows segmented by type of fund 1999-2003, NOKm 154
Table 74: Norwegian retail mutual fund assets per adult 1999-2003, NOK 154
Table 75: Norwegian forecasted retail and non-retail funds under management growth 2003-2008, NOKm 154
Table 76: Top 5 fund management groups by median group fund performance 1999-2003 164
Table 77: Total Spanish mutual funds under management segmented by investor 1999-2003, EURm 167
Table 78: Spanish retail mutual funds segmented by domicile, 1999-2003 167
Table 79: Spanish retail mutual funds under management segmented by type of fund 1999-2003, EURm 168
Table 80: Spanish non-retail mutual funds under management segmented by type of fund 1999-2003, EURm 168
Table 81: Total Spanish mutual funds gross inflows segmented by type of fund 1999-2003, EURm 169
Table 82: Total Spanish mutual funds gross outflows segmented by type of fund 1999-2003, EURm 169
Table 83: Total Spanish mutual funds net inflows segmented by type of fund 1999-2003, EURm 170
Table 84: Spanish retail mutual fund assets per adult 1999-2003, EURm 170
Table 85: Spanish mutual fund distribution channels 2003 170
Table 86: Spanish % median fund performance by type of fund 1999-2003 171
Table 87: Spanish mutual fund groups total fund net assets July 2003, EURm 171
Table 88: Spanish forecasted retail and non-retail assets under management 2003-2008, EURm 172
Table 89: Total Swedish mutual funds under management segmented by type of investor 1999-2003, SEKm 180
Table 90: Swedish retail mutual funds under management segmented by domicile 1999-2003, SEKm 180
Table 91: Swedish retail mutual funds, segmented by type of fund 1999-2003, SEKm 181
Table 92: Swedish non-retail mutual funds under management segmented by type of fund 1999-2003 181
Table 93: Total Swedish mutual funds gross inflows segmented by type of fund 1999-2003, SEKm 182
Table 94: Total Swedish mutual funds gross outflows segmented by type of fund 1997-2001, SEKm 182
Table 95: Total Swedish mutual funds net inflows segmented by type of fund 1999-2003, SEKm 183
Table 96: Swedish retail mutual funds per adult 1999-2003 183
Table 97: Sweden mutual funds ranked by funds management 2001-2003, SEKm 183
Table 98: Sweden forecasted retail and non-retail assets under management 2003-2008, SEKm 184
Table 99: Total Switzerland mutual funds under management segmented by type of investor 1999-2003, CHRm 190
Table 100: Swiss retail mutual funds under management segmented by domicile 1999-2003, CHFm 190
Table 101: Swiss retail mutual funds under management segmented by type of fund 1999-2003, CHFm 191
Table 102: Total Swiss mutual funds gross inflows segmented by type of fund 1999-2003, CHFm 191
Table 103: Total Swiss mutual funds gross outflows segmented by type of fund 1999-2003, CHFm 192
Table 104: Total Swiss mutual funds net inflows segmented by type of fund 1999-2003, CHFm 192
Table 105: Switzerland retail mutual fund assets per adult 1999-2003 192
Table 106: Switzerland forecast retail and non-retail assets under management 1999-2003, CHFm 193
Table 107: Total UK mutual funds segmented by investor 1999-2003 204
Table 108: UK retail mutual funds under management segmented by domicile 1999 - 2003, GBPm 204
Table 109: UK retail mutual funds segmented by type of fund 1999 - 2003, GBPm 205
Table 110: UK non-retail mutual funds under management segmented by type of fund 1999 - 2003, GBPm 205
Table 111: Total UK retail fund assets per UK adult 1999-2003, GBP 206
Table 112: UK Median fund performance % by type of fund 1999-2003 206
Table 113: UK mutual fund industry competitors by funds under management 1998-2002 207
Table 114: UK forecast retail and non-retail assets under management 2003-2008, EURm 208
Table 115: European Exchange rates for Euro conversion 209
Table 116: European populations segmented by country and age 1999-2003 210
Table 117: European populations segmented by country and age 1999-2003 (Continued) 211

List of Figures
Figure 1: Germany and France dominate the European mutual fund market 27
Figure 2: Germany remains the dominant market in the declining retail segment 29
Figure 3: Equity funds remain to be the largest type of retail fund 31
Figure 4: Germany and France control 69.8% of European non-retail assets under management 32
Figure 5: Whereas equity funds are the largest segment of the retail market, they are only the third largest of the non-retail market 33
Figure 6: Belgium and Switzerland both have assets per adult of more than twice the EU average 35
Figure 7: Equity funds have produced both the highest and lowest median returns between 1999-2003 36
Figure 8: Strong growth is forecast for the whole of the European retail market 43
Figure 9: Although European non-retail asset growth is forecast to be strong, it is expected to be slower than that of the retail sector 44
Figure 10: The Belgian market remains dominated by the retail segment 52
Figure 11: Onshore funds have been the main beneficiaries of the growing retail sector 53
Figure 12: Nearly all funds saw growth in assets under management 54
Figure 13: Belgian retail assets per capita are more than double the European average 55
Figure 14: The Belgium distribution network is dominated by banks 56
Figure 15: Equity funds rebounded strongly in 2003 following three years of negative growth 57
Figure 16: The Belgian market is dominated by Fortis and KBC 58
Figure 17: Strong growth of 8.7% (CAGR) is predicted in the Belgium market 61
Figure 18: The Danish mutual fund market is one of the few in Europe to have experience positive year-on-year growth in every year over the 1999-2003 period 67
Figure 19: Due to favorable legislative changes, the Danish retail market has become increasingly dominated by bonds funds 69
Figure 20: Growth in the non-retail sector has mirrored developments in the retail sector with bond funds now dominating the market 70
Figure 21: Denmark retail assets per adult have just risen above the European average 71
Figure 22: The two largest fund management groups, Nordea and Danske invest, control over 50% of the total market 72
Figure 23: Datamonitor forecasts anticipate the pace of growth in Danish mutual fund assets slowing down 73
Figure 24: The non-retail segment dominates the French mutual funds market with a market share of 68.5% 79
Figure 25: The only major development in the retail market has been a small decline in offshore assets under management 81
Figure 26: The French retail mutual fund market remains to be fairly evenly divided between all investment funds 82
Figure 27: Although the French non-retail market is still dominated by money market funds it has been bond and balanced funds that have been the fastest growing 84
Figure 28: French retail mutual fund assets per adult 1999-2003, EUR 85
Figure 29: Banks have secured 80% of retail mutual fund distribution in France 86
Figure 30: Bond, money markets and other have been the most stable performing segments over the period 1999-2003 87
Figure 31: The French mutual fund market is evenly split between several key players 88
Figure 32: Strong growth is anticipated in the French mutual fund market 2003-2008f 91
Figure 33: The retail segment of the German market is gradually increasing its share of the overall market 96
Figure 34: The German retail market remains split in favor of the larger, but slower growing, onshore funds segment 97
Figure 35: Although equity funds dominate the German retail market they are losing market share to alternative segments 98
Figure 36: Despite a small movement of assets into alternative funds the German non-retail mutual funds market is still dominated by bond and balanced funds 100
Figure 37: German assets per adult have slowly closed the gap with the European average 101
Figure 38: Banks have become increasingly dominant in the distribution of mutual funds in Germany 103
Figure 39: Several types of funds managed to make positive median returns in every year over the period 105
Figure 40: Although DWS Investments and DEKA dominate the German mutual fund market there are a large number of other big fund groups that limit the top two groups’ market share to 34% 106
Figure 41: German mutual fund growth is anticipated to grow strongly over the next five years 109
Figure 42: Italian retail mutual funds have suffered over the period 1999-2003, shrinking at 7.1% (CAGR) 116
Figure 43: Both offshore and onshore funds have seen declines in their total assets as the retail sector has shrunk 117
Figure 44: The general outflow of assets out of the retail sector has hit all funds bar money market funds 118
Figure 45: Italian retail assets per adult have declined heavily throughout the period but still remain above the European average 119
Figure 46: The historically strong banking sector is losing market share to the mixed system as the preferred Italian distribution channel 120
Figure 47: 2003 saw every type of Italian mutual fund enjoying positive returns for the first time since 1999 122
Figure 48: The Italian market has a wide range of mutual fund groups 123
Figure 49: The Italian retail market is expected to reverse the negative growth seen in the last five years with several years of strong growth between 2003-2008 126
Figure 50: The retail sector has continued to dominate the Dutch mutual fund market 132
Figure 51: Equity funds remain dominant within the contracting retail segment 133
Figure 52: The Dutch non-retail market has seen particularly strong growth in non-equity funds 135
Figure 53: Netherlands assets per adult are still just above the European average 136
Figure 54: 2003 was the first time during the period 1999-2003 that all types of funds within the Dutch market made positive returns 137
Figure 55: Robeco dominates the Dutch mutual fund market with a market share of 33% in 2003 138
Figure 56: Retail funds are expected to grow strongly over the next five years 141
Figure 57: The faster growth rate of the non-retail sector has resulted in a closing of the market share gap with the retail segment 146
Figure 58: After a substantial dip in assets under management in 2002 the retail sector has seen a broad based recovery in assets in 2003 147
Figure 59: Norway assets per adult are the second lowest of the countries studied 149
Figure 60: Norwegian mutual funds, particularly retail funds, are expected to grow strongly over the next five years. 151
Figure 61: The smaller non-retail segment of the market is growing at far the faster pace 155
Figure 62: While onshore funds have declined, offshore funds have seen strong growth between 1999-2003 156
Figure 63: Legislative changes introduced in 2003 have helped halt the decline in funds under management 157
Figure 64: The Spanish non-retail market has seen strong growth in 2003 with both bond and equity funds increasing market share 158
Figure 65: Spanish retail assets per adult still remain beneath the European average 159
Figure 66: The Spanish mutual fund distribution channel remains dominated by banks in 2003 161
Figure 67: Spain was one of the only markets in which all non-equity related funds categories managed to avoid any losses over the period 1999-2003 162
Figure 68: The Spanish market is dominated by the two largest mutual fund groups, Santander Gestion de Activos and BBVA 163
Figure 69: The non-retail sector is forecast to be the fastest growing over the next five years 166
Figure 70: The bursting of the Tech bubble had a disproportionately large effect on the TMT heavy Swedish stock exchange 173
Figure 71: Offshore funds have steadily increased their share of the retail market 174
Figure 72: Money market funds have been the main beneficiary of the declining stock markets 175
Figure 73: Money Markets have grown at a rate of 29.2% (CAGR) to become the third largest segment of the market 176
Figure 74: Swedish retail mutual funds have now fallen beneath the European average, EUR 177
Figure 75: Robur is by far the largest fund management group in Sweden with over 28% of the market. 178
Figure 76: Swedish mutual fund growth is expected to rise steadily over the next five years 179
Figure 77: The Swiss mutual fund market has experienced strong growth and has been largely unaffected by the declining stock markets 185
Figure 78: The Swiss retail market has a larger proportion of offshore funds than any other European country 186
Figure 79: The Swiss retail market is evenly divided among the main fund sectors 187
Figure 80: Swiss assets per adult remains double the EU average 188
Figure 81: Switzerland mutual fund assets are expected to grow strongly over the next five years 189
Figure 82: Stock market volatility has had a disproportionately large effect on the equity focused UK mutual fund market 194
Figure 83: Offshore funds have grown at a compound annual growth rate of 12.8% while onshore funds have struggled 196
Figure 84: Equity funds have recouped lost assets and have maintained their dominant position within the UK market 197
Figure 85: Several years of declining stock markets appear to have made no lasting impression on the non-retail sector 198
Figure 86: UK retail assets per adult are still some way off the European average, EUR 199
Figure 87: The UK mutual fund distribution network is unique in Europe as the role player by banks is minimal 200
Figure 88: Money markets have been the only type of fund to have seen positive returns in every year between 1999-2003 201
Figure 89: The UK has the most fragmented market in Europe 202
Figure 90: Strong growth is forecast for both the retail and non-retail segments of the market 203