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Market Guide: Retail Investment Market in Germany 2006

Datamonitor
February 5, 2007
47 Pages - SKU: DFMN1474334

Abstract Table of Contents Search inside this report Related Reports

Countries covered: Germany

Introduction

This report is most appropriate for companies looking for an overview of the retail investments markets in order to assess the level of market opportunity (using our market data and forecasts), regulatory barriers and opportunities, and level of competition in the market. For more detailed market data please refer to Datamonitor's Retail Savings and Investments Interactive Database 2006.

Scope

Sizes retail deposits, mutual funds, equities and bonds;

Presents competitor market data for retail banks and mutual fund companies;

Assesses regulatory barriers and opportunities;

5 years historic data from 2001-5 and 5 year forecast to 2010

Highlights

In December 2005 one property fund was forced to temporarily suspend redemptions due to the reported poor performance of the property market, which sparked above-average redemptions. This encouraged debate on the reform of real estate funds and how to distinguish between open-ended real estate funds and other property investments such as REITS.

During 2005, with the continued consolidation of the German banking sector, a total of 92 credit institutions ceased to operate, primarily as a result of mergers. However, 38 new institutions came on stream. In the main, these were investment companies, branches of foreign banks and securities trading banks.

Proposed anti-money laundering legislation implies an additional administrative burden for banks. The upcoming legislation introduces new risk-based and customer-focused due diligence obligations in instances of either establishing or continuing a business relationship with a customer.

Reasons to Purchase

Get an overview of the retail investment market, including past growth and forecast growth;

Assess regulatory barriers and opportunities affecting retail investments in this country;

Analyze competition from retail banks and mutual fund companies.

EXECUTIVE SUMMARY - MARKET HIGHLIGHTS: Market overview; Market forecasts; Market regulation; Competitive market structure; Market leaders
INTRODUCTION

What is this report about?
Who is the target reader?
How to use this report
CHAPTER 1 MARKET OVERVIEW
Introduction
The retail market accounts for close to 60% of assets in deposits but less than 50% in all other asset classes
Close to 60% of all retail investments is held in deposits
Between 2003 and 2004, the composition of retail savings and investment portfolios was stable; however in 2005, deposits were substituted by mutual funds and equities
CHAPTER 2 MARKET FORECASTS
Introduction
Key findings
While deposits will continue to account for the majority of household wealth, the proportions held in mutual funds and equities will increase slightly
CHAPTER 3 MARKET REGULATION
Introduction
Key findings
The Central Bank and the Federal Financial Supervisory Authority regulate the German financial services industry
Banks must adapt their accounting systems to meet new standards re: consolidated financial statements
For banks and investment companies, Basel II capital adequacy requirements imply additional investment in risk management expertise and in IT systems to calculate risk
Banks enjoy flexibility in the implementation of new requirements for risk management
Investment companies and asset management companies face additional prospectus requirements
Asset management companies may establish unit classes within funds
Implementation of the EU Prospective Directive promotes competition across borders among asset management companies
Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection
Proposed anti-money laundering legislation implies an additional administrative burden for banks
CHAPTER 4 COMPETITIVE MARKET STRUCTURE
Introduction
Key findings
The majority of banks in Germany are credit co-operatives
Banks distribute primarily through their branch networks, but telephone and Internet banking are available
The top five banks control 40% of the banking market, measured by total assets
The mutual funds industry is heavily concentrated - the top 5 companies control 79% of Assets under Management (AuM)
Over 78% of available mutual funds comprises securities funds
Competitors in securities trading include investment companies and other authorized institutions; outsourcing is a growing trend
CHAPTER 5 MARKET LEADERS
Introduction
Key findings
Deutsche Bank leads the banking and mutual funds sectors
The HVB Group trails the market leader in the banking sector; it has the fifth largest asset management company
Dresdner Bank ranks third among banks; the Allianz Dresdner Global Investors Group is fourth among asset managers
Commerzbank AG is the fourth highest ranked bank by total assets
Landesbank Baden-Wurttemberg rounds out the top 5 banks
Union Group has the second largest share of mutual funds, by AuM
Deka Group ranks third among asset managers
APPENDIX
Definitions
Asset manager / Asset management company
Bank
Collective Investment Scheme
Friendly society
Fund of funds
Hedge fund
Investment company
Non-retail market
Retail market
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
SPP writing team
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 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: Deposits account for close to half of total savings and investments in Germany in 2005
Figure 2: Deposits represent 58% of household savings, while mutual funds account for just under one-quarter
Figure 3: Deposits consistently account for the single highest proportion of household assets, followed by mutual funds
Figure 4: Over the next 5 years, the proportion of household wealth held in mutual funds and equities will increase slightly, at the expense of deposits
Figure 5: The co-operative sector dominates the German banking industry, by number
Figure 6: The banking sector is dominated by the leading banks and savings bank
Figure 7: The DWS Group managed one-quarter of all mutual funds as at December 2005
Figure 8: As at December 2005, equity funds represented 36% of mutual funds, by number of funds

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Market Guide: Retail Investment Market in Germany 2006

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