Market Guide: Retail Investment Market in France 2006

Published by: Datamonitor

Published: Feb. 20, 2007 - 44 Pages

Table of Contents

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

Retail savings and investments account for 22% of the total market in France

Just under 90% of retail assets is held in deposits and mutual funds

Since 2002, the proportional value of retail assets held in equities investments has been increasing

CHAPTER 2 MARKET FORECASTS

Introduction

Key findings

Deposits will continue to account for the majority of household wealth, with a marginal increase in the proportion of equity

CHAPTER 3 MARKET REGULATION

Introduction

Key findings

The Banking Commission of the Central Bank and the Financial Markets Authority are the primary regulators of the French 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

Regulatory amendments affect internal control and compliance at asset management companies and investment companies

Banks, asset management companies and investment companies which belong to financial conglomerates face additional supervisory requirements

Financial services companies must adapt their accounting systems to meet new standards for financial statements

Listed financial institutions have new reporting obligations regarding insider trading

New legislation for listed entities aims at enhancing investor confidence

Asset management companies have increased flexibility in fund management

Three new vehicles augment the range of investment options

Distance marketing rules enhance consumer protection

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 largest segment of banks in France comprises foreign commercial banks

Consolidation in the French banking sector continues

Banks distribute primarily through their branch networks, but telephone and Internet banking are widely used

The top 5 banks control 77% of the banking market, measured by total assets

Several leading asset managers belong to banking groups

Over 60% of available mutual funds comprises balanced funds or equity funds

Competitors in securities trading include investment companies and other authorized institutions

CHAPTER 5 MARKET LEADERS

Introduction

Key findings

As at December 2005, BNP Paribas led the banking market, based on total assets; its asset management division is BNP Paribas Asset Management

The Crédit Agricole Group trailed the market leader in the banking sector; its asset management arm is Crédit Agricole Asset Management

Société Générale Group ranked third among banks, measured by total assets; its asset management arm is Société Générale Asset Management

In 2005, Crédit Mutuel had the fourth largest share of the banking market, measured by total assets

The Banque Populaire Group ranks fifth among banks

Axa IM and IXIS Asset Management are key players in the market for mutual funds

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

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

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: Number of mutual funds, segmented by type, as at Dec 2005

List of Figures

Figure 1: Retail savings and investments account for 70% of deposits, but less than 30% in all other asset classes

Figure 2: Deposits account for 65% of retail savings and investments in France in 2005

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 proportional distribution of household assets will remain largely consistent, with marginal increases in equity and deposits

Figure 5: As at December 2005, foreign commercial banks dominated the French banking sector, by number

Figure 6: As at December 2005, BNP Paribas led the market, with 24% of total assets of the banking sector

Figure 7: As at December 2005, balanced funds and equity funds together represented 63% of mutual f

unds, by number of funds

Abstract

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

The Financial Security Act Established two new types of investment vehicle: funds with streamlined investment rules Aria funds (Agréés à Règles d'Investissement Allégées) and contractual funds. A third new investment vehicle, the open-ended real estate fund (L'organisme de placement collectif immobilier - OPCI), was created by Order 2005-2178.

The rationalization of the French banking industry, which began in the 1980s, continued in 2005. The number of co-operative and mutual banks was reduced by two, due to the merger of two Crédit Agricole regional banks, as well as that of two savings banks and two Banques Populaires institutions. There was a net decline of 5 commercial banks.

The number of authorized investment firms fell by 6 during 2005. 12 firms were de-registered. At the end of the year, there were 122 investment firms, apart from the portfolio management companies supervised by the AMF. The top ten investment firms accounted for 98% of the total assets of these 122 firms, with the top three accounting for 87.5%.

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.

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