Market Guide: Retail Investment Market in Denmark 2006

Published by: Datamonitor

Published: May. 16, 2007 - 28 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

The Danish retail savings and investments sector has grown at a compound annual rate of 12.9% in the last 5 years; however a reduced rate of growth is expected between 2006 and 2010

Household portfolios will see increased allocations to mutual funds and equities between 2006 and 2010

Legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers

The leading Danish banks and asset management companies control more than 70% of their respective markets

The top two banks also lead the Danish mutual funds sector

Table of Contents

Table of figures

Table of tables

MARKET OVERVIEW

Between 2001 and 2005, the Danish retail savings and investments market experienced compound annual growth of 12.9%, driven primarily by growth in mutual funds and equities

Retail assets outstrip non-retail holdings in the deposits and mutual funds markets

Deposits account for just under half of the Danish retail savings and investments market

Since 2001, mutual funds have accounted for a growing proportion of household wealth

MARKET FORECASTS

Household portfolios will see increased allocations to mutual funds and equities between 2006 and 2010

Mutual funds will continue to account for an increasing proportion of household wealth

MARKET REGULATION

Legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers

The Danish Financial Supervisory Authority regulates the 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

Anti-money laundering legislation implies an additional administrative burden for banks

New legislation updates the regulations on collective investments and financial services providers

Investment firms are subject to client money requirements

Foreign collective undertakings are subject to DFSA control and require marketing approval

Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection

COMPETITIVE MARKET STRUCTURE

The leading Danish banks and asset management companies control more than 70% of their respective markets

Domestic institutions comprise the largest segment of the Danish banking sector, by number

The top 5 banks control 71% of the banking market, measured by total assets

The top 5 asset managers control 78% of the mutual funds market, measured by assets under management

MARKET LEADERS

The top two banks also lead the Danish mutual funds sector

Danske Bank & BG Bank lead the Danish banking sector; Danske Invest is the mutual funds market leader

Nordea Bank trails the market leader in the Danish retail banking market; Nordea Invest ranks second in the mutual funds sector

Jyske Bank ranks third among banks; Nykredit Portefolje Administration is the third largest asset manager

FIH Group (Kaupthing Bank) is the fourth largest Danish bank by total assets; BankInvest ranks fourth among asset managers, by AuM

Sydbank rounds out the banking market leaders; Investeringsforeningen RHAM Value Partner has the fifth-highest mutual funds market share

APPENDIX

Asset manager / Asset management company

Bank

Collective Investment Scheme

Friendly society

Fund of funds

Hedge fund

Investment company

ISA

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

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Total Savings & Investments segmented by retail v institutional, DKKm, 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, DKKm, as at Dec 2005

Table 4: Retail Savings & Investments, segmented by asset class, DKKm, 2001 - 2005

Table 5: Retail Savings & Investments, segmented by asset class, in percentages, 2001 - 2005

Table 6: Retail Savings & Investments, segmented by asset class, DKKm, 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

List of Figures

Figure 1: Retail assets account for more than half of deposits and mutual funds, but less than one-fifth of equity and bonds

Figure 2: Deposits and mutual funds together account for roughly 80% of retail savings

Figure 3: Deposits account for the single highest proportion of household assets, but the proportional value of mutual funds has been increasing

Figure 4: The decline in household assets in deposits will be offset by increases in assets in mutual funds and equities

Figure 5: Danish banks and savings banks account for 86% of the market, by number

Figure 6: Danske Bank & BG Bank lead the banking sector, with a market share of 38%

Figure 7: Danske Invest accounts for 24% of the mutual funds (investment associations) market

Abstract

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