Market Guide: Retail Investment Market in Ireland 2006

Published by: Datamonitor

Published: Jun. 4, 2007 - 30 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

The Irish retail savings and investments sector has grown at a compound annual rate of 17.7%, driven, to a large extent, by growth in mutual funds

Between 2001 and 2005, with the exception of equity, all asset classes in the retail savings and investments market in Ireland experienced double-digit compound annual growth

Double-digit growth in deposits and mutual funds will be sustained between 2006 and 2010

EU and national legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers

The top four Irish banks dominate the local banking sector

The banking market leaders include three domestic banks and two banks headquartered in the UK and Denmark

Table of Contents

Table of figures

Table of tables

MARKET OVERVIEW

Between 2001 and 2005, with the exception of equity, all asset classes in the retail savings and investments market in Ireland experienced double-digit compound annual growth

Retail assets account for 80% of mutual funds, but less than half of all other asset classes in the Irish market

Mutual funds outstrip all other asset classes in the Irish retail savings and investments market

Since 2002, the proportionate value of retail assets held in mutual funds has been increasing, at the expense of deposits and equities

MARKET FORECASTS

Double-digit growth in deposits and mutual funds will be sustained between 2006 and 2010

Mutual funds will continue to account for more than 80% of household wealth, but deposits will grow more quickly

MARKET REGULATION

EU and national legislation aimed at improving investor confidence and consumer protection imposes additional obligations on providers

The Irish Financial Services Regulatory Authority (Financial Regulator) 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

Recent legislation enhances consumer protection

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

Investment firms are subject to client money and fit and proper requirements

EU legislation aims at enhancing investor confidence

Distance marketing rules define sales practices

A new fund structure augments the range of investment options

Proposed anti-money laundering legislation implies an additional administrative burden for banks

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

COMPETITIVE MARKET STRUCTURE

The top four Irish banks dominate the local banking sector

Domestic banks dominate the Irish banking sector, by number

The top 5 banks control 61% of the banking market, measured by customer deposits

The majority of collective investment schemes are UCITS

MARKET LEADERS

The banking market leaders include three domestic banks and two banks headquartered in the UK and Denmark

As at December 2005, Bank of Ireland led the banking market, based on total assets

Allied Irish Bank ranked second in the banking sector

In 2005, permanent tsb had the third highest market share among banks, measured by customer deposits

Ulster Bank was the fourth largest bank, by customer deposits

National Irish Bank ranked fifth among banks

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, 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 & building societies, segmented by type, as at Apr 2006

Table 9: Top 5 banks by total customer deposits, as at Dec 2005

Table 10: Number of collective investment schemes, segmented by type, as at Dec 2004

List of Figures

Figure 1: Retail savings represent only a small proportion of the equity and bond markets

Figure 2: Mutual funds and deposits together account for 95% of retail savings

Figure 3: Mutual funds consistently account for the single highest proportion of household assets

Figure 4: Over the next 5 years, compound annual growth in the retail savings and investments market will slow to 11.3%

Figure 5: Irish banks and building societies account for 61% of the banking market, by number

Figure 6: Bank of Ireland controls more than one-quarter of the market, based on customer deposits

Figure 7: UCITS and designated investment companies accounted for roughly 85% of all investment funds, by number in 2004

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

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

During 2005, Irish private investors in mutual funds held the majority of these assets in balanced funds (65% of retail mutual fund assets under management), followed by equity funds (17%) and property funds (10%). Bond funds represented 8% of mutual fund assets. Overall, however, deposits continued to account for the bulk of household savings.

The IFSRA published a revised Consumer Protection Code on July 25th 2006. It harmonizes and updates previous codes and establishes a level playing field among financial services providers. It covers: advertising & marketing, know your customer obligations, suitability of products offered and fair treatment of customers.

The net asset value of collective investment schemes in Ireland increased from EUR435 billion in 2004 to EUR586 billion in 2005, representing assets managed by 3,798 funds (including sub-funds).

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.

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.