Mutual Funds: Market Research Report

December 2011 | 184 pages | ID: MF972A9DF49EN
Global Industry Analysts, Inc

Abstracts

The global outlook series on Mutual Funds provides statistical anecdotes, market briefs, and concise summaries of research findings.

The report offers an aerial view of the global mutual funds industry, identifies major short to medium term market challenges, and growth drivers.

Market discussions in the report are punctuated with a number of fact-rich market data tables.

Regional markets elaborated upon include United States, Canada, Japan, Finland, France, Italy, Luxembourg, Norway, China, Hong Kong, India, South Korea, Philippines, Columbia, Mexico and UAE among others.

Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 574 companies worldwide.

Contents

1.INDUSTRY OVERVIEW

A Synopsis

Table 1. World Mutual Fund Market (2011 QI): Percentage Breakdown of Assets by Fund Class- Equity Funds, Bond Funds Money Market Funds, Mixed/Balanced Funds and Others

Table 2. Global Mutual Fund Industry (2010): AUM as a Percentage Share of GDP- Breakdown by Country- US, France, Brazil and India

Global Recession Wipes Substantial Wealth off Mutual Funds

Table 3. Global Mutual Funds Market (2007 & 2008): Breakdown of Assets Under Management in US$ Billion by Fund Class – Equity Funds, Money Market Funds, Bond Funds, Mixed/Balanced Funds, and Others

Money Market Mutual Funds Witness Growth During Downturn

Table 4. Global Mutual Fund Market (2009Q4, 2010Q4 & 2011Q1): Inflows/Outflows by Asset Class in US$ Billion

Market Outlook

Table 5. World Recent Past, Current & Future Analysis for Mutual Funds by Geographic Region - US, Canada, Europe, Asia-Pacific, Latin America and Rest of World Markets Independently Analyzed with Assets Under Management (AUM) in US$ Billion for Years 2010 through 2015

Table 6. World 5-Year Perspective for Mutual Funds by Geographic Region – Percentage Breakdown of Assets Under Management (AUM) Value for US, Canada, Europe, Asia-Pacific, Latin America and Rest of World Markets for Years 2011 and 2015

2.MARKET TRENDS

Distribution Channel – An Indicator of Market State
Poor Gains Despite Robust Economic Performance
Open-Architecture System Becoming a Norm in the Industry
Focus Shifting to Retail Investors
Packaged Solutions Gaining Prominence
Increase in Risk Appetite Surges Demand for Non-Traditional Products
Focusing on Long-Term Growth Strategy
Emerging Market Funds On a Growth Trajectory

Table 7. US Investment in Foreign Mutual Funds (2009 & 2010): Percentage Breakdown by Net Worth of Investors- Category 1 ($5 million to $25 million), Category 2 ($1 million to $5 million) and Category 3 ($100,000 to $1 million)

3.PRODUCT OVERVIEW

Mutual Funds
Types of Mutual Funds
Equity Funds
Bond Funds
Hybrid or Balanced Funds
Money Market Funds
Fund of Funds

4.PRODUCT/SERVICE LAUNCHES

5.MERGERS AND ACQUISITIONS

6.STRATEGIC CORPORATE DEVELOPMENTS

A REGIONAL PERSPECTIVE

1.THE UNITED STATES

Downturn Plummets Mutual Fund Assets

Table 8. Mutual Funds Market in the US (2010): Percentage Share of Assets Under Management by Fund Class – Equity Funds, Money Market Funds, Bond Funds and Hybrid Funds

Money Market Funds – The Savior During Crisis

Table 9. Portfolio of US Investment Companies (2011): Percentage Breakdown of Investment by Funds- Bond, Stock & Hybrid Funds, Money market Funds, Exchange-Traded Funds, Closed-End Funds and Unit Investment Trusts

Table 10. US Long-Term Mutual Fund Assets (2011): Percentage Breakdown of Investment by Funds- Domestic Equity Funds, Bond Funds, International Equity Funds and Hybrid Funds

Number of Registered Investment Companies On the Rise

Table 11. A Recent Past Perspective of Mutual Funds Market in the US (2004-2008): Number of Registered Investment Companies by Year

Individual Accounts Lead the Fray

Table 12. Mutual Funds Market in the US (2010): Percentage Breakdown of Net Mutual Fund Assets by Account Type – Individual and Institutional

Institutional Investors Increasingly Relying on Mutual Funds
Large AMCs to Continue Dominance in the Market

Table 13. Mutual Funds Market in the US (2011): Percentage Breakdown of Households That Own Mutual Fund Ranked by Source

Table 14. Mutual Funds Market in the US (2011): Percentage Breakdown by Purchase Channel – Inside Employer-Sponsored Retirement Plans; and Outside Employer-Sponsored Retirement Plans [Sales Force (Full-Service Broker, Independent Financial Planner, Bank or Savings Institution Representative, Insurance Agent, and Accountant); and Direct Market (Mutual Fund Company Directly, and Discount Broker)

Table 15. An Insight into Select Financial Objective for Investing in Mutual Funds (2011)

Tracking the Demographic Pattern

Table 16. Mutual Funds Market in the US (2011): Percentage Breakdown of Mutual Funds by Type – Households and Individual Investors

Table 17. Mutual Funds Market in the US (2011): Percentage Breakdown of Mutual Fund Ownership Based on Household Income – Less than US$25,000; US$25,000 to US$49, 999; US$50,000 to US$99,999; US$100, 000 to US$199,999; and US$200, 000 or more

Table 18. Mutual Funds Market in the US (2011): Percentage Breakdown of Households that Own Mutual Funds by Age Group – 65 Years +, 55-64 Years, 54-45 Years, 44-35 Years, and Below 35 years

Table 19. Mutual Funds Market in the US (2011): Percentage Breakdown of Households that Own Mutual Funds by Generation – Baby Boom, Gen-Xers & Yers, and Silent and GI

Table 20. Mutual Funds Market in the US (2011): Percentage Breakdown of Households Mutual Fund Assets by Generation - Baby Boom Generation, Silent and GI Generation and Gen Xers & Yers

A Historical Perspective

2.CANADA

Market Overview

Table 21. Leading Mutual Fund Managers in Canada (2011): Percentage Breakdown of Assets Under Management for RBC Asset Management and Phillips Hager & North, IGM Financial, TD Asset Management, CIBC Asset Management, Fidelity Investments Canada ULC, BMO Financial Group, Invesco Trimark, AGF Funds, Franklin Templeton, Dynamic Funds, and Others

Market Shows Signs of Recovery

Table 22. Mutual Funds Market in Canada (2011): Breakdown of Assets Under Management (in US$ Billion) by Month

A Review of the Recent Past
Historical Perspective

3.JAPAN

A Peek into the Past

Table 23. Mutual Funds Market in Japan (2002 & 2007): Percentage Breakdown of Assets Under Management by Fund Class – Stock Funds, Bond Funds, and Money Market Funds

Table 24. Mutual Funds Market in Japan (2010): Percentage Breakdown of Assets Under Management by Type of Parent Company – Securities Firms, Banks, Foreign Firms, Insurance Firms, and Independent Firms

4.EUROPE

Industry Overview

Table 25. European Recent Past, Current & Future Analysis for Mutual Funds by Geographic Region – France, Germany, Italy, UK, Spain, Ireland, Luxembourg and Rest of Europe Independently Analyzed with Assets Under Management (AUM) in US$ Billion for Years 2010 through 2015

Table 26. European 5-Year Perspective for Mutual Funds by Geographic Region – Percentage Breakdown of Assets Under Management (AUM) Value for France, Germany, Italy, UK, Spain, Ireland, Luxembourg and Rest of Europe for Years 2011 and 2015

Key Statistics

Table 27. European Long-Term Mutual Fund AUM (2011): Percentage Breakdown by Asset Class- Equities, Bonds, Balanced Funds and Others

Table 28. The UK Mutual Funds Market ((1H-2011): Breakdown of Sales of Funds Under Management- Fund of Funds, Tracker Funds, Ethical Funds and All Funds in £ Billion

Leading European Mutual Fund Managers (2011*): Ranked by AUM

4A.FINLAND

Recent Past Market Scenario

Table 29. Leading Fund Management Companies in Finland (2011): Percentage Breakdown of Net Asset Value of Managed Mutual Fund for Nordea Investment Fund Company Finland Ltd.,OP Fund Management Company Ltd., Sampo Fund Management Ltd., SEB Gyllenberg Fund Management Company Ltd., Evli Fund Management Company Ltd., Aktia Fund Management Company Ltd., Handelsbanken Mutual Fund Company Ltd., Tapiola Asset Management Ltd., FIM Asset Management Ltd., Alfred Berg Funds Ltd., and Others

4B.FRANCE

Recent Past Scenario
Regulatory Reforms
Structure of Mutual Funds Market

4C.ITALY

Market Overview
Recent Past Statistics
Competitive Scenario

Table 30. Leading Mutual Funds Groups in Italy (2008): Percentage Breakdown of Assets Under Management for Intesa Sanpaolo, Pioneer Investment, Arca, UBI Banca, Cridit Agricole, and Others

Table 31. Leading Mutual Fund Groups in Italy (2008): Percentage Breakdown of Number of Registered Mutual Funds for Intesa Sanpaolo, Cridit Agricole, Pioneer Investment, BNP Paribas, Gruppo Banca Popolare, Mediolanum, UBI Banca, Assicurazioni Generali, Monte Paschi di Siena, Arca, and Others

Table 32. Mutual Funds Market in Italy (2008): Percentage Breakdown of Number of Registered Mutual Funds by Fund Class – Equity Funds, Bond Funds, Money Market Funds, Hedge Funds, Balanced Funds, and Flexible Funds

4D.LUXEMBOURG

Recent Past Market Scenario
Fund Managers Face Significant Challenges

4E.NORWAY

A Recent Past Perspective

Table 33. Mutual Funds Market in Norway (2007 & 2008): Percentage Breakdown of Mutual Fund Shares Capital by Fund Class – Equity Funds, Hybrid Funds, Bond Funds, and Money Market Funds

Table 34. Mutual Funds Market in Norway (2010): Percentage Breakdown of Mutual Fund Capital by Sector- Government, Financial Corporations, Non-Financial Corporations, Households and Others

4F.RUSSIA

Market Overview

5.ASIA-PACIFIC

Industry Overview

5A.CHINA

Market Overview
Regulatory Amendments – A Step Towards Liberalizing Norms
Recent Past Scenario

Table 35. Leading Fund Managers in China (2008): Percentage Breakdown of Net Assets Under Management for China Asset Management, Boshi Fund Management, Harvest Fund Management, China Southern Fund Management, E Fund Management, Da Cheng Fund Management, GF Fund Management, Huaan Fund Management, China International Fund Management, Invesco Great Wall Fund Management, and Others

Table 36. Leading Fund Managers in China (2008): Percentage Breakdown of Number of Funds for China Asset Management, Boshi Fund Management, China Southern Fund Management, Da Cheng Fund Management, E Fund Management, Harvest Fund Management, GF Fund Management, Huaan Fund Management, China International Fund Management, Invesco Great Wall Fund Management, and Others

5B.HONG KONG

Market Overview

Table 37. Mutual Funds Market in Hong Kong (2008): Percentage Breakdown of Number of Authorized Mutual Funds by Fund Class – Equity Funds, Bond Funds, Guaranteed Funds, Diversified Funds, Fund of Funds, Index Funds, Money Market Funds, Hedge Funds, and Others

5C.INDIA

Market Overview

Table 38. Indian Mutual Funds Industry - Per Capita Assets Under Management (in US$) for Singapore, Brazil, UK and India

Factors Driving Growth of Mutual Funds Industry
Investor Profile
Distribution Channels Vary for Domestic and Foreign Players
Recession Slays Investor Confidence
Recent Slump Presses Need for Further Improvement in Industry Functioning
Regulatory Regime
SEBI Abolishes Entry Load
QFIs Gain Permit to Invest in Mutual Funds
SEBI Relaxes Mutual Fund Merger Norms
A Peek into Select Regulatory Amendments
Market Trends
Mutual Funds Emerge as Preferred Investment Alternative for Investors
Gilt Funds and ETFs Gain Popularity
Large-Cap Equity Funds Exhibit Poor Performance
Global Financial Powerhouses Vying for a Share
Outsourcing Gaining Prominence
Technological Advancements Drive Market Growth
New Product Introductions to Gain Momentum
Competitive Scenario
Key Statistics

Table 39. Asset Management Market in India (2008): Percentage Breakdown of Household Savings by Category – Bank Deposits, Government Instruments, Insurance Funds, Provident and Pension Funds, Currency, and Mutual Funds

Table 40. Indian Mutual Funds Market (as on March 2010 & as on March 2011): Percentage Breakdown of Assets Under Management by Schemes – Income, Equity, Liquid. ELSS, Balanced and Others

Table 41. Mutual Funds Market in India (2011): Percentage Breakdown of Average Assets Under Management by Asset Management Company – Reliance Mutual Fund, HDFC Mutual Fund, UTI Mutual Fund, ICICI Prudential Mutual Fund, Birla Mutual Fund, SBI Mutual Fund, Franklin Templeton Investments, Tata Mutual Fund, Kotak Mahindra Mutual Fund, DSP BlackRock Mutual Fund, and Others

Table 42. Indian Mutual Funds Market (2011): Breakdown of Leading Balanced Funds (in Rs Crore) by Scheme Name – HDFC Prudence Fund-Growth, DSP BlackRock Balanced Fund-Growth, SBI Magnum Balanced Fund-Growth, FT India Balanced Fund-Growth, ING Balanced Fund-Growth, Escorts Opportunities Fund-Growth, HDFC Balanced Fund-Growth, Kotak Balance, PRINCIPAL Balanced Fund-Growth and Sundaram Balanced Fund-Growth

Table 43. Mutual Fund Industry in India (2011): Sale and Redemptions of Open-End, Close-End and Interval Funds in Rs Crore

Table 44. Liquid/Money Mutual Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – Corporates, Financial Institutions/Banks, High Networth Individuals, FIIs, and Retail

Table 45. Gilt Mutual Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – Corporates, High Networth Individuals, Retail, and Financial Institutions/Banks

Table 46. Debt Class Mutual Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – Corporates, High Networth Individuals, Retail, Financial Institutions/Banks, and FIIs

Table 47. Equity Class Mutual Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – Retail, High Networth Individuals, Corporates, Financial Institutions/Banks, and FIIs

Table 48. Balanced Mutual Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – Retail, High Networth Individuals, Corporates, Financial Institutions/Banks, and FIIs

Table 49. Gold Exchange Traded Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – Corporates, Financial Institutions/Banks, FIIs, High Networth Individuals, and Retail

Table 50. Exchange Traded Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – High Networth Individuals, Corporates, FIIs, Retail, and Financial Institutions/Banks

Table 51. Fund of Funds Market in India (2011): Percentage Breakdown of Assets Under Management and Number of Folios by Investor Type – High Networth Individuals, Retail, Corporates, Financial Institutions/ Banks, and FIIs

5D.INDONESIA

Regulatory Restrictions Gnawing Growth Prospects

5E.SOUTH KOREA

Market Overview
Regulatory Changes in the Past

5F.THE PHILIPPINES

Market Overview
Restraining Forces Check Market Growth

6.LATIN AMERICA

Industry Overview

6A.COLOMBIA

Market Overview

6B.MEXICO

Recent Past Scenario
Market Trips Amid Global Financial Meltdown

Table 52. Mutual Funds Market in Mexico (2010): Percentage Breakdown of Assets Under Management by Fund Class – Government Bonds, Bank Debts, Equities, and Others

Table 53. Mutual Funds Market in Mexico (2010): Percentage Breakdown of Assets Under Management by Category – Financial Sector, Firms Linked with Stockbrokerages, Independent Mutual Fund Investors, and Firms Linked with Credit Organizations

Regulatory Supervision

7.THE MIDDLE EAST

7A.ISRAEL

A Peek into the Past

Table 54. Number of Active Mutual Funds in Israel (2006-2011)

7B.UNITED ARAB EMIRATES

Lacks Favorable Regulatory Environment
Global Directory