Asset Management market in Poland_web


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Asset Management market in Poland_web

  1. 1. Intelace ASSET MANAGEMENT MARKET IN POLAND 2006 by Marcin Mazurek, Intelace Research April 2006 Version: 2006/01
  2. 2. REPORT ORDER FORM Intelace We order following report: ASSET MANAGEMENT MARKET IN POLAND 2006 Price: Report features and delivery options: - 500 EUR + VAT tax* (if applicable) Publication date: April 2006 Number of pages: 35 Language: English Delivery: pdf file delivered by email Customer details: (Will be used for issuing of invoice) Our contact details: Asset Management Market in Poland 2006 Full company name Intelace Research Stryjenskich 13c Name of the authorized person 02-791 Warszawa, POLAND Address line 1 Tel. +48502512178, Fax. +48224086620 Address line 2 email: website: City EU VAT ID: PL-1230807095 Zip/Postal Area Code Local company registry (REGON) ID: 140235909 Country Bank: BRE Bank, Mickiewicza 10, Phone/Fax 90-050 Lodz, Poland Email address /for delivery/ Account: IBAN: PL 94 11402004 0000310239534011 EU – VAT ID* BIC/SWIFT: BREXPLPWMUL * VAT tax is charged to customers from Poland only. Customers from the EU area need to provide us with their valid EU VAT Id number, which is the mandatory condition for the VAT tax exemption in Poland. Place and Date Signature of authorized person confirming the order PLEASE RETURN THIS FORM SIGNED BY FAX TO: +48 22 408 66 20 Intelace Research 2
  3. 3. EXECUTIVE SUMMARY – ASSET MANAGEMENT MARKET IN POLAND 2006 • Rapid growth of Assets under Management. The shift of client preferences from low interest banking deposits into funds with particular role of equity is fuelling quick growth of fund and insurance assets. Moreover the national pension reform introduced in 1999 has set the long term and foreseeable supply of new funds. Pension managers receive each year fresh money worth ~2-3 billion EUR • High profitability of fund managers. Despite growing competition fund managers in Poland have been able to maintain high margins. This is particularly visible on the investment funds market, where growing volumes convert into higher profits of fund managers. In contrary, profitability of Asset Management Market in Poland 2006 E pension managers is a subject to administrative regulations. It is not excluded, that the future growth PL of profitability resulting from increasing volumes may be limited by expected fees limitations M SA • Outsourcing. Growing specialization of both asset managers and financial products distributors is encouraging emerging of new business models, for example fund management or administration outsourcing. So far there has been only few examples, but need for outsourcing will definitely grow in the future, especially in the investment funds and insurance area where the legal framework does not prevent it • The perspectives for the asset management sector are very good. Strong economy and increasing wealth of individuals guarantee the long term flow of new money into asset management market. Short term situation will highly depend on the stock market performance as especially decisions of investment funds clients are still relatively short term and funds assets are quite volatile Intelace Research 3
  4. 4. TABLE OF CONTENT (1/2) 1. Asset Management Market Slide 1: Segmentation of the asset management market in Poland , 2006 Slide 2: Assets under management evolution, 2000-2005 Slide 3: Top players on the asset management market, 2005 2. Investment Funds Slide 4: Investment fund assets evolution, 1996-2005 E Slide 5: Investment fund assets by type, 2005 Asset Management Market in Poland 2006 PL Slide 6: Top players on the investment fund market, 2005 M Slide 7: Distribution networks of top fund players, 2005 SA Slide 8: Distribution channels structure, 2005 Slide 9: Foreign assets and foreign funds Slide 10: Fund clients and funds flows – Case example of Pioneer Pekao TFI Slide 11: Fees and commissions charged by top fund managers, 2006 Slide 12: Revenues and costs of fund managers, 1H2006 Slide 13: Profitability tree for fund managers, 2002-1H2005 Slide 14: Top players profiles – Pioneer Pekao TFI Slide 15: Top players profiles – BZWBK AIB TFI Slide 16: Top players profiles – ING TFI Slide 17: Top players profiles – PKO TFI Slide 18: Top players profiles – BPH TFI Slide 19: Outsourcing case study – Lukas Bank/BZWBK AIB TFI Slide 20: Outsourcing case study – Fortis/Skarbiec TFI Intelace Research 4
  5. 5. TABLE OF CONTENT (2/2) 3. Pension Funds Slide 21: Pension fund assets evolution and top players, 2000-2005 Slide 22: Pension fund members and average account value evolution, 2000-2005 Slide 23: Pension fund managers profitability, 2003-2005 E 4. Insurance Asset Management Market in Poland 2006 PL M Slide 24: Insurance assets by type evolution, 2000-2005 SA 5. Notes on methodology Intelace Research 5
  6. 6. INSURANCE, PENSION AND INVESTMENT FUNDS - 3 MAIN SEGMENTS OF THE ASSET MANAGEMENT MARKET IN POLAND Focus of this report ASSETS MANAGEMENT MARKET IN POLAND BY SEGMENT, 2005 Investment Funds Pension Funds Insurance Funds Other • Net assets of open-end • Net assets of pension • Investments (lokaty) of • Other funds under Asset Management Market in Poland 2006 and closed investment funds insurance companies management including: funds, managed locally • Pension funds operating (both life and non life) and - managed portfolios of Description • Investment funds since 1999 as a result of assets of unit linked private individuals existing since 1992 public pension system insurance funds - managed portfolios of E reform corporate/public clients PL - 3rd pillar corporate and M individual pension saving schemes SA Number of • 194 funds managed by • 15 funds managed by • Funds of 67 insurance • >930 active III Pillar (PPE) funds and 23 fund managers 15 fund managers companies. Usually corporate pension programs managers managed internally • n/a individual portfolios Assets • 15,9 billion EUR • 22,3 billion EUR • 20,6 billion EUR under • N/A management Management • Yes • No • Yes • Yes outsourcing Source: KNUiFE, Intelace Analysis Intelace Research 6
  7. 7. INVESTMENT FUND ASSETS SURGE, TAKING THE LION PART OF RETAIL SAVINGS GROWTH CAGR* Investment fund assets**, 1996-2005 EUR billion, percent 15,9 E PL 8 Exclusively M corporate • Tax incentives for corporate investors SA introduced in 2000 contributed to 55 Asset Management Market in Poland 2006 emergence of exclusive corporate funds. • Since 2001, after the tax benefits have 9,2 expired, the share of dedicated corporate 7,0 11 92 Predominantly funds is decreasing 5,7 retail 11 13 89 3,4 26 89 1,8 18 87 0,4 0,5 0,4 0,8 39 82 61 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Per capita assets 10 13 11 20 47 90 150 180 240 420 In EUR * Compound Annual Growth Rate ** Funds managed locally only 7 Source: Intelace Analysis Intelace Research
  8. 8. COMMISSIONS CHARGED BY FUNDS ARE STILL HIGH Distribution and Management fees for major funds in each asset class for top 5 players Money market Debt security Balanced Equity Pioneer 0,0 1,4 4,0 4,5 ARKA TFI 0,0 0,0 2,0 2,0 Distribution ING TFI 0,0 1,3 2,5 3,0 fees Asset Management Market in Poland 2006 PKO TFI 0,2 1,0 4,0 4,0 E PL BPH TFI 0,5 0,5 2,6 2,6 M 0,14 0,83 3,02 3,22 SA Pioneer 1,2 2,0 4,0 4,0 ARKA TFI 2,0 2,2 3,4 4,0 Management fees ING TFI 1,2 1,5 4,0 4,0 PKO TFI 1,0 2,1 4,0 4,0 BPH TFI 1,3 1,5 4,0 4,0 1,34 1,86 3,88 4,00 * Other not associated banks and securities brokers, financial intermediaries Source: Intelace Analysis Intelace Research 8
  9. 9. PIONEER PEKAO TFI – SHORT PROFILE CAGR** Background Results Net Assets • Pioneer is the oldest fund management company in PLN billion Poland and is operating since 1992 62,1 19,2 • After the global acquisition by UniCredit group, Pioneer 13,0 has merged with Eurofundusze – fund subsidiary of bank 10,1 Pekao SA 2,8 4,8 Market 2001 2002 2003 2004 2005 Products share* percent 23,1 20,9 30,4 34,5 31,3 Asset Management Market in Poland 2006 • Pioneer is offering a solid product portfolio based on local E and foreign assets. Alternative investment options are still Number of managed funds PL missing 21 M • As of the end of 2005 Pioneer managed 21 various funds 16 15 10 SA including corporate pension scheme for TP SA. 8 Channels: • Pioneer funds are sold almost exclusively through 2001 2002 2003 2004 2005 branches of Pekao bank and its subsidiaries (CDM Money Assets brokerage and Xelion) market composition • The distribution network of Pioneer consists of ~930 POS Equity 7 7 percent 39 Balanced Customers Debt 23 securities • As of the end of 2005, Pioneer served 806 thousand customers, mostly retail 25 • Average balance per account ~24000 PLN or 6200EUR Foreign (various assets) * Share in term of assets ** Compound Annual Growth Rate Source: Company, Press, Intelace Analysis Intelace Research 9
  10. 10. NOTES ON METHODOLOGY FX rates: • As a general rule all “end of year” balances like: assets, deposits, loans and similar volumes have been converted from the local currency into Euro using end of year exchange rate • All results achieved during a period of time like: profits, revenues, new sales etc. have been converted from the local currency into Euro using average exchange rate • Exchange rates used in the report: EUR / PLN 2000 2001 2002 2003 2004 2005 Asset Management Market in Poland 2006 End of year 3,90 3,53 4,03 4,72 4,09 3,86 Average 4,02 3,68 3,85 4,40 4,53 4,03 Estimates and Forecasts: • In some cases, recent or verified data was not available. Therefore, necessary short-term estimations have been done to fill the gaps. Estimates are always indicated with the letter “E” • When preparing forecasts/estimates we have built models using latest observed trends, available forecasts of main economic indicators, seasonal changes observed in the past and other specific factors considered important Multiple sources: • In some cases multiple sources of similar data exist. In this situation we always try to select the most appropriate one /in our view/. The source is indicated in the footer area of each slide. Nevertheless in specific cases, before interpreting the data it is recommended to get understanding of the methodology Intelace Research 10
  11. 11. On this report On Intelace Research This report has been prepared using publicly Intelace Research is an independent and privately available sources including: financial reports, owned research firm based in the heart of Eastern press publications, industry magazines, Europe in Warsaw / Poland. directories, financial databases and expert opinions. Our company is specializing in value-added research services and tailored business Views presented in this report reflect solely intelligence solutions. independent and unbiased opinion of Intelace Research and the author. Through our customized research services we Asset Management Market in Poland 2006 help our clients to better understand their All due care has been taken in the production of consumers, competitors and overall market this report, however Intelace Research does not dynamics. accept any responsibility or liability for any omissions or inaccuracies of the information The lead researcher and founder of Intelace contained in this publication. Research is Marcin Mazurek. This report is copyrighted. Any distribution, Our contact details: storage, replication and usage is restricted. Intelace Research In case of any doubt please contact us at: Stryjenskich 13c, 02-791 Warszawa, Poland or Tel. +48 50 251 21 78, Fax. +48 22 408 66 20 mail: url: Intelace Intelace Research 11
  12. 12. OUR RECENT PUBLICATIONS Available • February 2006 - Banking market in Serbia • April 2006 - Banking market in Poland Asset Management Market in Poland 2006 To be published soon • June/July 2006 - Banking market in Ukraine Intelace Intelace Research 12