Asset Management Industry in the PIGS Nations - Investment Analysis

Asset Management Industry in the PIGS Nations to Gain Traction with Economic Recovery in 2012 and Low Mutual Penetration

Long-term Structural Reforms Required to Pull the Industry out of the Red

The asset management industry in the PIGS nations is expected to grow at a compound annual growth rate (CAGR) of 4.0 per cent until 2016. Lower valuations of various large and mid-cap companies will lure investors. Infrastructure spending in the medium (2 to 3 years) and long term (5 to 7 years) and better regulatory reforms is expected to aid the recovery of the PIGS economies and boost investments. As the sovereign debt crisis intensified in mid-2010, the EU nations had to resort to strong measures to stem the downslide. The region is facing a huge liquidity crisis as funds dry up in the credit market. “The net assets in the PIGS nations had declined by 12.7 per cent between 2006 and 2010 Q3, and Greece was the worst affected among these nations,” notes the analyst of this research service. “The Greek financial crisis resulted in massive outflows of institutional funds; besides, there was also a severe dent in investor confidence.”

Greece entered into an agreement with the European Union (EU) and the IMF for financial assistance of 110.00 billion Euros over a period of 4 years, from 2010 to 2013 in May 2010. Greece was expected to reduce an additional 30.00 billion Euros deficit over the same period. An emergency fund, amounting to 750.00 billion Euros was created in May 2010. The fund was formed from contributions from EU member states and amounted to 440.00 billion Euros in guarantees, 60.00 billion Euros in European debt instrument and 250.00 billion Euros from the IMF. Germany had announced a ban on naked short selling of shares in the country's top ten financial institutions, on Euro Government bonds and on related transactions in credit default swaps (CDS) in May 2010. Portugal, Italy, and Spain passed bills in their respective Parliaments to cut government spending.

Planned fiscal consolidation could weaken private demand in the region and poses a major industry challenge. Refinancing maturing sovereign debt could lead to stress in the sovereign debt markets. A debt of $4.000 trillion needs to be refinanced in 2011 and 2012 in the Euro region. Declining disposable income is resulting in reduced household savings ratio. Apart from this, low investor confidence is likely to discourage the launch of new funds in 2011. “High uncertainty in the financial market policies, such as taxation, could impact the market adversely for a one-to two-year period,” says the analyst. “Attracting investments in the region and discouraging the investors from disinvesting remains a challenge.” Inflation targeting and long-term structural reforms are required to maintain steady economic growth. Expected economic recovery in 2012 and low mutual penetration are likely to attract investments in the PIGS nations.

This Frost & Sullivan research service titled Asset Management Industry in the PIGS Nations - Investment Analysis provides market drivers and restraints, trends in net assets and industry challenges. In this research, Frost & Sullivan's expert analysts thoroughly examine the asset management industries in Portugal, Italy, Greece and Spain (PIGS). SHOW LESS READ MORE >

1. Research Scope

2. Asset Management Industry In The PIGS Nations -An Overview

- 2.1 EU Sovereign Debt Crisis

- 2.2 Trend in Net Assets

- 2.3 Trend in Number of Funds

- 2.4 Industry Challenges, Market Drives and Restraints

- 2.5 Market Forecast

3. Asset Management Industry In Portugal

- 3.1 Trends in Fund Net Assets

- 3.2 Trend in Fund Net Sales

- 3.3 Market Share Analysis

- 3.4 List of Market Participants

4 Asset Management Industry In Italy

- 4.1 Trends in Fund Net Assets

- 4.2 Trend in Fund Net Sales

- 4.3 Market Share Analysis

- 4.4 List of Market Participants

5. Asset Management Industry In Greece

- 5.1 Trends in Fund Net Assets

- 5.2 Trend in Fund Net Sales

- 5.3 Market Share Analysis

- 5.4 List of Market Participants

6. Asset Management Industry In Spain

- 6.1 Trends in Fund Net Assets

- 6.2 Trend in Fund Net Sales

- 6.3 Market Share Analysis

- 6.4 List of Market Participants

7. Investment Themes

- 7.1 Emerging Economies Expected to Recover in 2011

- 7.2 Low Mutual Fund Penetration In PIGS Nations

8. Conclusion

9. About Frost & Sullivan

List of Figures

- Asset Management Industry: Market Share Analysis (Portugal), 2010 Q3
- Asset Management Industry: Net Assets of Market Participants (Portugal) 2006-2010 Q3
- Asset Management Industry: Market Share Analysis (Italy), 2010 Q3
- Asset Management Industry: Net Assets of Market Participants (Italy) 2008-2010 Q3
- Asset Management Industry: Market Share Analysis (Greece), 2010 Q3
- Asset Management Industry: Net Assets of Market Participants (Greece) 2006-2010 Q3
- Asset Management Industry: Market Share Analysis (Spain), 2010 Q3
- Asset Management Industry: Net Assets of Market Participants (Spain) 2006-2010 Q3
- Asset Management Industry: Sector-wise Foreign Direct Investment Restrictiveness Index (PIGS), 2006-2009
- Asset Management Industry: Investor Protection Index By Country (PIGS), 2010
- Asset Management Industry: Ease Of Doing Business Index By Country (PIGS), 2010
- Asset Management Industry: Number of Companies Traded (PIGS), 2006-2009

LOC:

- Asset Management Industry: Sovereign Debt Crisis Timeline (Europe), November 2009 -April 2010
- Asset Management Industry: Euro Zone Debt By Country (Europe), 2010
- Asset Management Industry: Trend in Net Assets (PIGS), 2006 Q1-2010 Q3
- Asset Management Industry: Growth In Net Assets (World), 2007-2009
- Asset Management Industry: Trends in Number of Funds (PIGS), 2006 Q1-2010 Q2
- Asset Management Industry: Industry Challenges, Market Drivers and Restraints (PIGS), 2011-2016
- Asset Management Industry: Market Forecast (PIGS), 2009-2016
- Asset Management Industry: Net Assets (Portugal), 2006 Q1-2010 Q2
- Asset Management Industry: Trend in Type of Funds (Portugal), 2008-2010 Q2
- Asset Management Industry: Net Sales in Equity Funds (Portugal), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Money Market Funds (Portugal), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Bond Funds (Portugal), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Balanced and Other Funds (Portugal), 2008 Q1-2010 Q3
- Asset Management Industry: Market Share Analysis (Portugal), 2010 Q3
- Asset Management Industry: Net Assets (Italy), 2006 Q1-2010 Q2
- Asset Management Industry: Trend in Type of Funds (Italy), 2008-2010 Q2
- Asset Management Industry: Net Sales in Equity Funds (Italy), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Money Market Funds (Italy), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Bond Funds (Italy), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Balanced Funds (Italy), 2008 Q1-2010 Q3
- Asset Management Industry: Market Share Analysis (Italy), 2010 Q3
- Asset Management Industry: Net Assets (Greece), 2006 Q1-2010 Q2
- Asset Management Industry: Trend in Type of Funds (Greece), 2008-2010 Q2
- Asset Management Industry: Net Sales in Equity Funds (Greece), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Money Market Funds (Greece), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Bond Funds (Greece), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Balanced and Other Funds (Greece), 2008 Q1-2010 Q3
- Asset Management Industry: Market Share Analysis (Greece), 2010 Q3
- Asset Management Industry: Net Assets (Spain), 2006 Q1-2010 Q2
- Asset Management Industry: Trend in Type of Funds (Spain), 2008-2010 Q2
- Asset Management Industry: Net Sales in Equity Funds (Spain), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Money Market Funds (Spain), 2008 Q1 -2010 Q3
- Asset Management Industry: Net Sales in Bond Funds (Spain), 2008 Q1-2010 Q3
- Asset Management Industry: Net Sales in Balanced Funds (Spain), 2008 Q1-2010 Q3
- Asset Management Industry: Market Share Analysis (Spain), 2010 Q3
- Asset Management Industry: GDP Growth Rate (World), 2006-2012
- Asset Management Industry: Financial Balances as Percent of GDP (World), 2006-2012
- Asset Management Industry: Current Account Deficit as Percent of GDP (World), 2006-2012
- Asset Management Industry: Consumer Price Index (World), 2006-2012
- Asset Management Industry: Gross National Savings as Percent of GDP (PIGS), 2006-2009
- Asset Management Industry: Household Savings Rate as Percent of Personal Disposable Income (Europe), 2006-2012
- Asset Management Industry: Unemployment Rate (World), 2006-2012
- Asset Management Industry: Long-term Interest Rate (Europe), 2006-2012
- Asset Management Industry: Foreign Direct Investment Restrictiveness Index (World), 2010
- Asset Management Industry: Ease of Doing Business Rank (World), 2010
- Asset Management Industry: Net Assets versus GDP Growth Rate (World), 2007-2009
- Asset Management Industry: Penetration of Net Assets (World), 2009
- Asset Management Industry: Market Capitalization as Percent of GDP (World), 2006-2009
- Asset Management Industry: Stocks Traded as Percent of GDP (World), 2006-2009
- Asset Management Industry: Stock Turnover Ratio (World), 2006-2009