Spain’s asset management set to change dramatically, RBC Dexia and Accenture say in joint report

Spain’s asset management is moving fast towards a strong concentration of the industry, with fewer and more specialised managers likely to shape the future domestic market, according to a joint research published today by RBC Dexia and Accenture.

In the 40-page report, The Spanish investment market, evolution and change, RBC and Accenture argued that the shape of the industry is set to change dramatically in the future, as it currently faces the twin challenges of building growth and coping with reform within an ongoing scenario of financial crisis, both European and global.

“Spanish fund firms are concentrating on bottom-line indicators such as fund performance and increased assets under management. They recognise the need to restore credibility and investor confidence by showing they are delivering on their performance promises,” said José Maria Alonso-Gama (pictured), managing director of RBC Dexia in Spain.

The report, coordinated by Óscar García, senior manager capital markets for Spain at Accenture, is based on the results of a survey conducted in the first quarter of 2012 on 33 Spanish asset management companies, collectively representing 65% of Spain’s assets under management.

The domestic financial sector is already undergoing a major restructuring process.
The total number of funds owned by Spanish managers has fallen by about 20% to around 2,500 within the last three years and the market has seen a growing number of investment manager mergers and acquisitions.

The structure of the asset management industry is already highly concentrated among large institutions and fragmented for the smaller players.

The top three managers by volume of assets account for 45% of the industry’s overall assets under management, while the others hold a share of domestic assets well below the European average.

“Only eight investment funds operating in Spain currently administer over €1bn. In other countries in the European region, the top five companies account for approximately 50% of the market,” the report warned, pointing out that the average assets of investment funds are considerably higher.

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