A group of independent players offering innovative online platforms e.g. F-trust, Star Funds, KupFundusz.pl or IQ Money is attempting to disrupt investment fund distribution � a business traditionally controlled by large banks in Poland, says Marcin Mazurek, director of Inteliace Research, during a presentation of Inteliace’s latest report, Asset Management and Investment Funds Market in Poland, 20182020.
Total assets under management (AuM) in Poland across key segments: investment funds, insurance, and pension assets decreased slightly in H1 2018 to PLN 627 billion. The recent stagnation in assets under management was largely an effect of the weaker performance of the local stock market in the first half of 2018 which translated into lower valuations of equity portfolios. The correction affected mostly 2nd pillar pension funds, which by law have to overweight equities. Other segments remained relatively stable thanks to new contributions offsetting weaker performance. Despite multiple headwinds, the asset management industry in Poland remains in a growing trend.
The asset management industry in Poland is medium-concentrated with top four groups: PZU, Aviva, NN and Ipopema managing roughly half of all assets in the market.
The outlook:
Assets under management in Poland are expected to sustain a solid growth through 2020. The most action is likely to take place within 3rd pillar pension funds since the new legal framework will mandate employers to enrol all employees and to finance contributions to employee plans. Also, insurance assets and investment funds are likely to grow thanks to key driving forces: increasing wealth of individuals and low interest rates at banks. Moreover, the recent rise of online sales platforms offering competitive distribution conditions (with low or no load fee), advanced fund selection tools and fund advisory are expected to support retail investments.
As far as the profitability of asset managers is concerned, it could be expected that the pressure on margins will intensify with the upcoming fund management fee cap. A cost pressure is likely to trigger a new wave of M&A activity and ultimately lead to higher concentration around the largest and most efficient players
For more information on recent developments in the Polish asset management sector, please refer to the publication Asset Management and Investment Funds Market in Poland, 20182020 available at http://www.inteliace.com/en/00169_Investment_Funds_and_Asset_Management_in_Poland_2018.html
About The Report
Asset Management and Investment Funds Market in Poland, 20182020 is the latest full update of the comprehensive publication on the asset management sector in Poland. It describes the present market structure and recent trends in the market and also provides short-term estimates of key volumes for the years 2018 through 2020.
About Inteliace Research
Inteliace Research is an independent consulting company that focuses on the financial markets in Central and Eastern Europe. Inteliace Research specializes in management consulting and custom research services, including market entry strategy, product launch, performance and benchmarking analysis. During 2005-2018, Inteliace Research provided its products and services to over 65 clients, including major CEE banks and several “The Banker” top world banks. To learn more about the company, visit Inteliace Research’s webpage: www.inteliace.com
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