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New Tiburon Research Report - Emerging Opportunities in the English Speaking Countries Markets: United Kingdom & Ireland, Canada, Australia & New Zealand, and South Africa

Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, is pleased to announce the release of its newly updated research report on English Speaking Countries Markets. This research release summarizes some of the report's key findings.

Please click the image above to view the table of contents for Tiburon's Emerging Opportunities in the English Speaking Countries Markets: United Kingdom & Ireland, Canada, Australia & New Zealand, and South Africa Research Report

The purpose of this report is to provide readers with an initial overview of the future of the brokerage, investments, private banking, & wealth management industries in the other English-speaking countries markets outside of the United States, specifically the United Kingdom & Ireland, Canada, Australia & New Zealand, and South Africa, which often provide the initial entry point for the international strategies of US financial services firms. In short, this report intends to define the future of advice in these markets. Additionally, this report compares these findings to those of the United States in order to provide readers with an objective view of the future of advice within these English speaking countries. Many of the English speaking countries have trends parallel to those in the US, but also many fundamental market differences.

Tiburon’s first draft of this report was written in 2006; that version was developed by consolidating prior Tiburon research into one report.

This is Tiburon’s second draft of this report. This version seeks to bring this report into alignment with other Tiburon research reports, and also adds substantially to the profiles of some core Tiburon clients, including TD Bank Financial Group.

Key Findings
This report has a long list of interesting facts to share:

Evolution of the English Speaking Countries Markets
This section reviews the evolution of the English speaking countries markets.

Market History

  • The United Kingdom’s Britain expanded its overseas empire from 1775 to 1783, but lost the American Colonies in the Revolutionary War
  • Australia ratified its constitution in 1901
  • Ireland won its independence in 1922
  • The United Kingdom’s economy began to recover and it joined the European Union in 1973

Market Definition

  • The United Kingdom leads the other English speaking markets in GDP as well, but all combined have a smaller GDP than the US by a multiple of three
  • The English speaking countries market consists of 165 million people, with the United Kingdom & Ireland accounting for about 40%

Market Growth

  • The English speaking countries population is 165 million
  • The English speaking countries market GDP is $3.8 trillion

Market Segmentation

  • Merrill Lynch expanded its services into Canada in 1998 with the acquisition of a Toronto-based brokerage firm Midland Walwyn Capital
  • The Charles Schwab Corporation was quick to follow with the purchase of two small brokerage firms priority brokerage and Porthmeor Securities
  • The five largest Canadian Banks control 93% of assets compared to only 19% by the United States' largest five
  • Discount brokerage accounts for 20%-25% of the retail brokerage market in Canada
  • Most of the Canada’s discount brokers are subsidiaries of the country’s six largest banks
  • Australia has a big issue of a rapidly aging population; by 2051, the share of the country’s population over 65 years old is expected to double
  • South Africa is the most advanced nation in Africa, with four times the GDP of Egypt, the next largest African economy
  • The cost of a Big Mac is $1.38 in South Africa, as compared to $2.43 in US and $2.87 in the Euro zone
  • South African unit trusts own just 3%-4% of the market capitalization of the JSE, compared to the NYSE where mutual funds own about 40% of the market value
  • Old Mutual, Investec, and Saniam control almost half of the South African unit trust market

Key Issues

  • US consumer wealth dwarfs that of the English speaking markets, with three times the wealth of all of those markets combined
  • United Kingdom wealth creation has accelerated, as the assets of the high net worth investors there grows at nearly 10% annually
  • The British high net worth & ultra-high net worth class make up one-third of the affluent population, but control nearly three-quarters of financial assets
  • Australia’s retirement plan assets under management have shot up due to the government’s increased activity in forcing employees to put money away
  • One-fifth of British invest in stock or stock funds; this is low compared to the US, but high compared to other European countries
  • The NASDAQ acquired a 15% stake in the London Stock Exchange For $781 million, and eventually boosted it to 25%
  • United Kingdom equity mutual funds cost investors 75% more in fees as do US mutual funds
  • The British ultra-high net worth asset class holds half of its assets in offshore investments
  • The share of Canadian institutions managing greater than $5 billion in fee-accounts is expected to grow by as much as one-third

Future Predictions for the English Speaking Countries Markets
This section discusses future predictions for the English speaking countries market.

Projected Winning Markets

  • The largest banks in the United Kingdom & Ireland are huge, with all of the top ten exceeding $130 billion in assets, and the leader having well over $1 trillion in assets
  • The United Kingdom’s four largest banks, HSBC Holdings, Royal Bank of Scotland, Barclays, & Lloyds TSB hold three-quarters of the United Kingdom banking market
  • Canada has a concentrated market, with five banks controlling almost all banking industry assets
  • The largest banks in Australia & New Zealand are much smaller than those in the US; the big four banks in Australia combined have less than $900 billion
  • ABSA Group, Standard Bank, First National Bank, & Nedcor Hold 70% of South Africa’s banking assets; 30% is held by the remaining 51 banks

Venture Capital & Private Equity Opportunities

  • The volume of leveraged buyouts is up big in the United Kingdom since 2003, suggesting increasing venture capital & private equity activity
  • Reverse mortgages are a potential opportunity in the United Kingdom & Ireland
  • Nearly all Canadian investment managers have connected onto an electronic trading system so far
  • The venture capital & private equity opportunities in Australia & New Zealand include online banking

To better understand the developments in English Speaking Countries Markets, executives can purchase Tiburon's English Speaking Countries Markets: United Kingdom & Ireland, Canada, Australia & New Zealand, and South Africa research report where the key findings highlighted above are covered in greater detail. Please contact Sarah Sage at SSage@TiburonAdvisors.Com or 415-789-2540.

More Information

The following links will open specific pages on Tiburon's web site:

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Tiburon Strategic Advisors

Tiburon Strategic Advisors, based in Tiburon, CA, was formed in 1998 to offer market research & strategy consulting services to all types of financial institutions and investment managers:

  • The firm has served over 300 corporate clients and completed over 1,100 projects since its founding, and today, its knowledge base includes mutual fund distribution, separately managed account programs, alternative investments, wealth management, insurance products, banking services, the fee-only financial advisor market, the CPA firm market, the family office market, and various international markets.
  • Tiburon holds a series of CEO Summits semi-annually for its executive-level clients. The next CEO Summit is scheduled for October 14-15, 2008 (San Francisco, CA) at the Ritz Carlton Hotel in San Francisco, CA. 2009 dates are April 9-10, 2009 (New York, NY), and October 7-8, 2009 (San Francisco, CA). Attendance is by invitation only and attendance at each Summit is limited to 125 senior industry executives. Visit the CEO Summits section of Tiburon's web site for details on current and past CEO Summits, including attendee lists, meeting agendas, and highlights. Please contact Tiburon's Managing Principal Chip Roame at CRoame@TiburonAdvisors.Com or (415) 789-2541 if you are a Tiburon client and have an interest in attending a future Tiburon CEO Summit.
  • Tiburon has published forty-two ~300-400+ page research reports, which offer detailed analyses of growing business segments; each is available for $5,000; these reports can be ordered by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540.
  • Tiburon offers an annual research report retainer service, whereby dozens of clients receive all Tiburon reports published within a year for $25,000; clients can subscribe to Tiburon's 2008 Research Report Retainer by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540.
  • Tiburon also offers a database access program, whereby it shares its 300,000+ person industry executives contacts database with dozens of clients for $25,000 per year (distributed quarterly); clients can subscribe to Tiburon's Database Access Program by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540.
  • Tiburon offers thirteen online business benchmarking tools that are available to all types of financial advisors in an effort to help them benchmark their business practices and build more successful businesses. The sites include www.BrokerBestPractice.Com for wirehouse & regional brokers, www.FABestPractices.Com for fee-only financial advisors, www.IndependentRepBestPractices.Com for independent reps, and www.PrivateBankerBestPractices.Com for private bankers. Almost 5,000 advisors have used these tools. By completing one of the online surveys, financial advisors can access a FREE copy of the relevant comprehensive Tiburon research report, which summarizes and analyzes the collective results.
  • Tiburon's weekly research releases, like this one, are emailed for free to interested industry executives, media representatives, conference planners, and individual financial advisors. Over 55,000 industry executives now receive these releases. Feel free to sign up to receive future research releases at Tiburon's web site (www.TiburonAdvisors.Com) if this release was passed to you by a colleague and you would like to receive them directly in the future.
  • Tiburon plans to expand its workforce in 2008-2009. Specifically, the firm plans to add two-to-three incremental principals (the most senior role at the firm) and several more research managers in 2008-2009.
  • Tiburon has built three executive programs (CEOs-in-Residence, Financial Advisor Roundtable, and Consulting Fellows) in an effort to bring the experiences of additional senior level industry executives to Tiburon clients. Feel free to contact any of the members of Tiburon's executive programs directly or ask that they be included in any ongoing Tiburon has built three executive programs (CEOs-in-Residence, Financial Advisor Roundtable, and Consulting Fellows) in an effort to bring the experiences of additional senior level industry executives to Tiburon clients. Feel free to contact any of the members of Tiburon’s executive programs project.

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