In 2021, the fund fees that are charged for investors in Austrian retail funds increased marginally in comparison to the preceding year: the volume-weighted average maximum annual management costs were 1.26% (2020: 1.24%), ongoing annual costs 1.15% (2020: 1.13%) and the maximum entry charges when purchasing unit certificates were 2.82% (2020: 2.80%). These are the findings of the FMA’s annual “Market Study on Fund Fees charged by Austrian Retail Funds” which was published today, and which has analysed the legally prescribed information contained in Key Investor Information Documents (KIIDs) as well as the fund regulations for 1,009 funds with a total volume of more than € 123.7 billion as of the 31.12.2021 reporting date. This is 54% of the entire Austrian fund market. The study presents the key figures in a tabular and easy to understand manner, in detail and broken down by fund type, investment strategy as well as risk class over the course of the last four years.
“Our annual market study provides every investor with the opportunity, based on the details contained in the mandatory Key Investor Information Document (KIID), to compare the fees for a specific product against the average for that category of investment, as well as with the cost structures of other investment categories or risk classes,” remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller. “In this way we create transparency in the market and also help consumers to make a decision that is tailored for their investment requirements.”
The greater the risk, the higher the fund fees
There are significant differences between the various different investment strategies and risk classes. Short-term bond funds have the lowest charges on average by investment strategy, following by bond funds, real estate funds, mixed funds and equity funds. For example the maximum management fees for bond funds stood on average at 0.97%, and for equity funds at 1.62%; the ongoing charges stood at 0.66% and 1.63% respectively, with the values barely unchanged compared to the previous year. The average maximum entry charges have increased slightly: in the case of bond funds from 2.49% to 2.65% and from 3.13% to 3.22% for equity funds. The connection between the risk class and fee level remains significant: the higher the risk, then the higher fund fees also tend to be, although there is also a connex to the investment strategy. The strongest growing type of fund in terms of volume, sustainability-oriented funds[1], on aggregate show slightly lower charges in comparison with the market as a whole.
The full “FMA Market Study 2022 on fees charged by Austrian Retail Funds” can be found on the FMA website under the following link: https://www.fma.gv.at/en/fma-spotlight-on/fees-charged-by-funds/.
An easy to understand presentation about the fees charged by funds as well as explanations about their allocation can be found in the FMA’s information series “Let’s talk about money”: https://redenwiruebergeld.fma.gv.at/en/fund-fees-compare-them/
Journalists may address further enquiries to:
Klaus Grubelnik
+43/(0)1/24959-6006
+43/(0)676 88 249 516
[1] Especially sustainable retail funds in accordance with Austrian Ecolabel 49 for Sustainable Investment Products.