The fund fees that are charged for investors in Austrian retail funds have not changed significantly as of the reporting date of 31.12.2020 compared to the end of 2019. The volume-weighted average maximum annual management costs are 1.24 % (2019: 1.23%), while ongoing annual costs are 1.13% (1.14%); in contrast the maximum entry charges when purchasing unit certificates have fallen significantly from 3.60% in 2019 to 2.80% in 2020. 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 1,014 funds with a total volume of more than € 105 bn as of the 31.12.2020 reporting date. 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, and also offers a comparison with European key figures.
The FMA’s annual market study allows investors based on the details contained in the mandatory Key Investor Information Document 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 Board, 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 0.98%, and for equity funds at 1.60%; the ongoing charges stood at 0.65% and 1.66% respectively, with the values barely unchanged compared to the previous year. The maximum entry charges have fallen on average for both types of funds: in the case of bond funds from 3.41% to 2.49%, in the case of equity funds from 4.25% to 3.13%, with the difference in entry charges also having reduced from 1.12% to 0.92%. 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 in comparison with the market as a whole lower charges in terms of both ongoing charges and maximm entry charges. The full “FMA Market Study 2021 on Fees charged by Austrian Retail Funds ” can be found on the FMA website under the following link.
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.