The fees incurred for investors in Austrian retail funds remained more or less the same in 2022 as they had in previous years: The maximum annual management fees as volume-weighted average stood at 1.13%, while the maximum entry charges for purchasing units in funds standing at 3.61% and average transaction costs of 0.17%. These figures can only be partially compared with the figures for preceding years, as PRIIPS-KIDs, key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs), are now used instead of the customer information document (German abbreviation: KID) for Austrian retail funds. They have certain methodological differences in terms of their presentation. A 5-year comparison of the median values of ongoing management fees using the PRIIPs methodology however shows that they have only changed by a marginal amount over this period and fluctuated between 1.15% (2022) and 1.12% (2023). 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 PRIIPs-KIDs as well as the fund regulations for 978 funds with a total volume of more than € 107.20 bn as of the 31.12.2022 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.
“Based merely on the legally prescribed information, our market service provides every investor with the possibility 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. “We are ensuring market transparency and are also helping the consumer to reach a tailor-made decision 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, as a volume-weighted average bond funds charges are 0.63%, whereas those of equity funds are 1.56%, with their respective maximum entry charges standing at 3.22% compared to 4.36% and transactions fees standing at 0.16% compared to 0.21%. Retail funds that take into account sustainability criteria in accordance with the Austrian Ecolabel 49 (Umweltzeichen 49 (UZ49)) for sustainable investment products, on average charge lower fees than other funds in the same risk category.
The full “FMA Market Study 2023 on fees charged by Austrian Retail Funds” can be found on the FMA website under the following link: https://www.fma.gv.at/en/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 (FMA Media Spokesperson)
+43/(0)676 88 249 516