The fund fees incurred by investors in Austrian retail funds, fell marginally in 2023 in comparison with the year before: While the maximum annual management fees remained unchanged based on the volume-weighted average at 1.13% (2022: 1.13%), the maximum entry costs when purchasing units at 3.53% (2022: 3.61%) and the transaction fees are on average somewhat lower at 0.15% (2022: 0.17%). These are the findings of the annual “FMA Market Study on Fees charged by Funds for Austrian Retail Funds 2024”. The market study was drawn up based on information in accordance with the PRIIPs Regulation [1] for key information documents (PRIIPs-KIDs) drawn up in 2023. The medium-term comparison shows that ongoing management fees of Austrian retail funds are only subject to minor fluctuations of between 1.13% (in 2019 and 2024) and 1.15 % (2022). The analysis covers 995 funds of Austria management companies (KAGs), real estate management companies (Immobilien-KAGs) an alternative investment fund managers with an aggregated net asset value of almost € 113 billion (at 31.12.2023) covering 53% of the total 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.
“Our annual market study creates cost transparency in the Austrian fund market,” remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller: “It gives investors the possibility to compare the fees of a specific product with the average for this investment category on the basis of the legally prescribed information alone, as well as to compare them against the cost structures of other investment categories or risk classes. This makes it easier for prospective investors to make a decision that is tailored towards their financial requirements.”
The greater the risk, the higher the fund fees
There are significant differences in the costs between 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, in terms of the volume-based average, bond funds charge significantly lower fees compared to equity funds: in terms of ongoing management fees of 0.62% cf. 1.51%, of maximum entry fees of 3.07% cf. 4.24% and transactions fees of 0.16% cf. 0.17%. In addition, fund fees tend to be higher the higher the risk class. Only risk class 1, real estate funds, displays high fees. Retail funds that take into account sustainability criteria in accordance with the Austrian EcoLabel 49 (UZ49; Umweltzeichen 49) for sustainable investment products, charge on average somewhat lower fees that other funds in the same risk class. In the sustainability classification under the EU Disclosure Regulation (SFDR)[2], in contrast the charges for light green funds (Article 8) of 1.19% and dark green funds (Article 9) of 1.34% are visibly higher than for brown funds (Article 6) at 1.05%. Correlation is observable here that the proportion of equity and mixed funds is significantly higher among sustainability funds.
EU-wide comparison: market as a whole around the average – but: bond funds are significantly cheaper, and equity funds significantly more expensive
According to the “ESMA Annual Statistical Report 2024”, which only analyses the ongoing fees of investment funds in accordance with the UCITS Directive[3] in European comparison the fees of Austrian retail funds are around the same as those in Germany as well as the EU average. However, there are significant differences when differentiated by investment strategies: while costs in Austria, German and Europe as a whole are the same at 1.6%, they are significantly lower for Austrian bond funds 0.7% (Germany: 0.8%; EU: 1.0%), but in contrast significantly higher for equity funds at 1.9% (Germany: 1.5%; EU: 1.6%)
The full FMA Market Study on Fees charged by Funds for Austrian Retail Funds 2024 can be downloaded from the FMA website at 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
+43 / (0)1 / 24959-6006
43 / (0)676 / 88 249 516
[1] Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)
[2] Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector
[3] Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)