The fund industry in Austria is subject to strict regulatory requirements based on EU (European Union) directives. The UCITS (Undertakings for Collective Investment in Transferable Securities) directive and the AIFM (Alternative Investment Fund Managers) directive form the legal basis for the management and distribution of fund products. These regulations ensure a high level of protection for investors and strengthen confidence in the fund industry.
Current market developments
In 2024, the Austrian fund industry has performed surprisingly well despite high geopolitical risks, spurred on by AI technology (artificial intelligence), falling inflation and moderately positive economic momentum.
Assets under management (AUM) totaled 215 billion euro at the end of August 2024, an increase of 2% since the beginning of the year.
Development of fund volumes in the last 12 months in billion euro
Mixed funds are particularly popular in Austria
Almost 48% of investments are in mixed funds, 29% in bond funds and around 21% in equity funds (as of the end of August 2024).
At the beginning of August, there was a temporary consolidation on the equity market – triggered by fears of recession. Meanwhile, the markets have recovered again. In view of the uncertain development of the global economy and the upcoming US election, volatility is likely to remain high.
UCITS – Split by fund categories in billion euro (08/2024)
Market leaders and players
The leading players in the Austrian fund industry include both domestic and international companies. Investment companies such as Erste Asset Management GmbH, Raiffeisen Kapitalanlage-Gesellschaft m.b.H, and the Austrian subsidiaries of global financial institutions play a central role. They offer a broad range of fund products and make a significant contribution to the innovative strength and competitiveness of the market.
The market share of the top five investment fund companies in Austria (as of the end of August 2024):
Erste Asset Management GmbH (20.7%)
Raiffeisen Kapitalanlage-Gesellschaft m.b.H. (19.5%)
Amundi Austria GmbH (11.4%)
KEPLER-FONDS Kapitalgesellschaft m.b.H. (8.8%)
3 Banken-Generali Investment-Gesellschaft m.b.H (5.7%)
Product diversity and innovation
The Austrian fund industry offers a wide range of products. In addition to traditional equity and bond funds, multi-asset funds are becoming increasingly important. The trend towards sustainable investments is particularly noteworthy. ESG funds are seeing high inflows as more and more investors attach importance to environmental and social criteria as well as good corporate governance.
Technological developments
Digitalization is playing a central role in the evolution of the fund industry. The use of technologies such as artificial intelligence and big data enables more efficient fund management and the creation of customized investment strategies. Investors also benefit from user-friendly digital platforms that facilitate access to fund products and provide transparent information.
Source: Association of Austrian Investment Companies (VÖIG), as of September 2024