FMA Market Analysis: Austria’s licensed investment undertakings manage around € 51 bn client assets – with a focus on professional clients

Release Date: 18. May 2021 |

In recent years, Austrian investment undertakings have specialised as financial services providers for institutional investors. The 112 investment firms and investment services providers licensed by the FMA (as at 31.12.2020) collectively managed client assets of approx. € 51 billion in 2020, with the vast majority of this amount, 90.41%, being entrusted to them by professional clients. In the case of individual portfolio management, in which a total of € 23.2 billion is managed, the proportion held for professional clients makes up 93.4% of the assets under management. Measured in terms of revenue, portfolio management accounts for over 50% of business at € 88.5 million. In addition investment firms active in Austria act as third-party managers of investment funds currently manage € 12.7 billion.

Wholesale clients versus external distribution
In addition to the high proportion of professional clients as well as advising wholesale clients and managing large volumes there is an increasing focus on external distribution. 40% of investment undertakings use external agents making up approximately 25% of revenue.

Visible trend towards dynamic investment strategies
Both for retail clients and professional clients, Austrian investment undertakings predominantly focus on a dynamic investment strategy. Professional clients in particular are increasingly moving away from conservative investment strategies towards dynamic investment strategies. The dominant financial instruments used are investment funds under the EU Directive of undertakings for collective investment in transferable securities (UCITS) and alternative investment funds (AIFs) as well as shares and bonds.

A new regime for securities supervision
Following the structural change in the market for Austrian securities undertakings that have been brought to fruition, the industry is already preparing for the implementation of the new European regulatory regime, the Investment Firms Directive (IFD) and the 'Investment Firms Regulation' (IFR), which will place the market for investment firms on a completely new foundation.

Journalists may address further enquiries to:

Annemarie Bauer
+43 / (0) 1 / 24959-6007
+43 / (0) 676 / 88 249 519

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