ESMA - Annual Statistical Report on the cost and performance of retail investment products

ESMA published its first Annual Statistical Report on the cost and performance of retail investment products. The Report covers Undertakings for Collective Investment in Transferable Securities (UCITS), Alternative Investment Funds sold to retail investors (retail AIFs) and Structured Retail Products (SRPs) and documents the significant impact of costs on the final returns that retail investors make on their investments:

- the charges for UCITS funds, taken all together, reduce their gross returns by one quarter on average;

- the cost impact varies widely, especially depending on the choice of product, asset class, fund type; and

- management fees and other on-going costs constitute over 80% of investors costs, whilst entry and exit fees have a less significant impact.