24/02/2012
Funds cost less in Spain than in the rest of Europe
Based on statistics from EFAMA as of the end of 2010, the Spanish Inverco association of asset management firms, total expense ratios (TER) for Spanish funds (1.07%) are on average 30% lower than the European average (1.53%). Viewed from the other perspective, this means that European funds are on average 43% more expensive than Spanish funds. This does not apply to all asset classes, as the TER for Spanish equity funds (199 basis points) compares with a European average of 175bps; for diversified funds, the Spanish average is 145bps, compared with a European average of 142bps. On average, the management commission for Spanish funds is 96bps, compared with 127bps for Europe, while other fees come to 11bps, compared with 26bps. Inverco says that the proportion of TER retained by Spanish asset management firms averaged 31% (33bps), compared with 42% (64bps) on average for Europe, but that the amount paid out as soft commissions is higher, at 59% (63bps) compared with 41% (62bps).
