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More than 92 per cent of European structured product documents disclose only an entry cost, and about one in ten projects a loss in its own moderate scenario

EvidenzaFiguraCampione
Structured retail product documents analysed12,233, about 31bn euro of sales, 56 per cent of 2021 salesdocuments issued in 2021
Documents with cost information disclosing entry costs onlyover 92%the same sample, restricted to documents with cost information
Documents also disclosing recurring costsabout 4%same
Products projecting a negative return in their own moderate scenariocirca il 10%same
Documents showing a single cost component above their stated totalno count publishedsame
Collective investment ongoing charges, equity1.5% a year2017 to 2021, no fund count stated
Collective investment ongoing charges, bond1.0% a yearsame
Collective investment ongoing charges, mixed1.5% a yearsame
Total costs including subscription and redemption, equity1.7%same
Total costs including subscription and redemption, bond1.2%same
Total costs including subscription and redemption, mixed1.7%same

European Securities and Markets Authority market report of 17 January 2023. No significance statistic accompanies any of these averages, and no fund or share class count is published for the cost averages.

A regulator read 12,233 actual key information documents issued in 2021, covering about 31 billion euro of sales. Four per cent disclosed recurring costs. Some documents showed a single cost component larger than their own stated total.

12,233Documents read
over 92%Disclosing entry costs only
about 4%Also disclosing recurring costs
circa il 10%Negative return in the moderate scenario

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