- Institutional investors hold two thirds of free float in domestic stocks
- Breakdown by region: USA (27.7%) ahead of Austria (19.6%) and Great Britain (13.3%)
- Top institutionals: sovereign fund Norges (NO), Erste Asset Mgmt (AT) and Vanguard Group (US)
- Share of passively managed funds hits new high
(Vienna) The IPREO study (pdf-file 350 KB) published today and commissioned by the Vienna Stock Exchange finds that two thirds of free float of Austrian stocks traded in the top segment 'prime market' (EUR 26.4 billion) were held by institutional investors (as of 31 December 2016).
"The annual survey of investors shows that stocks traded on the Vienna Stock Exchange continue to be highly attractive to global investors. Over 80% of the trading volume on the Vienna Stock Exchange originates abroad. To ensure that the best trading conditions are in place, we strive to continuously mobilise additional liquidity for the market. Narrow trading spreads and full order books make us the market leader for Austrian stocks, despite fierce competition," explained CEO Christoph Boschan.
US, Austrian and UK investors lead the way
The largest group of institutional investors in Austria’s leading companies come from the USA, with a share of 27.7% (31 Dec. 2015: 27.65%). Austrian institutional investors rank second with a share of 19.6% (31 Dec. 2015: 21.9%). Third place in the ranking of institutional investors is Great Britain – despite Brexit – with 13.3% (31 Dec. 2015: 15.7%), followed by Norway, as the third European country, with 7.3% (31 Dec. 2015: 7.2%).
"International investor interest is hugely important for Austria’s prosperity. Foreign investors recognise the investment opportunities of Austrian companies, many of which have a global footprint and are market leaders in their sectors. Politically, every effort should be made to ensure that foreign investors do not find it harder to invest here than elsewhere," said Christoph Boschan on the importance of international investors for the Vienna Stock Exchange.
Ranking: Top institutionals
The Norwegian sovereign fund leads the ranking of the largest institutional investors in prime market stocks. The investment management company of Erste Group ranks second and the American asset manager Vanguard Group third. Five of the top institutional investors come from the USA.
1 Norges Bank Investment Management (Norway)
2 Erste Asset Management GmbH (Austria)
3 The Vanguard Group, Inc. (USA)
4 BlackRock Fund Advisors (USA)
5 Dimensional Fund Advisors, L.P. (USA)
6 Fidelity Management & Research Company (USA)
7 Raiffeisen Kapitalanlagegesellschaft mbH (Austria)
8 Northern Cross, LLC (USA)
9 BlackRock Advisors, LTD (Great Britain)
10 State Street Global Advisors, LTD (Great Britain)
Passive investment style enormously popular
Passively-managed funds in Austrian equities are becoming more and more popular. At present 16.3% of investments by institutional investors track an index (2015: 15.3%). Overall, both institutional value investors (32.7%) as well as growth investors (35.8%) find attractive investment opportunities in the listed companies of the Austrian ATX Prime, as shown by their significant exposure to Austrian equities.
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The Vienna Stock Exchange is the only securities exchange in Austria. It features a modern infrastructure and supplies market data and relevant information. It offers Austrian companies maximum visibility, high liquidity and utmost transparency. Investors can rely on the smooth and efficient execution of exchange trades. The Vienna Stock Exchange operates a central market datafeed for Central and Eastern Europe (CEE) and is well established as an expert for the calculation of indices with a reference to the region. Wiener Börse AG, together with its holding company, CEESEG, cooperates with over ten exchanges in CEE and is globally recognized for this unique know-how.