TER on New Star's Heart of Africa double industry average

New Star's Heart of Africa fund, targeting the sub-Saharan region, has a TER over twice the industry...

New Star's Heart of Africa fund, targeting the sub-Saharan region, has a TER over twice the industry average. The group reports a total expense ratio for the vehicle of 3.78%, over twice the current average of 1.56% according to Morningstar. In January, the fund's TER reached as high as 5.75%. New Star said the higher than usual annual charge of 1.75% contributes to the higher expense level, as do additional costs of investing in African markets. "It is also worth bearing in mind the fund is relatively small so it is harder to dilute costs," said a spokesperson. A further 1.5% of ...