Fof charges growing complicated

TERS

Calculating the TER of funds of funds is becoming increasingly complicated as the FSA and IMA requir...

Calculating the TER of funds of funds is becoming increasingly complicated as the FSA and IMA require groups to use the cost measurement on every share class of each underlying holding. The addition of these multiple TERs on a single vehicle, adds a complex layer to the overall cost calculation for multimanager vehicles. The regulator requires the total expense ratio of all funds to be included in product literature but, according to Lipper Fitzrovia, calculating the figure for funds of funds can be problematic. While the statistics provider calculates TERs using publicly available infor...