AIC urges members to drop TER for 'ongoing charges'

The Association of Investment Companies (AIC) is urging members to stop publishing TERs, instead recommending closed-ended funds disclose ‘Ongoing Charges' to give investors a greater level of clarity.

The AIC said publishing ‘Ongoing Charges' would ensure trusts are meeting the requirements of European legislation, which states they must produce Key Investor Information Documents (Kiids). Under the new charging structure trusts will be required to disclose all charges, but the AIC is recommending performance fees are published separately. Ian Sayers, director general at the AIC, said the change would enable investors to make easier comparisons between trusts and open-ended funds in the run up to RDR. "Having one single methodology for calculating Ongoing Charges will help to red...