IMA chief executive Richard Saunders says investors are well served by total expense ratios and questions the benefits of an 'annual percentage rate'.
It's sometimes said that what the fund management industry needs is an APR - the annual percentage rate which provides a single number with which to compare different credit offerings. Investors need to be able to compare the true costs of different funds so they can make informed choices about how and where to invest their money. There is a measure of costs mandated by EU regulators - the total expense ratio, or TER, shortly to be replaced by a slightly tweaked version to be known as the "ongoing charges" figure. But this gets criticised in some quarters because of what it leaves out...
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