TER is the abbreviation for Total Expense Ratio. The TER includes the total fund administration costs. These are charged directly to the fund assets each year, thereby reducing the fund’s return. If the fund invests in other funds, it should not be forgotten that the sub-fund also has costs. If these costs of the subfund are included in the TER of the fund of funds, this is also referred to as a synthetic TER.
The return figures shown in the factsheets have been generated after deduction of the TER costs.
Would you like to be informed about news from finpension? Then subscribe to our newsletter.