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When purchasing fund shares, fees are usually charged according to the value of the share. Moreover, the fund manager deducts a management fee from the fund assets as payment for his administrative activities. However, these are far from being all the fees associated with funds. The TER (Total Expense Ratio) records and discloses all commission and costs encumbering the fund. These costs include fees charged by the management and the custodian bank, administrative expenses, asset management or consulting fees, and any performance-dependent compensation payable to the asset manager. The TER also encompasses marketing expenses, investment fund monitoring fees, expenses incurred by NAV (net asset value) calculations, publishing expenses, audit fees, legal consulting expenses, taxes and surcharges.

Term-Nr.: 397

German: Kosten der Fonds (483)

Source: Swiss Fund Guide 2010 m. e. E., 20.04.2010

Notice: The contents of this terminology collection Lawpedia® with a focus on business law (especially financial market law) have been researched with great care and compiled on the basis of an extensive flash card, training materials and literature. The various sources (as far as they could be found) can be found in the abbreviations and source references. References to other sources are welcome. Despite the care taken, the provider cannot accept any liability for the accuracy, completeness and topicality of the information provided. The information is of a general nature in particular and does not constitute legal advice in individual cases.

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