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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

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