TERs

[MikyMouse]

Just a quick one on TERs

In the context of an RA and Unit Trusts do TERs only amalgamate the cost of that particular UT and doesn't take into account the specific RA management fee? (wrapper fee??)

So in order to calculate the total fees you would have to add the TER for the specific UT and the RA management fee?

 

[Verde]

Total cost to the investor is (in simple terms) TER(Unit trust management fee and costs) + Admin(wrapper fees/platform fees) + adviser fees.

 

[MikyMouse]

Total cost to the investor is (in simple terms) TER(Unit trust management fee and costs) + Admin(wrapper fees/platform fees) + adviser fees.

I thought so, Thanks!

 

[roberth]

"Currently, unit trust managers are required to publish total expense ratios (TERs) for their funds. These reflect the asset management fees, performance fees, custodian and trustee fees, and audit fees paid from within the fund, but, in line with international norms, TERs exclude trading costs, such as stockbroking costs and Strate fees. TERs are typically published quarterly for the past year.

In terms of the FSB’s board notice, fund managers will continue to be required to publish TERs for their funds, but Asisa has decided that its members will publish the TERs for funds on a rolling three-year basis, Peter Blohm, Asisa’s senior policy adviser, says.

Asisa has also decided that its members should publish their trading costs to help Asisa determine the EAC [effective annual cost].

Blohm says it is likely that the EAC will be disclosed to you in quotations from unit trust companies issued from next year."

http://www.iol.co.za/business/personal-finance/unit-trust-managers-to-tell-you-more-1.1856081

 

[Galactica]

Heard a shocking stat from an Actuary last night. Over 40 years your retirement fund with a TER of 1.5% would cost you half of your retirement fund! Hence the need for people to consider low cost index tracking funds for retirement.

 

[MikyMouse]

Heard a shocking stat from an Actuary last night. Over 40 years your retirement fund with a TER of 1.5% would cost you half of your retirement fund! Hence the need for people to consider low cost index tracking funds for retirement.

ya very scary - I you look at 10x's marketing documentation it clearly highlights how much different TERs can save / loose you