View more on these topics

AIC drops TERs for new charges methodology

The Association of Investment Companies is going to stop publishing total expense ratios on its website and recommends its members use a different methodology for their own acounts.

From May 31, the trade body will replace TERs with an ’ongoing charges’ figure, which will be created Morningstar on the basis of a new AIC methodology.

The association also says its members should adopt the new methodology when calculating the ongoing charges figures for their accounts, factsheets and websites.

The AIC’s recommended methodology excludes performance fees from ongoing charges, which is consistent with European regulations on the ongoing charges figure for use in Key Investor Information Documents and mirroring the approach used by Ucits funds.

In order to address concerns that excluding performance fees could be seen as total costs of fund management, the group recommends its members also publish total costs of fund management, a separate percentage figure for the performance fee and a total showing ongoing charges plus the performance fee.

AIC director general Ian Sayers says using a common approach for the calculation of ongoing charges will reduce in inconsistencies and aid comparability across individual trusts and between investment companies and open-ended funds.

“We are aware of growing calls for a total cost of ownership figure to be published which would include ongoing charges, but also the costs of advice, platforms and internal dealing costs,” he says.

“We believe the investment company sector has much to gain from supporting greater transparency in fund costs. The publication of the AIC’s methodology for ongoing charges is a key element in delivering this ultimate goal.”


JP Morgan launches diversified real return fund

JP Morgan has launched a diversified real return fund for the firm’s global multi-asset group. The fund will invest in inflation-linked bonds, real assets, investment grade credit, corporate bonds with inflation overlays and inflation-sensitive equities. The fund’s benchmark is the 1 to 10 year Barclays Capital index-linked gilts index. It will aim to achieve an […]

Old Mutual makes BNY Mellon hire following shake-up

Old Mutual has appointed BNY Mellon director of product strategy Celeste Dias to the role of head of product development. The provider has also announced that Omam UK chief operating officer Paul Nathan will become chief risk officer as part of the merger of Old Mutual Asset Management and Skandia Investment Group announced last week. […]

Leading Edge June – Investment panel debate

RLAM’s asset class specialists discuss some of the findings from the panel session at our recent Investment Conference. By Rob Williams, Head of Distribution Welcome to the latest edition of Leading Edge. It has been an eventful six months since the last e-zine. The European Central Bank announced ongoing stimulus measures, while the immigration crisis in Europe threw the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm