Is the industry's TER obsession healthy?

At its core, the aim of the Retail Distribution Review (RDR) was to align adviser and client interests, bringing transparency to fee structures. This led advisers to question several other business practices, including whether to outsource, how to service smaller clients and how to demonstrate value. But perhaps the most striking consequence of the RDR is the increased focus on fund total expense ratios (TERs). This is not surprising considering the changes to charging structures and rising regulatory costs for advisers. However, although we should be aware of fees and charges, portfolio...