THE average Total Expense Ration (TER) has fallen for the third year running despite the market turbulence, according to the Association of Investment Companies (AIC).
A study conducted by the firm shows that, while investment charges are more pronounced during a market downturn, the TER in the conventional investment company sector is currently 1.44pc, down from 1.55pc a year ago and 1.6pc in 2006. Meanwhile, the proportion of investment companies with TERs under 1pc has also continued to grow, from 25pc two years ago, to 28pc a year ago and 30pc today, according to the statistics sourced from Lipper. Annabel Brodie-Smith, communications director at AIC, said: "In volatile markets, the impact of charges can be all the more acute, so whilst only one a...
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