How Much Does My Fund Cost?

INVESTMENT TOOLS: Investors now have an easier and more meaningful way to compare fund fees on Morningstar.co.uk

Holly Cook 29 August, 2014 | 9:24AM
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As of today, August 21st 2014, you will notice some changes to how we display the fees you incur when investing in a fund. Whereas we used to highlight the Total Expense Ratio (TER) we are now putting the focus on the Ongoing Charge (OGC).

The Ongoing Charge represents the costs you can reasonably expect to pay as an investor from one year to the next, under normal circumstances. Many investors will be used to looking most closely at the Annual Management Charge, but neither this charge nor the Ongoing Charge includes the performance fees incurred so neither is perfect. However, the Ongoing Charge does represent a more accurate cost of fund ownership as it encompasses the fund’s professional fees, management fees, audit fees and custody fees.

A quick overview of each fund’s fees, including the Ongoing Charge, is displayed on every Fund Report on Morningstar.co.uk on both the Overview tab and the Fees tab.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites