Having read a lot on the forum about TERs I decided to check out the TERs on some very old investments of mine. Now if I understand correctly, the TER is made up of management fees and other fees. But when I checked my Flossbach von Storch Multiple Opportunities fonds it listed a TER of 1.6% and a management fee of 2%. Shouldn’t this be the other way around? It is for other fonds I have.
On another note, a TER of 1.6% seems way too high, however this fonds seems to have been consistently well performing as long as I have had it (unlike most other investments from that time).
I might have missed the answer to my questions somewhere, if so, could you please post a link?
Yes. Maybe it is a maximum management fee. Or TER is for last year, but management fee was increased recently. Or they earn that much on securities lending, which I don’t think is possible.
Well means what? Are you comparing numbers in the same currency? With reinvested dividends in case you benchmark against VT?
Looking at the March monthly report, your fund (class R) has multiple layers of fees.
edit
source https://www.flossbachvonstorch.ch/en/professional-investors/funds/LU0323578657/month-end-factsheet-82511/
Take a look at the SFAMA guidelines for calculation of TER:
https://www.am-switzerland.ch/en/download/gugsvjutaqtgedvzsabprqvnlktqunkxuhht
The OAK Weisung is also a good read, even though it’s only relevant for pension funds:
TER must be higher than management fee, as the management fee is a part of the TER.
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