TER (Total Expense Ratio)

The Total Expense Ratio (TER) describes ongoing fund costs as a percentage of fund assets. These include management fees, custodian-bank costs and other operating expenses. The amount is taken from fund assets rather than charged separately to your cash account.

The TER does not cover every cost: internal transaction costs, your dealing fees and bid-ask spreads may add to it. Tracking difference describes the measured return gap against the index. It also reflects influences such as securities-lending income and replication methods, so it is not a pure fee measure.