Danish retail TER averages 1.03%, unchanged from 2010

The average cost to retail investors of Danish funds in 2011 was 1.03%, according to research into total expense ratios and “ÅOP” published by the Federation of Danish Investment Associations.

The figure is based on a review of more than 3,000 key figures from over 500 funds. The ÅOP is a method for calculating cost, which includes TER plus the funds trading cost plus the sum of maximum issues and redemption fees that are depreciated over an investor holding period of seven years.

The research concluded that the 2011 average TER figure was “almost unchanged” from 2010. The range of TERs across the universe was from 0.25% up to more than 2%. The data was handled by Danish data firm FundCollect.

InvestmentEurope recently published comment from the Federation (InvesteringsForeningsRådet, or IFR) which pointed to a growing campaign to provide more transparency on fund costs in the Danish market.

This campaign includes the Danish Bankers Assocation, Consumer’s Council and Danish Shareholders Association. However, IFR managing director, Jens Møller confirmed that voluntary rules expected to come into force in 2013 on transparency of costs will initially only cover products that are manufactured and distributed locally.

Click here to read the full research report (in Danish): [asset_library_tag 5390,Omkostningsanalyse 2011]

For detailed cost statistics over funds by category click here to use the IRF online cost tool (in Danish): http://www.ifr.dk/composite-927.htm

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