Danish TERs ‘cheapest in Europe’ – Morningstar analysis

Total Expense Ratios (TERs) on funds in Denmark are generally lower than anywhere else in Europe, regardless whether a product is an equity, fixed income or balanced fund, according to analysis done by Morningstar Danmark and published by The Federation of Danish Investment Associations (InvesteringsForeningsRådet, IFR).

The average TER in Danish equity funds in 2010 was 1.49%, according to the analysis, or equivalent to DKK149 per annum for every DKK10,000 invested. The average across all of Europe was 1.74%.

“It is good for investors that the Danish Associations are well placed in this important area. Lower costs mean among other things that returns are higher. The analysis also shows that it is important to watch out for the big differences in prices between countries,” said Jens Jørgen Holm Møller, managing director at IFR.

Morningstar also looked at how widespread index funds are in different European markets. It concluded that the availability of such funds is similar in Denmark to the rest of Europe, but that the proportion of assets Danish investors invest is lower than elsewhere.

The conclusions were based on analysis of almost 30,000 funds.

To view the full report click here: http://www.ifr.dk/media(3475,1030)/Morningstar_europæisk_omkostningsanalyse.pdf



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