Total Expense Ratios - The Facts On Guernsey Funds

(Investment Business Update Special November 1996)

Much has been written recently about total expense ratios "TERs" and not all that has been written has proved terribly accurate. It is all well and good to make comparisons between various funds and finance centres - offshore or otherwise - but the facts should be carefully analysed before drawing conclusions or making bold statements with which to grab headlines.

For example, one particular data source* was the foundation of numerous articles in the offshore press and national newspapers which claimed that offshore funds were more expensive than their onshore counterparts and, even more damaging, offshore funds contained hidden charges.