The reform of occupational pensions aims to make the costs of asset management more transparent. This in turn will improve the basis for investment decisions. Furthermore, the reform also unifies the cost information which providers of collective investment schemes are required to publish.
In future, three levels of cost must be identified:
- Level 1 covers costs at an institutional level. Level 2 includes costs which are deducted via Collective Investment Schemes. For investments within a multi-level collective investment, such as a fund of funds, costs are incurred at Level 3.
- The asset management costs correspond to the actual total cost rate (Total Expense Ratio, or TER). These costs include fees for management, performance, custody accounts, administration, benchmarking, analysis, and general services (including VAT).
- Collective investment schemes for which all TER costs can be reported at institutional level are regarded as cost-transparent
- Where no cost information is available for a specific collective investment, such investments must be classified as non-transparent and disclosed in the annual accounts.
Our TER services
- We can help you to capture all costs accurately.
- We will calculate and check the TER figures.
- We can identify appropriate internal processes and tools for your business needs.
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