Fund fees, or the Total Expense Ratio (TER), are the total all-inclusive fees charged by the Fund Managers. This refers to the ongoing costs of operating a fund, and may include investment management fees, trustee fees, audit fees and trailer fees, which are commissions paid by fund managers to distributors.
Fund fees are embedded in the Net Asset Value (NAV), or trading ‘price’ of a Fund. For example, if you purchase a Fund at $10 per unit, then the $10 has already included all fund fees. . Performance figures of the Funds are already net of the fund fees.
At Endowus, we work with Fund Managers to make fund fees as low as possible. As of April 2023, the fund fees on our Fund Smart platform (excluding money market funds) range approximately from 0.23% -1.53% per annum (after Cashback on trailer fees); this is compared to the Hong Kong 2022 industry median of 1.35%-1.85% per annum*.
Note: Fund fees of money market funds on Endowus platform ranges from 0.11%-0.24%. We have not included in the above for an apple-to-apple comparison with the Morningstar median.
*Source Morningstar 2022 Global Investor Experience Study: Fees and Expenses