Starting last month the Ongoing Charges figure has replaced the Total Expense Ratio (TER) which had been used to measure the impact of costs relating to the management and operations of a closed-end fund. The calculation for Ongoing Charges takes into consideration recent regulatory and market developments in relation to the calculation of expense ratios.
To calculate the Ongoing Charges, Morningstar stores accounting information from each closed-end fund’s Annual Report & Accounts, including all line items from the detailed Fees and Expenses breakdown. Expense data is aggregated to calculate the Ongoing Charges for the year. The Morningstar Ongoing Charge is updated within 1 week of the Annual Report & Accounts publication date.
To read more about the changes, click here