Saturday, January 8, 2011

After Reimbursement Expense Ratio

A fund's After Reimbursement Expense Ratio (ARER) is the actual expenses paid by the investors (divided by total assets). The ARER takes into account any reimbursements or fee waivers made by the fund manager to the fund e.g. reimbursing indirect expenses such as costs involved in shorting stock, overdraft fees, etc. The fund manager may waive fees or limit fees in order to make the fund more competitive on a cost basis.

Synonyms: Net expense ratio

Comments?
If you have any further questions or would like to add to this fund management term, then please submit your thoughts below.

No comments:

Post a Comment