FCA's Chris Sier pans new alternative investment fund fee methodology

A working group set up by the Standards Board for Alternative Investments (SBAI) last year to study fees in the sector has come up with a Standardised Total Expense Ratio (STER) to compare fees across alternative investment funds. The calculation aggregates expenses and management fees charged to, or incurred by, a fund and also includes the costs of research bundled with dealing commissions, said the SBAI in a statement. John Husselbee: View from the front row It excludes incentive fees, which will fluctuate as a function of performance, and trading related costs that will vary si...