Comments on: Mutual Fund Fee Debate: The Industry Response http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mutual Fund Fees do matter | Retire Happy Blog http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-392769 Mutual Fund Fees do matter | Retire Happy Blog Sun, 23 Jan 2011 05:35:45 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-392769 [...] Finance Blog – Paying Fees on Your Investments Canadian Capitalist – Mutual Fund Fee Debate: The Industry Response Ending the Rat Race – Rethinking Mutual Funds & Biting The Bullet With MERs [...] [...] Finance Blog – Paying Fees on Your Investments Canadian Capitalist – Mutual Fund Fee Debate: The Industry Response Ending the Rat Race – Rethinking Mutual Funds & Biting The Bullet With MERs [...]

]]> By: Mutual Funds, Stocks, ETF’s and Income Trusts? http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-241279 Mutual Funds, Stocks, ETF’s and Income Trusts? Mon, 09 Aug 2010 22:34:43 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-241279 [...] because mutual funds usually have limits on when they can be bought and sold, and often have higher fees than Exchange Traded [...] [...] because mutual funds usually have limits on when they can be bought and sold, and often have higher fees than Exchange Traded [...]

]]> By: Insurance http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-49387 Insurance Sat, 23 Jun 2007 07:46:17 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-49387 eFunds are very much still around. Yah. eFunds are very much still around. Yah.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-13020 Canadian Capitalist Mon, 27 Nov 2006 22:17:34 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-13020 Thanks Bryce. Sharon, eFunds are definitely still around and I am invested in them. Thanks Bryce. Sharon, eFunds are definitely still around and I am invested in them.

]]> By: Bryce http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-13019 Bryce Mon, 27 Nov 2006 22:15:22 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-13019 efunds are still around http://www.tdefunds.com/ efunds are still around

http://www.tdefunds.com/

]]> By: Sharon A http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-13017 Sharon A Mon, 27 Nov 2006 21:01:27 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-13017 Are TD's e funds still around? If not, what happened to them... Are TD’s e funds still around? If not, what happened to them…

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-8055 Canadian Capitalist Mon, 11 Sep 2006 23:21:11 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-8055 Neil: Thanks for pointing me to the SteadyHand blog. Neil: Thanks for pointing me to the SteadyHand blog.

]]> By: Neil Jensen http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-7935 Neil Jensen Sun, 10 Sep 2006 16:18:17 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-7935 Tom Bradley also has some good commentary on this issue at http://blog.steadyhand.com/tombradley/2006/08/youre_paying_to.html (Disclaimer: I work with Tom and am obviously biased on this issue) Tom Bradley also has some good commentary on this issue at http://blog.steadyhand.com/tombradley/2006/08/youre_paying_to.html

(Disclaimer: I work with Tom and am obviously biased on this issue)

]]> By: Phil S http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-7888 Phil S Sun, 10 Sep 2006 00:23:05 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-7888 Hey everybody! I just wanted to let you all know that I switched out of a Scotia McLeod Group RSP plan in favour of a self-directed BMO Investorline account many moons ago. However, it was recently brought to my attention by a co-worker that Interactive Brokers has the lowest commissions in Canada, only $0.01 per share at any price, and a minimum of a measly $2! I don't know about the rest of you but BMO is about $29 per transaction! I haven't figured out how best to switch to Interactive yet... I think it may leave everything "as is" and open a non-RSP account to do all of my trading in the future on Interactive. Mainly because I invest in a lot of small, micro and venture cap companies where $29 can make a huge difference between a profit and loss. Also, I thought that I would mention a class of investments that I just recently started to get into... Private Equity. Unfortunately in Canada, you really only have one choice, Gerry Schwarz's Onex Corporation and it doesn't have very good metrics. But down in the USA, Private Equity firms are abundant! From the highly visible KKR to the small fry, like Apollo Investment (AINV on Nasdaq) and Ares Capital (ARCC on Nasdaq), etc. The reason why I mention these firms is because they each hold a huge portfolio of businesses so in essence they are each quite diversified... So for all intents and purposes, they are mutual funds! And they yield about 9% dividend per annum! It's an alternative for you all to consider rather than ETFs and mutual funds. These Private Equity firms usually buy into failing businesses and turn them around, or they buy companies which have some kind of leadership succession problem, or they simply buy private debt instruments! In any case, these guys are extremely shrewd, they only buy businesses at deep discounts, and make huge profits when they exit their positions. So, my philosophy is why buy the companies that they spin off? Just buy shares of the listing company!!! =0) Hey everybody! I just wanted to let you all know that I switched out of a Scotia McLeod Group RSP plan in favour of a self-directed BMO Investorline account many moons ago. However, it was recently brought to my attention by a co-worker that Interactive Brokers has the lowest commissions in Canada, only $0.01 per share at any price, and a minimum of a measly $2! I don’t know about the rest of you but BMO is about $29 per transaction!

I haven’t figured out how best to switch to Interactive yet… I think it may leave everything “as is” and open a non-RSP account to do all of my trading in the future on Interactive. Mainly because I invest in a lot of small, micro and venture cap companies where $29 can make a huge difference between a profit and loss.

Also, I thought that I would mention a class of investments that I just recently started to get into… Private Equity. Unfortunately in Canada, you really only have one choice, Gerry Schwarz’s Onex Corporation and it doesn’t have very good metrics. But down in the USA, Private Equity firms are abundant! From the highly visible KKR to the small fry, like Apollo Investment (AINV on Nasdaq) and Ares Capital (ARCC on Nasdaq), etc. The reason why I mention these firms is because they each hold a huge portfolio of businesses so in essence they are each quite diversified… So for all intents and purposes, they are mutual funds! And they yield about 9% dividend per annum! It’s an alternative for you all to consider rather than ETFs and mutual funds.

These Private Equity firms usually buy into failing businesses and turn them around, or they buy companies which have some kind of leadership succession problem, or they simply buy private debt instruments! In any case, these guys are extremely shrewd, they only buy businesses at deep discounts, and make huge profits when they exit their positions. So, my philosophy is why buy the companies that they spin off? Just buy shares of the listing company!!! =0)

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/mutual-fund-fee-debate-the-industry-response/#comment-7866 Canadian Capitalist Sat, 09 Sep 2006 14:59:23 +0000 http://www.canadiancapitalist.com/2006/09/07/mutual-fund-fee-debate-the-industry-response#comment-7866 Buy_High: You may want to consider TD eFunds. Very easy to construct a fairly diversified portfolio which I have done for my boys' RESPs. Mike: Several studies have shown a negative correlation between high MER and fund performance. The logic is simple: mutual funds as a whole make up the market and as a whole they will provide returns equal to the market less the fees and expenses charged by them. Ergo, the higher the fees, the lower the returns for investors. MikeB: I agree with you that the Canadian market is very undiversified if you strip out financials and resources. For ETFs, you might want to consider VTI (broad market US), IVV (S&P 500), IJR (US small-cap), EFA (developed international) and EEM (emerging markets). Or try etfconnect.com for more research. Good luck! Buy_High: You may want to consider TD eFunds. Very easy to construct a fairly diversified portfolio which I have done for my boys’ RESPs.

Mike: Several studies have shown a negative correlation between high MER and fund performance. The logic is simple: mutual funds as a whole make up the market and as a whole they will provide returns equal to the market less the fees and expenses charged by them. Ergo, the higher the fees, the lower the returns for investors.

MikeB: I agree with you that the Canadian market is very undiversified if you strip out financials and resources. For ETFs, you might want to consider VTI (broad market US), IVV (S&P 500), IJR (US small-cap), EFA (developed international) and EEM (emerging markets). Or try etfconnect.com for more research. Good luck!

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