Comments on: Mutual Fund Fees http://www.canadiancapitalist.com/mutual-fund-fees/ Helping you invest and prosper Sat, 11 Feb 2012 12:40:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeff Kaminker http://www.canadiancapitalist.com/mutual-fund-fees/#comment-947762 Jeff Kaminker Thu, 29 Sep 2011 08:30:31 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-947762 As a licensed Portfolio Manager and insider of the industry, I was very pleased to read that the Canadian government is finally starting to tackle the unethical practice of hidden mutual fund fees. It is quite incredible to think that the government allows this practice whereas other western countries like the UK, Australia and the US require the disclosure of all fee costs to the clients. In Canada, hard working, honest, unsuspecting investors put their faith with their mutual fund advisor not understanding the out-of-pocket costs at all. Recently, I performed an audit for friends of mine. Both are smart, successful entrepreneurs. One is even a financial savvy accountant. They had absolutely no idea that they were paying $31,000 in fees a year on their million dollar portfolio. Moreover, their bank advisor had sold them the funds with a deferred sales charge which is another black mark / scam in my opinion. Unfortunately, most people are unaware that mutual fund salespeople do not owe a fiduciary duty to their clients. This means these salespeople are not legally required to act in the best interest of the client. Aye, there's the rub -- there is a huge conflict of interest as advisors make the most money for themselves by placing clients in high expense mutual funds that pay the most in hidden trailer fees. For now, we can only hope this issue gains more traction. Having high mutual funds fees provides absolutely no social benefit to our community. It simply is a way of siphoning money out of the hands of good, honest Canadians. Jeff Kaminker President, Fronwater Capital www.fwcapital.ca As a licensed Portfolio Manager and insider of the industry, I was very pleased to read that the Canadian government is finally starting to tackle the unethical practice of hidden mutual fund fees.

It is quite incredible to think that the government allows this practice whereas other western countries like the UK, Australia and the US require the disclosure of all fee costs to the clients. In Canada, hard working, honest, unsuspecting investors put their faith with their mutual fund advisor not understanding the out-of-pocket costs at all.

Recently, I performed an audit for friends of mine. Both are smart, successful entrepreneurs. One is even a financial savvy accountant. They had absolutely no idea that they were paying $31,000 in fees a year on their million dollar portfolio. Moreover, their bank advisor had sold them the funds with a deferred sales charge which is another black mark / scam in my opinion.

Unfortunately, most people are unaware that mutual fund salespeople do not owe a fiduciary duty to their clients. This means these salespeople are not legally required to act in the best interest of the client. Aye, there’s the rub — there is a huge conflict of interest as advisors make the most money for themselves by placing clients in high expense mutual funds that pay the most in hidden trailer fees.

For now, we can only hope this issue gains more traction. Having high mutual funds fees provides absolutely no social benefit to our community. It simply is a way of siphoning money out of the hands of good, honest Canadians.

Jeff Kaminker
President, Fronwater Capital
http://www.fwcapital.ca

]]> By: Self Directed http://www.canadiancapitalist.com/mutual-fund-fees/#comment-827694 Self Directed Tue, 16 Aug 2011 06:29:21 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-827694 Many people cant manage their own investments therefore turning to an advisor seems like the simple solution. The problem is you can also hit and miss with an adviser as well, and miss more likely over time. I believe there are good advisors out there however I have not met any in my 21 years of investing. Unfortunately it took me a long time to realize this and I am now 100% on my own. The greatest feeling about investing yourself is knowing where you money is and having the freedom to change positions quickly if need be. It also forces you to educate yourself about the financial world and how to protect your savings. And yes you save a bunch on fees, trades are 10$ and funds have 0.1% to 1% mer's depending on the type of ETF/ Mutual Fund. "Its amazingly sad what certain people will do for money" Keep this in mind when you're trusting your hard earned savings to someone els that you may know well or not at all. Good luck Many people cant manage their own investments therefore turning to an advisor seems like the simple solution. The problem is you can also hit and miss with an adviser as well, and miss more likely over time. I believe there are good advisors out there however I have not met any in my 21 years of investing. Unfortunately it took me a long time to realize this and I am now 100% on my own. The greatest feeling about investing yourself is knowing where you money is and having the freedom to change positions quickly if need be. It also forces you to educate yourself about the financial world and how to protect your savings. And yes you save a bunch on fees, trades are 10$ and funds have 0.1% to 1% mer’s depending on the type of ETF/ Mutual Fund. “Its amazingly sad what certain people will do for money” Keep this in mind when you’re trusting your hard earned savings to someone els that you may know well or not at all. Good luck

]]> By: Alvaro http://www.canadiancapitalist.com/mutual-fund-fees/#comment-204245 Alvaro Fri, 20 Nov 2009 20:28:40 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-204245 hi, Does anyone know what a ''IDSC'' and how it differs from DSC. Thank you hi,

Does anyone know what a ”IDSC” and how it differs from DSC.

Thank you

]]> By: jerry http://www.canadiancapitalist.com/mutual-fund-fees/#comment-39452 jerry Sat, 26 May 2007 17:03:45 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-39452 It is unfair trade to by canadian mutrual fund as an individual. bank or nutrual fund management take 2-3% or higher to a comsumer, on the table; there are also many hiden rule of mutual time unloading, market call charge, etc, many , many of extral charge on top of the 2-3% charge; there is no much choice for working class canadians, because rich one has insider benifit and goes to US to invest too. rich one contrals canadian finance and policy. the best way for working class is to invest by themselves, into other country, into business or real estate. It is hard, but rich one don't give a dim to working canadian. it is a dark picture of this place, many bright side thou. It is unfair trade to by canadian mutrual fund as an individual.
bank or nutrual fund management take 2-3% or higher to a comsumer, on the table;
there are also many hiden rule of mutual time unloading, market call charge, etc, many , many of extral charge on top of the 2-3% charge;
there is no much choice for working class canadians, because rich one has insider benifit and goes to US to invest too. rich one contrals canadian finance and policy.
the best way for working class is to invest by themselves, into other country, into business or real estate. It is hard, but rich one don’t give a dim to working canadian.
it is a dark picture of this place, many bright side thou.

]]> By: bill http://www.canadiancapitalist.com/mutual-fund-fees/#comment-36592 bill Thu, 17 May 2007 15:18:57 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-36592 Companies with charge whatever the public is willing to pay. When they start losing business, they will have to make whatever adjustments they need to make. Companies with charge whatever the public is willing to pay. When they start losing business, they will have to make whatever adjustments they need to make.

]]> By: The Debate Over Fund Fees http://www.canadiancapitalist.com/mutual-fund-fees/#comment-34564 The Debate Over Fund Fees Thu, 10 May 2007 00:01:34 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-34564 [...] Rob Carrick’s column in The Globe and Mail. James Daw’s column in The Toronto Star. The original study. The industry’s lame [...] [...] Rob Carrick’s column in The Globe and Mail. James Daw’s column in The Toronto Star. The original study. The industry’s lame [...]

]]> By: SidR http://www.canadiancapitalist.com/mutual-fund-fees/#comment-8802 SidR Sun, 24 Sep 2006 17:50:04 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-8802 Is there a list of Funds showing MER's so a person can compare? Is there a list of Funds showing MER’s so a person can compare?

]]> By: DaveB http://www.canadiancapitalist.com/mutual-fund-fees/#comment-7589 DaveB Wed, 06 Sep 2006 16:22:46 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-7589 Between the high Mutual Fund MER's, the high banking fees, the high insurance premiums, the high credit card rates ... you can either pull your hair out or look at it as an opportunity. The ologopolistic financial market in Canada with the very high barriers to entry and the demographic trends in my opinion make the following Index Fund very attractive over the long term: http://ca.finance.yahoo.com/q?s=XFN.TO&d=t I have held it for over four years now and smile every time some Canadian bank or insurance company announces record profits (again and again). Between the high Mutual Fund MER’s, the high banking fees, the high insurance premiums, the high credit card rates … you can either pull your hair out or look at it as an opportunity. The ologopolistic financial market in Canada with the very high barriers to entry and the demographic trends in my opinion make the following Index Fund very attractive over the long term:

http://ca.finance.yahoo.com/q?s=XFN.TO&d=t

I have held it for over four years now and smile every time some Canadian bank or insurance company announces record profits (again and again).

]]> By: The Dividend Guy Blog - One Guy’s Journey to Passive Income Through Dividend Investing » Way to Go Mutual Fund Companies in Canada http://www.canadiancapitalist.com/mutual-fund-fees/#comment-6351 The Dividend Guy Blog - One Guy’s Journey to Passive Income Through Dividend Investing » Way to Go Mutual Fund Companies in Canada Wed, 23 Aug 2006 01:26:54 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-6351 [...] Way to Go Mutual Fund Companies in Canada By The Dividend Guy Canadian Capitalist [...] [...] Way to Go Mutual Fund Companies in Canada By The Dividend Guy Canadian Capitalist [...]

]]> By: David Riehm http://www.canadiancapitalist.com/mutual-fund-fees/#comment-6347 David Riehm Tue, 22 Aug 2006 23:58:51 +0000 http://www.canadiancapitalist.com/2006/08/21/mutual-fund-fees#comment-6347 Mutual funds are a bonanza for the financial "industry". They wear suits, drive Jaguars and have carpeted offices - all from the fees. That's why you see full page ads for funds. Wouldn't you rather have that money invested and working for you? 2% or 3% doesn't sound like much but when you look at how that cuts into your lomg term compounding, it is truly shocking. Some people have paid or forfeited half of their long term gains because of mutual fund fees. And the kicker???? More than 50% of funds don't even keep up with the market! Mutual funds are a bonanza for the financial “industry”. They wear suits, drive Jaguars and have carpeted offices – all from the fees. That’s why you see full page ads for funds. Wouldn’t you rather have that money invested and working for you? 2% or 3% doesn’t sound like much but when you look at how that cuts into your lomg term compounding, it is truly shocking. Some people have paid or forfeited half of their long term gains because of mutual fund fees. And the kicker???? More than 50% of funds don’t even keep up with the market!

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