Comments on: Our World-Beating Mutual Fund Fees http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: My Own Advisor » Why I left the mutual fund industry http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-758669 My Own Advisor » Why I left the mutual fund industry Sun, 17 Jul 2011 14:04:07 +0000 http://www.canadiancapitalist.com/?p=2359#comment-758669 [...] shares.  Operating fees and management expense ratios (MERs) can range dramatically.  I recall Canadian Capitalist did a good post about this a couple of years ago, how much Joe or Jill Canadian willingly spend on mutual fund [...] [...] shares.  Operating fees and management expense ratios (MERs) can range dramatically.  I recall Canadian Capitalist did a good post about this a couple of years ago, how much Joe or Jill Canadian willingly spend on mutual fund [...]

]]> By: vanguard launching in canada — award tour http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-598252 vanguard launching in canada — award tour Tue, 07 Jun 2011 13:14:15 +0000 http://www.canadiancapitalist.com/?p=2359#comment-598252 [...] Vanguard launching in Canada | Financial Post. This is awesome news as Canada has the highest management fees in the world. [...] [...] Vanguard launching in Canada | Financial Post. This is awesome news as Canada has the highest management fees in the world. [...]

]]> By: Opinion: The Importance of Integrity | Options for Rookies http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-399978 Opinion: The Importance of Integrity | Options for Rookies Fri, 28 Jan 2011 23:21:53 +0000 http://www.canadiancapitalist.com/?p=2359#comment-399978 [...] are even worse in Canada.  The Canadian Capitalist comments on the same topic.  As does Preet who discusses advisors recommending actively managed [...] [...] are even worse in Canada.  The Canadian Capitalist comments on the same topic.  As does Preet who discusses advisors recommending actively managed [...]

]]> By: The Ongoing Mutual Fund Fee Debate | Retire Happy Blog http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-392782 The Ongoing Mutual Fund Fee Debate | Retire Happy Blog Sun, 23 Jan 2011 05:53:02 +0000 http://www.canadiancapitalist.com/?p=2359#comment-392782 [...] Our World-Beating Mutual Fund Fees by Canadian Capitalist [...] [...] Our World-Beating Mutual Fund Fees by Canadian Capitalist [...]

]]> By: Vanguard Investments for Canadians – Why Not? | Andrew Hallam http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-220039 Vanguard Investments for Canadians – Why Not? | Andrew Hallam Sat, 15 May 2010 22:42:21 +0000 http://www.canadiancapitalist.com/?p=2359#comment-220039 [...] Bank shareholders, of course, want to maximize profits.  Fair enough.  As a shareholder, you’d be happy with the Canadian banks as a whole.  History has proven that it’s far better to invest in the banks than in their fund products.  So while you might own shares in Canadian banks, you’re better off avoiding their fund products.  And as a capitalist, you’d keep this quiet, right?  After all, as a bank shareholder, it benefits you when your bank charges 2.5% annually for actively managed mutual funds and nearly a full percentage point for their indexes.  In fact Canadian banks and Canadian fund companies get away with having the highest investment management fees in the world. …read more [...] [...] Bank shareholders, of course, want to maximize profits.  Fair enough.  As a shareholder, you’d be happy with the Canadian banks as a whole.  History has proven that it’s far better to invest in the banks than in their fund products.  So while you might own shares in Canadian banks, you’re better off avoiding their fund products.  And as a capitalist, you’d keep this quiet, right?  After all, as a bank shareholder, it benefits you when your bank charges 2.5% annually for actively managed mutual funds and nearly a full percentage point for their indexes.  In fact Canadian banks and Canadian fund companies get away with having the highest investment management fees in the world. …read more [...]

]]> By: T Powell http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-216806 T Powell Wed, 21 Apr 2010 14:31:18 +0000 http://www.canadiancapitalist.com/?p=2359#comment-216806 On top of MER's there are the transfer fees, like Mackenzie who charges $500 to move two accounts. ETF are far better and allocation is more important, by the index cheap and hold. Forget these fund mangers @ 2% a year that is costing 20% over 20 years on a 100000 portfolio that is $20000! On top of MER’s there are the transfer fees, like Mackenzie who charges $500 to move two accounts. ETF are far better and allocation is more important, by the index cheap and hold. Forget these fund mangers @ 2% a year that is costing 20% over 20 years on a 100000 portfolio that is $20000!

]]> By: Cathy Stanton http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-202799 Cathy Stanton Sat, 31 Oct 2009 16:09:29 +0000 http://www.canadiancapitalist.com/?p=2359#comment-202799 I agree that the industry needs changing, but not all advisors are the same. Here at RBC, financial planners provided a whole range of services from asset allocation to complete financial planning. No fees are charged other than the MERs of the funds and we have the ability to find funds with lower MERs. We do not charge any loads either, there is real value here for those who need the service of a planner. We can be unbiased in our approach because we do not have to worry about trailer fees. We receive a base salary and bonus depending on our ability to do what is right for our clients. You get low price with top notch service - just not romantic to invest with a bank. I agree that the industry needs changing, but not all advisors are the same. Here at RBC, financial planners provided a whole range of services from asset allocation to complete financial planning. No fees are charged other than the MERs of the funds and we have the ability to find funds with lower MERs. We do not charge any loads either, there is real value here for those who need the service of a planner. We can be unbiased in our approach because we do not have to worry about trailer fees. We receive a base salary and bonus depending on our ability to do what is right for our clients. You get low price with top notch service – just not romantic to invest with a bank.

]]> By: Mickey http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-199879 Mickey Thu, 10 Sep 2009 04:47:26 +0000 http://www.canadiancapitalist.com/?p=2359#comment-199879 Folks, yes mutual funds are expensive in Canada but we can all recognize that its a question of economies of scale. We do not have the asset size compared to the US. Regardless there is a right & wrong to this argument. 1st of all, Advisor need to get paid for giving advice, at least the ones that do the research & actually give good advice, secondly, more than 80% of Canadian mutual funds are closet indexing funds. I do not care care how they pitch it to you, they are not active enough. Most (not all) Fund Portfolio managers are comped based relative to an index. That doesn't really align their interests with that of the investors. When constructing mutual fund portfolios, advisors should really consider the following: use highly active mutual funds & get your clients moneys worth. There are not many, but there are highly active funds in Canada, with track record that have beaten their proxy without looking too much like it - that's the idea. Another suggestion, use a passive/active startegy if you will where you pair up ETFs with active funds. This way clilents are getting bang for their buck. Cheers Mickey <a href="http://www.thewhiskytrench.com" rel="nofollow">www.TheWhiskyTrench.com</a> Folks, yes mutual funds are expensive in Canada but we can all recognize that its a question of economies of scale. We do not have the asset size compared to the US. Regardless there is a right & wrong to this argument. 1st of all, Advisor need to get paid for giving advice, at least the ones that do the research & actually give good advice, secondly, more than 80% of Canadian mutual funds are closet indexing funds. I do not care care how they pitch it to you, they are not active enough. Most (not all) Fund Portfolio managers are comped based relative to an index. That doesn’t really align their interests with that of the investors. When constructing mutual fund portfolios, advisors should really consider the following: use highly active mutual funds & get your clients moneys worth. There are not many, but there are highly active funds in Canada, with track record that have beaten their proxy without looking too much like it – that’s the idea. Another suggestion, use a passive/active startegy if you will where you pair up ETFs with active funds. This way clilents are getting bang for their buck.

Cheers

Mickey
http://www.TheWhiskyTrench.com

]]> By: Ken Kivenko http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-194499 Ken Kivenko Sun, 28 Jun 2009 13:26:06 +0000 http://www.canadiancapitalist.com/?p=2359#comment-194499 Improved POS disclosure [ currently underway by CSA ]will help but I think forcing firms to provide account statements that break out fees and provide PERSONALIZED rates of return will be an eye-opener for even the most complacent retail investors kk Improved POS disclosure [ currently underway by CSA ]will help but I think forcing firms to provide account statements that break out fees and provide PERSONALIZED rates of return will be an eye-opener for even the most complacent retail investors

kk

]]> By: TStrump http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-191677 TStrump Sat, 16 May 2009 22:51:04 +0000 http://www.canadiancapitalist.com/?p=2359#comment-191677 This is why I'm dumping my current mutual fund - with an MER of 2% - and going into stocks. This is why I’m dumping my current mutual fund – with an MER of 2% – and going into stocks.

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