Comments on: Our World-Beating Mutual Fund Fees http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/ Helping you invest and prosper Sat, 20 Mar 2010 15:59:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 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.

]]> By: Rob http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-191591 Rob Fri, 15 May 2009 16:42:24 +0000 http://www.canadiancapitalist.com/?p=2359#comment-191591 Shadow_6 - I could but these names can change so what is good today, may not be good tomorrow - better for you to learn what makes for good active management so you can improve your odds considerably. Let me steer you in this regard. Read Chapter 10 of David Swenson's book Unconventional Success (should be at the library but worth the cost) and you'll be well on your way to easily being able to weed out most of the garbage out there. Hope that helps. Shadow_6 – I could but these names can change so what is good today, may not be good tomorrow – better for you to learn what makes for good active management so you can improve your odds considerably. Let me steer you in this regard.

Read Chapter 10 of David Swenson’s book Unconventional Success (should be at the library but worth the cost) and you’ll be well on your way to easily being able to weed out most of the garbage out there.

Hope that helps.

]]> By: Canadian Personal Finance Blog » Blog Archive » Random Thoughts: When Bloggers Meet http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-191549 Canadian Personal Finance Blog » Blog Archive » Random Thoughts: When Bloggers Meet Fri, 15 May 2009 10:16:02 +0000 http://www.canadiancapitalist.com/?p=2359#comment-191549 [...] Canadian Capitalist writes another scathing commentary on Our World-Beating Mutual Fees, seriously folks read this stuff and get the heck away from those high [...] [...] Canadian Capitalist writes another scathing commentary on Our World-Beating Mutual Fees, seriously folks read this stuff and get the heck away from those high [...]

]]> By: Dividend Growth Investor http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-191537 Dividend Growth Investor Fri, 15 May 2009 06:57:51 +0000 http://www.canadiancapitalist.com/?p=2359#comment-191537 Wow, Canadians should then stick to US mutual funds. If you payd over 0.30% annually on a fixed income or money market fund you are getting a pretty horrible return.. Ouch.. Wow, Canadians should then stick to US mutual funds.
If you payd over 0.30% annually on a fixed income or money market fund you are getting a pretty horrible return.. Ouch..

]]> By: Weekly Blog Review - End of Rally Edition | Financial Highway http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-191532 Weekly Blog Review - End of Rally Edition | Financial Highway Fri, 15 May 2009 05:15:15 +0000 http://www.canadiancapitalist.com/?p=2359#comment-191532 [...] 2.Canadian Capitalist summarizes Morningstar’s study of mutual funds which ranked Canadian Mutual Funds as most expensive [...] [...] 2.Canadian Capitalist summarizes Morningstar’s study of mutual funds which ranked Canadian Mutual Funds as most expensive [...]

]]> By: Our World-Beating Mutual Fund Fees | Canadian Capitalist « Mutual Funds http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-191505 Our World-Beating Mutual Fund Fees | Canadian Capitalist « Mutual Funds Thu, 14 May 2009 22:12:33 +0000 http://www.canadiancapitalist.com/?p=2359#comment-191505 [...] G­o­­ her­e t­o­­ r­ead­ t­he r­est­: Our­ Wor­ld-Be­a­t­in­­g Mut­ua­l Fun­­d Fe&#... [...] [...] G­o­­ her­e t­o­­ r­ead­ t­he r­est­: Our­ Wor­ld-Be­a­t­in­­g Mut­ua­l Fun­­d Fe&#… [...]

]]> By: Shadow_6 http://www.canadiancapitalist.com/our-world-beating-mutual-fund-fees/#comment-191481 Shadow_6 Thu, 14 May 2009 18:38:48 +0000 http://www.canadiancapitalist.com/?p=2359#comment-191481 Rob (Disclosure - I am an advisor and I think there are a few, say 10-20, really good mutual funds in Canada - there is tonnes of crap) Would you be able to list those 10-20 picks. I will be debt free at the end of this year and would like to start my rrsp etc. I'm not sure if I will be going into mutual funds. But I'm doing my research research research in advance. Thanks. Rob
(Disclosure – I am an advisor and I think there are a few, say 10-20, really good mutual funds in Canada – there is tonnes of crap)

Would you be able to list those 10-20 picks. I will be debt free at the end of this year and would like to start my rrsp etc. I’m not sure if I will be going into mutual funds. But I’m doing my research research research in advance. Thanks.

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