Tag Archives: mutual funds

Canadian investors pay the highest mutual fees in the developed world

Mutual funds now have to tell you a lot more about the fees you pay

If you use a financial adviser or hold mutual funds, take a close look at your first statement of 2016. You should notice a few changes. On January 1, Client Relationship Model–Phase 2, known as CRM2 in finance circles, came into effect. This rule forces financial firms to break out the costs associated with an investment on the reports they send their clients. Those managing your money will also have to show whether a fund is subject to a deferred sales charge—a fee an investor pays if a fund is sold before a specific time—and what the penalty would be for selling early.

Read the remainder of the article in Canadian Business magazine.

Problems with trailer fees highlighted by new study

Mutual funds that pay trailer fees to financial advisers attract higher inflows of cash from investors even when they perform badly and tend to perform worse over all than other funds, according to critical new research commissioned by Canada’s securities regulators.

Many clients are unaware their advisers receive trailer fees from some mutual fund companies, which serve as an inducement to recommend certain funds.

Read more from this study…………………….