About fees: Management expense ratios explained
When you invest in a mutual fund, you and everyone else invested help pay for the expertise and administration to manage that fund. This fee is known as the management expense ratio (MER). The MER is collected at the fund level, meaning it is deducted from the fund’s assets before returns are calculated.
Below are some examples of the services and expenses that may be covered by the MER at your mutual fund company:
- Ongoing professional portfolio management.
- Research and analytic support.
- Administrative costs.
- Distribution costs, including trailing commissions.1
- Legal, audit and custodial fees.
- Filings with the provincial securities commissions.
- Regulatory costs: Financial reporting, simplified prospectus, Fund Facts.
- Pricing and bookkeeping.
- Employee salaries.
- Marketing costs.
Your financial advisor can provide you with a variety of services and professional guidance to meet your financial objectives.