Reining in Canada High Mutual Fund Fees

Mutual fund fees are higher in Canada than elsewhere. And despite efforts to beef up disclosure, buyers are still in the dark about what they pay.

Industry critics have talked about inflated fund ownership costs for years. Now there’s a discussion paper by the Canadian Securities Administrators that bolsters their case.

This 50-page paper, posted at the Ontario Securities Commission’s website under News, can be a tough slog to get through.

But if you’re through it, you’ll find an array of facts, figures and charts to illuminate what’s going on in the fund industry. The outlook is disturbing.  Read More…

This article has 7 Comments

  1. Ren Holbrook

    This is laughable. To think that people still buy into the gimmicks of mutual funds is truly astonishing. Let the dumb be robbed. That is fine by me.

  2. Aric H.

    I've been saying this for years. People need to do more research before investing.

    My portfolio consists of TD e-Series and in there the MER% is quite low and i know precisely how much is going ot trailers.

    Do your homework people!

  3. Demarion Corby

    This is the first i have heard of it. So you are telling me that trailer fees, despite being assured by my discount broker that they are not there, that in fact they really are but just hidden away?

    I am going to make some calls tomorrow.

  4. Grant

    People still buy mutual funds? I thought everyone went for indexed ETFs?

  5. Omari

    I am still blown away by the fact that active-managed funds can make these manager so rich that just from one portfolio this manager can become an instant billionaire. And even then he doesnt have to be right and he still gets the money. Crazy world! I am in the wrong business.

  6. Joban

    The laws in Canada must change!

  7. Kendrick

    Trailer fees aren't going anywhere. They are too much of a lucrative part of most broker bottom lines.

    Interestingly, most of these businesses who are essentially pimping out the services of these fund companies will say there are no trailer fees to make it more likely a customer will buy the product when in fact because of Canadian law they dont have to be disclosed but just inserted into the yearly mer!

    It's highway robbery!

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