Management Fees

The management expense ratio (MER) refers to a fund or portfolio’s management fees and operating expenses such as research, analysis, security selection, and follow-up carried out by fund managers. It typically ranges from 1% to 3%.

The MER varies according to a portfolio or fund’s complexity and the market in which it is invested. For example, the management fees for a stock portfolio are higher than those for a money market fund.

Funds with the Highest Management Fees

Some equity funds are subject to higher fees than those charged on conventional Canadian and North American funds. They include:

• Specialized funds
• International funds
• Funds with multiple managers

Additional Costs

Other costs may be added to the management fees, including:

• Registration fees for share purchases. These usually serve as a commission paid to the seller
  
• Exit fees charged to shareholders who sell their shares. They are regressive, meaning they decrease from year to year until, after a certain amount of time, they no longer apply
  

Please note that Desjardins funds are not subject to transaction, registration, or exit fees.

Management Fee Refund

Some investment fund companies such as Desjardins offer a management fee refund to investors with large portfolios. Contact your financial planner or adviser for more information.