Have you ever wondered exactly how much your investments cost?? Welcome to part 1 of demystifying investment costs.
This episode focuses on investment costs associated with mutual funds and will provide the fundamentals for the follow up episode that will discuss ETFs.
Dr. Yatin Chadha interviews Leanne Mamchur, CFA, CFP, FMA from CIBC. Leanne has 19 years of experience advocating for private clients. She is passionate about demystifying the cost structure in Canadian Wealth Management (and is in fact writing a book that covers this topics).
Please see links towards the end for Leanne's article (nicely summarizes investment costs) and bio.
In this episode we discuss:
- CRM-2 (client relationship model) and impact on financial industry
- Front-end load (initial sales charge), back-end load (going, going, gone!!!)
- MER (management expense ratio) and its components, including trailer
- What is the trailer? What services can it give you access to (coaching, planning, asset allocation, account structuring etc)?
- Various series of mutual funds (focus on series A, D, F, O), impact on MER
- TER (trading expense ratio)
- Factors influencing MER and TER
- How costs are disclosed
Leanne's article titled "Unraveling costs and creating change", which eloquently summarizes much of this content:
file:///Users/simaacharya/Downloads/Unraveling%20Costs%20and%20Creating%20Change%20-%20Confusing%20Web%20of%20Jargon%202/70645e5e-d4a7-11eb-a980-0cc47a792c0a_id_70645e5e-d4a7-11eb-a980-0cc47a792c0a.html
Leanne's bio:
file:///Users/simaacharya/Downloads/Leanne%20Mamchur,%20CFA,%20CFP,%20FMA/278e40f0-d4a7-11eb-a980-0cc47a792c0a_id_278e40f0-d4a7-11eb-a980-0cc47a792c0a.html