Expenses, Fees, and Commissions Uncovered
The mutual fund industry is known for its confusing expenses and jargon. Our mission is to give you information to uncover those hidden fees and enable you to make informed investing decisions. Here is an overview of the most common fees, loads and expenses that may be charged on a mutual fund and a comparison of the Streetwise Fund with other balanced funds.
The Management Expense Ratio (MER) is an important factor in choosing a mutual fund. We’ve capped the MER for The Streetwise Fund at 1%. That’s much lower than the 2.6% average MER charged by most Canadian balanced funds. And that means more of your money stays in your fund to grow which could make a big difference to your fund’s long-term performance. 
See for yourself.
The Streetwise Fund is also a no-load mutual fund because you do not pay any commission/load when you buy or sell Streetwise Fund units and you don't have to agree to invest in the fund for a specific time period. Account fees and minimums don’t apply either. We can’t explain why other companies think it’s fair to do this, you’ll have to ask them.
| Expenses, Loads and Fees | The Streetwise Fund | Other Balanced Funds |
| Management Expense Ratio (MER) - the fee charged by the fund company to pay for their management services as well as other operating expenses such as administration, legal fees, auditors, overhead, etc. Read more on this page to find out how the MER is paid and calculated. | 1% | 2.6% (on average) |
| Front End Load* - commission or sales charge applied at the time of the initial purchase of an investment. | No | May Apply |
| Low Load* - you agree to invest in your mutual fund(s) for a period of time (usually 3 years) and if you stick to that agreement, you don't pay any commission. But, if you redeem your mutual fund units before the period is up, you pay the designated load. | No | May Apply |
| Back End Load* (also called Deferred Service Charge) - it works just like the Low Load, but the period of time you agree to invest in your mutual fund(s) is longer (usually 6 or 7 years). In return, you don't pay any commissions. But, if you redeem your mutual fund units before the period is up, you pay the designated commission. | No | May Apply |
| Account Fee - fee to maintain your account. Some fund companies might also charge a fee to set up your account. | No | May Apply |
* Please note that usually only one kind of a load (front end, low or back end) is charged on the fund at a time.
How does MER work?
Management fees and operating expenses that make up an MER are deducted from the fund's income on a daily basis to ensure that each investor pays their fair share. So when you look at the price or performance of a fund, it's after these expenses have been deducted.
What's the Ratio part you say? The ratio is calculated as the total expenses for a year divided by the average assets of the mutual fund during that year. Using a ratio lets you know the amount of expense charged to you - simply multiply your asset value by the MER and the result is the amount of expenses you paid if you owned the fund for the whole year. Even more importantly, the ratio is a great way to compare the expense level from one fund to another. Just remember to compare mutual funds with similar mandates as the expenses of an International equity fund will be higher than those for a Canadian equity fund for example. To find the MER for a fund, look in the fund’s Prospectus or the Annual Report.
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The Value of a
Streetwise Unit
| Streetwise Balanced Income Fund  |
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| Streetwise Balanced Fund |
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| Streetwise Balanced Growth Fund |
Resources
- Investor Profile
- Reports and Prospectus
- Performance and Fund Information
