For mutual fund investors, new fee disclosure reports tell half the story
TORONTO — Thanks to recently phased-in rules about what financial institutions must disclose to clients, Canadians are now starting to receive annual investment reports showing in dollar terms the cost of the financial advice they receive.
But financial experts say these new documents only provide the typical investor about half the picture when it comes to what’s being paid in overall fees and charges on commission-based mutual funds.
What’s still not available on CRM2 annual report statements, is the portion of the management fees retained by the fund company to cover its own operating costs.
“So this new report may still not cover all the costs and fees you pay in total,” says Preet Banerjee, a Toronto-based personal finance commentator.