The management expense ratio (MER) shows the percentage of the fund's daily average net assets that was paid in management fees and other expenses during the year. The MER is shown at an annualized rate if the financial year is less than 12 months. The method of calculating the MER of mutual funds was changed by securities regulators on February 1, 2000. Some expenses, such as taxes and interest that were previously excluded, are now included in the calculation.
This fee is not paid directly; it's deducted in most cases before the net asset value of the mutual fund is calculated. The end result however, will be to reduce your return. As an example, a fund has a MER of 2% and earns a gross return of 12%, the return that you will actually receive will be 10%. With this in mind, the lower the "MER", the return will likely be higher. Check the "MER"percentage fee to find what the hidden cost would be.
A ratio which represents all fees paid by a Fund such as annual management fee, trustee fee, custodian fee, auditor's fee, taxation fee and administrative expenses incurred expressed as a percentage of the average Net Asset Value of that Fund for the respective year.
The measure of the total cost of operating a fund as a percentage of average total assets including management fees as well other expenses such as brokerage fees, audit and legal fees. Published rates of return are calculated after MER deductions.
A percentage of the assets that an investment fund manager charges to manage the fund annually.
a measure of the fees and certain expenses payable from a fund, expressed as a percentage of the average fund size.
An indication of the percentage of the average balance of a managed investment fund needed to cover fees and charges. Shows the extra costs in using managed structure instead of direct investments. (see also Unit trusts)
An accounting of all costs of operating a fund, expressed as a percentage of the net assets of the fund.
The ratio of management expenses to the total funds under management.
A percentage of the total assets under administration by a fund that is used to pay for the administration, management, marketing, promotion and trailer fees for that fund.
A ratio, expressed as a percentage per annum, used to capture expenses incurred by a managed fund.
Shows how much the mutual fund paid in management fees and operating expenses during each calendar year. It is expressed as an annual percentage of the daily average net assets during the year. The method for calculating the MER was changed by securities regulators on February 1st, 2000. Some expenses, such as taxes and interest are now included in the calculation.
Is a measure of the total administrative costs incurred by a mutual fund expressed as a percentage of the assets. These costs include costs incurred in day to day operation of the fund and the compensation paid to the fund manager for managing the investments (management fee).
an MER is charged by a fund company before any returns are paid out to investors. The MER includes the portfolio manager's compensation and other expenses associated with running the fund. Management Fee + Fund Expenses = MER, which is stated as a percentage of the fund's average daily net asset value. MERs are calculated by adding the management fee to the accrued expenses (excluding brokerage and interest charges) and dividing the total by the fund's average net asset value for the relevant financial year.
The ongoing management charges charged by a fund over a year can be expressed as a percentage of the fund's assets. This figure allows you to compare the management charges of one product with other products. This percentage indicates the overall management, administration and investment expenses incurred by the Fund (each year).
The percentage of a managed fund's balance needed to cover fees and charges.
A measure of the management fees and administration expenses charged to a mutual fund, expressed as a percentage of a fund’s average net assets. The size of the management expense ratio (MER) will affect a fund’s overall performance because the more that is paid out, the lower the performance for investors. The rate of return published in newspapers already has the management fees and operating expenses deducted.
The amount spent on the management and operation of each Fund, expressed as a percentage of the Fund's average net assets. This amount includes management fees, custodial fees, transfer agency expenses, and other direct operating expenses of each Fund, but does not include brokerage commissions, taxes, or interest charges.
The MER is the total annual fees and expenses of a fund divided by its average net assets.
Provides a measure of the total annual cost of investing in a fund and is a useful guide when comparing annual costs of different investment funds. It refers to a calculation of the total amount of fees deducted from an unlisted managed fund, and all expenses incurred by the fund, expressed as a percentage of the average fund size for the period under review.
A ratio denoting the costs incurred in a collective investment fund as a proportion of the total assets in the fund minus the liabilities.
A measure of the total costs of operating a fund as a percentage of average total assets.
a ratio expressing the management, trustee and certain other expenses of a managed fund as a proportion of the net asset value of the fund.
The expenses of the fund (e.g. management, investment, trusteeship) as a proportion of the fund's net asset value.
The management expense ratio is the management fee plus the operating expenses of a mutual fund, expressed as a percentage of the average net asset value of the fund during the year.
This figure comprises the management fee plus all other expenses (excluding government taxes) that are charged directly to the mutual fund (as set out in each fund's prospectus), stated as a percentage of the Net Asset Value of the Fund.