Canadian fund companies took umbrage recently when researchers issued a report saying they charge the highest fees in the world--and now they plan to do something about it, The Toronto Star reports.
Members of the Investment Funds Institute of Canada intend to contact the American and British researchers who issued a report saying Canadian funds charge an average of 4.66% a year.
The researchers contend Canadian mutual funds include commissions for financial advisers, whether they offer advice or not, and typically charge an additional sales charge if money is withdrawn within five years. All told, these fees add up to an average of 4.66%, compared to an average of 1.68% in the United States and an average of 1.84% in the 14 other nations studied.
But critics say the researchers counted Canadian sales commissions twice and have purposely only included more expensive Canadian funds that guarantee a refund of capital after 10 years. Further, they say, the researchers omitted sales charges on U.S. funds and unfairly compared funds of various asset sizes.