Infographic will help to justify fund fees

par Andrew Rickard | July 15 2016 11:34AM

Photo: Freepik

The Investment Funds Institute of Canada (IFIC) has published an infographic to show investors what services they receive in return for the mutual fund fees they pay.

The second phase of the Client Relationship Model (CRM2), that takes effect today, requires fund dealers to send two new reports to investors: one discloses, in dollar amounts, the amount of money the dealer has earned on the investor’s account during the previous year, and the other shows how well the client’s investments have performed.

Costs and performance

“We expect the new reports will encourage more investors to talk to their advisors about the costs and performance of their investments,” says IFIC president and CEO Joanne De Laurentiis. “Our new infographic will help advisors explain the services investors receive for the fees that they pay using an easy-to-understand visual format.”

The infographic breaks down the different roles of fund managers, dealers, and advisors. In particular, it points out that the dealer and the advisor are responsible for understanding and reviewing the client’s needs, determining how much risk the client is willing and able to handle, as well as guiding the client to build and maintain a financial plan.

The new infographic is available in both French and English on the IFIC web site.

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