Beginning next year, most operating expenses for National Bank mutual funds will be paid for through a fixed-rate administration fee.
On Jan. 1 2015, National Bank Investments (NBI) announced that it will begin using a fixed-rate administration fee to pay for fund operating expenses. These expenses include (but are not limited to) items such as record keeping costs, custodial costs, accounting and valuation fees, audit fees, legal fees, as well as the costs of preparing and distributing financial reports, prospectuses, and information forms.
"With the introduction of fixed-rate administration fees for the National Bank Mutual Funds, we aim to provide our investors with enhanced clarity and greater predictability about the costs of investing," explains NBI's president and chief executive officer Jonathan Durocher. "The main components of the management expense ratio of these National Bank Mutual Funds will become fixed, rather than varying from year to year as they currently do."
NBI notes that the National Bank Global Tactical Bond Fund, National Bank U.S. Dividend Fund and National Bank Floating Rate Income Fund are already subject to fixed-rate administration fees, while the National Bank Income Fund and National Bank Asset Allocation Fund will be excluded from this change to fixed-rate administration fees.
