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Help me understand MF fees? and performance?
July 18, 2016
4:44 pm
yuj
Ontario
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I've got ~ $10,000 in Fidelity True North Cdn Eq -B (FID225) held more than 8 yrs in TDDI in sdrsp.
Td displays that it has a MER of 2.29% (Actual Management Fee 1.85%)
So is it correct that I incurred about $229 for owning this fund for the past 1 yr. ?

In Td, it shows distribution yield .61%, 6/30/2015 close 40.44 , 6/30/2016 close 39.25 , and a corresponding 1 yr graph ending little lower than a yr prior (to 6/30/2016)
What is my actual 1 yr return in $$ to 6/30/2016 after fees?
What is my 1 yr return as a % to 6/30/2016 after fees?

Fidelity website shows 1 yr performance to 6/30 is .32% (and MER 2.27% as of 12/31/2015)
Globefund website shows 1 yr performance to 6/30 is 0.32% (MER 2.29%, mgmt fee .35%)
Does that equate to I making about $32 (inclusive of all incurred fees 1yr to 6/30/2016) ?

Is there somewhere online I can view 1, (2 or 3) year MF performance line graph incorporating distributions ? (ie for above fund, line would end a tinsy bit above starting pt 1 yr prior)

Also, Blackrock website shows iShares S&P/TSX 60 Index ETF (XIU)
Mgmnt Fee 0.15% (MER) 0.18% Max Annual Other Expenses 0.02% Dividend yield 2.84%, 6/30/2015 close 21.31 6/30/2016 close 20.56 Average Annual Performance 1y, 3y, 5y -0.55, 8.56, 4.29 % (to 6/30/2016)

So if I had $10,000 in XIU, I would have lost about $55 in the past yr (inclusive of MER fees to 6/30/2016) according to their website stated 1 yr performance ?
(I realize there would be ~ $10 buy, $10 sell trading fees)

July 18, 2016
9:01 pm
Norman1
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yuj said

I've got ~ $10,000 in Fidelity True North Cdn Eq -B (FID225) held more than 8 yrs in TDDI in sdrsp.
Td displays that it has a MER of 2.29% (Actual Management Fee 1.85%)
So is it correct that I incurred about $229 for owning this fund for the past 1 yr. ?

It is not as easy as that.

Management fees are often calculated on daily valuations and actually paid by the fund monthly or quarterly. It is not based on the value at the start or end of the period.

If your fund units were worth $10,000 at the start of the year and $9,000 at the end of the year, but averaged $13,000 throughout the year, then you would have paid around $13,000 x 2.29% = $297.70.

July 18, 2016
9:26 pm
Loonie
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I can't help, but this is a great example of why we need much more transparency in reporting.

July 18, 2016
11:08 pm
2of3aintbad
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If you had bought $10,000 at 40.44, you would have 247.2799 units. On December 18, 2015, the fund paid a distribution of $314.27 (247.2799 * $1.2709). If you had chosen to automatically reinvest the distribution (which is assumed for the fund performance numbers), you would have an additional 8.3318 units ($314.27 divided by the reinvestment price 37.719) for a total of 255.6117 units. Multiply that by 39.25 and you get $10,032.76 ie 0.32%. Better performance than xiu over every period up to 15 years, it appears.

You can get various graphs (that adjust for distributions reinvested) using the 'Chart' tab:
http://globefunddb.theglobeand.....mp_id=2563

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