Ah, the good people at Mackenzie Financial. Last year, they brought us I Thought I Wanted an ETF, a marketing brochure full of red herrings and half-truths about exchange-traded funds, clearly designed to discourage their clients from getting out of Mackenzie’s high-priced dreck and into low-cost investments. You can read discussions of this little gem on Larry MacDonald’s and Jon Chevreau’s blogs.
Now the consumer advocates at Mackenzie have released a new report called Canadian Mutual Fund Ownership Costs: Competitive Relative to the U.S. It looks to bust the popular idea that US investors pay dramatically lower fund fees than Canadians. You can download either the six-page research summary or the complete 14-page report. If you have a pronounced gag reflex, I suggest the briefer version.
Fees are calculated differently
I’ll concede that several points highlighted in the report are true, and that they’re often misunderstood by investors and the media, who tend to focus on Canada’s undeniably higher MERs. “The calculation of mutual fund expenses is different between the two countries,” the report rightly argues,