AFM121 Chapter Notes - Chapter 18: Canadian Securities Course, Mutual Fund Fees And Expenses, Client Confidentiality

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Craig Geoffrey

Document Summary

Lots of different funds in structure and investment profile. About 50% of investable assets in canada is in mutual funds. Fee structure is lower in us than in canada. Mutual funds advantages: low-cost professional management o. Economies of scale; financial services products have very high econ of scale. If i"m a portfolio manager, and you give me 100m to manage and i put it in a portfolio, and then someone else wants to join the same portfolio. I take their money and put it in the exact same portfolio which won"t take me more time. Fixed cost is spread across more investors: diversification o. Mutual funds cannot be concentrated; can"t put 10% of its funds money into a single investment. The mutual fund itself cant own more than 10% of any investment. Prevent huge mutual funds to have control over a corporation: variety of funds and transferability, liquidity o o o.