Progressive Fund Management Fees

The last post on Investors Group fees and performance is disappointing, especially if you are locked into some of their funds which the highest, longest deferred sales charges in the business.

It is possible to find funds offering better value for their fees.  I have noted some in past posts.  Many private investment counsels offer fees for portfolios and funds of 1 to 1.5%.  Bank brokers fees are negotiable and can be as low as 1% for larger accounts of ..one...million...dollars.  In some cases, the fixed income component of the bank broker holdings may come with no fees, with fees applied only on the equities - this pushes down your overall effective fee percentage.

Avenue Investment Management offers innovative performance-related fee reductions whereby the equity fund fee is cut in half whenever the return is negative.  They have a performance based fee for returns over 10%, but it is capped at 1% which should tend to deter too much risk.  Fees are also reasonable to begin with (the Avenue Total Return Equity Portfolio has a management fee of 1.5% of assets under management. for equity portfolios over $500,000).