The September issue of Insight examines trends in mutual fund loads in Canada through the first half of 2013.
The story tracks assets, gross sales, redemptions and net new money by load option over time. We also present company sales rankings within each load option. Thanks to data provided to us by the largest providers of load funds, the analysis splits the assets and sales activity in optional load funds by the actual loads used.
The discussion about loads is part of the broader issue of mutual fund advisor compensation structures and, in particular, the embedded nature of that compensation. So far, changes in the mutual fund advisor compensation formula have largely occurred without regulatory intervention. However, the next stage will likely be influenced by the regulatory agenda. Canadian securities regulators have recently signaled growing interest in the embedded nature of the mutual fund compensation. How much advisors are paid, who pays them and what services these payments cover, are among issues moving to the fore of regulators’ agendas in several jurisdictions.