Are Management Expense Ratio (MER) and distributions accounted for in the fund prices and returns shown on globefund.com?
Statistics show the return of the fund for the given time period and do not reflect the effects of sales charges or taxes. Management Expense Ratio (MER) is deducted from the prices that fund companies report to us, provided that the fund, or fund company, is a member of the Investment Funds Institute of Canada (IFIC). For these funds, MER has been accounted for in the returns shown in reports and charts.
Distributions do not affect mutual funds returns (unlike dividends affecting stock returns). If a fund is trading at $12 and issues a distribution of $1, then the next day the fund trades at $11. The fund owner gets additional units so that there is no effective change in total worth for the fund from the ownser's point of view. Therefore the formula to calculate returns on globefund.com is as follows:
[ P2 + Dist - P1 ] / P1
P2 = end of period price (net of distributions)
P1 = beginning of period price
Dist = distribution
For more information about globefund.com Fund Reports, click the Help and Information button below any Fund Report or click here.
Click here to return to the Help & Contact Us page.
Back to top