Determinants of Management Expense Ratio for Canadian Mutual Funds

Authors

  • Vincent Chandler Université du Québec en Outaouais
  • Manbir Kaur

Abstract

Using a sample of 6,739 Canadian mutual funds, we study the determinants of the Management Expense Ratio (MER). Our main finding is that banks offer mutual funds at a MER 0.4 percentage point cheaper than those offered by non-bank financial institutions. This result could be explained by the presence of economies of scope which reduce the operating cost of banks and thus the cost of investing for their clients.

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Published

2019-04-29

Issue

Vol. 1 No. 1 (2019)

Section

Articles

License

The Atlantic Canada Economics Review (ACER) is an open-access journal using the CC-BY licence. The objective is to enable authors to get maximum exposure for their work. This licence allows unrestricted reuse of content, subject only to the requirement that the source work be appropriately attributed. Consequently, authors retaihttp://acer-reca.ca/n the right to disseminate their works, as long as they give credit to ACER.