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Volume3 Issue6
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CDSPI isanot-for-profitorganizationwhosemission isto
provideafullrangeoffinancialsolutionsthatmeettheuniqueneeds
oftheCanadiandentalcommunitythroughouttheir lives.Ourmembers
includetheCDAandparticipatingprovincialandterritorialdentalassociations.
Reportswill not show thecompensationpaid to
individual advisors, but rather to the investment
companies theywork for, and theymust alsoprovide
abrief explanationofwhat trailer commissionsare.
Formutual funds, it’sworthnoting thatCRM2
disclosure regulationsonlydealwith theportionof
yourMER that ispaid toyour investmentfirm. Tofind
out about the fundmanagement feesassociatedwith
the fundsyouown, youwould still need tocheck the
productdisclosures for those funds.
•
Theannual reportonperformance.
This isdesigned
togive investorsabetterunderstandingof their
personal rateof returnafter costshavebeen
deducted. Itprovides results for your full account,
whichmay include individual equities, bonds,
mutual funds, or cash. The reportmust show, in
percentagesandactual dollars, themarket valueat
thebeginningof theyear, deposits,withdrawals,
dividends, anychange inmarket value, and the
closingbalanceat theendof theyear. Itwill also show
your compounded, annualized rateof return from
the timeyouoriginallyopened theaccountwith the
institution, aswell asyour returns for thepast 3, 5, and
10years if that information isavailable.
Thepurposeof thisarticle is toprovideabrief overviewof
thenew reporting requirements. For further explanation
of all theparticularsofphase threeofCRM2,we suggest
that you speak toyourfinancial advisoror investment
firm.
a
Advisoryservicesareprovidedby licensedadvisorsatCDSPIAdvisoryServices Inc. Information
in thisarticle is for informationalpurposesonlyand isnot intended toprovidefinancial, legal,
accountingor taxadvice.Restrictions toadvisoryservicesmayapply incertain jurisdictions.
IfYouHoldCDSPIFunds
SinceCDSPI Funds are segregated funds,whichare regulated
by the insurance industry, CRM2 requirementsdonot apply to
them. That being said, your Investment PlanningAdvisor can
provide similar information to that requiredbyCRM2at your
request.
It’s important topoint out thatCDSPI fundsdonot charge
trailer fees, and thereareno front-endor back-end “loads”
(commissions)whenbuyingor sellinga fund.
Sinceadvisors
fromCDSPIAdvisoryServices Inc. donotworkon
commission, theycanbeobjectiveabout the investments
they recommend.
Their financial planningadvice isofferedas
amember benefit of theCDAandparticipatingprovincial and
territorial dental associations.
Abenefit of our structure is thatweareable to leverage the
buyingpower of thedental community tonegotiate lower
fees,whichhelps lower theMERs for our funds.WhileMERs
for funds inCanadacan reachashighas 3%ormore, the
averageMER for CDSPI funds is 1.26%.
2
As youcan see from
theaccompanyingchart, it’s important toconsider fees inany
investment decision.
If youwould like to learnmoreabout theadvantagesof
investingwithCDSPI Funds, I inviteyou tocontact us at
1-800-561-9401
or sendanemail to
DoFeesMakeaDifference?
Yoube the judge. This chart shows twoexamplesof the
incremental returns youwouldachievewitha1% feeadvantage
onan investment of $100,000over 20years.
1.Source:
BusinessNewsNetwork
,2015
2.Management feesaresubjecttoapplicabletaxes.
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upporting
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our
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