Montreal-based National Bank Investments Inc. (NBI) said Tuesday will start paying most operating expenses for the National Bank mutual funds in return for the payment of a fixed-rate administration fee.
“With the introduction of fixed-rate administration fees for the National Bank mutual funds, we aim to provide our investors with enhanced clarity and greater predictability about the costs of investing,” said Jonathan Durocher, president and CEO of NBI, in a release.
“The main components of the management expense ratio of these National Bank mutual funds will become fixed, rather than varying from year to year as they currently do,” he added.
On Jan. 1, 2015, NBI will begin paying certain operating expenses of the National Bank mutual funds in return for a new fixed-rate administration fee paid by each fund to NBI. The fixed-rate administration fee for each funs will be less than or equal to the actual annualized operating expenses paid by each fund during the six-month period ended June 30, 2014. Investors will be protected from potential increases in certain operating expenses, as these increases will be borne by NBI. By harmonizing its approach with the one used by its Meritage Portfolios, NBI wants to improve and simplify its investors’ experience.
Reduced management fees for F Series
In addition, management fees will be reduced for F Series of National Bank Global Tactical Bond Fund, National Bank Corporate Bond Fund, National Bank High Yield Bond Fund, National Bank U.S. Dividend Fund, National Bank Global Equity Fund, Westwood Global Equity Fund and Westwood Global Dividend Fund and for F5 Series of Westwood Global Dividend Fund, National Bank Global Equity Fund and National Bank High Yield Bond Fund, effective as of September 23.
Further, National Bank Corporate Cash Management Fund and National Bank Treasury Management Fund will be closed to new purchases effective as of October 31.