Calgary-based Norrep Capital Management Ltd. is launching the first flat management fee pricing model for its mutual funds, known as Z Series.

For Norrep’s core portfolio of funds, the Z Series replaces the annual percentage management fee with an annual flat management fee of $1,000 plus taxes, per fund, per account.

“This innovation is industry leading,” says Alex Sasso, Norrep’s CEO, in a statement, “and we are proud to be the first to introduce actively managed funds with flat management fee pricing.”

In simple terms, the management expense ratio model is replaced with a fee expense ratio model. By using flat management fee pricing, the cost of ownership is fixed, even as the assets grow.

“Mutual funds are great long-term investments and the flat management fee pricing that Z Series offers will give investors a great advantage over time,” says Wan Kim, Norrep’s senior vice president, national sales and marketing, in a statement.

Adds Sasso: “For example, if an investor has $300,000 in a mutual fund with a 1% management fee, the cost per year is $3,000. Using Norrep’s actively managed Z Series, the cost is only $1,000. Over a 10 year period of time, that difference really adds up.”

Norrep’s Z Series funds are designed to support advisors and investors using a fee-based account. Norrep is offering Z Series pricing for Norrep Core Canadian, Norrep Core Global and Norrep Premium Growth Class (an Norrep Fund of Funds).

The Z Series minimum investment is $100,000 with a maximum investment of $1 million.