Work

Determinants of Management Expense Ratio for Canadian Mutual Funds

Year: 2019

Type: article

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.

Source: Atlantic Canada Economic Review/Revue d'Économie du Canada Atlantique (ACER-RECA)

Authors: Chandler, Vincent, Kaur, Manbir

Institution: Université du Québec en Outaouais

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W7220080775

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