What is an MER? Does CST charge one?

If you open an RESP and invest in mutual funds, there will be a Management Expense Ratio (MER) charged to that fund. MERs include management fees (funds paid to a portfolio manager) plus the fund’s day-to-day operating expenses such as record keeping, fund valuation costs, audit and legal fees, and costs for sending out prospectuses and annual reports. The MER also includes taxes such as the harmonized sales tax (HST) or goods and services tax (GST). The MER doesn’t include trading costs, which are included in the Trading Expense Ratio (TER).

CST charges its Plans an all-inclusive management fee to cover administration, portfolio management, trustee, and custodial services, including trading costs.

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