The Investment is Mutual

Spring 2007 CSANews Issue 62  |  Posted date : Jun 06, 2007.Back to list

Three academics from the Harvard Business School studied 50,000 mutual funds in 18 countries. They found that the average cost of management expenses for mutual funds was 1.9% for all countries studied. Canada had the highest expense ratio, coming in at 4.7% and the United States was one of the lowest at 1.7%.

Approximately 15% of Canadian equity fund managers have beat their index over the past five years. In the United States, approximately 25% of fund managers outperformed the S&P 500.

There is agreement among academics that there is no correlation between fees and performance. Higher management fees do not necessarily translate into superior fund performance.