Fund pricing changes have been made to lower and improve management fees for clients
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ScotiaFunds, a division of Scotiabank subsidiary 1832 Asset Management LP, has announced a simplified pricing framework for its lineup of 51 funds, which include long-term, actively managed asset classes, and portfolio solutions. The new pricing model, according to the firm, provides for lower management fees, giving investors access to a full suite of actively managed funds that incorporate simplicity and value.
“The simplified approach to pricing for ScotiaFunds enables our clients to better understand the cost of their investments while saving money on fees and making their investments go further,” said ScotiaFunds Managing Director Neil MacDonald.
For its 31 actively managed standalone funds, management fees have been equalized according to product category, with four distinct levels established for fixed income (1.1%), equity income/dividend income (1.5%), balanced (1.65%), and equity funds (1.75%). Pricing premiums on any foreign or specialty mandates have also been removed, providing ScotiaFunds clients with greater value to their investments. Fixed administration fee reductions, ranging from 0.002% to 0.21%, have also been instituted for a number of mandates.
For Scotia Portfolio Solutions, pricing thresholds have been defined between each program to align to the value proposition delivered. The Scotia Selected Portfolios, which are invested exclusively in proprietary ScotiaFunds and Dynamic Funds, are to experience management fee reductions from 0.05% to 0.2%. The Scotia Partners Portfolios, whose mandates extend to include strong third-party investment companies, are to undergo reductions within that same range. Each Partners portfolio is set to be priced at 0.25% above the equivalent Selected portfolio.
Finally, the Scotia Aria Portfolios – the firm’s premier retirement and retirement income solution for clients who invest a minimum of $100,000 – have new competitive management fees. The fees have been designed to make the management fee of each Series A offering and its corresponding Premium Series offering equal.
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