The question is do you really have to pay so much? Is there sufficient value that you derive from holding these funds that justify the costs?Keep in mind that we are in a persistently modest-growth, modest-return economic environment, which is expected to continue in the foreseeable future. A 2013 Morningstar report titled “ Global Fund Investor Experience” indicated that Canada has one of the highest costs of investing in mutual funds amongst 24 countries covered in the report.The table below shows the top 10 mutual funds by size (total assets) in Canada and the average returns they have realized over time vs.In this environment, if you are paying over 2% in investment related costs per year, you may well be giving up 25 to 50% of your annual return to pay for such costs.To put that opportunity cost into perspective, if you have $50,000 in your RRSP portfolio today and commit to saving $10,000 every year over the next 25 years towards your retirement goal, a 1 percentage point cost saved on an annual basis results in an incremental portfolio value of about $120,000 when you retire (assuming your portfolio earns an annualized gross return of 7% over the time period).This is the power of compounding (check it out here) that can make a huge difference for you when you start early and lower your costs.If you are unsure about total costs of investing, read the 2-part blog we wrote last year on total costs of investing – What is my total cost of investing? (Part 1) and What is my total cost of investing? (Part 2). The MER-Performance Ratio included in the table measures the fund’s MER as a percentage of the fund’s estimated gross long-term performance using the longest available comparable performance history for all the funds. Invisor is a company that offers personalized goal-based investment management services to purchase life and health insurance. Invisor is a company that offers personalized goal-based investment management services to purchase life and health. Legal counsel was provided to Abacus by Goulston & Storrs, PC.Tags: Costs, Exchange Traded Funds, F-Class Mutual Funds, Management Expense Ratios, Portfolio, RRSPInvisor offers personal financial planning and investment management for individuals and full-service 401(k) plans to businesses in Kansas, Nebraska.Invisor has launched a goal-based, online investment management service. “Invisors has a demonstrated track record of success, growing at rates significantly ahead of its peers,” added Abacus Managing Director and COO Sean McKeever.Ībacus team members involved in the transaction included Sean McKeever and Joseph Lee. As in other transactions, our success was a function of our speed, cash-flow flexibility, and certainty of close – key aspects of what we call our Total Partnership Approach™.” “We were extremely impressed with the senior management team and are excited to be their financing partner as they embark on the next stage of growth. “Invisors and its founding partners have an impressive track record as a service partner within the Workday ecosystem,” said Tim Clifford, President and CEO of Abacus Finance. It’s great to have seen both of our firms grow together.” Abacus is an important and valued relationship for us at WestView. Once again, the entire process was handled smoothly and efficiently. "One, they are easy to work with, and two, they are extremely reliable. “We selected the Abacus team, whom we have known for many years, for two reasons,” said Rick Williams, Managing Partner of WestView. WestView Capital Partners, a Boston-based private equity firm focused exclusively on middle market growth companies, manages approximately $1.7 billion in capital across four funds. magazine’s Best Workplaces, Fortune’s Best Medium Workplaces, and Inc.’s 5,000 Fastest-Growing Private Companies. Invisors’ track record of successful results has been recently recognized by Fortune’s Great Place to Work, Inc. Abacus also made an equity co-investment in Invisors.Īs a certified Workday Services Partner, Atlanta-based Invisors helps customers utilize their organizational data to make better-informed business decisions through the deployment and optimization of Workday. Abacus Finance Group served as Senior Secured Credit Facilities Administrative Agent and Lead Arranger for senior secured credit facilities to support the recapitalization and growth of Invisors, LLC, a WestView Capital Partners portfolio company.
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