Say farewell to some great funds

RBC Direct Investing nixes mutual funds without trailing commissions.

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From the February/March 2013 issue of the magazine.

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Broken birdcage
Clients of RBC Direct Investing can no longer buy some of Canada’s best mutual funds: offerings from Mawer, Steadyhand and Leith Wheeler. The reason: those funds don’t pay trailing commissions. At about 1% for typical equity funds, trailers compensate dealers for investment advice. Discount brokerages don’t offer advice, but trailers are a lucrative revenue source. RBC says eliminating these funds benefits clients confused by inconsistent fee schedules. John DeGoey, an adviser at Burgeonvest Bick Securities, says RBC shouldn’t be receiving trailers anyway. “It’s reprehensible the industry allows discount brokerages to receive trailing commissions for advice neither sought nor received.”

4 comments on “Say farewell to some great funds

  1. I'm with RBC Direct, I want to get SteadyHand funds. I know people say 'just move your account' – not that easy with penalties for each account transfer and the nutty amount of paperwork/coordination required.

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  2. Is there any other discount broker offering SteadyHand funds?

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  3. John DeGoey Is absolutely Correct! Yes, Investors Edge offers the funds mentioned.

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  4. I agree 100% with John DeGoey. No discount broker should get trailing commission. The only way to fight this is may be to transfer your investment account to the broker who offers these funds

    Reply

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