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Investing fees

Get a full, clear picture of all the fees you pay at MD

Maintaining fee value and providing complete transparency to you is a major commitment for MD Financial Management. Part of this commitment involves providing products and services with fees that are competitive and easy to understand.

So that you can select the right level of services that fit your needs, we’ve designed the MD Financial Suite to provide multiple ways for you to work with MD. It’s important to us that you are comfortable with the fees you pay and that you understand the financial planning services they enable.

Sacrificing quality to offer rock-bottom costs is not our goal. Instead we strive to deliver maximum value to you. That said, we are proud that our management expense ratios (MERs) are, on average, 49% (Series F), 29% (Series A) and 11% (Series D) lower than industry averages.1

How our fees are disclosed

Your MD statements show the account fees and taxes paid for the reporting period.

Financial institutions are now required to provide more detail than in the past to investors on the fees and compensation we collect and on investment performance. You may have heard about this regulatory requirement, called CRM2 (Client Relationship Model Phase 2). At MD Financial Management, we provide you with information about all the fees you pay2 — not because we have to, but because we believe it’s the right thing to do.

In compliance with the disclosure requirements, MD Management Limited and MD Private Investment Counsel (MDPIC) have developed two reports — one on fees and one on performance. You receive these reports annually, a couple of weeks after receiving your year-end statement(s):

  • Your Fees and Compensation Report explains the fees you paid in the past year for the investments in your account.
  • Your Investment Performance Report explains how your account is doing and helps measure your progress toward your goals.

MD ExO® Direct (MD Management Limited) annual fees

Account balance< $500,000$500,000–$750,000$750,000–$2 million$2 million–$3 million$3 million–$5 million$5 million–$10 million$10 million+
Fee for each account balance range0.475%
(tiered)		0.45%
(tiered)		0.40%
(tiered)		0.35%
(tiered)		0.30%
(tiered)		0.20%
(flat rate)		0.10%
(flat rate)

For example, Dr. Jones’s account totals $925,000, so the fee would be $4,200, calculated as follows:

  • On the first $500,000, the fee is 0.475%, which equals $2,375.
  • On the next $250,000, the fee is 0.45%, which equals $1,125.
  • On the next $175,000, the fee is 0.40%, which equals $700.

The MD ExO® Direct fee schedule is tiered at the lower ranges, which means reduced fees for increasingly higher account balance amounts. Different rates are charged on each range within the same account.

Accounts with balances of more than $5 million are charged a flat rate fee, which means that the percentage shown in the relevant row above is applied to the entire account balance (from $0).

For more information about MD Plus (MD Management Limited) and MD Private Investment Counsel (MDPIC) account details, please contact your MD Advisor* or MDPIC Portfolio Manager.

* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec), or an MD Private Investment Counsel Portfolio Manager.

1 MD compared the management expense ratio (MER) for MD mutual funds and MD Precision Portfolios™ with the average mutual fund MERs for comparable funds using data from Strategic Insight as of December 31, 2018. The MER is the fee charged to investors to cover the costs of operating a mutual fund. It is expressed as a percentage of the fund’s average total assets.

Trailing commissions (also known as ongoing service fees): An investment fund pays the asset manager a fee for managing your fund. This management fee is based on a percentage of the value of assets. The investment fund manufacturer pays a portion of this management fee to MD for the services and advice we provide to you on an ongoing basis. The amount MD receives is called a “trailing commission” and it is paid to MD for as long as you own the fund. These fees are paid on your behalf; you are not charged the trailing commission or the management fee directly. However, these fees do reduce your overall investment return.

Compensation paid to a dealer to provide services and expertise on your account: MD Advisors are salary based. They do not earn commission, which means they are able to provide the objective financial advice that is best-suited for you and your goals.

MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. For a detailed list of these companies, visit md.ca.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed. Their values change frequently, and past performance may not be repeated. To obtain a copy of the prospectus, please call your MD Advisor, or the MD Trade Centre at 1 800 267-2332. The MD Family of Funds is managed by MD Financial Management Inc.