The MER is expressed as an annualized percentage of daily average net asset value during the period. For example if a fund's MER is 0.78%, this means the fund incurs annual costs of $78 for every $10,000 invested in a given year.
mer = Total sales revenue (over Specific time) / Total MARKETING spend (over the same period, across all channels)
Let's talk about fees and your returns. It's important to remember when you check how your fund is doing that Performance is reported NET of the MER. That means the fund's performance is calculated AFTER the MER deducted. So the returns you see are the returns you actually receive.
Investment management fees for exchange-traded funds (ETFs) and mutual funds are deducted by the ETF or fund company and adjustments are made to the net asset value (NAV) of the fund daily. Investors don't see these fees on their statements because the fund company handles them in-house.
The MER or expense ratio represents the total cost of managing and operating a fund and is given as a percentage of the fund's total assets. It includes the management fee and a broad range of expenses.
Charges and costs taken from a fund over a year
These are the annual operating expenses of running the fund and are deducted from the net assets of the fund. Different charging bases apply to different types of funds; these are explained in the 'Fund charges and costs' document.
The management expense ratio is not a fee directly charged to investors. Rather, it is deducted from the fund's net asset value (NAV). Investors are charged other fees associated with the fund – fees that are not part of the MER, and that are charged when an investor buys or sells their fund shares.
It's worth noting that MER fees do not have to be paid separately by the investor; they're deducted annually from the fund and reflected in the fund's daily net asset value (NAV).
It's paid from the fund's management fee, so it's reflected in the fund's MER. It typically ranges from 0.25% to 1.5% of the value of your investment each year. It is to pay for the services and advice the advisor and their firm provide to you.
Therefore, a higher MER is expected — anything around 5.0 or above is considered good. That means ad spend equals 20 percent or less of total revenue. MER is also easy to calculate for different e-commerce periods — revenue generated in the last three months, last six months, etc.
The calculation is simple. Total revenue divided by total ad spend. Similar to ROAS, MER is expressed as a ratio. $15k in revenue on $5k in spend equals an MER of 3.0.
Key Differences: While MER offers a broad perspective on marketing effectiveness, ROAS provides a more granular analysis of individual campaign performance. MER supports long-term planning and strategic adjustments, whereas ROAS aids in refining specific campaigns.
Management Expense Ratio (MER) Calculation
The MER is the percentage of the annual fees plus the annual expenses, divided by the average net assets of the fund. Typically, MERs in Canada are below 3%.
MERS is the lienholder of record and holds legal title to the lien granted by the borrower in the Mortgage (“MERS Mortgage”) as the nominee (agent) of the lender and the lender's successors and assigns who are members of the MERS® System. MERS is not the lender, and MERS does not service your loan.
A MERS diagnosis requires a positive test result from a molecular test, which indicates that MERS-CoV genetic material was detected in a patient's clinical specimen. Until confirmatory testing is performed, a positive result is considered a presumptive positive.
How do MERs work? The MER is expressed as an annualized percentage of daily average net asset value during the period. For example if a fund's MER is 0.78%, this means the fund incurs annual costs of $78 for every $10,000 invested in a given year.
MERS is used by lenders to keep track mortgages as they sold and change hands. The MERS fee borrowers pay depends on mortgage type and other factors but is usually less than $20.
Most patients develop symptoms approximately 5 days after an exposure to an infected person or camel, but the incubation period can range from 2-14 days. In hospitalized MERS patients, the median time from the onset of symptoms to a person's hospitalization is approximately 4 days.
Note that mutual fund management fees are different from management expense ratios (MERs), which are not tax deductible.
A MER above 1.5% is usually considered high, and some MERs are higher than 3%.
SPY is more expensive with a Total Expense Ratio (TER) of 0.0945%, versus 0.03% for VOO. SPY is up 28.31% year-to-date (YTD) with +$7.13B in YTD flows. VOO performs better with 28.36% YTD performance, and +$103.99B in YTD flows.
FMC is a fund management charge that an insurance company deducts as a percentage of the fund's value. The FMC is deducted before the computation of the daily NAV (Net Asset Value) of a fund. An insurance company can charge a maximum FMC of up to 1.35% p.a. on the fund's value for fund management.
The AIC's recommended methodology for calculating an Ongoing Charges figure uses, as the denominator, the average of the net asset values (NAV) in the period. It is recommended that net asset values should be calculated on the basis of debt at fair value and including current year income.
A general rule—often quoted by advisors and fund literature—is that investors should try not to pay any more than 1.5% for an equity fund. At the same time, small-cap funds usually have higher trading costs than large-cap funds.