The Month Of May Brings Some Significant Changes To The Structure Of Our Models:

One of our mandates at High Rock Capital Management is to use our pricing power as an institutional asset manager to pass on cost savings to our Private Clients where we can.

Our thorough research through the month of April has identified a number of areas where we can replace ETF's and Mutual Funds (with relatively expensive MER's) by creating our own baskets of securities to replace them thereby eliminating the additional costs.

By reducing ETF / Mutual Fund use from 100% to approx. 46% we will reduce MER costs from over 0.50% to approx. 0.08% on my original 60% equity / 40% fixed income model.

Management Expense Ratios (MER's) can add up: 

In a November, 2014 article in the Globe and Mail, referencing a Vanguard study: The Average Fee Based Advisor charges 1.25% fee and purchases  mutual funds for client portfolios with an average MER of 1.36%.

(click on this chart to enlarge)

Investors should be aware of these costs because they can, over time turn out to be significant.

In a low return environment even more so!

We believe that it is our responsibility to our clients to provide them with not only better than average risk-adjusted returns, but also to add value by reducing their costs.

www.highrockcapital.ca