Sentry Investments announced Feb. 16 a proposal to change the way operating expenses are charged to its funds. The company would pay certain operating expenses and in return charge a fixed administration fee on Series A, T, B, BT, F, FT, O and X of certain funds. This change would provide investors with “increased predictability and transparency in the costs of investing,” says the company.
As it currently stands, each fund pays its own operating expenses. If the proposal is approved, the projected management expense ratios would be the same or lower for each participating series of each fund, says Sentry.
No fixed admin fee is proposed for Series I, S or Z securities Separate fee and expense arrangements are established between Sentry and each securityholder of these series.
Protection against increased costs
"Under the current practice, investors do not know the operating expenses of a fund until it releases its financial statements," said Philip Yuzpe, President and Chief Executive Officer, Sentry Investments. "With fixed administration fees, Sentry investors will have the certainty of knowing what they are paying to invest in our funds, along with protection against increased costs, given that the management and administration fees cannot be increased without their approval."
Special meetings of securityholders have been tentatively scheduled for May 3, 2018. If approved, the change will take effect on or before Dec. 31, 2018.