CIBC Securities Inc. - CIBC Mutual Fund fees

Management fee vs. management expense ratio (MER)

You may have come across the terms "management fee" and "management expense ratio" (MER) mentioned in association with mutual funds, and be wondering what the difference is.

•  management fee: the fee paid to the fund's manager for supervising the administration of the fund.
• management expense ratio (MER): total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by a fund.

Each CIBC Mutual Fund pays its manager, Canadian Imperial Bank of Commerce, a management fee and is also responsible for its own operating expenses. 

Special management fee discount for Simplii Financial™ customers

Customers of Simplii Financial services get an automatic management fee rebate when they invest in the CIBC Family of Portfolios - ETF portfolios  and CIBC Mutual Funds - Index  Funds. 

With this special offer, you'll receive a management fee rebate of 10 basis points to give you an opportunity to increase your long-term investment return. The special management fee rebate is calculated as follows:

• calculated daily, paid quarterly
• based on closing market value of the index funds within an account for the previous day
• paid to the investor's account through a distribution of additional units of the same mutual funds
• considered income to non-registered account holders and reported on the Statement of Trust Income and T3 tax slips (applicable taxes included)
• if you sell or transfer all units of the fund, any accrued management fee rebate earned but not yet distributed, will be distributed to the fund and included in the total transaction amount

Important information about CIBC Securities Inc. and CIBC Mutual Funds

CIBC Mutual Funds and CIBC Family of Portfolios are offered by CIBC Securities Inc., a wholly-owned subsidiary of Canadian Imperial Bank of Commerce (CIBC). Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus of the fund(s) before investing. To obtain a copy of the CIBC Mutual Funds and CIBC Family of Portfolios simplified prospectus, call CIBC Securities Inc. at 1-800-465-FUND (3863) Opens your phone app.. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 

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The difference between the management fee otherwise chargeable and the reduced fee payable will be distributed by the Fund to eligible unitholders (a “Management Fee Distribution”). The amount of the Management Fee Distribution is automatically invested in additional units of the applicable class of units of the Fund. Management Fee Distributions received in non-registered accounts may be taxable. A Management Fee Distribution results in a distribution of additional income, capital gains and capital to an investor. The investor will receive a T3 slip with Management Fee Distribution included in the appropriate boxes. You should discuss Management Fee Distributions with your tax advisor so that you are fully aware of the tax implications for your particular situation.

The offer of the CIBC Mutual Funds and CIBC Family of Portfolios is available from Simplii Financial across Canada (excluding Quebec). The information contained on this site does not constitute an offer or solicitation to buy or sell any investment fund, security or other product, service or information to any resident of Quebec, the U.S. or the U.K. or to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot legally be made or to any person to whom it is unlawful to make an offer or solicitation. 

The information on this site is not intended to provide specific financial, investment, tax, legal or accounting advice for you, and should not be relied upon in that regard. You should not act or rely on the information without seeking the advice of a professional.

CIBC Asset Management, Simplii Financial, the Simplii Financial designs, and the CIBC logo are trademarks of CIBC, used under license. The material and/or its contents may not be reproduced without the express written consent of CIBC Asset Management Inc.

“Simplii Financial” is a division of CIBC. Simplii Financial banking and investing services are not available in Quebec.