Mutual Funds and Other Managed Products

This video covers the following learning objectives:

1. Identify Types of Mutual Funds and Their Objectives

   • Differentiate between money market, bond, equity, balanced, and index funds.

   • Match each fund type to an appropriate investor profile.

2. Understand and Explain Fee Structures

   • Define and compare Management Expense Ratio (MER), front-end loads, back-end loads (deferred sales charges), and no-load structures.

3. Calculate and Interpret Net Asset Value (NAV)

   • Use the formula: NAV = (Total Assets – Liabilities) / Outstanding Units.

   • Understand the role of NAV in daily pricing of mutual fund units.

4. Assess Product Suitability Based on Investor Profiles

   • Match investment products to time horizons, risk tolerance, and investment objectives.

   • Evaluate scenarios (e.g., Sarah’s case) using suitability standards.

5. Compare Mutual Funds with Other Managed Products

   • Understand how ETFs, pooled funds, and wrap accounts differ in structure, cost, and utility.

   • Evaluate when each product type is most appropriate.

6. Explain the Legal Purpose of the Fund Facts Document

   • Understand that it is a regulatory requirement under NI 81-101.

   • Recognize the obligation to deliver it prior to purchase.

7. Describe the Contents of a Fund Facts Document

   • Key sections: investment objective, holdings, risk scale, past performance, fees, and investor rights.

8. Promote Informed Decision-Making Through Disclosure

   • Use Fund Facts to help clients understand risk, fees, and expected outcomes.

   • Reinforce ethical and fiduciary standards.

9. Demonstrate Compliance with Suitability and KYC Standards

   • Use Fund Facts delivery and discussion as part of regulatory compliance.

   • Document that disclosure occurred and that the client understood the product.