It has been 18 months since we launched our AFINA Optima10 product in partnership with National Bank Correspondent Network. Given the tremendous success of this product and our ongoing effort to offer the best value to our clients, we are reducing the management fees as of June 1, 2016, and raising the minimum investment amount.
Management Fee Reduction
As of June 1, 2016, the management fee for AFINA Optima10 accounts falls to 1.55% (from 2.00%) annually for households with over $250,000 of assets invested in the AFINA Optima10 product and 1.85% (from 2.25%) for all other accounts. Note that HST applies to all management fees. Existing clients will be receiving updated investment management agreements in May in order to put the new fees in effect for June 1, 2016.
As demonstrated below, our new fee structure offers even more value to clients compared to typical equity mutual fund fees in Canada.
Minimum Account Size
As of June 1, 2016, we are raising the minimum investment amount for new accounts to $20,000 (from $10,000). Note that we may still accept smaller accounts for families that wish to consolidate their investment accounts at AFINA (for example if an RRSP meets the $20,000 criteria and the family wants their $10,000 RESP consolidated at AFINA). Existing accounts are not impacted by this change.