Less Fees, More Flexibility - Summer 2005

If you haven't already heard, Fidelity Investments has set the tone with a move toward lower fees for clients - good news if you invested in a deferred sales charge (DSC - please see glossary) mutual fund with Fidelity. With this change, you stand to gain more than just savings in fees. You also have better access to your money.

For Karen Wong, this news couldn't have come at a better time.

"After a few months of discussions, my husband and I decided we wanted to purchase a cabin," she says. "Originally, this wasn't our plan, so we weren't sure we had the means to do it."

Wong has been living out a financial plan with retirement, vacations, and saving for her children's educations in mind. And because her investments were locked in for a number of years, she would have to pay a penalty to remove them.

Her investment representative, Steve Boyce from Rice Financial's Ottawa branch, found a solution within her Fidelity mutual fund.

"Karen had invested in the Canadian Asset Allocation fund with a deferred sales charge," he explains. "By moving the allowable 10% per year to a front-end fund, she can access monies without penalty - not to mention she pays 2.28% rather than 2.48% in annual fees."

It is precisely this access that allowed Karen and her husband to put a down payment on a cabin.

And to make provisions for other just - in - case scenarios, Wong is moving her entire investment into this new series.

"I'm going to move the allowable 10% per year into this fund," she says. "You never know, anything could happen."

This offer extends beyond investors who simply want better access to their money. The reduction in MERs means every investor has the opportunity to pay less - a good deal no matter what your circumstance.

"I can't think of a reason not to make the move to this fund series," says Boyce. "Who can say no to paying less in fees?"

If you are like most investors, you may not know whether you have a DSC or an FE mutual fund, but your advisor does. Please contact him or her to discuss this opportunity.

Note: the option to move 10% of your investment is available with other funds. Ask your Rice Financial advisor for more information.