Management Expense Ratio (MER)

Management Expense Ratio (MER) represents the total annual fees and expenses charged to the fund as a percentage of its assets. The MER covers the costs of managing the fund, including investment management fees, administration, and operational expenses. In segregated funds, the MER may also include the cost of guarantees, such as maturity and death benefit guarantees, which offer additional protection to investors.

Key aspects of MER include:

1. Annual Fee: Expressed as a percentage of the fund's assets.
2. Covers Fund Costs: Includes management, administration, and operational fees.
3. Impact on Returns: Directly reduces the fund's net returns to investors.

The MER is an important consideration for investors, as it affects the overall return on investment.