Finance
A) I have chosen the Templeton Global Total Return A, which is a high-performing fund that offers diversification and a global outlook. It is comprised of world bonds and cash. The fund's income is primarily generated from its load, which in this case is 4.25%. This is a front load. The other main cost in a mutual fund is the MER, or management expense ratio (Investopedia, 2014). For this fund, the MER is 1% (Morningstar, 2014).
b) The operating expenses are pretty much the same as for any fund. The fund needs managers, who do research, make investment decisions and administer the fund. The fund is also going to be subject to transaction costs -- while Templeton is big enough to minimize these costs, there are always transaction costs when going into the market.
c) I would say that these fees are fairly reasonable. A bond fund requires less research than an equity fund, so a lower-than-average MER is expected. The fund has a turnover of 25% annually, so there is some trading to adjust things like the duration of the fund...
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