Management Expense Ratio (MER)

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Management Expense Ratio (MER)

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The fee charged by the fund manager for investing your money and represents the total cost
associated with investing in a managed fund. Expressed as a percentage, this fee is deducted from
your return – you don’t pay it out of your pocket.

MERs are generally higher with growth style managed funds as opposed to defensive or passive style
managed funds. As well as covering the running costs of the fund, the MER also remunerates the fund
manager for their role.