Coming back from a month of vacationing, I needed to catch up on all the past financial headlines. But I could care less about the recent China markets situation, or the Canadian Federal bank decision on Canadian interest rate. My mind’s still in vacation mode, I suppose… but the bargain hunter in me loves hearing about good deals, and the fact that PH&N is now making its products more accessible to Canadian investors was a headline I naturally gravitated towards.

I’ve previously blogged on how I loved PH&N - a Canadian investment management firm possessing a terrific reputation. On July 2^nd, PH&N will launch B and F series of their funds. Their elitist minimum investment restriction lowered to $5,000 from $25,000. Compared to its Canadian peers, its funds bear MER costs that are well below the industry standard. Isn’t that a refreshing concept to hear from an investment company?

Solid Performance At A Lower cost
I’m really tempted to drop $5000 and open a PH&N account myself. Though I’m a stock picker at heart, I also engage in some mindless mutual fund dabbling for the portions of my portfolio I don’t want to fuss about. It’s my way to diversify by style; to ensure that I don’t totally ruin any chances of future retirement through bad trades. And no, I don’t suffer from lack of confidence if you haven’t noticed. Ha-ha..

No grand arguments here about how PH&N have the best funds. But you should take a look at the fund performances they boast - solid across the board. The majority of these funds fit my criteria: long history, steady / above industry peer performance, no extreme dips and swings in style, performance and management. Most mutual fund investors aren’t the types to constantly worry about their funds. The PH&N principals have proven they’ve got what it takes to give you that piece of mind with their conservative yet winning style. And why not also offer it at a lower price than most of their competitors?

A Strategic Shift - Paying Advisors
If you had a Canadian financial advisor who was recommending PH&N funds to you before, chances are that’s a good advisor who’s not in it for the money as PH&N never paid advisors. Accordingly, if PH&N wants to reach a larger investor population with its offerings, partnering up with these distribution channels was a no-brainier decision.

Reading the article above, you might also be curious about “trailer fees“. These are how most financial advisors get paid. Advisors don’t simply draw commissions from your initial investment load fee, but are also paid a tiny % of the MER annually for their continuing service of your accounts. This is precisely why many advisors want to build a large investment capital portfolio under their management because these trailers are their version of “passive” income.

Will More Follow?
Taking the high road served PH&N for quite a while, but coming down to help the common man is its own rewards. By leveling the playing field and making its services more accessible to Canadian investors. PH&N is only helping to rebuild the battered image of mutual fund companies. I’m hoping that more companies will follow PH&N’s example and rethink their marketing strategy, and MER cost structure.