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Investing with ATB Prosper: What fees will I pay?

By 26 May 2020 3 min read

So you’re thinking about investing with ATB Prosper, or maybe you’ve already started an ATB Prosper account and want to learn more. Big questions for any investor include what fees they’ll be charged, how those fees are calculated, how they’ll pay the fees, and how investment fees fit into their big-picture growth goals.

It’s important to us that our customers feel confident in their own financial literacy and the choices they’re making about their money.

Let’s take a look at how investing fees work when you invest with ATB Prosper.

What fees can I expect to be charged through ATB Prosper?

When you invest with ATB Prosper, you are investing in one of the five Compass Portfolios available to ATB Prosper clients.

You will be investing in Series A of the Compass Portfolios. In Series A, both the management expense ratio (MER) and trading expense ratio (TER) are known as “embedded” costs. This means they are not charged to you directly; instead, the fees are deducted from the fund’s returns. Put another way, your earnings on your mutual fund are always reported with the fees already subtracted.

An investment with ATB Prosper is not subject to annual account maintenance fees, performance fees, front-load or deferred sales charges (DSCs). Read more about these and other investing fees.

What is the ATB Prosper Bonus?

One of the unique benefits of investing with ATB Prosper is the Annual Prosper Bonus which is an annual refund of a portion of the MER you pay. Why is this important? It means that while the MER you’re paying with ATB Prosper is going to be comparable to the MER charged by other institutions, with ATB Prosper, part of the fee amount is reinvested for you.

What does a management expense ratio (MER) cover?

You can think of the MER as being kind of like the cost of an all-inclusive vacation—you pay one price for a complete service experience (the cost of operating your investment portfolio). All mutual funds have a MER, though the services the MER covers can vary based on financial institution and investment series. Expenses that are covered by the MER include: administration expenses, professional portfolio management through the sub-advisors that manage the stocks and bonds within your mutual funds, and GST.

Like the TER, the MER is calculated as a percentage of the total value of your fund. In Canada, the average MER is around 2 per cent.

How do I pay investment fees with ATB Prosper, and where can I see how much I’m paying?

Because the MER and the TER are both embedded costs, you don’t need to worry about making payments to cover them, and you won’t see them on your statement. However, you can view your portfolio’s current MER on a Fund Facts document, which you can find on our ‘Investors Information’ page. When you go to review the Fund Facts document remember, as an ATB Prosper client, you are invested in Series A of the Compass Portfolio Series. You will receive a Fund Facts document upon account opening and it will be accessible before every subsequent trade placed through atbprosper.com or the mobile app.

Do the people who manage my investments receive a commission?

No. While the “trailing commission” that comprises part of the MER for ATB Prosper investments is paid to ATB Securities Inc. , all ATB Prosper advisors are salaried and their compensation is not based on investment activity performed on your behalf. Read more on the difference between fees and commissions.

No matter where you are in your investing journey, our licensed ATB Prosper Financial Advisors are always happy to answer your questions and help you to make decisions that will bring you closer to your goals. Get in touch with us by calling 1-855-541-4387 or emailing prosper@atb.com

 

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