Fees
Superior portfolio performance is essential to long-term investment success, but it can be quickly eroded by fees and other costs, including taxes.
Milestone is focused on maximizing value for our clients by minimizing portfolio management costs so you can preserve and build your wealth.
The impact of fees on portfolio value is especially significant when compounded over many years. Consider this:
Every extra 1% you pay annually in fees on a $1-million portfolio represents an opportunity cost of more than $280,000 over 25 years (net of inflation). With the average management expense ratio of 2-3% in Canada and other costs such as commissions, trailer fees on mutual funds, custodial fees and transaction costs, some investors pay 3-4% or more in total fees on an annual basis. At these rates, and after taxes and the impact of inflation, it is difficult to see how investors can grow their real wealth over time.
The impact of fees on portfolio value is especially significant when compounded over many years. Consider this:
Every extra 1% you pay annually in fees on a $1-million portfolio represents an opportunity cost of more than $280,000 over 25 years (net of inflation). With the average management expense ratio of 2-3% in Canada and other costs such as commissions, trailer fees on mutual funds, custodial fees and transaction costs, some investors pay 3-4% or more in total fees on an annual basis. At these rates, and after taxes and the impact of inflation, it is difficult to see how investors can grow their real wealth over time.
At Milestone, we minimize portfolio management costs by:
Structuring portfolios into less expensive, high-quality alternatives to traditional mutual funds
Employing low-turnover strategies, which help contain transaction costs including commissions and bid/ask spreads
Using a reputable custodian who does not charge standard custodial fees
Keeping our own management fees among the lowest in the industry.
Our management fees decline with portfolio value in a tiered fee structure (see table below). For taxable accounts, these fees are tax deductible. As part of our commitment to transparency, you will always know what you are paying in fees.
| Portfolio Value | Milestone Fee |
|---|---|
| First $500,000 | 0.98% |
| Next $500,000 | 0.75% |
| Next $1 Million | 0.60% |
| Next $1 Million | 0.40% |
| Next $1 Million | 0.30% |
| Next $3 Million | 0.25% |
| Next $3 Million | 0.15% |
| Over $10 Million | 0.10% |
For a more detailed fee assessment, or cost analysis of your portfolio, please contact us.
