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Discussion Starter #1
I recommended the iNG funds to a friend who wants to invest in the markets, but is too lazy to rebalance his own e series couch potato.

This got me thinking:

Does the 1% MER cover everything?

Or:

Does the the 1% MER pay Ing to manage the portfolio, and are there other MER's I.e. Ing buys an ETF which has it's own mer on top of the 1%?

1% seems reasonable for my lazy friend, but if Ing has to pay additional mer on top then the street funds look less attractive.

I am thinking the 1% is all inclusive.

What do you guys know?
 

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The 1% covers the MER of the constituent funds that ING invests in, as well as their expenses. I looked at these in the past for some people I was giving advice to. What's nice is that you can transition from the more aggressive to the more conservative funds without triggering a taxable event (capital gains). I'm not sure if all mutual fund companies can/do do this, but it could be very useful for someone investing in a non-registered account.
 

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The constituent funds are index mutual funds: bond; CDN Equity; US Equity; & International Equity. The 1% is the overall MER. The individual funds, being only index funds, would have slightly lower MERs, but you are paying a bit for the convenience of having ING keep a balanced portfolio for you.

To andrewf: how does ING manage that if the funds are not in a tax-sheltered account? I could see them limiting the capital gains by transferring constituent funds in kind, but if they have to change the asset allocations surely there are capital gains/losses realized?
 

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Discussion Starter #4
I realize streetwise holds index funds. I was wondering if they were ING funds or another fund I.e. Barclays, ishares etc.
 

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I have been reading the Streetwise Prospectus, and it appears they are not actually portfolio funds. Instead the assets of a fund are divided into 4 components, each component following a particular indexing strategy. It appears to be all run by ING or its subsidiaries.
 

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I tested those funds some time ago & and back then, the conservative MF was priced at just over $9 & the aggressive one at $10+; I see that those rates are practically unchanged a year later. IMHO, the 1% MER is not worth for what you get in return.

At the same time as I held those funds with ING, I purchased a BNS fund for $15 a unit and within a year it increased to $17+, however, the MER for this had been 1.9%, but big difference in returns.
 

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Toronto gal: in might be an apples and oranges comparison. Is the BNS fund a globally diversified balanced portfolio? Just a TSX index fund? Actively managed?
 

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Toronto gal: in might be an apples and oranges comparison. Is the BNS fund a globally diversified balanced portfolio? Just a TSX index fund? Actively managed?
You're right Andrewf, I was comparing apples to oranges and a bit out of topic perhaps, but my point had been that you get very little for the 1% MER that ING charges, I just think it is too high for a passive fund like that (don't get me wrong, I like ING for banking).
 

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It's an option for those who don't want to even think about their investments. I agree that the fees are too high for those who like to keep track of these things. There are many who find it boring, frustrating, intimidating, etc. to keep track of all these things.

So, a 1% MER set-it-and-forget-it investment that saves you from giving it to a PFA that will plunk it in some nice 2.5% MER funds that probably will perform no better seems like a reasonable offer.
 

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It's an option for those who don't want to even think about their investments. I agree that the fees are too high for those who like to keep track of these things. There are many who find it boring, frustrating, intimidating, etc. to keep track of all these things.

So, a 1% MER set-it-and-forget-it investment that saves you from giving it to a PFA that will plunk it in some nice 2.5% MER funds that probably will perform no better seems like a reasonable offer.
IMHO, ING Streetwise funds are best for unsophisticated investors.
 
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