Investment Q&A

Typically, anything 'different' in the industry results in higher fees. It does certainly take more work for a manager to run a covered call fund vs an index fund, but we don't think the expense difference should be very large. With much higher yields, however, investors do seem less concerned with fees in general on covered call products. HDIV also uses leverages, which also requires more work and monitoring. With management fees of 0.65%, MER is likely on the high side as the company just completed its first year of operations. MER should come down with assets, but will still be higher than 'regular' funds. Are the fees justified? Probably not. Managing such funds is not rocket science. But investors, for now, do not consider fees to be the driving factor on these funds.