CIBC Securities Inc. - CIBC Mutual Fund fees

Management fee vs. management expense ratio (MER)

You may have heard the terms "management fee" and "management expense ratio" (MER) mentioned in association with mutual funds, and be wondering what the difference is.

  • management fee: the fee paid to the fund's manager for supervising the administration of the fund.
  • management expense ratio (MER): total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by a fund.

Each CIBC Mutual Fund pays its manager, Canadian Imperial Bank of Commerce, a management fee and is also responsible for its own operating expenses. 

Special management fee discount for Simplii Financial™ customers

Customers of Simplii Financial services get an automatic management fee discount when they invest in index mutual funds from CIBC Securities Inc. 

With this special offer, you'll receive a management fee discount of 10 basis points to give you an opportunity to increase your long-term investment return. The special management fee discount is calculated as follows:

  • calculated daily, paid quarterly
  • based on closing market value of the index funds within an account for the previous day
  • paid to the investor's account through a distribution of additional units of the same mutual funds
  • considered income to non-registered account holders and reported on the Statement of Trust Income and T3 tax slips (applicable taxes included)
  • if you sell or transfer all units of the fund, any accrued management fee rebate earned but not yet distributed, will be distributed to the fund and included in the total transaction amount

Important information about CIBC Securities Inc. and CIBC Mutual Funds

* CIBC Mutual Funds and the CIBC Index Portfolio Rebalancing Service are offered by CIBC Securities Inc., a wholly-owned subsidiary of CIBC. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service such as the CIBC Index Portfolio Rebalancing Service. Read the CIBC Mutual Funds prospectus before investing. To obtain a copy, call 1-888-723-8881Opens your phone app. and select the mutual fund option, or ask to speak to a CIBC Securities Inc. Mutual Fund Representative. For periods greater than one year, the indicated rates of return are the average annual compound total returns as of the date indicated and all returns include changes in unit value and the reinvestment of all distributions and do not take into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would have reduced returns. The performance data for money market funds also shows the current yield and effective yield as of the date indicated and assumes the reinvestment of distributions only and does not take into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would have reduced yields. Neither CIBC Mutual Funds nor the CIBC Index Portfolio Rebalancing Service are covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, nor are they guaranteed by CIBC. There can be no assurance that funds will be able to maintain their net asset value per security at a constant amount or that the full amount of your investment will be returned to you. The values of many mutual funds, such as Income and Growth Funds, can change frequently. Past performance may not be repeated. The CIBC Index Portfolio Rebalancing Service is an asset allocation service available through CIBC Securities Inc. The portfolio manager is CIBC Global Asset Management Inc. The core asset mixes in each Strategic Asset Manager (SAM) portfolio have been recommended by CIBC Global Asset Management Inc. The management fee rebate for CIBC Index Funds is provided by the Canadian Imperial Bank of Commerce as the manager of the funds.

The difference between the management fee otherwise chargeable and the reduced fee payable will be distributed by the Fund to eligible unitholders (a “Management Fee Distribution”). The amount of the Management Fee Distribution is automatically invested in additional units of the applicable class of units of the Fund. Management Fee Distributions received in non-registered accounts may be taxable. A Management Fee Distribution results in a distribution of additional income, capital gains and capital to an investor. The investor will receive a T3 slip with Management Fee Distribution included in the appropriate boxes. You should discuss Management Fee Distributions with your tax advisor so that you are fully aware of the tax implications for your particular situation.

CIBC Mutual Funds and the CIBC Index Portfolio Rebalancing Service are available across Canada (excluding Quebec). The information contained on this site does not constitute an offer or solicitation to buy or sell any investment fund, security or other product, service or information to any resident of Quebec, the U.S. or the U.K. or to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot legally be made or to any person to whom it is unlawful to make an offer or solicitation. 

The information on this site is not intended to provide specific financial, investment, tax, legal or accounting advice for you, and should not be relied upon in that regard. You should not act or rely on the information without seeking the advice of a professional.

"Standard & Poor's®", "S&P®", "S&P 500®", and "Standard & Poor's 500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Canadian Imperial Bank of Commerce. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Product.

The S&P 500® Index is an index that is intended to represent the U.S. equity market. It includes 500 stocks representing all major industries in the United States.

Nasdaq® is a trademark of The NASDAQ Stock Market Inc., (which, with its affiliates, are the "Corporations") and is licensed for use by CIBC Securities Inc. CIBC Nasdaq Index Fund (the "Fund") has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund.

"Wilshire" and "Wilshire 5000 Total Market IndexSM" are service marks of Wilshire Associates Incorporated and have been licensed for use for certain purposes by CIBC. CIBC U.S. Broad Market Index Fund, based on the Wilshire 5000 Total Market IndexSM, is not sponsored, endorsed, sold, or promoted by Wilshire and it makes no representation regarding the advisability of investing in such product.

The MSCI indexes are the exclusive property of Morgan Stanley Capital International Inc. ("MSCI"). MSCI and the MSCI index names are service marks of MSCI or its affiliates and have been licensed for use for certain purposes by CIBC. The Fund is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to the Fund. The prospectus contains a more detailed description of the limited relationship MSCI has with CIBC and the Fund. No purchaser, seller or holder of any Fund, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting MSCI to determine whether MSCI's permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI. 


“Simplii Financial” is a division of CIBC. Banking services are not available in Quebec.

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