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What People Ask Us About Mutual Funds And Other Services

It is very easy to get confused when talking about the increasingly complex world of mutual funds, and lose sight of the basics and what is most important to you: how much does it cost you, how much can you make, what is your risk?

To help you answer these and other commonly asked questions about mutual funds and what you should expect from an Olympian financial advisor.

We have prepared some answers.

• What is a mutual fund?
• What is a segregated fund?
• I have a broker, why do I need you?
• What do I pay for Olympian Financial services?
• How do mutual fund companies make money?
• Why don't I just buy no-load mutual funds from my bank or trust company?
• What does Olympian Financial offer me on an ongoing basis?
• How much can I expect to earn?
• Is past performance important?
• Is my mutual fund investment protected?
• How do I transfer the management of my mutual funds to Olympian Financial?

What is a mutual fund?

A mutual fund is a pool of investments used to buy a large portfolio of securities that will be managed by a professional investment manager. When you buy a share in a mutual fund, you effectively buy a portion of each security held in the fund's portfolio. Mutual funds are popular because they offer diversification and you get professional management/monitoring of all your investments. The types of mutual funds vary:
Some specialize in international stock, international bonds, or country-specific securities
Others focus on specific industries (e.g. financial or health)
Others offer a balanced program

What is a segregated fund?

Segregated funds are very similar to mutual funds with one important difference: they are insurance products whose principal is guaranteed

I have a broker, why do I need you?

Some of our clients have a broker. But if you own mutual funds, what we add is a level of knowledge, analysis and guidance that our clients have not found elsewhere.

What do I pay for Olympian Financial services?

In most cases, nothing. The mutual fund companies pay us commissions for the investments we arrange, and for our ongoing management service. There is no charge for our consultation and investment recommendations to you.

How do mutual fund companies make money?

Every mutual fund charges fees for providing portfolio management expertise. Depending on the fund, this management fee will range from .5% to 2.5% per year. This fee is charged to you whether or not you use a financial advisor. When we recommend a mutual fund as part of an investment strategy, you have two options: 1) front-end load: you are charged a standard commission, or less. This is only recommended for investors who may need the funds within a short time frame. 2) Deferred sales charge: There is no up-front charge. Instead, you may pay a declining redemption fee based on the value of the investment withdrawal and the duration of the time since the investment was purchased. This fee drops to zero within five to seven years. Almost everyone picks this option, as you ultimately pay nothing if your investment is long-term.

Why don't I just buy no-load mutual funds from my bank or my trust company?

Olympian Financial can invest in over in over 3000 available in Canada, including the no-load mutual funds offered by banks and trust companies. When you purchase over-the-counter mutual funds directly from a bank or trust company, you are required to select from the limited number of funds available to that institution, some of which may be poor performers. Once you make the investment, you are responsible for monitoring your own portfolio. At Olympian, we strongly believe in selecting the best performing, lower risk funds available for our clients' portfolios, whatever the source. Invariably this means investing among a wide variety of mutual fund companies and financial institutions, to earn a higher and more consistent rate of return towards your investments.

What does Olympian Financial offer me on an ongoing basis?

In addition to our expertise in evaluating and selecting mutual funds, we monitor your ongoing portfolio by keeping abreast of market trends, fund performance and volatility, management changes and new products. If, and when, your needs change, we will adapt these changes into your fund investment programs.

How much can I expect to earn?

That depends on factors such as the type of investment (bonds, equities, money market instruments), the experience of the mutual fund management team, and your asset allocation.

Is past performance important?

To some level. It is a measure of what happened before, not necessarily a prediction of what the fund will return in the future. One of Olympian's many strengths is in analyzing past performance to see how well a portfolio manager did relative to similar funds, and under various market conditions. That gives us a sense of how the portfolio manager might perform when similar market conditions reoccur. To compare apples to apples, remember that mutual fund performance figures are calculated after all fees and expenses have been deducted from the fund.

Is my mutual fund investment protected?

Unlike the case with GIC'S and term deposits issued by banks and trust companies, there is no insurance to guarantee the safety of the money you have invested in mutual funds. However, industry regulations exist which help safeguard your investments:
The assets in the fund must be held in trust, usually a bank or trust company, where they are protected under banking and trust laws. The company managing the fund is not permitted to receive or hold the securities belonging to your fund.
The assets in the fund belong to the investor, and cannot be used for any other purpose.
All funds must undergo an annual independent financial audit.

How do I transfer the management of my investments mutual funds to Olympian Financial?

Some people are uncomfortable when it comes to changing financial advisors or even just moving their investments out of the bank. Even after recognizing that their current advisor is not doing an effective job of monitoring their funds or providing prudent tax advice, some clients are reluctant to confront their advisor and make a change. Some feel that even though their advisor is doing a poor job, they be loyal to him/her because of the service that has been provided over the years. Others feel that they should not have to explain anything to their former advisor because, after all, it is their money. Whatever your case, an Olympian Financial advisor will make your changeover as seamless as possible. We will complete all of the necessary paperwork and arrangements, so you can feel confident that you are making the right decision.

With world - class research, global capabilities and state of the art technology your Olympian advisor has the knowledge and expertise to help you choose wisely from the best mutual and segregated funds available for your financial portfolio.