Frequently Asked Questions
Before Becoming an Investment Client
Mutual funds provided through FundEX Investments Inc.
Tel: 905-389-3534 Fax: 905-389-0345 Email: firstname.lastname@example.org
© 2020 Abbington Financial Group. Abbington is a registered trademark of Jeffrey Sindall, Abbington Financial Group.
Existing clients please also see our Client Guide.
1) What is the Minimum Investment Requirement?
The minimum mutual fund investment requirement per household is based on 1) marital status, and 2) the client’s attained age because this affects the client’s changing investment objective.
Single Couple* *for couples use the age of the older spouse.
Up to: age 40 $100,000 $150,000 (from age 40 to 50, add $5,000 per year)
age 50 $150,000 $200,000 (from age 50 to 70, add $10,000 per year)
age 55 $200,000 $250,000
age 60 $250,000 $300,000
age 65 $300,000 $350,000
age 70+ $350,000 $400,000
At Abbington Investments our clients never pay an up-front commission to invest in mutual funds. Your investment is used to purchase mutual fund units without any sales charge, whether up-front or deferred (except for low value accounts - see next paragraph). This is often called “no load” and there is no holding time commitment.
Low Value Accounts: Only if the initial household investment is less than $150,000 then either the first $25,000 must be invested in “deferred sales charge” (DSC) units (with a 7 year commitment) or the first $50,000 must be invested in “low sales charge” (LSC) units (with a 3 year commitment). As the DSC or LSC units become available without deferred charges, they will be switched to "Series F" units if better for the client. When opening more than one account, the DSC or LSC purchase is always placed in the account with the longer time horizon (for example, your RRSP). This makes it much less likely for you to ever pay a deferred sale charge.
The purpose of the DSC or LSC purchase requirement is to allow the Advisor, on a lower value account, to receive an initial sales commission from the mutual fund company in consideration for the Advisor’s time and expertise in assisting the client(s) and opening the account(s). The mutual fund company incurs a debt to pay the Advisor, then gradually recoups their debt through the mutual fund management fee during the commitment period. The DSC or LSC schedule declines each year as the mutual fund company’s debt is reduced to zero. For details please review the “Fund Facts” document for each mutual fund being purchased and ask your Advisor any questions.
Accounts for children, such as RESP, RDSP, and ITF (In Trust For), are not included to meet the minimum initial investment requirement. ITF accounts do qualify for each household's tiered dealer service fee schedule (see below).
2) What is the Mutual Fund “Dealer Service Fee” for Abbington Investments?
At Abbington Investments we offer a Tiered “Dealer Service Fee”. As your household’s combined mutual fund account balances increase, the service fee rate decreases. It’s like getting an automatic “volume discount” as the value of your household’s mutual fund investments increase.