Press Release: Steadyhand Announces Fee Increases

Vancouver, October 28 – Steadyhand Investment Management Ltd. announced fee increases on four mutual funds to offset Harmonized Sales Tax (HST) costs.

The company explained that mutual fund companies are required to charge the new tax on the management fees and operating expenses since HST implementation. Previously, the GST applied to management fees while Provincial Sales Tax exempted fund expenses.

Steadyhand’s business model was uniquely affected: its fixed "One Simple Fee" covers all operating expenses, including taxes. The firm absorbed HST costs since July 1, 2010, while maintaining stable expense ratios as competitors raised theirs.

Effective January 1, 2012, the Income Fund fee increased from 1.00% to 1.04%, and the Equity Fund rose from 1.35% to 1.42%. The Global Equity and Small-Cap Equity Funds increased from 1.70% to 1.78%. Steadyhand would continue absorbing the Savings Fund’s HST costs.

The announcement noted that clients who entrust more assets with the company benefit from a fee rebate program, including reductions for consolidated assets exceeding $100,000 and investors with five-plus years of tenure. The firm asserted its adjusted fees remained below industry averages.