Confused by fund units


– I have noticed that many mutual fund companies now offer various classes of units. Would you describe the advantages and disadvantages of the various types? I have been unable to find much on this topic in the media. – G.S.


– The best source of information on this is the prospectus of the fund company. All these documents are available on-line at

There is no consistency among the fund companies as to what the letters stand for. If you look at the Bissett fund line within Franklin Templeton, for example, the “F” units are no-load and have a lower management fee. They are only sold by fee-only advisors. The “A” units are optional front or back-end load, with a higher MER. They are the ones most commonly offered to the public.

On the other hand, the “A” units of the Mackenzie Cundill funds are the original front-end load units that are no longer being sold. The “C” units are the ones currently for sale, on an optional front or back-end load basis.

The Clarica funds, recently acquired by CI, also have “A” units, but these are only sold on a deferred sales charge (back-end load) sis.

No wonder you’re confused. Anyone would be. – G.P.