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We've Cut Our MERs!





FAQs

Q. Which segregated fund management expense ratios (MERs) are changing?

A. The funds with MER changes are as follows:

FUND MER (%)
Money Market 1.50
Canadian Bond Fund 2.50
Asset Allocation Fund 2.90
EL Acuity Canadian Balanced Fund 3.25
El Trimark Global Balanced Fund 3.35
EL Acuity Diversified Income Fund 3.40
EL Dynamic Value Balanced Fund 3.20
EL Mackenzie Saxon Balanced Fund 3.15
EL Mackenzie Founders Income & Growth Fund 3.45
EL Trimark Income Growth Fund 3.40
EL Active Balanced ETF Portfolio Fund 2.45
Canadian Stock Fund (MB) 2.90
EL Acuity Pure Canadian Equity 3.25
EL Templeton Growth Fund 3.40
EL Trimark Europlus Fund 3.70
EL Mackenzie Universal U.S. Emerging Growth Fund 3.65

Q. When do these MER changes take effect?

A. Tuesday, November 1, 2011.


Q. Why has the MER changed?

A. By re-assessing the MERs, Equitable Life aims to optimize the return for clients. Equitable Life has modified the MERs on the list of funds above to better align with the average MER by asset class of similar product across the segregated fund industry.


Q. Which Equitable Life segregated fund contracts do these MER changes apply to?

A. The contracts that the MER changes apply to are:


Q. How does this impact unit values for existing clients?

A. MERs are calculated as a percentage of each fund's assets. The MER is published as an annual figure, but paid throughout the year on a daily basis as reflected within the daily fund price (Net Asset Value Per Share) to account for ongoing costs. The daily fund prices that are impacted are any assets for the funds listed above within Pivotal Solutions, Pivotal Solutions DSC, and Personal Investment Portfolio (PIP). By reducing the MER, this reduces the costs charged to the NAVPS, which increases the value of each unit held by each investor for the fund listed above within the specified products, effective November 1, 2011.


Q. What point of sale or marketing material has changed?

A. We have updated the following marketing items: