The effect of governance mechanism and structure on fees and performance of Mutual Funds in Canada

Taking advantage of the unique Canadian setting, this study empirically analyzes the impact of presence of the board of directors, as an internal governance mechanism, on fees and performance of mutual funds. Further, the impact of the board structure on fees and performance of corporate class funds is analyzed. We find that corporate class funds, which have a separate board of directors for the fund, charge higher fees; however, they also provide superior performance than trust funds. Furthermore, we find that for corporate class funds, smaller board, with higher percentage of independent directors, and with the fund CEO acting as the chairman of the board is likely to charge lower fees. Also, more independent boards are strongly associated with superior fee-adjusted performance.

Voucher from the Engineer Department of Port Dalhousie and Thorold Railway Extension to Francis A. Doyle for fees at the Fonthill Registry Office (copy), July 28, 1857

Voucher from the Engineer Department of Port Dalhousie and Thorold Railway Extension to Francis A. Doyle for fees at the Fonthill Registry Office (copy), July 28, 1857.

By-laws of the municipal council of the United Counties of Lincoln and Welland, 1852

By-laws included are numbers 31-34 and deal with school issues, raising funds for the municipality, payment of fees, and remuneration to the sheriff of the municipality.

Burgoyne Centre for Entrepreneurship fonds

An Entrepreneurship Centre was established at Brock University in 1988 as a joint venture between the University and the City of St. Catharines. In Januaray 1989, a generous donation was made to the Centre by the Burgoyne family, proprietors of the St. Catharines Standard. The Centre subsequently became known as the Burgoyne Centre for Entrepreneurship (BCE). The Centre’s mission was to “promote excellence in research, education and training for entrepreneur development and new venture creation”. To achieve this objective, it was necessary for the BCE to become a community focal point and serve as a link between academic, private and government sectors in the Niagara Region that were involved in entrepreneurial activities. This was primarily done with the provision of educational programs offered through cooperating organizations. Funding for the Centre came from multiple sources, including fees for services and contract research, endowments and grants, as well as Brock University. An Advisory Council, composed of local prominent businesspeople and chaired by Henry Burgoyne, assisted the Centre with promotion and fundraising. The partnerships established by the BCE with other community bodies such as the Lincoln County Board of Education and the Niagara Region Development Corporation resulted in important collaborative community initiatives such as the Niagara Enterprise Agency and the New Enterprise Store. Such collaborations increased the Centre’s profile without duplicating or competing with services offered by existing agencies. The BCE was also instrumental in establishing an entrepreneurship curriculum for secondary school students, and collaborated with the Faculty of Education at Brock University to offer an Ontario Secondary School Entrepreneurship Specialist Teaching Certificate Program to teachers. As the BCE became more prolific in the community, and the iniatives it fostered in the community began to thrive, the Centre’s leadership required the authority to make instantaneous decisions. This was at odds with the hierarchical structure of the University, to which the BCE was accountable. Ultimately, this situation led to the demise of the Centre. The university focused its efforts on academic research and undergraduate courses, while the community partners took responsibility for any joint programs.

Sullivan Agent Confesses, [1948]

The National Seaman’s Association was a labour recruiter hiding behind a union-like name. It was run by H.N. McMaster who collected fees from companies and dues from workers. With McMaster in charge, shipping interests could claim that their seamen had a union, but ship-owners were free to push their vessels and their workers to the breaking point. In 1935, the members on the Great Lakes decided to strike. One year later, they created their own union and amalgamated with a Montreal-based independent body to create the Canadian Seamen’s Union headed by a ship’s cook who became a union leader, John Allan Patrick “Pat” Sullivan. By the late 1940s, almost all sailors on Canadian ships were CSU members. Right from its inception in 1936, Communists were prominent among the leaders of the union. Sullivan had been recruited to the Communist party that year and the union had a close rapport with the party. On June 8, 1940, Pat Sullivan was arrested because of his affiliation with the Communist party. He was incarcerated until March 20, 1942. No charges were laid, no bail was set and there was no trial. After his release, Sullivan was elected second vice-president of the Trades and Labour Congress of Canada. In 1943, Percy Bengough was elected as president and Sullivan was elected as secretary treasurer of the TLC while maintaining his role as president of the CSU. On March 14, 1947 Sullivan made a shocking announcement that he was resigning from the CSU and the Labor-Progressive Party. He claimed that the CSU was under the full control of the Communists. Within a month of this announcement, he emerged as the president of the Canadian Lake Seamen’s Union. Ship-owners never really reconciled themselves to having their industry unionized, and in 1946 there was a seamen’s strike in which the union won the eight-hour day. In 1949, the shipping companies had a plan to get rid of the union and were negotiating behind their back with the Seafarers International Union (SIU). In a brutal confrontation, led by Hal Banks, an American ex-convict, the SIU was able to roust the CSU and take over the bargaining rights of Canadian seamen. On July 15, 1948, Robert Lindsay, who was Sullivan’s Welland business agent said that to the best of his knowledge, Sullivan’s outfit, the CLSU, was under the control of some of the Steamship Companies. Lindsay had heard that there was a movement to get rid of Bengough of the Trades and Labour Congress as well as elements of the CSU. He also had heard that the CLSU wanted to affiliate with the American Federation of Labor. Lindsay’s allegations raised the questions: Were the ship-owners powerful enough to oust Percy Bengough because he supported the seamen? Could the CLSU get an affiliation with the American Federation of Labor? and Would the American Federation of Labor actually affiliate with a union that was siding with employers against a locked-out union?

Niagara Falls Seminary [school for young Ladies] advertisement, ca. 1840

One broadside advertising the Niagara Falls Seminary [school for young Ladies], run by Mrs. Shotter of Drummondville, ca. 1840. The advertisement contains information about fees and courses, including a complete English education, music, French, drawing and flower painting, and dancing. The bottom of the page contains a list of references for Mrs. Shotter, including Ex-Consul Buchanan, Colonel Delatre, Rev. W. Leeming, Rector of Chippawa (all of Drummondville); Dr. Mewburn (Stamford); Rev. T.B. Fuller, Rector of Thorold; John Stayner, Esq., P.M. Queenston; William Gamble, Esq., Milton, near Toronto; and Hon. John Hamilton, Kingston.

ASSESSING THE PERFORMANCE OF EMERGING MARKET MUTUAL FUNDS IN CANADA

Emerging markets have received wide attention from investors around the globe because of their return potential and risk diversification. This research examines the selection and timing performance of Canadian mutual funds which invest in fixed-income and equity securities in emerging markets. We use (un)conditional two- and five-factor benchmark models that accommodate the dynamics of returns in emerging markets. We also adopt the cross-sectional bootstrap methodology to distinguish between ‘skill’ and ‘luck’ for individual funds. All the tests are conducted using a comprehensive data set of bond and equity emerging funds over the period of 1989-2011. The risk-adjusted measures of performance are estimated using the least squares method with the Newey-West adjustment for standard errors that are robust to conditional heteroskedasticity and autocorrelation. The performance statistics of the emerging funds before (after) management-related costs are insignificantly positive (significantly negative). They are sensitive to the chosen benchmark model and conditional information improves selection performance. The timing statistics are largely insignificant throughout the sample period and are not sensitive to the benchmark model. Evidence of timing and selecting abilities is obtained in a small number of funds which is not sensitive to the fees structure. We also find evidence that a majority of individual funds provide zero (very few provide positive) abnormal return before fees and a significantly negative return after fees. At the negative end of the tail of performance distribution, our resampling tests fail to reject the role of bad luck in the poor performance of funds and we conclude that most of them are merely ‘unlucky’.

Niagara Falls Seminary [school for young Ladies] advertisement, ca. 1840

One broadside advertising the Niagara Falls Seminary [school for young Ladies], run by Mrs. Shotter of Drummondville, ca. 1840. The advertisement contains information about fees and courses, including a complete English education, music, French, drawing and flower painting, and dancing. The bottom of the page contains a list of references for Mrs. Shotter, including Ex-Consul Buchanan, Colonel Delatre, Rev. W. Leeming, Rector of Chippawa (all of Drummondville); Dr. Mewburn (Stamford); Rev. T.B. Fuller, Rector of Thorold; John Stayner, Esq., P.M. Queenston; William Gamble, Esq., Milton, near Toronto; and Hon. John Hamilton, Kingston.

Copyright in the Stacks: The Chilling Effects of Unclear Copyright Interpretations in the Canadian Academic Library

Presented at the Annual Conference of the Canadian Political Science Association, Brock University, St. Catharines, Ontario, May 27, 2014

Receipt for Summer Term Upper Canada College

Receipt for the summer term at Upper Canada College. The term runs from April 21st to June 30th. Fees paid by H.K. Woodruff, 1878.

Letter to Mr. Thomas Bell from S.D. Woodruff

Letter to Mr. Thomas Bell from S.D. Woodruff concerning the claim of Mr. James Clement. Mr. Woodruff trusts that Mr. Bell has the application made for the patent. He encloses $10 to cover the fees. He states that he has authorized Mr. Thomas Steers to prosecute the claim, July 16, 1849.

Letter to S.D. Woodruff

Letter which is postmarked Buffalo, April 15 and Queenston, April 15 and is addressed to S.D. Woodruff. This letter instructs Mr. Woodruff to send his fees in care of Thompson and Co. The signature is illegible, April 13, 1846.

Explanation of the Land Surrendered to the Crown by the Six Nations Indians for Mr. Dickson

Explanation of the Land Surrendered to the Crown by the Six Nations Indians for Mr. Dickson: 1 handwritten page explaining the Six Nations surrender of land to the Crown in order to allow the Crown to transfer the land to Mr. Dickson to compensate him for legal fees. [This is not an older document. It was possibly written by the Niagara Historical Society], n.d.