Whitefield seeks to provide investors with a cost efficient investment vehicle. To the extent possible Whitefield aims to maintain underlying expenses of operation at approximately 0.35% pa or less of investment assets. This percentage is called the management expense ratio.
Operating and management expenses on managed investment vehicles vary widely. In general, the cost of operating unlisted or listed management investment funds and companies range from 0.15% - 3.00% pa of investments.
The long term benefit of a cost-efficient investment vehicle can be material. Assuming investment returns and other factors are similar, an investment vehicle with an MER 1% pa higher than another will be worth approximatley 20% less in value after 30 years. An investment vehicle with an MER 2%pa higher than another, will be worth approximately 34% less in value after 30 years.