MD Funds Management Inc. plans to change to the way operating expenses are charged to the MD familay funds, the company said Friday.

Effective September 30, the company will charge a fixed administrative fee based on a percentage of assets under management.

Previously, operating expenses relating to the funds were based on actual costs and allocated on a pro-rata basis to each fund.

“The new approach makes the fees more predictable for investors while adhering to MDFM’s highly competitive pricing policy,” the company says.

The rate of the annual administrative fee for each fund is set out below:

• MD Money Fund, 0.05%;
• MD Bond Fund, 0.07%;
• MD Bond and Mortgage Fund, 0.07%;
• MD Balanced Fund, 0.13%;
• MD Dividend Fund, 0.13%;
• MD Income and Growth Fund, 0.15%;
• MD Equity Fund, 0.15%;
• MD Select Fund, 0.15%;
• MD American Value Fund, 0.15%;
• MD American Growth Fund, 0.15%;
• MD Growth Ltd, 0.20%;
• MD International Value Fund, 0.20%; and
• MD International Growth Fund, 0.20%.

IE