RBC Buys Phillips, Hager & North (CRIES)
- February 21, 2008 by Fox | Comments: 6
I want to cry. I want to scream. Royal Bank of Canada (RBC) just bought Phillips, Hagar & North (PH&N), the company where I invest my retirement account.
I moved my account to PH&N several years ago to take full advantage of PH&N’s LOW LOW LOW mutual funds fees. Keeping fees low is very important to me. This news strikes terror into my heart and my account, here are my fears:
- The new RBC/PH&N will raise mutual fund fees.
- Current PH&N funds will be deprecated and unit holders moved or sold into higher MER funds.
- Unit holders will be convinced to move their investments to RBC’s more expensive offerings.
- The awesome level of customer service I received every time I called PH&N will be no more. I HATE how big bad banks make me go through endless phone list options until I speak to someone (usually more clueless than I). Also, PH&N’s customer service was always outstanding, helpful, and knowledgeable.
- The transparency PH&N boasted will be no more.
Quoted from the Phillips, Hagar & North announcement: (source)
We are proud to announce that PH&N is joining forces with RBC Asset Management. While this will open doors to many opportunities for our clients over time, it’s business as usual for our firm, our clients and our employees. The same PH&N people are in place, and there is no change to our funds, our fees or our investment approach.
Anyone else out there affected by this? Will you keep your investments with PH&N?
I need a drink.
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Comments:
Yup, it’s stressing me out too. Might be time to start looking at those EFTs you keep talking about
Hi Annie! It’s good to know I’m not the only one out there dismayed with this news. My RRSP is diversified right now with PH&N and Index Funds. One method I am considering is taking future dividends from PH&N and move them to an index/ETF approach rather than reinvest them back into PH&N. Sigh. I really loved PH&N.
Today I recieved my first quarter report and made me think again about checking out the web chatter on this topic. When i first heard it did cause me GREAT concern. It still does. I am keeping a watchful eye. Stumbled on your blog in that search.
MERs and fees connected with funds are my primary concern. Watching any ‘consolidation’ of funds is something I am watching for as well.
One item I am seeking out is what PH&N staff changes are occuring post this aquistion by RBC. If i find evidence of large percentage of former staff leaving the new company with their feet - then that will be a marker for me.
Saw a wisper of that in a National Post article from Feb but i chalked it up to rumour.
Have you found any evidence of that.
Heard through the grapevine that PH&N staff have to stay for six years after the merger otherwise they lose their PH and N investments.
I was thinking of pulling out of PHN anyways. All the great investors that PHN name stands for are all but gone. The funds are so large that they look almost like ETF’s anyways except with higher fee’s.
To be honest i am likely to buy into Steadyhand funds. I have lower cost funds (MERs under 1%) via work pension plan and Steadyhand offers funds like the small cap fund which focus on longer term growth areas. Plus Bradley is a former PHN boss so what more can you ask for?
I doubt PHN will change much (Risk losing too many customers and RBC isn’t that stupid…), but perhaps this is just telling us that it was already changing.
DH
@Wil Robins I’m keeping my ear to the ground on this as well. I haven’t heard anything newsworthy as of yet. I too fear increases in MERs and Fees. I think RBC is quite aware that PH&N clients are likely to be well educated in how fees impact returns.I have a hunch they won’t want to upset the apple cart any time soon. We’ll see.
@Derek I too have looked into Bradley’s Steadyhand funds. I also follow his blog. I think if I move from PH&N it will be to invest in more ETFs. Steadyhand’s MERs are (generally) higher than PH&N.