Desjardins Group RRSP

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Yasehtor
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Desjardins Group RRSP

Post by Yasehtor »

I have a group RRSP from a previous employer that is now with Desjardins. It used to be with Great West LIfe and I found there statements and online site easy to use and providing all the information I needed. However, with the recent change I am surprised at the limited info available from Desjardins. I was looking at my statement and see that the number of units i held went down slightly even though I have made not withdrawals from the plan. After spending 30 minutes on the phone with them and dealing with two individuals I was able to determine that a portion of fees was deducted from my account; essentially they sell some of my units in order to pay some fees. I don't have any issue with paying these fees. It is a bit odd it is done this way as it was embedded in the the unit price at GWL, but fees are fees and they have to get paid. My issue is that the statement does not show this as a transaction at all. It merely shows opening and closing unit amounts and I can see how much it was reduced but it doesn't show any transaction for it. I track my investments in Quicken and without this info its not possible to keep the information accurate. I have written to Desjardins by email and after two weeks am waiting for reply. I got a call from there survey group asking about my experience but am still waiting to hear a reply on my issue.

What I am wondering is whether anyone else deals with Desjardins and if they are having similar issues. When I called they eventually admitted they had received complaints from members of my group RRSP but they didn't appear to have any answers. Telling me it should show on my statement when in fact it isn't or that the fees are really low and that I am getting a good price or that overall my funds have increased in value really doesn't cut it.
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kcowan
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Re: Desjardins Group RRSP

Post by kcowan »

Hiding fees has been a long-standing tradition by FIs in Canada. One of the most egregious is hiding FX Fees in exchange rates.

CRM2 is supposed to fix this in investment accounts. I would send a letter to the highest executive you can find asking why they have not implemented it in your RRSP.
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ig17
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Re: Desjardins Group RRSP

Post by ig17 »

Yasehtor wrote: 21 May 2017 09:12 I have a group RRSP from a previous employer that is now with Desjardins.
Why did you keep the plan? You should be able to move it to a discount broker without any penalties, because you are no longer with that employer.

Also, check the fine print. Does your account still qualify as a group plan account? It's possible that it doesn't because you left the employer. If that is the case, you are likely paying higher fees than the group plan members. That should give you a strong incentive to move to a discount broker.
Yasehtor
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Re: Desjardins Group RRSP

Post by Yasehtor »

I kept the plan because it has management fees that are better for the same fund with a discount broker. For instance the total fee for the Beutel Goodman Fundamental Canadian Equity fund in the plan is 0.43% With a discount broker the fee would be 1.13%. It does have some funds I like from managers like Beutel Goodman and Mawer. I use in in conjunction with my RRSP held at with a discount broker.
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AltaRed
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Re: Desjardins Group RRSP

Post by AltaRed »

The plan administration fee is added on top of the 0.43%. That is why some units were sold (to pay for that fee). That said, that plan fee must be disclosed to plan participants... and will be in the plan administration documentation somewhere.
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Yasehtor
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Re: Desjardins Group RRSP

Post by Yasehtor »

I took a look at my statement and the 0.43% fee is the total fee. It includes the Annual Management, Investment and Operating fees. As noted the fees may, depending on the case, be withdrawn before or after calculation of the unit value.

As discussed with the Desjardins representative a portion of the fees is deducted after the net unit value calculation and thus the units are reduced. I understand that but my issue is that they should be showing the transactions on my statement for the fees that are deducted in units. Simply show me the units reduced, the date, the unit value and the total dollar amount of the transaction. All I see is that I had an opening number of units and then a closing number of units. Any company should show all the transactions that affect the number of units, purchases, dispositions, transfers, and in this case fees.
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