What is the primary reason an investor might choose a Series F mutual fund over a Series A mutual fund for their segregated funds within an advisor-managed account?

Question: What is the primary reason an investor might choose a Series F mutual fund over a Series A mutual fund for their segregated funds within an advisor-managed account?

Answer options: ✅ Series F funds have lower management fees because they do not include embedded advisor compensation.

• Series F funds offer guaranteed returns, unlike Series A funds.
• Series F funds are only available to institutional investors.
• Series F funds are always no-load funds, whereas Series A funds always have loads.

Correct answer: Series F funds have lower management fees because they do not include embedded advisor compensation.

Explanation: Series F funds are designed for fee-based accounts where the advisor charges a separate, transparent fee for their services. As such, the management expense ratio (MER) of a Series F fund is typically lower than a Series A fund because it does not include an embedded trailing commission to compensate the advisor.