There is a lot of discussion within the market place about the costs associated with Mutual Funds and how your advisor gets paid. Hopefully this explains how a typical retail Mutual Fund in Canada with a MER (management expense ratio) of 2.5% is calculated in accordance with the Canadian regulations that are in effect at this time.
The attachement provide by CI Investments, shows standard practice for all retail or "A" class funds. Some funds have higher MER's and some have lower, but the concept applies equally to any fund company in Canada.
Please let me know if you have any questions.