A fund code is an
alphanumeric string assigned to all
mutual funds (in
Canada, at least) to identify them for the purpose of entering trades. Many times the fund's name is not specific enough - as each mutual fund with normally have several different
commission options, or it may be ambiguous - for instance, a company may have several different equity funds, or it may just be too long to enter. A short fund code makes entering easier and reduces errors.
Each company is assigned a three or four letter code, usually something close to their name. For example, Mackenzie Financial Corporation is MFC, and Fidelity is FID. Sometimes they make no sense, as in the case of B2B Trust, whose code is NATC for an obscure reason three name changes back.
Then, each fund (and each commission, or load option for each mutual fund) is assigned a number. Formerly, these numbers were three digits, and most fund codes still are, but the new standard is that up to five digits are allowed. Mackenzie and AIM/Trimark are so far the only companies to take advantage of this, as both companies have a large number of funds.
The final fundcode is the combination of the two, like this: AIC234 for AIC's World Equity Deferred Sales Charge Fund, or MFC298 for Mackenzie's Industrial Short-term Income Front-End Load Fund. Much easier to type.
go back to the Canadian Finance Metanode