Abstract Mutual fund sponsors differ in their transparencies (public or private), ownerships (mutual or stock), distribution/servicing channels, affiliations, brand reputational values, manager abilities and access to information. We find that performance differences among Canadian fixed-income funds differentiated by sponsor and fund types are mainly driven by cost minimization and to a less extent by managerial abilities. Funds sponsored by Banks exhibit lower fees and superior return performances, on average, over those sponsored by Insurers, Financial cooperatives, and Independents even after controlling for various fund and sponsor characteristics. Higher benchmark-adjusted returns for bank-sponsored funds are consistent with their lower fees and informational advantages, mainly due to their nation-wide, lower-cost distribution/service channels, and their affiliate activities.