Let's say I spend $1000 = 100 units at $10/unit on a no-commission, no-load index or mutual fund with an MER of 1%. Let's say any distributions are deposited as cash. In one year's time, the fund has not gone up or down. The value of the investment is still at $10/unit.
How exactly is the 1% MER charged? Does my 100 units become 99 units? Or is the price reduced to $9.90 for everyone? Or something else? If so, how often, once a year, more often? And where is this information documented?