Total Cost Reporting

What is Total Cost Reporting (TCR)?

What’s changing for investors?

Before: The following information has been provided to you by your dealer:

• Annual investment performance report – a summary of your account’s investment performance, showing gains or losses over specific periods of time.
• Annual Report on Charges and other Compensation - charges and fees that you paid directly to your dealer, including commissions and transaction fees.

After: For an Annual Report on Charges and other Compensation delivered in early 2027, covering the 2026 calendar year, the following information will be added:

• Investment fund expenses, in dollars, as an aggregate amount for all of the investment funds in your account.
• Total annual cost of investing, in dollars, including the direct costs paid to your dealer and investment fund expenses.
• A Fund Expense Ratio (FER): the sum of the Management Expense Ratio (MER) and Trading Expense Ratio (TER), shown as a percentage, for each class or series of an investment fund held in your account.

Example: Sample Annual Cost and Compensation Report

Important considerations

• Total picture: While cost is an important part of investing, it should be considered holistically:
  • Who is the portfolio manager? What is their long-term track record?
  • What is the long-term performance of my investment after fees?
  • What value am I getting?
• Fidelity Funds: Fidelity Investments Canada ULC has a large selection of 4- and 5-star rated Morningstar rated Mutual Funds and Exchanged-Traded Funds. These Funds are recognized for their strong risk-adjusted performance after fees.
• Value of Advice: According to a survey of Canadians, 89% of investors who use a financial advisor feel more confident about reaching their financial goals when using their advice. Additionally, 88% of them believe they get a better return on their investments when using a financial advisor.

Source: SIMA Pollara Survey of Canadian Investors