New reporting coming in early 2027 delivers an even more detailed view of how your portfolio engine is “humming”

You don't need a mechanic to know when your car is running well. But understanding what's going on under the hood can help you understand how best to care for your vehicle to ensure it keeps humming along for the long haul.

The same is true for your portfolio. Starting in early 2027, the Canadian investment industry is evolving to provide every investor enhanced reporting that will help support their unique investment journey. This new report gives you greater detail and insight into the specific costs you pay to keep your portfolio engine running smoothly.

Importantly, this evolution is about getting an even deeper view of how your portfolio is performing – its assets, their results and associated costs. And this doesn't just satisfy curiosity – the new reporting can also help you and your Investment Counsellor make better portfolio management decisions together, distinguishing which assets drive your performance, and whether any associated costs are justified given your portfolio’s specific assets’ results.

Engine diagnostics tool upgrade: what’s changing with total cost reporting

Once upon a time, mechanics used their eyes and ears, and experience to diagnose engine problems. Nowadays, they run computer diagnostics, producing a detailed report of the issues, what needs to be taken care of, and its associated costs. For clients, the result is more transparent, verifiable and helpful.  

Your new report will arrive in early 2027 and will cover your investment activities in 2026. Think of the new report as your car’s inspection report – a complete diagnostic that gives you a full picture of everything that happened under the hood during the past year.

Less “mech-tech” lingo, more “me-friendly” info

Your total cost reporting is getting plainer, less technical language. This is designed to make your new report more comprehensible and accessible. Instead of a "Check Engine" light feature, you will get a “dashboard” to help you navigate your investment decisions, including:

• One number for your fund's total costs
  Every investment fund has costs built into it. Those costs cover items like professional management and the ongoing buying and selling of investments inside the fund. In your new report, these costs are combined into a single, easy-to-read figure called the Fund Expense Ratio (FER). Think of it as your engine’s maintenance bill – and it has two components: 
• • Management Expense Ratio (MER): The cost of professional management that keeps your engine tuned, running, and ready for the long haul.
  • Trading Expense Ratio (TER): The cost of trading activity inside the fund. This is related to the buying and selling your fund manager does to navigate changing market conditions.
    
    Together, they form your FER – the all-in running cost of your fund's engine.
• From percentages to dollars
  Knowing a fund's cost is 1.85% is like knowing your car's fuel efficiency rating. It's accurate, but some people prefer things in dollars and cents. Seeing that the cost of your $30,000 mutual fund investment was $555 last year is like looking at your actual gas station receipt. It's a real-world number – direct and clear.
• Everything in one place
  Your new report will show what you compensate your counsellor and the firm (which you get now), alongside the costs built into your funds. It’s the consolidated picture of what you're paying, bumper to bumper.

A well-oiled machine: why the total cost reporting evolution is a good thing

When you first see the new total cost number, it might seem higher than what you've seen before. That's completely normal. Your total cost is and was always the same. You're simply seeing the full, itemized receipt – not a new bill, just a more detailed one. This is helpful because:

• It provides more information and insight for you and your Investment Counsellor
  You and your Investment Counsellor can have more meaningful conversations about whether each investment is working for you – is it delivering the value you’re putting into it?
• It shows that working with a pro can pay off
  Few of us would risk tinkering with our car’s engine and components. Instead, we rely on a professional mechanic to ensure the job gets done right, and we remain safe on the journey to our destination.
  
  Research shows that Canadians who work with an Investment Counsellor build significantly more wealth over time. A study by CIRANO found that advised households in Canada have 2.73 times more assets than non-advised households after 15 or more years, and report less financial-related stress. Having comprehensive reporting around your investments can help you make more informed decisions with your Investment Counsellor, and ensure your portfolio is on the right track toward your goals.

Keeping in gear – what’s next

None of the total cost enhancements impact your portfolio, your net returns, nor your plan – instead, they all work together to help ensure a more informed and clearer experience for you as an investor. Nothing is changing, and your new report will arrive with your January 2027 statement. When it does, take a look at your enhanced portfolio and talk to your Investment Counsellor if you have any questions.