The aim of Total Cost Reporting (TCR) is to give you a fuller, easier to understand picture of what your investments cost and how they support your financial goals by putting key cost details on your statement.
TCR is a new standard introduced by Canadian regulators to improve transparency for investors. Previously, it could be difficult for investors to understand the full amount of their fees and how fees related to their investments’ long-term performance as this information wasn’t available in one document or reported in a standardized way.
As of Dec. 31, 2026, your statements will include more details about your investments’ fees and costs, which can help you and your advisor make better informed decisions for your financial future. For example, costs are an important part of how your advisor assesses if your investments continue to meet your needs.
Important: These changes to your statement aren’t adding new fees. They’re making it easier for you to see and understand existing costs.
Understanding your investment costs
With Total Cost Reporting, you’ll see the total cost of investing in both dollar amounts and percentages. This includes a new figure called the Fund Expense Ratio.
What is the Fund Expense Ratio?
The Fund Expense Ratio (FER) is a new calculation you’ll see on your statement beginning in January 2027. To show the total cost of running a fund, FER combines 2 expenses, the Management Expense Ratio (MER) and the Trading Expense Ratio (TER), into 1 clear number.
MER covers the ongoing costs of managing the fund, including:
- Investment management
- Administration and record‑keeping
- Day‑to‑day operations
- Trailing commissions (where applicable)
- Applicable taxes
- For segregated funds, insurance costs related to guarantees
TER reflects the costs of buying and selling investments within the fund, such as trading commissions.
Together, MER and TER give you the complete picture of the cost of managing and operating a fund. These costs aren’t new. They’ve always been a part of your investment.
What you’ll see on your statement
Beginning Dec. 31, 2026, your annual statement will include:
- The FER for each fund you held during the statement period
- The dollar amount you paid in fund expenses over the reporting period
- Clear explanations of fees and charges
- For segregated fund contracts, additional information related to guarantees, policy performance and other insurance elements
Your advisor will review this information with you and explain how it fits into your overall financial picture.
Transparency that supports better decisions
Clear information helps you feel confident about your investments.
By understanding your costs, you can:
- Make more informed decisions about your portfolio
- See how fees impact your net returns
- Keep your strategy aligned with your long‑term goals
Transparency isn’t just about numbers; it’s about understanding how each part of your investment strategy works together.
Total Cost Reporting is a chance for you to work with your advisor to strengthen your financial plan, making sure every dollar you invest helps move you closer to your financial goals.