FAQ: "Your Annual Costs Report and Our Compensation"

Understanding your investments 

5. Which types of investment funds are included in the cost reporting changes?

The cost reporting changes apply to many common investments, including:

• Mutual funds
• Exchange‑traded funds (ETFs)
• Closed‑end funds and split share funds
• Scholarship plans
• Certain alternative investment funds
• Funds sold using a Canadian prospectus
• Funds purchased on a stock exchange

Foreign investment funds are also included (see Question 7 below).

6. Which investments are not always included?

Certain investment funds are not required to report their cost information to Edward Jones, such as:

• Private investment funds
• Exempt or pooled funds
• Structured products
• Labour‑sponsored investment funds
• Newly established funds that do not yet have enough reporting history to show cost information
• Segregated funds
• Separately managed accounts (SMAs), except for any publicly available investment funds held inside the account

However, any of these funds that did provide cost information to dealers are included in the report. If you would like more information about any investments in these categories or their costs, please speak with your Edward Jones advisor.

7. Are foreign funds included?

Yes, foreign investment funds are included, as long as the fund company makes their cost information available to Canadian dealers. However, foreign investment funds may be reported a little differently than Canadian funds because they follow different rules in their home countries.

As a result, Edward Jones may use the closest available fee information in your cost report.

For example:

• For U.S. mutual funds, we may use the fund’s total annual fee reported in the U.S, even though this fee will often exclude trading costs.
• For some European funds, we may use the ongoing fee information required under European rules

Because the cost information for these foreign funds may not present a true "apples-to-apples" comparison with Canadian investment fund costs, we encourage you to speak with your Edward Jones advisor for more information.

8. How will HISA products display on the Annual Cost Summary for TCR?

High‑interest savings account (HISA) products do not charge a Fund Expense Ratio (FER %). HISAs are deposit products, and their costs are incorporated into the interest rate offered, rather than being charged as a separate fee.

As a result, these products will generally appear in Table 3 without an associated cost and will be labelled “N/A – Data Not Available” or “N/A – Prospectus Exempt.”

Fees and costs 

9. What does it cost to invest with Edward Jones?

Investing isn't a one-size-fits-all endeavor. To learn more about your costs and how we are compensated for financial services, visit Fees and account types | Edward Jones.

10. What is the Trading Expense Ratio (TER)?

The Trading Expense Ratio represents the actual cost of executing trades when portfolio managers buy and sell equities within a mutual fund. Separate from the Management Expense Ratio (MER), TER reflects the operational trading activity necessary to implement the fund's investment strategy and maintain its portfolio composition.

How it's calculated: TER is expressed as an annualized percentage of the fund's daily average net asset value, providing a standardized measure for comparison. The calculation is straightforward:

TER = Total Trading Commissions ÷ Total Assets

Example

A fund holding $100 million in assets that incurs $250,000 in trading commissions over the year would have a TER of 0.25%

Which funds have a TER? TERs typically apply only to equity-focused funds. Fixed income funds generally do not report a separate TER because bond trading costs are already embedded within the security pricing structure.

What drives a fund's TER? Several factors influence trading costs, each reflecting the realities of portfolio management:

• Trading activity: Market conditions, investment strategy complexity, and asset class characteristics all impact the frequency and cost of portfolio adjustments
• Fund flows: Subscription and redemption activity requires corresponding portfolio transactions to maintain target allocations
• Security liquidity: Specialized or emerging market securities often carry higher transaction costs than large-cap domestic equities
• Trading execution quality: Professional trading desks leverage market expertise and relationships to achieve optimal execution

Key considerations for investors:

• TER appears in both Fund Facts documents and regulatory filings.
• Published fund performance already reflects both MER and TER — these costs are deducted before calculating returns
• TER fluctuates year to year based on portfolio management decisions and market conditions
• Balanced funds maintaining diversified equity and fixed income allocations typically demonstrate lower TERs than concentrated equity portfolios
• Higher TER values generally indicate more active portfolio management approaches

11. What is the Management Expense Ratio (MER)

The Management Expense Ratio is the annual cost for a fund company to manage a mutual fund, expressed as a percentage of the fund's average net asset value. It encompasses three distinct components:

• The management fee paid for the fund team's investment expertise and decision-making
• The fund's operating expenses, which include administration and regulatory compliance
• Applicable taxes

What's important to understand is that this fee is deducted directly from the fund's assets prior to calculating and publishing returns, so the performance figures you review already account for the costs of owning the mutual fund.

Evaluating a fund's MER gives you a meaningful lens through which to assess the cost of professional portfolio management against the value it delivers, including access to diversification, rigorous research, and ongoing investment oversight. Your financial advisor is well-positioned to help you interpret MER in the context of your overall investment strategy and the long-term goals you're working toward together.

12. What is the role of Edward Jones under the new cost reporting rules?

Edward Jones is responsible for collecting fund information provided by fund companies and updating your Annual Cost Report to provide a more complete view of your total investment costs — including fees embedded in your investment funds. These enhancements are guided by regulatory requirements set by the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO).

Beyond simply reporting the numbers, we believe transparency leads to better conversations and better decisions. Speak with a Financial Advisor to review your investment portfolio and help ensure your investments continue to align with your life goals. 

13. What is the role of Investment fund companies under the new cost reporting rules?

Investment fund companies are responsible for calculating how much it costs for clients to own their funds. This information includes:

• The dollar cost of the fund (for example, how much it costs per unit or share)
• The fund’s annual fee percentage

Edward Jones then uses this information to calculate the actual dollar cost for your investments over the year, based on how much you own and how long you held it.

This information is included in your annual cost report so you can clearly see:

• How much your fund investments cost you in dollars, and
• The percentage fees charged by each fund

Simply put, the fund company provides the cost information, and Edward Jones uses it to prepare the cost details shown in your annual report.

14. Will my fund-by-fund fee percentage (the FER %) be personalized for me?

No. The fund-by-fund fee percentage shown in Table 5 of your report is based on the standard fee for the fund you own. It does not take into account any special rebates, discounts, or fee reductions you may receive from the fund company.

Total cost reporting is designed to help you see consistent, easy‑to‑compare fee information, while still allowing you to review your actual rebates and net costs elsewhere. For more information, details about any rebates or reductions can be found in your regular account statements.

Here’s what that means for you:

• The fee percentage shown is a general fund‑level fee, not customized to your account.
• If you receive fee rebates or waivers, these are not reflected in the percentage shown.
• Any rebates or fee reductions you receive are shown separately in your account statements, in dollar amounts.

15. Are the costs shown tax-deductible? How does this relate to my tax reporting?

The fees you pay on select non-registered fee-based accounts, as noted in Table 1, may be eligible for tax deductions and/or may be tax-deductible. To determine your eligibility, retain your copy of “Your Annual Costs and Our Compensation” report for tax filing time. To learn more, please contact your accountant or visit canada.ca

For more information, see the current version of the Schedule of Fees (PDF).

Performance and value 

16. Will performance information still be included?

Yes. Information about how your investments are performing can be found on page 2 of your monthly statements under the heading, Your Personal Rate of Return. In addition, your annual performance is provided in a year-end report, just before the cost report.

While the main goal of the annual cost reporting updates is to clearly show costs, you may also discuss with your financial advisor how your investments performed, what you’re paying, and the advice or services you receive. This extra context can help you better understand the overall value you’re getting.

Getting help 

Who do I contact with questions not answered by this FAQ?

If you have additional questions about your enhanced annual cost report and our compensation or would like more information about the regulatory requirements, please speak with a financial advisor.