Understanding total cost reporting and investment fees

4 minutes

When you view your next annual investment statement, some new information may catch your attention: the total cost reporting (TCR) for your investments. It shows the fees associated with the products you hold. Seeing the numbers presented differently can spark curiosity. And that's a good thing. Here’s why.

What exactly is TCR?

TCR stems from a Canadian regulatory requirement. The goal? To give you a clear overall picture of the fees associated with your investments, expressed in dollars rather than only as percentages.

These changes will appear on annual statements issued in 2027 and will show the costs associated with investments held during the previous year.

And rest assured: TCR does not add any new fees. It simply makes existing costs more visible. They will now be itemized and explained directly on the statements.

Why now?

This change is part of a broader movement toward greater transparency in the financial services industry.

The clearer your understanding of the true cost of your investments, the better equipped you are to make informed decisions and discuss them confidently with your advisor.

What the fees cover

Fees vary depending on the products you hold. They can cover:

  • Investment management
  • Fund administration and operating expenses
  • Distribution of the products
  • The services and advice you receive
  • Certain protections or guarantees associated with the product, where applicable

At Beneva, you can see the TCR information on statements for your segregated funds and your investment accounts.

To put the costs into perspective, it’s important to understand:

  • The product’s features
  • Its performance after fees are deducted
  • The protections or guarantees offered

What matters is understanding what you pay and what you receive in return, based on your needs.

What about the service?

A portion of the fees is used to pay your advisor for:

  • Specialized guidance in your decision-making
  • Advice tailored to your situation
  • Ongoing support over time

Your advisor can explain their compensation to you in detail.

When guidance is worth more than a sale

An advisor's role goes beyond recommending an investment. They first take the time to understand your situation, goals, priorities and risk tolerance. They also help you compare options and choose what best suits your needs.

This guidance adapts as your life evolves. A job change, the purchase of a home, the arrival of a child, or approaching retirement can all change your needs. Your advisor helps you adjust your course along the way.

Your advisor can also:

  • Develop customized strategies that evolve over time
  • Explain how your investments work
  • Answer your questions about markets and performance
  • Help you stay on track when markets fluctuate
  • Maximize your after-tax investments
  • Rebalance your portfolio
  • Refer you to other specialists when your situation requires it
  • Depending on their licences and areas of expertise, take certain tax considerations into account when making recommendations

This guidance is part of what you pay for.

Drawing the right conclusions

Seeing the annual amount you pay in investment-related fees for the first time may come as a surprise. That's normal, and asking questions is a good thing.

To properly understand this amount, it’s helpful to look at the full picture:

  • What products do you hold?
  • What services do you receive in return?
  • Which fees are included in the amount shown?
  • Are any protections or guarantees associated with your products?
  • Do your investments meet your current needs?

Does a figure surprise you? Is something still unclear? That's exactly why TCR exists. Now that all the information is transparent, you have everything you need to confidently ask questions and discuss them with your advisor.