Knowing how your investments are performing is key to staying on track with your financial goals. Each year, your investment firm must provide two important reports:
Investment performance report
Charges and compensation report
These reports help you understand how your investments are doing and what you’re paying for advice and services. Reviewing them regularly can help you make informed decisions and adjust your plan if needed.
Your Investment Performance Report shows how your investments have changed over time and whether you're making progress toward your financial goals. It’s personalized to reflect your account activity and gives you a snapshot of how your portfolio is doing.
Here’s what you’ll find in the report:
Market value of your account: This is the total dollar value of your investments as of the report date. It shows what your portfolio is worth at that point in time.
Deposits and withdrawals: The report includes a summary of any money you’ve added to or taken out of your account during the reporting period. This helps you see how your contributions and withdrawals affect your overall balance.
Your personal rates of return: This is one of the most important parts of the report. Your personal rate of return shows how your investments have performed over time, based on your actual account activity. It’s calculated using:
The timing and amount of your deposits and withdrawals
Changes in the market value of your investments
You’ll see your rate of return as a percentage, typically shown for the past 1, 3, 5, and 10 years, and since you opened the account. These numbers help you understand how your portfolio is growing—or shrinking—and whether it’s keeping pace with your goals.
Understanding the fees you pay is an important part of managing your investments. These costs directly affect your overall returns, so it’s worth reviewing them regularly.
Each year, your investment firm must provide a Charges and Compensation Report. This report gives a clear breakdown of the fees and charges you paid over the past year, including:
Advice and service fees: What you paid for account management and investment guidance.
Transaction costs: Fees related to buying, selling, or holding investments.
Third-party payments: Any compensation your firm received from others, such as fund managers or product providers.
All fees are listed as dollar amounts, so you can see exactly what you paid. It’s important to know:
The report shows compensation paid to your investment firm, not your individual advisor.
It does not include internal fund fees, such as Management Expense Ratios (MERs). These are detailed in the Fund Facts document, which your advisor must give you before you buy a mutual fund for the first time.
To get a full picture of your investment costs, review both the Charges and Compensation Report and the Fund Facts document together. If anything is unclear, ask your advisor to walk you through the details.
Depending on your firm, these reports may be sent together or separately. You can usually choose to receive them by mail or online.
Take time to review your reports each year. They can help you:
Understand how your investments are performing.
See if you’re on track to meet your goals.
Spot any unexpected fees or changes in your account.
If you have questions about your performance or the fees you’re paying, reach out to your registered financial advisor. They can help explain your reports and help you better understand whether your investments are meeting your goals.