Total Cost Reporting: Adding clarity to investment costs

Starting in early 2027, your annual investment statement will include a new section breaking down, in dollar terms, the ongoing costs of owning each investment fund in your portfolio. This includes the Fund Expense Ratio (FER), which is made up of two main components:

1. Management Expense Ratio (MER): The MER covers the cost of professional portfolio management, ongoing research, daily operations, regulatory compliance, accounting, record-keeping, taxes and client reporting. It also includes administrative costs and, depending on the fund series, may include trailing commissions paid to your advisor’s dealer for service and advice. The following chart helps explain the management fee, taxes and fixed administration fees covered under the MER:

2. Trading Expense Ratio (TER): The TER reflects the costs incurred by the fund when buying and selling securities within the portfolio. The following chart details some of the brokerage commissions and transaction fees covered under the TER:

By combining the MER and TER, the FER gives you a detailed view of what you pay to invest in mutual funds or ETFs. For example, if your fund’s FER is 2% and you invested $100,000, your annual cost would be $2,000, now shown clearly on your statement. It’s important to note that these costs are not new or additional; they have always been paid from your investment’s value, rather than as a separate charge, and are now simply being disclosed more clearly. 

TCR applies to a broad range of investment products, including mutual funds, Canadian-listed ETFs and certain other investment funds. However, some products—such as private placement funds, structured products, and some foreign-listed funds—are not currently included in TCR reporting. If you hold any investments that are outside the scope of these new requirements, your statement will make this clear.

Delivering this enhanced level of transparency requires close collaboration between investment fund managers like CIBC GAM and dealers. This partnership ensures you receive clear, accurate and personalized cost information on your statement.

While TCR enhances cost transparency, it does not impact how your investment performance is reported. You will continue to receive separate, detailed information about your portfolio’s performance, just as before.

What do these fees deliver for you?

• Expert portfolio management: Your investments are managed by experienced professionals who make informed decisions, monitor markets and adjust portfolios to help you achieve your goals.
• Comprehensive research and strong governance: Our teams use rigorous research and robust oversight to manage risk and seek opportunities across global markets.
• Diversification and access: Investing with CIBC GAM gives you exposure to a wide range of asset classes and global opportunities, often with lower minimum investment amounts than what would be possible on your own.
• Regulatory safeguards: Your investments are held within a regulated framework, with strict oversight to ensure accuracy, compliance and peace of mind.
• Personalized support and education: You benefit from ongoing support, timely reporting and regular market updates to help you make informed decisions.