Simpler than they look
Your annual December 31 portfolio statement also includes two reports that provide a detailed look at your investments. Are you having trouble figuring them out? Here are a few tips to help you understand.
As its name suggests, this report shows how your investments have performed over two periods: during the past calendar year and since you opened your account. Use this information to assess your progress towards your investment goals.
Details the changes in your account’s market value, by taking into consideration your deposits, withdrawals and transfers as well as financial market fluctuations.
Gives you a visual of the changes in your account’s market value during the past year and since account opening, taking into consideration the net amounts invested.
Presents the total percentage return for different periods, which all end on December 31. The calculations are based on an industry-wide standard formula (explained in point 4 below) known as the “Money Weighted” rate of return.
This method helps clarify how your investments have actually performed because it takes into account the timing of any deposits or withdrawals you have made.
Your personal portfolio return is calculated using an industry-wide
standard formula known as the “money weighted” rate of return
(MWRR).
It measures the performance of your investments taking into account everything that impacts asset value: interest, dividends, realized capital gains, deposits, withdrawals and transfers. Compare this rate of return with the rate of return you are targeting to reach your financial objective.
This report lists the charges for services and advice provided during the past year.
These include the administration fees, sales charges, switch fees, redemption fees, and if applicable, NBI Private Wealth Management service fees, for each account.
Note that there are no transaction fees for any security purchases, switches or redemptions done through our representatives. Moreover, we do not charge any administration fees except for the Registered Account Termination Fee.
NBI Funds, like other investment funds, have management fees which may vary based on the fund and series. A portion of these fees is paid directly to National Bank of Canada, much like a trailing commission.
This is the total amount of fees and compensation (points 1 and 2) received for the year covered by the report.
For a detailed look at the methods used to calculate your portfolio return, see TWRR and MWRR at a glance.
The information and opinions expressed in this document are provided
for information purposes only and are subject to change. The opinions
expressed are not intended as investment advice, nor are they provided
to promote any particular investments. They should in no way be used
as the basis for your investment decision. National Bank Investments
Inc. has taken the necessary measures to ensure the quality and
accuracy of the information contained herein as at the date of
publication. It does not, however, guarantee that the information is
accurate or complete, and this communication creates no legal or
contractual obligation for National Bank Investments Inc.
NBI Funds (the "Funds") are offered by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in a Fund. Please read the prospectus of the Funds before investing. The Funds’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. For money market funds, there can be no assurances that a fund will be able to maintain its net asset value per security at a constant amount or that the full amount of the investment in a fund will be returned. The Funds are not guaranteed, their values change frequently and past performance may not be repeated.
