Guide to understanding your annual costs report

The Guide provides a summary of each section of the report highlighting examples of the most common costs associated with investing at Edward Jones.

As your advisor, I am happy to help you understand the details of the report as it relates to your personal financial strategy.

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Sample image of the annual cost report. Highlighted section headings are Charges paid by you and compensation from third parties, Transaction cost, Operating Cost, Total Transaction and Operating Cost, Compensation from Third Parties and Total Charges Paid by You and Compensation from Third Parties

1. Charges paid by you and compensation from third parties: A summary of the types of costs associated with your account, and compensation received by our firm.

2. Transaction cost: Costs associated with buying and/or selling securities such as fixed-income, equity and certain types of mutual funds. Examples of entries that may appear in the Transaction Cost section include:

• Commissions: For stocks, bonds, front- end load mutual funds, and exchange-traded fund transactions.
• Dividend reinvestment fee: If you participate in the Dividend Reinvestment Program, you pay a 2% fee based on the dollar amount of dividends you reinvest.
• Dollar cost averaging: If you participate in the Dollar Cost Averaging Program (DCA), you pay 2% of the principal or a $5 fee, whichever is greater.

3. Operating cost: Amounts you paid for general administration of your account, including fees and charges on a one-time, monthly, or annual basis. Examples of entries that may appear in the Operating Cost section include:

• Annual administration fee: Applies to registered accounts where applicable.
• Deregistration fee: Charged when you withdraw assets from a registered account.
• Guided Portfolios fee: The Edward Jones fee for the ongoing management and administration of your Guided Portfolios account, calculated as a percentage of the total assets within the account. This fee does not include any internal expenses that are associated with a mutual fund, exchange-traded fund, etc.
• Mutual/Segregated fund fee:
  • Mutual funds fee: Taxes, administrative and miscellaneous fees that may be collected by the fund company on mutual funds you own.
  • Segregated funds fee: Includes costs for guarantees and death benefits by the fund company.
• Portfolio Program - Edward Jones Fee: The portion of the total Portfolio Program fee that is paid to Edward Jones for the ongoing maintenance and administration of your Portfolio Program account, calculated as a percentage of the total assets within the account.
• Portfolio Program - SEI Fee: The portion of the total Portfolio Program fee that is paid to SEI for the management expenses of the program, calculated as a percentage of the total assets within the account.
• Taxes: Charged on fees you paid to Edward Jones. Amount based on resident provincial rates.

4. Total transaction and operating cost: Sum of your Transaction and Operating Costs paid for the previous calendar year.

5. Compensation from third parties: Amount Edward Jones has received from other companies to provide ongoing services on your account. Examples of entries that may appear in the Compensation from Third Parties section include:

• Trailing commissions: In general, mutual fund companies pay a portion of its management fee (MER) to the dealer handling your portfolio as a trailing commission (or trailer fee). It is paid for as long as you own the Fund for the services and advice that your financial advisor and our firm provide to you.
   
• Deferred sales charges (DSC) and Low load (LL) purchase options: The mutual fund company pays a commission directly to Edward Jones (rather than deducting it from the amount invested). In other words, all of your money is invested in the chosen Mutual Fund at the outset. Specific details are outlined in the Fund Facts document.¹
   
• Guaranteed investment certificates (GICs): Edward Jones offer GICs at face value and receive a selling fee, which is incorporated into the price.

6. Total charges paid by you and compensation from third parties: The total sum (Total Transaction Cost + Total Operating Cost + Total Compensation From Third Parties) of the amounts you have paid to us and amounts we have received from others to service your account in the previous calendar year.

Did you know?

The fees you pay on select non-registered fee-based accounts may be eligible for tax deductions and/or may be tax-deductible. If you may be eligible, retain your copy of your Annual Costs 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).