Education Centre

Learning path for self-directed investors who want to know more about financial markets and investing

Guided tour of your annual reports

Your information clearly and simply

In line with the global trend towards standardized best practices in the securities industry, 2 new annual reports* are now issued with your December statement: the Investment Performance Report and the Annual Fees and Compensation Report.

These reports provide more information about your investments and ensure greater transparency, thus enabling you to track your portfolio’s progress. Their logical, reader-friendly layout was designed to make it easier for you to understand your financial situation.

* These reports are provided with your December portfolio statement in paper or electronic format, according to your portfolio statement delivery preference. The first reports will be issued in January 2017.

Investment Performance Report

This report outlines the performance of the investments in each of your accounts over the past year and since the account was opened. The information can help you monitor how your portfolio is doing so you can be sure to achieve your investment goals. 

rapport rendement chiffres

1. Account identification

Identifies the account covered by the report and its currency.

2. Market value table

Gives an overview of cash flows in your account. The amounts in this table correspond to those in your portfolio statement.

N.B. If your account was opened prior to January 1, 2016, the inception date is indicated as January 1, 2016. 

3. Progress chart 

Illustrates the data from the market value table in chart format.

  • The grey bar indicates the net amount invested since inception (initial market value + deposits - withdrawals).
  • The blue bar shows the final market value on December 31.

4. Rate of return calculations

Describes the 2 rate of return calculation methods used in the report:  

  • Time Weighted Rate of Return (TWRR)
  • Money Weighted Rate of Return (MWRR)

The MWRR is useful for calculating the rate of return on your specific portfolio and seeing whether you are on track to achieve your personal goals. The TWRR can be used to compare your results to indexes or other investments. The difference between these methods is how portfolio deposits and withdrawals are taken into consideration: the TWRR excludes them from the rate of return calculation whereas the MWRR includes them.

Explanation of calculation methods

5. General Information

Provides additional information to help you understand some of the report’s content.


Annual Fees and Compensation Report 

This report summarizes the amounts that National Bank Direct Brokerage received directly (from you) or indirectly (from third parties) during the year in order to provide brokerage account-related services and tools. The information can give you a better understanding of the amounts paid to us for each of your accounts in consideration for the products and services provided.

rapport

6. Account identification

Identifies the account covered by the report and its currency.

7. Administrative fees

Administrative fees associated with the maintenance of your account are broken down into subcategories and are not necessarily related to trading.  

Commission and general fee schedules

8. Transactions

This section covers the amounts related to securities transactions, such as commissions paid when buying or selling investment products.

9. Third party remuneration

Third party remuneration is the amount paid to us with regard to investments held in your account. These amounts may include:

  • Compensation paid by the issuer when purchasing investment products with a deferred sales charge structure
  • Trailing commissions paid for the ongoing maintenance of the positions in your account
  • Commissions related to the purchase of new issues (starting in 2017)

10. General information

Provides additional information to help you understand some of the report’s content.


This guide is intended to provide clients with a better understanding of their portfolio statement features and to address potential questions. It is not to be construed as a recommendation to buy or sell the securities that may be mentioned herein or any other products or services offered by National Bank Direct Brokerage. Security values depicted in images are for illustrative purposes only and may not reflect the value of the relevant security as of the date shown. 

National Bank Direct Brokerage Inc. is a wholly owned subsidiary of the National Bank of Canada. It offers no advice and makes no investment recommendations. The client alone is responsible for the financial and tax consequences of his or her investment decisions. Member of the Canadian Investor Protection Fund.

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