Total cost reporting: Understanding fees on your segregated fund statement
Learn how total cost reporting helps bring clarity to investment fees by showing clearer dollar-based costs.
Updated 
4 min. read
Starting in 2027, your annual investment statement will show a clearer, dollar-based view of what you paid to own certain investments in 2026. This change is called total cost reporting (TCR). It’s a new transparency standard adopted by Canadian regulators to help investors see the full picture of costs and have better conversations with their advisors. It’s important to note that there are no new fees introduced as part of this initiative and nothing you will need to do. The end-goal of this new reporting standard is to provide you with a better understanding of the fees you pay.
What will change on your BMO Insurance statement
You’ll see new cost information presented more clearly on your annual statement.
- Total annual cost in dollars for covered investments in your account, such as mutual funds, exchange traded funds (ETFs) and segregated funds (also known as guaranteed investment funds), showing what you paid over the year.
- Fund expense ratio (FER) for each fund: This is a percentage that combines a fund’s management expense ratio (MER) and trading expense ratio (TER) to show ongoing fund costs.
- Fees that influence your fund value: Any time units are redeemed to pay a cost, like the death guarantee reset enhancement rider, this will be shown as a dollar value on your statements.
Common investment fee terms you may see
The management expense ratio (MER) is the ongoing cost of running and managing a segregated fund. It covers things like professional investment management, day-to-day administration of the fund, operating costs, and the insurance costs tied to guarantees in segregated funds.
The trading expense ratio (TER) reflects the cost of buying and selling investments inside the segregated fund. It includes brokerage commissions, and trading and transaction costs when the fund manager buys or sells securities.
When you’ll see it
In order to provide this additional reporting, firms across Canada began collecting the data on January 1, 2026. The first enhanced annual reports covering 2026 will be delivered early in 2027. For segregated fund contracts, insurers will also show a breakdown of fees on the December 2026 annual statements, which you’ll receive in early 2027.
Why clearer investment fee reporting matters
Understanding costs helps you judge value. With TCR, you’ll see:
- The total you paid for fund expenses during the year (these amounts are deducted within the funds and were already reflected in returns).
- Any direct charges you paid, like optional account enhancements or transaction fees.
- A clearer basis to compare investments using the FER alongside performance and risk.
What TCR does not do
- It does not add new fees. Instead, it gives you a clearer pictures of the fees you currently pay.
- It does not change your investment objectives or guarantees on insurance contracts.
- It does not replace advice. It’s designed to give you clearer information, which you can discuss with your advisor.
How to prepare
- Review your next statement carefully when it arrives.
- Ask your advisor to walk through what’s included in your total cost number and how it supports your goals.
- Look at costs in context: Expertise, diversification, risk management and planning support are part of the value you receive alongside performance after fees.
If questions come up when you see the new statement, your advisor will help you make sense of it and stay on track.
Common questions about total cost reporting
No. Total cost reporting does not introduce any new fees. The costs shown on your statement are fees you were already paying, and they were already reflected in your investment returns. The change is about showing those costs more clearly, in dollar terms, so you can better understand them.
Yes. Most ongoing investment fees, such as fund management and trading costs, are deducted within the fund itself. This means the returns you see reported for your investment already reflect those fees — they’re not added on separately.
With total cost reporting, these costs are shown more clearly in dollar terms so you can better understand what you paid during the year. The way returns are calculated and reported does not change.
With total cost reporting, fees are shown more clearly in dollar terms. This added visibility can make fees feel more noticeable, even though the underlying costs haven’t changed.
Total cost reporting applies to certain investments held in your account, such as mutual funds, exchange traded funds (ETFs), and segregated funds.
No. Total cost reporting does not change your investment objectives, guarantees, or insurance contract features. It’s designed to provide clearer information about costs, not to alter how your investments work.
Your advisor is your best resource. Total cost reporting is meant to support better conversations, giving you clearer information to review together and helping you stay focused on your long term goals.
Disclaimer
Any amount that is allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value. The information in this publication is intended as a summary of our products and/or services and may include projected values based on a set of assumptions. Actual results may not be guaranteed and may vary. Please consult the appropriate policy contract for details on the terms, conditions, benefits, guarantees, exclusions and limitations. The actual policy issued governs. Each policyholder’s financial circumstances are unique, and they must obtain and rely upon independent tax, accounting, legal and other advice concerning the structure of their insurance, as they deem appropriate for their circumstances. BMO Life Assurance Company does not provide any such advice to the policyholder or to the insurance advisor.
Insurer: BMO Life Assurance Company
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