Guide to understanding your annual costs report

Included with your December statement is a yearly report capturing — Your annual costs. To help you understand the details of the report, we have developed this Guide.

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.

Source: Edward Jones

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.

  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.

  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).

  Disclosures

  Information about the services, fees and agreements that are part of your relationship with us.

  

  Want our free e-newsletter sent to you?

  Ask your Edward Jones financial advisor to sign you up

  1 Segregated Funds Only
  Edward Jones, its employees and financial advisors do not provide tax or legal advice. We strongly recommend that clients consult with a qualified tax professional to determine the tax treatment of costs and whether they may be deductible.

  Follow us to stay up to date

  Welcome to the Edward Jones Website. This site is published in Canada exclusively for residents of Canadian jurisdictions where our products and services may be legally offered. The services offered within this site are available exclusively through our Canadian advisors. Edward Jones' Canadian advisors may only conduct business with residents of the province(s) in which they are registered.

  Copyright © 2024 Edward D. Jones & Co., L.P. Single copies of our Internet pages may be downloaded or printed solely for personal use. It is otherwise prohibited to modify, copy, distribute, transmit, display, perform, reproduce, publish, license, create derivative works from, transfer, or sell any information, software, products or services obtained from this site. Edward Jones® is a registered trademark of Edward D. Jones & Co., L.P.

  Edward Jones is a limited partnership in Canada and is a wholly owned subsidiary of Edward D. Jones & Co., LP, a Missouri limited partnership. Edward D. Jones & Co., LP is a wholly owned subsidiary of The Jones Financial Companies, LLLP, a limited liability limited partnership.

  Edward Jones and its independent affiliate in the United States, collectively, serve more than 7 million investors.

  *In Quebec, our advisors are known as Investment Advisors.