Understanding the performance of your investment account

You work hard to save money. You invest toward a goal. You want your portfolio to work hard.

The performance of your investment portfolio is explained in a new report in your annual account statement. The “Report on Investment Performance” has 2 main sections:

One section gives information about activity in your account – deposits, withdrawals, changes in market value, and the opening and closing account values.

A second section shows the total percentage return of your account for the period, also called your personal rate of return. This rate of return includes the performance of investments – like income, dividends and changes in market value. It also measures the impact of any investor-directed activities, like withdrawals and deposits. .

Your personal rate of return is an indicator of your overall investment experience.  YIt is calculated after costs have been deducted, including the costs of transactions that have been made and the advice you received.  

The new Report on Investment Performance highlights your portfolio performance, not the performance of individual investments.

The new reporting is part of securities regulations designed to give enhanced cost and performance reporting about your account. The goal is to give you a clear summary of your account performance and what it costs to manage your account – the advice, services, transactions and operations.   This is all the work done on your behalf to help you achieve your financial goals.

When it comes to investing, it pays to be disciplined.  Making regular contributions and taking advantage of compounding returns can add up. Staying invested can also reduce risks from trying to time the markets.

So talk to your advisor to review your Investment Performance Report in relation to your investment objectives, risk tolerance, and the progress toward your financial goals.