Providing greater transparency - Performance Reporting

Nov 30, 2018 | Joshua Opheim


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There’s a new initiative called the “Client Relationship Model” that is designed to provide investors with greater transparency on their costs and performance.

With phase two of this initiative, called “CRM2”, a new annual performance report was introduced at most Canadian investment firms in 2017.

The new annual performance report uses a different way to calculate your rate of return compared to the traditional “time-weighted rate of return” used by most of the financial industry. It’s called a “money-weighted rate of return” and it’s intended to give you insight into your personal rate of return, taking into account your contributions and withdrawals.