Glossary

NL/NSC - No Load/No Service Charge. No fee to buy or sell. These funds are held in fee-based accounts, with Fee-For-Service (FFS) based on household portfolio size. The fee is shown on your monthly statement.

FEL/SC - Front End Load/SC or Sales Charge. There is a fee to buy of between 0% to 5% and no fee to sell. A 1.00% ongoing annual trailer fee is paid to the dealer firm.  These funds are held in commission-based (regular) accounts where the fees are embedded in the fund's MER and reported at year-end. 

LL - Low Load. There are no fees to buy, but there is a fee to sell within a specific timeframe - typically up to 3 years. A 0.50% annual trailer fee is paid to the dealer firm for the initial three years then 1% thereafter. The mutual fund company pays the dealer firm 1% to 3% of the initial purchase price up front. Investors will incur a selling fee if funds are redeemed within three years. The fees decline each year to zero at maturity. Each year, 10% of the fund units can be sold free of charge within the maturity schedule. 

BEL/DSC - Back End Load /Deferred Sales Charge. There are no fees to buy, but there is a fee to sell within a specific timeframe - up to 7 years. A 0.50% annual trailer fee is paid to the dealer firm. The mutual fund company pays the dealer firm 5% on purchases. Investors will incur a selling fee if they redeem their funds within 7 years. The fees decline each year to zero at maturity. Each year, 10% of the fund units can be sold free of charge within the maturity schedule. This fund version is no longer available.

Series F - Fee-based fund. Fee-based mutual funds are only allowed in fee-based accounts. These are NL/NSC funds. The fund's Management Expense Ratio (MER) does not include the Trailer Fee/Trailing Commission in the retail version of the fund. The trailer fee is replaced by the Fee-For-Service (FFS) fee, which is separately negotiated and shown on your monthly statement. 

Series - A, Advisor series - This is the retail version of the fund and can be sold as either FEL/SC or BEL/DSC. Management Expenses and Trading Expenses, along with Trailing Fees, are bundled and charged to the fund before returns are reported.

Series B, Advisor series - This is the retail version of the fund and can be sold as either FEL/SC or BEL/DSC. Management Expenses and Trading Expenses, along with Trailing Fees, are bundled and charged to the fund before returns are reported.

MER - Management Expense Ratio.  The fund's total expenses comprised of investment management fees, operating expenses, and taxes.

Switches - if a fund is sold to buy another fund within the same fund company in a commission-based account, it is termed a switch, and no fees are incurred on either FEL or BEL funds. Switches between BEL maintain the maturity schedule of the original purchase to avoid disadvantaging the investor. The dealer firm and the advisor do not earn any commissions or fees on switches.

Fee-based account - accounts that hold only F Series funds and/or Exchange Traded Funds, where the annual trailer fee is negotiated. The fee will vary based on the size of the account. 

Commission-based accounts - accounts holding either Series A/B funds and/or Exchange Traded Funds.

Client Held Account - A mutual fund account held directly at a Mutual Fund Company in only their funds. 

Dealer Firm - Carte Wealth Management Inc. (CWMI) is responsible for the regulatory supervision of your advisor and the administration/reporting requirements of your accounts.

Nominee Accounts - A trustee account that facilitates holding financial instruments or products from various companies together, unlike separately, in a Client Held Account. CWMI provides nominee accounts.

Intermediary - We use B2B Bank Financial for the administration of some nominee accounts where it is more expedient (e.g. transferring from another dealer using B2B Bank Financial or where certain investments such as ETF cannot be transferred directly into CWMI nominee accounts).

MFD - Mutual Fund, a professionally managed pool of diversified assets. They are used primarily as an active strategy to outperform a reference index. 

ETF - Exchange Traded Fund, a pool of assets replicating a reference index. They are used primarily as a passive strategy to match a reference index. CWMI charges a $10 fee to buy or sell an ETF - this is not paid to your advisor. The advisor may charge a commission of up to 1% for buying or selling an ETF, as no-trailer fees are earned on holding these funds in the account. 

Fund Facts – are regulatory documents describing the mutual fund or exchange-traded fund you own. Evidence that you received it is required, and it will be emailed before a transaction to your account is made (if it is not already on file). A copy of the fund facts will be found in your MyPortfolio Client Access.

How your advisor is paid: Fees or commissions are collected by the dealer and or intermediary firm, which then deducts a percentage for operating expenses. Your advisor earns approximately 80% of the gross fees/commissions earned on your account. Your advisor also pays the dealer for administration, regulatory, and insurance expenses.