10-year Partner Program
We believe that one of the keys to pleasing investment returns is taking a long-term view and holding good, undervalued businesses until the market fully recognizes their potential. While you can be lucky over short periods of time, it takes considerable skill to achieve long-term outperformance. The same notion applies to our investors. To succeed in getting to your Point B (whatever your financial goals may be), it takes conviction, the fortitude to embrace volatility and, above all, an unwavering long-term view. Of course, it also takes the expert guidance of your financial advisor. A good advisor will construct a portfolio that is appropriate for your unique needs and circumstances, and will help you stay invested through challenging market conditions so you can achieve your long-term goals.
We believe it’s important to show our appreciation for your commitment over the years. For investors who have stuck with our investment approach and have focused on the long term, we are rewarding them with lower investment management fees. The fee reduction applies to those partners who have been invested in an EdgePoint Portfolio for 10 or more consecutive years and are currently invested in a qualifying series.
Ten years is an accomplishment, especially considering the average investor only holds a stock for about five monthsi and a mutual fund for only three to four years.ii
More importantly, the end of your first decade with EdgePoint marks the beginning of when the magic of compounding really starts to accelerate. Albert Einstein called compounding the “eighth wonder of the world” because it helps your money make more money over time. Click here to understand why.
Details of the 10-year Partner Program:
The fee reduction is offered at least annually as a rebate in the form of a management fee distribution (“rebate”) reinvested in additional units of the Portfolio(s) that you hold.
The reduction is applied to the management fee applicable to Series A, Series A(N), Series F or Series F(N), along with their respective T4/T6 versions, of a Portfolio (“eligible portfolio series”), net of trailer fees that we pay to your Dealer (if applicable), operating expenses and taxes.
|Portfolio||Discount on your Investment Management Fee*|
Rebate calculation and payment
The rebate is calculated based on the total investment value of each eligible portfolio series held in an eligible individual investor account.
All fee reductions are paid at least annually following the period that you become eligible. The rebate will not be paid to accounts that have been closed or units that have been redeemed prior to the fee rebate payment date.
The rebate is reinvested in additional units of the applicable series of the Portfolio(s) that you hold.
The rebate is available on Series A, Series A(N), Series F, and Series F(N), along with their respective T4/T6 versions, of the eligible portfolio series.
Rebates are not paid to Series B units/Series B(N) units as these units are automatically switched to Series A Units/Series A(N)units, respectively, at the completion of the low-load sales charge fee schedule in the fourth year.
The rebate is applied to all eligible current and future portfolio series held at the investor account level. If multiple types of investment accounts are registered to the same investor (e.g., non-registered, RRSP, TFSA, RRIF, etc.), the rebate will apply to all eligible portfolio series held by all types of accounts assigned to the individual investor.
There is no “householding” option for the 10-year Partner Program. Other accounts that may be associated with an eligible investor (e.g., spouse’s account, holding company account, etc.) will not be eligible for the rebate unless those accounts separately meet the tenure requirement.
Rebates are taxable in a non-registered account and included on a T3 tax slip. The management fee distributions also increase the cost base of the holdings.
Similar to regular mutual fund distributions, you will be responsible for including the amount of any management fee distributions as income in the year in which you received them.
You will be sent a tax slip each year that will outline any distributions, including management fee distributions, you received from the Portfolio. Please consult with your financial advisor.
While we use our best efforts to ensure that all qualifying accounts are captured, due to the nature of account openings and closings, account switching, advisor or dealer switching, dealer mergers or other similar events, we cannot ensure that all eligible accounts will be captured. Please contact your advisor if you believe you have an eligible account that has been omitted from the rebate program.
The rebate is not negotiable and is paid at EdgePoint’s discretion. The program may be revised or terminated at any time.
ii Source: Dalbar, Inc. 2020 Quantitative Analysis of Investor Behaviour. At the end of 2020, the retention rates were 3.5 years for equity funds was 3.5 years, 3.1 years for fixed income funds 3.1 years and 4.3 years for asset allocation funds.