WDS has a duty to ensure that you understand the total cost of operating your investment accounts. The overall fees charged to operate an account may include both management fees that are paid directly, and underlying product fees that are paid indirectly and embedded in some securities.
Clients view these charges on the account statements provided by National Bank Independent Network (NBIN), where all direct costs relating to account operation are disclosed.
Management Fees
Unlike traditional brokerage firms that charge on a per transaction basis, WDS receives compensation from fees. This ensures every WDS client receives the same objective, transparent and professional level of service.
WDS’s base annual fee is 1.35%, and is a declining asset-based fee using aggregate family assets. The fee amount (plus applicable taxes) is calculated as a percentage of each account’s market value. Monthly fees are taken directly from the account, in arrears. Management fees are tax deductible in Canada for non-registered accounts.
No commissions are payable to WDS in connection with any investment products, including trailing commissions in respect of inherited mutual funds. WDS does not manufacture any proprietary products for sale or use in our clients’ portfolios
Sponsored Fund Management Expense Ratio
In certain cases, WDS may use pooled investment products, like exchange-traded funds. These pooled funds commonly have embedded management fees and operating costs that are deducted by the fund sponsor. The management expense ratio usually ranges from 0.25% to 0.75%, depending on the fund’s asset class.
Trade Commission and Other Brokerage Fees
With a custodial account, National Bank Independent Network (NBIN) charges a standard commission rate for electronic trade orders, i.e. all buy/sell orders of Canadian or U.S. securities.
NBIN charges its standard fees for transfers or termination of accounts. These are assessed at rates disclosed in the Statement of Disclosure of Fees and Service Charges for clients of Portfolio Managers.
WDS clients do not pay NBIN’s custody fee. NBIN waives its annual fee for registered plans, such as Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP) and Tax Free Savings Account (TFSA).