If you invest in a publicly offered investment fund, you may have received a management report of fund performance (MRFP). An MRFP provides important information about how an investment fund is performing.
On this page you’ll find
What is a management report of fund performance?
A management report of fund performance (MRFP) is a disclosure document prepared by a fund manager for investors and regulators. It explains how the fund performed over a reporting period, and what factors influenced that performance.
The fund manager must:
- Send you each MRFP.
- Ask you annually if and how you would like to receive it, or, ask for standing instructions if and how you would like to receive it (and send you an annual reminder that you can change those instructions).
You can choose to receive the MRFP by mail, electronically (if available), or only when you request it. If you do not make a selection, you will not receive the report unless you request it.
The MRFP is also available on the fund manager’s website. You can also sign up on SEDAR+ to receive alerts when a new MRFP is filed.
MRFPs are prepared twice a year:
- Annual MRFP – covers the fund’s most recent financial year (generally a full 12‑month period).
- Interim MRFP – covers the first half of the financial year (generally a 6‑month period).
Together, these reports give you updates on the fund’s performance throughout the year.
MRFPs include both:
- Quantitative information – such as returns, expenses, and fees.
- Qualitative information – such as management’s explanation of performance and key factors that affected results.
If you have questions about your MRFP, contact your dealer or fund manager for more information.
Why do MRFPs matter?
A management report of fund performance (MRFP) can help you:
- Understand performance – how the fund has performed and why.
- Assess suitability – whether the fund still aligns with your goals and risk tolerance.
- Stay informed – about changes to the fund, its strategy, or market conditions.
This information can help you decide whether to buy, hold, or sell your investment.
What information is in a management report of fund performance?
Canadian securities rules set out what must be included in a management report of fund performance (MRFP). The main sections are:
1. Management discussion of fund performance
This section includes:
- Investment objectives and strategies – a summary of the investment fund’s objective and strategies.
- Risk – a discussion of how changes to the investment fund over the reporting period affected the overall risk of an investment in the investment fund.
- Results of operations – a summary of the results of operations of the investment fund for the reporting period, including an explanation of the nature and reasons for changes in the investment fund’s performance.
- Recent developments – a discussion of recent developments affecting the investment fund, including anticipated events, decisions, circumstances, opportunities and risks that could impact performance.
2. Financial highlights
Tables showing key financial information, including:
- Net asset value (NAV) per unit/share – NAV is the per-unit/share market value of a mutual fund
- Management fees and how they are calculated – management expense ratio is based on total expenses (excluding [distributions], commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period.
- Trading expense ratio – represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period
- Portfolio turnover rate – indicates how actively the Fund’s portfolio adviser manages its portfolio investments.
3. Past performance
Shows how the fund has performed over time, including:
- Year-by-year returns – a bar chart showing the investment fund’s annual performance, which shows how performance has changed from year to year.
- Annual compound returns – a table showing the investment fund’s annual compound total returns for 10, five, three and one year periods, compared with the historical compound total returns of broad-based securities market indices.
4. Summary of Investment Portfolio
A breakdown of the fund’s investments, including:
- top holdings
- how the portfolio is allocated across sectors or asset types
5. Other material information
Any additional information that could affect your understanding of the fund, such as regulatory exemptions.
Coming Soon: Fund Reports
The Canadian Securities Administrators (CSA) are working on replacing MRFPs with Fund Reports. The Fund Report will be simpler, shorter and easier to read, helping investors to quickly find and understand the information that matters most about their investment funds.
Summary
The management report of fund performance (MRFP) is prepared semi-annually for investors and regulators. It includes fund manager commentary on fund performance, financial highlights, past performance, and an investment portfolio summary. If you have questions about your MRFP, contact your dealer or fund manager for more information.
