Investment Types

Exceptions

Buying or selling a fund:
Desjardins Online Brokerage charges a commission of $32 (Internet trade) or $45 (representative-assisted trade) in these situations:

• Funds held less than 90 calendar days. Fund companies may charge a "short-term trading" fee.
• Funds transferred from another institution and held for less than 90 calendar days.
• The following funds are charged commissions for purchases, sales and switches, and have non-standard minimum purchase amounts: Tradex and Majestic Asset Management. This list may change without notice.
• The following funds charge commissions for sell orders and are not offered for purchases and switches: Investors, GBC Funds, FMOQ, MD Management, Professionnel du Québec, Stone, Cote 100, Férique.
• The following funds charge commissions for sell orders only: Jarislowski Fraser Funds “Series E” and Mawer Investments MGT.

Switches within the same fund family:

• 12 free annual switches per account for most funds.
• Subsequent switches are subject to commissions of $32 online or $45 through a representative.
• The fund company may charge short-term trading fees if you switch funds within 90 days of purchase.
• Short-term trading fees will not be charged by Desjardins Online Brokerage if you switch units within 90 days of purchase.

Some funds can charge different fees.

Other Fees

Some mutual funds carry a deferred sales charge (DSC):

These fees are charged by the fund company when you sell your funds. The charge decreases over time so the longer you hold the fund, the smaller the fee, until it is completely eliminated after 6 or 7 years, depending on the fund.

The deferred sales charge may be based on the value of the fund at the time of purchase. Below is an example of this type of DSC:

Sale within the first two years:	5.5% of the value at time of purchase
Sale during the third year:	5.0% of the value at time of purchase
Sale during the fourth year:	4.5% of the value at time of purchase
Sale during the fifth year:	4.0% of the value at time of purchase
Sale during the sixth year:	3.0% of the value at time of purchase
Sale during the seventh year:	1.5% of the value at time of purchase
Subsequent sale	No fees

The deferred sales charge may also be based on the fund value at the time of sale. Below is an example of this type of DSC:

Sale during the first year:	3.0% of the value at time of sale
Sale during the second year:	2.5% of the value at time of sale
Sale during the third year:	2.0% of the value at time of sale
Subsequent sale	No fees

All mutual funds include management fees represented by the management expense ratio ("MER"). The MER is expressed as an annualized percentage of a fund's average net assets.

We invite you to review the Fund Facts document or simplified prospectus for more information on the costs associated with buying, selling and holding mutual fund units.

Remuneration

Trailing commissions are fees that investment fund managers pay to dealers. These fees are included in the management expense ratio (MER).

Starting June 1, 2022, new rules from the Canadian Securities Administrators will ban investment fund managers from paying trailing commissions to discount brokers who don't provide advisory services, like Desjardins Online Brokerage (Desjardins Online Brokerage).

As a result of this regulatory change, mutual funds with trailing commissions can no longer be held in or transferred to non-advisory accounts. If you hold mutual funds with trailing commissions with Desjardins Online Brokerage or if you want to transfer such securities to Desjardins Online Brokerage, different measures will apply to them in order to comply with the new rules. See below for a description of these measures.

Before June 1, 2022 – If you hold mutual funds with trailing commissions with Desjardins Online Brokerage

Like-to-Like or Like-to-Similar mutual fund classes or series – If you hold mutual funds with trailing commissions with Desjardins Online Brokerage before June 1, 2022, and there are Like-to-Like or Like-to-Similar classes or series available with Desjardins Online Brokerage, then your mutual funds will have been switched for Like-to-Like or Like-to-Similar classes between March and May 2022.

Like-to-Like means a fund class or series without trailing commissions from the same investment fund manager, but with lower management fees. The switch won't have any tax implications.

Like-to-Similar means a fund class or series without trailing commissions from the same investment fund manager, but with lower management fees and a different distribution policy or currency. The switch will not have any tax implications.

You will find details about the switches, including the mutual fund classes or series you will hold after they're completed, in your monthly account statement and in a letter you will receive in the mail.

No Like-to-Like or Like-to-Similar mutual fund classes or series – If the investment fund manager determines that it's not possible to switch to a Like-to-Like or Like-to-Similar class or series without trailing commissions, here's what will happen to the trailing commissions:

1. If the investment fund manager determines that he can provide a management fee rebate, they will issue one for the amount of trailing commission that would have been paid to Desjardins Online Brokerage. The rebate will be returned to the fund in which you hold securities, decreasing the fund's management expense ratio and increasing the net return.
2. If the investment fund manager determines that they can't provide a management fee rebate, they will pay the amount of trailing commission to Desjardins Online Brokerage, and Desjardins Online Brokerage will deposit the rebate directly in your account.

These rebates will be processed monthly or quarterly by Desjardins Online Brokerage, based on how often the investment fund manager pays trailing commissions to Desjardins Online Brokerage.

Trailing commissions are based on the type of fund and set by the investment fund manager. They generally vary between 0.25% and 1.5% of the asset held.

All rebates issued by Desjardins Online Brokerage will be listed on your account statement.

After June 1, 2022 – If you want to transfer mutual funds with trailing commissions to Desjardins Online Brokerage

If you want to transfer a mutual fund with trailing commissions to Desjardins Online Brokerage, Desjardins Online Brokerage will process this type of transfer between June 1, 2022, and June 30, 2023, as follows:

Like-to-Like or Like-to-Similar mutual fund classes or series

If the investment fund manager determines that it's possible to switch to a Like-to-Like or Like-to-Similar fund class or series, Desjardins Online Brokerage will make the switch after receiving the transfer, without further notice.

Otherwise, here's what will happen to the trailing commissions for the period between the transfer to Desjardins Online Brokerage and the switch to a class or series without trailing commissions:

1. If the investment fund manager determines that they can provide a management fee rebate for this period, they will issue one for the amount of trailing commission that would have been paid to Desjardins Online Brokerage. The rebate will be returned to the fund in which you hold securities, decreasing the fund's management expense ratio and increasing the net return.
2. If the investment fund manager determines that they can't provide a management fee rebate for this period, they will pay the amount of trailing commission to Desjardins Online Brokerage, and Desjardins Online Brokerage will deposit the amount directly in your account.

No Like-to-Like or Like-to-Similar mutual fund classes or series at time of transfer to Desjardins Online Brokerage

If it isn't possible to switch to a like-to-like or like-to-similar fund class or series without trailing commissions, Desjardins Online Brokerage will contact you to review your options. In all cases, if Desjardins Online Brokerage accepts such a transfer, Desjardins Online Brokerage will issue a full management fee rebate.

Mutual fund classes or series that may be subject to redemption fees under the deferred sales charge option

Desjardins Online Brokerage will contact you to review your options if 1) it's not possible to switch to a Like-to-Like or Like-to-Similar fund class or series or to provide a management fee rebate, or 2) it's possible to switch to a Like-to-Like or Like-to-Similar fund class or series but funds with trailing commissions may be subject to redemption fees with the deferred sales charge option. In all cases, if Desjardins Online Brokerage accepts such a transfer, Desjardins Online Brokerage will issue a full management fee rebate.

Desjardins Online Brokerage rebate frequency: When Desjardins Online Brokerage issues a rebate, the entire amount will be deposited directly into your account either monthly or quarterly, based on how often the investment fund manager pays Desjardins Online Brokerage.

Trailing commissions are based on the type of fund and set by the investment fund manager. They generally vary between 0.25% and 1.5% of the asset held.

Information about your account statement and transaction confirmation slips:

In the case of similar or equivalent switches, information on the mutual fund classes or series you hold after the switches will be on your next account statement. We will also send you a transaction trade confirmation after a switch.

When Desjardins online Brokerage issues a rebate, the amount of the rebate will be listed on your next account statement.

If you have any questions about the measures required to comply with the regulatory changes banning mutual funds with trailing commissions at Desjardins online Brokerage, feel free to contact us.

You can find more information about the funds you hold, including fund facts about the class or series of securities held after a Like-to-Like or Like-to-Similar switch, by visiting the fund family website or contacting us. The fund fact sheet will only be provided upon request.