The Effective Annual Cost measure (EAC), is a standardized disclosure methodology that can be used by consumers and advisors to compare charges on most retail investment products, and their impact on investment returns, across the various regulatory wrappers so that consumers are placed in a position to make better informed decisions around retail savings and investment product choices.
The EAC is a measure of the charges that an investor will likely incur in purchasing and holding a financial product, and does not attempt to measure the features of a financial product.