Segregated Funds are similar to Mutual Funds except they are managed and administered by Life Insurance Companies. Some of the underlying fund managers are also well known in the industry and include names such as Fidelity and Mackenzie.

However, since Segregated Funds are classified as an insurance product, they have a few very unique features such as potential creditor protection, maturity and death benefit guarantees and with a properly appointed beneficiary they can usually bypass probate.

Segregated Funds are suitable for conservative investors as they offer a maturity guarantee after 10 years or upon retirement if later. Many business owners and other professionals that deal with the public may purchase Segregated Funds to offer potential creditor protection from their creditors should they suffer bankruptcy or litigation against them.

Segregated Funds are also increasing in popularity amongst estate planning practitioners as often times they can bypass probate and save beneficiaries the probate fees. Also, the death benefit guarantee is very valuable in estate planning.

Generally for these additional benefits, the investors do pay a slightly higher MER or Management Expense Ratio and are outlined in the Summary Information Folders.

Please contact us today to see if Segregated Funds fit into your investment program.