Segregated Funds

You are on: Principal Guarantees

While similar to mutual funds, segregated funds offer many unique advantages including maturity and death benefit guarantees, the ability to bypass estate probate and potential creditor protection.

Maturity guarantee:

When a deposit matures and is redeemed (a minimum of 10 years from the date of deposit), you will receive a top-up payment, less any withdrawals and fees, if the market value is less than the guaranteed amount.

Death benefit guarantee:

When a segregated fund annuitant dies and the market value of the investment has declined, the named beneficiary will receive the guaranteed amount, less any withdrawals and fees.

You are on: Segregated Funds vs. Mutual Funds

Features	Segregated funds(1)	Mutual funds
Professional portfolio management
Diversification among asset classes and management styles
Grow a portfolio while diversifying risk
Liquidity: easy access to your money through daily price valuations
Ability to bypass probate and keep financial affairs private		Occasionally(2)
Potential creditor protection for registered accounts
Potential creditor protection for non-registered accounts
A guarantee of the principal (or a specified percentage) at maturity(3)
A guarantee of the principal (or a specified percentage) at death(3)
Lock in market gains using resets

1) Segregated fund fees are higher than mutual funds, as they include a management fee and an insurance fee component.

2) Non-registered accounts with joint ownership and right survivorship only (all provinces except Quebec). Registered accounts can bypass probate when a beneficiary is named.

3) Withdrawals reduce guarantees proportionately. Guarantees end at age 100.