Valley First

Segregated Funds

This investment is for you if:

  • you want to participate in the growth potential of the markets without all the risk.
  • you’d like your investments protected as part of your estate plan.
  • you avoid the Vegas casinos and enjoy sightseeing instead.

Overview

Key Features & Benefits

Simply put, a segregated fund combines the growth potential of a mutual fund with the security of a life insurance policy. Since there is an insurance component to segregated funds, they need to be sold by our licensed wealth management specialists. Segregated funds:

  • offer the same features and options as mutual funds but they protect your investment savings from sudden market declines.
  • offer benefit guarantees so you and your family will be able to rely on this income for life.
  • preserve the value of your estate for your loved ones
  • offer beneficiary designation so you can avoid probate – a sometimes long and lengthy process
  • provide potential creditor protection for small business owners and professional

    FAQ

    Frequently Asked Questions

    What is the difference between segregated funds and mutual funds?

    The main difference between segregated and mutual funds is in the ownership. The investor doesn’t own the assets held by the investment fund, instead their investment is evidenced in the form of an insurance contract. Unlike mutual funds, segregated funds offer a maturity guarantee, a guaranteed death benefit, and protection from creditors.

    What is a Reset Guarantee?

    This guarantee provides the investor with the opportunity to reset the base amount of the guarantee from the original amount of the investment to the investment’s current market value.

    What are the maturity guarantees and death benefits of segregated funds?

    A maturity guarantee protects the investment capital until the end of a specified period of time. A segregated fund is required to have a minimum 75% maturity guarantee and the investor will get whichever amount is higher—market value of the investment at maturity or the guaranteed amount at maturity.

    A death benefit guarantee offers protection to the investor in the event of an investment loss during their lifetime and is also set at a minimum of 75% but can be as high as 100%.

    Do segregated funds cost more than mutual funds?

    Segregated funds are essentially two separate purchase – first you purchase a mutual fund and then you purchase the insurance to protect it. Generally, the cost for the insurance coverage is about 1.0% above what you’d paid for a mutual fund.

    Contacts

    Licensed Professionals

    Segregated funds have all the features that have made mutual funds one of the most popular forms of investment for Canadians. In addition, they offer the safety features that in the past were found only in the insurance industry. With segregated funds, you can take control of risk and still build the assets necessary to meet your future financial requirements.

    For more information about segregated funds, please contact any of our Valley First wealth management specialists listed below.

    Bruce LeFranc, CFP
    Cherry Lane Branch, Penticton | Phone: 250-493-3077
    Keremeos Branch | Phone: 250-499-5524
    Peachtree Square Branch | Phone: 250-492-0210

    Robert Oleksyn
    Penticton Main Branch | Phone: 250-490-2704
    Princeton Branch | Phone: 888-490-2704

    Luke Ellis, B. Comm
    Oliver Branch | Phone: 250-498-6277

    Todd Kennelly, CFP, FMA
    Downtown Kelowna Branch | Phone: 250-860-1900
    Guisachan Branch | Phone: 250-862-8822
    Orchard Plaza Branch | Phone: 250-763-6117
    Vintage Hills Branch, Westbank | Phone: 250-707-2500

     

    *Financial Planning, Mutual Funds and other securities are offered through Qtrade Advisor, a division of Qtrade Securities Inc. Member of the Canadian Investor Protection Fund.

    Mutual funds are offered through Qtrade Asset Management Inc., member MFDA.

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