Investment Basics

Segregated Funds
Segregated ("seg") funds are professionally managed pooled funds, with investment merits similar to mutual funds. Seg funds are only offered through individual variable deferred annuity contracts sold by Life Insurance companies. Governed under provincial regulations, segregated funds provide investors with unique features and guarantees not generally available in traditional market-based investments, like mutual funds.

The assets of a segregated fund are held separate from the general assets of the Life Insurance company, hence the name.

The benefits of seg funds include:

• at maturity at least 75% of the initial amount less any withdrawals is guaranteed - maturity must be at least 10 years from the date of deposit;
• in the event of death seg funds may provide relief from the costs and delays of probate, depending on the set-up;
• in the event of death a minimum of 75% or the market value (whichever is greater) less any withdrawals will be paid.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.

Note: BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltée (collectively "BMO Nesbitt Burns") provide this web page to clients for informational purposes only. The information contained herein is based on sources that we believe reliable, but is not guaranteed by us, may be incomplete or may change without notice.