July 13, 2020
What is a segregated fund?
Segregated fund solutions are investments that let you participate in the markets, provide estate planning advantages, potential creditor protection and guarantees. Learn more
Segregated fund solutions
Manulife Investment Management’s unparalleled segregated fund lineup offers access to the growth potential of the markets, estate planning and protection features, and a broad array of choices to meet a wide range of investment styles and needs.
Why segregated fund solutions?
Segregated fund contracts let investors access the growth potential of the markets, prepare for retirement, and tap into estate planning benefits designed to facilitate quick, cost-effective, and private wealth transfer.¹
Segregated funds (seg funds) are similar to mutual funds, but with a few key differences. A mutual fund is a security, while a seg fund is an insurance product (i.e., an individual variable insurance contract). Only insurance companies can offer them.
Manulife’s segregated fund solutions offer:
- Growth potential
- Estate planning advantages
- Protection features
- Choices to meet a range of investment styles and needs
Like mutual funds, they:
- Invest in a diversified portfolio consisting of stocks, bonds etc.
- Are professionally managed
- Offer a wide range of funds to choose from
In addition, they offer:
- Estate planning benefits
- Access to maturity and death benefit guarantees
- Potential creditor protection
Maturity and death benefit guarantees
With segregated fund contracts, investors are guaranteed to receive at least 75% of deposits (or 100%, depending on the contract), less any withdrawals, when the contract matures. This is known as a maturity guarantee, and it applies at the maturity date. The maturity date occurs after a minimum number of years have elapsed or on a date specified in the contract; for example, age 100 of the annuitant.
Segregated fund contracts can also protect an investment for beneficiaries. The death benefit guarantee can be up to 100%, depending on the type of contract selected and the age of the annuitant when the product is purchased. The named beneficiary gets the death benefit in the event of the annuitant’s death. The beneficiary can be anyone—a family member, a friend, or a charity.
Some segregated funds also offer resets to lock in growth, while others include an option that can deliver lifetime guaranteed income.
Estate planning advantages of segregated fund solutions
Few investment solutions help minimize the trials and tribulations of estate planning the way a segregated fund contract can.
Speed
Settling an estate can be lengthy, frequently taking months or even years, if the will is challenged. With a named beneficiary other than the estate, death benefit proceeds of a segregated fund contract can pass directly to the beneficiary and avoid delays.
Cost
Legal, estate administration, and probate2 erode the value of an estate, diminishing the amount of money beneficiaries receive. The proceeds of a segregated fund contract can bypass these fees.
Privacy
Bypassing the estate, and therefore probate where applicable, can preserve confidentiality as probate is a matter of public record. Payments made to named beneficiaries of an insurance contract don’t flow through the estate and are therefore a private matter.1
Control
Use the annuity settlement option to automatically transfer segregated fund proceeds at the time of death into an annuity. Replace a lump-sum benefit with smaller, scheduled payments while savings of legal, estate administration and probate fees, increased privacy, and potential creditor protection.
Protection
Having the death benefit proceeds bypass the estate offers potential protection from estate creditors and will challenges.
Estate Cost Comparison tool
Use our simple calculator to demonstrate the potential estate planning benefits of segregated fund solutions.
Our segregated fund contracts
GIF Select InvestmentPlus®
GIF Select InvestmentPlus offers you a complete wealth management solution, providing access to a wide range of segregated funds including fixed income, balanced, and equity solutions, along with Guaranteed Interest Accounts (GIAs).
Manulife Private Investment Pools – MPIP Segregated Pools
Featuring a comprehensive suite of segregated pools, portfolios, and Guaranteed Interest Accounts (GIAs). This exclusive program offers a wealth-building solution for investors with an investment of at least $100,000 per pool, per contract.³ The program features competitive fees, tiered management fee reimbursements, and all the built-in estate planning advantages of guaranteed investment contracts.
Manulife Segregated Fund Registered Education Savings Plan (RESP)
The Manulife Segregated Fund RESP is designed to help investors prepare for their children’s future post-secondary education needs.
Important disclosure
1 In Saskatchewan, assets are identified on the application for probate despite the fact that they do not flow through the estate and are not subject to probate fees. 2 Probate does not apply in Quebec. 3 Minimum initial investment per pool/portfolio, may be reduced depending on the total amount of assets invested. For invested assets between $100,000 and $249,999, minimum per pool/portfolio is $100,000. For invested assets of $250,000 or more, the minimum per pool is $1,000. $1,000 per compound interest GIA term, $5,000 per monthly simple interest GIA term (provided contract minimums are met). 4 The Manulife PensionBuilder insurance contract invests in the fixed-income fund category,which may increase or decrease in value.
The Manufacturers Life Insurance Company (Manulife) is the issuer of insurance contracts containing Manulife segregated funds and the guarantor of any guarantee provisions therein.Manulife Investment Management is a trade name of Manulife.
Our legacy segregated fund contracts
GIF Select (original)
GIF & GIF encore
Ideal Segregated Funds Signature Series
Ideal Segregated Funds Signature 2.0
Ideal Segregated Funds
Manulife Ideal Signature Select
Manulife RetirementPlus
Digital solutions for guaranteed investment products
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