SEGREGATED FUNDS: AN EXPLANATION

Segregated funds are similar to mutual funds in that they grow their investment capital and provide access to professional fund management. Segregated funds like mutual funds also allow investors to diversify with different types of funds.

Segregated funds offer many of the same investment opportunities but have one important difference - segregated funds are insurance contracts known as deferred annuities and are therefore governed by the Insurance Act.

Segregated funds are an insurance product with investment features. They hold investors' pooled money, which is invested in securities on the fund's investment objectives.
Segregated funds are purchased under an insurance contract, and therefore have the advantages of a Death Benefit Guarantee and Maturity Guarantee.