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New Generation Segregated Funds from BMO Insurance

In December, 2013, BMO Insurance entered the Segregated Fund market place for the first time with their Guaranteed Investment Funds product line.  Segregated Funds offer a haven for investors who are concerned about the market risk and volatility of their portfolio.  BMO’s GIF product offers up to a 100% maturity and death benefit guarantee as well as incorporating some new and interesting features and options.

A new feature is the availability of BMO’s popular Exchange Traded Funds (ETF’s) as the investment option.  ETF’s are becoming a popular investment choice due to their diversification, low fees, reduced risk and tax efficiency.

The features and highlights of this new product are as follows:

  • Maturity Guarantee – maturity dates are offered from 15 to 25 years. For deposits made at least 15 years before the maturity date, 100% of the deposit is guaranteed.  For deposits made with less than 15 years to maturity, 75% of the deposit is guaranteed.  At the selected maturity date, the contract may be renewed for another 15 to 25 years with a final contract maturity date of age 100.
  • Death Benefit Guarantee – 100% of all deposits made prior to age 75 are guaranteed in the event of death.  Deposits made from age 75 are guaranteed at 75%.
  • Monthly Automatic Maturity Guarantee Reset – Up to 10 years before the maturity date, BMO will reset the guarantee amount to reflect market gains.  This is done automatically at the end of each monthThe monthly automatic reset is a feature unique to BMO.
  • Investment Options
    • Money Market Fund
    • Canadian Balanced Growth Fund (ETF)
    • U.S. Balanced Growth Fund (ETF)
    • Canadian Income Strategy (ETF)
    • North American Income Strategy Fund (ETF)
    • BMO Volatility Control – this unique feature is automatically included in the BMO Guaranteed Investment Funds.  It is a systematic asset allocation strategy designed to smooth out the GIF’s investment returns in an effort to reduce undue volatility.

The BMO GIF is available for both non-registered and registered plans, including Retirement Income Funds.  The minimum contribution is $500 per fund annually, or $50 per month by pre-authorized deposit.

As well as the unique features that BMO offers with their new Segregated Fund product, one should not overlook the benefits of Segregated Funds in general.  By naming a beneficiary, the proceeds at death are not subject to probate fees, offer potential creditor proof protection and  a confidential wealth transfer.   These benefits, combined with the features of the BMO Guaranteed Investment Funds should provide a “sleep better at night” investment experience.

Click the image below to watch the videos and learn more about this product.


If you would like to discuss this new product line, or if you have any questions regarding it, please call or email me.




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