New entry spooks seg fund industry

On December 2, BMO Insurance will begin offering segregated funds.

According to documents obtained by Advisor.ca, the firm will offer non-registered, RRSP and RRIF plans. They will have automatic monthly locking-in and the term must be between 15 and 25 years.

Read: Talking to clients: Segregated funds

At maturity, the fundholder will receive 100% on deposits made at least 15 years and 75% on deposits made less than 15 years from the maturity date. At death, the fundholder’s beneficiary will receive 100% on deposits made before age 75 and 75% on deposits made on or after age 75.

Read: Segregated funds offer protection

The types of funds are:

• Money Market
• Canadian Balanced Growth
• Canadian Income Strategy
• U.S. Balanced Growth
• North American Income Strategy

RBC Insurance is the only other insurance arm of a Big 5 bank to offer segregated funds.

More to come.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.