1. Together We Are the Best
We are National. We are the Best.
Together, We are National Best.

2. 4 Types of Investments Mutual Funds Exempt Market Products
Segregated Funds
Bank Products

3. Mutual Funds
Common pool of funds
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Client Initials

4. Mutual Funds Common pool of funds
Strict investment guidelines (prospectus)
Daily liquidity
Fund values affected by markets & unit holder participation
Mgmt fees or structure fees reduce performance
Investor’s experience depends on when they got in & out of the fund
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Client Initials

5. Exempt Market Products
Common pool of funds or specific investments
Strict investment guidelines (Offering Memorandum)
Limited or NO liquidity
Asset values affected by markets & management performance
Higher Mgmt fees, structure fees & commissions reduce performance
Includes Hedge Funds, Real Estate Income Trusts, Mortgage Investment Corporations, etc.
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Client Initials

6. Segregated Funds
Contract linked to performance of a diverse pool of funds
Investment guidelines outlined in information folder & contract
Daily liquidity
Fund values affected by markets & unit holder participation
Mgmt, structure & bonus fees reduce performance, may be higher
Assuris guarantees 85% or $2000 per month pension income per contract
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Client Initials

7. Seg Funds5 – Protect Yourself Against the Down Side
Maturity Guarantee: 75% or 100%
Death Benefit Guarantee: 75% or 100%
Resets
No Proof of Insurability Needed
Potential for Creditor Protection
Estate Benefits - By-passes probate
$$$ paid directly to beneficiaries within 30 days notice of death
Capital Losses are passed on to investor
$ $ $
10-15 yrs $
Additional Features and Benefits of Segregated Funds:
Maturity Guarantee – 75% or100% of the initial amount invested, guaranteed to be returned to the investor after 10 years, 15 years or some other length of time specified in the contract. In the case of a 100% Maturity Guarantee, if the investment is worth more than the original investment upon maturity, the investor receives the market value of the investment. If it is worth less than the original investment, the insurance company will top up the investment back to the original amount deposited into the contract.
NOTE: Guarantees do not apply to withdrawals made from the Seg Fund before the contract maturity date. The investor will receive the funds at market value minus any deferred sales charges and taxes if applicable (capital gains if the fund is up, capital losses if the fund is down). The maturity guarantee on the remaining funds will be adjusted proportionately.
Death Benefit Guarantee - 75% or 100% of the initial amount invested, guaranteed to be paid to the beneficiaries upon the annuitant’s death. In the case of a 100% Death Benefit Guarantee, if the investment annuitant dies when the investment is worth more than the original investment upon maturity, the investor receives the market value of the investment. If it is worth less than the original investment, the insurance company will top up the investment back to the original amount deposited into the contract.
Resets – depending on the features of the contract, the maturity and/or the death benefit guarantees can be reset. Some resets are done automatically on the anniversary of the policy, or on the annuitant’s birthday. Other contracts allow for manual resets. Resets may push out the maturity guarantee another 10 or 15 years, depending on the details of the contract.
No proof of insurability needed – the annuitant is not required to be healthy in order to obtain these insurance contracts.
Potential for Creditor Protection – with the right beneficiary designations, and assuming the contract was set up before any law suits or bankruptcy proceedings, seg funds offer the potential to shield your money from creditors (Canada Revenue Agency being one exception). This is a very important feature for business owners who could work hard to build their businesses for many years, only to lose everything to creditors if business goes bad.
Estate Benefits – the Seg Fund contracts come with beneficiary designations which means that the money by-passes probate. We will discuss the benefits of by-passing probate in the Estate Preservation module. In addition, life insurance companies typically pay the money to the beneficiaries within 30 days notice of death. If the money had to go through probate first, it could be tied up for a long time.
Capital losses passed on to the investor – Most mutual funds incur capital gains when sold at a profit or capital losses when sold at a loss. Seg funds have the unique ability to pass on capital losses to the investor on an annual basis, without the investment having to be sold. These capital losses can be applied against capital gains in the 3 years prior to them being issued, or they may be carried forward indefinitely.
All of these features and benefits are included in the Management Expense Ratios, (which are typically somewhat higher than those for a comparable mutual fund investment).
NOTE: The benefits of the Seg Funds must be weighed against the higher cost of the MERs when deciding whether to use Seg Funds versus Mutual Funds as investment vehicles. Higher MERs, mean lower investment returns for the investor on the same underlying fund over a given period of time.

8. Guaranteed Income Products
Guaranteed Minimum Withdrawal Benefits (GMWBs)
Guaranteed Lifetime Withdrawal Benefits (GLWBs)
Deferred Bonus when money not taken in current year
Additional Features and Benefits of Segregated Funds:
Maturity Guarantee – 75% or100% of the initial amount invested, guaranteed to be returned to the investor after 10 years, 15 years or some other length of time specified in the contract. In the case of a 100% Maturity Guarantee, if the investment is worth more than the original investment upon maturity, the investor receives the market value of the investment. If it is worth less than the original investment, the insurance company will top up the investment back to the original amount deposited into the contract.
NOTE: Guarantees do not apply to withdrawals made from the Seg Fund before the contract maturity date. The investor will receive the funds at market value minus any deferred sales charges and taxes if applicable (capital gains if the fund is up, capital losses if the fund is down). The maturity guarantee on the remaining funds will be adjusted proportionately.
Death Benefit Guarantee - 75% or 100% of the initial amount invested, guaranteed to be paid to the beneficiaries upon the annuitant’s death. In the case of a 100% Death Benefit Guarantee, if the investment annuitant dies when the investment is worth more than the original investment upon maturity, the investor receives the market value of the investment. If it is worth less than the original investment, the insurance company will top up the investment back to the original amount deposited into the contract.
Resets – depending on the features of the contract, the maturity and/or the death benefit guarantees can be reset. Some resets are done automatically on the anniversary of the policy, or on the annuitant’s birthday. Other contracts allow for manual resets. Resets may push out the maturity guarantee another 10 or 15 years, depending on the details of the contract.
No proof of insurability needed – the annuitant is not required to be healthy in order to obtain these insurance contracts.
Potential for Creditor Protection – with the right beneficiary designations, and assuming the contract was set up before any law suits or bankruptcy proceedings, seg funds offer the potential to shield your money from creditors (Canada Revenue Agency being one exception). This is a very important feature for business owners who could work hard to build their businesses for many years, only to lose everything to creditors if business goes bad.
Estate Benefits – the Seg Fund contracts come with beneficiary designations which means that the money by-passes probate. We will discuss the benefits of by-passing probate in the Estate Preservation module. In addition, life insurance companies typically pay the money to the beneficiaries within 30 days notice of death. If the money had to go through probate first, it could be tied up for a long time.
Capital losses passed on to the investor – Most mutual funds incur capital gains when sold at a profit or capital losses when sold at a loss. Seg funds have the unique ability to pass on capital losses to the investor on an annual basis, without the investment having to be sold. These capital losses can be applied against capital gains in the 3 years prior to them being issued, or they may be carried forward indefinitely.
All of these features and benefits are included in the Management Expense Ratios, (which are typically somewhat higher than those for a comparable mutual fund investment).
NOTE: The benefits of the Seg Funds must be weighed against the higher cost of the MERs when deciding whether to use Seg Funds versus Mutual Funds as investment vehicles. Higher MERs, mean lower investment returns for the investor on the same underlying fund over a given period of time.

9. Bank Products
Savings accounts, GICs, term deposits, bankers acceptance notes
GICs & term deposits >5 yrs, and bankers acceptance notes NOT covered by CDIC
CDIC limited to $100K per person, per institution
Liquidity varies, good for short-term
Returns are usually 1-2% below corresponding mortgage rates
Real ROR typically below inflation
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Client Initials

10. 4 Types of Investments Mutual Funds Exempt Market Products
Segregated Funds
Bank Products