Segregated Fund Investments are a deferred annuity contract between an insurance company and a policy owner.

The policy owner makes deposits through the contract and the insurance company invests the money in Segregated Funds. Segregated Funds are an asset of the insurance company and are similar, in essence, to money being held in trust for the investor. The “segregated” nature of this type of investment, protects the investor against the insolvency of the insurance company.

Segregated Funds are often compared to a Mutual fund with an insurance wrapper, and as such often provides benefits not found in a mutual fund product.

Guarantees often found in Segregated Funds includes such features as: Creditor protection, Estate efficiency, Deposit as well as Death guarantees.

Whereas, Mutual Funds, are owned by the investor and are managed by the investment management company. The securities in the funds (owned by the investor’s pooled resources) are maintained in safekeeping by the custodian of the fund.