Information Folder

Transcription

Information Folder

EFFECTIVE OCTOBER 2015
ivari Guaranteed Investment Funds
TM
I N F O R M AT I O N
F O L D E R
This Information Folder is not complete without the Fund Facts.
Effective October 2015
ivariTM
INFORMATION FOLDER AND ANNUITY POLICY
Any amount that is allocated to a segregated fund is
invested at the risk of the contract holder(s) and may
increase or decrease in value.
This information folder is published for information purposes and is not a Contract. For the terms of the ivari Guaranteed Investment
Funds Contract, please consult the Annuity Policy. This information folder should be read together with the ivari Guaranteed
Investment Funds Fund Facts. ivari is the sole issuer of the ivari Guaranteed Investment Funds Contract and the provider of the
guarantees under the Contract.
ivari hereby certifies that this information folder provides brief and plain disclosure of all material facts relating to the
ivari Guaranteed Investment Funds annuity contract.
Certified on behalf of ivari by:
Douglas W. Brooks
President and Chief Executive Officer
John O’Hoski
Corporate Secretary
Table of Contents
THE PURPOSE OF THIS INFORMATION FOLDER . . . . . . . . . . . . . . . . . . 1
3. TYPES OF CONTRACTS AVAILABLE . . . . . . . . . . . . . . . . . . . . . . . . 9
KEY FACTS ABOUT ivari GUARANTEED
INVESTMENT FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3.1
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.2
Registered Contracts and TFSA Contracts . . . . . . . . . . . . . . . . 9
What am I getting? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3.2.1 Registered Retirement Savings Plan (RRSP) . . . . . . . . 10
What Guarantees are available? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3.2.2 Registered Retirement Income Fund (RRIF) . . . . . . . . 10
Contract Maturity Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3.2.3 Spousal RRSPs/RRIFs . . . . . . . . . . . . . . . . . . . . . . . 10
Death Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3.2.4 Locked-in Savings Plans (LIRA, LRSP, RLSP) . . . . . . . 10
What Investments are available? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3.2.5 Locked-in Income Plans (LIF, RLIF, PRIF) . . . . . . . . . . 11
How much will it cost? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3.2.6 Tax-Free Savings Account Plans (TFSA) . . . . . . . . . . 11
What can I do after I purchase this Contract? . . . . . . . . . . . . . . . . . . . . 1
4.DEPOSITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
What Information will I receive about my Contract? . . . . . . . . . . . . . . . . 2
4.1
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.2
Making Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.3
Scheduled Pre-Authorized Chequing . . . . . . . . . . . . . . . . . . . 12
Can I change my mind? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Where can I get more Information? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
SUMMARY OF MAIN CONTRACT FEATURES . . . . . . . . . . . . . . . . . . . . 3
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Fee and Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Other Important Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5. FUND SWITCHES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
5.1
5.2
Unscheduled Fund Switches And Fund Switch Fees . . . . . . . . 12
5.3
Early Switch Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
5.4
Scheduled Fund Switches (Dollar Cost Averaging) . . . . . . . . . 13
1.COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6.WITHDRAWALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.1 General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.2 Giving us your instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6.1
1.3 Correspondence you will receive from us . . . . . . . . . . . . . . . . . 7
6.2
Withdrawal Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
6.3
Processing a Withdrawal . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
6.4
Early Withdrawal Fees and Recovery of Expenses . . . . . . . . . 13
2. THE CONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6.5Information Specific to RRIF/LIF/ RLIF/PRIF Contracts . . . . . . 14
2.2
Your Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6.5.1 RRIF Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.3
Effective Date of Your Contract . . . . . . . . . . . . . . . . . . . . . . . . 8
6.5.2 LIF/RLIF Maximum Amount . . . . . . . . . . . . . . . . . . . 14
2.4
Rescission Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
6.5.3Contracts Held As Self-Directed RRIFs
(Including LIF/ RLIF/PRIF) . . . . . . . . . . . . . . . . . . . . . 14
2.1
2.5Effective Minimum Guaranteed Amount of Your Contract . . . . . 8
2.6
Contract Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
7.GUARANTEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.7
Successor Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
7.1
2.8
Joint Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.2Contract Maturity Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.9 Annuitant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.2.1 Contract Maturity Guaranteed Amount . . . . . . . . . . . 15
2.10
Successor Annuitant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.2.2 Contract Maturity Date . . . . . . . . . . . . . . . . . . . . . . . 16
2.11 Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.2.3 Contract Maturity Benefit . . . . . . . . . . . . . . . . . . . . . 16
7.2.4Default Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
7.2.5Default Annuity for Contracts Issued
in Quebec Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
EFFECTIVE OCTOBER 2015
Table of Contents continued
7.3Death Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
11.4.2 Early Withdrawal Fee . . . . . . . . . . . . . . . . . . . . . . . . 29
7.3.1Transactions and Events that Increase or
Decrease the Death Guaranteed amount . . . . . . . . . . 17
11.4.3Early Switch Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
11.4.4Recovery of Expenses . . . . . . . . . . . . . . . . . . . . . . . 29
7.3.2Resets of the Death Guaranteed Amount . . . . . . . . . . 17
11.4.5 Additional Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
7.3.3 Death Benefit Date . . . . . . . . . . . . . . . . . . . . . . . . . . 18
7.3.4 Death Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
7.3.5 Process for Determining the Death Benefit . . . . . . . . 18
13.COMPENSATION PAID TO ADVISORS . . . . . . . . . . . . . . . . . . . . . . 29
8. THE INVESTMENT OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
14.OTHER IMPORTANT INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . 29
8.1
14.1
Claims of Creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
8.1.1 What is a Segregated Fund? . . . . . . . . . . . . . . . . . . . 19
14.2
Fundamental Changes And Other Changes . . . . . . . . . . . . . . 30
8.1.2 ivari Guaranteed Investment Funds . . . . . . . . . . . . . . 19
14.3
Limitation of Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
8.1.3 ivari Guaranteed Investment Portfolios . . . . . . . . . . . . 19
8.1.4 Index Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
8.1.5 Derivatives and their Permissible Use . . . . . . . . . . . . 20
8.1.6 The Risks of Investing in Segregated Funds . . . . . . . . 20
8.2
Investment Objective, Policy and Restrictions . . . . . . . . . . . . . 25
8.3
Investment Management of the Funds . . . . . . . . . . . . . . . . . . 26
12.TERMINATION OF THE CONTRACT . . . . . . . . . . . . . . . . . . . . . . . . 29
15.TAX IMPLICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
15.1
15.2
Taxation of Non-Registered Contracts . . . . . . . . . . . . . . . . . . 30
15.2.1Taxation of Contract Maturity Benefit and
Death Benefit Top-Up . . . . . . . . . . . . . . . . . . . . . . . . 31
15.3
Taxation of Registered Contracts . . . . . . . . . . . . . . . . . . . . . . 31
9. HOW WE CALCULATE THE VALUE OF YOUR INVESTMENT . . . . . . 26
15.3.1
RRSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
9.1
Net Asset Value of a Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.3.2LIRA/LRSP/RLSP . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
9.2
Unit Value of a Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.3.3RRIF/LIF/RLIF/PRIF . . . . . . . . . . . . . . . . . . . . . . . . . 31
9.3
Valuation Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.3.4
TFSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
9.4
Market Value of the Contract . . . . . . . . . . . . . . . . . . . . . . . . 26
15.3.5Taxation of Contract Maturity Benefit and Death
Benefit Top-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
10.SALES CHARGE OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
16.CUSTODIAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
10.1
10.2
Initial Sales Charge Option (ISC) . . . . . . . . . . . . . . . . . . . . . . 27
17.AUDITOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
10.3
Deferred Sales Charge Option (DSC) . . . . . . . . . . . . . . . . . . . 27
10.3.1Deferred Sales Charge (DSC) Upon Withdrawal . . . . . 27
18.MATERIAL CONTRACTS AND MATERIAL FACTS . . . . . . . . . . . . . . 31
10.4
Free Withdrawal Privilege For DSC Units . . . . . . . . . . . . . . . . 27
19.INTEREST OF MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
11.FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
20.GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
11.1
ANNUITY POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
11.2Management Fee, Insurance Fee And Operating Expenses . . . 28
11.3Management Expense Ratio . . . . . . . . . . . . . . . . . . . . . . . . . 28
Please see the Fund Facts for more information about MERs.
RSP ENDORSEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
RIF ENDORSEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
11.4Switch Fees, Early Withdrawal Fees, Early Switch Fees
and Recovery Of Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 28
FUND FACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
HOW TO READ AN ivari GIF FUND FACTS . . . . . . . . . . . . . . . . . . . . . . 55
11.4.1Switch Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Table of Contents continued
MONEY MARKET AND FIXED INCOME
ivari Canadian Money Market GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
ivari Canadian Bond GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
ivari TD Income Advantage GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
ivari Canadian Short-Term Bond GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
CANADIAN BALANCED
ivari Canadian Balanced GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
ivari Canadian Fixed Pay GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
ivari Fidelity Canadian Balanced GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
ivari Fidelity Canadian Asset Allocation GIF . . . . . . . . . . . . . . . . . . . . . . . 73
ivari TD Dividend Balanced GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
ivari TD Dividend Income GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
CANADIAN EQUITY
ivari Canadian Equity GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
ivari Canadian Large Cap Index GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
U.S. EQUITY
ivari U.S. Equity Index GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
GLOBAL EQUITY
ivari Global Growth GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
ASSET ALLOCATION PORTFOLIOS
ivari CI Conservative GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
ivari CI Canadian Balanced GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
ivari CI Balanced GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
ivari CI Growth GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
ivari CI Maximum Growth GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
ivari Quotential Balanced Income GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
ivari Quotential Balanced Growth GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
ivari Quotential Growth GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
APPENDIX A – INVESTMENT OBJECTIVES AND
INVESTMENT POLICIES OF THE FUNDS . . . . . . . . . . . . . . . . . . . . . . . 104
APPENDIX B – UNDERLYING FUND AND FUND COMPANY
INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
APPENDIX C – PRINCIPAL RISKS OF THE FUNDS . . . . . . . . . . . . . . . 116
APPENDIX D – ivari GUARANTEED INVESTMENT FUND FEES . . . . . . 120
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THE PURPOSE OF THIS INFORMATION FOLDER
Death Benefit
This information folder is not a policy or a contract – it explains the features
of your Contract. This folder does not confer any rights on you or any
obligations on us.
This guarantee protects the value of your investment if you die during
the term of the contract (if you are the annuitant). The benefit is paid to
someone you name.
The capitalized terms in this information folder are defined in the
Annuity Policy.
The death benefit applies if you die before the maturity date. It pays the
greater of:
KEY FACTS ABOUT ivari GUARANTEED INVESTMENT FUNDS
This summary briefly describes the basic things you should know before
you apply for this individual variable insurance contract. This summary is
not your contract. A full description of all the features and how they work
is contained in this information folder and your contract. Review these
documents and discuss any questions you have with your Advisor.
• The market value of the Funds, and
• 100% of the money you put in the Funds, less proportional withdrawal(s).
• T he death guaranteed amount is automatically reset to the market value, if
higher, on the policy anniversary date until the year the annuitant turns 75.
For full details about how these guarantees work, see sections 7.2 Contract
Maturity Benefit, 7.3 Death Benefit and section 7.3.2, Resets of the Death
Guaranteed Amount in this information folder.
What am I getting?
You are applying for an insurance contract between you and ivari. It gives
you a choice of investments and guarantees.
You can:
• Choose investment options
• Name a person to receive the death benefit
• Name a person to own the contract after your death
• Name yourself or another person to be the annuitant
• Choose a registered or non-registered contract
• Receive regular payments now or later, depending on your age
The choices you make may affect your taxes and guarantees. Ask your
Advisor to help you make these choices.
The value of your contract can go up or down. The guarantees provide
some protection for your investment. Please see section 7, Guarantees for
details.
What Guarantees are available?
Your contract has maturity and death benefit guarantees. The benefits are
based on the age and life of the annuitant. The guarantees provide some
protection for your investments. You can also get added protection from an
annual death benefit reset.
You pay fees for this protection. The fees are explained below under How
much will it cost?
Any withdrawals you make will reduce the guarantees. Please see
section 7 Guarantees.
What Investments are available?
You can invest in segregated funds. We explain the segregated fund options
in the Fund Facts.
ivari guarantees the maturity and death benefits. ivari does not guarantee
the performance of the segregated funds. Carefully consider your tolerance
for risk when you select an investment option.
Your investment may go up or down.
How much will it cost?
The Funds and the sales charge options you select affect your costs.
You can choose up-front (initial) or deferred sales charges. For full details
see section 10, Sales Charge Options.
Fees and expenses are deducted from the segregated funds. The fees pay
for the insurance benefits including resets, the management of the Funds
and taxes. Management expense ratios (MERs) express the percentage of
the segregated fund used to pay for fees and expenses for the segregated
fund. The MER is in the Fund Facts for each segregated fund.
If you make certain transactions or other requests, you may be charged
separately for them. These include withdrawals, early withdrawals, early
switches or more than four switches per year.
Please see the section 11, Fees for details.
What can I do after I purchase this Contract?
If you wish, you can do any of the following:
Contract Maturity Benefit
Transfers: You may switch from one Fund to another. See section 5,
Fund Switches for details.
This guarantee protects the value of your investment on December 31st of
the year the annuitant turns 100, unless the annuitant dies first. On this
date, you will receive the greater of:
Withdrawals: You can withdraw money from your contract. If you decide to
withdraw money, this will affect your guarantees. You may also need to pay
a fee and taxes. See section 6, Withdrawals for details.
• The market value of the Funds, or
Deposit: You may make lump-sum or regular investments. See section 4,
Deposits for details.
• 75% of the money you put into the Funds, less proportional withdrawal(s).
1
Pay-out annuity: On the Contract Maturity Date, the contract will end
and an annuity contract will replace it unless you select another option.
See section 7.2.4. Default Annuity.
Certain restrictions and other conditions may apply. Review the contract for
your rights and obligations and discuss any questions with your Advisor.
What Information will I receive about my Contract?
We will tell you at least once a year the value of your investments and any
transactions you made.
We print audited annual financial statements and unaudited semi-annual
financial statements for the Funds. These are available on our website or
you can request a copy by contacting us.
The current Fund information can be found in the Fund Facts pages on our
www.ivari.ca website after the audited annual segregated fund financials
are made available.
Can I change my mind?
Yes, you can:
• Cancel the contract
• Cancel any deposit you make, or
• Cancel Fund allocation decisions.
To do any of these, you must tell us in writing within two business days
of the earlier of:
• The date you received confirmation, and
• Five business days after the confirmation is mailed to you.
• If you:
(a) c ancel the contract or a deposit the amount will be returned to you.
(b) cancel a Fund allocation, the original Fund allocation will be restored.
The amount returned or restored will be the lesser of the amount invested
and the value of the Fund if it has gone down.
We will refund any sales charges or other fees you paid.
If you change your mind about a specific Fund deposit or switch, the right to
cancel only applies to that transaction.
For more information, see section 2.4, Rescission Rights for details.
2
Where can I get more Information?
You may call us at 1-800-846-5970 or send us an e-mail to
[email protected]. Information about our company and the products
and services we provide is on our website at www.ivari.ca.
For information about handling issues you are unable to resolve with
your insurer, contact the OmbudService for Life and Health Insurance at
1-800-268-8099 or on the internet at www.olhi.ca
If you live in the Province of Quebec, you may also contact Autorité des
marchés financiers (Centre d’information) Place de la Cité, Tour Cominar,
2640 boul. Laurier, Québec G1V 5C1. Telephone : Montréal : (514) 395-0337,
Québec : (418) 525-337, Toll Free : 1 877-525-0337 or www.lautorite.qc.ca
For information about additional protection available for all life insurance
contractholders, contact Assuris, a company established by the Canadian
life insurance industry. See www.assuris.ca for details.
For information regarding how to contact the insurance regulator in your
province visit the Canadian Council of Insurance Regulators website at
www.ccir-ccrra.org.
Any amount that is allocated to a segregated fund is invested
at the risk of the contract holder(s) and may increase or
decrease in value.
SUMMARY OF MAIN CONTRACT FEATURES
The following table summarizes the main features of the ivari Guaranteed Investment Funds Contract.
General Information
Plan Types
• RRSP, LIRA, RLSP, RRIF, LIF, RLIF, PRIF, TFSA and non-registered
See section 3, Types of Contracts Available for more information
Latest age to make deposits
• Non-Registered, RRIF, LIF, RLIF, PRIF, TFSA Contracts
– The day before the Annuitant turns 76
• RRSP, LIRA, RLSP Contracts (pension jurisdiction requiring an annuity at age 80)
– December 31st of the year the Annuitant turns 71**
• LIF Contracts regulated by Newfoundland and Labrador
– December 31st of the year the Annuitant turns 71**
See section 4, Deposits and section 10, Sales Charge Options for more information
** Or latest age to hold under the Income Tax Act (Canada), except that it cannot exceed the day before
the Annuitant’s age 76.
Deposits
• Non-payout Contracts: Minimum $500 per Contract/ $100 per Fund
• Payout Contracts (RRIF, LIF, RLIF or PRIF plans): Minimum $10,000 per Contract/$100 per Fund
•The monthly Pre-Authorized Cheque (PAC) Deposit minimum amount is $50. The minimum allocation
per Fund is $25.
• Deposits of $2,000,000 or more require pre-approval
See section 4, Deposits for more information
We reserve the right to refuse any Deposit to a Fund if it is outside our minimum or maximum
requirements according to the Administrative Rules in place at that time. WE RESERVE THE RIGHT TO
CHANGE OR MODIFY THESE RULES FROM TIME TO TIME.
Fund Switches
•4 free unscheduled switches per calendar year, thereafter we will charge a switch fee of 2% of the
amount switched
• Minimum switch amount of $100 and a minimum switch amount of $25 per Fund
•We may also charge an early switch fee of 2% of the amount switched if you make an unscheduled
switch within 90 days of allocating a Deposit or a switch to the Fund.
See section 5, Fund Switches for more information
Withdrawals
• Minimum withdrawal amount of $100 and a minimum of $25 per Fund
•We may charge an early withdrawal fee of 2% of the amount withdrawn if the unscheduled withdrawal
is made within 90 days of the Deposit.
See sections 6, Withdrawals and 10, Sales Charges for more information.
3
Guarantees
•Calculated on the Contract Maturity Date, which is December 31st of the year the last surviving
Annuitant turns 100, or the last Valuation Date of the year if December 31st is not a Valuation Date.
The Contract Maturity Date is age 80 for locked-in plans registered under the laws of Newfoundland
and Labrador and age 90 for locked-in plans registered under the laws of New Brunswick.
• Calculated as the greater of:
(i) the 75% Contract Maturity Guaranteed Amount, and
(ii) the Market Value of the Contract.
See sections 7.2, Contract Maturity Benefit and 9.4, Market Value of the Contract for more information
Death Benefit
• Calculated on the Death Benefit Date.
• Calculated as the greater of:
(i) the Death Guaranteed Amount, and
(ii) the Market Value of the Contract.
See sections 7.3, Death Benefit and 9.4, Market Value of the Contract for more information
Resets
• Resets may increase the value of the Death Guaranteed Amount of the Contract.
•Resets are performed automatically every year, on the Policy Anniversary Date, if the Market Value of
the Contract is greater than the value of the Death Guaranteed Amount.
•A final reset of the Death Guarantee Amount will be made on the Policy Anniversary Date of the year
the Annuitant turns age 75.
See section 7.3.2, Resets of the Death Guaranteed Amount for more information.
Fee and Investment Options
Investment Options
•The Funds available under this Contract are diversified by asset class, geographic region and
investment style.
• Individual funds as well as portfolio or asset allocation funds are available.
• Fund Units are valued daily on each Valuation Date.
Please consult the Fund Facts for the investment objective, policy and risks associated with
each Fund.
Sales Charges
• There are two sales charge options available for the Funds in the Contract:
(i) Initial Sales Charge (ISC); and
(ii) Deferred Sales Charge (DSC).
•Under the ISC option, a sales charge that you negotiate with your Advisor is deducted from the
Premium before Units are allocated to your Contract. The initial sales charge is paid as compensation
to your Advisor. The Fund Units allocated to your Contract will be ISC Units.
•Under the DSC option, we pay your Advisor compensation at the time of the Deposit, and the full
Premium is used to allocate Units to the Contract. You pay us a declining fee if you make a withdrawal
within the first 6 years of the Deposit. Thereafter, there is no DSC fee on those Units. The Fund Units
allocated to your Contract will be DSC Units.
•You are entitled to a 10% free withdrawal each year of the DSC Units allocated to the Funds within
the Contract. This privilege is prorated in the first year of Deposit. Any unused portion of the privilege
cannot be carried forward to future years.
• You may hold both DSC and ISC Units in the same Contract.
See section 10, Sales Charge Options for more information
4
Fee and Investment Options
Fees
• The fees charged to the Funds in this Contract consist of:
– management fees
– insurance fees, and
– operating expenses
•Each Fund pays a management fee to us for providing the management of the Fund, commissions and
service fees payable to Advisors.
•Each Fund pays an insurance fee for the costs of providing the Maturity Benefit, Death Benefit and
Reset of the Death Guaranteed Amount.
• Each Fund also pays its own operating expenses.
• Each Fund also pays the applicable taxes.
•Management fees, insurance fees, operating expenses and applicable taxes are deducted daily before
the calculation of the Unit Value of the Fund.
•Management fees, insurance fees, operating expenses and applicable taxes vary for each Fund and
are incorporated in the Management Expense Ratio (MER) of a Fund.
•Where the Fund invests in an Underlying Fund(s), the management fee and the MER of the Fund
includes the corresponding management fee and the MER of the Underlying Fund(s), and there is no
duplication of fees for the same service.
Transactional Fees
•In addition to these fees, there are certain transactional fees we can charge that are intended to
discourage behaviour that can negatively impact the returns of the Funds. Specifically, we will charge a:
– switch fee of 2% of the amount switched if you make more than 4 unscheduled switches in one year.
• We may also charge:
– a n early withdrawal fee of 2% of the value of Units withdrawn if you make a withdrawal within
90 days of allocating those Units to the Fund
– a n early switch fee of 2% of the value of Units switched if you make a switch within 90 days of
allocating a Deposit or a switch to the Fund
See section 11, Fees for more information
Please consult Appendix D for the management fee, insurance fee, maximum insurance fee
and MER of each Fund.
5
Other Important Information
Fundamental Changes
•You have certain rights if we make changes that are considered fundamental.
A fundamental change is:
– an increase in the management fee of a Fund;
– a change in the fundamental investment objectives of a Fund;
– a decrease in the frequency with which Units of a Fund are valued; or
– an increase in the maximum insurance fee of a Fund.
See section 14.2, Fundamental Changes and Other Changes for more information
Tax
•You will be allocated income and capital gains and losses based on the number of Units of each Fund
allocated to you. You may be taxed on the income allocated and gains realized.
•Switches, withdrawals, discontinuance of a Fund and reallocation to another Fund, substitution of an
Underlying Fund may result in a taxable event.
•Where required, we will issue a tax slip following the end of the year showing the income, capital gain
and capital losses for Units of Funds allocated to you.
See section 15, Tax Implications for more information
Financial Information about the Funds
Please review the Fund Facts in this Information Folder before entering into this Contract.
•Audited annual financial statements and unaudited semi-annual financial statements are available
upon request by writing to us at our Head Office at 500 – 5000 Yonge Street, Toronto, Ontario,
M2N 7J8. Attention: Investment Products, Operations. You may also access these documents at
www.ivari.ca.
Any amount that is allocated to an ivari Guaranteed Investment Funds Contract is invested at the risk of the contract holder(s) and may
6
1.COMMUNICATIONS
1.1
General Information
In this Information Folder, “you”, “your” and “Owner” mean the
person who is the Owner of the Contract or holder of rights under
the Contract. “We”, “our”, “us”, and the “Company” mean ivari.
ivari is a life insurance company established under federal legislation.
With a national network of thousands of independent Advisors,
ivari provides a full range of insurance products designed to
help Canadians and their families make the right choice for their
protection needs. The people, products and service that make up
ivari have stood the test of time and have been around for over
80 years in the Canadian marketplace. Now owned by Wilton Re,
we are starting a fresh, new conversation about insurance.
Wilton Re is a life (re)insurance company specializing in the
acquisition and management of life and annuity businesses as
well as with assisting companies with product development,
underwriting and new business strategies designed to serve the
middle market.
Please visit www.ivari.ca to learn more about ivari.
1.2
Giving us your instructions
When we ask you to “notify us in writing,” please send your
correspondence to our head office at: ivari, 500 – 5000 Yonge
Street, Toronto, Ontario, M2N 7J8.
1.3
Correspondence you will receive from us
When we say “we will notify you,” we mean that we will send a
written notice to your address as shown in our files.
From time to time we will notify you of important information or
request your instructions. It is important for you to notify us if your
address changes to ensure you receive information about your
policy. We are not responsible for any missed opportunities or
losses if your address changes and it is not communicated to us.
Where the Contract is held in nominee name, our correspondence
to you may be directed to a third party based on the authorization
you have given to the third party.
The annual audited and semi-annual unaudited financial statements
for the Funds are also available at any time on our website
(www.ivari.ca).
Current performance of the Funds and their corresponding Fund
Facts pages are available on our website (www.ivari.ca).
2.
THE CONTRACT
2.1
General Information
ivari Guaranteed Investment Funds is an insurance contract, legally
known as an individual variable insurance contract. The Contract is
an annuity because at the Contract Maturity Date, an annuity will be
issued based on your life, unless you instruct us otherwise.
If you choose to register the Contract as a retirement plan,
an endorsement will be issued. The endorsement overrides
the provisions of your Contract that are inconsistent with the
endorsement.
When you allocate premiums, also referred to as a “Deposit”, to a
Fund, you do not become a unitholder of the segregated funds or
Underlying Funds available under the Contract. Instead, you acquire
certain benefits under the Contract. To determine the extent of
your benefits and to record your interest under your Contract, we
use a notional measure called “Units”. You do not legally own Units
because at law, the assets of the segregated funds are owned by
the Company. These assets are required to be segregated from the
Company’s other assets. Generally speaking, the effect of keeping
the segregated funds separate from other assets is to give contract
holders prior claim over other claimants against the assets of the
segregated fund if the Company is insolvent. Please be mindful of
this when you read the Contract documents.
We may change our Administrative Rules at any time without notice
at our discretion to reflect corporate policy, economic and legislative
changes. We have the right in accordance with our Administrative
Rules to refuse to open new Contracts.
We have the right to limit the number of Contracts held by
you or the Deposits made to any of them.
2.2
Your Contract
Your “Contract” with us consists of:
• the attached ivari GIF annuity policy
• u pon request, semi-annual unaudited financial statements for the
Funds available within the Contract,
• a ny endorsements or riders incorporated by reference into the
annuity policy at the time of its issue
• the application
• notices under the terms of the Contract, where applicable and
• u pon request, copies of the Simplified Prospectus, Annual
Information Form and audited Financial Statements of the
Underlying Funds.
• a mendments that we agree to in writing after your Contract
is issued
We will send you or your nominee:
• statements for the Contract at least annually,
• u pon request, annual audited financial statements for the Funds
available within the Contract,
7
The following information presented in the Fund Facts documents
also forms part of the Contract:
Any sales charges or other fees charged to you for the Deposit or
switch will be reversed.
• Name of the Contract and the segregated funds
• Management Expense Ratio, fees and expenses
A cancellation of a Fund switch will include a reversal of any fees
resulting from the switch but will not be refunded in cash.
• Risk disclosure
• Right to cancel
The Fund Facts documents are included in Information Folder are
also available on our website at www.ivari.ca. The information
provided in the Fund Facts is accurate and complies with the
requirements of the Individual Variable Insurance Contract Guideline
as of the date the information was prepared. Any error in the Fund
Facts information described above will be remedied by correction of
the error, where reasonable, but will not entitle you to benefit from
the error.
You may also cancel the Contract, any deposit(s) or Fund allocation
(switch) in accordance with the rules described in section 2.4
(Rescission Rights).
2.3
Effective Date Of Your Contract
Your Contract is effective on the later of the Valuation Date of the
first Deposit and the acceptance of the Contract in accordance
with our Administrative Rules. Delivery of the Annuity Policy does
not constitute our acceptance of a Contract. We will send you a
transaction confirmation for the Deposit. It will state the Effective
Date of the Contract. The Effective Date is also the date on which
the Policy Anniversary Date is set. In the case of leap years, if the
Effective Date is on February 29 th, the Policy Anniversary will be
set at February 28th.
2.4
Rescission Rights
You may cancel the Contract, any Deposit(s) or any Fund allocation
(switch) provided you send us written notice requesting the
cancellation within two Business Days of the earlier of (i) the date
you receive the transaction confirmation and (ii) five Business Days
after it is mailed by us.
On the Valuation Date we receive your request for cancellation of:
(a) the Contract or a Deposit, the value of cancelled Units will be
refunded to you.
(b) a n allocation between Funds (switch), the value of the
cancelled Units will be returned to the immediately preceding
Fund allocation.
8
The value of the cancelled Units will be the lesser of:
(i) the market value of the Units on the Valuation Date of the
Deposit or switch; and
(ii) the market value of the Units on the Valuation Date your
cancellation request was received by us.
A request for cancellation must clearly identify the specific
transaction you wish to cancel.
2.5Effective Minimum Guaranteed Amount of your Contract
Subject to any applicable legislative requirements, if all the
Guaranteed Amounts, including the Death Guaranteed Amount and
the Contract Maturity Guaranteed Amount are less than $500, we
reserve the right to terminate the Contract upon 30 days’ notice
and forward to you the Market Value of the Contract, minus of any
applicable charges, fees and taxes.
2.6
Contract Owner
You are the Owner of the Contract. As Owner, you are entitled to
all rights under the Contract. Your rights may be limited if you have
named an irrevocable Beneficiary, if you have assigned the Contract
or if your Contract is a registered plan.
The Owner must be a Canadian resident at the time the Contract
is issued.
The Owner may be an individual, a corporation or more than one
individual as permitted by our current Administrative Rules and
applicable laws.
You can change the Owner of the Contract by notifying us in writing.
A change of ownership must be in accordance with governing
legislation and the Administrative Rules that we have in place at that
time. There may be tax implications to such change and you should
discuss the matter with your Advisor prior to making a change.
Subject to the terms in section 2.8, a change in ownership will
not change the Contract features, including the Contract Maturity
Benefit and the Death Benefit.
You cannot borrow money from the Contract.
You may be able to use the Contract as security for a loan by
assigning it to the lender. The rights of the lender may take
precedence over the rights of any other person having a claim over
the Contract. An assignment of this Contract may restrict or delay
certain transactions otherwise permitted.
2.7
Successor Owner
You may designate a Successor Owner, who will assume Ownership
of the Contract upon your death. This designation may be useful
when you have designated an Annuitant other than yourself or a
Successor Annuitant. In naming a Successor Owner, upon your
death ownership of the Contract will be transferred directly to the
Successor Owner rather than to the executor of your estate. In
Quebec, the Successor Owner is called the subrogated policyholder.
If you are also the Annuitant and have not named a Successor
Annuitant, the Contract will end on your death and the Death
Benefit will be paid to your Beneficiary or your estate. In that
case, the ownership of the Contract will not be transferred to the
Successor Owner.
2.8
Joint Owners
The Contract can be jointly owned or held by two Owners. The type
of joint ownership available for this Contract is “Joint Tenancy with
Right of Survivorship”. Under this type of ownership, each joint
Owner holds an undivided interest in the entire Contract. Both joint
Owners have to agree to changes and transactions made within
the Contract. On the death of one Owner, who is not the Annuitant,
the surviving Owner will become the sole Owner. This form of
ownership is not available in Quebec.
2.10 Successor Annuitant
For non-registered plans, you may designate any person as
Successor Annuitant who will become the Annuitant upon the
primary Annuitant’s death.
You may only designate your spouse or common-law partner (as the
terms are defined under the Income Tax Act (Canada)) as Successor
Annuitant if the Contract is issued as a TFSA or Retirement Income
Fund (“RIF”) plan. The designation of your spouse or common-law
partner as Successor Annuitant and the removal of a previously
named Successor Annuitant must be made while the Annuitant is
alive.
Upon the death of the primary Annuitant, if you have named
a Successor Annuitant, the Contract will continue and no
Death Benefit will be payable.
2.9Annuitant
2.11Beneficiary
The Annuitant is the person on whose age and life the Contract
Maturity Benefit is measured and on whose death the Death Benefit
is payable. The Annuitant is designated by you on your initial
application. If you choose to set up your Contract as a registered
plan, you must be the Annuitant. The Annuitant must be a Canadian
resident at the time you open your Contract. We have the right in
accordance with our Administrative Rules to:
You may also designate one or more beneficiaries under your
Contract. The Beneficiary is the person who will receive the Death
Benefit on the death of the last surviving Annuitant.
(i) r equire medical evidence of the health of the Annuitant or
Successor Annuitant and refuse to accept Deposits if the
medical evidence is unsatisfactory or incomplete.
(ii) require proof of age or sex of any person upon whose age or sex
any payment depends. If this information has been misstated,
we reserve the right to recalculate the withdrawal benefits to
those that would have been provided for the Annuitant’s correct
age or sex.
Subject to the terms of the Contract and our consent, you may, for
non-registered plans, request a change of Annuitant under your
Contract by notifying us in writing. Before consenting to such a
change, we may require, among other things, acceptable medical
evidence of the new Annuitant’s health. When the Annuitant is
changed, the Contract Maturity Date and the latest age to
Deposit will be based on the new annuitant’s age. Please
be mindful and discuss the effect of the change with your
Advisor.
We have the right to limit the number of Contracts with the
same Annuitant.
You can designate the Beneficiary as revocable or irrevocable.
If you designate a revocable Beneficiary, you may change the
Beneficiary at any time while the Annuitant is living, by notifying
us in writing. The change will be effective when you sign the
declaration changing the Beneficiary, except that we will only be
responsible for acting upon information that has been filed with us
at our Head Office before the death benefit has been paid.
Please be mindful if you designate the Beneficiary as
irrevocable, you may not make certain changes to the
Contract without the consent of the irrevocable Beneficiary.
In the Province of Quebec, the designation of your married or civil
union spouse as Beneficiary is considered irrevocable unless the
designation is specifically made revocable.
If you do not designate a Beneficiary, you or your estate will
receive the Death Benefit under your Contract on the death of the
Annuitant.
Special rules apply to Contracts held in nominee name, please
review with your Advisor.
3.
TYPES OF CONTRACTS AVAILABLE
3.1
General Information
The Contract can be set up as non-registered or registered.
3.2
Registered Contracts and TFSA Contracts
The limitations described in this section are exceptions to the
general information provided in the information folder and apply
to registered contracts only. Registered plans are tax efficient
investment vehicles. There are also legislative restrictions on
contracts issued as registered plans.
9
The registered Plans available include:
3.2.2 Registered Retirement Income Fund (RRIF)
• Registered Retirement Savings Plan (RRSP),
• Spousal RRSP,
• Locked-In Retirement Account (LIRA),
• Locked-In Retirement Savings Plan (LRSP),
A RRIF must pay you a minimum amount each calendar year,
starting by the end of the year after the year in which you purchase
the RRIF. A RRIF is funded by a transfer from an RRSP. You are the
Owner and the Annuitant of a RRIF.
• Restricted Locked-In Savings Plan (RLSP),
• Registered Retirement Income Fund (RRIF),
• Spousal RRIF,
• Life Income Fund (LIF),
• Prescribed Retirement Income Fund (PRIF),
• Restricted Life Income Fund (RLIF), and
• Tax-Free Savings Account Plan (TFSA).
Not all variations of registered Contracts may be available to you
depending on the source of the initial Deposit and the province of
purchase.
We have the right to limit the number of Contracts held by
you or the Deposits made to any of them. Please see section
4, Deposits, for additional information.
When legislation permits, you can elect to have the RRIF minimum
percentage based on the age of your spouse or common-law
partner (as the terms are defined under the Income Tax Act
(Canada)). You must make this election at the time you purchase the
Contract and once this election is made, it cannot be changed while
the Contract is in force.
3.2.3 Spousal RRSPS/RRIFS
An RRSP that is funded by your spouse and owned by you, is a
Spousal RRSP. You are the Owner and the Annuitant of a Spousal
RRSP and your spouse is the contributor of Deposits.
For registered and TFSA Contracts:
• You are both the Owner and the Annuitant.
A RRIF that is funded by a transfer from a Spousal RRSP and owned
by you is a Spousal RRIF. You are the Owner and the Annuitant of a
Spousal RRIF.
• You cannot borrow money from the Contract.
3.2.4 Locked-In Savings Plans (LIRA, LRSP, RLSP)
• Y ou cannot use the Contract as security for a loan or assign it to
a third party.
• T he Contract will be registered under the provisions of the
Income Tax Act (Canada).
• Y ou do not pay taxes on earnings as long as they remain inside
the plan. With the exception of a TFSA, any money withdrawn
from a registered Contract is taxable in your hands. We will
deduct any required withholding tax from the amount you
withdraw.
A LIRA (called LRSP in certain jurisdictions) is registered as an
RRSP for tax purposes with contractual terms that are specially
designed to hold pension funds for a former pension plan member,
former spouse or common-law partner, or survivor. You cannot
access assets in a LIRA until you reach a certain age, which
depends on the provincial legislation that governs your plan.
3.2.1 Registered Retirement Savings Plan (RRSP)
Once you reach the end of the year that you attain age 71 (or the
latest age to own under the Income Tax Act (Canada)), you must
convert the RRSP to:
• a RRIF,
• an immediate annuity, or
• cash (in one lump sum).
Unless you indicate otherwise, if the Contract is in force on
December 31st of the year you turn 71 (or the latest age to own
under the Income Tax Act (Canada)), we will automatically change
the registration status from an RRSP to a RRIF.
10
The RRIF Minimum Amount is calculated by multiplying the closing
Market Value of the Contract on December 31st of the previous year
by the percentage determined under the Income Tax Act (Canada).
A RLSP is only available for locked-in funds governed by the
federal pension legislation. It is designed to accept transfers from
a Restricted Life Income Fund (RLIF) for individuals who no longer
wish to receive income from the RLIF.
Once you reach the end of the year that you attain age 71 (or the
latest age to own under the Income Tax Act (Canada), you cannot
take the proceeds in cash, you must convert the LIRA, RLSP or
LRSP to:
• a LIF, RLIF or PRIF (except in Manitoba) where applicable; or
• a life annuity.
Unless you indicate otherwise, if the Contract is in force on
December 31st of the year you turn 71 (or the latest age to own
under the Income Tax Act (Canada)), we will automatically change
the registration status from a LIRA/ LRSP to the applicable LIF as
allowed under pension legislation. In the case of a:
• S askatchewan regulated LIRA, we will automatically change the
registration status from a LIRA to a PRIF.
• F ederally regulated RLSP, we will automatically change the
registration status from a RLSP to a RLIF.
3.2.5 Locked-In Income Plans (LIF, RLIF, PRIF)
For a LIF, RLIF or PRIF, the Contract is registered as a RRIF for
tax purposes
A LIF, RLIF and PRIF are vehicles used to hold and pay out
pension funds.
A LIF, RLIF or PRIF Contract may only be issued at the ages
permitted by the applicable pension legislation governing the former
pension plan.
The minimum initial Deposit required to issue your Contract is
$500 or $10,000 for a RRIF, LIF, RLIF or PRIF plan. The minimum
that can be allocated to a specific Fund is $100. Each additional
Deposit to the same Fund must be at least $100. Subject to our
current Administrative Rules, the monthly minimum Pre-Authorized
Chequing (PAC) Deposit amount is $50. The minimum allocation per
Fund is $25.
You need our prior written approval for Deposits above
$2,000,000.00.
When transferred, spousal rights prescribed under pension
legislation are preserved unless otherwise waived. Some
jurisdictions may require that you obtain spousal consent or a
spousal waiver form before we can facilitate such a transfer.
We have the right in accordance with our Administrative Rules to:
You must withdraw a minimum amount each calendar year, starting
by the end of the calendar year after the year in which you open a
LIF, RLIF or PRIF. For a LIF and RLIF, there is a maximum amount
that may be withdrawn each calendar year.
Depending upon the legislation governing your former pension plan,
a LIF may require you to purchase a life annuity with the balance
of the Funds by a certain date before the Contract Maturity Date.
Payment of the annuity fulfils our obligations under the Contract in
full. Please consult your LIF endorsement and your Advisor
for more information.
3.2.6 Tax-Free Savings Account Plans (TFSA)
For a TFSA, the Contract is registered as a TFSA for tax purposes.
The Owner must be a minimum of 18 years of age.
Your TFSA Deposits are not tax deductible. Any unused TFSA
contribution room will accumulate and can be carried forward to
subsequent years.
Withdrawals are not subject to income tax and will restore your
contribution room equal to the withdrawal amount(s) in the following
calendar year. If you re-contribute amounts in the same year that
you withdraw from a TFSA, you may be subject to substantial
penalties imposed by the Canada Revenue Agency (CRA).
No tax is payable on earnings accumulated in the Contract.
4.DEPOSITS
4.1
Plan type
Latest age to deposit
Non-registered, RRIF, LIF, RLIF, PRIF
and TFSA
The day before the
Annuitant turns 76
RRSP, RLSP and LIRA, Newfoundland December 31st of the year
and Labrador LIF
the Annuitant turns 71*
• refuse to accept Deposits
• limit the amount of Deposits allocated to a Fund
• refund Deposits previously accepted within 90 days
4.2
Making Deposits
Until the latest age to make a Deposit and before the Contract
Maturity Date and the death of the Annuitant, you may make
Deposits, subject to the Administrative Rules in place at that time.
These restrictions are in addition to any age restrictions on Deposits
imposed by law.
You may elect to make a Deposit under the Initial Sales Charge
(ISC) or the Deferred Sales Charge (DSC) option.
If you choose the ISC option, a sales charge between 0 and 5%,
(to be negotiated between you and your Advisor) will be deducted
from the Premium for investment before we allocate Units to the
Contract. The remaining amount will be divided by the Unit Value
of the Fund, effective on the Valuation Date of the Deposit, to
determine the number of the applicable Units of the Fund to be
allocated to the Contract.
If you choose the DSC option, the entire Premium will be divided
by the Unit Value effective on the Valuation Date of the Deposit to
determine the number of the applicable Units of the Fund to be
allocated to the Contract. Under this option, a sales charge will be
deducted on a declining scale from any withdrawals made within
the first 6 years of the Effective Date of the Contract. Please see
section 10.3.1, Deferred Sales Charge (DSC) Upon Withdrawal for
more information.
General Information
The latest age for Deposits into a Contract varies with the type of
Contract you select.
*Or the latest age to hold under the Income Tax Act (Canada),
except that it cannot exceed the day before the Annuitant’s age 76.
All Deposits must be made in Canadian dollars.
If we do not receive your Deposit and all of the necessary
documents in good order within the required period of time set out
in our Administrative Rules, we will cancel the Units allocated to
your Contract on the next business day.
If your payment comes back to us marked NSF (Not Sufficient
Funds), we reserve the right to charge a fee to cover our expenses.
The value of Units allocated to the Contract in respect of a
particular Fund is invested at the risk of the contractholder
and may increase or decrease in value.
11
4.3
Scheduled Pre-Authorized Chequing
Pre-Authorized Chequing or PACs are scheduled Deposits made
for a set amount, frequency and Funds that you have selected. You
may elect PAC Deposits to be made on an annual, semi-annual,
quarterly, monthly, bi-weekly and weekly basis.
PACs are available for Non-registered, TFSA and RRSP Contracts.
We will make regular PAC withdrawals directly from your bank
account, as authorized by you.
We have the right to cancel the PAC at any time, upon 10 days
notice to you.
If we discontinue a Fund or close a Fund to new Deposits, we
have the right to direct the PAC to another Fund. Please see
section 8, The Investment Options for more information on Fund
discontinuance.
Subject to our Administrative Rules, we will stop processing
Deposits by PAC if they are returned unprocessed. You will be
required to notify us in writing to re-establish Deposits to the
Contract by PAC.
Please see the application for terms and conditions
applicable to PAC.
5.
FUND SWITCHES
5.1
General Information
We reserve the right to delay switches in unusual or exceptional
circumstances where it is not practical to dispose of investments
made in a Fund or where it would be unfair to other Owners.
The value of the Units cancelled or acquired to effect a Fund
switch is invested at the risk of the contractholder and may
5.2 Unscheduled Fund Switches And Fund Switch Fees
You may request a Fund switch up to four times in any calendar
year free of charge. We count all switches made on a single day as
one switch. You may not carry forward any unused portion of this
privilege from one year to the next.
We will deduct a Fund switch fee of 2% of the amount switched
for the fifth and subsequent switches in the same calendar year.
ivari reserves the right to change this fee at any time upon 60 days
advance notice.
The switch fee will reduce the Contract Maturity Guaranteed
Amount and Death Guaranteed Amount proportionally.
When you switch between Funds, it is your oldest Units that are
switched first.
At any time before the Contract Maturity Date or the death of the
Annuitant, you may request a switch of monies between Funds
within the same sales charge option (i.e. ISC to ISC) and the same
Contract on an unscheduled or scheduled basis.
If your Contract is non-registered, switches are considered a
disposition under the Income Tax Act (Canada) and will be taxable.
Please see section 15.2, Taxation of Non-Registered Contracts for
more information.
Whenever you switch between Funds, you do not incur surrender
charges and your guarantees are not impacted. Certain Fund
switches may give rise to fees. A switch in a non-registered contract
is a taxable transaction. Please see sections 5.2, Unscheduled Fund
Switches and 5.3, Early Switch Fees for more information.
We have the right to:
Moving between Funds of different sales charges (i.e. DSC to
ISC) is not considered a switch and may trigger surrender fees.
This transaction is processed as a withdrawal from the Contract
and a subsequent Deposit back into the Contract. Guarantees
will be impacted. Please see section 6.1 Withdrawals, General
Information. This is a taxable transaction, and is subject to the
latest age to make a Deposit rule. Please see section 4.1, Deposits,
General Information.
Fund switches are not permitted between different Contracts.
Because the Funds are generally considered to be long-term
investments, we discourage investors from excessive trading in
Units of a Fund with the object of realizing a short-term gain. Such
trading may not only harm a Fund’s performance, but may also
affect the value of other owners’ interests in the Fund. We will
deduct a switch fee of 2% for the 5th and subsequent switches
made within a calendar year. In addition we reserve the right to
12
charge an early switch fee of 2% of the value of Units switched if
you make a switch within 90 days of allocating those Units to the
Fund. Please see section 5.2, Unscheduled Fund Switches and
Fund Switch Fees and 5.3, Early Switch Fees for more information.
• refuse any Fund switch request,
• limit the amount switched to any particular Fund(s), and
• impose additional conditions at our discretion before any Fund
switches are made.
5.3
Early Switch Fees
We reserve the right to charge an early switch fee of 2% of the
value of Units switched if you make a switch within 90 days of
allocating those Units to the Fund. ivari reserves the right to change
this fee at any time upon 60 days advance notice.
The early switch fee will reduce the Maturity Guaranteed
If your Contract is non-registered, the early switch fee will be
considered a disposition under the Income Tax Act (Canada) and
will be taxable. For more information, please refer to section 15.2,
Taxation of Non-Registered Contracts for more information.
5.4
Scheduled Fund Switches (Dollar Cost Averaging)
You may request to have scheduled Fund switches for your
Contract. Scheduled Fund switches are commonly referred to as
a “Dollar Cost Averaging” (DCA) service. There are no switch fees
applicable for this service and such switches are in addition to the
four Fund switches per calendar year that are free of charge.
Scheduled Options include Systematic Withdrawal Plans or “SWPs”
that can be requested on an annual, semi-annual, quarterly or
monthly basis.
You can arrange to have scheduled Fund switches between Funds,
subject to having sufficient value in the Fund from which monies are
switched. You must provide us with the frequency, amount, start
date and the Funds where monies will be switched.
For Scheduled options relating to RRIF Contracts, you may elect
to withdraw the RIF Minimum Amount or payments on a custom
basis (you select the amount). We are required to pay you the
RRIF Minimum Amount even though you may have elected a
lesser amount. For certain locked-in plans, the amount withdrawn
cannot exceed the maximum annual amount prescribed by
applicable legislation.
Scheduled Fund switches are subject to a minimum of $100 with a
minimum of $25 per Fund.
Unscheduled options may be customized in amount and frequency
at your discretion, subject to our minimum withdrawal amounts.
6.3
We reserve the right to cancel the scheduled Fund switches at
any time or direct the scheduled Fund switches to a Similar Fund,
according to the Administrative Rules that we have in place at the
time. If we were to close or restrict new Deposits to a Fund, we
will provide you with advance notice of our intentions and the Fund
options available to you.
Processing a Withdrawal
A withdrawal request will be processed when it is received in good
order at our head office. We will pay you the value of the withdrawn
Units, after deducting:
• any applicable Deferred Sales Charge,
• any unpaid administrative fees and charges you owe us, and
6.WITHDRAWALS
• any applicable withholding tax.
6.1
We have the right to delay the effective date of any withdrawal order
from any Fund for up to seven business days in order to properly
process your withdrawal.
General Information
At any time before the Contract Maturity Date and the death of
the Annuitant, you may make withdrawals from your Contract,
according to our Administrative Rules
You may decide to make withdrawals on a scheduled or
unscheduled basis.
In the event of exceptional or unusual circumstances, we have the
right to delay payment of any withdrawal amount for the duration of
the exceptional or unusual circumstances.
Requests for withdrawals must meet minimum amounts that we have
in place at the time you make the request. The current minimum
withdrawal amount is $100 with a minimum of $25 per Fund.
If the value of the Fund on the date of the withdrawal is insufficient
to permit us to make the requested withdrawal, we will proceed
as follows:
Any applicable deferred sales charges, fees or withholding taxes
that you must pay are deducted from the withdrawal. The minimum
withdrawal amounts are calculated before applicable deferred sales
charges, fees and withholding taxes are deducted.
• In the case of an unscheduled withdrawal, the withdrawal will not
be processed and we will request further instructions from you.
• In the case of a scheduled withdrawal, the withdrawal will be
processed based on our current administrative practices.
6.4
Early Withdrawal Fees and Recovery of Expenses
Withdrawals may result in either a capital gain or a capital loss
since they create a taxable disposition. Please see section 15, Tax
Implications for more information.
Withdrawals will reduce the Market Value of the Contract,
the Contract Maturity Guaranteed Amount and the Death
Guaranteed Amount. Please see section 7, Guarantees for
more information.
The values of the Units of a Fund that are withdrawn
fluctuate with the Market Value of the underlying assets and
are not guaranteed.
6.2
Withdrawal Options
There are two categories of withdrawal options: scheduled
and unscheduled.
We may apply an early withdrawal fee of 2% of the value of Units
withdrawn if the withdrawal is made within 90 days of allocating
those Units to the Contract. This fee does not apply to scheduled
withdrawal payments nor to the 10% free withdrawal privilege.
This fee will be in addition to any applicable DSC. ivari reserves
the right to change this fee at any time upon 60 days
advance notice.
The early withdrawal fee will reduce the Maturity Guaranteed
If your Contract is non-registered, the early withdrawal fee will be
considered a disposition under the Income Tax Act (Canada) and
will be taxable. For more information, please refer to section 15.2 –
Taxation of Non-Registered Contracts for more information.
13
6.5
Information Specific to RRIF/LIF/ RLIF/PRIF Contracts
6.5.1 RRIF Payments
7.1
If you are the Owner of a RRIF/LIF/ RLIF/PRIF Contract:
• In the calendar year you purchase the RRIF, LIF, RLIF or PRIF
Contract, you are not required to make a withdrawal from the
Contract.
The Contract provides a Contract Maturity Benefit and a Death
Benefit guarantee.
• S tarting in the second calendar year, the Income Tax Act
(Canada) requires that a minimum amount be paid to you from
the Contract each calendar year. We refer to this amount as the
RRIF Minimum Amount.
• T he RRIF Minimum Amount is calculated by multiplying the
closing Market Value of the Contract on December 31st of the
previous year by the percentage determined under the Income
Tax Act (Canada). When legislation permits, you can elect to
have the RRIF minimum percentage based on the age of your
spouse or common-law partner (as the terms are defined under
the Income Tax Act (Canada). You must make this election at the
time you purchase the Contract and once this election is made, it
cannot be changed while the Contract is in force.
• If the total of your scheduled and unscheduled withdrawals in
the calendar year is less than the RRIF Minimum Amount for that
year, we are required to make a year-end payment to you to meet
the RRIF Minimum Amount. Year-end payments will be applied
using the scheduled withdrawal allocation we have on file, or
if there are no allocations on file, using the default allocation
subject to our Administrative Rules in place at that time.
• Y ou may elect to customize your RRIF payments and withdraw an
amount greater than your RRIF Minimum Amount. The Custom/
Level payment option, payment allocation instructions and the
payment frequency you select will remain in effect until you file a
written request with us to change it.
6.5.2 LIF/RLIF Maximum Amount
The maximum payment amount for LIF and RLIF Contracts
is calculated in accordance with the formula specified by the
applicable pension legislation.
For the initial calendar year, the maximum amount may be prorated
based on the number of months the Deposit is held in the Contract..
6.5.3Contracts Held As Self-Directed RRIFS
(Including LIF/RLIF/PRIF)
If your Contract is held in a self-directed plan, your Contract is
considered non-registered with ivari. The trustee of your plan is
required to satisfy the requirements necessary to comply with a
RRIF under the Income Tax Act (Canada) and has to make annual
minimum payments to you from the investments you hold within the
self-directed plan.
14
7.GUARANTEES
General Information
The Contract Maturity Benefit provides that on the Contract
Maturity Date, if the Market Value of your Contract is lower than
the applicable Contract Maturity Guaranteed Amount, we will
increase the value of your Contract to equal the Contract Maturity
Guaranteed Amount.
The Death Benefit provides that on the Death Benefit Date, if the
Market Value of your Contract is lower than the Death Guaranteed
Amount, we will increase the value of your Contract to equal the
Death Guaranteed Amount.
We reserve the right to add new Guarantee Classes. We will provide
notice of such a change.
The guaranteed amounts are calculated as follows:
Guaranteed Benefits
Description of Guarantees
Contract Maturity
Guaranteed Amount
75% of your Deposits*
Death Guaranteed Amount
100% of your Deposits*
*Less a proportional market value reduction for withdrawals and
client-initiated transaction fees
When we increase the value of the Contract to equal the Contract
Maturity Guaranteed Amount or Death Guaranteed Amount, we call
this a Top-up Benefit.
Only the Death Guaranteed Amount is increased by Resets. Please
see section 7.3.2 Resets of the Death Guaranteed Amount.
7.2
This Contract provides for a guarantee on Contract maturity called
the Contract Maturity Benefit.
Under the Contract Maturity Benefit provision, we guarantee that
you will receive no less than an amount referred to as the Contract
Maturity Guaranteed Amount. Therefore, if on the Contract Maturity
Date, the Market Value of your Contract is lower than the Contract
Maturity Guaranteed Amount, we will increase the Market Value of
your Contract to equal the Contract Maturity Guaranteed Amount.
7.2.1 Contract Maturity Guaranteed Amount
B is the value of the Units withdrawn; and
The Contract Maturity Guaranteed Amount:
C is the Market Value of the Contract before the withdrawal
• Is set by the value of the first Deposit to the Contract,
• Increases by the value of additional Deposits,
• Reduces proportionally by withdrawals,
• Reduces proportionally by client-initiated transaction fees.
When calculating the Contract Maturity Benefit for Deposits made
under the initial sales charge option, we will not deduct the initial
sales charge from the Premium. Therefore, the Maturity Guaranteed
Amount will not be less than 75% of the Premium less proportional
market value reductions for withdrawals.
To determine the Contract Maturity Guaranteed Amount after a
withdrawal, the formula is as follows: (A – P)
Where A is the Contract Maturity Guaranteed Amount before the
Withdrawal
P is the proportional market value reduction of the Withdrawal and
is equal to A x (B/C) where:
Please consider that, when the market value of the Units
withdrawn is lower than the market value of those Units
on the Deposit date, the proportional reduction due to the
withdrawal will reduce the Contract Maturity Guaranteed
Amount and Death Guaranteed Amount by more than the
amount of the withdrawal.
The following examples illustrate the Contract Maturity Guaranteed Amount and the impact of a Deposit and withdrawal in (a) rising and (b)
declining markets.
a) Example where the Market Value is GREATER than the Contract Maturity Guaranteed Amount at the time of a withdrawal.
Market Value Contract Maturity
of Contract
Guaranteed
After
Amount Before
Transaction
Transaction
Date
Transaction
Amount
Market Value of
Contract Before
Transaction
May 5, 2016
First Deposit
$25,000
N/A
$25,000
N/A
$18,750
(75% of $25,000)
Aug 4, 2016
Additional Deposit
$70,000
$27,000
$97,000
$18,750
$71,250 =
($18,750 + $52,500
(75% of $70,000))
$71,250 (A)
$67,865.62
($71,250 –
$3,384.38*)
Nov 3, 2017
Withdrawal
$4,750 (B)
$100,000 (C)
$95,250
Contract Maturity
Guaranteed Amount
After Transaction
* The value of the Contract Maturity Guaranteed Amount is calculated as follows: (A – P) = ($71,250 – $3,384.38) = $67, 865.62
Where P = A x (B/C) = $71, 250 x ($4,750/$100,000) = $3,384.38
b) Example where the Market Value is LESS than the Contract Maturity Guaranteed Amount at the time of a withdrawal.
Market
Contract Maturity
Market Value of
Value of
Guaranteed
Contract Before
Contract After Amount Before
Transaction
Transaction
Transaction
Contract Maturity
Guaranteed Amount
After Transaction
Date
Transaction
Amount
May 5, 2016
First Deposit
$25,000
N/A
$25,000
N/A
$18,750
($25,000 x 75%)
Aug 4, 2016
Additional Deposit
$70,000
$23,000
$93,000
$18,750
$71,250 =
($18,750 + $52,500
(70,000 x 75%))
Nov 3, 2017
Withdrawal
$4,750 (B)
$68,000 (C)
$63,250
$71,250 (A)
$66,272.98
($71,250 –
$4,977.02*)
* The value of the Contract Maturity Guaranteed Amount is calculated as follows: (A – P) = ($71,250 – $4,977.02) = $66, 272.98
Where P = A x (B/C) = $71, 250 x ($4,750/$68,000) = $4,977.02
15
7.2.2 Contract Maturity Date
Unless required by applicable pension legislation, the Contract
Maturity Date is December 31st of the year the last surviving
Annuitant turns age 100, or the last Valuation Date of that year if
December 31st is not a Valuation Date.
The Contract Maturity Date is as follows for the types of Contract
available.
Contract Type
Contract Maturity Date
Non-registered, RRSP, LIRA, December 31st of the year in which
the last surviving Annuitant turns
LRSP, RLSP, RIF, LIF, PRIF,
age 100
RLIF and TFSA
New Brunswick LIRA
and LIF
December 31st of the year in which
age 90
Newfoundland and Labrador
LIRA and LIF
December 31st of the year in which
age 80
7.2.4Default Annuity
If the Annuitant is living on the Contract Maturity Date, and
we have not been notified of your maturity option, we will
automatically apply the Contract Maturity Benefit to provide you
with an immediate single life annuity, guaranteed for ten years in
accordance with our Administrative Rules and applicable legislation.
The annuity will be based on your life, be payable monthly and will
be based on the rates in effect on the Contract Maturity Date.
The single life annuity contract will be subject to the terms of the
Income Tax Act (Canada), if the Contract is registered.
We reserve the right to make payments in a lump sum if each
payment is less than $100.
Payment of the annuity (or lump sum if applicable) fulfils our
obligation under the Contract in full.
7.2.5Default Annuity for Contracts Issued in Quebec Only
7.2.3 Contract Maturity Benefit
On the Contract Maturity Date, the Contract Maturity Benefit is
calculated and it will be the greater of the:
(i) Contract Maturity Guaranteed Amount, and
(ii) Market Value of the Contract.
If the Market Value on the Contract Maturity Date is less than
the Contract Maturity Guaranteed Amount, we will make up the
difference. We refer to the difference as the “Top-up Benefit”.
For Contracts issued in Quebec only, the annuity will be based
on your life, be payable monthly and will be based on the rates in
effect on the Contract Maturity Date. However, the annual annuity
payment for each $1,000 shall not be lower than the amount set out
in Table 1 for the applicable age on which the annuity is based.
The applicable age on which the annuity is based, is the age of
the Annuitant.
Table 1 – Annual Annuity Payment per $1,000
When calculating the Contract Maturity Benefit for Deposits made
under the initial sales charge option, we will not deduct the initial
sales charge from the Premium. Therefore, the Contract Maturity
Guaranteed Amount will not be less than 75% of the Premium less
proportional market value reductions for withdrawals.
Age of Annuitant
Annuity Payment
50
$15.39
55
$16.67
60
$18.19
The following illustrates the Contract Maturity Benefit in 2 cases
where: (a) the Market Value of the Contract is lower than the
Maturity Guaranteed Amount; and (b) where the Market Value of the
Contract is greater than the Maturity Guaranteed Amount.
65
$20.01
70
$22.23
75
$25.01
80
$28.58
85
$33.34
90
$40.01
95
$50.01
100
$66.67
Case
16
decrease in value.
Deposit
Contract
Market
Amount * Maturity
Value of
Guaranteed Contract
Amount
Contract
Maturity
Benefit
(amount you
will receive)
(a)
$100,000
$75,000
$65,000
$75,000
(b)
$100,000
$75,000
$120,000
$120,000
*A ssuming no withdrawals are made and no client initiated
transaction fees applied
For example, if the Contract Maturity Benefit is $100,000 and the
age of the Annuitant is 90, the annual annuity payment per $1,000
for age 90 = $40.01. Therefore the Minimum Annual Annuity
Payment is $4,001 = [($100,000 x 40.01)/1000]
7.3Death Benefit
This Contract provides for a guarantee on death called the
Death Benefit. The Death Benefit is the guarantee payable to the
Beneficiary on the death of the last surviving Annuitant.
Under the Death Benefit provision, we guarantee that the
Beneficiary will receive no less than an amount referred to as the
Death Guaranteed Amount. Therefore, if on the date the Death
Benefit is calculated, the Market Value of your Contract is lower
than the Death Guaranteed Amount, we will increase the Market
Value to equal the Death Guaranteed Amount.
7.3.1Transactions and Events that Increase or Decrease the
Death Guaranteed Amount
Please consider that when the Market Value of the Units
withdrawn is lower than the original Deposit value of the
Units withdrawn, the proportional reduction due to the
withdrawal will reduce the Death Guaranteed Amount by
more than the actual amount of the withdrawal.
7.3.2 Resets of the Death Guaranteed Amount
The Death Guaranteed Amount has the potential to increase by Resets.
Every year, on the Policy Anniversary Date, if the Market Value of
the Contract is greater than the Death Guaranteed Amount, we
will automatically reset the Death Guaranteed Amount to equal the
Market Value of the Contract.
The Death Guaranteed Amount is:
Resets will be exercised until the policy anniversary date in the year
the Annuitant turns 75.
• s et at an amount equal to 100% of the value of the first Deposit
to the Contract
Below is an example to illustrate the maximum date for when the
reset of the Death Guaranteed Amount will occur.
• increased by 100% of the value of additional Deposits
• increased by Resets
• reduced proportionally by withdrawals.
To determine the Death Guaranteed Amount after a withdrawal, the
formula is as follows: (A – P)
Where A is the Death Guaranteed Amount before the Withdrawal
P is the proportional reduction of the Withdrawal and is determined
as A x (B/C) where:
C is the Market Value of the Contract before the withdrawal
Policy
Anniversary Date
Annuitant’s Age*
Reset Allowed?
May 26, 2016
73
Yes
May 26, 2017
74
Yes
May 26, 2018
75
No
*A nnuitant’s attained age as of the policy anniversary date with an
assumed date of birth of September 29, 1942
The Reset feature may be changed or discontinued at any
time upon 60 days prior written notice.
The following illustrates the impact to the Death Guaranteed Amount
as a result of an additional Deposit, a Withdrawal, and a Reset. No
fees have been considered for this example.
Date
Transaction/ Event
Amount
Market
Value of the
Contract before
Transaction/
Event
Market Value
of the Contract
after Transaction/
Event
Death
Guaranteed
Amount before
Transaction/
Event
Death Guaranteed
Amount after
Transaction/ Event
April 7, 2016
Initial Deposit
$100,000
–
$100,000
–
$100,000
Dec 21, 2016
Subsequent Deposit
$50,000
$105,000
$155,000
$100,000
$150,000
Jan 13, 2017
Withdrawal
$7,500 (B)
$156,000 (C)
$148,500
$150,000 (A)
$142,788.46 =
($150,000 - $7211.54*)
April 7, 2017
Reset
–
$160,000
$160,000
$142,788.46
$160,000 (since
$160,000 > $142,788.46)
June 20, 2017
Withdrawal
$5,000 (B)
$135,000 (C)
$130,000
$160,000 (A)
$154,074.07 =
($160,000 - $5,925.93**)
*For further clarification, the value of the proportional reduction withdrawal to the Death Guaranteed Amount is calculated as follows: (A – P) = $150,000 –
$7,211.54 = $142,788.46
Where P = A x (B/C) = $150,000 x ($7,500/$156,000) = $7,211.54
**For further clarification, the value of the proportional reduction withdrawal to the Death Guaranteed Amount is calculated as follows:
A x (B/C) = $160,000 x ($5,000/$135,000) = $5,925.93
17
7.3.3Death Benefit Date
The Death Benefit is calculated on the Death Benefit Date. The
Death Benefit Date is the Valuation Date we receive satisfactory
proof of the death of the last surviving Annuitant. Satisfactory proof
of death is determined under our Administrative Rules.
7.3.4 Death Benefit
The Death Benefit is the greater of the:
(i) Death Guaranteed Amount; and
If the Market Value on the Death Benefit Date is less than the Death
Guaranteed Amount, we will make up the difference. We refer to the
difference as the Top-up Benefit. The Top-up Benefit, if applicable,
will be payable as a part of the Death Benefit.
The Contract will terminate upon payment of the Death Benefit.
7.3.5 Process for Determining the Death Benefit
In some circumstances, there may be delays in obtaining
satisfactory proof of death and we may be notified of the death of
the Annuitant before receipt of proof of death (for example, a death
certificate). In such event, on the date we are notified of the death
of the last surviving Annuitant, we will switch all Units in the Funds
held in the Contract into the ivari Canadian Money Market Fund or
to another Fund we designate if the ivari Canadian Money Market
Fund is not available. This date is called the “Notice Date”.
Notification of death must be in writing and meet the requirements
set out in our Administrative Rules.
18
For additional information about the Funds, please see the Fund
Facts for the Funds available when you purchase the Contract.
For Funds available after the purchase of the Contract, please
consult with your Advisor.
We may discontinue offering a Fund, add, merge or split Fund(s)
within the Contract. If we discontinue offering a Fund, we will
automatically reallocate your holdings in the discontinued Fund to a
Similar Fund of our choice. This transaction may be a taxable event
and subject to the Fundamental Change rule. Please see section
14.2, Fundamental Changes and Other Changes.
The Funds available within the ivari GIF Contract are also
referred to as Guaranteed Investment Funds (GIFs) or Guaranteed
Investment Portfolios (GIPs). A GIF will invest directly in securities,
units of an underlying mutual fund or other investments as
deemed appropriate by us and in accordance with the investment
objective and investment policies of each GIF. A GIP will invest in
several underlying mutual funds or other investments as deemed
appropriate by us and in accordance with the investment objective
and investment policies of each GIP. Collectively, the GIFs and GIPs
comprise the Funds available within the ivari GIF Contract.
The Fund Facts pages provide you with the key features of each
Fund. At the top of each Fund Facts page you will find the name of
the Fund, the name of the Contract(s) offering the Fund, and the “as
at” date for the information included on the page. The Fund Facts
pages also provide some “Quick Facts” about the Fund, including
the date the Fund became available within the Contract, the total
value of the Fund, and the Management Expense Ratio (MER) of the
Fund among other details. In addition to these Quick Facts about
the Fund, the Fund Fact pages answer the following questions about
each Fund:
• What does the Fund invest in?
As of the Notice Date, no further transactions can be made. For
example, scheduled withdrawals, including payments of RRIF
Minimum Amounts will be stopped.
• How has the Fund performed?
Subsequently, on the Valuation Date we receive proof of death, the
Death Benefit will be calculated.
• Are there any guarantees?
8.
THE INVESTMENT OPTIONS
8.1
General Information
This Contract gives you access to a full range of Funds.
• How risky is it?
• Who is the Fund for?
• How much does it cost?
• What if I change my mind?
The Fund Facts pages may not contain all the information you need.
Please read the Annuity Policy and Information Folder.
The asset class categories of Funds include Money Market & Fixed
Income, Canadian Balanced, Canadian Equity, U.S. Equity and
Global Equity.
The investment objective and investment policies of each Fund
offered within the Contract can be found in Appendix A. The
investment policies and restrictions may change from time to time.
The underlying investments in a Fund may be units of a mutual
fund, stocks, Exchange Traded Funds (ETFs), bonds, short-term
notes or other selected investments. You do not acquire any
ownership interest in the Funds or in the underlying investments
when you make Deposits to the Contract.
Should you require more information about the Funds available
within the ivari GIF Contract, please write to us at
500 – 5000 Yonge Street, Toronto, Ontario M2N 7J8.
For Funds that invest in underlying mutual fund(s), the fundamental
investment objectives and investment strategies of the Underlying
Fund(s) are presented within Appendix B. You may also request a
copy of the simplified prospectus, annual information form, financial
highlights, and complete holdings related to the Underlying Fund(s)
by writing to the applicable Underlying Fund manager at their
respective addresses listed at the end of Appendix B.
The Fund Facts should be read in conjunction with the ivari GIF
Information Folder and Annuity Policy. The Information Folder provides
brief and plain disclosure of all the material facts relating to the ivari
GIF Contract. ivari is the sole issuer of the ivari GIF Contract and the
guarantor of the guarantee provisions contained therein.
8.1.1 What is a Segregated Fund?
A segregated fund is an investment option available within an
Individual Variable Insurance Contract commonly known as a
segregated funds contract.
Each Fund available within the ivari GIF Contract is a segregated
fund. A segregated fund is a pool of assets purchased with money
contributed by policyholders with similar goals. Policyholders
contribute money to their segregated funds contracts and it is pooled
by a life insurance company and used to purchase assets. The
assets of the segregated fund are owned by the insurance company.
These assets are segregated from the company’s other assets.
Since the assets are owned by us, there is no need to divide the
Fund into units. However, in order to administer the Funds and to
record your contractual interests, we divide the Fund into notional
units. You do not own the units in a Fund, nor can you direct the
investment of the assets of the Fund. Segregated funds are regulated
under the authority of provincial and federal insurance regulators.
8.1.2 ivari Guaranteed Investment Funds
ivari Guaranteed Investment Funds (GIFs) invest directly in
securities, such as bonds, debentures and stocks. Some GIFs use
a mutual fund “fund of fund” strategy, where the GIF invests its net
assets in units of a select Underlying Fund. In the case where a
GIF invests in an Underlying Fund, we reserve the right to change
the Underlying Fund. If such a change constitutes a Fundamental
Change as defined in section 14.1 of the Annuity Policy, you will
have the rights described there. Changing an Underlying Fund to
another similar Underlying Fund will not constitute a Fundamental
Change provided that immediately following the change the total
management fee of the ivari GIF is the same as or lower than the
management fee and the insurance fee is within the maximum
insurance fee limit applicable immediately prior to the change. A
similar Underlying Fund is one that has a comparable fundamental
investment objective, is in the same investment fund category
and has the same or lower management fees, and the same or
lower maximum insurance fee limit as the Underlying Fund. The
investment objective of an Underlying Fund may not be changed
unless approved by the unitholders of the Underlying Fund. Upon
such approval, you will be provided notice of the change.
8.1.3 ivari Guaranteed Investment Portfolios
Each ivari Guaranteed Investment Portfolio (GIP) allocates its
assets among income and equity investments by investing in
units of underlying mutual funds of a selected fund company and
other investments as deemed appropriate by us. Each GIP has a
target income and equity asset mix and offers you diversification
through a professionally designed portfolio of Underlying Funds and
investments. The GIPs are continuously monitored and, at least on
a monthly basis, the underlying investments of a GIP are rebalanced
if necessary to ensure that the portfolio corresponds to its target
asset allocation. However, each GIP may vary to some extent from
its target asset allocation mix between rebalancings.
We may change these targeted mixes and Underlying Funds at any
time to better achieve the investment objective of each GIP. You will
not be notified when the GIPs are rebalanced or when an Underlying
Fund and/or its targeted weight is changed. You will only be notified
if the change meets the definition of a Fundamental Change. In
such an event, the Fundamental Change Rule in section 14.1 of the
Annuity Policy will apply.
The investment objective and policies of each Underlying Fund
within the ivari GIPs can be found in Appendix B. Details of how
to contact the managers of the Underlying Funds are also set out in
Appendix B.
8.1.4 Index Funds
Some of the Funds available within the ivari GIF Contract are
considered “index funds”. Index funds seek to achieve returns
similar to a generally recognized index. Index funds must include
the word “index” in their name. Index funds do not use “active
management” and therefore do not buy and sell securities based
upon the portfolio advisor’s market, financial, and economic
analysis. Index funds use “passive management”. The three typical
forms of passive management, each of which obtains essentially the
same result, are as follows:
1.Market/Index proportion. If the size and investment objective
of the fund permit, the fund invests in the same companies and
in approximately the same proportion as the market index being
tracked. As a result, the net asset value of an index fund will
fluctuate in approximately the same proportion as the index.
2.Optimization. A mathematical process known as “optimization”
is used to identify the securities that would likely provide a
return that is closest to the return of the index being tracked.
Rather than holding the same companies in the same proportion,
optimization allows the fund to hold a smaller number of
securities in larger proportions versus the index, while at the
same time approximately tracking the performance of the index.
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3.Substitution. Substitution involves the use of securities, such
as Exchange Traded Funds (ETFs) and/or derivative instruments,
such as futures, forwards contracts or similar instruments.
The value of that instrument is based on, or derived from, the
value of the market index or an underlying asset included in
the index at the time the contract is bought or sold. As a result,
substitution allows a fund to track the performance of an index,
while not requiring it to hold the actual securities.
In trying to achieve returns similar to an index, an index fund incurs
costs in managing its portfolio of assets, including costs associated
with passive management. The fees associated with the fund will
result in the performance of the fund not replicating the market
index being tracked. This may also be the result if the index is
calculated in a currency other than the Canadian dollar, giving rise
to currency fluctuations.
Please refer to the Index Risk section for more information on the
risks concerning index funds.
8.1.5 Derivatives and their Permissible Use
Derivatives may be used by the Funds within the ivari GIF Contract
but only in a manner consistent with the Fund’s respective investment
objectives. Derivatives may also be used by the Underlying Funds,
but their use must be consistent with the Underlying Fund’s
investment objective and their use must conform to the relevant
policies set out by securities regulators.
A derivative is a financial contract, usually between two parties.
The value of the contract is derived from the market price, value or
level of an underlying asset, such as a stock, bond, market index,
currency, commodity or a basket of securities. The main appeal
in using derivatives is that investors can capitalize on movements
in the value of an underlying security at a fraction of the cost of
buying the security outright. However, a derivative is not a direct
investment in the underlying asset itself. Derivatives include a
wide assortment of financial contracts including futures, forwards,
options, and swaps.
With regards to the Funds available within the ivari GIF Contract,
derivatives will not be used to create a portfolio with leverage.
More precisely, derivatives may only be used in respect of a Fund
if sufficient cash or cash-equivalent securities are held in the
Fund in order that we may satisfy our obligations under the
derivative instrument.
We may use derivatives to:
• R
educe Currency Risk. The fund manager may determine
that it is beneficial to offset (or hedge), where appropriate, the
currency exposure of foreign portfolio positions as protection
against rate fluctuations. To achieve this objective, the fund
manager may make use of exchange or over-the-counter traded,
foreign currency options, futures contracts, forward contracts or
other derivative instruments.
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•Create Exposure to Specific Securities and Foreign
Markets. The fund manager may wish to buy or sell options
on specific securities rather than purchasing or selling the
actual securities directly. As well, the fund manager may seek
to participate in foreign markets by purchasing exchange
traded stock index options, futures contracts, as well as foreign
currency forward contracts.
•Enhance Returns and Lock-in the Price of Portfolio
Investment. The fund manager may wish to enhance returns
and lock-in the price of portfolio investments by writing covered
call options. A call option is one in which one party is granted
the right, for a period of time, to buy an asset at a certain price.
A call option is said to be covered when the party selling the call
option owns the underlying asset which will be sold if the call
option is exercised.
We have no obligation to use such derivatives.
While derivatives can be useful for hedging against potential losses,
making indirect investments and gaining exposure to financial
markets and other assets, there is no guarantee that the use of
derivatives by a fund will be effective. Please refer to the Derivatives
Risk section for more information on the risks concerning derivatives.
8.1.6 The Risks of Investing in Segregated Funds
Risk is the chance or possibility of loss. When investing, the
element of risk can vary substantially. As a general rule, the higher
the potential return, the higher the risk you must assume. This is
known as the “risk/return trade-off”.
The volatility and performance of your investment will depend on
the Fund’s underlying investments, the investment manager of the
Fund, and general market conditions. The underlying investments
may be units of mutual funds, pooled funds, stocks, bonds or other
selected investments and securities. The value of these underlying
investments will change from day to day, reflecting changes in
interest rates, changes in general economic, political and market
conditions, the release of information about a particular investment,
issuer or industry sector, changes in the value of a relevant foreign
currency relative to the Canadian dollar and other factors.
It should be understood that no matter what strategies might
be adopted by a fund manager to manage the identified risks
associated with the investments held in each Fund, the risks will
remain many and uncertain in nature, duration and impact.
Leverage involves the use of borrowed money to help pay for an
investment or the use of certain types of derivative instruments
to simulate a specialized investment. Using leverage magnifies
the amount of loss or gain on an investment. The funds do not
employ leverage.
Below are descriptions of the various principal risks which may be
applicable to the underlying investments of the Funds. Please refer
to Appendix C for information about which principal risks apply to
each Fund available within the ivari GIF contract.
Capital Depreciation Risk
Some Underlying Funds aim to distribute a high level of income. In
certain situations, such as periods of declining markets or increases
in interest rates, an Underlying Fund may make distributions that
include a return of capital. Where the total distributions by an
Underlying Fund in a year exceed the Underlying Fund’s net income
and net realized capital gains for the year, the net asset value
of the Underlying Fund may be reduced, which could reduce the
Underlying Fund’s ability to generate future income.
Cash Risk
A fund or Underlying Fund may have times when it increases
the level of cash that it holds. This may be done by the portfolio
manager in order to protect assets or to take advantage of buying
opportunities. Cash is also needed to fund redemption requests.
To the extent that a fund has a significant cash position, it may
be able to avoid market declines, losses or instability. However,
a significant cash position will also mean that the fund may risk
not taking advantage of market advances to the extent that it
otherwise could have.
Commodity Risk
The market value of a fund’s investments will likely be affected
by adverse movements in commodity prices. When commodity
prices decline, this has a negative impact on the earnings of the
companies whose business is based on commodities, such as oil
and gold.
Concentration Risk
A fund may have a high concentration of its investments in a single
company. A relatively high concentration in a single or a small
number of investments will have less diversification and this may
have an adverse impact on the fund’s returns. Concentration can
also lead to increased volatility and reduced liquidity of the fund.
Credit Risk
indirect ownership of foreign securities without trading on foreign
markets. There is a risk that the value of the depository receipts
may be less than the value of the foreign securities. This difference
can result from several factors: fees and expenses related to the
depository receipts; fluctuations in the exchange rate between the
currency of the depository receipts and the currency of the foreign
securities; differences in taxes between the depository receipts and
the foreign securities’ jurisdictions; and the impact of the tax treaty,
if any, between the depository receipts and the foreign securities’
jurisdictions. Also, a fund faces the risks that depository receipts
may be less liquid, that the holders of depository receipts may have
fewer legal rights than if they held the foreign securities directly,
and that the depository may change the terms of a depository
receipt, including terminating the depository receipt, in such a way
that a mutual fund is forced to sell at an inopportune time.
Derivative Risk
The most common risks of using derivatives are as follows:
•There is no guarantee that hedging strategies which may be
employed will be effective.
•There is no guarantee that a market will exist for some
derivatives. This could prevent a fund from making a profit or
limiting a loss.
•Some exchange traded derivatives may lack liquidity and the
fund may not be able to close out its derivative positions.
Derivative instruments in foreign markets may be less liquid
and more risky than comparable instruments traded in North
American markets.
•Exchange-imposed trading limits could affect the ability of a
mutual fund to close out its positions.
•The price of a derivative may not accurately reflect the value of
the underlying asset.
•The other party to a derivative contract may not be able to
honour its obligations under the contract.
Credit risk is the risk that an issuer of a bond or other fixed income
security won’t be able to pay interest or repay the principal when
it is due. Credit risk is generally lowest among issuers that have
a high credit rating from an independent credit rating agency. It
is generally highest among issuers that have a low credit rating
or no credit rating. The prices of securities with a low rating or no
rating tend to fluctuate more than securities with higher interest
ratings. They usually offer higher interest rates, which may help to
compensate for the higher credit risk.
•There is no assurance that a fund’s hedging strategies will
be effective. There may be an imperfect historical correlation
between the behaviour of the derivative instrument and the
underlying instrument. Any historical correlation may not
continue for the period during which the hedge is in place.
Depository Receipt Risk
•Hedging may also limit the opportunity for gains if the value of
the hedged currency or stock market should rise or if the hedged
interest rate should fall.
Banks or other financial institutions, known as depositories, issue
depository receipts that represent the value of securities issued by
foreign companies. These receipts are most often known as ADRs
(American Depositary Receipts), GDRs (Global Depositary Receipts),
or EDRs (European Depositary Receipts), depending on the location
of the depository. Funds invest in depository receipts to obtain
•Using derivatives to hedge against changes in currencies, stocks
markets or interest rates cannot eliminate fluctuations in the
prices of securities in a fund or prevent losses if the prices of
these securities decline.
•The inability to close out other options, futures and forward
positions could prevent a fund from using derivatives to
effectively hedge its portfolio or implement its strategy.
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Emerging Markets Risk
Investments in emerging market countries are generally considered
to pose greater risks than foreign investments in established
markets. In general, securities markets in emerging countries
may be smaller than in more developed countries, making it
more difficult to sell securities in order to take profits or avoid
losses. Companies in these markets may have limited product
lines, markets or resources, making it difficult to measure the
value of the company. In general, emerging market countries have
more fragile economies due to higher levels of inflation, higher
government debt loads, and/or dependence on a relatively narrow
industrial base. Political instability and possible corruption, as well
as lower standards of regulation for business practices increase
the possibility of fraud and other legal problems. The value of
investments in these countries may rise and fall substantially.
Equity Risk
The price of equity securities – also called stocks or shares – are
affected by stock market conditions and by general economic and
financial conditions in those countries where the investments are
listed for trading or elsewhere. The price of equity securities of
certain companies or companies within a particular industry sector
may also fluctuate differently than the stock market due to changes
in the outlook for the company or the industry in which it operates.
Historically, equity prices have been more volatile than prices for
fixed income securities such as bonds. Accordingly, the value of
funds whose assets are weighted towards equities may be more
volatile that the value of funds whose assets are weighted towards
fixed income securities.
ETF Risk
Certain funds may invest in exchange-traded funds (ETFs) which
qualify as index participation units. ETFs seek to provide returns
similar to the performance of a particular market index or industry
sector index. ETFs may not achieve the same return as their
benchmark market or industry sector indices due to differences in
the actual weights of securities held in the ETF versus the weights
in the relative index and due to the operating and management
expenses of the ETFs.
Foreign Currency Risk
The value of securities issued in foreign currencies, or of securities
that pay income in foreign currencies, is affected by changes in the
value of the Canadian dollar relative to those currencies. For example,
if the U.S. dollar rises relative to the Canadian dollar, U.S. shares will
be worth more in Canadian dollars. On the other hand, if the U.S.
dollar falls, U.S. shares will be worth less in Canadian dollars.
Foreign Investment Risk
There are some significant reasons to consider investing abroad.
The economies of foreign countries may be growing much faster
than Canada’s economy and this can mean that investments in
those countries may grow more quickly too. Foreign investments
22
also give you diversification because all of your money isn’t staying
in Canada alone. However, foreign investments may involve risks not
usually associated with investing in the Canadian market. Besides
Foreign Currency Risk, foreign investments also involve the following
additional risks:
•The value of foreign securities and, hence, the value of funds
whose portfolios include such securities may be influenced by
world economic and political factors and foreign market conditions.
•Many foreign companies and countries do not have the same
accounting, auditing and financial reporting standards that apply
to North American companies.
•There may be less publicly available information about foreign
companies and governments and the quality of the information
may be less reliable.
•Some foreign stock markets may be smaller and less regulated
than Canadian and U.S. exchanges. As a result of these and
other factors, foreign markets may be more volatile and less
liquid than North American markets.
•Trading large orders in foreign countries may cause the price to
fluctuate more than it would in North America.
•A country may impose withholding or other taxes that could
reduce the return on investment or foreign currency exchange
controls, whether already in existence in a country or newly
imposed, that may make it difficult to sell an investment.
•Political and social instability, restrictions on the movement of
capital and the threat of expropriation or nationalization can
affect the value of investments in less developed countries.
•Fixed-income securities bought on foreign markets – even some
government bonds – are often quite risky as there is the danger
that the issuer will not pay off the debt or that the price of the
securities will drop rapidly.
The amount of risk also varies a lot from country to country.
Securities in developed markets like Western Europe, for example,
have lower foreign investment risk because they are generally
well regulated and are relatively stable. Securities of governments
and companies in emerging or developing markets of Southeast
Asia and Latin America, for example, can have significant foreign
investment risk. For more information, please refer to the Emerging
Markets Risk section.
Income Trust and Limited Partnership Risk
Income trusts generally hold debt or equity securities in, or are entitled
to receive royalties from, an underlying active business. Income trusts
generally fall into four sectors: business trusts, power and pipeline
trusts, resource-based royalty trusts and real estate investment trusts.
Investments in income trusts will have varying degrees of risk
depending upon the sector and the underlying assets. In general,
income trusts face the same risks as described in the Equity Risk
section. They will also be subject to general risks associated
with business cycles, commodity prices, interest rates and other
economic factors.
Returns on income trusts are neither fixed nor guaranteed. Typically
income trusts and other securities that are expected to distribute
income are more volatile than fixed-income securities and preferred
shares. The value of income trust units may decline significantly
if they are unable to meet their distribution targets. There is also
the remote risk that where claims against an income trust are not
satisfied by that trust, investors in the trust could be held liable for
the outstanding obligations. Some, but not all, jurisdictions have
enacted legislation to protect investors from some of this liability.
Changes have also been enacted to the Income Tax Act (Canada)
which affects the way certain income trusts and limited
partnerships are taxed. Generally, the new rules include a tax on
certain publicly-traded income trusts (not including certain real
estate investment trusts) and limited partnerships with respect to
certain distributions or income allocations made by such entities.
The changes will reduce the tax effectiveness of affected income
trusts and limited partnerships. In addition, the changes have had,
and may continue to have, an affect on the trading price of such
income trusts and limited partnerships, which may affect the value
of a Fund or Underlying Fund that holds such investments.
Index Risk
Index funds seek to provide returns similar to the performance
of their respective benchmark indices. However, an index fund’s
ability to match the return of the index is influenced by the
operating and management expenses incurred by the fund, as well
as by costs incurred when using particular passive investment
strategies (i.e. market/index proportion, optimization, substitution
or any combination thereof) for tracking the performance of such
index. Certain expenses are affected by the size of the fund, the
composition of each index, the level of trading activity by the fund’s
unitholders, and the cash flows experienced by the fund among
other factors. Frequent trading results in additional expenses, which
may hamper a fund’s ability to achieve a return similar to that of its
benchmark index.
Index funds may invest more than 10% of their assets in securities
of any one issuer in order to satisfy their investment objectives and
more accurately track an index. As the fund’s assets may be more
exposed to any issuer, any increase or decrease in the value of that
issuer will have a greater impact on a fund’s net asset value and
total return. Therefore, an index fund could be more volatile than
an actively managed fund that is limited to investing no more than
10% of its assets in securities of any one issuer. An index fund
that concentrates its investments could have greater fluctuations
in value than funds with broader diversification. The more an index
fund concentrates its assets in any one issuer, the more volatile and
less diversified it may be. As a result, it may be more difficult to get
a preferred price in the event of large redemptions by unitholders.
There is also the risk that the securities or weighting of the
securities that constitute an index that a fund tracks will change. In
addition, neither the companies whose securities form part of the
index, nor the inclusion or removal of a company’s securities from
an index, is within the control of the index fund. In such a situation,
the fund may experience a higher portfolio turnover rate and
increased costs such as transaction and custodian costs.
Finally, where fair value pricing is used to value assets of a fund, it
may account for some of the difference in the tracking of the fund
(valued using fair value pricing) to the relevant index (valued using
end-of-day prices).
Interest Rate Risk
The interest rate on a bond is set when it is issued. When interest
rates fall, the price of existing bonds will rise because existing
bonds pay higher rates than new bonds, and are therefore worth
more. On the other hand, when interest rates rise, the price
of existing bonds will fall, and so will the value of the Fund or
Underlying Funds that hold such bonds. The value of debt securities
that pay a floating or variable interest are generally less price
sensitive to interest rate changes.
Funds that invest in convertible securities also carry interest rate
risk. These securities provide a fixed income stream, so their value
varies inversely with interest rates, just like bond prices. However,
because they can be converted to common shares, convertible
securities are less affected by interest rate fluctuations than bonds.
Large Investor Risk
Units of mutual funds may be purchased and sold by large
investors, such as financial institutions or other mutual funds. These
investors may purchase or redeem large numbers of units of a fund
at one time. The purchase or redemption of a substantial number
of units may require the portfolio manager of the Underlying Fund
to change the composition of the Underlying Fund significantly
or may force the portfolio manager to buy or sell investments at
unfavourable prices, which can also affect the fund’s performance
and may increase realized capital gains of the fund.
Liquidity Risk
Liquidity risk is the possibility that a fund will not be able to convert
its investments to cash when it needs to. Some securities are
illiquid because of legal restrictions, the nature of the investment
itself, settlement terms, a shortage of buyers or other reasons.
Generally, investments with lower liquidity tend to have more
dramatic price changes.
Low Rated or Unrated Securities Risk
Some investments offer a better return than others because they carry
higher risk. They may have a credit rating below investment grade
or be unrated. These investments may be hard to value because
market quotations are unavailable, and they may be less liquid than
higher-grade investments. Below investment grade and unrated
securities involve significant risk exposure as there is less certainty
regarding the issuer’s ability to pay interest and repay principal in
the case of fixed income securities or to pay dividends and redeem
shares in the case of preferred shares, in accordance with the
23
issuer’s obligations. Low rated and unrated securities have the
potential for substantial loss as well as gain, as will the funds which
invest in such securities. This type of risk is similar to Credit Risk.
Mortgage-Backed and Asset-Backed Securities Risk
Mortgage-backed securities are debt obligations backed by pools of
mortgages on commercial or residential real estate. Asset-backed
securities are debt obligations that are backed by pools of consumer
or business loans. Some asset-backed securities are short-term
debt obligations, called asset-backed commercial paper (“ABCP”). If
there are changes in the market perception of issuers of these types
of securities, or in the creditworthiness of the parties involved, then
the value of the securities may be affected. In the case of ABCP,
there is an additional risk that there may be a mismatch in timing
between the cash flow of the underlying assets backing the security
and the repayment obligation of the security upon maturity. In the
case of mortgage-backed securities, there is also the risk that there
may be a drop in the interest rates charged on the mortgages, a
mortgagor may default on its obligations under a mortgage or there
may be a drop in the value of the property secured by the mortgage.
Multi-Class or Series Risk
Although a fund may offer separate classes or series of units,
the fund is a single legal entity. Accordingly, the investment
performance, expenses or liabilities of one class or series may
affect the value of the units of another class or series. In particular,
expenses significantly attributable to a class or series of units will
initially be deducted in calculating the unit price only for the class
or series of units. However, those expenses will continue to be
liabilities of the fund as a whole, if there are insufficient assets of a
class or series to pay those expenses, the remaining assets of this
fund would be used to pay the excess expenses.
Municipal Obligation Risk
Certain funds may invest in municipal obligations as part of its cash
management techniques. In addition to the usual risks associated
with investing for income, the value of municipal obligations will be
affected by changes in actual or perceived credit quality. The credit
quality of a municipal obligation will be affected by, among other
things, the financial condition of the issuer or guarantor, the issuer’s
future borrowing plans and sources of revenue, the economic
feasibility of the revenue bond project or general borrowing purpose,
political or economic developments in the region or jurisdiction
where the security is issued and the liquidity of the security.
Because municipal obligations are generally traded over-thecounter, the liquidity of a particular issue often depends on the
willingness of dealers to make a market in the security. The liquidity
of some municipal issues can be enhanced by demand features
which enable the investor to demand payment from the issuer of a
financial intermediary on short notice.
24
Passive Management Risk
Similar to funds that are managed to track an index, some funds may
also use passive management for a component of the fund, and to
that extent may be subject to similar risks as funds that are managed
to track an index. Please refer to both Index Risk and ETF Risk.
Repurchase and Reverse Repurchase Agreements Risk
Sometimes funds enter into what are called repurchase transactions
and reverse repurchase transactions. A repurchase transaction is
where a fund sells a security to a party for cash and agrees to buy
the same security back from the same party at a higher price on
an agreed future date. In a reverse repurchase transaction, a fund
buys a security at one price from a third party and agrees to sell
the same security back to the same party at a higher price on an
agreed future date.
The risk with these types of transactions is that the other party may
default under the agreement or go bankrupt. In a reverse repurchase
transaction the fund is left holding the security and may not be able
to sell the security at the same price it paid for it, plus interest, if the
other party defaults and the market value for the security has dropped
in the meantime. In the case of repurchase transaction, the fund could
incur a loss if the other party defaults and the value of the security
sold has increased more than the value of the cash and collateral held.
To reduce risks, the other party to the transaction is required
to put up collateral to the fund. The value of the collateral has
to be at least 102% of the market value of the security sold (for
a repurchase transaction) or of the cash paid for the securities
purchased (for a reverse repurchase transaction). Repurchase and
securities lending transactions (see Securities Lending Risk) are
limited to 50% of a fund’s assets, excluding the cash held by the
fund for securities sold in a repurchase transaction and collateral or
sales proceeds received in a securities lending transaction.
Securities Lending Risk
Some funds may engage in securities lending transactions. In a
securities lending transaction, the fund lends portfolio securities
held by the fund to qualified borrowers who have posted collateral
for a fee and a set period of time. In lending its securities, the fund
is subject to the risk that the borrower may not fulfill its obligations
leaving the fund holding collateral worth less than the securities it
has lent, resulting in a loss to the fund.
To limit this risk, a fund must hold collateral worth no less than
102% of the market value of the loaned securities and the amount of
the collateral is adjusted daily to ensure the level is maintained. The
collateral may only consist of cash, qualified securities or securities
that can be immediately converted into identical securities to those
that have been loaned. To further limit risk, a fund cannot lend more
than 50% of the total value of its assets through securities lending
or repurchase transactions (see Repurchase and Reverse Repurchase
Agreements Risk) and a fund’s total exposure to any one borrower
in securities, derivative transactions and securities lending must be
less than 10% of the total value of the fund’s assets.
Short Selling Risk
Target-Date Risk
Some funds may engage in a limited amount of short selling. A
“short sale” is where a fund borrows securities from a lender and
sells them in the open market. The fund must repurchase the
securities at a later date in order to return them to the lender. In
the interim, the proceeds from the short sale are deposited with the
lender and the fund pays the interest to the lender on the borrowed
securities. If the value of the securities declines between the time
of the initial short sale and the time it repurchases and returns
the securities, the fund makes a profit for the difference (less any
interest paid by the fund to the lender). If the price of the borrowed
securities rises, however, a loss will result.
Target-date funds, also referred to as “lifecycle” or “age-based”
funds, operate under an asset allocation formula that adjusts its
asset allocation to become more conservative over time typically
by increasing its fixed income allocation and reducing its equity
allocation as the fund gets closer to the target year. The target year
is generally identified in the name of the fund. While these funds
are a convenient option for many investors, the asset allocation is
not necessarily appropriate for every investor depending on the risk
profile/expectations of the investor.
There are risks associated with short selling, namely that the
borrowed securities will rise in value or not decline enough to
cover the fund’s costs. The fund may also experience difficulties
in repurchasing the borrowed securities if a liquid market for the
securities does not exist. In addition, the lender from whom the
fund has borrowed securities may become bankrupt, causing the
borrowing fund to lose the collateral it deposited with the lender.
To limit the risks associated with short sale transactions, a fund will
adhere to controls and limits that are intended to offset these risks
by short selling the securities of larger issuers for which a liquid
market is expected to be maintained and by limiting the amount of
exposure for short sales. A fund will also deposit collateral only with
lenders that meet certain criteria for creditworthiness and only up to
certain limits. Although some funds may not engage in short selling
directly, they may be exposed to short selling because the Underlying
Funds in which they invest may be engaged in short selling.
Small Company Risk
Small companies can be riskier investments than large companies.
Small companies are often newer and may not have the trackrecord, have limited financial resources or not have well-established
markets for their products. Smaller companies generally have fewer
shares trading in the market than larger companies, so a buy or
sell of their shares will have a greater impact on their share price.
The value of funds that buy these investments may rise and fall
significantly over short periods of time.
Small Fund Risk
A Fund with a low net asset value may be at risk of being discontinued
and reallocated to another Fund as it does not have sufficient assets
to be effectively managed. Please see section 8.1 The Investment
Options, of the ivari GIF Information Folder for more information.
Specialization Risk
Some funds specialize in investing in a particular industry or region
of the world. Specialization lets the portfolio manager focus on the
potential of that industry or geographic area, but it also means that
the fund may be more volatile if there is a downturn in the industry
or geographic area since there are relatively few other investments to
offset the downturn. These specialty funds must continue to invest in
a particular industry or geographic area even if it is not growing.
Tax Change Risk
There can be no assurance that changes will not be made to the
rules affecting the taxation of a Fund or a Fund’s investments, or in
the administration of such tax rules.
Tracking Risk
Certain funds may seek to have all or a substantial portion of their
returns linked to the performance of one or more Underlying Funds.
This is achieved by the Fund directly purchasing units of these
Underlying Fund(s). The return of the Fund may be lower than that
of the Underlying Fund(s) because the Fund bears its own fees and
expenses, and there may be delays between the time any monies
are invested in the Fund and those monies are used to purchase
units of the Underlying Fund(s).
Underlying Fund Risk
Some funds (for this purpose, the “top fund”) invest some or all
of their assets in units or shares of other Underlying Funds. If
the investors in the top fund redeem large amounts of their units
resulting in corresponding redemptions by the top fund in the
Underlying Funds, the Underlying Funds may have to liquidate some
of their investments at unfavourable prices in order to fund such
redemption requests. Such activity can reduce the returns of the
Underlying Funds, and therefore, the performance of the top fund as
well. This type of risk is similar to Large Investor Risk.
invested at the risk of the contract holder and may increase
or decrease in value.
8.2
Investment Objective, Policy and Restrictions
For each Fund, we will describe the investment objective and the
investment policy, restrictions and risks applicable to that Fund. The
investment policy and restrictions may change from time to time.
ivari’s investment policies comply with the Canadian Life and Health
Insurance Association Inc. (CLHIA) Guidelines on Individual Variable
Insurance Contracts Relating to Segregated Funds, as amended,
and approved by the CLHIA Board of Directors and the Canadian
Council of Insurance Regulators as well as the Autorité des marches
financiers (AMF) Guidelines.
We may also change the fundamental investment objective of a Fund.
A change to the fundamental investment objective is considered a
fundamental change. Please see section 14.2, Fundamental Changes
and Other Changes.
25
8.3
Investment Management of the Funds
As part of our responsibility for the day-to-day management of
the Funds, we have retained on a non-exclusive basis various
portfolio managers to manage the assets of the Funds. The
portfolio manager is the person or team of people who are directly
responsible for the investment decisions of any Fund.
The names and addresses of the portfolio managers and their
relationships to us, for each Fund, can be found in the Fund Facts.
With regards to conflicts of interest between us and a portfolio
manager, we have reserved the right to terminate, if necessary, the
portfolio manager.
We have the right to change the portfolio manager of any Fund, at
any time at our discretion.
We have the right to change an Underlying Fund of any Fund, at
any time at our discretion. Please see section 14.2, Fundamental
Changes and Other Changes for more information.
Please see the Fund Facts section for the investment objective,
policy, restrictions and risks applicable to each Fund.
9.
HOW WE CALCULATE THE VALUE OF YOUR INVESTMENT
9.1
Net Asset Value of a Fund
All transactions (e.g. Deposits, withdrawals, transfers) are
processed based on the market value as at the close of business
on the Valuation Date provided we receive, at our Head Office,
the instructions or transactions by the Valuation Date cut-off time
according to our Administrative Rules. If we receive instructions
or transactions after the cut-off time, it will be considered to be
received on the next Valuation Date.
ivari reserves the right to change the Valuation Date cut-off time
(earlier or later).
Please contact your advisor for the Valuation Date cut-off time that
may apply to your specific transaction request.
ivari reserves the right to reduce the frequency with which the Unit
Value of a Fund is calculated, subject to a minimum frequency
of once a month. If such an event occurs, you are provided with
certain rights. Please see section 14.2, Fundamental Changes and
Other Changes for more information.
We may postpone valuation:
(i) for any period during which one or more of the nationally
recognized stock exchanges are closed for other than a
customary weekend or holiday closing,
(ii) for a period during which trading on securities exchanges is
restricted, or
The Unit Value of a Fund is determined by dividing the net asset
value of a Fund by the number of Units held in the Fund on that
Valuation Date.
(iii) when there is an emergency during which it is not reasonable
for us to dispose of investments owned by the Funds or to
acquire investments on behalf of the Funds or to determine the
total value of the Funds.
9.4
Market Value of the Contract
The Unit Value of a Fund remains in effect until the next
Valuation Date.
The Market Value of your Contract on any given Valuation Date is
determined according to the following formula:
All earnings of a Fund are automatically reinvested in the Fund and
this will be reflected in the Unit Value of the Funds.
Market Value of your Contract = sum of [(Unit Value x number of
Units) for each Fund you hold in the Contract]
ivari reserves the right to change this method of reinvesting a
Fund’s earnings following written notice to policyholders.
10.
On each Valuation Date, we calculate the net asset value for Units
of each Fund. The net asset value is the total market value of the
Fund’s assets minus any applicable liabilities, on that date.
The net asset value of a Fund fluctuates with the market value
of the underlying assets of the Fund and is not guaranteed.
9.2
Unit Value of a Fund
ivari may increase the number of Units of a Fund by splitting a
unit into two or more Units, or decrease the number of Units by
combining two or more Units. However, the market value of the
Funds in your Contract will not be affected by this activity.
The Unit Value of a Fund is not guaranteed but varies in
accordance with fluctuations in the market value of the
assets of each Fund.
9.3
Valuation Date
We determine the net asset value and the Unit Value of a Fund at
the close of business on every Valuation Date.
26
A Valuation Date occurs every day that the principal exchange is open
for business and a value is available for the underlying assets of the
Fund. Currently, the principal exchange is the Toronto Stock Exchange.
We may change the principal exchange to another exchange.
SALES CHARGE OPTIONS
10.1 General Information
You may have to pay sales charges when depositing or withdrawing
from the Contract, depending on the sales charge option of the
Funds that you choose. There are two sales charge options under
the Contract: ISC option and DSC option.
The amount of sales charges are determined by the Fund category
and sales charge option of the Fund.
While the Contract is in force, you may request that Funds that are
allocated under one sales charge option be moved to a Fund of
another sales charge option in accordance with our Administrative
Rules in effect at the time. Moving between Funds of different sales
charge options is processed as a withdrawal of Units of one Fund
and a Deposit to the Contract. Guarantees will be impacted and
sales charges and withdrawal fees may be triggered.
date of each Deposit. Units allocated to your Contract under this
option are called DSC Units.
10.3.1 Deferred Sales Charge (DSC) Upon Withdrawal
The DSC is charged as a percentage of the market value as of the
Deposit date of the DSC Units withdrawn. The percentage charged
varies based on the time that has passed since the effective date
of Deposit. The DSC schedule is as follows:
The movement between Funds of different sales options
are subject to market fluctuations. As this transaction will
impact guarantees, you may want to consult your Advisor
before requesting such transaction.
We reserve the right to change, add or delete sales charge options
at any time.
DSC (as a percentage of the
market value of DSC Units
as of the Deposit date)
During the 1st year after Deposit
6.0%
When the Units are
withdrawn:
10.2 Initial Sales Charge Option (ISC)
With this option, you negotiate the sales charge with your Advisor.
The negotiated sales charge is between 0% and 5% of your
Premium. The negotiated sales charge will be deducted from the
Premium to determine the Deposit. For example, if you invest
$25,000 and you negotiate a 5% initial sales charge, $23,750
will be the amount of the Deposit and $1,250 will be paid to your
Advisor as a sales charge. Units allocated to a Fund under this
option are called ISC Units. There is no Deferred Sales Charge
when you make a withdrawal against these Units.
10.3
Deferred Sales Charge Option (DSC)
With this option, you pay no sales charge to your Advisor at the
time of Deposit. Instead, you agree to pay a Deferred Sales Charge
to us if you request a withdrawal within six years of the effective
10.4
During the 2nd year after Deposit
5.0%
During the 3 year after Deposit
4.0%
3.0%
During the 5th year after Deposit
2.0%
1.0%
0.0%
rd
th
th
th
This Deferred Sales Charge schedule is subject to change and any
new Deposits made after such change will be subject to the new
Deferred Sales Charge schedule.
We withdraw Units from the Funds you have selected in the order
they were allocated to a Fund – first in, first out, withdrawing the
oldest Units first until the total requested amount is withdrawn.
Free Withdrawal Privilege for DSC Units
You are entitled in each calendar year to withdraw 10% of the number of DSC Units allocated to a Fund without paying DSC. Any unused portion of the
privilege may not be carried forward from one year to the next. We reserve the right to discontinue or change this right at any time.
The number of DSC Units that may be withdrawn from a Fund each year under the free withdrawal privilege for DSC Units is the sum of the following:
(i) 10% of the DSC Units that were allocated to the Fund at the end of the previous calendar year, and
(ii) 1 0% of DSC Units allocated to the Fund in the current year, prorated by the number of days the Units have been held in the current year (not including
the day of allocation) (In prorating, we divide by 366 for leap years and by 365 for non-leap years); less
(iii) any DSC Units withdrawn from the Fund in the current year under this privilege.
The standard provision under Processing a Withdrawal will apply to free withdrawals.
The following example is for a non-registered Contract:
Date
Transaction/Event
Amount
Unit Value
Number of Units
Free Units
Dec 30, 2016
Deposit
$25,000.00
$10.00
2,500
250 (2,500 X 10%)
Jan 12, 2017
Deposit
$5,500.00
$11.00
500
25.890*
Apr 20, 2017
Deposit
$6,000.00
$12.00
500
12.466**
Jul 20, 2017
10% free withdrawal requested
$3,748.63
$13.00
—
288.356
* (10% of 500 DSC Units = 50 free additional Units in aggregate) x 189/365† = 25.890 free Units available to be withdrawn as of July 20, 2017
** (10% of 500 DSC Units = 50 free additional Units in aggregate) x 91/365†† = 12.466 free additional Units available to be withdrawn from your Fund as
of July 20, 2017
Total free Units available to be withdrawn from your Fund as of July 20, 2017 are 250 + 25.890 + 12.466 = 288.356 free additional Units.
†
189 represent the number of days from January 13 to July 20 inclusive
††
91 represent the number of days from April 21 to July 20 inclusive
27
11.FEES
will have the rights outlined under the Fundamental Change Rule.
Please see section 14.2, Fundamental Changes and Other Changes
for more information.
The management fee is the fee you pay for the management of the
Funds, commissions and service fees payable to Advisors.
The insurance fee is the fee you pay for the insurance benefits
provided by the Contract. The insurance benefits provided by the
Contract are the Contract Maturity Benefit, the Death Benefit and
Resets of the Death Guaranteed Amount.
The management fee, insurance fee together with operating
expenses and applicable taxes of a Fund are incorporated in the
Management Expense Ratio (MER) of a Fund.
The Contract is subject to switch fees. We reserve the right, in certain
circumstances, to charge an early withdrawal fee and an early switch
fee to dissuade activity that may be detrimental to the Funds and all
policyholders. Certain fees are subject to applicable taxes.
11.2Management Fee, Insurance Fee And Operating Expenses
Each Fund pays a management fee to us for the management of the
Fund, which includes the costs for investment management services
and facilities to support the Funds, and commissions and service
fees payable to Advisors.
Where the Fund invests in an Underlying Fund, the management fee
and the MER of the Fund includes the corresponding management
fee and the MER of the Underlying Fund(s), and there is no
duplication of management fees for the same service, and the
management fee and MER of the Fund includes the management
fee and MER of the Underlying Fund.
You do not directly pay for the management fees, insurance fees,
operating expenses and applicable taxes as they are paid by the
Fund. These fees and applicable taxes will reduce the returns
earned by the underlying assets within the Fund.
Subject to the Fundamental Changes and Other Changes provision
described in section 14.2, we may change the management fee for
any Fund by sending you written notice of the change at least
60 days in advance.
Please see the Fund Facts for the management fee,
insurance fee, and maximum insurance fee of each Fund.
11.3 Management Expense Ratio
The “management expense ratio” (MER) shows the historical,
annual cost of investing in a Fund and may vary from year to year. It
includes the management fees, operating expenses, insurance fee
and applicable taxes paid by the Fund. You do not directly pay the
MER as it is paid out of the Fund before the calculation of the Unit
Value. Where the Fund invests in an Underlying Fund, there is no
duplication of fees for the same service.
The MER is calculated as follows:
Each Fund also pays an insurance fee to us for providing the
insurance benefits of the Contract. Each Fund also pays its own
operating expenses. Operating expenses accrue daily and include,
among other things:
MER = 100 x m
anagement fee + operating expenses +
insurance fee + applicable taxes
• Audit, accounting and financial costs
Please see the Fund Facts for more information about MERs.
• Custodial and trustee costs
• Legal and regulatory costs
11.4Switch Fees, Early Withdrawal Fees, Early Switch Fees and
Recovery of Expenses
• Bank service fees and interest charges
• Policyholder communications and related administrative costs
• Applicable taxes
Depending on the risk level and volatility of the Fund, each Fund will
be assigned, at our discretion, an insurance fee. The more risk and
volatility associated with a Fund, the higher the insurance fee is for
that Fund.
Each Fund is responsible for the cost of the insurance fee, which
can be increased at any time by the Company. We may change
the amount of the insurance fee of a Fund, up to the maximum
insurance fee of the Fund, without prior notification. In this case we
will let you know annually whether any such increases occurred.
If there is an increase to the maximum insurance fee of the Fund,
we will provide you with at least 60 days advance notice and you
28
The management fees, operating expenses, insurance fee and
applicable taxes are calculated and accrued based on the market
value of the Fund’s assets on each Valuation Date and are paid to
us monthly.
average net assets of the Fund during the year
Frequent trading in and out of Funds may have a negative impact
on the overall performance of the affected Funds. Such activity is
detrimental to all policyholders in the affected Funds. To discourage
attempts at market timing, this Contract is subject to switch fees.
ivari also reserves the right to charge an early withdrawal fee, an
early switch fee or for any expenses or investment losses that occur
as a result of an error on your part (e.g. NSF cheque).
11.4.1Switch Fee
We will deduct a switch fee of 2% of the amount switched for the
fifth and subsequent switches in the same calendar year. Please
refer to section 5.2 for information on the switch fee.
The switch fee will reduce the Maturity Guaranteed Amount and
Death Guaranteed Amount proportionally.
If your Contract is non-registered, the switch fee will trigger a
disposition of the Fund units which is taxable under the Income Tax
Act (Canada). For more information, please refer to section 15.2,
Taxation of Non-Registered Contracts. If your contract is registered,
the switch fee will not be subject to withholding taxes.
ivari reserves the right to change this fee at any time upon 60 days
advance notice.
11.4.2Early Withdrawal Fee
We may apply an early withdrawal fee of 2% of the value of Units
withdrawn if the unscheduled withdrawal is made within 90 days
of allocating those Units to the Fund. This fee does not apply to
scheduled withdrawal payments nor to the 10% free withdrawal
privilege. ivari reserves the right to change this fee at any time upon
60 days advance notice.
The early withdrawal fee will reduce the Maturity Guaranteed
Amount and the Death Guaranteed Amount proportionally.
If your Contract is non-registered, the early switch fee will trigger a
11.4.3Early Switch Fee
We may apply an early switch fee of 2% of the value of Units
switched if an unscheduled switch is made within 90 days of
allocating those Units to the Fund. This fee does not apply to
scheduled switches. ivari reserves the right to change this fee at
any time upon 60 days advance notice.
12.
TERMINATION OF THE CONTRACT
This Contract will be terminated and all of our obligations under this
Contract will cease upon any one of the following events:
• s urrender of all the Units to the Contract’s credit upon your
request, and payment to you of the total proceeds of such
surrender request, less any fees, sales charges and taxes.
• payment of the Death Benefit.
• o n the Contract Maturity Date, subject only to payment to you of
the Contract Maturity Benefit or conversion of this Contract to a
single life annuity contract.
• s ubject to any applicable legislative requirements, surrender of all of
the Units to the Contract’s credit and payment to you of the Market
Value of the Contract, less any fees, sales charges and taxes,
• if at any time the Market Value of the Contract and the Contract
Maturity Guaranteed Amount are less than $500, at ivari’s sole
discretion upon 30 days notice.
13.
COMPENSATION PAID TO ADVISORS
The Contract is sold through independent Advisors. We compensate
the Advisor who solicits the Contract. The amount of compensation
depends on the agreement between ivari and the independent Advisor.
We pay sales commission which may vary based on the sales
charge option, the Fund and in some cases the amount of Deposit.
Your Advisor also receives service commission for ongoing service.
No compensation is paid for:
The early switch fee is paid as a withdrawal of Units and will reduce
the Maturity Guaranteed Amount and the Death Guaranteed Amount
proportionally.
• T op-up Benefit paid on the Contract Maturity Date and the Death
Benefit Date
• Switches between Funds (i.e. within the same sales charge option)
If your Contract is non-registered, the early switch fee will trigger a
• W
ithin the same Contract, conversions from a RRSP/LIRA/LRSP/
RLSP to the applicable RRIF/LIF/ RLIF/PRIF
14.
OTHER IMPORTANT INFORMATION
11.4.4Recovery Of Expenses
We reserve the right to charge you for any expenses or investment
losses that occur as a result of your (non-sufficient funds) NSF
payment when making a Deposit to the Contract. Any charges passed
on to you will correspond to any expenses or losses incurred by ivari.
11.4.5Additional Fees
We reserve the right to charge a fee for any administrative service
provided under the Contract. We reserve the right to change the
amount or the nature of such administrative fees at any time.
14.1 Claims of Creditors
This Contract may be protected from claims of creditors when
the beneficiary is the spouse, parent, child or grandchild of the
annuitant (in Quebec, the Beneficiary must be married or civil
union spouse, the ascendant or descendant of the Owner), or if the
Beneficiary is named irrevocably. It is not clear whether creditor
protection is available if the Contract is held in a nominee plan.
This information is of a general nature only based on ivari’s
understanding of the law at the time of printing. There
are important limitations with respect to this protection.
Certain facts may void creditor protection. A contract holder
is advised to obtain legal advice with respect to his or her
personal circumstances.
29
14.2 Fundamental Changes And Other Changes
We may make certain changes under this Contract that are considered
a fundamental change. A fundamental change is defined as:
• an increase in the management fee of a Fund;
• a change in the fundamental investment objectives of a Fund;
• a decrease in the frequency with which Units of a Fund are
valued; or
• an increase in the maximum insurance fee of a Fund.
In the case where an ivari Guaranteed Investment Fund invests
in an Underlying Fund, we also reserve the right to change such
Underlying Fund. If such a change constitutes a Fundamental
Change, you will have the rights described in the section
immediately below.
In the event of a fundamental change or a Fund Closure, we will
give you at least 60 days prior written notice (the “Notice Period”)
before making the change. You have the right to: (a) switch to a
Similar Fund before the expiry of the Notice Period; or (b) if we do
not offer a Similar Fund, withdraw the Units in the Funds affected by
the fundamental change without incurring sales charges. We must
receive your written response at least 5 days prior to the expiry of
the Notice Period.
During the Notice Period, you may not switch to a Fund subject to a
Fund Closure, except that you may switch to a Fund subject to other
types of Fundamental Changes if you agree to waive the right to
surrender without sales charges.
We will also notify the insurance regulators and the Canadian
Life and Health Insurance Association Inc. at the same time we
notify you of the change (unless such notice is not practical in the
circumstances, in which event we will provide notice as soon as
possible and as reasonably practical), and amend or re-file the
Information Folder to reflect the change. The foregoing may be
superseded by any regulatory changes governing individual variable
insurance contracts.
A Similar Fund is a Fund that; (a) has a comparable investment
objective, (b) is in the same Fund investment category, (c) has
the same or lower management fee and insurance fee, and (d) is
valued at the same or greater frequency as the Fund subject to the
Fundamental Change.
Changing an Underlying Fund will not constitute a Fundamental
Change provided that all of the conditions for a Similar Fund
continue to apply to the Fund immediately following the change.
A similar Underlying Fund is one that: (a) has a comparable
fundamental investment objective (b) is in the same investment fund
category and (c) has the same or lower management fee.
The investment objective of the Underlying Funds may not be
changed unless approved by the unitholders of the underlying
mutual fund. Upon such approval, you will be provided notice
of the change.
30
ivari Guaranteed Investment Funds (GIPs) invest in multiple
Underlying Funds. Periodic changes to Underlying Funds or to the
target weightings of the ivari Guaranteed Investment Funds will
not normally constitute a Fundamental Change. If the change meets
the definition of a Fundamental Change, you will have the rights
described in the section above.
14.3 Limitation of Actions
Every action or proceeding against an insurer for the recovery of
insurance money payable under the contract is absolutely barred
unless commenced within the time set out in the Insurance Act, or
other applicable provincial legislation.
15.
TAX IMPLICATIONS
This is a general summary of the income tax consideration
for individual Owners who are Canadian residents. It
does not address all possible tax considerations and you
should consult your tax advisor to address your personal
tax circumstances. The summary is based on the current
Income Tax Act (Canada).
Legally, ivari is considered the Owner of the assets of the Funds.
However, for tax purposes, each Fund is treated as a trust, separate
from ivari. ivari does not pay taxes on income or net gains generated
by the Fund. Rather, each Fund will allocate income, capital gains
and capital losses to you based on the number of Units allocated to
you under the Contract.
You are responsible for the proper reporting and payment of taxes,
though ivari may suggest an interpretation of certain features
offered under the Contract based on our understanding of current
tax legislation. We recommend that you consult your tax advisor
regarding the tax treatment of the benefits under this Contract as
they apply to your individual circumstances.
We reserve the right to withdraw Units of a Fund or Funds to satisfy
your tax liability towards the Canada Revenue Agency and for which
ivari is responsible for collecting, e.g. non-resident withholding tax.
15.2 Taxation of Non-Registered Contracts
Each year, you will be allocated income and capital gains or capital
losses realized by a Fund with Units allocated to you.
If you withdraw Units of a Fund due to the death of the Owner or a
switch between Funds, you may realize a capital gain or a capital loss.
Sales charges including DSC may be deducted as a capital loss in
the year you dispose of your Units.
The withdrawal of Units to pay for the switch fee, early withdrawal
fee,early switch fee, and any other fee or administrative charge can
result in a capital gain or a capital loss in the year of withdrawal.
Should you become a non-resident of Canada, the withdrawal of
Units may be required to satisfy withholding tax liabilities; such a
withdrawal may result in a capital gain or capital loss.
The discontinuance of a Fund and reallocation to another Fund
is a disposition for income tax purposes, which can result in a
capital gain or a capital loss. The substitution or re-balancing of an
Underlying Fund(s) is also considered a disposition for income tax
purposes, which can result in a capital gain or a capital loss.
We will send you a tax slip at the end of each year showing the
income, capital gains and capital losses for Units of each Fund
allocated to you.
15.2.1Taxation of Contract Maturity Benefit and Death Benefit
Top-Up
If the Contract Maturity Guaranteed Amount or Death Guaranteed
Amount is greater than the Market Value of the Contract on the
Contract Maturity Date or Death Benefit Date, as the case may be, we
will make up the difference. The difference is called “Top-up Benefit”.
The Top-up Benefit is taxable when it is paid as part of the Contract
Maturity Benefit or Death Benefit.
The taxation of the Top-up Benefit of a non-registered contract is not
certain at this time. We recommend that you consult your tax advisor
to consider the tax treatment of Top-up Benefits in your individual
circumstances. Based on our current understanding of the Income
Tax Act (Canada), we will report the Top-up as a capital gain.
15.3 Taxation of Registered Contracts
Your Contract may be issued as a registered plan under the Income
Tax Act (Canada).
In a registered Contract, no tax is payable on investment income
and earnings allocated to your Contract or on capital gains realized
as a result of a switch of Funds.
15.3.1RRSP
Deposits made to an RRSP can be deducted on the personal
income tax return by the person making the Deposit, up to the
maximum permitted under the Income Tax Act (Canada). If you own
a spousal RRSP, your spouse who is contributing to your RRSP can
make the deduction, subject to allowable limits.
Withdrawals from an RRSP are taxable. We are required to withhold
and remit the applicable taxes on the amount withdrawn.
There are no tax consequences on the conversion or transfer from
an RRSP Contract to a RRIF Contract or another RRSP Contract.
15.3.3RRIF/LIF/RLIF/PRIF
If your contract is a RRIF,LIF, RLIF or PRIF, you are required to take
the RRIF Minimum Amount as determined by the Income Tax Act
(Canada) each calendar year.
Payments and cash withdrawals from a RRIF, LIF, RLIF or PRIF will
be included in your income for the year the payments are made.
We are required to withhold taxes at the prescribed rates if you
withdraw an amount in excess of the RRIF Minimum Amount. The
difference is subject to withholding taxes.
15.3.4TFSA
Deposits made to a TFSA are not tax deductible. Any unused TFSA
contribution room will accumulate and can be carried forward to
subsequent years.
Withdrawals are not subject to income tax and will restore your
contribution room equal to the withdrawal(s) amount in the
following calendar year. If you withdraw and re-contribute in the
same taxation year, you may be subject to significant tax penalties
imposed by the CRA.
15.3.5Taxation of Contract Maturity Benefit and Death Benefit
Top-Up
The Top-up benefit amount that we pay on the Contract Maturity
Date or the Death Benefit Date is considered to be part of the market
value of the contract. It will be taxable to you, your beneficiary or
your estate unless it is transferred to another registered plan.
16.CUSTODIAN
The custodian of the Funds is RBC Dexia Investor Services Trust,
200 Bay Street, North Tower, Toronto, Ontario, M5J 2J5.
17.AUDITOR
The auditors of the Funds is Ernst & Young LLP, 222 Bay Street,
Toronto, Ontario, M5K 1J7.
18.
MATERIAL CONTRACTS AND MATERIAL FACTS
In 2008, ivari entered into a contract with RBC Dexia Investor
Services Trust for the provision of investment accounting services in
respect of the Funds. There are no other materials facts relating to
your Contract that have not been otherwise disclosed.
15.3.2LIRA/LRSP/RLSP
Withdrawals from a LIRA/LRSP/RLSP are taxable. We are
required to withhold and remit the applicable taxes on the amount
withdrawn.
There are no tax consequences on the conversion or transfer from
an LIRA/LRSP/RLSP Contract to another LIRA/LRSP/RLSP Contract
or the applicable LIF/RLIF/PRIF Contract.
19.
INTEREST OF MANAGEMENT
No director or officer of ivari has had any material interest in any
transactions within 3 years prior to the date of filing of this information
folder that would materially affect ivari with respect to the Funds.
20.GLOSSARY
For terms used in this folder, please see section 1 of the Annuity
Policy, page: 34.
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32
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ivariTM
ANNUITY POLICY
In this Contract, “you” and “your” mean the Owner of the Contract. “We”, “us” and “our” means ivari.
ivari is the sole issuer of this annuity Contract and the provider of the guarantees under the Contract.
Douglas W. Brooks
John O’Hoski
Corporate Secretary
33
Annuity Policy
1.DEFINITIONS OF TERMS USED IN THE ANNUITY POLICY AND
THE INFORMATION FOLDER
eferred Sales Charge (DSC) is a sales option where you pay no
D
sales charge to your Advisor at the time of Deposit. You will pay a DSC
if you withdraw Units within 6 years of the effective date of the deposit.
eferred Sales Charge Units (DSC Units) means Units allocated
D
to a Fund under the Deferred Sales Charge option.
D
eposit(s) means the Premium(s) received from you less applicable
taxes and sales charges. It does not include the dollar amount of any
switches between Funds.
Effective Date is the date the Contract becomes effective. It is the
Valuation Date coinciding with or next following the later of (i) the
date we receive the first Deposit to the Contract; and (ii) the date we
confirm that the Contract has been set up in accordance with our
Administrative Rules.
Fund or Fund(s) means the segregated funds currently available
under the ivari GIF Contract.
Guaranteed Amount means the minimum amount that is payable
at a time specified in the Contract, whether on death, contract
maturity or any other stated time defined in the Contract.
Head Office means our office at 500 – 5000 Yonge Street, Toronto,
Ontario M2N 7J8. If we change our Head Office, we will notify you
in writing.
Initial Sales Charge (ISC) means a fee, agreed upon by you, that
is paid to your Advisor. The fee is deducted from the amount we
receive from you before Units are allocated to your Contract. There
is no deferred sales charge when you make a withdrawal against
these Units.
Initial Sales Charge Units (ISC Units) means Units allocated to a
Fund under the ISC option.
Contract Maturity Date is the date that the Maturity Benefit is
calculated. It refers to December 31st of the year in which the last
surviving Annuitant turns 100 years of age, or the last Valuation
Date of that year if December 31st is not a Valuation Date (except
for locked-in plans registered under the laws of Newfoundland and
Labrador and New Brunswick).
arket Value of the Contract is equal to the sum of [(Unit Value x
M
number of Units) for each Fund you hold in the Contract] at the close
of business in a given day if it is a Valuation Date, or if it is not a
Valuation Date, the immediately preceding Valuation Date.
Owner means the Owner or Owners of the Contract, as named in
the application or as changed in accordance with the Contract.
Contract Maturity Guaranteed Amount means the minimum
amount that is payable on the maturity of the Contract.
P olicy Anniversary Date means the anniversary of the Effective
Date of the Contract.
D
eath Benefit is the benefit payable on the Death Benefit Date.
The death benefit is calculated as the greater of the Death Guaranteed
Amount and the Market Value of the Contract on the Death Benefit Date.
Premiums are the amounts we receive from you for allocation to the
Contract before deducting applicable taxes and sales charges.
eath Benefit Date means the Valuation Date we receive
D
satisfactory proof of the death of the last surviving Annuitant in
accordance with our Administrative Rules.
eset of the Death Guaranteed Amount means the transaction
R
that occurs every year, on the Policy Anniversary Date, to lock in
market gains, if any, for the Death Guaranteed Amount.
eath Guaranteed Amount means the minimum amount that is
D
payable on the death of the last surviving Annuitant. (See Reset of
the Death Guaranteed Amount.)
Resets are an insured benefit applied or attempted automatically
to increase the value of the Death Guaranteed Amount. Where the
total market value of the Funds is lower than the then current value
of the Death Guaranteed Amount, the Reset is attempted but there is
no change to the Death Guaranteed Amount. The application of the
Reset to each of these features is described in section 8, Guarantees.
In the Annuity Policy and Information Folder, the following terms shall
have the following meanings:
Advisor means the independent person, firm, distributor, corporation
or other entity duly licensed by the appropriate regulatory authorities
to solicit applications for insurance in the applicable jurisdiction, and
with whom ivari has a contractual agreement.
Annuitant is the measuring life on whom the Contract Maturity
Benefit and the Death Benefit is based. For registered plans, you
must be the Annuitant; for non-registered plans, you may be the
Annuitant or you may designate another person to be the Annuitant.
Beneficiary is the individual or entity you designate to receive the
Death Benefit on the death of the last surviving Annuitant.
Business Day means a day other than a Saturday, Sunday or
statutory holiday in the Province of Ontario, Canada.
Contract consists of the ivari Guaranteed Investment Funds
annuity policy, any endorsements or riders incorporated by reference
into the annuity policy at the time of its issue, the application once
completed and any amendments agreed to by us in writing after the
Contract is issued.
34
Administrative Rules are rules, policies and procedures that we
may establish from time to time to administer your Contract. We may
change Administrative Rules without notice to you. The Administrative
Rules that apply are those in effect at the time of the transaction.
ontract Maturity Benefit is the benefit payable or used to
C
calculate an immediate annuity when the Contract matures (the
Contract Maturity Date). The benefit is calculated as the greater of
the Contract Maturity Guaranteed Amount and the Market Value of
the Contract on the Contract Maturity Date.
RIF Minimum Amount means the minimum amount that is
R
required to be withdrawn from the RRIF or locked-in income
Contracts each calendar year under the Income Tax Act (Canada).
Similar Fund means a Fund that has a comparable investment
objective, is in the same Fund investment category, has the same
or lower management fee, insurance fee and is valued at the same
or greater frequency as the comparable Fund. See section 14.1
Fundamental Changes and Other Changes.
We will not be bound by an amendment made by you or your Advisor
unless it is in writing and signed by our President together with one
of our Vice-Presidents.
Successor Annuitant means a person who will become the
Annuitant when the primary Annuitant dies and for the purposes of
the Contract will be considered the Annuitant. A Successor Annuitant
can be designated for RIF Contracts and in that case, only a spouse
or common-law partner (as the terms are defined under the Income
Tax Act (Canada)) can be designated as a Successor Annuitant. You
may appoint a Successor Annuitant only while the Annuitant is living.
This Contract is available as a non-registered Contract or if you
request that your Contract be registered as a Retirement Savings
Plan (RSP), a Retirement Income Plan (RIF), a locked-in plan (LIRA,
LRSP, RLSP, LIF, PRIF, RLIF) or as a Tax Free Savings Account
(TFSA), the RSP, RIF, locked-in plan or TFSA endorsement,
as applicable, will be part of the Contract. The terms of the
endorsement will override any conflicting provisions of the Contract.
Underlying Fund means a mutual fund or other type of Fund that
we may select in which a Fund invests from time to time.
2.2 Rescission Rights
Unit Value is determined by dividing the net asset value of a Fund by
the number of Units allocated to the Fund on a Valuation Date. The
Unit Value of a Fund remains in effect until the next Valuation Date.
Units are a notional measurement to determine your participation
interests in a segregated fund.
Valuation Date means every day that the principal exchange is
open for business, and a value is available for the underlying assets
of the Fund. Currently, the principal exchange is the Toronto Stock
Exchange. The end of one Valuation Date and the beginning of the
next Valuation Date is defined in accordance with our then current
Administrative Rules with respect to cut-off times for transactions.
For example, a Valuation Date may end at 4 p.m. Any transaction
requests received after that time will be deemed received on the next
following Valuation Date.
2.
THE CONTRACT
2.1 Nature of the Contract
The Contract consists of this individual variable annuity policy (the
“Annuity Policy”), the application form once completed and accepted
by us, endorsements issued with the Annuity Policy and written
amendments we agree to after your Contract is issued.
The following information presented in the Fund Facts documents
also forms part of the Contract:
• Name of the Contract and the segregated funds
• Management Expense Ratio, fees and expenses
• Risk disclosure
• Right to cancel
The Fund Facts documents are included in the Information
Folder and are also available on our website at www.ivari.ca. The
information provided in the Fund Facts is accurate and complies
with the requirements of the Individual Variable Insurance Contract
Guideline as of the date the information was prepared. Any error
in the Fund Facts information described above will be remedied by
correction of the error, where reasonable, but will not entitle you to
benefit from the error.
You may cancel the Contract, any Deposit(s) or any Fund allocation
(switch) provided you send us written notice requesting the
cancellation within two (2) Business Days of the earlier of (i) the date
you receive the transaction confirmation; and, (ii) five (5) Business
Days from the date it is mailed by us. You will be deemed to have
received the transaction confirmation five (5) Business Days after we
have mailed it to you.
On the Valuation Date we receive your request for cancellation of:
(a) the Contract or a Deposit, the value of cancelled Units will be
refunded to you.
(b) a n allocation between Funds (switch), the value of the cancelled
Units will be returned to the immediately preceding Fund
allocation.
The value of the cancelled Units will be the lesser of (i) the market
value of the Units on the Valuation Date of the Deposit or switch,
and (ii) the market value of the Units on the Valuation Date your
cancellation request was received by us. Any sales charges or other
fees charged to you for the Deposit or switch will be reversed. A
cancellation of a Fund switch will include a reversal of any fees
resulting from the switch but will not be refunded in cash. A request
for cancellation must clearly identify the specific transaction you
wish to cancel.
2.3Effective Date of the Contract and Policy Anniversary Date
The Contract takes effect on the Valuation Date coinciding with or
next following the later of (i) the date on which we receive your first
Deposit; and (ii) the date we confirm that the Contract has been set
up in accordance with our Administrative Rules. Delivery of a copy of
the Annuity Policy does not constitute acceptance of a Contract. The
date the Contract takes effect is called the “Effective Date”.
The Effective Date determines the Policy Anniversary Date.
35
2.4 Effective Minimum Guaranteed Amount
Subject to any applicable legislative requirements, if all the
Guaranteed Amounts, including the Death Guaranteed Amount and
the Contract Maturity Guaranteed Amount are less than $500, we
reserve the right to terminate the Contract upon 30 days’ notice
and forward to you the Market Value of the Contract, minus any
applicable charges, fees and taxes.
2.5 Number of Contracts Allowed
We have the right to limit the number of Contracts with the same
Annuitant or Successor Annuitant by declining subsequent applications.
2.6 Contract Amendment
We reserve the right to amend the Contract at any time if legislation
or regulation which affects the terms of the Contract is changed. We
will inform you of changes to the Contract resulting from legislative or
regulatory amendment along with regular communications sent to you.
2.7 Administrative Rules
We adopt Administrative Rules for the consistent administration of all
Contracts. The Administrative Rules are those in effect at the time
the transaction is processed and may change from time to time,
without notice to reflect corporate policy, economic and legislative
changes. As these Administrative Rules change, it may affect the
administration of your Contract.
3.
GENERAL PROVISIONS
3.1Owner
As Owner, you are entitled to all rights granted under the Contract,
subject to any limits imposed by law. The Owner must be a Canadian
resident at the time the Contract is issued.
Your rights may be limited if you have designated an irrevocable
beneficiary or if you have assigned or hypothecated the Contract.
3.2 Successor Owner
You may designate a successor Owner to assume ownership
of the Contract upon your death. If you are also the Annuitant,
ownership will not pass to the successor Owner unless you have
also designated a Successor Annuitant. Upon your death, the Death
Benefit will become payable and the Contract will end, unless you
have designated a Successor Annuitant and the Successor Annuitant
does not predecease you.
In the Province of Quebec, the successor Owner is called a
“subrogated policyholder”.
3.3 Joint Owners
You may along with another person hold the Contract in joint
ownership. The type of joint ownership available for this Contract
is by “Joint Tenancy with Right of Survivorship”. Under this type of
ownership, each joint Owner holds an undivided interest in the entire
Contract. On the death of one Owner, who is not the Annuitant or if
36
you have designated a Successor Annuitant, the surviving Owner will
become the sole Owner. While both of the joint Owners are living, the
consent and instruction of both joint Owners is required to effect any
changes or transactions made within the Contract.
This form of ownership is not available in Quebec.
3.4Annuitant
The Annuitant is the person on whose age and life the Contract
Maturity Benefit is measured and on whose death the Death Benefit
is payable.
The Annuitant must be a Canadian resident at the time the Contract
is issued.
Upon request and subject to our consent, you may change a
previously designated Annuitant for a non-registered Contract,
except for a TFSA Contract. Before consenting to the change, we
may request information, including acceptable medical evidence of
the new Annuitant’s health. We may refuse consent if the medical
evidence is not satisfactory or is incomplete. Following a change of
Annuitant, the Contract Maturity Date and the determination of the
latest age for deposit will be based on the new Annuitant’s age.
3.5 Successor Annuitant
You may, during the Annuitant’s lifetime, appoint a Successor Annuitant
to replace the deceased Annuitant for a non-registered Contract and
a Contract registered as a RIF. For a TFSA Contract or a Contract
registered as a RIF, the Successor Annuitant must be your spouse or
common-law partner, as defined in the Income Tax Act (Canada).
You may also, during the Annuitant’s lifetime, remove a previously
made Successor Annuitant designation.
If you have designated a Successor Annuitant under the Contract
who is still alive on the death of the Annuitant, no Death Benefit is
payable until the death of the last surviving Annuitant.
3.6Beneficiary
The Beneficiary is the person you designate to receive the Death
Benefit after the death of the last surviving Annuitant. You may
change or revoke the Beneficiary in accordance with the law
applicable to this Contract. If you have designated the Beneficiary as
irrevocable, you may not change or revoke the designation without
the Beneficiary’s consent.
Any appointment of a Beneficiary, or any change or revocation
of an appointment, must be made in writing and will be effective
when recorded by us. We are not bound by a designation, change
or revocation, which has not been received and recorded by us at
the date we make a payment or take any action. We assume no
responsibility for the validity or effect of any appointment,
change or revocation.
If there is no surviving Beneficiary at the time of the last surviving
Annuitant’s death, the Death Benefit will be paid to you if you are
not the Annuitant, otherwise to your estate. If you have designated a
Successor Owner, the benefit will be payable to the Successor Owner
in this case. Special rules apply to Contracts held in nominee name.
For a registered or TFSA Contract, you do not pay taxes on earnings
as long as they remain inside the plan.
• an RRSP to a RRIF;
4.
PLAN TYPES AVAILABLE
• a LIRA or LRSP to a LIF;
T his Contract may be non-registered or registered for Canadian tax
purposes. Please see section 4.2 for the registered plans available
under this Contract.
• a LIRA governed by the laws of Saskatchewan to a PRIF; or
• a LIRA governed by the laws of Manitoba to a PRIF; and
• a RLSP to a RLIF
4.1 Non-Registered Contracts (other than TFSA Contracts)
The Owner of a non-registered Contract may be an individual, a
corporation or any type of ownership permitted under the laws
governing your Contract and our Administrative Rules. You may be
the Annuitant or designate another person as Annuitant.
You may be able to transfer ownership of a non-registered Contract.
A transfer of ownership must be made in accordance with the laws
applicable to your Contract and our Administrative Rules.
You cannot borrow money directly from a non-registered Contract;
however, a non-registered Contract may be assigned as security
for a loan to the lender. If you assign your Contract to the lender,
the rights of the lender may take precedence over the rights of any
other person having a claim over the Contract. An assignment of this
Contract may restrict or delay certain transactions.
4.2 Registered Contracts and TFSA Contracts
Unless you indicate otherwise, we will automatically change the
registration status as follows from:
The Contract Maturity Date remains at December 31st of the year
the last surviving Annuitant turns 100; age 80 for locked-in plans
registered under the laws of Newfoundland and Labrador; age 90
for locked-in plans registered under the laws of New Brunswick. All
terms related to registered plans and TFSA contracts are subject to
change as required by the laws of the applicable jurisdiction.
5.DEPOSITS
5.1 Making Deposits
While this Contract is in force, you may make Deposits in accordance
with our Administrative Rules until the latest age to make a Deposit.
The latest age to make a Deposit varies based on the plan type of
the Contract and is set out below:
Under a registered or TFSA Contract, you are both the Owner and
Annuitant.
The Registered Plans available under this Contract are: Registered
Retirement Savings Plan (RRSP), Spousal RRSP, Registered
Retirement Income Fund (RRIF), and Spousal RRIF. This Contract can
also be registered as a Locked-in savings plan, such as Locked-in
Retirement Account (LIRA) (also called Locked-in Retirement Savings
Plan), Restricted Locked-in Savings Plan (RLSP) and as a locked-in
income plan, such as a Life Income Fund (LIF), Prescribed Retirement
Income Fund (PRIF) and Restricted Life Income Fund (RLIF). This
Contract is also available as a Tax Free Saving Account (TFSA).
You cannot borrow money directly from a registered Contract and
you cannot use a registered Contract as security for a loan.
If the Contract is registered as an RSP, Deposits can be made until
December 31st of the year the Annuitant turns 71 or the latest age to
hold an RRSP under the Income Tax Act (Canada), at which time the
RRSP must be converted into a RRIF, an immediate annuity or taken
as a cash withdrawal.
If the Contract is registered as a locked-in savings plan, you may
make Deposits into the plan until December 31st of the year the
Annuitant turns 71 or the latest age to hold locked-in savings
plan under the Income Tax Act (Canada), at which time it must be
converted into a locked-in income plan.
Plan Type
Latest Age to Maket a
Deposit
Non-registered, RRIF, Spousal
RRIF, LIF, RLIF, PRIF, TFSA
The day before the Annuitant
turns 76.
RRSP, Spousal RRSP,
LIRA, LRSP, RLSP, Newfoundland
and Labrador LIF
December 31st of the year the
Annuitant turns 71.*
* Or the latest age to hold an RRSP under the Income Tax Act (Canada),
except that it cannot exceed the day before the Annuitant’s age 76.
There are minimum Deposit requirements for this Contract. The
minimum initial Deposit required to issue your Contract is $500. Our
Administrative Rules also provide minimum amounts for subsequent
deposits and Fund allocations. These minimum amounts may vary
depending on the deposit method you choose, for example PreAuthorized Chequing (PAC) or payment by cheque.
A Deposit in excess of $2 million requires prior approval.
All payments must be made in the lawful currency of Canada.
If your payment comes back to us marked NSF (Not Sufficient
Funds), we reserve the right under our Administrative Rules to charge
a fee to cover our expenses. Please see section 12.5, Recovery of
Expenses.
The Valuation Date for your Deposit is as set out in section 10.2,
Valuation Date.
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5.2 Deposits by Scheduled Pre-Authorized Chequing Plan
Switches can be made on a scheduled or an unscheduled basis. No
sales charges apply to switches. Fund switches between different
Contracts are not permitted.
You may establish a pre-authorized chequing (PAC) plan to make
deposits on a scheduled basis.
The pre-authorized chequing plans are available for non-registered,
TFSA and RRSP Contracts. They are not available for Contracts
registered as a RIF and locked-in income plans.
We have the right to cancel the PAC at any time, upon 10 days’
notice to you.
If we discontinue a Fund or close a Fund to new Deposits, we have
the right to direct the PAC to another Fund.
Subject to our Administrative Rules, we will stop processing deposits
by PAC if they are returned unprocessed. You will be required to
notify us in writing to re-establish deposits to the Contract by PAC.
Please see the application for terms and conditions applicable to
PAC.
5.3 Deposits under different Sales Charge Options
You may elect to make a Deposit under the Initial Sales Charge (ISC)
or the Deferred Sales Charge (DSC).
If the ISC option applies, a sales charge will be deducted from the
Premium before Units are allocated to the Contract. The remaining
amount is the Deposit. The Deposit will be divided by the Unit
Value of the Fund effective on the Valuation Date of the Deposit to
determine the number of the applicable Units of each Fund to be
allocated to the Contract. There is no sales charge when you make a
withdrawal against Units allocated under the ISC option.
If the DSC option applies, the Premium will be divided by the Unit
Value of each Fund selected, effective on the Valuation Date of
the Deposit to determine the number of Units of each Fund to be
allocated to the Contract. Under this option, a sales charge will
be deducted from all withdrawals made within the first 6 years of
the Effective Date of the Contract, except for withdrawals made in
accordance with your 10% free withdrawal right.
5.4 General Provisions Relating to Deposits
In accordance with our Administrative Rules, we may
• refuse to accept Deposits
• limit the amount of Deposits allocated to a Fund
• refund Deposits within the previous 90 days
decrease in value.
6.
FUND SWITCHES
6.1 Making Switches
While this Contract is in force, you may, subject to our Administrative
Rules, request in writing that we switch money between Funds
of the same sales charge option and within the same Contract.
38
Switches are subject to minimum switch requirements. The
current minimum switch amount is $100 with a minimum of $25 per
Fund. This minimum amount is set in accordance with our
The Contract Maturity Guaranteed Amount and Death Guaranteed
Amount are not impacted by a switch.
When you switch between Funds, it is your oldest Units that are
switched first.
The Valuation Date for a switch is as set out in section 10.2,
Valuation Date.
A switch in a non-registered Contract is a taxable transaction.
6.2 Moving Money Between Sales Charge Options
Moving money between Funds of different sales charges is a
withdrawal from the Contract and a subsequent Deposit back into the
Contract, not a switch. This transaction may trigger sales charges.
A withdrawal will impact both the Contract Maturity Guaranteed
Amount and Death Guaranteed Amount. This transaction is also a
taxable event in a non-registered contract, except a TFSA contract.
As this transaction is a new Deposit, it is subject to the latest age for
deposit rule.
Please be mindful of moving between Funds of different
sales charges and discuss with your Advisor its impact on
sales charges, the Contract Maturity Guaranteed Amount
and the Death Guaranteed Amount. Please see section 8.1,
Contract Maturity Benefit; section 8.2, Death Benefit; section
5.1, Making Deposits.
6.3 Unscheduled Fund Switches and Switch Fees
You may request a Fund switch at any time.
We will deduct a switch fee of 2% of the amount switched for each
unscheduled switch you request in excess of 4 in a calendar year.
Switches made in a single day count as one switch. You may not
carry forward any unused switches from one calendar year to the
next.
We reserve the right to charge an early switch fee of 2% of the value
of Units switched if you make a switch within 90 days of allocating
those Units to the Fund.
The switch fee and the early switch fee will proportionally
reduce the Contract Maturity Guaranteed Amount and Death
Guaranteed Amount.
ivari reserves the right to change the switch fee and the early switch
fee at any time upon 60 days advance notice.
6.4 Scheduled Fund Switches (Dollar Cost Averaging)
You may request to have scheduled switches for your Contract
subject to the minimum amounts that apply to scheduled Fund
switches. Scheduled Fund switches are commonly referred to as a
“Dollar Cost Averaging” (DCA) service.
If on the date a withdrawal is requested the value of the Fund is
insufficient to permit us to make the requested withdrawal, we will
proceed as follows:
• In the case of an unscheduled withdrawal, the withdrawal will not
be processed and we will request further instructions from you.
No switch fees and early switch fees apply to scheduled Fund switches.
We reserve the right to cancel the scheduled Fund switches at
any time or direct the scheduled Fund switches to a Similar Fund,
according to our then current Administrative Rules.
• In the case of a scheduled withdrawal, the withdrawal will still be
processed based on our current administrative practices.
7.2 Withdrawal Options
6.5 General Provisions Relating to Switches
We reserve the right to delay switches in unusual or exceptional
circumstances where it is not practical to dispose of investments
made in a Fund or where it would be unfair to other Owners.
We have the right to refuse any Fund switch request; limit the
amount switched to any particular Fund(s), and impose additional
conditions at our discretion before any Fund switches are made.
Any switch and switch fee charged, other than within a registered
plan or TFSA, are a taxable transaction.
Withdrawals can be made on a scheduled or an unscheduled basis.
Scheduled payment options, also known as Systematic Withdrawal
Plans or “SWPs”, are only available for non-registered and RRIF
Contracts. For scheduled options relating to RRIF Contracts, you may
elect to withdraw the RIF Minimum Amount or payment on a custom
basis as you may determine.
The scheduled payment option and payment frequency you select
will remain in effect until you instruct us in writing to change it. The
change will affect future payments only.
The value of Units of a Fund that is withdrawn to effect the
switch is not guaranteed and may increase or decrease in value.
Unscheduled options may be customized in the amount and
frequency at your discretion, subject to legislated minimum
withdrawal amounts and to a maximum annual amount for certain
locked-in income plans.
7.WITHDRAWALS
7.3 Withdrawals from RRIF and Locked-in Income Contracts
7.1 Making Withdrawals
For Contracts registered as a RIF or a locked-in income plan (such
as LIF, PRIF, RLIF), the Income Tax Act (Canada) requires that
starting in the second calendar year after the Contract is issued and
every calendar year thereafter, you must receive an amount from the
Contract. We refer to this amount as the “RRIF Minimum Amount”.
While this Contract is in force, you may request in writing a
withdrawal of Units from one or more Funds in accordance with our
Withdrawals must meet the minimum withdrawal requirements that
we have in place at the time of the request for withdrawal. The
current minimum withdrawal amount is $100 with a minimum of
$25 per Fund. The minimum withdrawal amount is calculated before
deferred sales charges, fees and taxes are deducted.
Units are withdrawn from the Fund or Funds in the order the Units
were allocated to a Fund, first in, first out, withdrawing the oldest
Units first.
ithdrawals will reduce both the Contract Maturity
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Guaranteed Amount and the Death Guaranteed Amount on
a proportional basis. Please see section 8.1, Contract Maturity
Benefit; section 8.2, Death Benefit.
The Valuation Date for a withdrawal is as set out in section 10.2,
Valuation Date.
A withdrawal creates a taxable disposition, resulting in either a
capital gain or a capital loss.
The RRIF Minimum Amount is calculated by multiplying the closing
Market Value of the Contract on December 31st of the previous year
(or the last Valuation Date if December 31st is not a Valuation Date)
by the percentage determined under the Income Tax Act (Canada).
Where legislation permits, you can elect to have the RRIF minimum
percentage based on your spouse’s or common-law partner’s age
(as the terms are defined in the Income Tax Act (Canada)). You must
make this election at the time you enter into the Contract and once
made, it cannot be changed while the Contract is in force.
If the total of your scheduled and unscheduled withdrawals in the
calendar year is less than the RRIF Minimum Amount for that year,
we are required to make a year-end payment to you to meet the
RRIF Minimum Amount. Year-end payments will be applied using
the scheduled withdrawal allocation we have on file, or if there are
no allocations on file, using the default allocation subject to our
You may elect to customize your RRIF, LIF, PRIF, RLIF payments and
withdraw an amount greater than your RRIF Minimum Amount.
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For a LIF and a RLIF, the withdrawal amount cannot exceed the
annual maximum amount prescribed by governing legislation. There
is no withdrawal limit on a contract registered as a PRIF.
We are required to withhold taxes from any payment in excess of the
RRIF Minimum Amount.
If, on the Contract Maturity Date, the Market Value is less than
the Contract Maturity Guaranteed Amount, the difference plus the
Market Value of the Contract on the Contract Maturity Date is the
Contract Maturity Benefit. We refer to the difference as the top-up
benefit.
7.4 Early Withdrawal Fees
8.1.1 Calculation of the Contract Maturity Guaranteed Amount
We reserve the right to apply an early withdrawal fee of 2% of the
value of Units withdrawn if the withdrawal is made within 90 days
of the Deposit. This fee does not apply to scheduled withdrawal
payments and to the 10% free withdrawal right. This fee is in
addition to any applicable DSC. ivari reserves the right to change this
fee at any time upon 60 days advance notice.
The Contract Maturity Guaranteed Amount is the sum of 75% of
all Deposits made into the Contract, less a proportional market
value reduction for withdrawals. Withdrawals include client-initiated
transaction fees. Please see section 8.2.3, Impact of Withdrawals
on the Contract Maturity Guaranteed Amount and Death Guaranteed
Amount.
Amount will be proportionally reduced by the early withdrawal fees.
If your Deposit is made under the Initial Sales Charge option, we will
add the Initial Sales Charge back to the Deposit when calculating
the Contract Maturity Guaranteed Amount. Therefore, the Contract
Maturity Guaranteed Amount will not be less than 75% of Premiums
minus proportional market value reductions for withdrawals and fees.
7.5 General Provisions Relating to Withdrawals
We have the right to delay the Valuation Date of a withdrawal to up to
seven Business Days in order to properly process the withdrawal.
In the event of exceptional or unusual circumstances, we have the
right to delay payment of any withdrawal amount for the duration of
the exceptional or unusual circumstances.
The value of the Units of a Fund that are withdrawn is not
guaranteed and may increase or decrease in value.
8.GUARANTEES
T his Contract provides for a Contract Maturity Benefit and a
Death Benefit.
8.1 Contract Maturity Benefit
Under this guarantee, on the Contract Maturity Date, you are entitled
to the Contract Maturity Benefit, which is the greater of the:
If the Annuitant is living on the Contract Maturity Date and we are
not notified of your maturity instructions, the Contract Maturity
Benefit amount will be applied to provide you with a single life
immediate annuity based on your life, guaranteed for ten years
in accordance with applicable legislation and our administrative
rules. The annuity will be issued based on the rates in effect on the
Contract Maturity Date, payable monthly.
Payment of the annuity or the lump sum if the minimum amount for
the issue of an immediate annuity is not met discharges ivari of all
obligations under this Contract.
8.1.3 Default Annuity for Contracts Issued in Quebec Only
The Contract Maturity Date is as follows for the Contract plan
types available.
For Contracts issued in Quebec, the annuity will be based on your
life, be payable monthly and will be based on the rates in effect on
the Contract Maturity Date. However, the annual annuity payment for
each $1,000 being annuitized with a maximum guarantee period of
ten years shall not be lower than the amount set out in Table 1 for
the applicable age on which the annuity is based.
The applicable age on which the annuity is based is the age of the
Annuitant in the case of a single life annuity.
(i) Contract Maturity Guaranteed Amount, and
Plan Type
Contract Maturity Date
Non-registered, RRSP, LIRA,
December 31st of the year
LRSP, RLSP, RIF, LIF, PRIF, RLIF in which the last surviving
and TFSA
Annuitant turns age 100
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8.1.2 Payment of Contract Maturity Benefit and Default Annuity
New Brunswick LIRA and LIF
in which the last surviving
Newfoundland and Labrador
LIRA and LIF
in which the last surviving
Table 1 – Annual Annuity Payment per $1,000
Age of Annuitant
Annuity Payment
50
$15.39
55
$16.67
60
$18.19
Every year, on the Policy Anniversary Date, if the Market Value of
the Contract is greater than the Death Guaranteed Amount, we
will automatically reset the Death Guaranteed Amount to equal the
Market Value of the Contract.
As long as the Annuitant is living, the last Reset of the Death
Guaranteed Amount will be exercised on the Policy Anniversary Date
of the year the Annuitant turns 75.
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$20.01
70
$22.23
75
$25.01
80
$28.58
8.2.2Process for Determining the Death Benefit
85
$33.34
90
$40.01
95
$50.01
100
$66.67
If there is a delay between the receipt of satisfactory proof of death
(for example death certificate) and notice of death of the Annuitant
(for example letter from next of kin), we will, on notice of death,
switch all Units in the Funds allocated to the Contract to the Money
Market Fund or to another Fund we designate if the Money Market
Fund is not available. This date is called the “Notice Date”.
e reserve the right to pay the Contract Maturity Benefit in a lump
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sum if the monthly annuity payment is less than $100.
Payment of the annuity, or the lump sum if the minimum amount for
the issue of an immediate annuity is not met, discharges ivari of all
obligations under this Contract.
8.2 Death Benefit
Under this guarantee, on the Valuation Date we receive satisfactory
proof of the death of the last surviving Annuitant in accordance
with our Administrative Rules (the “Death Benefit Date”), the Death
Benefit will be calculated. The Death Benefit on the Death Benefit
Date is the greater of the:
(i) Death Guaranteed Amount; and
If the Market Value on the Death Benefit Date is less than the Death
Guaranteed Amount, the difference plus the Market Value of the
Contract on the Death Benefit Date is payable to the person entitled
to the Death Benefit. We refer to the difference as the top-up
benefit. The Top-up Benefit, if applicable, will be payable as part of
the Death Benefit.
No Deferred Sales Charge applies to the Death Benefit.
Payment of the Death Benefit will discharge our obligations under
this Contract.
8.2.1Calculation and Reset of the Death Guaranteed Amount
The Death Guaranteed Amount is the sum of 100% of all Deposits
made into the Contract, less a proportional market value reduction
for withdrawals. Withdrawals include client-initiated transaction fees.
Please see section 8.2.3, Impact of Withdrawals on the Contract
Maturity Guaranteed Amount and Death Guaranteed Amount.
We reserve the right to change or discontinue the Reset
feature upon 60 days prior written notice.
As of the Notice Date, no further transactions can be made. For
example, scheduled withdrawals, including payments of RRIF
Minimum Amounts will be stopped. Subsequently, on the Valuation
Date we receive proof of death (the “Death Benefit Date”); the Death
Benefit will be calculated.
8.2.3Impact of Withdrawals on the Contract Maturity Guaranteed
Amount and Death Guaranteed Amount
Amount will be reduced proportionally by withdrawals. Withdrawals
include client-initiated transaction fees.
To determine the Contract Maturity Guaranteed Amount or the Death
Guaranteed Amount after a withdrawal, the formula is as follows:
(A – P)
Where A is the Contract Maturity Guaranteed Amount/Death
Guaranteed Amount before the Withdrawal
P is the proportional market value reduction of the Withdrawal
P is determined as A x (B/C) where:
C is the Market Value of the Contract before the withdrawal.
Please consider that, when the market value of the Units
withdrawn is lower than the market value of those Units
on the Deposit date, the proportional reduction due to the
withdrawal will reduce the Contract Maturity Guaranteed
Amount and Death Guaranteed Amount by more than the
amount of the withdrawal.
The Death Guaranteed Amount has the potential to increase by Resets.
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9.
INVESTMENT OPTIONS
This Contract gives you access to a selection of Funds.
You do not acquire any ownership interest in the Funds or in the
underlying investments when you make Deposits to the Contract.
We may close, add, merge or split Funds available within the Contract.
If we close, merge or split (“discontinue”) a Fund, we will
automatically withdraw the Units in the discontinued Fund and
reallocate the value of the Units of the discontinued Fund to another
Fund of our choice. This transaction may be a taxable event and
subject to the Fundamental Change rule. Please see section 14.1,
Fundamental Changes and Other Changes.
We may also change the investment objective of a Fund. A change to
the investment objective is considered a fundamental change. Please
see section 14.1, Fundamental Changes and Other Changes.
We may also substitute an Underlying Fund(s) for a substantially
similar Underlying Fund(s) or other investments for any of the Funds
available within the Contract.
We have the right to change the portfolio manager of any Fund,
at any time, at our discretion. The portfolio manager is the person
(or team of people) who is directly responsible for the investment
decisions of any Fund or Underlying Fund.
10.VALUATION
10.1 Net Asset Value and Unit Value
On each Valuation Date, we calculate the net asset value for Units
of each Fund. The net asset value is the total market value of the
Fund’s assets minus any applicable liabilities, on that date.
On each Valuation Date, we determine the Unit Value of a Fund. The
Unit Value of a Fund is calculated by dividing the net asset value of a
Fund by the number of Units allocated to the Fund on that Valuation
Date. The Unit Value of a Fund remains in effect until the next
Valuation Date.
A ll earnings of a Fund are automatically reinvested in the Fund
and this will be reflected in the Unit Value of the Fund. We reserve
the right to change this method of reinvesting a Fund’s earnings
following written notice to policyholders.
We reserve the right to increase the number of Units of a Fund by
splitting a Unit into two or more Units, or decrease the number of
Units by combining two or more Units. However, the market value of
the Funds in your Contract will not be affected by this activity.
The net asset value and Unit Value of a Fund are not
guaranteed but may increase or decrease in value.
10.2 Valuation Date
A Valuation Date occurs every day that the principal exchange is open
for business and a value is available for the underlying assets of the
Fund. Currently, the principal exchange is the Toronto Stock Exchange.
We may change the principal exchange to another exchange.
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All transactions (e.g. Deposits, withdrawals, transfers) are
processed based on the market value as at the close of business
on the Valuation Date provided we receive at our Head Office, the
instructions or transactions in accordance with our Administrative
Rules by the Valuation Date cut-off time, that we determine
acceptable. If the instructions or transactions are received after
the cut-off time, they will be considered to be received on the next
Valuation Date. We reserve the right to change the Valuation Date
cut-off time (earlier or later).
ivari reserves the right to reduce the frequency with which the Unit
Value of a Fund is calculated, subject to a minimum frequency of
once a month. If such an event occurs, you have certain rights.
Please see section 14.1, Fundamental Changes and Other Changes.
We may postpone valuation:
(i) for any period during which one or more of the nationally
recognized stock exchanges are closed for other than a
customary weekend or holiday closing,
(ii) for a period during which trading on securities exchanges is
restricted, or
(iii) when there is an emergency during which it is not reasonable for
us to dispose of investments owned by the Funds or to acquire
investments on behalf of the Funds or to determine the total
value of the Funds.
10.3 Market Value of the Contract
The Market Value of your Contract on any given Valuation Date is
determined according to the following formula:
Market Value of your Contract = sum of [(Unit Value x number of
Units) for each Fund you hold in the Contract]
11. SALES CHARGE OPTIONS
You may request to allocate your Deposit under the initial sales
charge (ISC) or the deferred sales charge (DSC) option.
The amount of sales charges is determined by the Fund category and
sales charge option under which Units are allocated to your Contract.
We may change, add or delete sales charge options from time to
time.
11.1 Initial Sales Charge Option
With this option, you negotiate the sales charge with your Advisor.
The negotiated sales charge is between 0% and 5% of your
Premium. The negotiated sales charge will be deducted from the
Premium to determine the Deposit. There is no deferred sales charge
when you make a withdrawal against these Units. Units allocated to
your Contract under this option are called ISC Units.
11.2 Deferred Sales Charge Option
11.4 Movement between Sales Charge Options
With this option, you pay no sales charge to your Advisor at the time
of Deposit. Instead, you agree to pay a Deferred Sales Charge to us
if you request a withdrawal within six years of the effective date of
each Deposit. Units allocated to your Contract under this option are
called DSC Units.
While the Contract is in force, you may request that Funds that you
hold under one sales charge option be moved to a Fund of another
sales charge option. Moving money between Funds of different
sales charges is not a switch and is processed as a withdrawal
from the Contract and a subsequent Deposit into the Contract.
This transaction will trigger sales charges and impact the
Contract Guaranteed Amount and the Death Guaranteed
Amount and is subject to the latest age to deposit rule.
Please see section 8.1, Contract Maturity Benefit; section 8.2, Death
Benefit, section 5.1, Making Deposits.
The DSC is charged as a percentage of the market value as of the
Deposit date of the DSC Units withdrawn. The percentage charged
varies based on the time that has passed since the effective date of
Deposit. The DSC schedule is as follows:
DSC
(as a percentage of the market value
of DSC Units as of the Deposit date)
During the 1st year after Deposit
6.0%
5.0%
12.FEES
4.0%
3.0%
2.0%
1.0%
0.0%
The Contract is subject to the following fees: management fees,
insurance fees and in certain circumstances, switch fees. We
reserve the right to charge an early withdrawal fee and an early
switch fee to discourage activity that may be detrimental to the Fund
and all policyholders. We also reserve the right to recover expenses
that we incur as a result of your action, including the right to charge
a fee for any administrative service provided with respect to the
Contract. We reserve the right to change the amount or the nature
of such administrative fees at any time. Certain fees are subject to
applicable taxes.
nd
rd
th
th
This Deferred Sales Charge schedule is subject to change and any
new Deposits made after the change will be subject to the new
Deferred Sales Charge schedule.
Units are withdrawn from the Fund or Funds in the order the Units
were allocated to a Fund - first in, first out, withdrawing the oldest
Units first.
11.3 10% Free Withdrawal Right for DSC Units
Each calendar year, you are entitled to withdraw up to 10% of the
number of DSC Units allocated to a Fund without paying DSC.
Any unused portion of the right may not be carried forward from one
year to the next. We reserve the right to discontinue or change
this right at any time.
The number of DSC Units that may be withdrawn from a Fund each
year is the sum of the following:
(i) 1 0% of the number of DSC Units that were allocated to the Fund
at the end of the previous calendar year, and
(ii) 10% of DSC Units allocated to the Fund in the current year, prorated
by the number of days the Units have been allocated in the current
year (not including the day of allocation) (In prorating, we divide by
366 for leap years and by 365 for non-leap years); less
The withdrawal of Units to effect the movement between
Funds of different sales options is not guaranteed and is
subject to market fluctuations.
When the Units are
withdrawn:
(iii) any DSC Units withdrawn from the Fund in the current year
under this right.
12.1 Management Fees and Operating Expenses
Each Fund pays us a management fee for the management of the
Fund, which includes the cost of investment management, services
and facilities to support the Fund, commissions and service fees
payable to Advisors.
Where the Fund invests in an Underlying Fund, there is no
duplication of management fees for the same service, and the
management fee and MER of the Fund includes the management fee
and MER of the Underlying Fund.
Each Fund also pays its own operating expenses. They include, among
other things, audit, accounting and financial reporting and disclosure
costs; custodial and trustee costs; legal and regulatory costs; bank
service fees and interest charges; policyholder communication fees
and related administrative costs; and applicable taxes.
The management fees and operating expenses are calculated and
accrued based on the market value of the Fund’s assets on each
Valuation Date and are paid to us monthly.
Subject to the Fundamental Changes and Other Changes provision
described in section 14.1, we may change the management fee of a
Fund by sending you written notice of the change at least 60 days
in advance.
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12.2 Insurance Fees
12.4.3Early Withdrawal Fee
Each Fund pays us an insurance fee for the cost of providing the
insurance benefits under the Contract. The insurance benefits of the
Contract are the Contract Maturity Benefit, Death Benefit and Resets
of the Death Guaranteed Amount.
The Contract may be subject to an early withdrawal fee of 2% of
the value of Units withdrawn if a withdrawal is made within 90 days
of the Deposit. This fee does not apply to scheduled withdrawal
payments and to the 10% free withdrawal right.
Depending on the risk level and volatility of the Fund, each Fund
will be assigned, at our discretion, an insurance fee. The more risk
and volatility associated with a Fund, the higher the insurance fee.
We may change the insurance fee, up to the maximum insurance
fee, without prior notice. If the increase is beyond the maximum
insurance fee, we will provide you with at least 60 days’ advance
notice and you will have the rights outlined under the Fundamental
Change Rule. Please see section 14.1, Fundamental Changes and
Other Changes for more information.
12.4.4General Provisions Relating to Switch Fees, Early Switch
Fee and Early Withdrawal Fee
Please see Appendix D for the management fee, insurance
fee and maximum insurance fee of each Fund.
12.3 Management Expense Ratio
The “management expense ratio” (MER) shows the historical,
annual cost of investing in a Fund and may vary from year to year.
It includes the management fees, insurance fees, operating expenses
and applicable taxes paid by the Fund. The MER is paid out of the
Fund before the calculation of the Unit Value. Where the Fund
invests in an Underlying Fund(s), there is no duplication of fees for
the same service.
We reserve the right to change the switch fee, early switch fee and
early withdrawal fee at any time upon 60 days advance notice.
The switch fee, early switch fee and early withdrawal fee will
each reduce the Contract Maturity Guaranteed Amount and Death
Guaranteed Amount proportionally.
The switch fee, early switch fee and early withdrawal fee will, in nonregistered Contracts (other than a TFSA contract), be considered a
disposition under the Income Tax Act (Canada) and will be taxable.
The withdrawal of units under the Contract to pay the switch fee,
early switch fee and early withdrawal fee will not be subject to
withholding tax in a registered contract.
12.5Recovery of Expenses
The MER is calculated as follows:
We reserve the right to charge you for any expenses or investment
losses that occur as a result of your action or inaction, including
writing a (not-sufficient funds) NSF cheque when making a Deposit
to the Contract. Any charges passed on to you will correspond to any
expenses or losses incurred by ivari.
MER = 100 x management fee + operating expenses +
insurance fee + applicable taxes
13. TERMINATION OF THE CONTRACT
average net assets of the Fund during the year
The management fees, insurance fee and operating expenses are
calculated and accrued based on the market value of the Fund’s
assets on each Valuation Date and are paid to us monthly.
You do not directly pay for the management fees, insurance fees,
operating expenses and applicable taxes as they are paid by the
Fund. These fees and applicable taxes will reduce the returns earned
by the underlying assets within the Fund.
12.4Switch Fees, Early Switch Fees, Early Withdrawal Fees and
Recovery of Expenses
This Contract will be terminated and all of our obligations under this
Contract will cease upon any one of the following events:
• s urrender of all the Units to the Contract’s credit upon your
request, and payment to you of the total proceeds of such
surrender request, less any fees, sales charges and taxes.
• payment of the Death Benefit.
• o n the Contract Maturity Date, subject only to payment to you of
the Contract Maturity Benefit or conversion of this Contract to a
single life annuity contract.
• S urrender of all of the Units to the Contract’s credit and payment
to you of the Market Value of the Contract, less any fees, sales
charges and taxes, at any time the Market Value of the Contract
and the Contract Maturity Guaranteed Amount are less than
$500, at ivari’s sole discretion upon 30 days notice.
12.4.1Switch Fees
The Contract is subject to a switch fee of 2% of the amount switched
for the fifth and subsequent switches in the same calendar year.
Please see section 6.3, Unscheduled Fund Switches and Switch Fees.
12.4.2Early Switch Fee
The Contract may be subject to an early switch fee of 2% of
the value of Units switched if a switch is made within 90 days
of allocating those Units to the Fund. This fee does not apply to
scheduled switches.
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All subject to any applicable legislative requirements.
14. GENERAL TERMS
14.1 Fundamental Changes and Other Changes
We may make certain changes under this Contract that are considered
a fundamental change. A fundamental change is defined as:
• an increase in the management fee of a Fund;
• a change in the fundamental investment objectives of a Fund;
• a decrease in the frequency with which Units of a Fund are valued; or
• an increase in the maximum insurance fee of a Fund.
In the case where an ivari Guaranteed Investment Fund invests in an
Underlying Fund, we also reserve the right to change such Underlying
Fund. If such a change constitutes a Fundamental Change, you will
have the rights described in the section immediately below.
In the event of a Fundamental Change or a Fund Closure, we will give
you at least 60 days prior written notice (the “Notice Period”) and
you will have the right to: (a) switch to another Similar Fund before
the expiry of the Notice Period; or (b) if we do not offer a Similar
Fund, withdraw the Units in the Funds affected by the Fundamental
Change without incurring sales charges. We must receive your written
response at least 5 days prior to the expiry of the Notice Period.
During the Notice Period, you may not switch to a Fund subject to a
Fund Closure, except that you may switch to a Fund subject to other
types of Fundamental Changes if you agree to waive the right to
withdraw without sales charges.
We will also notify the insurance regulators and the Canadian
Life and Health Insurance Association Inc. at the same time we
notify you of the change (unless such notice is not practical in the
circumstances, in which event we will provide notice as soon as
possible and as reasonably practical), and amend or re-file the
information folder to reflect the change. The foregoing may be
superseded by any regulatory changes governing individual variable
insurance contracts.
A Similar Fund is a Fund that; (a) has a comparable investment
objective, (b) is in the same fund investment category, (c) has
the same or lower management fee and insurance fee, and (d) is
valued at the same or greater frequency as the Fund subject to the
Fundamental Change.
Changing an Underlying Fund will not constitute a Fundamental
Change provided that all of the conditions for a Similar Fund continue
to apply to the Fund immediately following the change.
A similar Underlying Fund is one that: (a) has a comparable
fundamental investment objective (b) is in the same investment fund
category and (c) has the same or lower management fee.
The investment objective of the Underlying Funds may not be changed
unless approved by the unit holders of the underlying mutual fund.
Upon such approval, you will be provided notice of the change.
In the case where an ivari Guaranteed Investment Portfolios (GIP)
invests in multiple Underlying Funds, periodic changes to the Underlying
Funds or to the target weightings of the GIP is not considered a
Fundamental Change unless the change to the GIP is so material that is
meets the definition of Fundamental Changes as outlined above.
14.2 Claims of Creditors
This Contract may be protected from claims of creditors when the
Beneficiary is the spouse, parent, child or grandchild of the Annuitant
(in Quebec, the Beneficiary must be the married or civil union spouse,
the ascendant or descendant of the Owner), or if the Beneficiary is
named irrevocably. It is not clear if creditor protection is available if the
Contract is held in nominee name. This description is of a general
nature only. There are important limitations with respect
to this protection and this description does not include all
possible considerations. You should consult your own legal
advisors with respect to your particular circumstances.
14.3 Catastrophic Events
If the performance of any of our obligations under the Contract is
delayed or otherwise made impractical due to causes beyond our
control, our obligations may be postponed until such time the cause
ceases to preclude or make impractical the performance of our
obligation under the Contract.
14.4 Non-Participating Contract
The Contract does not participate in the profits or surplus realized
by ivari.
14.5 Assignment of this Contract
We are not bound by an assignment or hypothec unless it is filed
with and recorded by ivari at its Head Office. We are not responsible
for the adequacy or legal effect of an assignment or hypothec.
14.6Notices
It is your obligation to notify us of any change in your address. Any
notice, payment or statement sent to your last known address on our
records is considered to be sufficiently given.
14.7 Income Tax Act
The provisions in this policy are based upon the current provisions
of the Income Tax Act (Canada), the regulations thereto, all proposed
amendments thereto publicly released by the Department of Finance
(Canada) prior to the Issue Date and on the understanding of ivari
of the current administrative practices and policies of Canada
Revenue Agency, Taxation. For the purpose of this paragraph,
“current” means current to the Issue Date. The Owner is cautioned
that the law may change at any time and from time to time whether
by legislative, governmental or judicial action in such a way as to
adversely affect the tax status of this policy.
14.8 Limitation of Actions
Every action or proceeding against an insurer for the recovery of
insurance money payable under the contract is absolutely barred
unless commenced within the time set out in the Insurance Act, or
other applicable provincial legislation.
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Retirement Savings Plan (RSP) Endorsement
47
Retirement Savings Plan (RSP) Endorsement
1.INTERPRETATION
This endorsement contains additional terms that apply if you
requested that the Contract be registered as a Retirement Savings
Plan (RSP) under the Income Tax Act (Canada) (the “Act”) and any
applicable provincial income tax legislation.
In this endorsement, “you” “your” refer to the Owner, who is also
the Annuitant under the Contract. “We” refers to ivari.
The annuity provided under paragraph 4(b) has to meet the following
conditions:
(a)The annuity must be a single life annuity or a joint and survivor
life annuity on your life and your spouse or common-law
partner, or a term certain annuity on your life.
RSP Age means the end of year in which you turn 71 years of age
or any other age as prescribed by the Act.
(i)If you chose a single life or a joint life annuity, the
guarantee period must not exceed 90 minus your age or
the age of your spouse or common-law partner, if younger.
“Spouse” and “common-law partner” have the meanings defined in
the Act and any applicable provincial income tax legislation.
(ii)If you chose a term certain annuity, the guarantee period is
subject to the same restriction outlined in (i).
(b)The annuity must provide for annual or more frequent
payments.
2.
TIME LIMIT FOR AN RSP
You may hold an RSP until you reach the RSP Age.
(c)Payments under the annuity must be equal, except that they
may be increased or decreased in accordance with paragraph
146(3) (b) of the Act.
3.
PAYMENT UNDER THE RSP
(d)Annuity payments to you or your spouse or common-law
partner may not be commuted, either in full or in part, except
that we reserve the right to commute an annuity where the
monthly payment is less than $100.00. If you die after annuity
payments commence and your Spouse or Common Law
Partner becomes the annuitant under the policy, the total of all
annuity payments in a year after the date of your death will not
exceed the total of all annuity payments made in a year before
your death.
(e)If you die after annuity payments commence and the
Beneficiary is not the Spouse or Common Law Partner, the
commuted value of any remaining annuity payments will be
paid in one sum to the Beneficiary, if there is one, otherwise to
your estate.
(f)If you die before annuity payments commence, the death
benefit will be paid in one sum, unless a “refund of premiums”
as defined in subsection 146(1) of the Act has been requested.
(g) Annuity payments cannot be assigned in whole or in part.
No payment from the Contract will be made prior to the RSP Age
except as a refund of premium as defined under the Act or a
payment to you.
4.
OPTIONS UNDER THE RSP
You may elect to take the Market Value of the Contract, as the term
is defined in the Annuity Policy (the “Value”) and exercise the
following options:
(a)transfer the Value to another registered retirement savings
plan;
(b)use the Value to purchase an annuity that satisfies the
conditions set out below;
(c)withdraw the Value, in full and in part, subject to taxes and
surrender fees; and
(d) transfer the Value to a registered retirement income fund.
At the RSP Age, you may only elect options (b), (c) and (d).
Any amounts paid under paragraphs 4(a), (b), (c) or (d) will
discharge ivari’s liability under the Contract.
48
5.MISCELLANEOUS
The Contract and the payments cannot be assigned.
No deposits will be accepted after Annuity Payments have commenced.
We reserve the right to resign as issuer and appoint a
successor issuer.
Upon request, we will pay an amount to the taxpayer to reduce the
amount of tax the taxpayer would otherwise have to pay because of
over-contributions by the taxpayer under Part X.1 of the Act.
This endorsement has precedence over any provision contained in
this Contract that is inconsistent with it.
No advantage that is conditional in any way on the existence of the
Contract may be extended to you or to a person with whom you
were not dealing at arm’s length other than in accordance with
paragraph 146(2)(c.4) of the Act.
Douglas W. Brooks
John O’Hoski
Corporate Secretary
49
50
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ivariTM
Retirement Income Fund (RIF) Endorsement
51
Retirement Income Fund (RIF) Endorsement
1.GENERAL
3.
This endorsement contains additional terms that apply if you
requested that the Contract be registered as a Retirement Income
Fund (RIF) under the Income Tax Act (Canada) (the “Act”) and any
applicable provincial income tax legislation.
ivari will make the minimum payment each calendar year as
provided in subsection 146.3(1) of the Act.
In this endorsement, “you” “your” refer to the Owner, who is also
the Annuitant under the Contract. “We” refers to ivari.
“Spouse” and “common-law partner” have the meanings defined in
the Act and any applicable provincial income tax legislation.
2.DEPOSITS
You may elect the frequency of the payment as monthly, quarterly,
semi-annually or annually. If no election is made, the payment will
be made to you annually.
4.TRANSFERS
Under the endorsement, you may upon request transfer all or part
of the Market Value of the Contract (the “Value”)
(a)to the carrier of another registered retirement income fund of
which you are also the Annuitant) of the Act;
(b)to the issuer of another registered retirement savings plan under
which you are the Annuitant prior to the prescribed age for an
RRSP within the meaning of subsection 146(1) of the Act;
(c)to purchase an immediate life annuity under the terms of the Act;
(d)to a RRIF or RRSP of your spouse, common-law partner,
former spouse or common-law partner as a result of marriage
breakdown or upon death in accordance with subsection
146.3(14) of the Act.
ivari will only accept deposits or transfers under the Contract from:
(a)a registered retirement savings plan (RRSP) under which you
are the Owner;
(b)another registered retirement income fund under which you are
the Owner;
(c)a registered pension plan (RPP)under which you are a member
or a former member;
(d)you, to the extent that the amount of the deposit or transfer
was an amount described in subparagraph 60(l)(v) of the Act;
(e)a RRSP or RRIF of your spouse, common-law partner or former
spouse or common law partner pursuant to a decree, order
or judgment of a competent tribunal or a written separation
agreement, relating to a division of property in settlement of
rights arising out of, or on the breakdown of, their marriage or
common-law relationship;
In accordance with the Act, before the transfer is made, we will
pay you any remaining minimum amount for the year. Any amount
payable is subject to taxes and withdrawal fees, as applicable.
(f)the RPP of your spouse, common-law partner, former spouse
in accordance with subsection 147.3(5) or (7) of the Act;
5.
52
PAYMENTS UNDER THE CONTRACT
(g)a provincial pension plan in circumstances to which subsection
146(21) of the Act applies;
(h) any sources permitted under the Act.
Payment of all of the Market Value of the Contract under this
section 4 will discharge ivari’s liability under the Contract.
SUCCESSOR ANNUITANT
You may elect to appoint your spouse or common-law partner as
Successor Annuitant who will replace you as Annuitant upon your
death. The Successor Annuitant may exercise every right as Owner
under the Contract on your death.
Where a Successor Annuitant has been designated in the contract,
the death benefit will be paid on the death of the last to die of the
Annuitant or the Successor Annuitant.
6.
DEATH BENEFIT
The death benefit payable under the RIF endorsement is described
in the annuity policy.
7.MISCELLANEOUS
No benefit or loan that is conditional in any way on the existence
of the Contract may be extended to you or to a person with whom
you were not dealing at arm’s length, other than in accordance with
paragraph 146.3(2) (g) of the Act.
Neither the Contract nor payments under the Contract may be
assigned in whole or in part.
We reserve the right to resign as carrier and appoint a
successor carrier.
This endorsement has precedence over any provision contained in
this Contract that is inconsistent with it.
Douglas W. Brooks
John O’Hoski
Corporate Secretary
53
FUND FACTS
54
How to read an ivari GIF Fund Facts
1
1
IDENTIFYING INFORMATION
The name of the segregated fund contract, the segregated fund name
and the date of the information presented.
2
ivari Canadian Bond GIF
All information is as of December 31, 2014
2
QUICK FACTS
Date fund created: This is the date on which the fund was first
available for purchase as an investment option under the contract.
Total fund value: This is the total market value of the assets within
the fund.
Net asset value per unit: The dollar value of each unit notionally
held within a fund, calculated as follows: total fund value divided by the
number of units outstanding.
3
QUICK FACTS
HOW HAS THE FUND PERFORMED?
Date fund created: October 2009
Total fund value (in 000s): $28,786
Net asset value per unit: $12.64
Number of units outstanding: 2,272,636
Management expense ratio (MER): 2.28%
Portfolio manager: Aegon Capital Management Inc.
Portfolio turnover rate : 69.94%
Minimum initial deposit: $500/Policy ($100/Fund)
Fund Code: Deferred Sales Charge (DSC): TLC1002
Fund Code: Initial Sales Charge (ISC): TLC1003
This section tells you how the fund has performed over the past 10 years for a
contractholder. Returns are after the MER has been deducted.
Management expense ratio (MER): A measure of what it costs to
operate the fund. MERs include all expenses of the segregated fund
such as the management fees, insurance costs, operating costs and
applicable taxes. Where the fund invests in an underlying fund(s), there
is no duplication of fees. These fees are paid by the fund and affect
the unit values. The MER indicated is from the current annual audited
financial statements (if applicable, if not an estimated MER is provided)
and is subject to change.
Portfolio manager: An individual, or firm, who controls the assets
within the fund or underlying fund. The portfolio manager monitors and
selects appropriate investments based on the investment objective of
the fund or underlying fund.
Portfolio turnover rate: Portfolio turnover rate is the portion of
securities in a fund’s portfolio that are bought and sold during the
course of a year. The higher a fund’s portfolio turnover rate in a year, the
greater the trading costs payable by the fund in the year, and the greater
the chance of an investor receiving taxable capital gains in the year.
There is not necessarily a relationship between a high turnover rate and
the performance of a fund. Where the fund invests in an underlying fund
or funds, the portfolio turnover rate is that of the underlying fund(s).
Minimum initial deposit: The minimum amounts required to purchase
the segregated funds contract, or units of the fund.
Fund code: Used to identify the fund.
3
WHAT DOES THE FUND INVEST IN?
Average return
A person who invested $1,000 in the fund on October 13, 2009 now has $1,266.65.
This works out to an average of 4.62% per year.
Year-by-year returns
15
The Fund invests mainly in medium term, high-quality corporate and
government bonds.
10
Top 10 investments of the fund as of December 31, 2014
Gov’t of Canada, 3.50%, December 1, 2045
ClareGold Trust, 5.06%, May 15, 2044
CIBC, 9.98%, June 30, 2108
Aimia Inc., 5.60%, May 17, 2019
EnerCare Solutions, 4.60%, February 3, 2020
CDP Financial, 4.60%, July 15, 2020
Master Credit Card Trust, 3.88%, January 21, 2017
Rogers Communications, 6.68%, November 4, 2039
Canadian Tire Corporation, 6.32%, February 24, 2034
Canadian Western Bank, 3.46%, December 17, 2024
8.79%
3.84%
3.71%
3.24%
2.97%
2.83%
2.77%
2.68%
2.62%
2.59%
36.04%
Total investments: 60
Asset mix as of December 31, 2014
Bond
Cash
4
It’s important to note that this doesn’t tell you how the fund will perform in the future.
Also, your actual return will depend on your personal tax situation.
Total
Number of units outstanding: Represents the total number of units
notionally held by policyholders in the fund.
FUND FACTS
5
8.4%
5.2%
0
-5
8.8%
7.2%
3.9%
-0.8%
2005
2006
2007
2008
2009
2010
2011
2012
-1.4%
2013 2014
ivari Canadian Bond GIF – imaxxGIF 75/100 (similar class)
ivari Canadian Bond GIF (fund)
This chart shows how the fund or similar class of the same fund performed in each of the
past 10 years. In the last 10 years, the performance was up in value 8 years and down in
value 2 years. For illustration purposes. Actual segregated fund performance is expected to
vary.
HOW RISKY IS IT?
The value of your investments can go down. Please see the Information Folder – The Risks of
Investing in Segregated Funds Section for the risks of this fund.
Very low
96.20%
3.80%
6.4%
2.9%
2.5%
Low
Low to
moderate
Moderate
Moderate
to high
5
High
ARE THERE ANY GUARANTEES?
This segregated fund is being offered under an insurance contract. It comes with guarantees
that may protect your deposits, with some limits, if the markets go down. The MER includes
the insurance cost for those guarantees. For details please refer to the Information Folder
and contract.
WHO IS THIS FUND FOR?
This fund may be right for a person who will invest for a medium term and wants potential for
income and some growth and is comfortable with small changes in value during the term.
6
7
1 of 2
Top (10) investments of the fund: This shows the top
investments of the (underlying) fund(s), in order, beginning with
the highest percentage weighting. Unless indicated as a bond or
treasury bill, the investment will be considered to be an equity. If
it holds underlying fund(s), then the top 10 investments will list the
top 10 investments of the underlying fund if it is more than 50% of
the assets of the fund. If the underlying fund is less than 50% of
the assets of the fund, then the name of the underlying fund will be
listed as one of the top 10 investments. The holdings may change
due to ongoing portfolio transactions.
Total investments: Total number of investments held with the fund.
Asset mix/ Sector Allocation/Portfolio allocation: The pie
chart indicates the percentage of the fund’s investment portfolio
by subgroups, such as the investment type, industry segment or
geographic location based on the nature of the fund.
This describes what the segregated fund invests in.
Current Underlying Funds: These are the current underlying funds
held within the fund as of the date indicated. If applicable, target
allocations are also indicated.
55
How to read an ivari GIF Fund Facts continued
1
4
The information in this section shows fund performance for a period of
1 to 10 years, depending on how long the fund has been in existence.
Returns are after the MER has been deducted.
2
Average return: This section shows the value of a $1,000 investment
in the fund from the date it was created. It also shows the average
percentage per year in the growth of the fund. For any fund with
less than one-year history, the information is not provided due to
insufficient segregated fund history.
3
5
HOW RISKY IS IT?
The value of your investments can go down. The level of risk that
is suitable for you will depend on a number of factors such as
your investment goals and risk tolerance. Speak to your advisor
to determine the appropriate funds for you in your particular
circumstances. This chart ranks the fund’s estimated volatility ranging
from very low to high. The ranking is based on the fund’s historical
performance data and/or the historical performance data of the
underlying mutual fund or similar class of the same fund. For any fund
with less than one-year history, we have determined the risk ranking
for the fund based on its asset classification, investment objective,
underlying investments and other factors.
56
QUICK FACTS
Average return
15
government bonds.
10
CIBC, 9.98%, June 30, 2108
Aimia Inc., 5.60%, May 17, 2019
Total
8.79%
3.84%
3.71%
3.24%
2.97%
2.83%
2.77%
2.68%
2.62%
2.59%
36.04%
5
8.4%
5.2%
8.8%
7.2%
3.9%
-0.8%
2005
2006
2007
2008
2009
2010
2011
2012
-1.4%
2013 2014
vary.
HOW RISKY IS IT?
Very low
96.20%
3.80%
6.4%
2.9%
2.5%
0
-5
Bond
Cash
4
Year by year returns: This is a bar chart showing how the fund has
performed in each of the past ten years, or less if applicable. Each bar
shows in percentage terms how much an investment made on January
1st would have changed by December 31st in that same year. We also
state the number of years that the performance of the fund was either
up or down in value. Where the fund has less than 10 years of history,
the performance of the underlying fund or a similar class of the same
segregated fund is shown for the time period prior to the availability of
the fund. Performance of the fund may be higher or lower because the
MER of the fund may be different from the underlying fund or a similar
class of the same fund. The timing of purchases and redemptions can
also impact performance. Where a fund invests in several underlying
funds or if there is no similar class of the segregated fund available,
only the performance of the actual segregated fund is shown. For any
fund with less than one-year history, the graph is not provided due to
insufficient segregated fund history.
FUND FACTS
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
1 of 2
6
Your contract has certain guarantees that protect the value of
your investment upon maturity and at death. The cost for those
guarantees is included in the MER of the fund.
7
5
This section identifies the type of investor that is suitable for the
fund. Speak to your advisor to determine your investment goals and
tolerance for risk.
6
7
How to read an ivari GIF Fund Facts continued
8
HOW MUCH DOES IT COST?
This section describes the fees and ongoing expenses applicable to a
policyholder who buys, sells, switches or holds units of the funds.
8
– ISC: you and your advisor negotiate a commission when you
purchase the contract, you do not pay a sales charge when you
sell units of the contract.
– D
SC: you are charged a fee for a fixed number of years on a
declining basis when you sell units of a fund.
• T railing commission – This section shows the percentage of
commission we pay out of the management fee to your advisor for the
advice and services provided to you.
• O
ther fees – This section describes fees you may pay when you sell
or transfer units of the fund.
9
WHAT IF I CHANGE MY MIND?
This section describes the policyholder’s rights to cancel investment
decisions and the amount that will be returned. It tells you what you
need to do and within what period of time you need to do it.
10
The following tables show the fees and expenses you could pay to buy, and sell units of the fund.
1. Sales charges
• S ales charges – This table describes what you pay and how it works.
When you purchase the contract you choose a sales charge option –
either Initial Sales Charge (ISC) or Deferred Sales Charge (DSC).
• O
ngoing fund expenses – This section describes the fees and
operating expenses applicable to the fund based on the guarantees
available for this contract.
Sales charge option
What you pay
How it works
Initial Sales Charge
Up to 5% of the amount you buy
• You and your advisor decide on the rate.
• The initial sales charge is deducted from the amount you buy. It is paid as a commission.
Deferred Sales Charge
(as a percentage of the
original purchase price of
DSC units)
If you sell within:
1st year after deposit
2nd year after deposit
3rd year after deposit
4th year after deposit
6%
5%
4%
3%
2%
1%
0%
• The deferred sales charge is a set rate. It is deducted from the amount you sell.
• When you buy the fund, we pay a commission of up to 5%. Any deferred sales charge you pay will
be paid to us.
• You can sell up to 10% of your units each year without paying a deferred sales charge.
• No deferred sales charge is charged for switches between funds offered in this contract.
2. Ongoing fund expenses
3. Other fees
The MER includes the management fee, the insurance cost for the guarantees,
operating expenses and the applicable taxes of the fund. You do not pay for these
expenses directly. They affect you because they reduce the return you get on your
investment. For details about how the guarantees work, see your insurance contract.
You may have to pay other fees when you sell or transfer units of the fund.
Guarantee
(Maturity/Death)
MER (Annual rate as a %
of the fund’s value)
75/100
2.28%
Fee
What you pay
Early Withdrawal Fee
2% of the value of units you sell or transfer within
90 days of buying them.
Early Switch Fee
2% of the value of units you trade for switches within
Switch Fee
2% of the amount switched for each switch after the
fourth switch is done in the same calendar year.
Trailing commission
We pay a trailing commission for as long as you own the fund. It is for the services
and advice that is provided to you. The trailing commission is paid out of the
management fee. The rate depends on the sales charge option you choose:
• Initial sales charge – up to 0.75% of the value of your investment each year
• Deferred sales charge – up to 0.25% of the value of your investment each year
9
You can change your mind about a new contract within two business days of the earlier of:
• the date you received confirmation; and
• five business days after it is mailed
You can also change your mind about new deposits and switches you make under the contract within two business days of the earlier of:
• the date you received confirmation of the transaction; and
You have to tell us in writing, by email, fax or letter, that you want to cancel. The amount returned will be the lesser of the amount you invested and the market
value, if it has gone down. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid for the
cancelled transaction. If you cancel a switch, the amount will be returned to the original fund.
10
FOR MORE INFORMATION
This summary may not contain all the information you need. Please read the contract and the Information Folder. You may contact us at:
ivari
500-5000 Yonge Street
Toronto, ON M2N 7J8
Toll free number: 1-800-846-5970
Email: [email protected]
www.ivari.ca
Any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or decrease in value.
2 of 2
This section provides ivari’s contact information.
57
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ivari Canadian Money Market GIF
FUND FACTS
QUICK FACTS
Number of units outstanding: 344,474
Portfolio turnover rate: N/A
4
The Fund invests in short-term, high-quality, low-risk Canadian
securities issued by the federal and provincial governments with
maturity dates of less than one year.
3
1
Average return
A person who invested $1,000 in the fund on October 13, 2009 now has $999.99.
2
2.6%
3.0%
1.9%
1.3%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
2009
2010
2011
2012
2013
2014
Gov’t of Canada Treasury Bill, 0.90%, February 26, 2015
Gov’t of Canada Treasury Bill, 0.91%, May 21, 2015
Gov’t of Canada Treasury Bill, 0.94%, June 18, 2015
Gov’t of Canada Treasury Bill, 0.94%, June 4, 2015
Gov’t of Canada Treasury Bill, 0.89%, March 26, 2015
Gov’t of Canada Treasury Bill, 0.94%, April 9, 2015
Gov’t of Canada Treasury Bill, 0.92%, May 7, 2015
Bank of Montreal 1.16%, January 15, 2015
TD Bank 1.19%, February 9, 2015
Royal Bank of Canada 1.19%, February 13, 2015
19.32%
14.59%
14.02%
6.18%
5.88%
5.24%
5.08%
4.43%
4.43%
4.43%
0
Total
83.60%
2005
2007
2008
ivari Canadian Money Market GIF – imaxxGIF 75/100 (similar class)
ivari Canadian Money Market GIF (fund)
past 10 years. In the last 10 years, the performance was up in value 5 years and there was
no change in value 5 years. For illustration purposes. Actual segregated fund performance is
expected to vary.
HOW RISKY IS IT?
Very low
2006
Low
Low to
moderate
Moderate
Moderate
to high
High
Cash
100.00%
and contract.
This fund may be right for a person who will invest for the short term and wants some
income with very small changes in value during the term.
1 of 2
59
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
0.99%*
Fee
What you pay
Early Switch Fee
Switch Fee
*In response to historical low short-term interest rates, the decision was made to
temporarily waive a portion of the fees charged to the Fund. This temporary measure was
effective as of March 31, 2009. We reserve the right to change management fees.
Trailing commission
and advice your advisor provides to you. The trailing commission is paid out of the
• Deferred sales charge – up to 0% of the value of your investment each year
ivari
Toronto, ON M2N 7J8
www.ivari.ca
60
2 of 2
FUND FACTS
QUICK FACTS
Average return
15
government bonds.
10
CIBC, 9.98%, June 30, 2108
Aimia Inc., 5.60%, May 17, 2019
Total
8.79%
3.84%
3.71%
3.24%
2.97%
2.83%
2.77%
2.68%
2.62%
2.59%
36.04%
Bond
Cash
5
8.4%
5.2%
7.2%
3.9%
-0.8%
2005
2006
2007
2008
2009
2010
2011
2012
-1.4%
2013 2014
vary.
HOW RISKY IS IT?
Very low
96.20%
3.80%
8.8%
2.9%
2.5%
0
-5
6.4%
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
1 of 2
61
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
2.28%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
62
2 of 2
ivari TD Income Advantage GIF
FUND FACTS
QUICK FACTS
Portfolio manager: TD Asset Management Inc.
Portfolio turnover rate: 8.98%
Average return
20
The Fund invests mainly in units of the current underlying fund and/or
other investments as chosen by us.
10
16.6%
5.9%
5.5%
0.9%
0
Current underlying fund
-10
TD Income Advantage Portfolio
Top investments of the underlying fund as of December 31, 2014
TD Canadian Bond Fund
TD Dividend Income Fund
TD Income Opportunities Pool
TD Short Term Bond Fund
TD Risk Reduction Pool Fund
TD Target Return Conservative Fund
TD High Yield Bond Fund
TD Global Low Volatility Fund
Total
4.9%
3.5%
2.9%
1.6%
2010
2011
2012
2013
5.6%
-7.5%
2005
2006
2007
2008
2009
2014
TD Income Advantage Portfolio (underlying fund – Series I)
ivari TD Income Advantage GIF (fund)
32.57%
15.52%
12.73%
9.98%
7.55%
7.51%
7.46%
6.68%
This chart shows how the fund or underlying fund performed in each of the past 10 years.
In the last 10 years, the performance was up in value 9 years and down in value 1 year. For
illustration purposes. The segregated fund MER is higher than the mutual fund MER. Actual
segregated fund performance is expected to be lower than the underlying fund performance.
100.00%
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
Asset mix of the underlying fund as of December 31, 2014
Stock
Bond
Cash
Other
20.07%
65.17%
7.15%
7.61%
and contract.
1 of 2
63
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.07%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
• Initial sales charge – up to 1% of the value of your investment each year
ivari
Toronto, ON M2N 7J8
www.ivari.ca
64
2 of 2
ivari Canadian Short-Term Bond GIF
FUND FACTS
QUICK FACTS
Date fund created: November 2012
Total fund value (in 000s): $928
Management expense ratio (MER) : 1.92%
7
6
5
4
3
2
1
0
Average return
A person who invested $1,000 in the fund on November 1, 2012 now has $1,029.51.
The Fund invests mainly in Canadian fixed-income and other shortterm securities.
Gov’t of Canada, 1.75%, September 1, 2019
Schooner Trust CCF, 4.85%, October 12, 2038
Aimia Inc., 6.95%, January 26, 2017
EnerCare Solutions, 4.30%, November 30, 2017
Daimler Canada Finance, 2.23%, April 18, 2016
Korea Gas Corporation, 4.58%, May 12, 2016
ERAC Canada Finance, 5.38%, February 26, 2016
Met Life Global Funding, 2.68%, April 16, 2019
Equitable Bank, 2.60%, April 7, 2017
Canadian Capital Auto Rec, 2.94%, November 17, 2017
12.46%
3.94%
3.77%
3.68%
3.47%
3.46%
3.02%
2.89%
2.85%
2.75%
Total
42.29%
5.5%
4.2%
2.5%
1.2%
2005
1.9%
2007
2.9%
1.8%
2008
2009
2010
2011
2012
1.0%
2013
2.0%
2014
ivari Canadian Short-Term Bond GIF (GS/GS2)
ivari Canadian Short-Term Bond GIF (fund)
This chart shows how another class (original class) of the same fund performed in each of the
past 10 years. In the last 10 years, the performance was up in value 10 years. For illustration
purposes. Actual segregated fund performance is expected to vary.
HOW RISKY IS IT?
Very low
2006
3.3%
Low
Low to
moderate
Moderate
Moderate
to high
High
Bond
Cash
99.02%
0.98%
and contract.
This fund may be right for a person who will invest for the short term and wants some income
with small changes in value during the term.
1 of 2
65
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
MER (Annual rate as a % of the
fund’s value)
75/100
1.92%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
66
2 of 2
ivari Canadian Balanced GIF
FUND FACTS
QUICK FACTS
30
20
10
0
-10
-20
-30
Average return
The Fund invests in a balanced mix of Canadian fixed-income and
equity securities.
TD Bank
Royal Bank of Canada
Gov’t of Canada, 2.50%, June 1, 2024
Canadian National Railway
Valeant Pharmaceuticals Intl.
Bank of Nova Scotia
Manulife Financial
Air Canada
Magna International
Total
3.88%
3.62%
3.61%
2.88%
2.18%
2.01%
1.97%
1.94%
1.80%
1.72%
25.61%
15.0% 10.9%
12.1%
2.8%
7.4%
3.4%
5.2%
5.6%
2012
2013
2014
-2.1%
2005
2006
2007
-19.4%
2008 2009
2010
2011
ivari Canadian Balanced GIF – imaxxGIF 75/100 (similar class)
ivari Canadian Balanced GIF (fund)
This chart shows how the fund or similar class of the same fund performed in each of
the past 10 years. In the last 10 years, the performance was up in value 8 years and down
in value 2 years. For illustration purposes. Actual segregated fund performance is
expected to vary.
HOW RISKY IS IT?
Stock
Bond
Cash
Very low
57.00%
39.02%
3.98%
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
This fund may be right for a person who will invest for a medium to long term and wants
potential for growth and income and is comfortable with small to moderate changes in value
during the term.
1 of 2
67
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
2.98%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
68
2 of 2
ivari Canadian Fixed Pay GIF
FUND FACTS
QUICK FACTS
40
20
Average return
-20
imaxx Canadian Fixed Pay Fund
-40
TD Bank
Bank of Nova Scotia
Manulife Financial
Bank of Montreal
Suncor Energy
TELUS Corp.
CIBC
Union Pacific
5.32%
5.26%
3.89%
3.78%
2.91%
2.55%
2.51%
2.27%
2.12%
2.08%
Total
32.69%
17.2%
10.6%
7.0%
0
Top 10 investments of the underlying fund
as of December 31, 2014
35.2%
7.6%
5.7%
7.7%
5.3%
2011
2012
2013
2014
-1.6%
2005
2006
2007
-25.9%
2008 2009
2010
imaxx Canadian Fixed Pay Fund (underlying fund)
ivari Canadian Fixed Pay GIF (fund)
In the last 10 years, the performance was up in value 8 years and down in value 2 years.
For illustration purposes. The segregated fund MER is higher than the underlying mutual fund
MER. Actual segregated fund performance is expected to be lower than the underlying fund
performance.
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
Stock
Bond
Cash
81.24%
14.48%
4.28%
and contract.
This fund may be right for a person who will invest for the long term and wants potential for
growth and some income and is comfortable with moderate changes in value during the term.
1 of 2
69
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.40%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
70
2 of 2
ivari Fidelity Canadian Balanced GIF
FUND FACTS
QUICK FACTS
Portfolio manager: Pyramis Global Advisors LLC
40
30
20
10
0
-10
-20
-30
Average return
Fidelity Canadian Balanced Fund
TD Bank
Canadian Pacific Railway
Magna International
Restaurant Brands Intl.
Brookfield Asset Management
Gildan Activewear
Spirit Airlines
Loblaw Companies
3.99%
3.46%
3.15%
2.81%
2.75%
2.38%
2.05%
1.88%
1.83%
1.47%
Total
25.77%
Stock
Bond
Cash
Other
13.7% 10.5%
8.1%
22.3%
12.0%
4.7%
11.2% 9.7%
-2.3%
2005
2006
2007
-18.7%
2008 2009
2010
2011
2012
2013
2014
Fidelity Canadian Balanced Fund (underlying fund – Series B)
ivari Fidelity Canadian Balanced GIF (fund)
performance.
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
50.92%
38.03%
3.57%
7.48%
and contract.
during the term.
1 of 2
71
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.41%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
72
2 of 2
ivari Fidelity Canadian Asset Allocation GIF
FUND FACTS
QUICK FACTS
Portfolio manager: Pyramis Global Advisors LLC
40
30
20
10
0
-10
-20
-30
Average return
Fidelity Canadian Asset Allocation Fund
S&P500 EMINI FUT MAR15 ESH5
TD Bank
Enbridge Inc.
iShares Core S&P 500 ETF
Constellation Software
Canadian Natural Resources
Loblaw Companies
Bank of Nova Scotia
BCE Inc.
5.05%
3.91%
3.59%
3.04%
2.70%
2.17%
2.00%
1.58%
1.50%
1.47%
Total
27.01%
Total investments: 1,068
24.8%
14.0% 12.0%
8.7%
6.1%
1.5%
8.7%
8.5%
2013
2014
-6.4%
2005
-19.3%
2007 2008 2009
2006
2010
2011
2012
Fidelity Canadian Asset Allocation Fund (underlying fund – Series B)
ivari Fidelity Canadian Asset Allocation GIF (fund)
performance.
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
Stock
Bond
Cash
Other
58.67%
26.76%
9.48%
5.09%
and contract.
during the term.
1 of 2
73
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.48%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
74
2 of 2
ivari TD Dividend Balanced GIP
FUND FACTS
QUICK FACTS
Portfolio manager: TD Asset Management Inc. – Multi Managers
This section tells you how the fund has performed over the past 5 years for a contractholder.
10
8
6
4
2
0
The Fund invests in units of several underlying TD mutual funds and/
or other investments as chosen by us. The underlying mutual funds
will invest mainly in high-quality, high-yielding equities of Canadian
companies and fixed-income securities.
Target
allocation
Current underlying funds
TD Canadian Core Plus Bond Fund
TD Dividend Growth Fund
60%
40%
Top investments of the fund as of December 31, 2014
TD Canadian Core Plus Bond
(Top 10 investments of the underlying fund)
Royal Bank of Canada, 0.95%, January 2, 2015
Province of Ontario, 4.65%, June 2, 2041
Gov’t of Canada, 1.75%, March 1, 2019
Province of Ontario, 2.85%, June 2, 2023
Province of British Columbia, 4.30%, June 18, 2042
Province of New Brunswick, 2.85%, June 2, 2023
Total
59.83%
4.83%
4.08%
3.04%
2.55%
2.39%
1.94%
1.93%
1.55%
1.33%
1.17%
40.17%
100.00%
Sector allocation of the underlying fund as of December 31, 2014
Financials
Energy
Industrials
Telecom. Services
Consumer Discretionary
Utilities
Materials
Consumer Staples
Health Care
Information Technology
Other
20.49%
7.66%
3.40%
2.44%
2.00%
1.36%
0.71%
0.39%
0.32%
0.02%
61.21%
Average return
7.3%
6.1%
5.5%
2.8%
2010
2011
2012
4.2%
2013
2014
ivari TD Dividend Balanced GIP (fund)
This chart shows how the fund performed in each of the past 5 years. In the last 5 years, the
performance was up in value 5 years. The segregated fund MER is higher than the underlying
mutual fund MER. Actual segregated fund performance is expected to be lower than the
underlying fund performance.
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
potential for income and some growth and is comfortable with small to moderate changes in
value during the term.
1 of 2
75
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.14%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
76
2 of 2
ivari TD Dividend Income GIF
FUND FACTS
QUICK FACTS
Portfolio manager: TD Asset Management Inc.
40
20
0
-20
-40
Average return
TD Dividend Income Fund
7.11%
7.01%
6.28%
6.15%
5.87%
4.23%
2.83%
2.47%
2.45%
2.40%
Total
46.80%
30.8%
7.5%
0.1%
0.2%
7.8% 11.0% 9.5%
-28.8%
2005
TD Bank
Bank of Montreal
CIBC
Bank of Nova Scotia
Enbridge Inc.
Brookfield Asset Management
Manulife Financial
TELUS Corp.
16.7% 13.2%
2006
2007
2008
2009
2010
2011
2012
2013
2014
TD Dividend Income Fund (underlying fund – Series I)
ivari TD Dividend Income GIF (fund)
In the last 10 years, the performance was up in value 9 years and down in value 1 year.
performance.
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
Stock
Bond
Cash
Other
77.85%
21.06%
0.85%
0.24%
and contract.
potential for income and growth and is comfortable with small to moderate changes in value
during the term.
1 of 2
77
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.45%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
78
2 of 2
ivari Canadian Equity GIF
FUND FACTS
QUICK FACTS
40
The Fund invests mainly in the equities of large Canadian companies
and some medium-sized companies with strong growth potential.
20
-20
TD Bank
Bank of Nova Scotia
Bank of Montreal
Manulife Financial
Air Canada
Magna International
TELUS Corp.
Average return
6.26%
6.26%
3.77%
3.48%
3.42%
3.26%
3.16%
3.12%
3.01%
2.96%
Total
38.70%
19.2%
17.9%
12.7% 14.4%
9.4%
0
3.3%
10.3% 4.8%
2012
2013
-10.1%
-40
-33.7%
2005
2006
2007
2008
2009
2010
2011
2014
ivari Canadian Equity GIF – imaxxGIF 75/100 (similar class)
ivari Canadian Equity GIF (fund)
This chart shows how the fund or similar class of the same fund performed in each of the past
10 years. In the last 10 years, the performance was up in value 8 years and down in value 2
years. For illustration purposes. Actual segregated fund performance is expected to be lower
than the underlying fund performance.
HOW RISKY IS IT?
Stock
Cash
Very low
97.97%
2.03%
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
growth and is comfortable with moderate changes in value during the term.
1 of 2
79
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.50%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
80
2 of 2
ivari Canadian Large Cap Index GIF
FUND FACTS
QUICK FACTS
Portfolio turnover rate: N/A
20
The Fund invests in units of exchange traded funds and/or futures
contracts that get their value from the performance of the
S&P/TSX 60 Index. Money market instruments, such as treasury bills
and short-term government and corporate debt securities may also
make up the rest of the assets of the Fund.
10
Average return
iShares S&P/TSX 60 Index Fund
100.00%
Total
100.00%
10.0%
4.0%
9.3%
8.2%
2013
2014
0
-10
-12.1%
-20
2010
2011
2012
ivari Canadian Large Cap Index GIF (fund)
This chart shows how the fund performed in each of the past 5 years. In the last 5 years, the
performance was up in value 4 years and down in value 1 year. Performance will vary year
over year.
HOW RISKY IS IT?
Stock
100.00%
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
1 of 2
81
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.46%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
82
2 of 2
ivari U.S. Equity Index GIF
FUND FACTS
QUICK FACTS
40
The Fund invests in units of exchange traded funds and/or futures
contracts that get their value from the performance of the Standard &
Poor’s 500 Index. Money market instruments, such as treasury bills
and short-term government and corporate debt securities may also
make up the rest of the assets of the Fund.
30
Average return
34.1%
18.9%
20
10
0
SPDR S&P 500 E.T.F.
Gov’t of Canada Treasury Bill, 0.88%, January 29, 2015
Gov’t of Canada Treasury Bill, 0.90%, February 26, 2015
Gov’t of Canada Treasury Bill, 0.88%, March 12, 2015
Total
97.66%
1.69%
0.34%
0.31%
100.00%
Stock
Cash
1.7%
2010
2011
2012
2013
2014
ivari U.S. Equity Index GIF (fund)
This chart shows how the fund performed in each of the past 5 years. In the last 5 years,
the performance was up in value 5 years. Performance will vary year over year.
HOW RISKY IS IT?
Very low
97.66%
2.34%
9.7%
4.1%
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
1 of 2
83
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.46%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
84
2 of 2
ivari Global Growth GIF
FUND FACTS
QUICK FACTS
30
The Fund invests primarily in equity and fixed income securities
throughout the world. The fund will be managed so that it is prudently
diversified among countries, industries and securities.
20
Average return
iShares MSCI EAFE® Index Fund
iShares S&P/TSX 60 Index Fund
iShares S&P 500 Index Fund
iShares Rusl Mid-Cap E.T.F.
PowerSh QQQ E.T.F.
iShares MSCI Japan E.T.F.
iShares Canadian Universe Bond Index ETF
Intrinsyc Software International Inc.
Total
24.89%
20.30%
19.97%
10.09%
9.92%
9.79%
4.90%
0.14%
100.00%
Stock
Bond
Cash
Other
21.6%
10.1%
10
0
-10
-6.2%
2010
2011
2012
2013
2014
ivari Global Equity Index – up to November 2, 2012.
ivari Global Growth GIF (fund) – post November 2, 2012
This chart shows how the fund performed in each of the past 5 years. The fund name and
objective changed in November 2012. In the last 5 years, the performance was up in value
4 years and down in value 1 year. Performance will vary year over year.
HOW RISKY IS IT?
Very low
94.81%
4.89%
0.16%
0.14%
8.6%
2.6%
Low
Low to
moderate
Moderate
Moderate
to high
High
and contract.
1 of 2
85
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.52%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
86
2 of 2
ivari CI Conservative GIP
FUND FACTS
QUICK FACTS
Portfolio manager: CI Investments Inc.
20
10
Average return
12.8%
6.2%
6.5%
0
-20
Aegon Capital Management Canadian Bond Pool
Signature Global Bond Fund
Cambridge Income Corporate Class
Signature Diversified Yield ll Fund
Signature High Income Fund
CI American Value Corporate Class
Synergy Canadian Corporate Class
Signature Select Canadian Corporate Class
CI International Value Corporate Class
Cambridge Global Equity Corporate Class
36.82%
17.94%
6.90%
6.21%
6.12%
5.71%
4.43%
4.13%
3.43%
3.22%
Total
94.91%
2005
Stock
Bond
10.3% 7.7%
2010
2011
2012
2013
2014
ivari CI Conservative GIP – imaxxGIF 75/100 (similar class)
TOPTM Conservative GIP – up to Sept 21, 2012
ivari CI Conservative GIP (fund) – post Sept 21, 2012
10 years. The fund name and the underlying fund changed in September 2012. In the last
10 years, the performance was up in value 7 years and down in value 3 years. For illustration
HOW RISKY IS IT?
Very low
-14.1%
2007 2008 2009
2006
6.4%
-0.3%
-1.8%
-10
ivari CI Conservative Portfolio
7.0%
Low
Low to
moderate
Moderate
Moderate
to high
High
42.75%
57.25%
and contract.
1 of 2
87
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.09%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
88
2 of 2
ivari CI Canadian Balanced GIP
FUND FACTS
QUICK FACTS
30
20
10
0
-10
-20
-30
Average return
ivari CI Canadian Balanced Portfolio
Signature Canadian Bond Fund
Cambridge Canadian Equity Corporate Class
CI Canadian Investment Corporate Class
Harbour Corporate Class
Cambridge Income Corporate Class
28.71%
12.25%
8.90%
8.76%
7.43%
7.36%
6.82%
6.39%
6.09%
5.18%
Total
97.89%
18.6%
1.1%
Stock
Bond
Cash
6.3%
10.1% 7.8%
2012
2013
-0.9%
-15.3%
2007
2008
2009
2010
2011
2014
ivari CI Canadian Balanced GIP – imaxxGIF 75/100 (similar class)
TOPTM Canadian Balanced GIP – up to Sept 21, 2012
ivari CI Canadian Balanced GIP (fund) – post Sept 21, 2012
past 8 years. The fund name and the underlying fund changed in September 2012. In the last
HOW RISKY IS IT?
Very low
9.0%
Low
Low to
moderate
Moderate
Moderate
to high
High
52.38%
44.79%
2.83%
and contract.
during the term.
1 of 2
89
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.20%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
90
2 of 2
ivari CI Balanced GIP
FUND FACTS
QUICK FACTS
30
20
10
0
-10
-20
-30
Average return
ivari CI Balanced Portfolio
Signature Global Bond Fund
CI Canadian Investment Corporate Class
Signature International Corporate Class
Signature Diversified Yield ll Fund
21.17%
8.58%
6.33%
5.48%
5.23%
5.13%
5.06%
4.99%
4.93%
4.84%
Total
71.74%
6.4%
Stock
Bond
Cash
7.7%
-3.0%
2005
14.6%
8.3%
-3.8%
-20.2%
2007 2008 2009
2006
7.5%
2010
2011
2012
2013
2014
ivari CI Balanced GIP – imaxxGIF 75/100 (similar class)
TOPTM Balanced GIP – up to Sept 21, 2012
ivari CI Balanced GIP (fund) – post Sept 21, 2012
This chart shows how the fund or or similar class of the same fund performed in each of
the past 10 years. The fund name and the underlying fund changed in September 2012. In
the last 10 years, the performance was up in value 7 years and down in value 3 years. For
illustration purposes. Actual segregated fund performance is expected to vary.
HOW RISKY IS IT?
Very low
15.2%
8.8%
Low
Low to
moderate
Moderate
Moderate
to high
High
63.01%
33.81%
3.18%
and contract.
during the term.
1 of 2
91
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.39%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
92
2 of 2
ivari CI Growth GIP
FUND FACTS
QUICK FACTS
Average return
40
20
20.5%
7.2% 10.8%
-40
CI American Managers® Corporate Class
Cambridge American Equity Corporate Class
15.48%
8.77%
8.12%
7.35%
7.33%
6.60%
6.20%
5.86%
5.39%
5.33%
Total
76.43%
Stock
Bond
Cash
8.2%
20.5%
8.4%
0
-4.8%
-20
ivari CI Growth Portfolio
9.1%
-6.2%
-26.2%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
ivari CI Growth GIP – imaxxGIF 75/100 (similar class)
TOPTM Growth GIP – up to Sept 21, 2012
ivari CI Growth GIP (fund) – post Sept 21, 2012
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
79.48%
19.06%
1.46%
and contract.
potential for growth and some income and is comfortable with small to moderate changes in
1 of 2
93
ivari CI Growth GIP
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.50%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
94
2 of 2
ivari CI Maximum Growth GIP
FUND FACTS
QUICK FACTS
40
20
0
-20
-40
Average return
ivari CI Maximum Growth Portfolio
CI American Managers® Corporate Class
Cambridge American Equity Corporate Class
CI Can-Am Small Cap Corporate Class
Total
9.30%
8.99%
8.96%
8.39%
7.86%
7.59%
7.45%
6.86%
6.52%
5.63%
77.55%
10.6%
-5.5%
2005
26.7%
10.2% 14.1%
2006
2007
8.8%
24.2%
8.6%
-10.4%
-33.2%
2008 2009
2010
2011
2012
2013
2014
ivari CI Maximum Growth GIP – imaxxGIF 75/100 (similar class)
TOPTM Aggressive Growth GIP – up to Sept 21, 2012
ivari CI Maximum Growth GIP (fund) – post Sept 21, 2012
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
Stock
Bond
Cash
96.80%
0.55%
2.65%
and contract.
1 of 2
95
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.76%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
96
2 of 2
ivari Quotential Balanced Income GIF
FUND FACTS
QUICK FACTS
Portfolio manager: Fiduciary Trust Company of Canada
30
20
10
0
-10
-20
-30
Average return
Franklin Quotential Balanced Income Portfolio
Franklin Bissett Bond Fund
Templeton Global Bond Fund
Franklin Bissett Canadian Equity Fund
Franklin U.S. Core Equity Fund
Franklin Mutual European Fund
Templeton Asian Growth Fund
Franklin Flex Cap Growth Fund
iShares Inter Cred Bond E.T.F.
WisdomTree Japan Hedged Equity
Franklin Bissett All Canadian Focus Fund
29.65%
8.94%
4.64%
4.52%
4.51%
4.11%
3.96%
3.71%
3.53%
3.44%
Total
71.01%
20.8%
8.1%
Stock
Bond
Cash
Other
7.4%
-0.3%
4.5%
8.7%
5.6%
2013
2014
-2.7%
-18.4%
2005
2006
2007
2008
2009
2010
2011
2012
Franklin Quotential Balanced Income Portfolio (underlying fund – Series A)
ivari Quotential Balanced Income GIF (fund)
performance.
HOW RISKY IS IT?
Very low
7.7%
Low
Low to
moderate
Moderate
Moderate
to high
High
48.22%
38.14%
8.65%
4.99%
and contract.
1 of 2
97
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.31%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
98
2 of 2
ivari Quotential Balanced Growth GIF
FUND FACTS
QUICK FACTS
40
20
Average return
8.7%
0
-0.2%
-20
Franklin Quotential Balanced Growth Portfolio
-40
Templeton Global Bond Fund
Franklin U.S. Rising Dividends Fund
19.87%
6.13%
5.98%
5.95%
5.93%
5.42%
5.24%
4.70%
4.55%
4.41%
Total
68.18%
Stock
Bond
Cash
Other
25.5%
10.6% 9.9%
5.3%
13.6%
6.2%
-5.5%
-25.4%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Franklin Quotential Balanced Growth Portfolio (underlying fund – Series A)
ivari Quotential Balanced Growth GIF (fund)
performance.
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
60.96%
25.60%
6.85%
6.59%
and contract.
1 of 2
99
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.34%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
100
2 of 2
ivari Quotential Growth GIF
FUND FACTS
QUICK FACTS
40
20
0
-20
-40
Average return
Franklin Quotential Growth Portfolio
Franklin U.S. Rising Dividends Fund
SPDR Euro STOXX 50 E.T.F.
11.05%
6.88%
6.81%
6.72%
6.15%
6.15%
5.38%
5.20%
4.51%
4.06%
Total
62.91%
Stock
Bond
Cash
Other
8.8%
-1.3%
6.5%
18.6%
6.5%
-8.6%
-31.1%
2005
27.4%
8.8% 13.3%
2006
2007
2008
2009
2010
2011
2012
2013
2014
Franklin Quotential Growth Portfolio (underlying fund – Series A)
ivari Quotential Growth GIF (fund)
performance.
HOW RISKY IS IT?
Very low
Low
Low to
moderate
Moderate
Moderate
to high
High
73.34%
14.46%
5.22%
6.98%
and contract.
1 of 2
101
1. Sales charges
Sales charge option
What you pay
How it works
DSC units)
If you sell within:
6%
5%
4%
3%
2%
1%
0%
be paid to us.
3. Other fees
Guarantee
(Maturity/Death)
75/100
3.39%
Fee
What you pay
Early Switch Fee
Switch Fee
Trailing commission
ivari
Toronto, ON M2N 7J8
www.ivari.ca
102
2 of 2
103
TH
IS
E
PA
G
IS
FT
LE
LL
Y
NA
IO
NT
TE
IN
K
AN
BL
Appendix A – Investment Objectives and Investment Policies of the Funds
The following provides the investment objective and investment policies for the funds available within the ivari GIF Contract.
ivari Guaranteed
Investment Fund
Investment Objective
Investment Policies of the ivari GIF or GIP
ivari Canadian
Money Market GIF
The objective of this fund is
to make available the capital
protection and high-liquidity of
the short- term money market in
Canada and to earn the highest
returns available with minimum
exposure to risk.
The investment policy of this fund is to invest in high-quality, low-risk securities,
with maturity dates of less than one year, in order to take advantage of the rates
of return available in the market. The fund may invest in money market securities
including treasury bills, commercial paper (including bank-sponsored asset
backed commercial paper (“ABCP”)), bankers’ acceptances, and other debt
instruments with remaining terms to maturity of 365 days or less. Investments in
bank-sponsored asset-backed commercial paper (ABCP) will not exceed 10% of
the fund assets. This fund may invest in Canadian short-term securities issued
by the federal and provincial governments, minimum A1 and R1-rated financial
institutions and other corporate issuers. All the securities are of investment
grade quality. The dollar-weighted average term to-maturity of the securities held
by this fund will not exceed 180 days. The fund is currently invested to obtain a
minimum and maximum asset mix of 100% in domestic cash & t-bills.
to achieve long-term stable
growth through interest income
and capital growth by investing
primarily in Canadian bonds of
varying maturities and in shortterm securities.
The investment policy of this fund is to invest primarily in Canadian bonds of
varying maturities and in short-term securities. It is intended that the duration
of the fund’s portfolio be maintained within a range of plus or minus two years
of the duration for the FTSE TMX Canada Universe Bond Index™ or any index
which may replace the FTSE TMX Canada Universe Bond Index™. The fund is
only invested in securities:
(i) issued by Canadian companies and/or non-Canadian domiciled companies
that issue debt in Canada, in Canadian dollars, and traded on Canadian
over-the-counter markets; and
(ii) issued by U.S. companies or supranationals up to 30% of the fund’s
portfolio.
The investments are in high-quality marketable securities, consisting of
government bonds, asset-backed securities and corporate bonds. The portfolio
will have an average investment grade credit rating or higher. In order to enhance
yield, up to 35% of the Fund’s assets may be invested in below investment grade
and un-rated securities. The maximum exposure to a single issuer will be 10% of
the market value of the fund’s assets at the time of purchase with the exception
of federal and provincial governments and their agencies. No one industry sector
will exceed 25% of the market value of the fund’s assets at the time of purchase.
This fund does not currently use derivatives but may do so as described under
Derivatives and their Permissible use.
The objective of this fund is to
emphasize income with some
potential for capital appreciation
by investing in units of the TD
Income Advantage Portfolio or a
similar fund.
The investment policy of this fund is to invest all of its net assets in the
current underlying fund and/or other investments as deemed appropriate by
us. The investment objective of the underlying fund is to emphasize income
with some potential for capital appreciation. TD Income Advantage Portfolio
invests primarily in units of TD mutual funds and may include other mutual
funds managed by parties other than TDAM (or affiliates or associates), from
time to time, emphasizing mutual funds with income generating potential. The
Investment Policy/strategies of the underlying fund can be found in the current
simplified prospectus and/or financial statement by contacting the mutual
fund company (see Appendix B – Underlying Fund Company Information for
the address and phone number) or by visiting the following website: www.
tdassetmanagement.com
Money Market & Fixed Income
104
continued
ivari Guaranteed
Investment Fund
Money Market & Fixed Income – continued
ivari Canadian
Short-Term Bond GIF
preserve capital and liquidity
while generating a high level of
income. The fund will be invested
in money market and short- term
fixed income securities issued
by governments, supranational
agencies and corporations.
This fund may be invested in Canadian bonds, term deposits, guaranteed
investment certificates and other Canadian short- term fixed income securities
issued by the following: corporations, federal, provincial, and municipal
governments, supranational agencies, asset-backed security trusts, collateralized
mortgage-backed security trusts and mortgage-backed security trusts.
In regards to the short-term securities issued by corporations, the fund is only
invested in securities:
(i) issued by Canadian companies and/or non-Canadian domiciled companies
that issue debt in Canada, in Canadian dollars, and traded on Canadian
over-the-counter markets; and
(ii) issued by U.S. companies or supranationals up to 15% of the fund’s
portfolio.
All the securities will be investment grade quality or better at the time of
purchase. The maximum exposure to a single issuer will be 10% of the market
value of the fund assets at the time of purchase with the exception of federal and
provincial governments and their agencies.
achieve long-term stable growth
and to maintain a reasonable
degree of portfolio diversification
to reduce risk by investing in fixed
income and equity securities.
The investment policy of this fund is to invest primarily in Canadian securities,
but foreign securities may also be included. The fund aims to achieve its
investment objective through prudent security selection. The fund is specifically
designed to relieve policyholders of the asset mix decision for their portfolios.
Investments acquired in respect of this fund are primarily denominated in
Canadian dollars but other currencies are also represented. The preferred
and common shares are listed on the Toronto Stock Exchange or any other
major stock exchange or over-the-counter market. The fixed income securities
are available in the over-the-counter market. Securities include fixed income
securities (including both corporate and government bonds with an average
investment grade credit rating), equities (including common and preferred
shares, rights and warrants), and/or Exchange Traded Funds (“ETFs”),
derivatives (on a non-leveraged basis), certificates of deposit, cash and short
term securities. The fund may invest in securities of non-Canadian domiciled
companies that issue debt in Canada, in Canadian dollars, and traded over-thecounter in Canada. The component mix will be regularly adjusted to reflect the
potential returns in both the fixed income and equity markets. The maximum
exposure to a single issuer will be 10% of the market value of the fund’s assets
at the time of purchase with the exception of federal and provincial governments
and their agencies. The equity portfolio will always hold less than 10% of the
voting securities of an issuer. Portfolio diversification will seek to avoid any
undue concentration in one industry. The fund is currently invested to obtain the
following asset range minimum of 40% and maximum of 60%, for both equities
and fixed income securities.
Canadian Balanced
105
continued
ivari Guaranteed
Investment Fund
Canadian Balanced – continued
106
provide capital appreciation by
investing in units of the imaxx
Canadian Fixed Pay Fund or a
similar fund.
The investment policy of this fund is to invest all of its net assets primarily in the
current underlying fund and/or other investments as deemed appropriate by us.
The investment objective of the underlying fund is to provide a consistent stream
of monthly income and some capital appreciation by investing in a portfolio
of Canadian fixed income, investment trust units and equity investments. The
underlying fund’s fundamental investment objectives may not be changed
without prior approval of the majority of its investors who vote at a meeting
called for that purpose, except when the change is required because of changes
in law. The Investment Policy/strategies of the underlying fund can be found in
the current simplified prospectus and/or financial statement by contacting the
mutual fund company (see Appendix B-Underlying Fund Company Information
for the address and phone number) or by visiting the following website: www.
imaxxwealth.com
ivari Fidelity
Canadian Balanced GIF
provide a high total investment
return by investing in units of the
Fidelity Canadian Balanced Fund
or a similar fund.
The investment policy of this fund is to invest all of its net assets in the current
underlying fund and/or other investments as deemed appropriate by us. The
investment objective of the underlying fund is to achieve high total investment
return. It uses a balanced approach. It invests primarily in a mix of Canadian
equity securities, investment grade bonds, high yield securities and money
market instruments. The Investment Policy/strategies of the underlying fund
can be found in the current simplified prospectus and/or financial statement by
contacting the mutual fund company (see Appendix B-Underlying Fund Company
Information for the address and phone number) or by visiting the following
website: www.fidelity.ca
ivari Fidelity
Canadian Asset Allocation GIF
provide a high total investment
return by investing in units of the
Fidelity Canadian Asset Allocation
Fund or a similar fund.
investment objective of the underlying fund is to achieve high total investment
return. The underlying fund uses an asset allocation approach. It invests
primarily in a mix of Canadian equity securities, fixed-income securities and
money market instruments. The Investment Policy/strategies of the underlying
fund can be found in the current simplified prospectus and/or financial statement
by contacting the mutual fund company (see Appendix B-Underlying Fund
Company Information for the address and phone number) or by visiting the
following website: www.fidelity.ca
The objective of this portfolio
is to provide long-term stable
growth and some interest
income by investing in units of
underlying TD mutual funds and/
or other investments as deemed
appropriate by us.
The investment policy of this portfolio is to invest all of its net assets in units of
underlying TD mutual funds and/or other investments as deemed appropriate
by us. The underlying mutual funds will primarily invest in high-quality, highyielding equities of Canadian companies and fixed-income securities. The fixed
income securities may include non-Canadian and non-investment grade debt
instruments. The portfolio’s asset mix will generally be between 35% to 55% in
equities and 45% to 65% in fixed income. We may change these targeted mixes
and underlying funds at any time to better achieve the investment objective of
each GIP. You will not be notified when the GIPs are rebalanced or when an
underlying fund and/or its targeted weight is changed. If the change meets the
definition of a Fundamental Change, the Fundamental Change Rule in section
14.1 of the Annuity Policy will apply. The Investment Objective/strategies and
Strategies of the underlying funds (TD Canadian Core Plus Bond Fund and TD
Dividend Growth Fund), can be found in Appendix B.
continued
ivari Guaranteed
Investment Fund
provide a high level of after-tax
return and capital appreciation
by investing in units of the TD
Dividend Income Fund or a similar
fund.
fundamental investment objective of the underlying fund is to seek to provide
income with capital appreciation as a secondary objective, by investing
primarily in income-producing securities. The Investment Policy/strategies of
the underlying fund can be found in the current simplified prospectus and/or
financial statement by contacting the mutual fund company (see Appendix B –
Underlying Fund Company Information for the address and phone number) or by
visiting the following website: www.tdassetmanagement.com
achieve superior long-term total
returns, at moderate risk, through
a combination of capital gains
and dividend income by investing
primarily in Canadian equity
securities.
The investment policy of this fund is to invest primarily in equities (such as:
common and preferred shares, rights and warrants and/or Exchange Traded
Funds (“ETFs”)), although derivatives (on a non-leveraged basis, REITs), cash
and short term securities may also be included. The fund will primarily invest in
the equities of large cap Canadian companies and where considered appropriate,
some medium cap companies. The fund’s portfolio is broadly diversified. The
maximum exposure to a single issuer will be 10% of the market value of the fund
at the time of the purchase. Portfolio diversification will seek to avoid any undue
concentration in any one industry or company. The equity portfolio will always
hold less than 10% of the voting securities of an issuer. The investments are
primarily Canadian, but foreign securities may also be included. The securities
are of companies listed on the Toronto Stock Exchange or any other nationally
recognized stock exchange or over-the-counter market.
ivari Canadian
Large Cap Index GIF
provide long-term capital growth.
The fund seeks to achieve returns
similar to a generally recognized
index of the large-cap Canadian
equity index market, currently
being the S&P/TSX 60 Index.
The investment policy of this fund is to provide long-term capital growth through
investment in and/or exposure to Canadian equity securities. In attempting
to achieve its objective, the fund currently invests in Exchange Traded Funds
(ETFs) and/or futures contracts that derive their value from the performance of
the S&P/TSX 60 Index. Money market instruments such as treasury bills and
short-term government and corporate debt securities may make up the balance
of the assets of the fund. The fund may use derivatives such as options, futures,
forward contracts and other instruments that provide exposure to or derive their
value from the performance of an index. Investments in derivatives will be made
on a non-leveraged basis only. The value of the futures contracts outstanding
at any time should closely approximate the value of the cash and short-term
securities backing such investment.
Canadian Balanced – continued
Canadian Equity
107
continued
ivari Guaranteed
Investment Fund
provide long-term capital growth.
The fund seeks to achieve returns
similar to a generally recognized
index of the U.S equity market,
currently being the S&P 500
Index.
The investment policy of this fund is to provide long-term capital growth through
investment in and/or exposure to U.S. equity securities. In attempting to achieve
its objective, the fund currently invests in Exchange Traded Funds (ETFs) and/or
futures contracts that derive their value from the performance of the Standard
& Poor’s 500 Index. Money market instruments such as treasury bills and
short-term government and corporate debt securities may make up the balance
of the assets of the fund. The fund may use derivatives such as options, futures,
forward contracts and other instruments that provide exposure to or derive their
value from the performance of an index. Investments in derivatives will be made
on a non-leveraged basis only. The value of the futures contracts outstanding
at any time should closely approximate the value of the cash and short-term
securities backing such investment. The fund does not seek to hedge against
changes in currencies.
achieve long term growth by
investing primarily in equity
and fixed income securities
throughout the world. The fund
will be managed so that it is
prudently diversified among
countries, industries
and securities.
This fund may be invested in equities (including common and preferred stock,
rights and warrants), trust units, stock index options, futures contracts and
other derivative instruments (on a non-leveraged basis), bonds convertible into
common stock, and other fixed income securities. The fund may also invest in
units of mutual funds, pooled funds and other alternative investments as deemed
appropriate by us for hedging purposes. Cash, money market instruments and
other short-term securities may also be included. The fund may choose to
deviate from its investment objective by temporarily investing most or all of its
assets in cash, cash equivalents or fixed income securities during periods of a
market downturn or for other reasons. The portfolio manager of the GIF will have
the discretion as to whether currency exchange will be hedged or not.
is to earn a reasonable level of
income, while also providing the
opportunity for moderate longterm capital appreciation through
investment in a diversified
portfolio of income and equity
based underlying mutual funds
and/or other investments as
deemed appropriate by us.
underlying mutual funds and/or other investments as deemed appropriate by us.
The target asset allocation of the portfolio is currently 60% income and 40%
equity. We may change these targeted mixes and underlying funds at any time to
better achieve the investment objective of each GIP. You will not be notified when
the GIPs are rebalanced or when an underlying fund and/or its targeted weight
is changed. If the change meets the definition of a Fundamental Change, the
Fundamental Change Rule in section 14.1 of the Annuity Policy will apply.
is to earn a reasonable level of
income, while also providing the
opportunity for moderate longterm capital appreciation through
investment in a diversified
portfolio of income and equity
based underlying mutual funds
and/or other investments as
deemed appropriate by us.
The target asset allocation of the portfolio is currently 50% income and 50%
equity. We may change these targeted mixes and underlying funds at any time to
better achieve the investment objective of each GIP. You will not be notified when
the GIPs are rebalanced or when an underlying fund and/or its targeted weight
is changed. If the change meets the definition of a Fundamental Change, the
Fundamental Change Rule in section 14.1 of the Annuity Policy will apply.
U.S. Equity
Global Equity
Asset Allocation Portfolios
108
continued
ivari Guaranteed
Investment Fund
The objective of this portfolio is
to provide a reasonable balance
between growth and income-oriented
investments, with a slight bias towards
growth funds through investment in
a diversified portfolio of income and
equity based underlying mutual funds
and/or other investments as deemed
appropriate by us.
The investment policy of this portfolio is to invest all of its net assets in
units of underlying mutual funds and/or other investments as deemed
appropriate by us. The target asset allocation of the portfolio is currently
40% income and 60% equity. We may change these targeted mixes and
underlying funds at any time to better achieve the investment objective of
each GIP. You will not be notified when the GIPs are rebalanced or when an
underlying fund and/or its targeted weight is changed. If the change meets
the definition of a Fundamental Change, the Fundamental Change Rule in
section 14.1 of the Annuity Policy will apply.
ivari CI Growth GIP
The objective of this portfolio is to
provide long-term capital appreciation,
through investment in a diversified
portfolio of primarily growth-oriented
funds, but income-oriented funds
are of some importance by investing
in units of underlying mutual funds
and/or other investments as deemed
appropriate by us.
The investment policy of this portfolio is to invest all of its net assets
in units of underlying mutual funds and other investments as deemed
appropriate by the manager. The target asset allocation of the portfolio is
currently 25% income and 75% equity. We may change these targeted
mixes and underlying funds at any time to better achieve the investment
objective of each GIP. You will not be notified when the GIPs are rebalanced
or when an underlying fund and/or its targeted weight is changed. If the
change meets the definition of a Fundamental Change, the Fundamental
Change Rule in section 14.1 of the Annuity Policy will apply.
The objective of this portfolio is to
provide long-term capital appreciation,
through investment in a diversified
portfolio of primarily growth oriented
underlying mutual funds and/or other
investments as deemed appropriate
by us.
The investment policy of this portfolio is to invest all of its net assets in
units of underlying mutual funds and/or other investments as deemed
appropriate by us. The target asset allocation of the portfolio is currently
100% equity. We may change these targeted mixes and underlying funds at
any time to better achieve the investment objective of each GIP. You will not
be notified when the GIPs are rebalanced or when an underlying fund and/
or its targeted weight is changed. If the change meets the definition of a
Fundamental Change, the Fundamental Change Rule in section 14.1 of the
Annuity Policy will apply.
ivari Quotential
Balanced Income GIF
The objective of this fund is to provide
a balance of current income and
long-term capital appreciation by
investing in units of the Franklin
Quotential Balanced Income Portfolio
or a similar fund.
current underlying fund and/or other investments as deemed appropriate
by us. The investment objective of the underlying fund is to provide a
balance of current income and long-term capital appreciation by investing
in a diversified mix of equity and income mutual funds, with a bias towards
income. The Investment Policy/strategies of the underlying fund can be
found in the current simplified prospectus and/or financial statement by
contacting the mutual fund company (see Appendix B – Underlying Fund
following website: www.franklintempelton.ca
ivari Quotential
Balanced Growth GIF
The objective of this fund is to provide
a balance of current income and
long-term capital appreciation by
investing in units of the Franklin
Quotential Balanced Growth Portfolio
or a similar fund.
current underlying fund and/or other investments as deemed appropriate
by us. The investment objective of the underlying fund is to provide a
balance of current income and long-term capital appreciation by investing
in a diversified mix of equity and income mutual funds, with a bias towards
capital appreciation. The Investment Policy/strategies of the underlying fund
can be found in the current simplified prospectus and/or financial statement
by contacting the mutual fund company (see Appendix B – Underlying Fund
following website: www.franklintempelton.ca
Asset Allocation Portfolios – continued
109
Appendix B – Underlying Funds and Fund Company Information continued
ivari Guaranteed
Investment Fund
Asset Allocation Portfolios – continued
110
to provide long-term capital
appreciation by investing in units
of the Franklin Quotential Growth
Portfolio or a similar fund.
investment objective of the underlying fund is to provide long-term capital
appreciation by investing primarily in a diversified mix of equity mutual funds
with additional stability derived from investing in income mutual funds. The
Investment Policy/strategies of the underlying fund can be found in the current
simplified prospectus and/or financial statement by contacting the mutual
fund company (see Appendix B – Underlying Fund Company Information for
the address and phone number) or by visiting the following website: www.
franklintempelton.ca
Appendix B – Underlying Funds and Fund Company Information
The underlying funds of the ivari GIPs have been selected to meet the
income and equity mandates of each ivari GIP. In selecting the underlying
funds for each ivari GIP, consideration was given to consistency of
performance, volatility of the underlying fund, the underlying fund manager’s
investment style, strength, history, and risk adjusted performance. Each
underlying fund is grouped by its management company. Copies of the
simplified prospectus and/or audited financial statements for the underlying
funds may be obtained from each mutual fund company by contacting them
directly at their respective address provided below. The investment objective
of the underlying mutual fund may not be changed unless approved by the
unit holders of the underlying mutual fund. Upon such approval, you will be
provided notice of such change.
CI Investments Inc.
ivari CI Conservative Portfolio
Investment ObjectiveThe objective of this portfolio is to earn a reasonable level of income, while also providing the opportunity for
moderate long-term capital appreciation through investment in a diversified portfolio of income and equity based
Investment StrategiesThe portfolio advisor uses strategic asset allocation as the principal investment strategy to create a portfolio
diversified by investment style, asset class and geographic region. This generally includes Canadian equity, U.S.
equity, international equity, Canadian fixed income and global fixed income securities.
In determining the portfolio’s target asset allocations, the portfolio advisor considers, among other factors, each
underlying fund’s investment objective and strategies, past performance and historical volatility in the context of a
diversified holding of underlying funds suitable for the investment objective of the portfolio.
The target asset allocation of the portfolio is 60% income and 40% equity. We may change these targeted mixes
and underlying funds at any time to better achieve the investment objective of each portfolio.
Manager/Advisor CI Investments Inc.
Inception Date
September 2012
ivari CI Balanced Portfolio
Investment ObjectiveThe objective of this portfolio is to provide a reasonable balance between growth and income-oriented
investments, with a slight bias towards growth funds through investment in a diversified portfolio of income and
equity based underlying mutual funds and/or other investments as deemed appropriate by us.
Inception Date
September 2012
111
CI Investments Inc.
continued
ivari CI Canadian Balanced Portfolio
Investment ObjectiveThe objective of this portfolio is to earn a reasonable level of income, while also providing the opportunity for
moderate long-term capital appreciation through investment in a diversified portfolio of income and equity based
Inception Date
September 2012
ivari CI Growth Portfolio
Investment ObjectiveThe objective of this portfolio is to provide long term capital appreciation, through investment in a diversified
portfolio of equity funds, but income oriented funds are of some importance by investing in units of underlying
mutual funds and/or other investments as deemed appropriate by us.
diversified by investment style asset class and geographic region. This generally involves Canadian equity, U.S.
Inception Date
September 2012
ivari CI Maximum Growth Portfolio
Investment ObjectiveThe objective of this portfolio is to provide long-term capital appreciation, through investment in a diversified
portfolio of underlying equity mutual funds and/or other investments as deemed appropriate by us.
equity and international equity securities, as well as high yield corporate bonds.
The target asset allocation of the portfolio is 100% equities. We may change the targeted mixes and underlying
funds at any time to better achieve the investment objective of each portfolio.
Inception Date
112
September 2012
TD Asset Management Inc.
TD Canadian Core Plus Bond Fund
Investment ObjectiveThe fundamental investment objective is to seek to earn a high rate of interest income by investing primarily in
Canadian dollar-dominated, investment-grade debt instruments. The fund may, from time to time, also seek added
value from non- Canadian and/or non-investment- grade debt instruments to enhance total return.
Investment StrategiesThe portfolio advisor seeks to achieve the fundamental investment objective of the fund by focusing on bonds
denominated in Canadian dollars, which may include debt obligations of, or guaranteed by, Canadian federal,
provincial or municipal governments, Canadian corporations, or foreign issuers (Maple bonds). In addition, the fund
may invest in any one or combination of: global investment- and noninvestment-grade bonds, emerging market
debt, debt-like instruments (including investments in loans), and any other debt obligations. The portfolio advisor
believes a strategy using rigorous bottom-up security selection in regard to the macro environment will add value
and enhance long-term performance.
The fund may use specified derivatives, such as options, futures, forward contracts and swaps, as permitted by
Canadian securities laws to, among other things:
• hedge against losses associated with rising interest rates
• gain exposure to fixed income instruments without actually investing in them directly (including when owning the
derivative investment is more efficient or less costly than owning the fixed income instrument itself)
• reduce the risk associated with currency fluctuations
• swap credit risk
The fund may hold money market instruments or cash to meet its obligations under the derivative instruments.
The fund may invest in foreign securities to an extent that will vary from time to time but is not typically expected
to exceed 30% of its assets at the time that foreign securities are purchased.
The fund may engage in securities lending, repurchase or reverse repurchase transactions in a manner
consistent with its investment objectives and as permitted by Canadian securities regulatory authorities. For
more information, see Securities lending, repurchase and reverse repurchase transactions in the TD guide to
understanding the Fund Profile.
TD may change the fund’s investment strategies at its discretion without notice or approval.
Manager/Advisor TD Asset Management Inc.
Inception Date
September 2007
113
continued
Investment ObjectiveThe fundamental investment objective is to provide a high level of after-tax income and steady growth by investing
primarily in high-quality, high-yield equity securities and other income- producing instruments of Canadian issuers.
Investment StrategiesThe portfolio advisor seeks to achieve the fundamental investment objective of the fund by purchasing
predominantly large-capitalization common equities that have either an above-average yield or the prospect of an
attractive low-risk total return. Equity investments will tend to be concentrated in the financial services, pipeline,
and utility sectors of the market, but will also include large-capitalization special situations. Investments in real
estate, trusts , bonds, preferred shares and exchange-traded funds may also be held by the fund.
The fund may use specified derivatives, such as options, futures and forward contracts, as permitted by Canadian
securities laws to, among other things:
• hedge against losses associated with rising interest rates
• gain exposure to fixed income and equity instruments without actually investing in them directly (including
when owning the derivative investment is more efficient or less costly than owning the fixed income or equity
instrument itself)
• reduce the risk associated with currency fluctuations
• enhance income
• provide downside risk protection for one or more securities to which the Fund has exposure
The fund may hold money market instruments or cash to meet its obligations under the derivative instruments.
The fund may invest in foreign securities to an extent that will vary from time to time but is not typically expected
to exceed 30% of it’s assets at the time that foreign securities are purchased.
The fund may engage in securities lending, repurchase or reverse repurchase transactions in a manner
consistent with its investment objectives and as permitted by Canadian securities regulatory authorities. For
more information, see Securities lending, repurchase and reverse repurchase transactions in the TD guide to
understanding the Fund Profile.
114
In some market conditions, the fund may invest a portion of its assets in short-term or other debt securities.
TD may change the fund’s investment strategies at its discretion without notice or approval.
Manager/Advisor TD Asset Management Inc.
Inception Date
September 1987
Underlying Fund Company Information
All the information about the underlying funds, including their investment objectives is based on information provided by the fund companies.
The relationship of these companies to ivari is outlined in the table below.
If you wish a copy of the simplified prospectus and/or financial statements of any of the underlying funds, please contact the appropriate mutual fund
company at the address or phone number listed below.
Investment Management Firm
Address and Phone Number(s)
Relationship to ivari
Is a related company to ivari
Aegon Capital Management Inc.
500 – 5000 Yonge Street
Toronto, Ontario M2N 7J8
1-800-983-6439
Is a related company to ivari
Aegon Fund Management Inc.
500 – 5000 Yonge Street
Toronto, Ontario M2N 7J8
1-866-imaxx-go (462- 9946)
Not related in any way to ivari
CI Investments Inc.
CI Place
2 Queen Street East, 20th Floor
Toronto, Ontario M5C 3G7
1-800-268-9374
Fidelity Investments Canada ULC
483 Bay Street, Suite 200
Toronto, Ontario M5G 2N7
1-800-263-4077
Franklin Templeton Investments
5000 Yonge Street, Suite 900
Toronto, Ontario M2N 0A7
1-800-387-0830 English
1-800-897-7281 French
P.O. Box 100
TD Tower, Toronto-Dominion Centre
Toronto, Ontario M5K 1G8
1-866-222-3456 English
1-800-895-4463 French
1-800-387-2828 Asian
115
Appendix C – Principal Risks of the Funds
The following table lists the principal risks which may be applicable to the underlying investments of the funds. Please refer to “The Risks of Investing in
Segregated Funds” in the Information Folder section 8.1.6 for descriptions of these principal risks.
Segregated Fund
Risks
Cash Risk
ivari
Canadian Money
Market GIF
ivari
Canadian
Bond GIF
ivari
TD Income
Advantage GIF
ivari
Canadian
Balanced GIF
ivari
Canadian
Fixed Pay GIF
*
*
*
*
*
Capital Depreciation
*
*
Commodity
*
Concentration
Credit
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Depository Receipt
Derivative
Emerging Markets
Equity
ETF
*
*
Foreign Currency
*
*
*
*
Foreign Investment
*
*
*
*
*
*
*
*
Income Trust & Limited Partnership
Index
Interest Rate
*
*
*
Large Investor
*
*
*
*
*
Liquidity
*
*
*
*
*
*
*
*
*
*
*
*
*
Low Rate or Unrated Securities
Mortgage-Backed & Asset Backed Securities
*
Multi-Class or Series
*
Municipal Obligation
*
*
*
*
Passive Management
Repurchase & Reverse Repurchase Agreements
*
*
*
*
*
Securities Lending
*
*
*
*
*
Small Fund
Small Company
Specialization
*
Short Selling
*
*
Target-Date
Tax Change
116
*
*
*
Tracking
*
Underlying Fund
*
*
*
*
Appendix C – Principal Risks of the Funds continued
Segregated Fund
Risks
Cash Risk
ivari
ivari
ivari
ivari
Canadian Short- Fidelity Canadian Fidelity Canadian
TD Dividend
Term Bond GIF
Balanced GIF Asset Allocation GIF Balanced GIP
*
ivari
TD Dividend
Income GIF
ivari
Canadian
Equity GIF
*
*
*
*
*
*
*
Commodity
*
*
*
*
Concentration
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Credit
*
Depository Receipt
Derivative
*
Emerging Markets
*
Foreign Currency
Foreign Investment
*
*
Equity
ETF
*
*
Income Trust & Limited
Partnership
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Index
Interest Rate
*
*
*
*
*
*
Large Investor
*
*
*
*
Liquidity
*
*
*
*
*
*
*
*
Mortgage-Backed & Asset Backed
Securities
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Passive Management
Repurchase & Reverse
Repurchase Agreements
*
*
*
*
*
Securities Lending
*
*
*
*
*
Small Fund
Small Company
*
*
*
Specialization
*
*
*
Short Selling
Target-Date
*
*
*
*
Tracking
Tax Change
*
*
*
*
*
Underlying Fund
*
*
*
*
*
117
Segregated Fund
Risks
Cash Risk
ivari
Canadian Large
Cap Index GIF
ivari
U.S. Equity
Index GIF
ivari
Global Growth GIF
ivari
CI Conservative
GIP
ivari
CI Canadian
Balanced GIP
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Commodity
Concentration
Credit
*
*
*
Depository Receipt
Derivative
*
*
Emerging Markets
*
*
*
*
*
*
*
*
Equity
*
*
*
ETF
*
*
*
Foreign Currency
*
Foreign Investment
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Repurchase & Reverse Repurchase Agreements
*
*
*
Securities Lending
*
*
*
*
*
Index
*
*
Interest Rate
*
*
Large Investor
*
*
Liquidity
*
*
Mortgage-Backed & Asset Backed Securities
*
*
*
*
Passive Management
Small Fund
*
*
*
Small Company
*
Specialization
*
Short Selling
*
*
*
*
*
*
*
*
*
Target-Date
Tax Change
*
*
Tracking
*
*
Underlying Fund
118
*
Segregated Fund
ivari
CI Balanced
GIP
ivari
CI Growth
GIP
Cash Risk
*
*
*
Risks
Commodity
ivari
ivari Quotential ivari Quotential
CI Maximum
Balanced
Balanced
Growth GIP
Income GIF
Growth GIF
*
*
*
*
*
ivari
Quotential
Growth GIF
*
*
*
*
*
*
Concentration
Credit
*
*
*
Depository Receipt
*
*
*
Derivative
*
*
*
*
*
*
Emerging Markets
*
*
*
*
*
*
Equity
*
*
*
*
*
*
*
*
*
*
*
*
ETF
Foreign Currency
*
*
*
Foreign Investment
*
*
*
*
*
*
*
*
*
*
*
*
Interest Rate
*
*
*
*
*
*
Large Investor
*
*
*
*
*
*
*
*
*
Index
Liquidity
*
*
*
*
*
*
Mortgage-Backed & Asset Backed
Securities
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Passive Management
Repurchase & Reverse Repurchase
Agreements
*
*
*
*
*
*
Securities Lending
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Small Fund
Small Company
Specialization
Short Selling
Target-Date
Tax Change
*
*
*
*
*
*
Tracking
*
*
*
*
*
*
Underlying Fund
*
*
*
*
*
*
119
Appendix D – ivari Guaranteed Investment Fund Fees
Fund Fees
The following table lists the Fund codes, Annual Fund Management Fee*, the Current Insurance Fee, the Maximum Insurance Fee** and the Management
Expense Ratio***.
ivari GIF Segregated Fund Name
Fund Codes
DSC
ISC
Annual Fund Current Maximum
Management Insurance Insurance
Fee*
Fee
Fee**
Fees do not include applicable taxes
Management
Expense Ratio
(MER)***
Money Market & Fixed Income
TLC1000 TLC1001
1.15%
0.05%
0.55%
0.99%
TLC1002 TLC1003
1.50%
0.20%
0.70%
2.27%
TLC1056 TLC1057
2.10%
0.30%
0.80%
3.07%
TLC1100 TLC1101
1.25%
0.10%
0.60%
1.92%
TLC1004 TLC1005
1.80%
0.55%
1.05%
2.98%
TLC1012 TLC1013
2.05%
0.70%
1.20%
3.40%
TLC1086 TLC1087
2.10%
0.60%
1.10%
3.41%
TLC1092 TLC1093
2.15%
0.60%
1.10%
3.48%
TLC1058 TLC1059
2.10%
0.40%
0.90%
3.14%
TLC1062 TLC1063
2.10%
0.70%
1.20%
3.45%
TLC1014 TLC1015
2.00%
0.80%
1.30%
3.50%
TLC1024 TLC1025
1.90%
0.85%
1.35%
3.46%
TLC1026 TLC1027
1.90%
0.85%
1.35%
3.46%
TLC1028 TLC1029
1.92%
0.90%
1.40%
3.52%
TLC1040 TLC1041
2.10%
0.40%
0.90%
3.09%
TLC1042 TLC1043
2.10%
0.45%
0.95%
3.20%
TLC1044 TLC1045
2.20%
0.55%
1.05%
3.39%
ivari CI Growth GIP
TLC1046 TLC1047
2.20%
0.60%
1.10%
3.50%
TLC1048 TLC1049
2.25%
0.80%
1.30%
3.76%
TLC1064 TLC1065
2.18%
0.50%
1.00%
3.31%
TLC1066 TLC1067
2.18%
0.55%
1.05%
3.34%
TLC1070 TLC1071
2.18%
0.60%
1.10%
3.39%
Canadian Balanced
Canadian Equity
U.S. Equity
Global Equity
Asset Allocation Portfolios
* Subject to the fundamental change rule we may change the management fee for any fund by sending you written notice of the change at least 60 days in
advance. Please see section 14.2 Fundamental Changes and Other Changes of the Information Folder for more information.
** We may change the insurance fee amount of a fund up to the maximum insurance fee of the fund without prior notification. We will let you know annually if any
such increase occurs. If the maximum insurance fee of the fund is increased, we will provide you with at least 60 days advance notice and you will have the
rights outlined under section 14.2 Fundamental Changes and Other Changes of the Information Folder.
*** M
anagement expense ratios are based on the December 31, 2014 values and are compromised of the current management fee, the current insurance fee, the
previous year’s actual annualized operating expenses including applicable taxes. MERs for 2015 will be available on our website (www.ivari .ca) or upon request
when the 2015 annual financial statements are published.
120
NOTES
NOTES
Any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or
decrease in value.
500-5000 Yonge Street, Toronto, ON M2N 7J8 • Telephone: 1-800-846-5970 • Fax: 1-800-661-7296
TM
ivari and the ivari logos are trademarks of ivari Canada ULC. ivari is licensed to use such marks.
www.ivari.ca
IP1300 9/15

Information Folder

Transcription

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