BPI OFFERS SEGREGATED FUNDS
By Adnews Staff
BPI Mutual Funds of Toronto has joined forces with Transamerica Life Insurance Company of Canada to launch a new family of segregated funds. Under the deal, BPI will provide investment management while Transamerica will sell the funds. Called BPI Legacy Funds, there are 11 products in the line which became available last week. The Legacy Funds will be promoted using radio and print ads targeting people aged 50 and over. The campaign will be created by Simpson Gilbert Chambers of Sackville, New Brunswick. The funds have a maturity guarantee and a death benefit guarantee. The estate planning benefit allows the investor to name a beneficiary. If the investor dies, the benefits will be paid directly to the beneficiary to avoid probate fees. In addition, the funds offer potential protection from creditors if the investor goes bankrupt. BPI president and CEO James McGovern told Adnews last week that segregated funds account for 10% of the investment market. Because they are tied to life insurance, they are targeted to people over the age of 50, as well as to those who are too nervous to invest in stock or mutual funds. They are also geared to people who are self-employed because of the potential of creditor protection. A recent survey done by the Angus Reid Group found that less than one in 10 investors were familiar with segregated funds.