BMO Financial Group

BMO Financial Group
BMO Insurance

December 02, 2013 13:15 ET

BMO Insurance Launches New Guaranteed Investment Funds

New funds offer maturity guarantee on principal with automatic monthly resets to lock in gains, balanced ETF investment options and death benefit guarantee

TORONTO, ONTARIO--(Marketwired - Dec. 2, 2013) - BMO Insurance today introduced BMO Guaranteed Investment Funds (GIFs) - segregated funds which are designed to help Canadians reach their retirement saving goals while protecting their hard-earned dollars.

The funds are an ideal choice for pre-retirees and retirees who seek to accumulate wealth for retirement by investing in the market while benefitting from deposit guarantees which provide market downside protection. Deposit guarantees are effective on a future "maturity date" selected by the client (15 to 25 years) or on the death of the annuitant.

"We've introduced these new funds for investors who are looking to invest in the market to meet their retirement saving goals while limiting their investment risk," said Peter McCarthy, President & CEO, BMO Insurance. "They're a reflection of our ongoing commitment to meeting the diverse needs of investors and broadening the range of wealth management services available to them."

BMO GIFs have key differentiating features that together make them unlike other segregated funds existing in the market. In addition to guarantees on the principal of up to 100 per cent upon maturity and death, the client's "maturity guarantee amount" is reset automatically every month, which can increase the amount payable upon the maturity date.1 This feature effectively locks in the client's market gains for the future.

The five new BMO GIFs include both balanced exchange traded funds (ETFs) and money market investment options. These include:

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

For portfolio management, BMO Insurance partnered with BMO Asset Management, one of Canada's leading and fastest growing issuers of ETFs with over $11 billion in ETF managed assets. The Canadian and U.S. Balanced Growth Funds offer broad exposure to S&P/TSX or S&P500 stock markets. The Canadian and North American Income Strategy Funds invest in Canadian or both Canadian and U.S. income-generating securities - including dividend-paying common stocks, preferred shares and income trusts. All funds are balanced with high-quality Canadian fixed income securities or cash equivalents. The value-added is BMO Volatility Control™ - a systematic asset allocation strategy designed to even out the volatility of fund returns, which reduces equity exposure and increases fixed income holdings during periods of above average market volatility.

Other valuable benefits of these segregated funds include potential creditor protection and the ability to bypass probate so the death benefit proceeds can be quickly and cost-efficiently paid directly to a named beneficiary instead of your estate.2 3

BMO Life Assurance Company is the sole issuer and guarantor of the BMO GIF individual variable insurance contract. Any amount that is allocated to a segregated fund is invested at the risk of the policy owner and may increase or decrease in value.

For more information on the new funds and BMO Insurance, please visit

Get the latest BMO press releases via Twitter by following @BMOmedia.

1 Maturity Guarantee Amount at the Maturity Date: 100% on deposits made at least 15 years and 75% on deposits made less than 15 years from the Maturity Date, less a proportionate amount for withdrawals.
Death Guarantee Amount: 100% on deposits made before the Annuitant is age 75 and 75% on deposits made on or after age 75, less a proportionate amount for withdrawals. Automatic monthly resets of the Maturity Guarantee Amount occur up to and including 10 years from the Maturity Date.
2 Probate costs can include probate and executor fees, as well as legal and accounting fees. Probate fees may not apply in Quebec.
3 Creditor Protection rules depend on legislation and vary by province. It cannot be guaranteed. Please consult a legal advisor for your specific situation.

Contact Information