Segregated Fund

Definition

  • A professionally-managed investment vehicle similar to a mutual fund that provides investors maturity and death guarantees. Segregated funds, or seg funds as they are commonly referred, are only available in Canada and are considered insurance products. Much like mutual funds, investment funds are pooled and invested in securities such as stocks, bonds, or debts, but as required by federal law, these funds are segregated (kept separate) from the insurance company's general investment funds.

Synonyms
separate account, seg fund

Related Terms and Acronyms

  • Asset Definition,
    • Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
  • Bond Definition,
    • A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
  • Closed-end Fund Definition,
    • A mutual fund with shares initially sold to investors through an IPO; afterwards, the fund is listed on a stock exchange to be bought and sold.
  • Investment Definition,
    • Something you put your money into in order to make money.
  • Investment Income Definition,
    • Income that is earned from investments such as interest, dividends, and capital gains.
  • Irrevocable Definition,
    • Unalterable.
  • Irrevocable Beneficiary Definition,
    • A life insurance or segregated fund beneficiary whose benefit cannot be revoked or modified in any way without his or her consent.
  • Issuer Definition,
    • A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
  • Life Insurance Definition, Very Important,
    • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
    CanEquity offers life insurance.
  • Maturity Guarantee Definition,
    • A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
  • Money Market Account (MMA) Acronym,
    • A bank account that restricts the type and number of withdrawals. The account also earns interest similar to money market funds.
  • Money Market Fund (MMF) Acronym, Important,
    • Mutual funds that invest in short-term debts or securities.
  • Money Market Mutual Fund (MMMF) Acronym,
    • A mutual fund that invests in short-term debt instruments such as Treasury bills, commercial paper, and large CDs. Also referred to as money market fund (MMF).
  • Mutual Fund Definition,
    • A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
  • Open-end Fund Definition,
    • A mutual fund that allows investors to buy or sell shares in the fund at their net asset value each business day.
  • Portfolio Definition,
    • A collection of investments.
  • Protected Cell Company (SPC) Acronym,
    • A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
  • Protected Fund Definition,
    • A mutual fund that guarantees investors a return on their investments.
  • Securities/Investment Dealer Definition,
    • One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.
  • Security Definition,
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • Property designated as collateral.
    • A document stating ownership of a stock or bond.
  • Stock Definition,
    • A share of the ownership of a company.
  • Stock Insurance Company Definition,
    • An insurance company with multiple stockholders each owning shares in the corporation.
  • Variable Life Insurance (VLI) Acronym,
    • Life insurance that provides the policyholder the option to place some of his or her premiums into the insurer's investment portfolio, providing beneficiaries with a variable death benefit.
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