Riscario

Before you buy a segregated fund, your advisor must give you the following

• information folder
• summary fact statement
• financial statements

and you will sign a receipt to acknowledge that you have received this information

(In contrast, with a mutual fund you are deemed to have received a prospectus after it has been mailed to you. No proof of receipt is needed.)

Information Folder

• like a prospectus for mutual funds
• key document
• describes the policy contract
• your advisor must give you one and get your signed acknowledgment
• includes
  • audited financial statements
  • notes to the audited financial statements
  • identification of guaranteed benefits and nonguaranteed benefits
  • that benefits fluctuate
  • charges on withdrawals
  • how benefits are determined
  • tax status of the segregated fund and policyowners ("contractholders"_
  • management fees, …

Summary Fact Statement

• like a simplified prospectus for mutual funds
• snapshot of the fund, including
  • historical performance
  • investment policies
  • three largest single holdings (though more are often included)
• updates sent regularly (e.g., semiannually)

Financial Statements

• included in the Information Folder at the time of purchase
• must be current and audited
• updated sent annually