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issued by Transamerica Life Canada
Advisor’s Guide
managed by CI Investments Inc. issued by Transamerica Life Canada
CI GIF Funds &Portfolios
Table of Contents1 CI Guaranteed Investment Funds®
2 Fund Features and Benefits
4 CI GIF Funds & Portfolios
5 CI GIF Portfolios
7 Underlying Funds
8 Building your Business
9 Experience. Strength. Diversity.
How CI GIFs WorkCI Guaranteed Investment Funds (GIFs), also known as segregated funds, are mutual funds “wrapped” inside an insurance contract (known as an individual variableinsurance contract). As a result, they combine the invest-ment advantages of mutual funds – potential for growth,professional money management, diversification, choiceand flexibility – with the protective features of insuranceprovided by Transamerica Life Canada.
The market value of the segregated fund contract fluctuates with the value of the underlying mutual fund.However, the guarantees offered by segregated fundsensure that an investor’s initial deposits are protected –after 10 years (maturity benefit) or on the death of the person whose life is being insured (death benefit). Thelevel of protection is set out in the contract.
Segregated funds are considered an insurance productand can be sold only by life-licensed advisors. This statusas an insurance product allows for the guarantees andother benefits – all of which can make CI GIFs extremelyvaluable for many investors.
Meeting Client NeedsSince its launch in early 1999, the CI GuaranteedInvestment Funds program has provided investors withboth protection and growth potential.
Why? Access to CI’s world-reknowned investment expertiseand the choice of four CI GIF Portfolios or individualGIFs to allow you to tailor an investment plan to meetyour client’s needs.
CI GIFs offer the following:
• A choice of four CI Guaranteed Investment FundPortfolios.
• A choice of maturity benefits on selected funds, givingyou and your clients the flexibility to choose the com-bination of protection and price that best suits theirneeds: Class A, with guarantees* of 100% at maturityand 100% at death; and Class B, with guarantees* of75% at maturity and 100% at death.*less proportionate market value reduction for withdrawalsand fees.
CI GIF Portfolios Offer your clients the benefits of a fully diversified segregated fund portfolio in one investment with the CIGuaranteed Investment Funds Portfolios. Choose fromfour portfolios, ranging from Conservative to AggressiveGrowth. The CI GIF Portfolios offer asset allocation,greater diversification, the likelihood of reduced volatility,and the potential to maximize returns for a given level ofrisk. The increased diversification of the Portfolios alsohelps your clients minimize insurance costs.
Individual GIFsCI offers a choice of nine Guaranteed Investment Funds representing different asset classes and investmentstyles – giving you the option of creating a diversified and customized Guaranteed Investment Fund mix foryour clients.
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CIGuaranteed InvestmentFunds®
Guarantees Available
Class A units100% deposit maturity guarantee Upon deposit maturity, the policyholder is entitled toreceive the greater of 100% of the Benefit DeterminationAmount (net deposits less proportionate market valuereductions for withdrawals and fees) or the market valueof the deposit less applicable fees.
100% death guarantee On death of the annuitant, the designated beneficiary is entitled to receive the greater of 100% of the DeathBenefit Determination Amount (less proportionate market value reductions for withdrawals and fees) or the market value less applicable fees.
Class B units75% deposit maturity guarantee Upon deposit maturity, the policyholder is entitled toreceive the greater of 75% of the Benefit DeterminationAmount (net deposits less proportionate market valuereductions for withdrawals and fees) or the market valueof the deposit less applicable fees.
100% death guarantee On death of the annuitant, the designated beneficiary is entitled to receive the greater of 100% of the DeathBenefit Determination Amount (less proportionate market value reductions for withdrawals and fees) or the market value less applicable fees.
The guarantees remain the key benefit of CI GuaranteedInvestment Funds:
• They allow people to invest with peace of mind,knowing that their initial investment is fully protectedat death, and 100% or 75% protected at maturity,depending on the class they choose.
• This encourages policyholders to stay investedthrough market fluctuations, and gives conservativeinvestors the confidence to add equities to their portfolios.
• The 75% maturity guarantee allows investors to benefit from lower insurance costs.
Estate Planning AdvantagesCI GIFs are powerful estate planning tools. Here’s howthey can help your clients:
• The death benefit preserves their investments fortheir beneficiaries.
• The death benefit is paid directly to the named beneficiaries quickly and efficiently, avoiding potentialdelays in settling an estate.
• When there is a named beneficiary, the benefit maybypass probate fees.
Automatic Reset for Death Benefit GuaranteesOn the anniversary date of your policy, CI will automati-cally reset the death benefit guarantee to the greater of:
• The current market value of your deposit; or• The existing Death Benefit Determination Amount
(less proportionate reduction for withdrawals).
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Fund Featuresand Benefits
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Creditor ProtectionIn certain circumstances, the assets held inside CI GIFsmay be protected from creditors. (It is essential thatinvestors obtain the professional opinion of a lawyer oraccountant in determining the applicability and effective-ness of this feature for them.) This feature:
• May allow small business owners, entrepreneurs, professionals and other investors to shield their assets from creditors, preserving their savings forthemselves and their families.
SwitchesCI offers your clients a high degree of flexibility in adapting their portfolios to changing circumstancesthrough the following switching options:
• From Class A GIF Units to Class B GIF Units.• Between CI GIFs and CI GIF Portfolios.• Between CI GIFs and CI mutual funds. (Please note
that a switch from a CI GIF to a CI mutual fund wouldbe an actual disposition of the fund and/or contractfor tax purposes.)
CI GIF PortfoliosThe CI Guaranteed Investment Fund Portfolios invest in underlying CI mutual funds to achieve four asset allocations ranging from Conservative to AggressiveGrowth. The Portfolios offer:
• The ability to tailor a segregated fund investment toan investor’s risk profile.
• Simplicity and convenience of achieving asset allocation through one fund purchase.
• Diversification by asset class, geographical area, portfolio manager and investment approach, leadingto reduced volatility.
• Lower insurance fees compared to a similar portfolioof individual segregated funds.
For more details on the CI Guaranteed Investment FundPortfolios, please see pages 5-7.
CI’s Investment ExpertiseThe CI GIF lineup offers:
• Professional investment management.• A selection of funds allowing for a fully diversified
guaranteed portfolio, including diversification byasset class, geographic region and investment style.
• Suitability for both RSP and non-RSP portfolios.
Transamerica’s Financial StrengthThe CI GIF policies are underwritten by TransamericaLife Canada, a member of the AEGON Group, one ofthe largest financial services organizations in the world. InCanada, Transamerica is an established leader in buildingand protecting the financial future of thousands ofCanadians and is one of the few life insurers to earn topratings from independent rating agencies such as A.M.Best, Fitch and Standard & Poor’s.
For more information on the underlying CI mutual funds, please visit the Advisor Online section of the CI website at www.ci.com or call our marketing department at 1-800-268-9374.
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Class A - 100% maturity/100% death benefit guarantee option
CI Money Market GIF
CI Conservative Portfolio GIF
CI Moderate Portfolio GIF
CI Growth Portfolio GIF
Class B - 75% maturity/100% death benefit guarantee option
CI GIFs
CI Harbour GIF
CI Harbour Growth & Income GIF
CI International Balanced GIF
CI Signature Canadian Balanced GIF
CI Signature Select Canadian GIF
CI Money Market GIF
CI Signature Dividend GIF
CI Canadian Bond GIF
CI Signature High Income GIF
CI GIF Port folios
CI Conservative Portfolio GIF
CI Moderate Portfolio GIF
CI Growth Portfolio GIF
CI Aggressive Growth Portfolio GIF
Available Funds
CI GIF Funds& Portfolios
Achieving a Balance of Risk and Reward…Asset allocation is a critical part of successful investing.Ultimately, proper asset allocation should deliver maxi-mum returns for an investor’s given financial objectivesand tolerance for risk.
Now you can offer your clients the benefits of strategicasset allocation within the CI GIF program. The programincludes four CI GIF Portfolios with asset allocationsranging from a conservative mix of income and equitysecurities to an aggressive growth with 100% equity mix.
CI also recognizes the value of additional diversification bygeographical region and by investment management style.As a result, the CI GIF Portfolios invest in a diverse lineupof CI mutual funds, representing Canadian and foreignincome and equity securities, as well as investmentapproaches of value, growth and momentum.
Overall, the CI GIF Portfolios offer these benefits:
• The ability to tailor a segregated fund investment to a client’s risk profile.
• Diversification by asset class and geographical area, aswell as by portfolio management team and investmentapproach.
• Reduced volatility through increased diversification.• Relatively lower insurance costs compared with a
similar portfolio of individual funds.• Access to underlying CI mutual funds not otherwise
available in the GIF program.
• Simplicity and convenience of achieving asset allocation through one fund purchase.
• Regular fund rebalancing to maintain the appropriateasset allocation.
How they WorkThe funds achieve their asset allocation through invest-ments in up to 16 CI mutual funds. CI has created eachportfolio with the goal of achieving the optimal mix of asset classes, Canadian and foreign securities, andinvestment approaches for each overall investment objective:
CI will monitor the CI GIF Portfolios to ensure they continue to adhere to their target asset allocations.
Please see the following two pages for the target asset allocation of each portfolio and for a complete list ofunderlying funds.
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CI GIF Portfolios
Conservative45% equities / 55% income
Moderate 65% equities / 35% income
Growth 75% equities / 25% income
Aggressive Growth100% equities
Best suited for investors whose primary objectiveis capital preservation with some growth. Theportfolio maintains a large weighting of incomesecurities to limit investors’ risk exposure toequities.
For investors pursuing higher returns whileremaining conscious of risk. The portfolio has a greater equity weighting, while curbing riskvia exposure to income.
Optimal for investors wanting maximum gains,with less concern for risk. The portfolio main-tains a large exposure to U.S. and internationalequities.
For the aggressive investor. Constructed to pro-vide maximum expected returns in the longterm, along with higher volatility in the shortterm. This portfolio has a significant exposureto U.S. and international equities.
55%
16%
9%
20%
Conservative Portfolio
26%
35%
15%
24%
Moderate Portfolio
25%
26%
31%
18%
Growth Portfolio
40%
35%
25%
Aggressive Growth Portfolio
RiskRetu
rn
Efficient Frontier
RiskRetu
rn
Efficient Frontier
RiskRetu
rn
Efficient Frontier
RiskRetu
rn
Efficient Frontier
Income Canadian Equity U.S. Equity International Equity
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CI GIF Portfolios cont’d
Underlying FundsConservative Moderate Growth Aggressive
Growth
24%
12%
18%
6%
6%
6%
–
6%
–
3%
–
5%
3%
3%
3%
5%
100%
16%
8%
12%
4%
8%
9%
4%
5%
–
4%
4%
5%
4%
4%
6%
7%
100%
15%
6%
9%
–
10%
10%
5%
4%
3%
4%
5%
5%
4%
4%
7%
9%
100%
–
–
–
–
14%
15%
7%
7%
5%
6%
6%
7%
6%
5%
10%
12%
100%
CI Canadian Bond
Signature Corporate Bond
Signature High Income
CI Global Bond
Signature Select Canadian
CI Canadian Investment
Harbour
Synergy Canadian Corporate Class
CI Canadian Small/Mid Cap
CI American Equity
CI American Managers® Corporate Class
CI American Value Corporate Class
Synergy American
CI American Small Companies
CI International
CI International Value
CI GIF Por tfolios
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Underlying Funds
Strategies to Help Your Clients
Entrepreneurs and Small Business Owners CI GIFs offer the potential to protect assets from creditors,an invaluable option for entrepreneurs, business ownersand professionals. Consultation with a lawyer or accountantis strongly recommended.
Conservative Investors The guarantees of CI GIFs can give conservative investorsthe confidence to add a greater proportion of equities to their portfolios. After all, with today’s extended lifespans, most investors will need the superior long-termgrowth of equity funds to support their standard of livingin retirement.
Segregated funds can also be used to create an alternativeto index-linked GICs, allowing investors to benefit from a more aggressive portfolio while maintaining a conserva-tive risk structure. For example, put half of the portfolio ina 10-year GIC and half in a CI GIF. The portfolio yieldwill be a minimum of 2.5% if the GIC rate is 5%, but thereturns are likely to be higher. Meanwhile, the entireportfolio benefits from guarantees.
RRIF Investors Buy a non-registered CI GIF with borrowed money and use the RRIF income to pay the loan interest. Theinterest can be written off against the income, effectivelyallowing the investment to continue to grow on a tax-deferred basis.
Investors Concerned with Estate Planning CI GIFs can be used a number of ways to help yourclients in estate planning. The death benefit ensures theirassets are preserved. The fact that GIFs are an insuranceproduct means that the proceeds may be exempt fromprobate fees (when there is a named beneficiary), whichcan potentially save thousands of dollars. This also ensuresthat benefits are paid out quickly to the beneficiary.
Investors who are concerned about their assets being tiedup in an estate settlement could, over time, sell holdingssuch as stocks and real estate and invest in CI GIFs.
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Building your
Business
CI Investments has been investing on behalf of Canadians since 1965. Today, we have grown
to become one of Canada’s largest fund companies, managing $50 billion in assets. Two million
Canadians have placed their trust in CI to help them achieve their financial goals.
Our commitment to excellence and innovation drives our service to investors and financial profes-
sionals. We offer the industry’s broadest selection of funds and a wide choice of leading portfolio
managers. CI is proud to partner with financial advisors across Canada, who offer our funds to their
clients. CI is a corporation controlled by CI Financial Income Fund, an income trust listed on the
Toronto Stock Exchange under the symbol CIX.UN.
For more information on CI, please visit us online at www.ci.com.
Transamerica Life Canada is a member of the AEGON Group, one of the largest financial
services organization in the world. Based in the Netherlands, it has major company operations in
Hungary, Spain, and the United Kingdom in addition to the Netherlands and the Americas.
In Canada, Transamerica is an established leader in building and protecting the financial future of
thousands of Canadians. Transamerica Life Canada is one of the few life insurers to earn top ratings
from independent rating agencies such as A.M. Best, Fitch and Standard & Poor’s.
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Experience.Strength. Diversity.
managed by CI Investments Inc. issued by Transamerica Life Canada
FOR ADVISOR USE ONLY CITA-AG 08/06 E
Transamerica Life Canada is the sole issuer of the individual variable insurance contract providing for investment in CI GuaranteedInvestment Funds. A description of the key features of the individual variable insurance contract is contained in the CI GuaranteedInvestment Funds Information Folder. SUBJECT TO ANY APPLICABLE DEATH AND MATURITY GUARANTEE, ANY PART OF THE PREMI-UM OR OTHER AMOUNT THAT IS ALLOCATED TO A SEGREGATED FUND IS INVESTED AT THE RISK OF THE OWNER AND MAYINCREASE OR DECREASE IN VALUE ACCORDING TO FLUCTUATIONS IN THE MARKET VALUE OF THE ASSETS OF THE SEGREGATEDFUND. ®CI Investments, the CI Investments design, CI Guaranteed Investment Funds and the lock design are registered trademarks ofCI Investments Inc. ®TRANSAMERICA is a registered trademark of Transamerica Corporation. Transamerica Life Canada is licensed touse such marks. Transamerica Life Canada is registered to carry on business under the name “Transamerica Life Canada”.
Head Office2 Queen Street East, Twentieth FloorToronto, Ontario M5C 3G7Tel: 416-364-1145Toll Free: 1-800-268-9374English Client Services Team: 1-800-563-5181French Client Services Team: 1-800-668-3528
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