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VIEWPOINT

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WESTWARD’S VIEW

The opinions expressed in this memorandum are strictly those of Westward Advisors Ltd. This memorandum is for information purposes only and is not legal or tax advice.

HIGHER LONG TERM RETURNS
The SRDA targets a higher long term return than the SRIA by investing the underlying fund in an actively managed diversified portfolio that balances risk with greater growth potential. The SRDA applies a smoothing formula to the actual returns of the underlying fund when setting the guaranteed SRDA interest rate each calendar year.

 

MARKET VALUE ADJUSTMENT
iA declares an MVA Factor % on a weekly basis to reflect any shortfall in the market value of the underlying fund as compared to the aggregate SRDA account values in the Genesis policies. The MVA Factor % is a charge applied to the amount withdrawn from the SRDA or transferred to another investment account, but is not applicable to a death benefit or when used to pay policy insurance charges.

COLLATERAL LOANS AND LENDER PROTECTION

A does not accept the SRDA as security for their own iA Collateral Loan Facility, but the SRDA can be used as security for collateral loans from other lenders.
To help protect lenders against an MVA, iA will waive up to 5% of any MVA when the lender has demanded loan repayment and the surrender value is insufficient to repay the loan. This lender protection is generally available until the 12th policy anniversary, after which the Tax Refund benefit should provide similar protection.

TRANSFERS FROM SRIA TO SRDA
iA is waiving the transfer charge that would otherwise apply to a transfer of funds from the SRIA to the SRDA.

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