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People are living longer

The number of persons aged 85 and older has doubled since 20011, and this number is only projected to increase over the coming years. With this in mind, portfolio longevity is becoming a greater problem for retirees.

Making your money last is vital in covering the increasing cost of living and health expenses that come with age. It is becoming more important than ever in retirement planning to ensure your financial future is safe and secured.

GuardPath™ Modern Tontine is Designed Specifically to Address Human Longevity

The first investment solution of its kind in Canada seeking to deliver financial security to retirees in their later years of life, which aims to provide significant lump-sum payouts to surviving unitholders in 20 years based on compound growth and the pooling of survivorship credits. Investors must be born between January 1, 1957 and December 31, 1961 to be eligible to purchase.

Using our interactive calculator below, input your initial investment amount to get an estimate of your potential tontine payout in 20 years. Or, plug in a targeted payout number to see an estimate of how much you might need to invest today.

Simulated Model Example – For Illustrative Purposes Only
The graph above shows the potential total amount of distributions received from GuardPath Managed Decumulation Fund, based on the assumptions for Series F units, as outlined in the prospectus. This illustration is not representative of any particular investor’s experience, please refer to the Risks and Assumptions below.

Key Features & Highlights

Longevity payout

Aims to provide significant lump-sum payouts in 20 years to all surviving unitholders, intended to hedge against the risk of retirees outliving their capital.

Focused on capital appreciation

This solution employs dynamic asset allocation that seeks to grow the capital base in order to maximize longevity payouts, benefitting from long-term compound growth and the unique inclusion of survivorship credits.

Experienced institutional management

Guardian Capital LP's highly sought-after institutional strategies and highly experienced, global portfolio management teams serve as the foundation of the underlying investments.

Sample Use Case

Eligible for investors born between January 1,1957 and December 31, 1961.

Augmenting a Balanced Portfolio
Tina Picture
Tina is a 65-year-old woman who has a $1 million balanced investment portfolio. She wants to withdraw approximately $60,000 per year to help fund her expenses in retirement and she also wants to maximize the likelihood that she doesn't outlive her nest egg.

See how Tina could extend her portfolio longevity using GuardPath™ Longevity Solutions.
View Case Study (PDF)

Turning 5% into a Tax-Free 20%
Daniel Picture
Daniel is a healthy 65-year-old with a balanced investment portfolio consisting of 40% equities and 60% fixed income. He plans to withdraw $40,000 per year from the portfolio, but he’d like to better protect himself against the risk of outliving his assets.

See how Daniel can improve his outcomes with the GuardPath™ Modern Tontine.

View Case Study (PDF)

How our Modern Tontine Works

With the GuardPath™ Modern Tontine, investors concerned about outliving their nest egg pool together their assets and agree to receive significant payouts in 20 years.

Over the 20-year period, we seek to manage and grow the capital base as much as possible in order to maximize the longevity payout.

Investors that redeem early or pass away leave a portion of their assets in the pool to the benefit of surviving unitholders, providing additional protection against longevity risk. All surviving unitholders in 20 years will fully participate in the lump sum payouts, which can be used to fund their later years of life.

Partnership with world-renowned retirement finance expert, Professor Moshe A. Milevsky, PhD

Recognized globally for his thought leadership in both retirement longevity and tontines, Moshe brings a wealth of knowledge to the Guardian team. As Chief Retirement Architect in collaboration with Guardian Capital LP, he has helped structure GuardPath™ Longevity Solutions to address the real challenges faced by retirees.

Who is Moshe Milevsky?

Fund Codes & Details

Speak to your Financial Advisor about how these innovative solutions may be incorporated into your broader retirement portfolio.

Fund Name Fund Code Series Management Fee
GuardPath™ Modern Tontine 2042 Trust GMF 300 A 1.60%
GuardPath™ Modern Tontine 2042 Trust GMF 301 F 0.60%

1. Statistics Canada, Population Projections for Canada (2018-2068), Section 2 - Results at the Canada level, Fig. 2.5, September 2019

2. Payments from the Modern Tontine Trust are tied to the life of the unitholder and, accordingly, people with serious or life-threatening health issues should not invest in the Modern Tontine Trust, as the amount that a unitholder will receive upon redemption (either voluntary or upon death) prior to the lump-sum payout in year 20, will be lower than the then current NAV per unit, as more fully detailed in the prospectus.

Assumptions and Risks related to the Tontine Model:
The model forecast above has been prepared for illustrative purposes only, to help show the potential total amount of distributions for investors.
This model was created based on various assumptions, and there is no guarantee that these same results will be achieved by investors. The use of hypothetical, simulated returns comes with inherent risks and limitations. Simulated returns are not the returns of any particular investor, account or portfolio; they are produced with the benefit of hindsight through the application of a model. No representation is being made that any investor will, or is likely, to achieve gains or losses similar to those illustrated. Please consider these and other factors carefully and do not place undue reliance on forward-looking information. This illustration is not intended to represent the distribution experience of any particular investor, and is based on the following assumptions:

What assumptions were used when modelling GuardPath™ Modern Tontine Trust

Series A & F: Assumes 6.92% continuously compounded net asset returns; mortality related redemptions as set out within the CPM-14B Mortality Tables; an investor with an average initial age of 64; and 2% of Unitholders voluntarily redeeming per annum. A mortality table is a table prepared by actuaries that shows the rate of deaths occurring in a defined population over a particular time period. Based on a mortality table, it is possible to calculate the probability of a person’s death based on their age. CPM-14B, used by the Tontine Trust to prepare the graphs below, is a mortality table issued in 2014 by the Canadian Society of Actuaries based on Canadian pensioner mortality experience. The CPM-14B table is widely used by pension plans in Canada to estimate the financial exposure that is associated with their obligations or assumed under the products they market and sell. As it relies on the experience of pensioners, who tend to outlive non-pensioners, the CPM-14B table is generally viewed as a more conservative presentation of life expectancies than the standard Canadian mortality table.

In addition to investment risks, the long-term total return of the Tontine Trust is impacted by actual redemption rates (either voluntary or upon death) by Unitholders of the Tontine Trust. Total returns may decline if mortality rates or voluntary redemptions decline and may increase if mortality rates or voluntary redemptions increase. To the extent Unitholders live longer than predicted by the mortality table, the rate of growth of a series’ NAV per Unit and the amount of distributions that would otherwise have been paid on the Units will be reduced. No assurance can be given that the mortality experience of the Tontine Trust will conform to that reflected in the CPM-14B mortality table underlying the modelled return information.

Series A units of the Modern Tontine Trust are also available, but have different management fees due to the trailer fee commission, and performance may be lower as a result. Please read the prospectus for complete details.

Unlike traditional mutual funds or exchange traded funds (“ETFs”), the GuardPath Longevity Solutions are unique investment fund structures and investors should carefully consider whether his or her financial condition and investment objectives are aligned with these retirement-focused investments. The Units may be suitable for an investor primarily concerned about having sufficient income in retirement, especially in the later years of their life. The Units may not be suitable for an investor whose primary objective is to leave capital behind for their estate. The GuardPath Longevity Solutions are not insurance companies, the units are not insurance or annuity contracts and unitholders will not have the protections of insurance laws. Distributions provided by the GuardPath Longevity Solutions are not guaranteed or backed by an insurance company or any third party. The long-term total return and the sustainability of the rate of distributions of the GuardPath Managed Decumulation Fund may be impacted by volatility and sequence of returns risk. Payments from the GuardPath Modern Tontine Trust are tied to the life of the unitholder and, accordingly, people with serious or life-threatening health issues should not invest in the GuardPath Modern Tontine Trust, as the amount that a unitholder will receive upon redemption (either voluntary or upon death) will be lower than the then current NAV per unit, as detailed in the prospectus. The long-term total return of the GuardPath Modern Tontine Trust will be impacted by actual redemption rates, and may increase or decline as mortality rates or voluntary redemptions increase or decline. This is not a complete list of the risks associated with an investment in these GuardPath Longevity Solutions. Please read the prospectus before investing. Please read the prospectus for complete details.

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