Guardian Capital LP aims to revolutionize retirement with first-of-their-kind solutions, including a uniquely modern tontine
GuardPathTM Longevity Solutions, created in partnership with Professor Moshe A. Milevsky, PhD, are designed to address what Nobel Laureate Economist William Sharpe has described as the “nastiest, hardest problem in finance” 1
TORONTO, September 7, 2022 – Today, Guardian Capital LP (Guardian Capital) took a ground-breaking step, aiming to solve the misalignment between human and portfolio longevity with the launch of GuardPathTM Longevity Solutions.
Professor Milevsky, recognized globally for his thought leadership in both retirement and portfolio longevity, played an instrumental role in building these solutions, which seek to ensure retirees have enough income to meet their current needs while not outliving their nest egg.
As the author of 17 books (including his most recent: How to Build a Modern Tontine) and over 66 peer-reviewed papers and hundreds of articles, Professor Milevsky’s expertise was essential to designing this transformational suite of investment solutions for Canadian investors, which strive to alleviate the widespread fear of running out of money in retirement.
“I’m so proud to be part of these made-in-Canada solutions, which address the biggest risks facing retirees and are among the first of their kind globally,” says Professor Milevsky. “Based on hundreds of years of research and improvement and backed by Guardian Capital’s 60-year reputation for doing what’s right for Canadian investors, I am confident these solutions will revolutionize the retirement space.”
The Solutions
“For too many years, Canadian retirees have feared outliving the nest egg they have worked so hard to create,” said Barry Gordon, Managing Director, Head of Canadian Retail Asset Management, Guardian Capital. “GuardPathTM Longevity Solutions are our answer to that concern. We have created three unique, innovative solutions to help investors choose the option that fits them best. We designed these solutions from their point of view and aim to alleviate their greatest financial fears.”
To do so, Guardian Capital needed to look to the future while leveraging the past. This meant creating a uniquely modern approach to the tontine, which, for hundreds of years, was one of the most popular financial products for individuals who were willing to trade off legacy for more income.
“With our modern tontine, investors concerned about outliving their nest egg pool their assets and are entitled to their share of the pool as it winds up 20 years from now,” says Mr. Gordon. “Over that 20-year period, we seek to grow the invested capital as much as possible to maximize the longevity payout. Along the way, investors that redeem early or pass away leave a portion of their assets in the pool to the benefit of surviving unitholders, boosting the rate of return. All surviving unitholders in 20 years will participate in any growth in the tontine’s assets, generated from compound growth and the pooling of survivorship credits. This payout can be used to fund their later years of life as they see fit, and aims to ensure that investors don’t outlive their investment portfolio.”
With the number of persons aged 85 and older having doubled since 2001, and projections suggesting this number could triple by 2046,2 Guardian Capital set out to create innovative solutions that this demographic could utilize when seeking a greater sense of financial security.
“Guardian has spent six decades focused on placing the needs of our clients and investors first,” said George Mavroudis, President & CEO, Guardian Capital Group Limited. “GuardPathTM Longevity Solutions embody this focus by seeking to provide retirees with enhanced comfort in their financial situation as they enjoy the next decades of their life, aiming to alleviate the worry about whether their money will allow them to do so.”
Visit guardpath.ca to learn more about how Guardian Capital aims to revolutionize retirement.
1 Ritholtz, B., “Tackling the ‘Nastiest, Hardest Problem in Finance”, An Interview with William Sharpe, Bloomberg Opinion, June 5, 2017. https://www.bloomberg.com/opinion/articles/2017-06-05/tackling-the-nastiest-hardest-problem-in-finance
2 Statistics Canada, “A portrait of Canada’s growing population aged 85 and older from the 2021 Census:”, April 27, 2022. https://www12.statcan.gc.ca/census-recensement/2021/as-sa/98-200-X/2021004/98-200-X2021004-eng.cfm
About Guardian Capital LP
Guardian Capital LP is the manager and portfolio manager of the Guardian Capital Funds and Guardian Capital ETFs, with capabilities that span a range of asset classes, geographic regions and specialty mandates. Additionally, Guardian Capital LP manages portfolios for institutional clients such as defined benefit and defined contribution pension plans, insurance companies, foundations, endowments and investment funds. Guardian Capital LP is a wholly owned subsidiary of Guardian Capital Group Limited and the successor to its original investment management business, which was founded in 1962. For further information on Guardian Capital LP, please call 1-866-383-6546 or visit www.guardiancapital.com/investmentsolutions.
About Guardian Capital Group Limited
Guardian Capital Group Limited (Guardian) is a diversified, global financial services company operating in two main business segments: Investment Management and Wealth Management. As of June 30, 2022, Guardian had C$46.9 billion of assets under management and C$27.6 billion of assets under administration, while managing a proprietary investment portfolio with a fair market value of C$651 million. Through its subsidiaries, Guardian provides extensive investment management solutions to institutional and private wealth clients, while offering comprehensive wealth management services to financial advisors in its national mutual fund dealer, securities dealer and insurance distribution network. Founded in 1962, Guardian’s reputation for steady growth, long-term relationships and its core values of trustworthiness, integrity and stability have been key to its success over six decades. Its Common and Class A shares are listed on the Toronto Stock Exchange as GCG and GCG.A, respectively. To learn more about Guardian, visit www.guardiancapital.com.
For media inquiries: Adam Amato (aamato@guardiancapital.com)
For other inquiries: Angela Shim (ashim@guardiancapital.com)
Unlike traditional mutual funds or exchange traded funds (“ETFs”), the GuardPathTM 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 Managed Decumulation Fund may be impacted by volatility and sequence of returns risk. 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 detailed in the prospectus. The long-term total return of the 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 refer to the prospectus for details.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase the GuardPath Longevity Solutions and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Commissions, trailing commissions, management fees and expenses all may be associated with investments in mutual funds and ETFs. Please read the prospectus before investing. Important information about the mutual funds and ETFs is contained in their prospectus. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on the TSX. If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. The GuardPathTM Longevity Solutions are sponsored by Guardian Capital LP and are only qualified for sale in certain provinces or territories of Canada.
