More Canadians are getting older and retiring, while their portfolios are now being asked to work harder and for longer. Canadians need new financial products for decumulation, to help increase the longevity of their nest egg. In this white paper we introduce and modernize the Tontine structure.

By: Moshe A. Milevsky and Adam Murl1

In late April 2022, Statistics Canada released the results of the most recent Canadian census2. Among many other fascinating facts, their studies indicated that there were now 9,5403 centenarians living in Canada, defined as people above the age of 100. That number works out to 25.8 per 100,000 Canadians, and an increase from a mere 1,065 Centenarians in the year 19714. To put these numbers in historical perspective, these 9,540 centenarians would have been born in the year 1921 or earlier, perhaps during World War I or during the Spanish Flu. And, if members of this extraordinary group of centenarians retired at the traditional age of 65, that would imply they lived through 35 years of retirement, and possibly as much as 40 or 45 years. That is simply unprecedented and should cause everyone to wonder, will my money last as long as me?

The Modern Accumulation Tontines for Retirement Decumulation whitepaper outlines the following topics:

  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎Financing Modern Decumulation
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎Tontine History, Thinking and Future
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎Tontine Scheme Transparency vs. Annuity Complexity
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎•‏‏‎ ‎ Added and Real Longevity Protection
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎The Accumulation Tontine
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎Guardian Capital’s Approach: An Accumulation Tontine


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1. Moshe Arye Milevsky, Ph.D. is the Chief Retirement Architect in collaboration with Guardian Capital LP, while Adam Murl, CFA, is Portfolio Manager and Vice President, Retail Research & Lead Solutions Architect, at Guardian Capital LP. Both authors would like to acknowledge the input and research of Humaira Omary, Investment Product Analyst, also at Guardian Capital LP.
2. Statistics Canada, “A portrait of Canada’s growing population aged 85 and older from the 2021 Census”, Government of Canada, Census of Population, April 27, 2022.
3. Statistics Canada, “Age (in single years), average age and median age and gender: Canada, provinces and territories, census metropolitan areas and census agglomerations with parts”, Government of Canada, Data April 27, 2022.
4. Zimonjic, Peter. “Number of Canadians Living to 100 Hit a Record High, New Census Figures Show”, CBC News, Polictics, May 1, 2022.

Unlike traditional mutual funds or exchange traded funds (“ETFs”), the GuardPathTM Longevity Solutions are unique investment fund structures. As such, investors should carefully consider whether his or her financial condition and investment objectives are aligned with these retirement-focused investments that are meant to be utilized as components of a broader retirement portfolio. 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 read the prospectus before investing. Important information about these Guardian Capital mutual funds and ETFs is contained in their respective prospectus. Commissions, trailing commissions, management fees and expenses all may be associated with investments in mutual funds and ETFs. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on the Toronto Stock Exchange (“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. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

This communication is for informational purposes only and does not constitute investment, financial, legal, accounting, tax advice or a recommendation or solicitation to buy, sell or hold a security and should not be considered an offer or solicitation to deal in any product mentioned herein. This information is not intended for distribution into any jurisdiction where such distribution is restricted by law or regulation.

The use of hypothetical simulated examples is not meant to represent the performance of any particular investment and is not intended to predict or project investment results. The examples are based upon certain assumptions, estimates and/or projections, the anticipated results of which are inherently subject to uncertainties and contingencies. No representation is being made that any investor will, or is likely, to achieve gains or losses similar to those illustrated. There are frequently material differences between hypothetical performance results and the actual results achieved by a particular fund’s investment strategy. Past performance may not be indicative of future performance.

The opinions expressed are as of the published date and are subject to change without notice. Assumptions, opinions and estimates are provided for illustrative purposes only and are subject to significant limitations. Reliance upon this information is at the sole discretion of the reader. This communication includes information concerning financial markets that was developed at a particular point in time. This information is subject to change at any time, without notice, and without update. This communication may also include forward looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Equity markets are volatile and will increase and decrease in response to economic, political, regulatory and other developments. The risks and potential rewards are usually greater for small companies and companies located in emerging markets. Bond markets and fixed-income securities are sensitive to interest rate movements. Inflation, credit and default risks are all associated with fixed income securities. Diversification may not protect against market risk and loss of principal may result. Certain information contained in this document has been obtained from external sources which Guardian believes to be reliable, however we cannot guarantee its accuracy. Index or benchmark performance is shown for comparison purposes.

Guardian Capital LP is the Manager of the GuardPath™ Longevity Solutions. Guardian Capital LP is a wholly owned subsidiary of Guardian Capital Group Limited, a publicly traded firm, the shares of which are listed on the Toronto Stock Exchange. For further information on Guardian Capital LP and its affiliates, please visit Guardian, Guardian Capital and the Guardian gryphin design are trademarks of Guardian Capital Group Limited, registered in Canada and are used under license.