Changes to DFS Guaranteed Investment Funds - Advance Notices being sent to clients in July 2019

Intermediary Network Sales Support and Expertise June 21, 2019

Desjardins Financial Security Life Assurance Company (DFS) regularly reviews its investment and insurance products to keep pace with market trends and make sure we’re always doing what’s best for Contract Owners. That’s why we’ve decided to make changes to our line of Guaranteed Investment Funds (GIFs).

Changes

On October 7, 2019, we’ll be adding new Funds as indicated below:

Fund nameHelios2 ContractHelios ContractMillennia III –
New Era Contract
Millennia III –
Classic Contract
DFS GIF – Dividend Income – DesjardinsXXXX
DFS GIF – Global Tactical Bond – DesjardinsXX  
DFS GIF – Global Equity – DesjardinsXX  

On October 4, 2019, we’ll be closing Funds as indicated below:

Fund nameHelios2 ContractHelios ContractMillennia III –
New Era Contract
Millennia III –
Classic Contract
DFS GIF – Dividend Income – Franklin BissettXXXX
DFS GIF – Canadian Balanced – Franklin BissettXXX 

Clarification of Procedure Upon the Notification of Annuitant’s Death

For all DFS GIFs Contract, we’ll also be clarifying our process for paying out amounts owing upon death, starting October 7, 2019. This will mean paying lower Additional Guarantee Fees, if applicable, on these amounts and limiting exposure to market volatility.

To find out more, see the Advance Notices of Change.

Helios2 – 75/100 GLWB Guarantee in locked-in Contracts

Note: this information is not included in the Advance Notice of Change in the Helios2 Contract, as it does not affect the current Contracts. However, it will be included in the October 2019 Contract and Information Folder.

Effective October 7, the Helios2 – 75/100 GLWB Guarantee will no longer be available when opening new locked-in Contracts. In addition, for all locked-in Contracts opened on or after October 7 with another Guarantee, no request can be made to change to the Helios2 – 75/100 GLWB Guarantee at a later date.

Client communications

An Advance Notice of Change will be sent to all Contract Owners by mail on July 5, 2019:

ContractItem number
Helios2 19140E
Helios 19139E
Millennia III – New Era 19138E
Millennia III – Classic 19137E
Millennia III – First Edition and Imperial Growth Plan 19136E

Tax implications

Non-registered Contracts containing Units of the Funds being closed will be subject to a taxable disposition. The disposition arises from the sale of Units of the closed Funds and could generate capital gains or losses.

All clients whose Contract is subject to a taxable disposition will receive, in addition to the Advance Notice of Change, a letter informing them of the estimated amount of capital gain or loss that will be attributed to them following the Funds’ closure. This letter will be sent in the week of July 15.

If some of your clients are affected by this taxable disposition, you will receive a list containing the following information in the week of June 24:

  • Name and contact information of the clients
  • Name, Series and Contract numbert
  • Estimated amount of capital gains or losses

This will give you a chance to contact them before they receive the letter advising them of their capital gain or loss. It will also give you an opportunity to discuss the strategy that will work best in their particular situation.

Information for representatives

Please read the Q&A document, which contains key information on the topic.


Intermediary Network Sales Support and Expertise