As of January 1, 2023, the EquiBuild Fund rate will be 5.10%.
Consequently, the rate credited to the EquiBuild Account will be 3.60% (the Fund’s declared rate less a management fee of 1.5%).
The EquiBuild Fund rate increase comes from the revision of the Fund’s target asset allocation and of the smoothing formula applied to the returns earned on the Fund’s assets.
The Fund’s new target asset allocation was determined as part of the company’s asset strategy review. This new allocation comprises an increase in the proportion of non-fixed income, which will provide our clients’ values with an enhanced growth potential while maintaining a prudent and diversified investment approach.
The new smoothing formula is based on the company’s long-term return expectations related to the new asset allocation, while continuing to amortize major fluctuations in the Fund’s actual returns, whether positive or negative in comparison to the credited returns. The main objective remains to provide a stable, low-volatility declared rate from year to year.
The EquiBuild Fund document will be updated and published in March 2023 to include a description of the new smoothing formula as well as the Fund’s new target asset allocation.
Default rate displayed in the Interface Suite
With the illustration software update available on December 10, 2022, the new EquiBuild Fund rate of 5.10%, applicable on January 1, 2023, will be displayed by default when creating a new illustration in the Interface Suite.
EquiBuild in brief
EquiBuild is a permanent insurance solution that provides an increasing cash surrender value and death benefit over the long term. Some product values are impacted by fluctuations in the declared rate we set on each January 1st. To learn more about these and other product features, refer to the Document Centre in the Advisor Centre.
