December 17, 2025
Empire Life Segregated Funds Performance
Finance

Empire Life Segregated Funds Performance

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Empire Life segregated funds, offered through The Empire Life Insurance Company, blend the growth potential of traditional mutual funds with unique insurance benefits such as death and maturity guarantees. Performance varies across the range of funds equity, balanced, and global portfolios allowing investors to match risk levels and objectives with long-term returns. This topic explores the performance of several key Empire Life segregated funds, analyzing recent returns, long-term growth, fees, and how these fit into a diversified investment strategy.

Overview of Empire Life Segregated Funds

Segregated funds are investment vehicles wrapped in insurance contracts. They offer features including maturity and death benefit guarantees (typically 75% to 100% of deposits), creditor protection, probate bypass, and reset options. Unlike mutual funds, assets are held in separate accounts, insulated from the insurer’s general liabilities.

Fund Performance Highlights

Empire Life Elite Equity GIF – Class A

This fund targets Canadian large-cap equities. As of June 30, 2025, key performance metrics include :

  • 1-month: +2.27%
  • 3-month: +6.00%
  • 6-month: +4.13%
  • Year-to-date: +4.13%
  • 1-year annualized: +12.70%
  • 3-year annualized: +11.03%
  • 5-year annualized: +11.30%
  • 10-year annualized: +6.85%

The long-term compound annual return (~11.30%) reflects strong performance in Canadian equities. With a fund size of $1.36 billion and an MER of 2.70%, it offers solid growth but comes with higher fees.

Empire Life Asset Allocation GIF – Class G

Designed for balanced investors with a 65% equity/35% fixed income target, it aims for growth and stability. As of June 30, 2025 :

  • 1-month: +1.64%
  • 3-month: +3.62%
  • 6-month: +2.61%
  • Year-to-date: +2.61%
  • 1-year annualized: +9.18%
  • 3-year annualized: +7.33%
  • 5-year annualized: +7.23%
  • 10-year annualized: +4.24%

With $1.17 billion in assets and a 2.67% MER, this fund offers moderate returns and lower volatility than pure equity funds.

Empire Life Global Balanced GIF – Class G

This global equity‘fixed income balanced fund targets around 70% equities. As of June 30, 2025 :

  • 1-month: +0.78%
  • 3-month: +1.72%
  • 6-month: +3.83%
  • Year-to-date: +3.83%
  • 1-year annualized: +10.46%
  • 3-year annualized: +8.25%
  • 5-year annualized: +5.82%
  • 10-year annualized: +4.08%

With $286 million in assets and a 3.01% MER, this fund offers diversified global exposure at moderate risk.

Comparative Analysis

Comparing the funds reveals differences in return, risk, and cost:

  • Elite Equity: Highest volatility and returns, with ~11–12% annual growth, but comes with a higher fee (2.70% MER).
  • Asset Allocation: Balanced return (~7–9%), moderate volatility, suitable for those seeking growth with downside protection.
  • Global Balanced: More diversified, global equity exposure, offering ~10% 1-year return, with broader geographic diversification.

Insurance Features and Investor Protections

All funds offer guarantees that protect portions of deposits upon maturity or death, typically 75% or 100%. Reset options allow contract holders to lock in gains annually or via event-based resets, reinforcing downside protection.

Fees and Cost Considerations

These segregated funds include management and insurance fees, reflected in their MERs (2.67–3.01%). These fees are generally higher than mutual funds due to the guarantees and insurance wrapper. However, the trade-off is peace of mind and protection.

Investors with large portfolios may qualify for preferred pricing, lowering costs. Guaranteed Investment Funds (GIFs) offer both growth potential and benefit guarantees through tailored series (75/75, 75/100, 100/100), offering flexible options based on risk appetite and estate planning needs.

Ideal Use Cases for Each Fund

  • Elite Equity: Suitable for growth-focused investors seeking long-term equity exposure in Canada and comfortable with market swings.
  • Asset Allocation GIF: Ideal for investors seeking a mix of growth and stability with reduced downside risk and moderate fees.
  • Global Balanced GIF: For those seeking global diversification with balanced risk and return, and willing to pay slightly higher fees for broader market access.

Empire Life’s segregated fund lineup blends growth potential and protection. Elite Equity offers strong long-term returns with higher volatility, while Asset Allocation and Global Balanced provide balanced risk–reward profiles for moderate growth with downside protection. With performance data showing competitive annualized returns (7–12%) and built-in insurance benefits, these funds offer investors a unique solution combining investment growth and financial security. Before investing, individuals should weigh fees, risk tolerance, investment horizon, and insurance features with their advisor to determine the best fit for their financial goals.