Key Points

• Indexia Funds provide low-cost, passive investing
• Built-in capital protection
• Simple, diversified portfolio options
• Ideal for QROPS transfers and retirement planning

In This Blog

• What are Industrial Alliance Indexia Funds?
• How Indexia Funds Work in Canada?
• Types of Indexia Portfolios
• Key Benefits of Indexia Funds
• Indexia Funds vs Mutual Funds
• Why Indexia Funds Are Ideal For QROPS Transfers
• Who Should Consider Indexia Funds
• Final Thoughts: Are Indexia Funds Worth It?
• Frequently Asked Questions
• Conclusion

What Are Industrial Alliance Indexia Funds?

Industrial Alliance (iA Financial Group) Indexia Funds are a family of low-cost, passively managed segregated funds designed to provide diversified exposure to global markets using index-based strategies.

These funds are built using recognized global stock and bond indices, meaning they aim to track the performance of major markets rather than trying to outperform them.

Unlike traditional actively managed funds, Indexia Funds follow a passive investment approach, helping reduce management costs while still delivering broad market exposure.

How Do Indexia Funds Work in Canada?

Indexia Funds are structured as segregated funds, which combine investment growth with insurance protection.

A segregated fund is similar to a mutual fund, where investor money is pooled and invested in stocks, bonds, or other assets. However, segregated funds offer unique benefits such as capital guarantees and estate protection.

Types of Indexia Funds

Industrial Alliance offers a range of Indexia portfolios designed to match different risk tolerances:

Indexia Prudent – Conservative, income-focused
Indexia Moderate – Balanced approach
Indexia Balanced – Equal growth and income
Indexia Growth – Higher equity exposure
Indexia Aggressive – Maximum growth potential

These portfolios allow investors to select a strategy aligned with their risk tolerance, time horizon, and retirement goals.

Key Benefits of Indexia Funds

1. Low-Cost Passive Investing

Indexia Funds are designed to be cost-effective, with management expense ratios typically lower than actively managed segregated funds.

This makes them an attractive option for long-term investors who want:

• Lower fees
• Broad diversification
• Market-based returns

2. Capital Protection Guarantees

One of the biggest advantages of Indexia Funds is that they are segregated funds, meaning they include insurance guarantees.

Investors can receive:

• 75% to 100% capital protection at maturity or death
• Protection against market downturns
• Peace of mind during volatile markets

This is especially valuable for retirees or those nearing retirement.

3. Estate Planning Benefits

Segregated funds offer unique estate advantages:

• Bypass probate
• Direct beneficiary payouts
• Faster settlement upon death

For clients transferring wealth or planning estates, this can significantly simplify the process.

4. Creditor Protection Potential

In certain cases, segregated funds may provide creditor protection, making them appealing for:

• Business owners
• Professionals
• High-net-worth individuals

5. Automatic Rebalancing

Indexia Funds are automatically rebalanced, ensuring the portfolio stays aligned with its target allocation without requiring ongoing manual adjustments.

Indexia Funds vs. Mutual Funds

While mutual funds may offer flexibility, they lack the insurance guarantees that segregated funds provide.

Why Indexia Funds Are Ideal For QROPS Transfers

For clients transferring a UK pension to Canada through a QROPS strategy, Indexia Funds can be an excellent investment solution.

1. Tax-Deferred Growth Inside RRSP/RRIF

QROPS transfers land in an RRSP when they arrive in Canada, where investments grow tax-deferred.

Indexia Funds fit perfectly within this structure by offering:

• Diversified exposure
• Long-term growth potential
• Lower costs

2. Capital Protection for Retirement Income

Many QROPS clients are nearing retirement and want:

• Growth potential
• Downside protection

Indexia segregated funds provide both through:

• Market participation
• Guaranteed minimum values

3. Simplified Portfolio Management

Indexia Funds provide a turnkey investment solution. They are designed for clients who:

• Don’t want to actively manage investments
• Prefer a “set it and forget it” approach

4. Estate Planning for Expats

QROPS clients often have complex estate situations. Indexia Funds can:

• Bypass probate
• Ensure faster beneficiary payouts
• Simplify cross-border estate planning

Who Should Consider Indexia Funds?

Indexia Funds are ideal for:

Retirement-Focused Investors
Those looking for a balance between growth and protection.

QROPS Clients
Individuals transferring UK pensions to Canada who want:

• Simplicity
• Diversification
• Security

Risk-Conscious Investors
Those who want exposure to markets but with downside protection.

Passive Investors
Anyone who prefers index investing over active management.

Final Thoughts: Are Indexia Funds Worth It?

Industrial Alliance Indexia Funds provide a compelling combination of:

• Low-cost index investing
• Insurance-based guarantees
• Estate planning advantages
• Simplicity and diversification

Frequently Asked Questions

What are Indexia Funds?
Indexia Funds are passively managed segregated funds offered by Industrial Alliance that track global market indices while providing capital protection and estate benefits.

Are Indexia Funds safe?
They offer built-in guarantees (75%–100%) that protect your investment at maturity or death, making them safer than traditional mutual funds.

What are the MERs for Indexia Funds
Indexia Funds typically have MERs around 1.95% depending on the series. These fees if the amount of funds invested reach over $300K and then again over $500K.

Are Indexia Funds good for retirement?
Yes, they are ideal for retirement due to their balance of growth, protection, and income potential.

Can Indexia Funds be used in a QROPS RRSP/RRIF in Canada?
Yes, they are commonly used within RRSP or RRIF accounts following a QROPS transfer to Canada.

Conclusion

If you are considering transferring your UK pension to Canada or would like to understand how a QROPS structure works, our team specializes in helping Canadians navigate the process. Learn more about:

• QROPS pension transfers to Canada

• Eligibility requirements

• Tax considerations

• Investment options for transferred UK pensions

At Strata Wealth, we specialize in UK pension transfers to Canada via QROPS as well as RRSP planning. We will work with you to determine the most suitable investment choice.

If you are interested in learning more about transferring a pension scheme from the UK to Canada, please contact us today for a free, no obligation consultation.