While net asset values are usually calculated on a daily or weekly basis, this may also be done monthly. Other provinces are expected to follow suit, as interested parties push to take part in the growing mutual fund industry. The mutual fund market is opening its doors to several new participants. Institutional investors are looking to launch more ETFs because of its high performance in Canadian and U.S. markets. The mutual fund market may be affected by the increasing popularity of segregated funds.
Segregated funds are pools of assets owned by insurance companies.
Each pool of assets is kept separate from other assets owned or managed by that insurance company. Investors do not own units of segregated funds, but pay premiums based on the value of the segregated fund. Segregated funds are more appealing than mutual funds because the potential for capital loss is reduced. This amount can later be increased by resetting the guaranteed amount by the current market value. SRIs were first offered to Canadians in 1985.