What is a notable feature of some segregated funds that allows for investment management?

The reset feature is a notable characteristic of some segregated funds that provides investors with the ability to lock in gains. This feature allows the fund's maturity and death benefit guarantees to be reset at certain intervals, typically when the fund's value exceeds the previous high watermark. By doing this, investors can secure a higher level of protection for their investment, as the guarantees are adjusted according to the fund's performance.

In the context of investment management, this reset mechanism can encourage long-term investment strategies, as it enables investors to benefit from upward market movements while maintaining downside protection. Additionally, it can provide peace of mind, knowing that any significant gains can be protected against future market fluctuations.

Other features mentioned, like regulatory compliance, liquidity guarantees, and performance tracking, serve different purposes in the context of segregated funds but do not directly relate to the active management and locking in of investment gains in the way the reset feature does.