Which entity is responsible for managing the underlying investments in a segregated fund?

The responsibility for managing the underlying investments in a segregated fund lies with the insurance company. Segregated funds are essentially a type of investment product offered by insurance companies, which combine features of mutual funds with insurance benefits. The insurance company appoints investment managers and oversees the investment strategy of the segregated fund, ensuring that the assets are managed according to the company’s guidelines and investment objectives.

While investors can influence their choice of investment through their selections, they do not directly manage the funds. A third-party investment firm may be involved in the management of the investments, but it operates under the direction of the insurance company. The government does not manage these funds; instead, it regulates the insurance industry to ensure compliance with relevant laws and protect consumers. Therefore, it is the insurance company that plays a central role in managing the investments within segregated funds.