- Long-term financial wealth assets - have an original maturity of more than one year, or no defined maturity at all. With the exception of fixed-term, the assets in this broad category demonstrate a greater sensitivity to movements in stock and bond markets and are therefore regarded as riskier assets. This category includes fixed-term, fixed income, funds, equities, and other discretionary financial assets.
- Linked notes - debt instruments, some of which guarantee the principal (principal-protected notes), while some do not (principal-at-risk notes). The return on these instruments is linked to any number of underlying investments, including stock market indices, mutual funds, portfolios of stocks or hedge funds.
- Life insurance protection reserves - a current value measure of the expected future payments to households on life, health and accident policies. Insurance protection reserves represent value imputed to households (i.e. policyholders) arising from the actuarial liabilities of life insurance companies. In other words, this category represents the non-investment/non-savings component of insurance policies purchased by households. It does not represent the cash surrender value or the face value of policies in-force, but rather is that which life insurance companies deem necessary, and are mandated to set aside, by the regulators, in order to satisfy their insurance policy liabilities. In our functional presentation of the Investor Economics Household Balance Sheet Report—Canada, the investment and savings activities of households appear with life insurance segregated funds and guaranteed interest annuities.
- Lower income - an income segment that consists of households with less than $50,000 in household income.
- Lifecycle fund wraps - consist of portfolios with specific target dates. As a portfolio moves closer to its target date, the mix of its underlying assets is automatically shifted away from riskier asset classes, culminating at the target date in a fixed income (most often, a money market) portfolio. Some lifecycle fund wraps can be customized, including the starting asset mix and the target date.