Launch of the IDEO+ Plans

Kaleido continues to be committed to helping each child reach their full potential by accompanying them along the journey, and continues to move towards a model that is more flexible and responsive to client needs and market realities.

Following a thorough analysis and consultations with its clients, Kaleido decided to focus on offering more flexible individual scholarship plans by launching its IDEO+ lineup, which eliminates the rigidity and complexity sometimes associated with group scholarship plans.

Kaleido will therefore stop selling its group products as of April 30, 2022. However, it will continue to offer support for your group products. The terms and conditions of your contracts, such as the repayment of an amount equal to the sales charges at maturity and the guaranteed capital, will be honored.

As a Kaleido client, you will still benefit from a comprehensive array of services that includes access to telemedicine and family coaching, academic support, family financial planning, health and well-being resources, and career guidance.

Why are you launching new individual products?

We have adapted our lineup to better meet the needs of our current and prospective clients.

After careful analysis, we are proud to launch our new line of individual IDEO+ plans, which include more flexible products, allow for investment in more diversified asset classes, and are tailored to a number of investor profiles.

Although we will no longer sell our group products to new clients as of April 30, the terms and conditions in the contracts of current clients holding group products (repayment of an amount equal to the sales charges at maturity and the guaranteed capital) will be honored.

Subscribers who wish to do so will be able to make new contributions to their existing plan until we launch our new suite of individual plans on April 30, 2022.

After that date, you will be able to add to your savings in one of our individual IDEO+ plans, which offer greater contribution flexibility and allow you to invest in more diversified asset classes tailored to a wide range of investor profiles.

How do these new individual products affect me?

We will no longer allow clients to open new plans or add contributions or units to existing plans as of April 30.

However, we will honor the terms of your contract. This means that the contribution schedule is maintained, as is the repayment of an amount equal to the sales charges at maturity and the guaranteed capital.

After that date, you will be able to add to your savings in one of our three individual IDEO+ plans, which offer greater contribution flexibility and allow you to invest in more diversified asset classes tailored to a wider range of investor profiles.

Will I still be able to contribute to my group scholarship plan?

Yes. You will need to keep to your contribution schedule until maturity to take advantage of the plan’s benefits (refund of an amount equal to the sales charges at maturity and the guaranteed capital).

If you would like to add to your RESP, you can purchase new units in your existing plan until April 30. After that date, all additions will have to be made in one of the three IDEO+ plans.

Why can’t group and individual products coexist?

The regulatory framework of Autorité des marchés financiers does not allow us to sell these two types of scholarship plans simultaneously, particularly because they have a different compensation structure.

Given declining demand for group products, offering current group plans and new individual plans would result in higher costs and would not benefit subscribers or their beneficiaries.

Of course, Kaleido will continue to provide support to existing clients who hold group products. The terms and conditions of their contracts, such as the reimbursement of an amount equivalent to the sales charges and the guaranteed capital, will be honored.

With the arrival of your new products, what is the advantage of doing business with Kaleido?

Kaleido, an RESP specialist and pioneer for nearly 60 years, continues to provide its clients with advice, services, and expertise.

As an IDEO+ subscriber, you can take advantage of all of Kaleido’s support services, which include access to telemedicine, family coaching, academic support, family financial planning, health and well-being resources, and career guidance for teens.

The individual IDEO+ products offer many other advantages:
- They do not carry a sales charge.
- They are flexible, which means that contributions are not obligatory.
- They allow you to invest in diversified asset classes, including a plan with impact investment objectives (IDEO+ Responsible).
- They are tailored to different investor profiles as they offer different levels of risk.

With no more money coming into the cohort, what will be the impact on EAPs in the long term?

In fact, funds will continue to be added to the various cohorts. As the terms of our subscribers’ group contracts will be honored, the contribution schedules will be maintained based on their subscribed units.

What’s more, EAP calculations are done on a unit basis and are therefore not influenced by cohort size.

Will the performance of the REFLEX and IDEO+ plans differ?

The new IDEO+ plans do not include sales charges, so your contributions grow from the first dollar invested.

The IDEO+ plans are offered in three formats (Conservative, Adaptive, and Responsible) with a greater diversity of assets to meet the needs of different investor profiles. The returns will therefore be different from one IDEO+ plan to another.

Because IDEO+ plans have an investment strategy that adapts to the age of the child, the earlier you contribute in the child’s life, the better the prospects for long-term returns.

Of course, returns are not guaranteed and, in addition to market changes, it all depends on your particular situation, such as your investor profile and your child’s age when you subscribe.

Overall and over the long term, the performance outlook for the IDEO+ Conservative plan compares to that of the REFLEX plan.

In general and over the long term, the performance outlook for the IDEO+ Adaptive and IDEO+ Responsible plans suggests a higher return potential than that of the IDEO+ Conservative plan.

Have questions about your RESP or our new IDEO+ plans? We’re here to help! Please contact your representative or our Customer Service Call Centre at 1-877-710-7377.