The Collegiate Investment Contract can be best summarised as a non-correlated, zero coupon bond like instrument with a windfall potential.

Returns can be generated in three ways:
• Maturity during term;
• Sale of Investment Contract before term; or
• Expiry of Investment Contract at term.

Maturity during term

Windfall returns may be generated if a policy matures during the currency of the Investment Contract. Yields can exceed 50%, subject to timing and the specific Investment Contract.

Sale of Investment Contract

At any time prior to the end of the Investment Contract term you can sell the Investment Contract, either to another party or to Collegiate. Collegiate makes a market in the Investment Contracts and the re-
purchase price is related to its valuation of the Investment Contract, based upon the net present value of the maturity. Yields on a sample of Investment Contracts are projected to be around 8% after 5 years1.

Expiry of Term

At expiry of the term of the Investment Contract we will buy back the Investment Contract at a price projected to yield around 8%. Yields on expiry are based upon market values at that time and will vary with market conditions.

The cashflows shown in the following examples are representative of cashflows that may be generated by a Collegiate Investment Contract.

Actual returns will vary according to the specific Investment Contracts and your personal circumstances.

1 Yields will vary according to the specific Investment Contract. Yields are indicative only.

Banner Life
Lincoln National
Manhattan Life