Key Features Expanded

Key Elements of Principal Protection

1. Guarantee Against Loss: Regardless of market conditions, the principal invested in an IIFA remains intact. This means that even in the event of severe market downturns, the value of the initial investment will not decrease.

1. Security of Initial Capital: The protection mechanism is designed to secure the initial capital against market volatility. This is particularly appealing to conservative investors or institutions with a fiduciary responsibility, such as credit unions and pension funds, that prioritize the preservation of capital over high-risk returns.

1. Regulatory and Contractual Safeguards: The principal protection in an IIFA is not just a marketing promise; it is embedded in the contract and subject to regulatory oversight. This adds a layer of legal assurance that the investment’s principal will not diminish.

The IIFA's structure offers a unique advantage often sought by risk-averse institutions like Credit Unions: an asymmetric return profile. Here's how it works:

• High Participation Rates: The IIFA allows you to benefit from a significant portion of market gains when the market rises.

• 100% Principal Protection: Your initial investment is guaranteed, no matter what happens in the market. This protects you from any potential losses.

• Automatic Cost-Basis Reset: At the end of each crediting term, the IIFA automatically resets the cost basis to the current market value. This eliminates the drag of past downturns and allows for continued growth in future terms. This feature is often referred to as avoiding "high-water marks" or "deficit recapture."

The result? You can potentially achieve enhanced returns without the worry of losing your principal or needing to overcome past market losses. This makes the IIFA an attractive option for maximizing growth potential while minimizing risk.

Key benefits:

• Capture market upswings and benefit from positive market performance.

• Eliminate the risk of principal loss during market downturns.

• Achieve continued growth without the burden of past market fluctuations.

The IIFA's asymmetric return profile allows you to focus on your core mission of serving your members, knowing your investment is safe and has the potential for significant growth.

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The IIFA™ provides a strong, stable-value alternative to conventional bonds, featuring guaranteed multi-year fixed rates. Unlike traditional fixed income products, it eliminates mark-to-market volatility, ensuring your investments are consistently held at par value. This stability delivers reliable income and significantly reduces balance sheet risk, making it an ideal choice for institutional portfolios seeking predictable returns and minimized exposure to market fluctuations.

The IIFA™ offers access to a variety of indices, both global and domestic, along with multiple crediting and contract durations. This versatility allows you to tailor your investments to align perfectly with your current portfolio and long-term financial objectives. The ability to customize your investment strategy with diverse options provides a strategic advantage in achieving your goals, catering to various risk appetites and market outlooks.

The IIFA™ provides clear and transparent terms, free from hidden fees or commissions. Participation rates are locked in for the entire duration of the contract, ensuring a predictable and straightforward investment experience. This transparency fosters trust and confidence, making the IIFA™ a dependable choice for institutional investors. The absence of hidden costs ensures that more of your investment is working for you, maximizing your returns and simplifying financial planning.