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InvestorSure CD Presentation to Montana Board of Regents

InvestorSure CD provides principal protection, S&P 500 growth, FDIC insurance, and tax benefits. Market-locked participation rates ensure investor stability. Historic returns show consistent protection during positive and negative markets.

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InvestorSure CD Presentation to Montana Board of Regents

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  1. Presented to the Montana Board of Regents By College Savings Bank September 19, 2007

  2. Product Description • 85% to 100% of the average increase in the S&P 500 • Principal protection • FDIC insurance • Initially issued quarterly • Initially offered at a 5-year maturity • Historically profitable

  3. Product Benefits • One of the largest selling CD types in the US • Free of enrollment fees & the Bank will pay broker fees up to 1.25% • Offers the upside of the equity market without the risk of principal loss • Averaging further protects investors from negative market swings • Features all 529-Plan tax benefits

  4. Product Disclosure • If the market declines, Investors may be limited to receiving only principal invested upon maturity • Early withdrawals will only be permitted once a year, with interest credited and a 10% principal penalty • The participation rate will vary between offerings from 85% to 100%, but will ‘lock in’ for that specific offering

  5. Product Marketing • The Bank will invest an additional $300,000 to announce the InvestorSure CD during November and December along with $300,000 in 2008 • The Bank will market the CollegeSure CD and InvestorSure CD side by side so investors can compare the two products • Key messages: • “One of the largest selling CDs in the US has come to Montana’s 529 college savings plan” • “Featuring the upside of the equity market without the risk of principal loss” • “An alternative, or complimentary investment to the CollegeSure CD”

  6. Historical Rate of Return Over the previous 20-years, issued monthly, the InvestorSure CD would have returned investors full principal on 39 occasions when a similar, but unprotected 5 year investment indexed to the S&P 500 lost money.

  7. Historical Rate of Return The following charts demonstrate ROI in both a positive and negative market. For the period measured, the S&P 500 grew from 916.07 to 1,477.01. The InvestorSure CD would have yielded 50.56% at full participation or 42.98% at (.85) participation. The taxable equivalent average APY within the MFESP would have ranged from 14.04% to 11.94%. Positive Market August 2002 - July, 2007 Negative Market April 2000 - March 2005 For the period measured, the S&P 500 lost value, declining from 1,452.43 to 1,180.59. The InvestorSure CD would have returned full principal regardless of the participation rate, while the S&P 500 lost 21.22%.

  8. Questions

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