Certificate of deposit index

Strategic Index Plus is a guaranteed capital deposit certificate offered by Imperial Life. It is available for terms of three, five-and a-half or eight years and at maturity (or if the investor dies before the term) the invested capital is guaranteed no matter what happens in the stock or bond markets. Your actual return (in addition to the return of your capital) will reflect the active management of 28 international securities, which include:

* 12 market indices;

* seven bond indices;

* nine foreign currencies; and

* about 100 bonds and stocks of the G7 industrialized countries.

The objective of Strategic Index Plus is to provide an optimum balance between stability and return. Because the money is actively managed, the managers are free to react to market conditions as they see fit.

Essentially, your money is managed as a hedge fund portfolio using a combination of bonds, stocks, currencies, commodities and derivatives.

Many hedge fund managers aim to maximize their returns and are willing to assume a high degree of risk to achieve such returns. The fund's objective is to manage risk while earning optimum returns. According to Imperial Life, Strategic Index Plus is considerably less volatile (therefore less risky) than even bond funds.

Although Strategic Index Plus is less volatile than a bond fund, it is expected to have a much higher return, possibly similar to that of equity funds.

Strategic Index Plus is available through Imperial Life Financial representatives. For more information, please phone 1-800-278-0669