Investment Management

While a policyholder may not have direct control over his or her investments (direct control would disqualify the policy's taxation benefits), the policyholder may choose the desired investment strategy and profile when the policy is being established.

Furthermore, a policyholder who intends to invest a minimum of U.S. $2 million in a Bastion Life policy is invited to recommend his or her preferred investment advisor or asset manager if so desired. Each manager must be highly reputable and the appointment is subject to Bastion Life's approval.

A Bastion Life Flexible Premium Life Insurance policy provides considerable flexibility for the investment profile sought by each policyholder.

Each investment program is designed to safeguard and build investments through maximizing growth and earnings commensurate with the level of risk desired, while minimizing taxation obligations. Thus, each investment program provides the policyholder with a different level of capital growth and security. All Bastion Life investment programs meet the stipulated diversification requirements of U.S. regulations.

While the policyholder must consider the relative importance of capital stability versus growth potential, as with any type of investment, prevailing economic and market conditions (and the management skill of the fund managers) will have important influences on the actual performance of each investment program.

Each policyholder must recognize, as with any investment program, that fund values may fall as well as increase and that past performance is not an indicator of future yields. The value is less likely to fluctuate for investments that generally earn lower long-term returns.

Bastion Life offers its policyholders a choice of three different investment growth programs as part of its standard offering. Each program meets all of the stipulated diversification requirements of U.S. regulations :

Each of the programs has enjoyed an attractive rate of return. The programs are :

• Conservative Growth Investment Program- Provides attractive capital growth coupled with the protection of capital without speculation.

• Balanced Growth Investment Program- Places emphasis on capital appreciation with some consideration for investment yield and relative risk.

• Globally Diversified Offshore Investment Program- Places emphasis on capital gains and offers higher but slightly more speculative investment growth.

Bastion Life’s Investment Manager utilizes the skills of highly qualified, respected, and well-known international fund managers to manage the investment programs selected for each Bastion Life policyholder.