INVESTMENT SERVICES

SunCorp's investment philosophy adheres to the time-tested principle of "Safety First," followed by Liquidity and Yield (SLY). This philosophy holds true in all types of market situations and has allowed SunCorp to pay competitive interest rates on shares for over 25 years.

Below is a brief explanation of our investment offerings. Remember that your SunCorp investments can be used as collateral for immediate liquidity loans and are exempt from FASB 115 mark-to-market requirements. They also provide you with the highest value possible without premiums or discounts that may complicate your accounting operations

Security Safekeeping Services
Brokerage Services

Cash Management Account
This is the main transactional account for all credit union daily settlement activities.This account computes interest daily and pays interest monthly. Linked to the Corporate Settlement Account, it is considered a transaction account and pays a slightly lower rate than SunCorp's other overnight investment alternatives. Funds may be drawn upon demand and without interest penalties or valuation adjustments. Rates for the Cash Management Account are set and based upon changes in the market.

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Money Market Account
The Money Market Account offers credit unions higher earning potential on liquid funds. With no minimum or maximum investment required, this account provides the ability to increase earnings on overnight balances in excess of daily settlement needs. As an added benefit, the Money Market Account offers tiered rates -- giving credit unions the capability to invest and earn more. Rates, paid monthly, are based on earnings received as well as market fluctuations, and are very competitive with the effective Fed Funds rate.

Membership Capital Share Account
This long-term account provides members the opportunity to share in the success and long-term growth of their corporate. Participation is a voluntary commitment, based on a credit union's assets, and provides the crucial difference in their relationship with SunCorp... ownership. This account allows members to vote on critical issues, elect officials that govern, as well as borrow from SunCorp (does not apply to settlement loans). A minimum three-year advance notice is required for termination and dividends are paid monthly.

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Paid-in Capital (PIC) Share Account
The Paid-in Capital Share Account is a long-term capital account alternative in which the projected dividend rate is substantially above the rate of Membership Capital Shares. Due to a longer termination notice of 20 years, PIC shares are managed on a longer-term basis allowing SunCorp to increase dividends paid. The Paid-in Capital Share Account does not require the investment of additional funds. Credit unions may have a portion or all of existing Membership Capital Share funds allocated to the Paid-in Capital Account. However, total account subscriptions are limited to one percent of a credit union's year-end assets. Dividends are paid quarterly. Please call an investment professional for availability.

Short Term Share Certificate
These certificates are fixed-rate investment opportunities with maturities ranging from one-day to over one-year. Interest is calculated on a 365-day-year basis with interest paid monthly or at maturity into the Cash Management Account. The minimum investment is $1,000.

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Intermediate Term Share Certificate
Credit unions wishing to earn higher yields on longer-term investments can benefit from Intermediate Term Share Certificates. Similar to Short-Term Share Certificates, these are fixed-rate investment opportunities, with maturities over one-year to five-years. Interest on Intermediate-Term Share Certificates is paid semi-annually and is calculated on a 365-day-year basis. Minimum investment is a $1,000.

Fixed, Callable Share Certificate
These certificates have a fixed rate for the entire term but may be called to mature prior to the stated final maturity date. This early prepayment would typically occur if market interest rates declined after the certificate's issue date. A callable certificate offers a yield in excess of U.S. Treasury securities with the same final maturity date. The increased yield is considered compensation for the prepayment risk.

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Step-Up Share Certificate
This certificate allows a one-time, or more, extension of the maturity date with a higher interest rate. Step-Up Certificates offer yields above equivalent treasuries and are issued at par. No minimum or maximum investment is required.

Amortizing Certificate Program (ACP)
The ACP Certificate is designed to provide competitive market rates while minimizing many of the risks and record-keeping burdens commonly associated with amortizing securities such as Collateralized Mortgage Obligations (CMOs). Principal is returned over the life of the Amortizing Certificate.

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Floating Rate Certificate
A Floating Rate Certificate of Deposit is a certificate where the interest rate resets regularly and is tied to a variety of short-term indices. A good alternative to short-term investments such as Fed Funds, the dividend rate is a fixed-rate spread to a common market index so the certificate rate adjusts with market changes. These certificates typically are periodic offerings with terms between one and a half and three years. Minimum investment required is $1,000.

SimpliCD Program
SunCorp's SimpliCD program, brought to you by our service partner, Primary Financial Co. LLC, provides members with a hassle-free and direct source for bank or credit union certificates of deposits. SimpliCD saves members the time of searching for the best rates by handling the rate search for you. Please contact a SunCorp investment professional for further information regarding the SimpliCD program.

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One phone call is all it takes to make a SunCorp investment. Our investment professionals stand ready to help you find the products that best fit your specific needs. Call us toll-free at 877.786.2677 x4645 or send us an e-mail to capitalmarkets@suncorp.coop today to find out more!

 
Cash Management Account
Money Market Account
Membership Capital Share Account
Paid-in Capital (PIC) Share Account
Short Term Share Certificate
Intermediate Term Share Certificate
Fixed, Callable Share Certificate
Step-Up Share Certificate
Amortizing Certificate Program (ACP)
Floating Rate Certificate
SimpliCD Program)