Important investment information

Transcription

1 Important investment information Performance When used as supplemental sales literature, investment information must be accompanied by this disclosure statement The performance data quoted represents past performance; past performance does not guarantee future results. Investment returns and principal value will fluctuate so your account balance, when redeemed, may be worth more or less than your original cost. Current performance may be lower or higher than the performance data quoted. Instances of high double-digit returns are highly unusual and cannot be sustained. Investors should be aware that returns vary due to market conditions. Participation in a collective trust (designated as Trust in the name of the investment option) is governed by terms of the trust and participation materials. An investor should carefully consider the investment objectives, risks, and charges and expenses of the collective trusts before investing. The participation materials contain this and other important information and should be read carefully before investing or sending money. Participation materials for any of the collective trusts in the program are available at You may obtain a prospectus or similar document for each investment option in the plan by requesting one from your employer, visiting your plan s website, or calling a Lincoln Financial representative at When the fund's inception date is less than 10 years, historical performance may not be available. When this is the case, extended performance has been calculated based on the oldest share class of the fund, adjusted for fees. Please obtain mutual fund performance data for the most recent month end by visiting and requesting a quote using the appropriate ticker symbol. Fund data is provided here by Morningstar, Inc. Morningstar Information Expressed in percentage terms, Morningstar s calculation of total return is determined by taking the change in price, reinvesting, if applicable, all income and capital gains distributions during that month, and dividing by the starting price. Reinvestments are made using the actual reinvestment price, and daily payoffs are reinvested monthly Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Issuing Company The Lincoln Stable Value Account is a fixed annuity contract issued by The Lincoln National Life Insurance Company, Fort Wayne, IN on Form SV20 05/04, Form SV90 05/04, or Form AR /09 and state variations thereof. Guarantees for the Lincoln Stable Value Account are based upon the claims-paying ability of the issuer. Fees and Expenses Fees and expenses reduce the assets allocated to your investments under the Plan, ultimately lowering the net rate of return. In addition, the fees and expenses of the investment options in your Plan will negatively impact the net rate of return of those investments. Higher fees, of course, will impact the performance of your investments. If the performance for an investment option reports a difference between the gross expense ratio and net expense ratio, please refer to the fund s prospectus (mutual funds) or disclosure statement (collective investment trust), which may provide an explanation of applicable fee waivers. Fee and expense information is based on information available as of 06/30/2013. Benchmarks A benchmark index gives the investor a point of reference for evaluating a fund's performance. Each investment option in the Plan's lineup is compared with a secondary index, based on its. For example, all funds in the large-growth category are compared with the Russell Top 200 Growth index. Investment Risk Foreign securities portfolios/emerging markets portfolios:portfolios that invest in foreign securities involve special additional risks. These risks include, but are not limited to: currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets can accentuate these risks. Sector portfolios: Portfolios that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks. Nondiversified portfolios: Portfolios that invest assets in a single issuer or a few issuers involve additional risks, including share price fluctuations, because of the increased concentration of investment. Small-cap portfolios:portfolios that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average and may be less liquid than larger companies. Mid-cap portfolios: Portfolios that invest in companies with market capitalization below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies. High-yield bond portfolios: Portfolios that invest in less-than-investmentgrade-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility and increased risk of default. REITs:The value of the shares of a REIT fund will fluctuate with the value of the underlying assets (real estate properties). There are special risk factors associated with REITs, such as interest rate risk and the illiquidity of the real estate market. Fund Restrictions Alliance Stable Value: There is a 20% restriction on the amount that can be transferred from this investment option in a 12-month period. Frequent trading policy: Transactions associated with market timing such as frequent, large, or short-term transfers among investment options can affect the underlying funds and their investments. Lincoln Financial therefore reviews the number of transfers that a participant makes within given periods of time to determine if any transfer attempts to capitalize upon shortterm movements in the equity markets (Market Timing Policy). If so, the participant s transfer activity will be subject to further scrutiny. Potential market timing or frequent trading may result in future trading restrictions, up to and including temporary (or permanent) revocation of telephone exchange privileges. Fund-specific restrictions: Fund companies may have their own policies and procedures with respect to frequent purchases and redemptions of their respective shares, which may be more or less restrictive than the frequent trading policies and procedures of other investment options and of Lincoln Financial s Market Timing Policy. For example, when funds adopt a purchase blocking policy and you transfer an amount in excess of the fund s imposed limit from that investment, you will be restricted from investing back into that investment for a specified period of time. For more information on frequent purchase and redemption policies, please refer to the fund s prospectus or similar document.

2 Performance and fee overview International Stock American Funds EuroPacific Gr A 2 Foreign Large Blend MSCI ACWI Ex USA NR USD Fund ID Incpt. Date YTD AEPGX 04/ One Year Prince William County Schools Supplemental Retirement Plan Average Annual Total Returns as of 06/30/ Three Years Five Years Ten Years Since Incpt. Gross Fees Net Oppenheimer Global Y 2 World Stock MSCI World NR USD OGLYX 11/ U.S. Stock AllianzGI NFJ Dividend Value Admin Large Value Russell 1000 Value TR USD ANDAX 05/ AllianzGI NFJ Small-Cap Value Admin 1 Small Value Russell 2000 Value TR USD PVADX 11/ American Funds Washington Mutual A Large Value Russell 1000 Value TR USD AWSHX 07/ MainStay Large Cap Growth R1 Large Growth Russell 1000 Growth TR USD MLRRX 04/ Morgan Stanley Inst Mid Cap Growth I 1 Mid-Cap Growth Russell Mid Cap Growth TR USD MPEGX 03/ Perkins Mid Cap Value T 1 Mid-Cap Value Russell Mid Cap Value TR USD JMCVX 08/ Prudential Jennison Small Company Z 1 Small Growth Russell 2000 Growth TR USD PSCZX 03/ Vanguard Institutional Index I 5 Large Blend Russell 1000 TR USD VINIX 07/ Balanced/Allocation Invesco Equity and Income Y 3 Moderate Allocation Morningstar Moderately Aggr Target Risk ACETX 12/ Bond PIMCO Total Return Instl 4 Intermediate-Term Bond Barclays US Govt/Credit 5-10 Yr TR USD PTTRX 05/ Vanguard Total Bond Market Index I 4,5 Intermediate-Term Bond Barclays US Govt/Credit 5-10 Yr TR USD VBTIX 09/ Cash/Stable Value Alliance Stable Value 6 Current rate of return: 3.00% Term: Quarterly Guaranteed Minimum Interest Rate: 3.00% 05/ Morningstar. All Right Reserved. All Data and information is gathered from accurate sources but is not warranted to be correct, complete, or accurate.

3 Risk-Based Disclosures 1 Funds that invest in small and/or mid-size company stocks typically involve greater risk, particularly in the short term, than those investing in larger, more established companies. 2 Investing internationally involves risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting and the limited availability of information. 3 Asset allocation does not ensure a profit, nor protect against loss in a declining market. 4 The return of principal in bond portfolios is not guaranteed. Bond Portfolios have the same interest rate, inflation, credit, prepayment and market risks that are associated with the underlying bonds owned by the fund (or account). 5 An index is unmanaged, and one cannot invest directly in an index. 6 The Lincoln Stable Value Account is a fixed annuity contract issued by The Lincoln National Life Insurance Company, Fort Wayne, IN on Form SV20 05/04, Form SV90 05/04, or Form AR /09 and state variations thereof. Guarantees for the Lincoln Stable Value Account are based upon the claims-paying ability of the issuer.

4 Investment option profile disclosures Sample Small Cap Equity Equity Fund SA24 Profile Small Growth Investment Strategy The investment seeks to provide maximum long-term total return. The portfolio's investment objective is to exceed the total return of the Russell 2000 Growth Index and provide superior return relative to a universe of similar managers. The portfolio purchases stocks of small companies having the potential to grow rapidly and produce superior returns. Small cap companies generally are those between $200 million and $2 billion in market capitalization. The portfolio manager looks for stocks of companies that it expects to benefit from trends within the economy, the political arena and society at large. 4 5 Composition as of U.S. Stocks 86.4 Non-U.S. Stocks 6.4 Cash 7.2 Top 5 Holdings as of Weight Watchers International, Inc Polycom, Inc VeriFone Systems, Inc SBA Communications Corporation 4.24 J2 Global Communications, Inc Total Number of Stock Holdings 29 Annual Turnover Ratio %. Total Fund Assets ($mil) Fund Inception Date Portfolio Manager Jane Gerald Sample S. Frey Morningstar Style Box as of Giant 0.00 Large 3.41 Medium Small Micro 8.17 Morningstar Super Sectors as of Cyclical Sensitive Defensive Risk Measures as of Port Avg Rel S&P 500 Rel Cat 3 Yr Std Dev Yr Beta Yr Alpha Sample Delaware Equity Lincoln LLCInvestment Advisors 1 The is a system of grouping funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio statistics and compositions over the past three years). 2 Investment Strategy The investment strategy describes the goal of the investment option, as well as how it directs investments to achieve this goal. 3 Gives investors a sense of best and worst case scenarios based upon an investment s actual performance history. An overall risk assessment and its category average are clearly illustrated, while explanatory text explains an investment s price fluctuations relative to the market and other investments. 4 Portfolio Composition Breakdown of the fund s portfolio holdings into general investment classes: Stocks, Bonds, Cash, and Other. It also includes the percentage of foreign stocks in the portfolio. 5 Top 5 Holdings The fund s top portfolio holdings, listed as a percentage of total fund assets. 6 Morningstar Style Box TM The Morningstar Style Box reveals a fund s investment strategy as of the date noted on this report. For equity funds the vertical axis shows the market capitalization of the long stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond s effective duration. For corporate and municipal bonds, Morningstar surveys credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by a Nationally Recognized Statistical Rating Organization (NRSRO). If two NRSROs have rated a security, fund companies are to report the lowest rating to Morningstar. If a rating is unavailable or unpublished, then the security or issuer is categorized as Not Rated/Not Available. US Government Securities issued by the US Treasury or US Government Agencies are included in the US Government category. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-totime. 7 Morningstar Sectors The Morningstar Sectors divide the economy into three primary sectors: the Information Economy, the Service Economy, and the Manufacturing Economy, in addition to 12 industry groupings. 8 Risk Measures Beta is a measure of a fund s sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. Alpha measures the difference between a fund s actual returns and its expected performance, given its level of risk (as measured by beta). Standard deviation is a statistical measure of the volatility of the fund s returns.

5 Alliance Stable Value F Stable Value... The primary investment objective is to maximize after- tax GAAP investment income net of cost of capital consistent with the long-term preservation of capital. Strong consideration is given to credit quality, required surplus, liquidity, interest rate risk, taxes, and competitive crediting rates. The overall investment strategy is executed within the context of prudent asset/liability management (ALM) and the constraints of the applicable law and regulation. Overall, the portfolio is managed to achieve an average quality of A to A-. We see to it that the portfolio has adequate diversification by limiting the amount of investments in any asset class, sector, industry or issuer in the market. We also ensure that the portfolio has adequate liquidity in order to fulfill any unanticipated cash needs. Risk is further limited by restrictions on below investment grade securities and equity investments. Notes For any investment option in the plan, including an option that is part of a model, you may obtain a prospectus or similar document by requesting one from your employer, visiting your plan s web site, or calling a Lincoln Financial representative at Composition as of Synthetic GICs 0.0 Traditional GICs 0.0 Cash 0.0 Other What do Stable Value Funds invest in? Stable value funds tend to invest in high-quality bonds with short- to intermediate-term maturities. They also purchase insurance contracts which aim to provide price stability on a day-to-day basis. This guaranteed account is a group annuity contract with a guarantee of principal and interest provided by Lincoln. Morningstar Style Box as of Ltd Mod Ext High Med Low Fund Inception Date Total Fund Assets ($mil) 78, Portfolio Manager Management Team Macquarie Group. Issuer Lincoln Financial Group Risk: Below Average AllianzGI NFJ Dividend Value Admin ANDAX... Large Value QQQ Average Average Out of 1047 Large Value funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks long-term growth of capital and income. The fund normally invests at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies that pay or are expected to pay dividends. It normally invests primarily in common stocks of companies with market capitalizations greater than $3.5 billion. The fund may invest in real estate investment trusts (REITs) and in non-u.s. securities, including emerging market securities. Composition as of U.S. Stocks 83.2 Non-U.S. Stocks 13.2 Cash 3.6 Top 5 Holdings as of Wells Fargo & Co 4.14 Intel Corp 4.06 ConocoPhillips 3.97 JPMorgan Chase & Co 3.93 Total SA ADR Total Number of Stock Holdings 45 Annual Turnover Ratio % Total Fund Assets ($mil) 8, Fund Inception Date Portfolio Manager Benno J. Fischer Morningstar Style Box as of Giant Large Medium Small 0.00 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Allianz Global Inv Fund Mgmt LLC

6 AllianzGI NFJ Small-Cap Value Admin PVADX... Small Value QQQQ Above Average Low Out of 295 Small Value funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks long-term growth of capital and income. The fund normally invests at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies with smaller market capitalizations. It currently considers smaller market capitalization companies to be companies with market capitalizations of between $100 million and $4 billion. The fund normally invests significantly in securities of companies that the portfolio managers expect will generate income (for example, by paying dividends). Composition as of U.S. Stocks 90.7 Non-U.S. Stocks 2.6 Cash 4.3 Other 2.4 Top 5 Holdings as of Alliant Techsystems Inc 1.49 Triumph Group, Inc Cooper Companies 1.44 Bristow Group, Inc Valmont Industries, Inc Total Number of Stock Holdings 131 Annual Turnover Ratio % Total Fund Assets ($mil) 7, Fund Inception Date Portfolio Manager Paul A. Magnuson Morningstar Style Box as of Giant 0.00 Large 0.00 Medium Small Micro 3.62 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Allianz Global Inv Fund Mgmt LLC American Funds EuroPacific Gr A AEPGX... Foreign Large Blend QQQQ Average Below Average Out of 710 Foreign Large Blend funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks long-term growth of capital. The fund invests primarily in common stocks of issuers in Europe and the Pacific Basin that the investment adviser believes have the potential for growth. Growth stocks are stocks that the investment adviser believes have the potential for above-average capital appreciation. It normally invests at least 80% of net assets in securities of issuers in Europe and the Pacific Basin. The fund may invest a portion of its assets in common stocks and other securities of companies in countries with developing economies and/or markets. U.S. Stocks 0.1 Non-U.S. Stocks 93.2 Bonds 0.5 Cash 5.0 Other 1.2 Novo Nordisk A/S 3.57 SOFTBANK Corp 2.53 Samsung Electronics Co Ltd 2.37 Novartis AG 2.23 Bayer AG Total Number of Stock Holdings 299 Total Number of Bond Holdings 7 Annual Turnover Ratio % Total Fund Assets ($mil) 105, Fund Inception Date Portfolio Manager Stephen E. Bepler Morningstar Style Box as of Giant Large Medium 5.15 Small 0.06 Morningstar Super World Regions as of Americas 3.97 Greater Europe Greater Asia Yr Std Dev Yr Beta Yr Alpha Capital Research and

7 American Funds Washington Mutual A AWSHX... Large Value QQQ Average Below Average Out of 1047 Large Value funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks to produce income and to provide an opportunity for growth of principal consistent with sound common stock investing. The fund invests primarily in common stocks of established companies that are listed on, or meet the financial listing requirements of, the New York Stock Exchange and have a strong record of earnings and dividends. Its advisor strives to maintain a fully invested, diversified portfolio, consisting primarily of high-quality common stocks. U.S. Stocks 88.0 Non-U.S. Stocks 9.2 Cash 1.5 Other 1.3 Chevron Corp 5.41 Home Depot, Inc Boeing Co 4.20 Merck & Co Inc 3.87 Royal Dutch Shell PLC ADR Class B Total Number of Stock Holdings 108 Annual Turnover Ratio % Total Fund Assets ($mil) 62, Fund Inception Date Portfolio Manager Alan N. Berro Morningstar Style Box as of Giant Large Medium 3.72 Small 0.00 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Capital Research and Invesco Equity and Income Y ACETX... Moderate Allocation QQQQQ High Average Out of 789 Moderate Allocation funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks the highest possible income consistent with safety of principal; long-term growth of capital is an important secondary investment objective. Under normal circumstances, the fund invests at least 80% of its assets in equity and income securities at the time of investment. It invests primarily in income-producing equity securities (including common stocks, preferred stocks and convertible securities) and investment grade quality debt securities. The fund may invest up to 25% of its total assets in securities of foreign issuers. It may invest up to 15% of its total assets in real estate investment trusts (REITs). U.S. Stocks 58.4 Non-U.S. Stocks 5.8 Bonds 20.3 Cash 4.7 Other 10.9 JPMorgan Chase & Co 2.92 Citigroup Inc 2.28 US Treasury Note 2.375% General Electric Co 1.93 Invesco Short Term Inv Liq Assets Instl Total Number of Stock Holdings 75 Total Number of Bond Holdings 279 Annual Turnover Ratio % Total Fund Assets ($mil) 11, Fund Inception Date Portfolio Manager Thomas Bastian Morningstar Style Box as of (EQ) ; (F-I) Ltd Mod Ext Morningstar Super Sectors as of Cyclical High Med Low Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Invesco Advisers, Inc.

8 MainStay Large Cap Growth R1 MLRRX... Large Growth QQQ Average Average Out of 1488 Large Growth funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks long-term growth of capital. The fund invests at least 80% of its assets (net assets plus any borrowings for investment purposes) in large capitalization companies, which are companies having a market capitalization in excess of $4 billion at the time of purchase. The Subadvisor invests substantially all of the fund's investable assets in domestic securities. However, the fund is permitted to invest up to 20% of its net assets in foreign securities, which are generally securities issued by companies organized outside the U.S. and traded primarily in markets outside the U.S. Composition as of U.S. Stocks 94.9 Non-U.S. Stocks 3.8 Cash 1.3 Top 5 Holdings as of Union Pacific Corp 4.21 Google, Inc. Class A 3.98 Apple Inc 3.89 Visa, Inc Priceline.com, Inc Total Number of Stock Holdings 69 Annual Turnover Ratio % Total Fund Assets ($mil) 17, Fund Inception Date Portfolio Manager Clark J. Winslow Morningstar Style Box as of Giant Large Medium 8.47 Small 0.00 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha New York Life Investment Management LLC Morgan Stanley Inst Mid Cap Growth I MPEGX... Mid-Cap Growth QQQQ Above Average Above Average Out of 637 Mid-Cap Growth funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks long-term capital growth. The fund normally invests at least 80% of assets in common stocks of mid cap companies. It seeks to invest in high quality companies it believes have sustainable competitive advantages and the ability to redeploy capital at high rates of return. The fund may invest up to 25% of its net assets in securities of foreign issuers, including issuers located in emerging market or developing countries. It may invest in privately placed securities. In addition, the Portfolio may invest in convertible securities. It may utilize foreign currency forward exchange contracts. U.S. Stocks 74.9 Non-U.S. Stocks 20.4 Cash 1.4 Other 3.3 Motorola Solutions, Inc Edenred SA 3.66 Solera Holdings, Inc Brookfield Infrastructure Partners LP 3.20 Illumina, Inc Total Number of Stock Holdings 56 Annual Turnover Ratio % Total Fund Assets ($mil) 6, Fund Inception Date Portfolio Manager Dennis P. Lynch Morningstar Style Box as of Giant 0.00 Large Medium Small 6.88 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Morgan Stanley Investment Management Inc

9 Oppenheimer Global Y OGLYX... World Stock QQQQ Above Average Above Average Out of 759 World Stock funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks capital appreciation. The fund invests mainly in common stock of U.S. and foreign companies. It can invest without limit in foreign securities and can invest in any country, including countries with developing or emerging markets. However, the fund currently emphasizes its investments in developed markets such as the United States, Western European countries and Japan. It does not limit its investments to companies in a particular capitalization range, but primarily invests in midand large-cap companies. The fund normally will invest in at least three countries (one of which may be the United States). Composition as of U.S. Stocks 38.3 Non-U.S. Stocks 60.9 Cash 0.2 Other 0.5 Top 5 Holdings as of LM Ericsson Telephone Company 3.31 European Aeronautic Defence and Space NV 2.69 Google, Inc. Class A 2.36 ebay Inc 2.18 Sap AG Total Number of Stock Holdings 84 Annual Turnover Ratio % Total Fund Assets ($mil) 9, Fund Inception Date Portfolio Manager Rajeev Bhaman Morningstar Style Box as of Giant Large Medium Small 0.67 Morningstar Super World Regions as of Americas Greater Europe Greater Asia Yr Std Dev Yr Beta Yr Alpha OFI Global Asset Management, Inc. Perkins Mid Cap Value T JMCVX... Mid-Cap Value QQQ Below Average Low Out of 369 Mid-Cap Value funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks capital appreciation. The fund primarily invests in the common stocks of mid-sized companies whose stock prices the portfolio managers believe to be undervalued. It invests at least 80% of its net assets in equity securities of companies whose market capitalization falls, at the time of purchase, within the 12-month average of the capitalization range of the Russell Midcap Value Index. This average is updated monthly. The fund may invest, under normal circumstances, up to 20% of its net assets in securities of companies having market capitalizations outside of the aforementioned market capitalization ranges. U.S. Stocks 81.6 Non-U.S. Stocks 8.2 Cash 10.2 Jacobs Engineering Group 1.61 PPL Corp 1.50 Laboratory Corporation of America Holdings 1.44 Noble Energy Inc 1.29 Vodafone Group PLC ADR Total Number of Stock Holdings 125 Annual Turnover Ratio % Total Fund Assets ($mil) 11, Fund Inception Date Portfolio Manager Thomas M. Perkins Morningstar Style Box as of Giant 4.24 Large Medium Small 9.21 Micro 0.44 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Janus Capital Management LLC

10 PIMCO Total Return Instl PTTRX... Intermediate-Term Bond QQQQQ High Average Out of 1005 Intermediate-Term Bond funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. The fund normally invests at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. It invests primarily in investment-grade debt securities, but may invest up to 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody's, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. Risk: Below Average In the past, this investment has shown a relatively small range of price fluctuations relative to other investments. Based on this measure, currently more than two-thirds of all investments have shown higher levels of risk. Consequently, this investment may appeal to investors looking for a conservative investment strategy. %Net U.S. Stocks 0.0 Non-U.S. Stocks 0.0 Bonds Cash Other Total Fin Fut Euro$ Cme 06/15/ Irs Usd 3mls/ s 03/18/15-16 Cme Fin Fut Euro$ Cme 12/14/ Pimco Fds Fin Fut Us 10yr Cbt 06/19/ Total Number of Stock Holdings 0 Total Number of Bond Holdings Annual Turnover Ratio % Total Fund Assets ($mil) 267, Fund Inception Date Portfolio Manager William H. Gross Morningstar Fixed Income Style Box as of Avg Eff Duration 4.73 Avg Eff Maturity 6.73 Not Avg Wtd Coupon 3.40 Available Avg Wtd Price. Credit Analysis: % Bonds Not Available Risk Measures as of Port Avg Rel LB Aggr Rel Cat 3 Yr Std Dev Yr Beta Yr Alpha Pacific Investment Management Co LLC Prudential Jennison Small Company Z PSCZX... Small Growth QQQ Average Average Out of 632 Small Growth funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks capital growth. The fund normally invests at least 80% of investable assets in equity and equity-related securities of small, less well-known companies that the investment subadviser believes are relatively undervalued. In deciding which stocks to buy, it uses a blend of both value and growth styles. The investment subadviser currently considers small companies to be those with a market capitalization less than the largest market capitalization of the Russell 2500 Index at the time of investment. Composition as of U.S. Stocks 96.0 Non-U.S. Stocks 2.1 Cash 1.9 Top 5 Holdings as of Rosetta Resources, Inc Prudential Core Invt Air Methods Corp Universal Health Services, Inc. Class B 1.82 White Mountains Insurance Group Ltd Total Number of Stock Holdings 162 Annual Turnover Ratio % Total Fund Assets ($mil) 2, Fund Inception Date Portfolio Manager John P. Mullman Morningstar Style Box as of Giant 0.00 Large 0.01 Medium Small Micro 9.24 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Prudential Investments LLC

11 Vanguard Institutional Index I VINIX... Large Blend QQQQ Above Average Average Out of 1381 Large Blend funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. U.S. Stocks 98.6 Non-U.S. Stocks 1.2 Cash 0.2 Apple Inc 2.97 Exxon Mobil Corporation 2.88 General Electric Co 1.72 Chevron Corp 1.65 Johnson & Johnson Total Number of Stock Holdings 502 Annual Turnover Ratio % 5.00 Total Fund Assets ($mil) 136, Fund Inception Date Portfolio Manager Donald M. Butler Morningstar Style Box as of Giant Large Medium Small 0.09 Morningstar Super Sectors as of Cyclical Sensitive Defensive Yr Std Dev Yr Beta Yr Alpha Vanguard Group, Inc. Vanguard Total Bond Market Index I VBTIX... Intermediate-Term Bond QQQ Average Below Average Out of 1005 Intermediate-Term Bond funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details. The investment seeks to track the performance of a broad, market-weighted bond index. The fund employs an indexing investment approach designed to track the performance of the Barclays U.S. Aggregate Float Adjusted Index. It invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. The fund invests at least 80% of assets in bonds held in the index. It maintains a dollar-weighted average maturity consistent with that of the index, ranging between 5 and 10 years. Risk: Below Average In the past, this investment has shown a relatively small range of price fluctuations relative to other investments. Based on this measure, currently more than two-thirds of all investments have shown higher levels of risk. Consequently, this investment may appeal to investors looking for a conservative investment strategy. U.S. Stocks 0.0 Non-U.S. Stocks 0.0 Bonds 93.3 Cash 6.6 Other 0.1 CMT Market Liquidity Rate 5.90 US Treasury Bond 6.25% Fannie Mae Single Family TBA 3.5% US Treasury Note 0.375% 0.63 US Treasury Note 1% Total Number of Stock Holdings 0 Total Number of Bond Holdings Annual Turnover Ratio % Total Fund Assets ($mil) 93, Fund Inception Date Portfolio Manager Kenneth Volpert Morningstar Fixed Income Style Box as of Avg Eff Duration 5.31 Avg Eff Maturity 7.30 Avg Wtd Coupon 3.77 Avg Wtd Price Ltd Mod Ext High Med Low Credit Analysis: % Bonds as of AAA 72 BB 0 AA 5 B 0 A 12 Below B 0 BBB 11 Not Rated 0 Risk Measures as of Port Avg Rel LB Aggr Rel Cat 3 Yr Std Dev Yr Beta Yr Alpha Vanguard Group, Inc.