Understanding Your Investment Choices

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1 Understanding Your Investment Choices Saving money is the first step to a secure financial future; inves ng those savings wisely to meet your individual re rement needs and goals is the second. As a member of the JRB Plan, you have many high quality Account Op ons from which to choose. They are offered in three Tiers, each of which is designed to meet specific investor goals. TIER I: For Those Who Do Not Want the Responsibility of Monitoring Their Accounts and Shi ing Funds as the Years Progress Life Cycle Funds Fidelity Freedom Funds are designed to meet the needs of those re ring at or near a specific date. The mix of Fidelity mutual funds in each fund is geared to return growth and income, with a degree of risk that is appropriate to the prospec ve re ree. Fund managers change the mix to meet the goals of the fund. Look for the fund name that most closely coincides with your an cipated re rement date. Fidelity Freedom Income Fund (FFFAX) (designed for those re red or near re rement): currently 19% Domes c Equity, 7% Interna onal Equity, 40% Investment Grade Fixed Income, 4% High Yield Fixed Income, 4% Infla on Protected Bonds, 25% Short Term Fixed Income. Fidelity Freedom 2010 Fund (FFFCX) currently 36% Domes c Equity, 14% Interna onal Equity, 31% Investment Grade Fixed Income, 4% High yield Fixed Income, 2% Infla on Protected Bonds, 10% Short Term Fixed Income. Fidelity Freedom 2020 Fund (FFFDX) currently 45% Domes c Equity, 18% Interna onal Equity, 25% Investment Grade Fixed Income, 4% High Yield Fixed Income, 4% Short Term Fixed Income. Fidelity Freedom 2030 Fund (FFFEX) currently 61% Domes c Equity, 25% Interna onal Equity, 6% Investment Grade Fixed Income, 4% High Yield Fixed Income. Fidelity Freedom 2040 Fund (FFFFX) currently 66% Domes c Equity, 26% Interna onal Equity, 1% Investment Grade Fixed Income, 4% High Yield Fixed Income Fidelity Freedom 2050 Fund (FFFHX) currently 66% Domes c Equity, 26% Interna onal Equity, 4% High Yield Fixed Income. Fidelity Freedom 2060 Fund (FDKVX) currently 66% Domes c Equity, 26% Interna onal Equity, 4% High Yield Fixed Income.

2 TIER II: For Those Who Wish to Manage Their Own Accounts For those who are comfortable taking a more ac ve role in managing their account alloca ons, the following funds offer a variety of growth, income, and risk characteris cs. Use them in a combina on that mirrors most closely your own personal financial goals. Stable Value With a Fixed Rate of Interest Israel Bond State of Israel Bonds are available for purchase in the Spring and Fall through our Recordkeeper. Israel Bonds may be purchased in the JRB Plan up to a limit of $25,000 per year. Stable Value With a Variable Rate of Interest Stable Value Interest Fund Seeks to preserve principal while earning interest income. Will try to maintain a stable $1 unit price; yield will fluctuate. Invests in high quality corporate bonds, government agencies, Treasury securi es, asset backed securi es, mortgage backed securi es and commercial mortgage backed securi es. Typically 1% to 3% of fund will be held in money market instruments. To decrease normal market fluctua ons, the fund will be wrapped by 3 to 5 wrap issuers (typically banks and insurance companies). Some exchange restric ons exist between the fund and compe ng funds. Bond Mutual Funds A bond mutual fund is a pool of bonds from several, or many, different companies and/or governmental agencies. When you buy a bond, or a share in a bond mutual fund, you are lending money to a corpora on or a government and you receive their IOU in return. Most bond funds pay interest each month. In a re rement account, these interest payments are used to purchase addi onal shares of the fund in your account. Metropolitan West Low Dura on Bond I (MWLIX) (Short Term Bond Fund) The investment seeks to maximize current income, consistent with preserva on of capital. The fund pursues its objec ve by inves ng, under normal circumstances, at least 70% of its net assets in highly rated fixed income securi es or unrated securi es that are determined by the Adviser to be of similar quality. It's benchmarked against the Bank of America/Merrill Lynch 1 3 Year U.S. Treasury Index, but the managers will invest heavily outside the index, and corporate bonds and MBS tend to soak up the bulk of this fund's assets.

3 Bond Mutual Funds (Con nued) American Century Infla on Adjusted Bond Inv (ACITX) (Infla on Protected Bond) The investment seeks total return and infla on protec on consistent with investment in infla on indexed securi es. The fund invests at least 80% of assets in infla on adjusted securi es including infla onindexed securi es issued by the U.S. Treasury, by other U.S. government agencies and instrumentali es, and by other, non U.S. government en es such as corpora ons. It may invest up to 20% of assets in tradi onal U.S. Treasury, U.S. government agency or other non U.S. government securi es that are not infla on indexed. Fidelity Investment Grade Bond (FBNDX) Seeks high level of current income. Normally invests at least 80% of assets in investment grade debt securi es of all types and repurchase agreements for these securi es. Fund is managed to have similar overall interest rate risk as Barclays Aggregate Bond Index. May use various techniques, such as buying and selling futures contracts, surveys, and exchange traded funds. Goldman Sachs US Mortgages A (GSUAX) The investment seeks a high level of total return consis ng of income and capital apprecia on. The fund normally invests at least 80% of its net assets plus any borrowings for investment purposes in securi es represen ng direct or indirect interests in or that are collateralized by adjustable rate and fixed rate mortgage loans or other mortgage related securi es of U.S. issuers. It may also invest in mortgage dollar rolls, securi es issued or guaranteed by the U.S. government, its agencies, instrumentali es or sponsored enterprises, asset backed securi es and foreign securi es. Fidelity Strategic Income (FSICX) (Mul sector Bond Fund) The fund seeks current income; capital apprecia on is a secondary considera on. The fund invests primarily in debt securi es, including lower quality debt securi es. It allocates its assets among high yield securi es, U.S. Government and investment grade securi es, emerging market securi es, and foreign developed market securi es and generally invests in the following propor ons: approximately 40% high yield, 30% U.S. Government and investment grade, 15% emerging market, and 15% foreign developed market securi es.

4 Balanced (Asset Alloca on) Mutual Fund A balanced, or asset alloca on, mutual fund invests in both stocks and bonds in various propor ons, depending upon the objec ves of the fund. Fidelity Puritan Fund (FPURX) Seeks income and capital growth consistent with reasonable risk. Invests in domes c and foreign issuers, approximately 60% in stocks and other equi es and the remainder in bonds and other debt securi es, including lower quality debt securi es. At least 25% invested in fixed income senior securi es (including debt securi es and preferred stock). May use various techniques, such as buying and selling futures contracts, swaps, and exchange traded funds. Stock por on fits Large Value category. Stock Mutual Funds: Large Cap Value JP Morgan Equity Income Select (HLIEX) Seeks current income through regular payment of dividends with the secondary goal of achieving capital apprecia on by inves ng primarily in equity securi es. Under normal circumstances, at least 80% of the Fund s Assets will be invested in the equity securi es of corpora ons that regularly pay dividends Invests primarily in common stock and real estate investment trusts (REITs). Socially Conscious (Large Cap Blend) Parnassus Equity Income Ins tu onal (PRILX) Invests primarily in undervalued large cap equity securi es with at least 75% of the assets normally invested in companies paying dividends Does not invest companies deriving significant revenue from alcohol, tobacco, weapons, nuclear power or gambling Seeks to invest in those companies that score well on corporate governance, employee benefits, stakeholder rela ons, products, environmental impact, and customer and supply chain rela onships

5 Stock Mutual Fund: Large Cap Blend T. Rowe Price Capital Opportunity (PRCOX) A empts to create a por olio with similar characteris cs to the Standard & Poor s 500 Stock Index (S&P 500 Index) with the poten al to provide excess returns rela ve to the Index. Uses a disciplined por olio construc on process whereby it weights each sector and industry approximately the same as the S&P 500 Index. May also purchase stocks that are not in the S&P 500 Index, but at least 80% of the fund s total assets will be invested in stocks that are in the Index at the me of purchase. The fund will generally remain fully invested (less than 5% in cash reserves) and seeks to be sector neutral when compared to the S&P 500 Index. Stock Mutual Funds: Large Cap Growth Fidelity Contrafund (FCNTX) Seeks capital apprecia on. Normally invests primarily in common stocks of domes c and foreign issuers. Invests in securi es of companies whose value it believes is not fully recognized by the public; uses growth or value stocks. May use various techniques, such as buying and selling futures contracts and exchange traded funds. Janus Research Fund (JAMRX) Seeks long term growth of capital, inves ng primarily in common stocks of companies of any size, both domes c and foreign. Trustees may change this objec ve without a shareholder vote. Investment in high yield/high risk bonds limited to less than 35% of assets. May invest in op ons, futures, forwards, swaps, and other types of deriva ves. May invest up to 15% of assets in illiquid investments.

6 Stock Mutual Funds: Mid Cap Value T. Rowe Price Mid Cap Value (TAMVX) Seeks to provide long term capital apprecia on by inves ng primarily in mid size companies that appear to be undervalued. Normally invests at least 80% of net assets in companies whose market capitaliza ons fall within the range of the S&P Midcap 400 Index or the Russell Midcap Value Index. Most assets are invested in U.S. common stocks, but foreign stocks, futures and op ons may also be purchased. Stock Mutual Funds: Mid Cap Blend Fidelity Low Priced Stock Fund (FLPSX) Invests in small and medium sized companies (those with market capitaliza ons in the smallest 30% of all U.S. companies). Seeks capital apprecia on. Inves ng in domes c and foreign issuers, normally invests at least 80% of assets in low priced stocks (priced at or below $35 per share). May also invest in stock not considered low priced. May use various techniques, such as buying and selling futures contracts and exchange traded funds. Stock Mutual Funds: Mid Cap Growth Goldman Sachs Small/Mid Cap Growth A (GSMAX) The investment seeks long term growth of capital Normally invests at least 80% of its net assets plus any borrowings for investment purposes in a diversified por olio of equity investments in small and mid cap issuers. It may invest up to 25% of its net assets in foreign securi es, including issuers in countries with emerging markets.

7 Stock Mutual Funds: Small Cap Blend Loomis Sayles Small Cap Value Re rement (LSCRX) Seeks long term growth of capital. Invests 80% of assets in equity securi es of undervalued companies within the capitaliza on range of the Russell 2000 index. May invest up to 20% of assets in foreign securi es. May invest in REITs, Rule 144A securi es, investment companies. May engage in foreign currency hedging transac ons, op ons and futures transac ons. Stock Mutual Funds: Interna onal Funds with a goal of capital growth that invest interna onally (excluding U.S.). Oakmark Interna onal I (OAKIX) The investment seeks long term capital apprecia on. The fund invests primarily in a diversified por olio of common stocks of non U.S. companies. It may invest in non U.S. markets throughout the world, including emerging markets. Ordinarily, the fund may invest in the securi es of at least five countries outside the U.S. There are no geographic limits on the fund's non U.S. investments, but the fund does not expect to invest more than 35% of assets in securi es of companies based in emerging markets.

8 TIER III: Index Array A type of mutual fund with a por olio constructed to match or track the components of a market index. Inves ng in an index fund is a form of passive inves ng. The primary advantage to such a strategy is the lower management expense ra o on an index fund. Index Bond Fund Vanguard Total Bond Market Index I (VBTIX) The investment seeks the performance of a broad, market weighted bond index. The fund employs and indexing investment approach designed to track the performance of the Barclays U.S. Aggregate Float Adjusted Index. The index represents a wide spectrum of public, investment grade, taxable, fixed income securi es in the United States including government, corporate, and interna onal dollar denominated bonds, as well as mortgage backed and asset backed securi es. Large Cap Equity Index Fund Fidelity Spartan U.S. Equity Index Fund Advantage (FUSVX) Normally invests at least 80% of assets in common stocks included in the S&P 500 Index (500 largest U.S. companies). Seeks to provide investment results that correspond to the total return (i.e., the combina on of capital changes and income) performance of common stocks publicly traded in the United States. Mid and Small Cap Equity Index Fund Fidelity Spartan Extended Market Index Advantage (FSEVX) The investment seeks to provide investment results that correspond to the total return of stocks of mid to small capitaliza on United States companies. The fund normally invests at least 80% of assets in common stocks included in the Dow Jones U.S. Comple on Total Stock Market Index which represents the performance of stocks of mid to small capitaliza on U.S. companies. Interna onal Equity Index Fund Vanguard Total Intl Stock Index (VTSNX) seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in the major markets of Europe and the Pacific region. designed to track the performance of the MSCI EAFE Index, which includes approximately 940 common stocks of companies located in Europe, Australia, Asia, and the Far East.