Investment Fund Summary

Investment Fund Summary If you choose the FRS Investment Plan, you need to make decisions about how your retirement plan account balance will be invested. Reading this brochure is a great way to start learning about the different funds that are available to you. You should also review the Fund Profiles and the Annual Fee Disclosure Statement posted in the Investment Funds section on MyFRS.com before you select any investment funds or make an election. The asset class descriptions below are general in nature and should not be relied on as your sole source of information regarding a specific fund(s). How to Build an Investment Portfolio When making your investment decisions, be sure you take advantage of all the resources available under the MyFRS Financial Guidance Program.. Review this brochure to get a quick overview of the funds available to you in the FRS Investment Plan. 2. Contact the MyFRS Financial Guidance Program by phone at -866-446-9377, Option 2, or go online to MyFRS.com to get help figuring out your retirement goals and developing a portfolio that fits your goals. 3. Use the CHOICE SERVICE or 2 nd Election CHOICE SERVICE on MyFRS.com to receive guidance on specific investment funds that best fit your needs. And, once you join the Investment Plan, you ll have access to the online ADVISOR SERVICE, which provides you with ongoing personalized investment guidance to keep you on track toward reaching your retirement goals. 4. For more detailed investment fund information, investigate the fund information on MyFRS.com by clicking on the Investment Funds section. Once you select a fund, you will be able to explore the different levels of information shown below. Contents Investment Funds at a Glance...3 Quick Summary: How to Read the Investment Fund Tables...4 Investment Fund Tables...5 Appendix: Additional Information About the Investment Fund Tables... Retired? FRS Investment Plan retirees can choose from a variety of low-cost distribution options. Overview Tab Summary of the fund s Lipper classification, rating, objective, annual fees, historical performance, and relative risk. Lipper Ratings Tab Lipper ratings for consistent return, total return, preservation of capital, and expenses relative to other similar funds. Risk Tab Best and worst 3-month returns and various measures of risks. Management Tab Investment objective, strategy, risk, fund facts, and fund management. Performance Tab Rolling period and calendar year total returns, and growth of a $0,000 investment. Fees Tab Summary of the fund s expenses. Portfolio Tab Top holdings, portfolio characteristics, asset allocation, top industries, and geographic breakdown. PAGE 2

Investment Funds at a Glance The Performance Summary is organized by these asset classes: money market funds, real assets funds, bond funds, U.S. stock funds, and foreign and global stock funds. A special asset class, Retirement Date Funds, provides a diversified mixture of various asset classes. A Self-Directed Brokerage Account (SDBA) is also available. Asset classes are groups of similar investments whose values react to changes in the economy the same basic way. Organizing funds according to asset classes is a way to simplify how you invest and improve the odds of meeting your retirement goals. Investing in a mix of asset classes (also called diversifying ) helps you control your risk, because the different asset classes typically react to market volatility in different ways.* Investing in a mix of asset classes, or diversifying, helps to control your risk. This is the common-sense notion of not putting all of your eggs in one basket. How you divide your account among asset classes is the most important factor in determining risk and return for your investments. Experts say that 90% of your investment success will be based on getting the right mix of investments in your retirement savings. The MyFRS Financial Guidance Program can guide you to the right mix of investments for your personal situation and can minimize unnecessary cost and risk. The FRS Investment Plan features 2 funds you can choose from, including funds that are spread across five asset classes, and 0 Retirement Date Funds that are mixtures of various asset classes. A Self-Directed Brokerage Account is also available. Here are the choices available to you: Investment Funds You Can Choose Asset Retirement Self-Directed Class Funds Date Funds Brokerage Account These funds invest in portions of an These funds invest in multiple Allows you to invest ASSET CLASS asset class and can help you form the basis asset classes and are good in thousands of of and fine-tune your portfolio for one-stop shopping different investments Money Market Real Assets Bonds U.S. Stocks Foreign/Global Stocks fund fund 3 funds 3 funds 3 funds 0 Retirement Date Funds that target the year you expect to retire * Note that there can be risk in holding a large portion of your account balance in a single fund (unless that fund is a reasonably diversified fund, such as a Retirement Date Fund). For further information about diversifying your account, please call the MyFRS Financial Guidance Line at -866-446-9377, Option 2, or call the Telecommunications Relay Service (TRS 7), or visit MyFRS.com. Additional information about investing and diversification can be found on the U.S. Department of Labor s website at www.dol.gov/ebsa/investing.html. The SDBA is for experienced investors who want the flexibility to invest in a variety of options beyond those available in the FRS Investment Plan s primary investment funds. Investment Fund Types Tables in this brochure list all available investment funds by asset class. Funds can also be classified by type: mutual fund or institutional fund. Mutual funds are public funds that combine the money of many different investors to buy stocks, bonds, and other securities. A mutual fund s operation and fees are governed by a legal document known as a prospectus, which is approved by its board of directors. Anyone can buy mutual funds, and many people in the U.S. own mutual funds. However, mutual funds actually hold only about 20% of all money invested in retirement plans (including IRAs). Mutual funds are noted as MF in the Objective and Type column of the fund tables. Institutional funds are private funds specially created by investment management companies (banks, insurance companies, brokers, and mutual fund advisory companies) to offer investment services to retirement plans or wealthy individuals at wholesale cost (which is lower than the cost of funds sold to the general public). Institutional funds represent about 80% of all retirement plan investments in the country. The FRS funds are examples of institutional funds, but others are available in the Investment Plan. The operations and fees of the institutional funds in the FRS Investment Plan are established by contracts with the FRS. Their fees will generally decline as their asset size grows, according to current contracts. Institutional funds are noted as IF in the fund tables. PAGE 3

Quick Summary: How to Read the Investment Fund Tables The investment fund information in this brochure is organized into a series of tables. Here s a brief description of the information you ll find in these tables, column by column and why this information is important. For a more complete description, see the Appendix on page. Fund Name Investment Manager(s) Marketing Company Objective Type Annual Fees Long-Term Fees* Average Result* Downside Result* Upside Result* Investment Marketing Objective Annual Term Result in Result in Result in Manager(s) Company and Type Fees Fees 0 Years 0 Years 0 Years The companies that manage the money in each investment fund by buying and selling stocks and bonds. Why it s important: Shows you who s managing your money and how many managers are involved. The company that markets and/or distributes the fund (different from the investment manager). Why it s important: Tells you what company (if any) offered this fund to the FRS. FRS labeled funds don t have marketing companies, because the FRS contracts directly with the investment managers. The objective is different for each asset class and shows the type of investment on which each fund focuses. Why it s important: Tells you what the fund invests in. Building a retirement strategy around a group of similar-type funds is, in effect, putting all your eggs in one basket and can be risky when different markets have significant swings in value as economic conditions change. The way the fund is organized and operates (mutual fund [MF] or institutional fund [IF]). See the Investment Fund Types box on page 3. Why it s important: You may not recognize the names of some of the institutional funds. However, these funds are well known in the pension industry. They were chosen for their good performance, rigorous investment strategies, and low cost. Current annual fees, assuming a $,000 investment in each fund. Investment fees are deducted from your account based on a percentage of the dollar amount of your account. Why it s important: These fees reduce your account balance. You may want to consider selecting funds with lower fees. The total fees that would be charged for a $,000 investment held for 30 years, based on current annual fees. Why it s important: You should plan for the long term. You could own these funds up to retirement and beyond. Also, even small fees compound over time and have a large impact on your nest egg. What a $,000 investment might grow to in 0 years (after fees) if the fund has average performance. Why it s important: This figure gives you an idea of possible results you can expect if you choose to invest in this fund. You can compare different funds to see whether their predicted results are similar. What a $,000 investment might grow to in 0 years (after fees) if the fund has poor performance. Why it s important: This figure gives you an idea of results you might expect if financial markets are performing poorly. A large difference between the average result and the downside result indicates that the fund is more sensitive to changes in the economy and therefore has a greater potential for short-term loss. What a $,000 investment might grow to in 0 years (after fees) if the fund has strong performance. Why it s important: This figure gives you an idea of results you might expect if financial markets are performing well. * These figures are shown in today s dollars so that you can make a realistic comparison of the different funds in terms of what you could buy with the results today, rather than in the future when inflation will decrease the value of your account. PAGE 4

Investment Fund Tables The following tables provide important information about the investment funds offered under the FRS Investment Plan. The tables are arranged by asset class. For more detailed information, see the online investment guide on MyFRS.com. If you have questions about these tables or the online guide, please call the MyFRS Financial Guidance Line. Retirement Date Funds These funds are particularly good for one-stop shopping. Each Retirement Date Fund is a diversified portfolio of other FRS Investment Plan funds and uses an asset allocation concept called target date funds. The mix of funds in each Retirement Date Fund (see the allocation table on page 0) is based on the amount of time you have before retirement, and the mix gradually changes as you approach retirement. This gradual change follows a careful investment strategy called a glide path. Each Retirement Date Fund s glide path was developed for the FRS by a global investment consulting firm and a fiduciary to the FRS. For more information, see the Retirement Date Funds brochure in the Investment Funds section on MyFRS.com. Management Type Management Type is the type of investment strategy used by a fund. Passively Managed (or index) funds follow a strategy to produce the same level and pattern of investment returns generated in a market index (such as the S&P 500 index) by buying and holding the same securities as the index itself. Index funds carry a very low fee. Actively Managed funds try to predict securities price movements in order to beat a market index. The higher fees associated with actively managed funds are used to support the research needed to predict market changes. Investment Marketing Objective Annual Term Result in Result in Result in Retirement Date Funds Manager(s) Company and Type Fees Fees 0 Years 0 Years 0 Years FRS 2055 Retirement None Retirement Date; $0.80 $24 $,700 $800 $3,300 The Date Fund (2055) Retirement FRS 2050 Retirement Date Funds None Retirement Date; $0.80 $24 $,700 $800 $3,300 Date Fund (2050) (RDFs) are managed FRS 2045 Retirement None Retirement Date; $0.80 $24 $,700 $800 $3,300 by multiple Date Fund (2045) investment FRS 2040 Retirement managers. None Retirement Date; $0.80 $24 $,700 $800 $3,300 Date Fund (2040) The following managers FRS 2035 Retirement None Retirement Date; $0.80 $24 $,700 $800 $3,200 manage some Date Fund (2035) of the assets FRS 2030 Retirement in the RDFs: None Retirement Date; $.00 $30 $,600 $900 $2,900 Date Fund (2030) American Beacon, FRS 2025 Retirement None Retirement Date; $.20 $37 $,600 $900 $2,700 BlackRock, Date Fund (2025) Prudential, FRS 2020 Retirement Pyramis, None Retirement Date; $.40 $43 $,500 $900 $2,500 Date Fund (2020) Quantitative FRS 205 Retirement Management None Retirement Date; $.60 $49 $,400 $900 $2,300 Date Fund (205) Associates, Principal, and FRS Retirement Wells Capital. None Retirement Date; $.70 $52 $,500 $,000 $2,200 Income Fund (2000) Fees and expenses are only one of several factors that you should consider when making investment decisions. PAGE 5

Money Market Funds These funds invest in short-term securities (financial instruments or obligations) that are high-quality and can be sold quickly with little loss of value. The funds have limited risk of declining in value; however, over the long term, returns have been modest, and may not keep pace with inflation. Money market funds are not FDIC-insured or guaranteed. Investment Marketing Objective Annual Term Result in Result in Result in Money Market Fund Manager(s) Company and Type Fees Fees 0 Years 0 Years 0 Years FRS Money BlackRock None Money $0.60 $8 $,200 $,000 $,300 Market Fund (60) Market; IF = Passively Managed Type = Actively Managed Type Fees and expenses are only one of several factors that you should consider when making investment decisions. Real Assets Funds These funds invest in a diversified array of assets that may help offset inflationary pressures. These assets include but are not limited to U.S. Treasury inflation-linked securities, commodities, real estate investment trusts, gold, and other securities. The funds seek long-term real (net of inflation) returns to preserve the future purchasing power of accumulated assets. You could lose money over short or long periods by investing in this fund, and returns may not keep pace with inflation. Investment Marketing Objective Annual Term Result in Result in Result in Real Assets Fund Manager(s) Company and Type Fees Fees 0 Years 0 Years 0 Years FRS Real Assets BlackRock, Principal None Real $4.50 $45 $,400 $900 $2,000 Fund (300) Financial Group Assets; IF = Passively Managed Type = Actively Managed Type Fees and expenses are only one of several factors that you should consider when making investment decisions. The Difference Between Bonds and Stocks A bond is a loan to a company that the company repays to you with interest. A stock is a share of ownership in a company s assets (property such as buildings, machines, and bank accounts). A stock also includes a right to receive dividends (to share in future profits). If the company fails (goes bankrupt) and you re a bondholder, you become a creditor to the company and can sue to get your money back. However, if you re a stockholder, you get your money (your share of the assets) back only if there s anything left to distribute after all creditors (including bondholders) are paid off first. Also, profits tend to rise and fall with the economy, sometimes sharply. So bonds are generally considered less risky than stocks over the short term. PAGE 6

Bond Funds These funds invest primarily in bonds, which are like IOUs: a company or government agency borrows money and pays it back with interest to the bondholder (the entity making the loan). The quality of a bond is reflected in the credit rating of the company or agency that issues the bond. The short-term risk of bond funds is relatively low; however, over time, the value of a bond is affected by interest rates, inflation, and other factors. When inflation or interest rates go up, the value of bonds goes down because they pay a fixed rate of interest (the market sees other investments as being more attractive). Therefore, bonds and bond funds don t always protect the value of your retirement savings against inflation. Investment Marketing Objective Annual Term Result in Result in Result in Bond Funds Manager(s) Company and Type Fees Fees 0 Years 0 Years 0 Years FRS U.S. Bond BlackRock, None Broad $0.50 $5 $,300 $,000 $,600 Enhanced Index Prudential Investment Bond; IF Fund (80) Management, Inc. Pyramis Intermediate Pyramis Global Fidelity Intermediate $.22 $37 $,300 $,000 $,500 Duration Pool Advisor Bond; IF Fund (90) FRS Core Plus BlackRock, None Broad $2.40 $75 $,300 $,000 $,700 Fixed Income Prudential Investment Bond; IF Fund (30) Management, Inc., Wells Capital = Passively Managed Type = Actively Managed Type Fees and expenses are only one of several factors that you should consider when making investment decisions. The MyFRS Financial Guidance Program Use It No Matter Which Plan You Choose Call the MyFRS Financial Guidance Line at -866-446-9377, Option 2 (TRS 7) Visit MyFRS.com Retirement and financial planning workshops are offered at some locations throughout the state. PAGE 7

U.S. Stock Funds These funds invest primarily in equity shares or stocks issued by U.S. companies. The short-term risk of stocks has been much higher than bonds. However, over longer periods of time, stocks have generally experienced higher returns than bonds, which is one of the main reasons that stocks are typically recommended for retirement investing. Some risk is necessary to achieve long-term investment growth. Investment Marketing Objective Annual Term Result in Result in Result in U.S. Stock Funds Manager(s) Company and Type Fees Fees 0 Years 0 Years 0 Years FRS U.S. Stock BlackRock None Broad $0.20 $6 $,700 $700 $3,900 Market Index All Cap; IF Fund (20) FRS U.S. Large BlackRock, None Broad Large $3.70 $8 $,700 $700 $3,900 Cap Equity Fidelity Investments, U.S. Equity; Fund (320) Jennison, Quantitative blend of IF Management Associates and MF FRS U.S. American Beacon, None Broad $6.30 $209 $,700 $600 $4,00 Small/Mid Cap Quantitative Small/Mid Equity Fund (330) Management Associates, U.S. Equity; T. Rowe Price blend of IF Associates, Inc. and MF = Passively Managed Type = Actively Managed Type Fees and expenses are only one of several factors that you should consider when making investment decisions. PAGE 8

Foreign and Global (Foreign and U.S.) Stock Funds These funds invest primarily in equity shares or stocks issued by foreign companies. Compared to U.S. stocks, foreign stocks are affected by additional risk factors, such as foreign laws and regulations, differences in accounting practices, political risk (foreign governments are sometimes unstable), and currency risk (differences in the relative value of domestic and foreign money). Over the long term, foreign stocks have not experienced as high a return as U.S. stocks, but they have provided diversification benefits. Foreign and Global Investment Marketing Objective Annual Term Result in Result in Result in Stock Funds Manager(s) Company and Type Fees Fees 0 Years 0 Years 0 Years FRS Foreign BlackRock None Broad $0.30 $9 $,700 $700 $3,900 Stock Index Foreign/Global Fund (200) 2 Stock; IF American Funds Capital Research and VALIC Broad $4.90 $59 $,600 $700 $3,600 EuroPacific Growth Management Foreign/Global Fund (220) 2 Company Stock; MF American Funds Capital Research and Prudential Broad $4.90 $59 $,700 $700 $3,600 New Perspective Management Foreign/Global Fund (20) 2 Company Stock; MF = Passively Managed Type = Actively Managed Type Fees and expenses are only one of several factors that you should consider when making investment decisions. 2 These funds may impose restrictions on your ability to withdraw your money or transfer it to other funds in the Investment Plan. Please refer to the Excessive Fund Trading Policy and fund details available on MyFRS.com or by calling the MyFRS Financial Guidance Line. Self-Directed Brokerage Account A Self-Directed Brokerage Account (SDBA) is available. The SDBA allows you to invest in thousands of different investments in addition to the Investment Plan s primary investment funds. An SDBA is not suitable for all members, and you assume the full risk and responsibility for the investments you select. Additional information on the SDBA is available in the Investment Funds section on MyFRS.com. The MyFRS Financial Guidance Program Use It No Matter Which Plan You Choose Call the MyFRS Financial Guidance Line at -866-446-9377, Option 2 (TRS 7) Visit MyFRS.com Retirement and financial planning workshops are offered at some locations throughout the state. PAGE 9

Composition of the Retirement Date Funds The asset mix and the basis for determining the Retirement Date Fund fees are shown in the following table. The mix gradually changes over time and becomes more conservative as the retirement date gets nearer. Each Retirement Date Fund s asset mix and glide path (gradual change in mix as retirement gets nearer) was developed for the FRS by a global investment consulting firm and a fiduciary to the FRS. Changes to the Retirement Date Funds will be posted on MyFRS.com. Retirement Date Funds Investment Fund Allocations and Fees Underlying Funds Investment Fund FRS FRS FRS FRS FRS FRS FRS FRS FRS FRS Income (Fees per $,000) Category 2055 2050 2045 2040 2035 2030 2025 2020 205 Fund FRS Core Plus Fixed Income Fund ($2.40) Bonds 8% 8% 8% 9% % 3% 4% 4% 4% 4% FRS U.S. Bond Enhanced Bonds 4% 4% 4% 5% 6% 9% % 2% 4% 5% Index Fund ($0.50) Pyramis Intermediate Duration Pool Bonds 2% 2% 2% 3% 4% 5% 6% 7% 8% 8% Fund ($.22) FRS U.S. Stock Market U.S. Stocks 42% 42% 42% 4% 38% 33% 29% 23% 7% 4% Index Fund ($0.20) FRS U.S. Small/Mid Cap U.S. Stocks 3% 3% 3% 3% 3% 3% 2% 2% % % Equity Fund ($6.30) FRS Foreign Stock Index Fund ($0.30) Foreign Stocks 40% 40% 40% 39% 36% 32% 27% 22% 6% 4% FRS Real Assets Fund ($4.50) Real Assets 2% 2% 2% % 3% 6% 2% 20% 30% 33% Current Weighted Average Fees $0.80 $0.80 $0.80 $0.80 $0.80 $.00 $.20 $.40 $.60 $.70 The fund percentages are as of October 205. Column percentages may not add up to 00% due to rounding. About Financial Engines and Their 0-Year Estimates of Investment Fund Results Financial Engines is a registered trademark of Financial Engines, Inc. Advisory services provided through Financial Engines Advisors L.L.C., a federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Financial Engines is held to high standards of independence, expertise, and conduct on behalf of members in both FRS retirement plans. You can read more about their responsibilities in the Financial Guidance and Advice Policy available on MyFRS.com or through the toll-free MyFRS Financial Guidance Line. Their services are based on the work of Nobel Prize winner Professor Bill Sharpe. More information about Financial Engines can be found in the Financial Engines Disclosure Statement that is included in the legal documents mailed to you, or in Financial Engines Form ADV, Part II, available from Financial Engines by writing to Financial Engines at 050 Enterprise Way, 3 rd Floor, Sunnyvale, CA 94089, Attn: Compliance. Financial Engines does not guarantee future results. The average result, downside result, and upside result assume a hypothetical investment of $,000, net of any applicable fees or charges. The average result, downside result, and upside result are not guarantees of future results, but are only reasonable estimates based upon forward-looking models of the economy and securities markets, which use such data as historical returns, historical correlations, expected growth rates, and calculated-risk premiums. Since past performance is not always an accurate predictor of the future, and reliance on historical and current data necessarily involves certain inherent limitations, you must understand that the future performance estimates are only a tool to be used in evaluating your portfolio and are not a substitute for your informed judgment. Fees and styles may change. PAGE 0

Appendix: Additional Information About the Investment Fund Tables Investment Manager(s) are the private-sector companies responsible for the day-to-day operation of buying and selling the investments held inside the FRS Investment Plan funds. These private-sector companies are banks, insurance companies, brokers, and firms that advise and help run mutual funds and institutional funds. The FRS funds use multiple specialist investment managers to control risk. Marketing Companies are the private-sector companies that market and/or distribute the investment funds to pension funds, separately from the funds investment management. The marketing companies also provide some backoffice services. The FRS funds do not have a marketing company because the investment managers are under direct contract with the FRS, and a separate company (Aon Hewitt) performs all back-office functions. Unlike mutual funds, the FRS funds are available only through the FRS Investment Plan. Objectives are different for each asset class. Broad funds cover the vast majority of the market in an asset class and should meet the needs of most investors. Other descriptions, like intermediate, indicate the fund(s) cover only a portion of the market in an asset class. Retirement Date Funds cover multiple asset classes. Index Funds follow a strategy to produce the same level and pattern of investment returns generated in a market index (like the Russell 3000 Stock Market Index) by buying and holding the same securities as the index itself. Index funds deliver market returns at very low cost. In contrast, the investment managers of actively managed funds try to select securities whose longer-term price movements will beat a market index. These funds have higher fees to support the research needed to select these securities. Type of investment fund: mutual fund or institutional fund (see the box at the bottom of page 3). Because mutual funds have broader objectives and investment guidelines, mutual fund investment managers typically have the ability to take more risk when they try to beat the market. Their boards of directors can change fees without the FRS s permission. Institutional funds are lower-risk because institutional fund managers are subject to more stringent standards of care when investing on your behalf. Their fees will generally decline as their asset size grows, according to current contracts. Please refer to fund summaries and profiles for a full description of each fund s operations and risks. Annual Fees are the current fees the fund charges to cover its management, operating, and marketing expenses. The tables in this publication show the fees that would apply to a $,000 account (divide the annual fees shown by,000 to put them on a percentage basis). Actual fees are proportional to the amount you invest in that fund. For example, if the annual fee for a $,000 investment in a fund is $0.20 but you invest $0,000, you would be charged ($0,000 $,000) x $0.20, or $2 for a year. Fees may change in the future. Fees and expenses are only one of several factors that you should consider when making investment decisions. Continues on page 2 PAGE

Continued from page Long-Term Fees* are the value in today s dollars of the total fees that would be charged over 30 years, assuming a $,000 initial investment. Average Result* is an estimate in today s dollars of what an investment of $,000 today might grow to over a 0-year period. There is a 50% chance that $,000 would grow to this amount or more in 0 years. Downside Result* is an estimate in today s dollars of how poorly an investment of $,000 today might do over a 0-year period. There is a 5% chance that $,000 would decline to this amount or less in 0 years. Upside Result* is an estimate in today s dollars of how well an investment of $,000 today might do over a 0-year period. There is a 5% chance that $,000 would grow to this amount or more in 0 years. * These figures are shown in today s dollars so that you can make a realistic comparison of the different funds in terms of what you could buy with the results today, rather than in the future when inflation will decrease the value of your account. Examples of Fund Objectives for Different Asset Classes Bond Funds ( Maturity refers to length of time until a bond comes due and is repaid) Broad Bond invests in intermediate- and longer-maturity bonds issued by governments and corporations and those backed by mortgages and other loans. Intermediate Bond focuses on shorter-maturity bonds ( to 5 years) whose value does not fall as sharply when inflation or interest rates increase. Information Detailed information about all the investment funds is available by calling the MyFRS Financial Guidance Line toll-free at -866-446-9377, Option 2, or visiting MyFRS.com and clicking on Investment Funds. Note: The FRS Investment Plan is not designed to facilitate short-term excessive fund trading. Foreign and global investment funds are subject to a minimum holding period of 7 calendar days following any non-exempt transfers into such funds. You may also be subject to trading controls on other funds in the event that you are trading excessively. The Excessive Fund Trading Policy is available on MyFRS.com as described above. U.S. Stock Funds ( Cap short for capitalization refers to the dollar value of a company s total outstanding shares of stock) All-Cap 3,000 stocks, or 98% of the value of the stock market. Large-Cap,000 largest companies. Small/Mid Cap 2,500 smallest of the 3,000 all-cap companies. Broad Fund tracks both the value and growth segments of the U.S. stock market. Foreign and Global Stock Funds Foreign Stock invests primarily in stock markets outside the U.S., such as Europe, Japan, Australia, Asia, and Latin America, including emerging markets. Global Stock invests in both U.S. and foreign stocks. This Investment Fund Summary is intended for use in connection with the FRS Investment Plan, pursuant to Florida law, and is not intended for use by other investors. Sections 2.450(8) (b)4 and 2.450(5)(b), Florida Statutes, incorporate the federal law concept of participant control, established by regulations of the U.S. Department of Labor under Section 404(c) of the Employee Retirement Income Security Act of 974. If you exercise control over the assets in your Investment Plan account, including the Self-Directed Brokerage Account, pursuant to Section 404(c) regulations and all applicable laws governing the operation of the Investment Plan, no program fiduciary shall be liable for any loss to your account which results from your exercise of control. October 205 MyFRS Financial Guidance Program all rights reserved. FL3Q5 PAGE 2