diversified investors intermediate/long horizon

The investment fact sheets must be accompanied by thisdisclosure statement. The performance data given representspast performance and should not be considered indicative offuture results. An investment in these investment choices,other than the Transamerica Stable Value investment choice(s),is subject to market risk. Principal value and investment returnwill fluctuate, so that an investor's shares, when redeemed,may be worth more or less than the original investment. Currentperformance may be lower or higher than the performance dataquoted herein. Separate account investment choice statisticschange over time. The investment choice is not FDIC insured,may lose value and is not guaranteed by a bank or other financialinstitution.

The separate account investment choices offered are exemptfrom registration with the SEC; therefore, no prospectuses arefiled for them. However, certain of the separate accountinvestment choices, other than the Stable Value investmentchoices, invest in mutual funds which are subject to SECregistration.

Prospectuses and summary prospectus, if applicable, for thesemutual funds can be ordered directly from the fund company orobtained upon request from Transamerica Retirement Solutionsat www.TA-Retirement.com. Investors should consider theinvestment objectives, risks, and charges and expenses of thefund carefully before investing. The prospectus and summaryprospectus, if applicable, for each fund contains this and otherimportant information about that fund. Read each prospectuscarefully before investing. Additional information on all theinvestment choices is available on the investment factsheets.

Performance Unless otherwise noted, all data is shown as of the release dateof these investment fact sheets. Performance shown is averageannual total separate account investment choice returns(except 3 months and year-to-date) for the period indicated,net of the total operating expenses of the separate account andunderlying investment (if applicable) as listed on the individualinvestment fact sheets. Performance returns reflectreinvestment of dividends and capital gains distributions.Performance does not reflect application of the contract assetcharges and any discontinuance charges or service feesdeducted from an account: such charges and fees would reducea participant's return.

For separate account investment choices invested in mutualfund shares, except as otherwise indicated, historicalperformance prior to the separate account investment choiceinception date is calculated utilizing past performance for theunderlying mutual fund.

Performance shown since inception is from the inception dateof the separate account or underlying investment as describedon the individual investment fact sheets. See individualinvestment fact sheet for the date of inception.

The benchmarks are unmanaged indices and have no fees orexpense charges. One cannot invest directly in an index.

Fund Ranking: This is the total return percentile rank within eachMorningstar Category. The highest (or most favorable)percentile rank is 1 and the lowest (or least favorable) percentilerank is 100. Historical percentile ranks are based on a snapshot

of the funds as they were at the time of the calculation.Percentile ranks within categories are most useful in thosegroups that have a large number of funds. For small universes,funds will be ranked at the highest percentage possible. Forinstance, if there are only two utility funds with 10-year averagetotal returns, Morningstar will assign a percentile rank of 1 tothe top-performing fund, and the second fund will earn apercentile rank of 51 (indicating the fund underperformed 50%of the sample).

Hypothetical Growth: The value of a hypothetical $10,000investment over the past 10 years (or since inception forinvestment choices lacking 10-year history). Data assumesreinvestment of dividends and capital gains. Results reflect pastperformance and do not guarantee future results.

Adjusted Historical Returns and Extended PerformanceRating: Morningstar provides adjusted historical returns and anextended performance rating for some mutual funds in itsuniverse. This means that any share class that doesn't have a10-year performance history may show adjusted returns andreceive a hypothetical Morningstar Rating based on the oldestsurviving share class of the fund. Morningstar will adjust theperformance history of the original portfolio to reflect anydifferences in fees between the original share class and thenew share class. Because share classes are based on the sameunderlying portfolio of securities, the only differences inperformance can be attributable to fees. First, Morningstarcomputes the funds' new return stream by appending anadjusted return history of the oldest share class. Next, theExtended Performance Rating is determined by comparing theadjusted-historical returns to the current open-end mutual funduniverse to identify placement in the bell curve used to assignthe Morningstar Rating.

Morningstar Rating™ Often simply called the Star Rating, the Morningstar Ratingbrings load-adjustments, performance (returns) and risktogether into one evaluation. Performance that is taken intoaccount for the Morningstar Rating is performance of theseparate account. Separate account performance includesany separate account maintenance and administrative chargesassessed by Transamerica, as well as the expenses of theunderlying investment. Separate account performance doesnot reflect deductions for any contract asset charges,discontinuance charges, or service fees. To determine aninvestment choice's star rating for a given time period (three,five, or ten years), the investment choice's risk-adjusted returnis plotted on a bell curve: If the investment choice scores in thetop 10% of its category, it receives 5 stars (Highest); if it fallsin the next 22.5% it receives 4 stars (Above Average); a placein the middle 35% earns 3 stars (Average); those lower still, inthe next 22.5%, receive 2 stars (Below Average); and thebottom 10% get only 1 star (Lowest). The Overall MorningstarRating is a weighted average of the available three-, five-, andten-year ratings.

Morningstar Return This statistic is a measurement of an investment choice'sexcess return over a risk-free rate (the return of the 90-dayTreasury bill), after adjusting for all applicable loads and salescharges. In each Morningstar Category, the top 10% ofinvestment choices earn a High Morningstar Return, the next

22.5% Above Average, the middle 35% Average, the next22.5% Below Average, and the bottom 10% Low. MorningstarReturn is measured for up to three time periods (three-, five-,and ten-years). These separate measures are then weightedand averaged to produce an overall measure for the investmentchoice. Investment choices with less than three years ofperformance history are not rated.

Morningstar Risk This statistic evaluates the variations in an investment choice'smonthly returns, with an emphasis on downside variations. Ineach Morningstar Category, the 10% of investment choiceswith the lowest measured risk are described as Low Risk, thenext 22.5% Below Average, the middle 35% Average, the next22.5% Above Average, and the top 10% High. Morningstar Riskis measured for up to three time periods (three-, five-, and ten-years). These separate measures are then weighted andaveraged to produce an overall measure for the investmentchoice. Investment choices with less than three years ofperformance history are not rated.

Asset Classes The investment choices have been assigned to various assetclasses by Transamerica Retirement Solutions. They may notbe representative of that particular asset class in the future.The asset classes are described under "Principal RiskDefinitions".

Risk Measures R-squared reflects the percentage of an investment choice'smovements that are explained by movements in its benchmarkindex, showing the degree of correlation between theinvestment choice and the benchmark.

Beta is a measure of an investment choice's sensitivity tomarket movements. A portfolio with a beta greater than 1 ismore volatile than the market, and a portfolio with a beta lessthan 1 is less volatile than the market.

Alpha measures the difference between an investment choice'sactual returns and its expected performance, given its level ofrisk (as measured by beta). Alpha is often considered torepresent the value that a portfolio manager adds by activelymanaging the portfolio.

Sharpe ratio is the average return, less the risk free return,divided by the standard deviation of return. The ratio measuresthe relationship of reward to risk in an investment strategy. Thehigher the ratio, the safer the strategy.

Standard deviation is a statistical measure of the degree towhich an individual value in a probability distribution tends tovary from the mean of the distribution. It is widely applied inmodern portfolio theory, for example, where the pastperformance of securities is used to determine the range ofpossible future performances and a probability is attached toeach performance. The standard deviation of performance canthen be calculated for each security and for the portfolio as awhole. The greater the degree of dispersion, the greater therisk. Standard deviation, therefore, is a statistical measure ofthe volatility of the investment choice's returns.

Morningstar Style Box™

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Disclosure

©2016 Morningstar, Inc., Morningstar Investment Profiles™ 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary toMorningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstarnor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of futureperformance. Visit our investment website at www.morningstar.com.

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The Morningstar Style Box reveals an investment choice'sinvestment strategy as of the date noted on this report.

For equity funds the vertical axis shows the marketcapitalization of the long stocks owned and the horizontal axisshows investment style (value, blend, or growth).

For fixed-income funds, the vertical axis shows the credit qualityof the long bonds owned and the horizontal axis shows interestrate sensitivity as measured by a bond's effective duration.

Morningstar seeks credit rating information from fundcompanies on a periodic basis (e.g., quarterly). In compilingcredit rating information Morningstar accepts credit ratingsreported by fund companies that have been issued by allNationally Recognized Statistical Rating Organizations(NRSROs). For a list of all NRSROs, please visit http://www.sec.gov/divisions/marketreg/ratingagency.htm.Additionally, Morningstar accepts foreign credit ratings fromwidely recognized or registered rating agencies. If two ratingorganizations/agencies have rated a security, fund companiesare to report the lower rating; if three or more organizations/agencies have rated a security, fund companies are to reportthe median rating, and in cases where there are more than twoorganization/agency ratings and a median rating does not exist,fund companies are to use the lower of the two middle ratings.PLEASE NOTE: Morningstar, Inc. is not itself an NRSROnor does it issue a credit rating on the fund. An NRSROor rating agency ratings can change from time-to-time.

For credit quality, Morningstar combines the credit ratinginformation provided by the fund companies with an averagedefault rate calculation to come up with a weighted-averagecredit quality. The weighted-average credit quality is currentlya letter that roughly corresponds to the scale used by a leadingNRSRO. Bond funds are assigned a style box placement of"low", "medium", or "high" based on their average credit quality.Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-";medium are those less than "AA-", but greater or equal to"BBB-"; and high are those with a weighted-average creditquality of "AA-" or higher. When classifying a bond portfolio,Morningstar first maps the NRSRO credit ratings of theunderlying holdings to their respective default rates (asdetermined by Morningstar's analysis of actual historical defaultrates). Morningstar then averages these default rates todetermine the average default rate for the entire bond fund.Finally, Morningstar maps this average default rate to itscorresponding credit rating along a convex curve.

For interest-rate sensitivity, Morningstar obtains from fundcompanies the average effective duration. Generally,Morningstar classifies a fixed-income fund's interest-ratesensitivity based on the effective duration of the MorningstarCore Bond Index (MCBI), which is currently three years. Theclassification of Limited will be assigned to those funds whoseaverage effective duration is between 25% to 75% of MCBI'saverage effective duration; funds whose average effectiveduration is between 75% to 125% of the MCBI will be classifiedas Moderate; and those that are at 125% or greater of theaverage effective duration of the MCBI will be classified asExtensive.

For municipal bond funds, Morningstar also obtains from fund

companies the average effective duration. In these cases staticbreakpoints are utilized. These breakpoints are as follows: (i)Limited: 4.5 years or less; (ii) Moderate: more than 4.5 yearsbut less than 7 years; and (iii) Extensive: more than 7 years. Inaddition, for non-US taxable and non-US domiciled fixed incomefunds static duration breakpoints are used: (i) Limited: less thanor equal to 3.5 years; (ii) Moderate: greater than 3.5 and lessthan equal to 6 years; (iii) Extensive: greater than 6 years.

Charges, Fees and Expenses Deposits made by plan participants are not subject to any front-end loads/sales fees of the underlying mutual fund. Therefore,such fees are not reflected in the performance reported.

Type 1: The expense ratio quoted reflects the maximum totaloperating expenses, of the investment choice, which includethe Separate Account Maintenance and Investment AccountClass I Administrative Charges assessed by Transamerica, ifapplicable. The actual expense ratio experienced may be lessthan the expense ratio quoted. There may also be charges toyour balance in the separate accounts for contract assetcharges, discontinuance charges or service fees, as applicableunder your contract, which are not reflected on these factsheets.

Type 2: The expense ratio quoted reflects the total operatingexpenses, of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges, discontinuance chargesor service fees, as applicable under your contract, which arenot reflected on these fact sheets.

Type 3: The expense ratio quoted reflects the maximum totaloperating expenses, of the investment choice which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class VIII Administrative Chargesassessed by Transamerica, if applicable. There may also becharges to your balance in the separate accounts for contractasset charges or service fees, as applicable under your contract,which are not reflected on these fact sheets.

Type 4: The expense ratio quoted reflects the total operatingexpenses, of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 5: The expense ratio quoted reflects the maximum totaloperating expenses, of the investment choice, which includethe underlying TLIC Separate Account Maintenance andInvestment Account Class VII Administrative Charge assessedby Transamerica and the total operating expenses of theunderlying investment, net of any fee waivers.

Type 6: The expense ratio quoted reflects the maximum totaloperating expenses, of the investment choice, which includethe underlying TLIC Separate Account Maintenance andInvestment Account Class VII Administrative Charge assessedby Transamerica.

Type 7: The expense ratio quoted reflects the maximum totaloperating expenses, of the investment choice, which include

the Separate Account Maintenance and AdministrativeCharges assessed by Transamerica (if applicable), and the totaloperating expenses of the underlying investment, net of any feewaivers. There may also be charges to your balance in theseparate accounts for contract asset charges, discontinuancecharges or service fees, as applicable under your contract,which are not reflected on these fact sheets.

Type 8: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class VIII Administrative Chargesassessed by Transamerica (if applicable), and the totaloperating expenses of the underlying investment, net of any feewaivers. There may also be charges to your balance in theseparate accounts for contract asset charges or service fees,as applicable under your contract, which are not reflected onthese fact sheets.

Type 9: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class XX Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any feewaivers.

Type 10: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which consist ofthe underlying TLIC Separate Account Maintenance andInvestment Account Class XX Administrative Charges assessedby Transamerica.

Type 11: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which consist ofthe underlying TLIC Separate Account Maintenance andInvestment Account Class IX Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any feewaivers.

Type 12: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which consist ofthe underlying TLIC Separate Account Maintenance andInvestment Account Class IX Administrative Charges assessedby Transamerica.

Type 13: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class X Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 14: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class XI Administrative Charge, assessedby Transamerica (if applicable), and the total operating

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expenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 15: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class XII Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 16: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class XIII Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 17: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class XIV Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 18: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class XV Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 19: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 201 Administrative Charge,assessed by Transamerica (if applicable), and the totaloperating expenses of the underlying investment, net of any feewaivers. There may also be charges to your balance in theseparate accounts for contract asset charges or service fees,as applicable under your contract, which are not reflected onthese fact sheets.

Type 20: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include the

underlying TLIC Separate Account Maintenance andInvestment Account Class 201 Administrative Charge,assessed by Transamerica. There may also be charges to yourbalance in the separate accounts for contract asset charges orservice fees, as applicable under your contract, which are notreflected on these fact sheets.


Type 22: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 202 Administrative Charge,assessed by Transamerica. There may also be charges to yourbalance in the separate accounts for contract asset charges orservice fees, as applicable under your contract, which are notreflected on these fact sheets.




Type 26: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 302 Administrative Charge,assessed by Transamerica. There may also be charges to your

balance in the separate accounts for contract asset charges orservice fees, as applicable under your contract, which are notreflected on these fact sheets.



Type 29: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 30 Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.

Type 30: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 30 Administrative Charge, assessedby Transamerica. There may also be charges to your balance inthe separate accounts for contract asset charges or servicefees, as applicable under your contract, which are not reflectedon these fact sheets.



Type 33: The expense ratio quoted reflects the maximum total

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operating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 32 Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.




Type 37: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 406 Administrative Charge,assessed by Transamerica (if applicable), and the totaloperating expenses of the underlying investment (if applicable),net of any fee waivers. There may also be charges to yourbalance in the separate accounts for contract asset charges orservice fees, as applicable under your contract, which are notreflected on these fact sheets.


Type 39: The expense ratio quoted reflects the maximum totaloperating expenses of the investment choice, which include theunderlying TLIC Separate Account Maintenance andInvestment Account Class 50 Administrative Charge, assessedby Transamerica (if applicable), and the total operatingexpenses of the underlying investment, net of any fee waivers.

There may also be charges to your balance in the separateaccounts for contract asset charges or service fees, asapplicable under your contract, which are not reflected on thesefact sheets.




Principal Risk Definitions (except SSGA or BlackRockinvestments) Active Management: The investment is actively managed andsubject to the risk that the advisor's usage of investmenttechniques and risk analyses to make investment decisions failsto perform as expected, which may cause the portfolio to losevalue or underperform investments with similar objectives andstrategies or the market in general.

Amortized Cost: If the deviation between the portfolio'samortized value per share and its market-based net asset valueper share results in material dilution or other unfair results toshareholders, the portfolio's board will take action to counteractthese results, including potentially suspending redemption ofshares or liquidating the portfolio.

Asset Transfer Program: The portfolio is subject to unique risksbecause of its use in connection with certain guaranteed benefitprograms, frequently associated with insurance contracts. Tofulfill these guarantees, the advisor may make large transfersof assets between the portfolio and other affiliated portfolios.These transfers may subject the shareholder to increased costsif the asset base is substantially reduced and may cause theportfolio to have to purchase or sell securities at inopportunetimes.

Bank Loans: Investments in bank loans, also known as seniorloans or floating-rate loans, are rated below-investment gradeand may be subject to a greater risk of default than are

investment-grade loans, reducing the potential for income andpotentially leading to impairment of the collateral provided bythe borrower. Bank loans pay interest at rates that areperiodically reset based on changes in interest rates and maybe subject to increased prepayment and liquidity risks.

Capitalization: Concentrating assets in stocks of one or morecapitalizations (small, mid, or large) may be subject to both thespecific risks of those capitalizations as well as increasedvolatility because stocks of specific capitalizations tend to gothrough cycles of beating or lagging the market as a whole.

Cash Drag: The portfolio may fail to meet its investmentobjective because of positions in cash and equivalents.

Cash Transactions: Redemptions of ETF shares for cash, ratherthan in-kind securities, may require the portfolio to sellsecurities. This may increase shareholder tax liability,potentially through capital gain distributions.

China Region: Investing in the China region, including HongKong, the People's Republic of China, and Taiwan, may besubject to greater volatility because of the social, regulatory,and political risks of that region, as well as the Chinesegovernment's significant level of control over China's economyand currency. A disruption of relations between China and itsneighbors or trading partners could severely impact China'sexport-based economy.

Closed-End Fund: Investments in closed-end funds generallyreflect the risks of owning the underlying securities, althoughthey may be subject to greater liquidity risk and higher coststhan owning the underlying securities directly because of theirmanagement fees. Shares of CEFs are subject to market tradingrisk, potentially trading at a premium or discount to net assetvalue.

Commodity: Investments in commodity-related instruments aresubject to the risk that the performance of the overallcommodities market declines and that weather, disease,political, tax, and other regulatory developments adverselyimpact the value of commodities, which may result in a loss ofprincipal and interest. Commodity-linked investments faceincreased price volatility and liquidity, credit, and issuer riskscompared with their underlying measures.

Compounding: Because the investment is managed to replicatea multiple or inverse multiple of an index over a single day (orsimilar short-term period), returns for periods longer than oneday will generally reflect performance that is greater or lessthan the target in the objective because of compounding. Theeffect of compounding increases during times of higher indexvolatility, causing long-term results to further deviate from thetarget objective.

Conflict of Interest: A conflict of interest may arise if the advisormakes an investment in certain underlying funds based on thefact that those funds are also managed by the advisor or anaffiliate or because certain underlying funds may pay higher feesto the advisor do than others. In addition, an advisor'sparticipation in the primary or secondary market for loans maybe deemed a conflict of interest and limit the ability of theinvestment to acquire those assets.

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Convertible Securities: Investments in convertible securitiesmay be subject to increased interest-rate risks, rising in valueas interest rates decline and falling in value when interest ratesrise, in addition to their market value depending on theperformance of the common stock of the issuer. Convertiblesecurities, which are typically unrated or rated lower than otherdebt obligations, are secondary to debt obligations in order ofpriority during a liquidation in the event the issuer defaults.

Country or Region: Investments in securities from a particularcountry or region may be subject to the risk of adverse social,political, regulatory, or economic events occurring in thatcountry or region. Country- or region-specific risks also includethe risk that adverse securities markets or exchange rates mayimpact the value of securities from those areas.

Credit and Counterparty: The issuer or guarantor of a fixed-income security, counterparty to an OTC derivatives contract,or other borrower may not be able to make timely principal,interest, or settlement payments on an obligation. In this event,the issuer of a fixed-income security may have its credit ratingdowngraded or defaulted, which may reduce the potential forincome and value of the portfolio.

Credit Default Swaps: Credit default swaps insure the buyer inthe event of a default of a fixed-income security. The seller ofa credit default swap receives premiums and is obligated torepay the buyer in the event of a default of the underlyingcreditor. Investments in credit default swaps may be subject toincreased counterparty, credit, and liquidity risks.

Currency: Investments in securities traded in foreign currenciesor more directly in foreign currencies are subject to the risk thatthe foreign currency will decline in value relative to the U.S.dollar, which may reduce the value of the portfolio. Investmentsin currency hedging positions are subject to the risk that thevalue of the U.S. dollar will decline relative to the currency beinghedged, which may result in a loss of money on the investmentas well as the position designed to act as a hedge. Cross-currency hedging strategies and active currency positions mayincrease currency risk because actual currency exposure maybe substantially different from that suggested by the portfolio'sholdings.

Custody: Foreign custodial and other foreign financial servicesare generally more expensive than they are in the United Statesand may have limited regulatory oversight. The investment mayhave trouble clearing and settling trades in less-developedmarkets, and the laws of some countries may limit theinvestment's ability to recover its assets in the event the bank,depository, or agent holding those assets goes intobankruptcy.

Depositary Receipts: Investments in depositary receiptsgenerally reflect the risks of the securities they represent,although they may be subject to increased liquidity risk andhigher expenses and may not pass through voting and othershareholder rights. Depositary receipts cannot be directlyexchanged for the securities they represent and may trade ateither a discount or premium to those securities.

Derivatives: Investments in derivatives may be subject to the

risk that the advisor does not correctly predict the movementof the underlying security, interest rate, market index, or otherfinancial asset, or that the value of the derivative does notcorrelate perfectly with either the overall market or theunderlying asset from which the derivative's value is derived.Because derivatives usually involve a small investment relativeto the magnitude of liquidity and other risks assumed, theresulting gain or loss from the transaction will bedisproportionately magnified. These investments may result ina loss if the counterparty to the transaction does not performas promised.

Distressed Investments: Investments in distressed or defaultedinvestments, which may include loans, loan participations,bonds, notes, and issuers undergoing bankruptcy organization,are often not publicly traded and face increased price volatilityand liquidity risk. These securities are subject to the risk thatthe advisor does not correctly estimate their future value, whichmay result in a loss of part or all of the investment.

Dollar Rolls: Dollar rolls transactions may be subject to the riskthat the market value of securities sold to the counterpartydeclines below the repurchase price, the counterparty defaultson its obligations, or the portfolio turnover rate increasesbecause of these transactions. In addition, any investmentspurchased with the proceeds of a security sold in a dollar rollstransaction may lose value.

Early Close/Late Close/Trading Halt: The investment may beunable to rebalance its portfolio or accurately price its holdingsif an exchange or market closes early, closes late, or issuestrading halts on specific securities or restricts the ability to buyor sell certain securities or financial instruments. Any of thesescenarios may cause the investment to incur substantial tradinglosses.

Emerging Markets: Investments in emerging- and frontier-markets securities may be subject to greater market, credit,currency, liquidity, legal, political, and other risks compared withassets invested in developed foreign countries.

Equity Securities: The value of equity securities, which includecommon, preferred, and convertible preferred stocks, willfluctuate based on changes in their issuers' financial conditions,as well as overall market and economic conditions, and candecline in the event of deteriorating issuer, market, or economicconditions.

ETF: Investments in exchange-traded funds generally reflect therisks of owning the underlying securities they are designed totrack, although they may be subject to greater liquidity risk andhigher costs than owning the underlying securities directlybecause of their management fees. Shares of ETFs are subjectto market trading risk, potentially trading at a premium ordiscount to net asset value.

ETN: Investments in exchange-traded notes may be subject tothe risk that their value is reduced because of poor performanceof the underlying index or a downgrade in the issuer's creditrating, potentially resulting in default. The value of thesesecurities may also be impacted by time to maturity, level ofsupply and demand, and volatility and lack of liquidity inunderlying markets, among other factors. The portfolio bears

its proportionate share of fees and expenses associated withinvestment in ETNs, and its decision to sell these holdings maybe limited by the availability of a secondary market.

Event-Driven Investment/Arbitrage Securities: Arbitragestrategies involve investment in multiple securities with theexpectation that their prices will converge at an expected value.These strategies face the risk that the advisor's price predictionswill not perform as expected. Investing in event-driven ormerger arbitrage strategies may not be successful if themerger, restructuring, tender offer, or other major corporateevent proposed or pending at the time of investment is notcompleted on the terms contemplated.

Extension: The issuer of a security may repay principal moreslowly than expected because of rising interest rates. In thisevent, short- and medium-duration securities are effectivelyconverted into longer-duration securities, increasing theirsensitivity to interest-rate changes and causing their prices todecline.

Financials Sector: Concentrating assets in the financials sectormay disproportionately subject the portfolio to the risks of thatindustry, including loss of value because of economic recession,availability of credit, volatile interest rates, governmentregulation, and other factors.

Fixed Income Securities: The value of fixed-income or debtsecurities may be susceptible to general movements in thebond market and are subject to interest-rate and credit risk.

Foreign Securities: Investments in foreign securities may besubject to increased volatility as the value of these securitiescan change more rapidly and extremely than can the value ofU.S. securities. Foreign securities are subject to increasedissuer risk because foreign issuers may not experience thesame degree of regulation as U.S. issuers do and are held todifferent reporting, accounting, and auditing standards. Inaddition, foreign securities are subject to increased costsbecause there are generally higher commission rates ontransactions, transfer taxes, higher custodial costs, and thepotential for foreign tax charges on dividend and interestpayments. Many foreign markets are relatively small, andsecurities issued in less-developed countries face the risks ofnationalization, expropriation or confiscatory taxation, andadverse changes in investment or exchange control regulations,including suspension of the ability to transfer currency from acountry. Economic, political, social, or diplomatic developmentscan also negatively impact performance.

Forwards: Investments in forwards may increase volatility andbe subject to additional market, active management, currency,and counterparty risks as well as liquidity risk if the contractcannot be closed when desired. Forwards purchased on awhen-issued or delayed-delivery basis may be subject to riskof loss if they decline in value prior to delivery, or if thecounterparty defaults on its obligation.

Futures: Investments in futures contracts and options on futurescontracts may increase volatility and be subject to additionalmarket, active management, interest, currency, and other risksif the contract cannot be closed when desired.

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Growth Investing: Growth securities may be subject toincreased volatility as the value of these securities is highlysensitive to market fluctuations and future earningsexpectations. These securities typically trade at highermultiples of current earnings than do other securities and maylose value if it appears their earnings expectations may not bemet.

Hedging Strategies: The advisor's use of hedging strategies toreduce risk may limit the opportunity for gains compared withunhedged investments, and there is no guarantee that hedgeswill actually reduce risk.

High Portfolio Turnover: Active trading may create high portfolioturnover, or a turnover of 100% or more, resulting in increasedtransaction costs. These higher costs may have an adverseimpact on performance and generate short-term capital gains,creating potential tax liability even if an investor does not sellany shares during the year.

High Yield Securities: Investments in below-investment-gradedebt securities and unrated securities of similar credit quality,commonly known as "junk bonds" or "high-yield securities," maybe subject to increased interest, credit, and liquidity risks.

Income: The investment's income payments may declinedepending on fluctuations in interest rates and the dividendpayments of its underlying securities. In this event, someinvestments may attempt to pay the same dividend amount byreturning capital.

Increase in Expenses: The actual cost of investing may be higherthan the expenses listed in the expense table for a variety ofreasons, including termination of a voluntary fee waiver or losingportfolio fee breakpoints if average net assets decrease. Therisk of expenses increasing because of a decrease in averagenet assets is heightened when markets are volatile.

Index Correlation/Tracking Error: A portfolio that tracks an indexis subject to the risk that certain factors may cause the portfolioto track its target index less closely, including if the advisorselects securities that are not fully representative of the index.The portfolio will generally reflect the performance of its targetindex even if the index does not perform well, and it mayunderperform the index after factoring in fees, expenses,transaction costs, and the size and timing of shareholderpurchases and redemptions.

Industry and Sector Investing: Concentrating assets in aparticular industry, sector of the economy, or markets mayincrease volatility because the investment will be moresusceptible to the impact of market, economic, regulatory, andother factors affecting that industry or sector compared with amore broadly diversified asset allocation.

Inflation/Deflation: A change of asset value may occur becauseof inflation or deflation, causing the portfolio to underperform.Inflation may cause the present value of future payments todecrease, causing a decline in the future value of assets orincome. Deflation causes prices to decline throughout theeconomy over time, impacting issuers' creditworthiness andincreasing their risk for default, which may reduce the value ofthe portfolio.

Inflation-Protected Securities: Unlike other fixed-incomesecurities, the values of inflation-protected securities are notsignificantly impacted by inflation expectations because theirinterest rates are adjusted for inflation. Generally, the value ofinflation-protected securities will fall when real interest ratesrise and rise when real interest rates fall.

Interest Rate: Most securities are subject to the risk thatchanges in interest rates will reduce their market value.

Intraday Price Performance: The investment is rebalancedaccording to the investment objective at the end of the tradingday, and its reported performance will reflect the closing netasset value. A purchase at the intraday price may generateperformance that is greater or less than reportedperformance.

Inverse Floaters: Investments in inverse floaters may be subjectto increased price volatility compared with fixed-rate bonds thathave similar credit quality, redemption provisions, and maturity.The performance of inverse floaters tends to lag fixed-ratebonds in rising long-term interest-rate environments andexceed them in falling or stable long-term interest-rateenvironments.

Investment-Grade Securities: Investments in investment-gradedebt securities that are not rated in the highest rating categoriesmay lack the capacity to pay principal and interest comparedwith higher-rated securities and may be subject to increasedcredit risk.

IPO: Investing in initial public offerings may increase volatilityand have a magnified impact on performance. IPO shares maybe sold shortly after purchase, which can increase portfolioturnover and expenses, including commissions and transactioncosts. Additionally, IPO shares are subject to increased market,liquidity, and issuer risks.

Issuer: A stake in any individual security is subject to the riskthat the issuer of that security performs poorly, resulting in adecline in the security's value. Issuer-related declines may becaused by poor management decisions, competitive pressures,technological breakthroughs, reliance on suppliers, laborproblems or shortages, corporate restructurings, fraudulentdisclosures, or other factors. Additionally, certain issuers maybe more sensitive to adverse issuer, political, regulatory,market, or economic developments.

Large Cap: Concentrating assets in large-capitalization stocksmay subject the portfolio to the risk that those stocksunderperform other capitalizations or the market as a whole.Large-cap companies may be unable to respond as quickly assmall- and mid-cap companies can to new competitivepressures and may lack the growth potential of those securities.Historically, large-cap companies do not recover as quickly assmaller companies do from market declines.

Lending: Investing in loans creates risk for the borrower, lender,and any other participants. A borrower may fail to makepayments of principal, interest, and other amounts inconnection with loans of cash or securities or fail to return aborrowed security in a timely manner, which may lead to

impairment of the collateral provided by the borrower.Investments in loan participations may be subject to increasedcredit, pricing, and liquidity risks, with these risks intensified forbelowinvestment-grade loans.

Leverage: Leverage transactions may increase volatility andresult in a significant loss of value if a transaction fails. Becauseleverage usually involves investment exposure that exceeds theinitial investment, the resulting gain or loss from a relativelysmall change in an underlying indicator will bedisproportionately magnified.

Long-term Outlook and Projections: The investment is intendedto be held for a substantial period of time, and investors shouldtolerate fluctuations in their investment's value.

Loss of Money: Because the investment's market value mayfluctuate up and down, an investor may lose money, includingpart of the principal, when he or she buys or sells theinvestment.

Management: Performance is subject to the risk that theadvisor's asset allocation and investment strategies do notperform as expected, which may cause the portfolio tounderperform its benchmark, other investments with similarobjectives, or the market in general. The investment is subjectto the risk of loss of income and capital invested, and the advisordoes not guarantee its value, performance, or any particularrate of return.

Market Trading: Because shares of the investment are tradedon the secondary market, investors are subject to the risks thatshares may trade at a premium or discount to net asset value.There is no guarantee that an active trading market for theseshares will be maintained.

Market/Market Volatility: The market value of the portfolio'ssecurities may fall rapidly or unpredictably because of changingeconomic, political, or market conditions, which may reducethe value of the portfolio.

Master/Feeder: The portfolio is subject to unique risks relatedto the master/feeder structure. Feeder funds bear theirproportionate share of fees and expenses associated withinvestment in the master fund. The performance of a feederfund can be impacted by the actions of other feeder funds,including if a larger feeder fund maintains voting control overthe operations of the master fund or if large-scale redemptionsby another feeder fund increase the proportionate share of costsof the master fund for the remaining feeder funds.

Maturity/Duration: Securities with longer maturities ordurations typically have higher yields but may be subject toincreased interest-rate risk and price volatility compared withsecurities with shorter maturities, which have lower yields butgreater price stability.

Mid-Cap: Concentrating assets in mid-capitalization stocks maysubject the portfolio to the risk that those stocks underperformother capitalizations or the market as a whole. Mid-capcompanies may be subject to increased liquidity risk comparedwith large-cap companies and may experience greater pricevolatility than do those securities because of more-limited

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product lines or financial resources, among other factors.

MLP: Investments in master limited partnerships may besubject to the risk that their value is reduced because of poorperformance of the underlying assets or if they are not treatedas partnerships for federal income tax purposes. Investors inMLPs have more-limited control and voting rights on mattersaffecting the partnership compared with shareholders ofcommon stock.

Money Market Fund: Money market funds are subject to therisk that they may not be able to maintain a stable net assetvalue of $1.00 per share. Investments in money market fundsare not a deposit in a bank and are not guaranteed by the FDIC,any other governmental agency, or the advisor itself.

Mortgage-Backed and Asset-Backed Securities: Investmentsin mortgage-backed and asset-backed securities may besubject to increased price volatility because of changes ininterest rates, issuer information availability, credit quality ofthe underlying assets, market perception of the issuer,availability of credit enhancement, and prepayment of principal.The value of ABS and MBS may be adversely affected if theunderlying borrower fails to pay the loan included in thesecurity.

Multimanager: Managers' individual investing styles may notcomplement each other. This can result in both higher portfolioturnover and enhanced or reduced concentration in a particularregion, country, industry, or investing style compared with aninvestment with a single manager.

Municipal Obligations, Leases, and AMT-Subject Bonds:Investments in municipal obligations, leases, and privateactivity bonds subject to the alternative minimum tax havevarying levels of public and private support. The principal andinterest payments of general-obligation municipal bonds aresecured by the issuer's full faith and credit and supported bylimited or unlimited taxing power. The principal and interestpayments of revenue bonds are tied to the revenues of specificprojects or other entities. Federal income tax laws may limit thetypes and volume of bonds qualifying for tax exemption ofinterest and make any further purchases of tax-exemptsecurities taxable.

Municipal Project-Specific: Investments in municipal bonds thatfinance similar types of projects, including those related toeducation, health care, housing, transportation, utilities, andindustry, may be subject to a greater extent than generalobligation municipal bonds to the risks of adverse economic,business, or political developments.

New Fund: Investments with a limited history of operations maybe subject to the risk that they do not grow to an economicallyviable size in order to continue operations.

Nondiversification: A nondiversified investment, as definedunder the Investment Act of 1940, may have an increasedpotential for loss because its portfolio includes a relatively smallnumber of investments. Movements in the prices of theindividual assets may have a magnified effect on anondiversified portfolio. Any sale of the investment's largepositions could adversely affect stock prices if those positions

represent a significant part of a company's outstanding stock.

Not FDIC Insured: The investment is not a deposit or obligationof, or guaranteed or endorsed by, any bank and is not insuredby the Federal Deposit Insurance Corporation, the FederalReserve Board, or any other U.S. governmental agency.

Options: Investments in options may be subject to the risk thatthe advisor does not correctly predict the movement of anoption's underlying stock. Option purchases may result in theloss of part or all of the amount paid for the option pluscommission costs. Option sales may result in a forced sale orpurchase of a security at a price higher or lower than its currentmarket price.

OTC: Investments traded and privately negotiated in the over-the-counter market, including securities and derivatives, maybe subject to greater price volatility and liquidity risk thantransactions made on organized exchanges. Because the OTCmarket is less regulated, OTC transactions may be subject toincreased credit and counterparty risk.

Other: The investment's performance may be impacted by itsconcentration in a certain type of security, adherence to aparticular investing strategy, or a unique aspect of its structureand costs.

Passive Management: The investment is not actively managed,and the advisor does not attempt to manage volatility or takedefensive positions in declining markets. This passivemanagement strategy may subject the investment to greaterlosses during general market declines than actively managedinvestments.

Portfolio Diversification: Investments that concentrate theirassets in a relatively small number of issuers, or in the securitiesof issuers in a particular market, industry, sector, country, orasset class, may be subject to greater risk of loss than is a morewidely diversified investment.

Preferred Stocks: Investments in preferred stocks may besubject to the risks of deferred distribution payments,involuntary redemptions, subordination to debt instruments, alack of liquidity compared with common stocks, limited votingrights, and sensitivity to interest-rate changes.

Prepayment (Call): The issuer of a debt security may be able torepay principal prior to the security's maturity because of animprovement in its credit quality or falling interest rates. In thisevent, this principal may have to be reinvested in securities withlower interest rates than the original securities, reducing thepotential for income.

Pricing: Some investments may not have a market observedprice; therefore, values for these assets may be determinedthrough a subjective valuation methodology. Fair valuesdetermined by a subjective methodology may differ from theactual value realized upon sale. Valuation methodologies mayalso be used to calculate a daily net asset value.

Quantitative Investing: Holdings selected by quantitativeanalysis may perform differently from the market as a wholebased on the factors used in the analysis, the weighting of each

factor, and how the factors have changed over time.

Real Estate/REIT Sector: Concentrating assets in the real estatesector or REITs may disproportionately subject the portfolio tothe risks of that industry, including loss of value because ofchanges in real estate values, interest rates, and taxes, as wellas changes in zoning, building, environmental, and other laws,among other factors. Investments in REITs may be subject toincreased price volatility and liquidity risk, and shareholdersindirectly bear their proportionate share of expenses becauseof their management fees.

Regulation/Government Intervention: The business of the issuerof an underlying security may be adversely impacted by newregulation or government intervention, impacting the price ofthe security. Direct government ownership of distressed assetsin times of economic instability may subject the portfolio'sholdings to increased price volatility and liquidity risk.

Reinvestment: Payments from debt securities may have to bereinvested in securities with lower interest rates than theoriginal securities.

Reliance on Trading Partners: Investments in economies thatdepend heavily on trading with key partners may be subject tothe risk that any reduction in this trading may adversely impactthese economies.

Replication Management: The investment does not seekinvestment returns in excess of the underlying index. Therefore,it will not generally sell a security unless it was removed fromthe index, even if the security's issuer is in financial trouble.

Repurchase Agreements: Repurchase agreements may besubject to the risk that the seller of a security defaults and thecollateral securing the repurchase agreement has declined anddoes not equal the value of the repurchase price. In this event,impairment of the collateral may result in additional costs.

Restricted/Illiquid Securities: Restricted and illiquid securitiesmay fall in price because of an inability to sell the securitieswhen desired. Investing in restricted securities may subject theportfolio to higher costs and liquidity risk.

Sampling: Although the portfolio tracks an index, it maintains asmaller number of holdings than does the index. Use of thisrepresentative sampling approach may lead the portfolio totrack the index less closely.

Shareholder Activity: Frequent purchases or redemptions byone or multiple investors may harm other shareholders byinterfering with the efficient management of the portfolio,increasing brokerage and administrative costs and potentiallydiluting the value of shares. Additionally, shareholder purchaseand redemption activity may have an impact on the per-sharenet income and realized capital gains distribution amounts, ifany, potentially increasing or reducing the tax burden on theshareholders who receive those distributions.

Short Sale: Selling securities short may be subject to the riskthat an advisor does not correctly predict the movement of thesecurity, resulting in a loss if a security must be purchased onthe market above its initial borrowing price to return to the

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lender, in addition to interest paid to the lender for borrowingthe security.

Small Cap: Concentrating assets in small-capitalization stocksmay subject the portfolio to the risk that those stocksunderperform other capitalizations or the market as a whole.Smaller, less-seasoned companies may be subject to increasedliquidity risk compared with mid- and large-cap companies andmay experience greater price volatility than do those securitiesbecause of limited product lines, management experience,market share, or financial resources, among other factors.

Socially Conscious: Adhering to social, moral, or environmentalcriteria may preclude potentially profitable opportunities insectors or firms that would otherwise be consistent with theinvestment objective and strategy.

Sovereign Debt: Investments in debt securities issued orguaranteed by governments or governmental entities aresubject to the risk that an entity may delay or refuse to payinterest or principal on its sovereign debt because of cash flowproblems, insufficient foreign reserves, or political or otherconsiderations. In this event, there may be no legal process forcollecting sovereign debts that a governmental entity has notrepaid.

Structured Products: Investments in structured products maybe more volatile, less liquid, and more difficult to price thanother assets. These securities bear the risk of the underlyinginvestment as well as counterparty risk. Securitized structuredproducts including CMOs, CDOs, and other securitized productsmay increase volatility and be subject to increased liquidity andpricing risks compared with investing directly in the assetssecuritized within the product. Assets invested in structuredproducts may be subject to full loss of value if the counterpartydefaults on its obligation.

Suitability: Investors are expected to select investments whoseinvestment strategies are consistent with their financial goalsand risk tolerance.

Swaps: Investments in swaps, such as interest-rate swaps,currency swaps and total return swaps, may increase volatilityand be subject to increased liquidity, credit, and counterpartyrisks. Depending on their structure, swaps may increase ordecrease the portfolio's exposure to long- or short-term interestrates, foreign currency values, corporate borrowing rates,security prices, index values, inflation rates, credit, or otherfactors.

Target Date: Target-date funds, also known as lifecycle funds,shift their asset allocation to become increasingly conservativeas the target retirement year approaches. Still, investment intarget-date funds may lose value near, at, or after the targetretirement date, and there is no guarantee they will provideadequate income at retirement.

Tax Management: A tax-sensitive investment strategy thatuses hedging or other techniques may fail to limit distributionsof taxable income and net realized gains and therefore createsome tax liability for shareholders.

Tax Risk: Investors may be liable to pay state and federal taxes

on income and capital gains distributions paid out by theinvestment.

Tax-Exempt Securities: Tax-exempt securities could bereclassified as taxable by the IRS or a state tax authority, ortheir income could be reclassified as taxable by a futurelegislative, administrative, or court action. This may result inincreased tax liability as interest from a security becomestaxable, and such reclassifications could be appliedretroactively.

Technology Sector: Concentrating assets in the technologysector may disproportionately subject the portfolio to the risksof that industry, including loss of value because of intensecompetitive pressures, short product cycles, dependence onintellectual property rights, legislative or regulatory changes,and other factors.

Temporary Defensive Measures: Temporary defensivepositions may be used during adverse economic, market, orother conditions. In this event, up to 100% of assets may beallocated to securities, including cash and cash equivalents thatare normally not consistent with the investment objective.

U.S. Federal Tax Treatment: Changes in the tax treatment ofdividends, derivatives, foreign transactions, and other securitiesmay have an impact on performance and potentially increaseshareholder liability. Additionally, this includes the risk that thefund fails to qualify as a regulated investment company,potentially resulting in a significantly higher level of taxation.

U.S. Government Obligations: Investments in U.S. governmentobligations are subject to varying levels of government support.In the event of default, some U.S. government securities,including U.S. Treasury obligations and Ginnie Mae securities,are issued and guaranteed as to principal and interest by thefull faith and credit of the U.S. government. Other securities areobligations of U.S. government-sponsored entities but areneither issued nor guaranteed by the U.S. government.

U.S. State or Territory-Specific: Investments in the municipalsecurities of a particular state or territory may be subject to therisk that changes in the economic conditions of that state orterritory will negatively impact performance.

Underlying Fund/Fund of Funds: A portfolio's risks are closelyassociated with the risks of the securities and otherinvestments held by the underlying or subsidiary funds, and theability of the portfolio to meet its investment objective likewisedepends on the ability of the underlying funds to meet theirobjectives. Investment in other funds may subject the portfolioto higher costs than owning the underlying securities directlybecause of their management fees.

Unrated Securities: Investments in unrated securities may besubject to increased interest, credit, and liquidity risks if theadvisor does not accurately assess the quality of thosesecurities.

Valuation Time: Net asset value is not calculated on days andtimes when the U.S. exchange is closed, though foreign securityholdings may still be traded. In this event, the net asset valuemay be significantly impacted when shareholders are not able

to buy or sell shares. Conversely, performance may vary fromthe index if the NAV is calculated on days and times whenforeign exchanges are closed.

Value Investing: Value securities may be subject to the risk thatthese securities cannot overcome the adverse factors theadvisor believes are responsible for their low price or that themarket may not recognize their fundamental value as theadvisor predicted. Value securities are not expected toexperience significant earnings growth and may underperformgrowth stocks in certain markets.

Variable-Rate Securities: Investments in variable-ratesecurities, which periodically adjust the interest-rate paid onthe securities, may be subject to greater liquidity risk than areother fixed-income securities. Because variable-rate securitiesare subject to less interest-rate risk than other fixed-incomesecurities, their opportunity to provide capital appreciation iscomparatively reduced.

Warrants: Investments in warrants may be subject to the riskthat the price of the underlying stock does not rise above theexercise price. In this event, the warrant may expire withoutbeing exercised and lose all value.

Zero-Coupon Bond: Investments in zero-coupon bonds, whichdo not pay interest prior to maturity, may be subject to greaterprice volatility and liquidity risks than are fixed-income securitiesthat pay interest periodically. Still, interest accrued on thesesecurities prior to maturity is reported as income and distributedto shareholders.

Principal Risk Definitions (SSGA investments only)Asset Allocation Risk: There is no guarantee that SSGA'sallocation techniques and decisions will produce the desiredresults; and it is possible to lose money on an investment in thePortfolio.

Below Investment Grade Securities Risk: Securities rated belowinvestment-grade and unrated securities (a.k.a. "high-yieldbonds" or "junk bonds") lack strong investment characteristics,have speculative characteristics, and are subject to greatercredit, liquidity, market and default risks than higher-ratedsecurities. The ability of the issuer to make payments of interestand principal may be impaired. The values of these securitiesheld by the Portfolio may become highly volatile and/or declinesubstantially. The Portfolio could lose some or all of the valueof its investment.

Call/Prepayment Risk: An issuer may pay principal on anobligation earlier than expected or required. If so, the Portfoliomay be forced to invest the pre-paid amounts in lower-yieldinginvestments, resulting in a decline in the Portfolio's income.

Cash Position Risk: The Portfolio may hold a significant portionof its assets in cash or cash equivalents in SSGA's discretion.If so, the Portfolio's investment returns may be adverselyaffected and the Portfolio may not achieve its investmentobjective.

Commodities Risk: Commodity prices can be extremely volatileand exposure to commodities can cause the net asset value ofthe Portfolio's shares to decline or fluctuate. The values of

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physical commodities or commodity-linked derivativeinstruments may be affected by changes in the following,among other things: market movements, inflationary trends,commodity index volatility, interest rate or currency exchangerate changes, etc. The Portfolio may have difficulty in sellingcertain commodity investments at a desirable price or at theprice at which the Portfolio is carrying them. The Portfolio mightbe required to take or make delivery of the underlyingcommodities. If so, it would incur related costs and expensesand would be exposed to the risk of adverse changes in thevalue of the commodity if/when holding the commodity. Thecommodity markets are subject to temporary distortions orother disruptions due to, among other factors, lack of liquidity,the participation of speculators, and government regulation andother actions. Futures contract position limits may have theeffect of distorting market pricing and limiting liquidity in themarket for the contracts in question.

Concentration Risk: When the Portfolio focuses its investmentsin a particular industry, market or economic sector, financial,economic, business, and other developments affecting issuersin that industry, market, or economic sector will have a greatereffect on the Portfolio than if it had not so focused its assets.This focus may limit the liquidity of the Portfolio. Investors maybuy or sell substantial amounts of the Portfolio's shares,resulting in extreme inflows or outflows of cash into and out ofthe Portfolio. This might affect management of the Portfolioadversely.

Counterparty Risk: The Portfolio will be subject to credit riskwith respect to the counterparties with which it enters intoderivatives and other contracts and transactions. If acounterparty becomes insolvent or otherwise fails to performits contractual obligations, the Portfolio may be unable toterminate or realize any gain on the investment or transaction,resulting in a loss to the Portfolio. The Portfolio may experiencesignificant delays in obtaining any recovery in an insolvency,bankruptcy, or other reorganization proceeding (includingrecovery of any posted collateral) and may obtain only a limitedrecovery (or no recovery) in such circumstances. The Portfoliomay be prevented or delayed from exercising its rights toterminate an investment or transaction with a financialinstitution experiencing financial difficulties, or to realize oncollateral, and another institution may be substituted for thatfinancial institution without the consent of the Portfolio. If thecredit rating of a derivatives counterparty declines, the Portfoliomay choose or be required to keep existing transactions in placewith counterparty, in which event the Portfolio would be subjectto any increased credit risk associated with those transactions.Credit risk of market participants with respect to derivativesthat are centrally cleared is concentrated in a few clearinghouses, and it is not clear how an insolvency proceeding of aclearing house would be conducted, what effect the insolvencyproceeding would have on any recovery by the Portfolio, andwhat impact an insolvency of a clearing house would have onthe financial system more generally.

Credit Risk: It is possible that the ability or willingness (real orperceived) of an issuer, guarantor or liquidity provider to meetits obligations will decline substantially or that the relevantentity will default on its obligations or the obligations will belimited or restructured. This will likely have an adverse effecton the value of the securities. The credit rating assigned to any

particular investment does not necessarily reflect the issuer'scurrent financial condition or an assessment of an investment'svolatility or liquidity. In the discretion of SSGA, the Portfolio maycontinue to hold a security that has lost its rating or is subjectto a rating downgraded. In the case of asset-backed ormortgage-related securities, changes in the actual or perceivedability of the obligors on the underlying assets or mortgagesmay affect the values of those securities.

Currency Risk: Changes in the values and/or status of currenciesmay have a positive or negative effect on the values of thePortfolio's investments denominated in those currencies.Currency values and/or status can decrease/changesignificantly both in the short term and over the long term inresponse to many factors (e.g., interest rates, regulatorydevelopment). Any partial or complete dissolution of theEuropean Monetary Union, or any continued uncertainty as toits status, could have significant adverse effects on currencyand financial markets, and on the values of the Portfolio'sinvestments. To the extent SSGA seeks to hedge againstadverse changes in the values of currencies on the value of thePortfolio's assets, such hedging transactions may not have thedesired effect or may cause the Portfolio to lose money.

Debt Securities Risk: The values of debt securities maydecrease as a result of many factors as a result of the following:market fluctuations; increases in interest rates; actual orperceived inability or unwillingness of issuers, guarantors orliquidity providers to make scheduled principal or interestpayments; illiquidity in debt securities markets; the risk of lowrates of return due to reinvestment of securities during periodsof falling interest rates or repayment by issuers with highercoupon or interest rates; and/or the risk of low income due tofalling interest rates. To the extent interest rates rise, certainunderlying obligations may be paid off substantially slower thanoriginally anticipated and the value of those securities may fallsharply. If the principal on a debt obligation is prepaid beforeexpected, the prepayments of principal may have to bereinvested in obligations paying interest at lower rates. Returnson investments in debt securities could trail the returns on otherinvestment options, including investments in equitysecurities.

Derivatives Risk: Derivatives typically involve leverage and aresubject to a number of risks, including, but not limited to,changes in value, reduced returns, significant volatility,accelerated gain recognition, inability to close out a position ata favorable time or price, and failure to achieve an anticipatedeffect. Derivatives also involve the risk of mispricing or impropervaluation and the risk that changes in the value of a derivativemay not correlate perfectly with the asset, rate, or indexunderlying the derivative. The Portfolio may be required to postmargin or collateral and may not be able to recover the marginor collateral (e.g., due to counterparty bankruptcy). Use ofderivatives other than for hedging purposes may be consideredspeculative and may result in losses in excess of the statedamount of the derivative instrument. The Portfolio holds clearedderivatives through accounts at clearing members. The Portfoliowill make payments (including margin payments) to and receivepayments from a clearing house through accounts at clearingmembers. Clearing members guarantee performance of theirclients' obligations to the clearing house. Also, a clearingmember generally can require termination of existing cleared

derivatives transactions at any time or an increase in marginrequirements. It is possible that no clearing member will bewilling or able to clear a particular transaction on the Portfolio'sbehalf. In that case, the transaction might have to beterminated, and the Portfolio could lose some or all of the benefitof any increase in the value of the transaction and loss ofhedging protections. In addition, the documentation governingthe relationship between a Portfolio and clearing members isdrafted by the clearing members and is less favorable to thePortfolio than typical bilateral derivatives documentation. Theseclearing rules and other new rules and regulations could, amongother things, restrict a Portfolio's ability to engage in, or increasethe cost to the Portfolio of, derivatives transactions. Thepotential impact of these rules and regulations on the Portfolioand the financial system are not yet known.

Emerging Markets Risk: Investments in emerging markets aregenerally subject to a greater risk of loss than investments indeveloped markets. In addition, there is an increased risk ofprice volatility in investments in emerging market countries,which may be magnified by currency fluctuations relative to thePortfolio's base currency. Securities of emerging marketscountries may trade less frequently and in smaller volumes thanmore widely-held securities and such securities may faceincreased liquidity constraints. The Portfolio may be unable toliquidate its positions in such securities at any time, or at afavorable price, to meet the Portfolio’s obligations. There maybe possible delays in settlement of emerging marketsinstruments and certain settlement practices will increase thelikelihood of a "failed settlement." Failed settlements can resultin losses. Investments in emerging markets are oftenconsidered speculative.

Energy Sector Risk: Issuers in energy-related industries can besignificantly affected by fluctuations in energy prices and supplyand demand of energy fuels caused by geopolitical events,energy conservation or use of alternative fuel sources, thesuccess of exploration projects, weather or meteorologicalevents, taxes, increased governmental or environmentalregulation, resource depletion, rising interest rates, declines indomestic or foreign production, accidents or catastrophicevents, or terrorist threats or attacks, among others. Marketsfor various energy-related commodities can be highly volatile,and are subject to control or manipulation by large producersor purchasers. Companies in the energy sector may need tomake substantial expenditures, and incur significant amountsof debt, in order to maintain or expand their reserves throughexploration of new sources of supply, through the developmentof existing sources, through acquisitions, or through long-termcontracts to acquire reserves. Factors adversely affectingproducers, refiners, distributors or others in the energy sectormay affect adversely companies that service or supply thoseentities, either because demand for those services or productsis curtailed, or those services or products come under pricepressure.

Enhanced Index Strategy Risk: The Portfolio's investment returnwill not normally match that of its Index. Investment decisionsby the Portfolio's managers to under- or overweight securitiesin the Index or to vary the Portfolio's investments from thesecurities included in the Index will affect the Portfolio'sperformance versus that of the Index. The Portfolio's ability totrack the Index will be affected by Portfolio expenses, the

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amount of cash and cash equivalents held in its portfolio, andthe frequency and the timing of purchases and sales of interestsin the Portfolio.

Equity Investing Risk: The market prices of equity securities maygo up or down, sometimes rapidly or unpredictably. The valueof a security may decline for a number of reasons that maydirectly relate to the issuer, such as management performance,financial leverage, non-compliance with regulatoryrequirements, and reduced demand for the issuer's goods orservices. The values of equity securities also may decline dueto general industry or market conditions that are not specificallyrelated to a particular company. Equity markets tend to movein cycles, which may cause stock prices to fall over short orextended periods of time. The Portfolio may continue to acceptnew subscriptions and to make additional investments in equitysecurities even under general market conditions that SSGAviews as unfavorable for equity securities.

Extension Risk: During periods of rising interest rates, theaverage life of certain types of securities may be extendedbecause of slower-than-expected principal payments. This mayincrease the period of time during which an investment earnsa below-market interest rate, increase the security's durationand reduce the value of the security. Extension risk may beheightened during periods of adverse economic conditionsgenerally, as payment rates decline due to higherunemployment levels and other factors.

Financial Institution Risk: Some instruments are issued orguaranteed by financial institutions or are collateralized bysecurities issued or guaranteed by financial institutions.Changes in the creditworthiness of any of these institutions mayadversely affect the values of instruments of issuers in financialindustries. Financial institutions may be particularly sensitive tocertain economic factors (e.g., interest rate changes, generaleconomic cycles). Adverse developments in banking and otherfinancial industries may cause the Portfolio to underperformrelative to other portfolios that invest more broadly acrossdifferent industries or have a smaller exposure to financialinstitutions. Changes in governmental regulation and oversightof financial institutions may have an adverse effect on thefinancial condition or the earnings or operations of a financialinstitution and on the types and amounts of businesses in whicha financial institution may engage. An investor may be delayedor prevented from exercising certain remedies against afinancial institution. The amount of the Portfolio's assets thatmay be invested in any financial institution, or financialinstitutions generally, may be limited by applicable law.

Foreign Exchange Risk: Foreign currency transactions includecurrency forwards, spot transactions, futures contracts, swapsand options. To the extent these transactions are entered into"over the counter", the Portfolio assumes the risk that thecounterparty may be unable or unwilling to perform itsobligations, in addition to the risk of unfavorable orunanticipated changes in the values of the currencies underlyingthe transactions. Over-the-counter currency transactions aretypically uncollateralized, and the Portfolio may not be able torecover all or any of the assets owed to it under such types oftransactions should the counterparty default. However, recentregulatory changes in a number of jurisdictions may require thatcertain currency transactions be subject to central clearing, or

be subject to new or increased collateral requirements. Thesechanges could increase the costs of currency transactions tothe Portfolio and may make certain transactions unavailable;they may also increase the credit risk of such transactions tothe Portfolio.

Futures Contract Risks: Other Exchange Traded DerivativesRisk: The risk of loss relating to the use of futures contracts andother exchange-traded derivatives is potentially unlimited.There is no assurance that a liquid secondary market on anexchange will exist for any particular futures contract or otherexchange-traded derivative or at any particular time. Therefore,it might not be possible to effect closing transactions, and thePortfolio will be unable to terminate its exposure to thederivative. There is a risk of imperfect correlation betweenmovements in the prices of the derivatives and movements inthe securities or index underlying the derivatives or movementsin the prices of the Portfolio's securities that are the subject ofa hedge. Derivatives activity may not be successful. ThePortfolio will incur brokerage fees. The Portfolio will typically berequired to post margin with its futures commission merchant("FCM"). In the event of an insolvency of the FCM, the Portfoliomay not be able to recover all (or any) of the margin it has postedwith the FCM, or to realize the value of any increase in the priceof its positions. Position limits and trading limits are imposedon a number of contracts that any person may trade on aparticular trading day. An exchange may order the liquidationof positions found to be in violation of these limits and it mayimpose sanctions or restrictions. The Commodity FuturesTrading Commission (the "CFTC") may establish additionalposition limits on listed futures and economically equivalentover-the-counter ("OTC") derivatives that may adversely affectthe market liquidity of the instruments in which the Portfoliomay invest. Because of such limits, the Portfolio's adviser maybe precluded from taking positions in certain futures contractsor OTC derivatives as a result of positions held by other clientsof the adviser or by the adviser or its affiliates themselves.Margin and other payments made by the Portfolio with respectto instruments traded on markets outside of the U.S. may notbe afforded the same protections as are afforded thosepayments in the U.S. Certain foreign futures contracts and otherexchange-traded derivatives may be less liquid and morevolatile than U.S. contracts.

Geographic Focus Risk: Because the Portfolio invests a relativelylarge percentage of its assets in issuers or commodities locatedin a single country, a small number of countries, or a particulargeographic region, the Portfolio's performance will be closelytied to market, currency, or economic, political, environment,or regulatory conditions and developments in those countriesor that region, and may be more volatile than the performanceof more geographically-diversified portfolio.

Growth Stock Risk: The prices of growth stocks can declinerapidly and significantly. Growth stocks may underperformvalue stocks and stocks in other broad style categories (and thestock market as a whole) over any period of time and may shiftin and out of favor with investors generally, sometimes rapidly. The Portfolio may underperform other investment portfoliosthat invest more broadly or that favor different investmentstyles. Growth stocks typically do not pay dividends at levelsassociated with other types of stocks, if at all.

Hedging Risk: SSGA may (but will not necessarily) engage inhedging transactions. A hedging strategy may not work the waySSGA expects. There is no guarantee that any hedging strategyused by the Portfolio will be successful in hedging the subjectrisks. It is possible that the Portfolio will lose money on a hedgingtransaction and on the asset of the Portfolio that was thesubject of the hedge. The performance of the futures contractmay differ substantially from that of the Index and may increasethe divergence of the Portfolio's returns from those of the Index.The effectiveness of any hedging transaction entered into in theover-the-counter market depends on the willingness and abilityof the Portfolio's hedging counterparty to perform its obligationsto the Portfolio. Hedging transactions may have the effect ofcreating investment leverage in the Portfolio.

Income Risk: The Portfolio's income may decline due to fallinginterest rates or other factors. Issuers of securities held by thePortfolio may call or redeem the securities during periods offalling interest rates, and the Portfolio would likely be requiredto reinvest in securities paying lower interest rates. If anobligation held by the Portfolio is prepaid, the Portfolio may haveto reinvest the prepayment in other obligations paying incomeat lower rates. A reduction in the income earned by the Portfoliomay limit the Portfolio's ability to achieve its objective.

Index Tracking Risk: While SSGA seeks to track theperformance of the Index (i.e., achieve a high degree ofcorrelation with the Index), the Portfolio's return may not matchthe return of the Index. The Portfolio incurs a number ofoperating expenses not applicable to the Index, and incurs costsin buying and selling securities. In addition, the Portfolio maynot be fully invested at times. Changes in the composition ofthe Index and regulatory requirements also may impact thePortfolio's ability to match the return of the Index. SSGA mayapply one or more "screens" or investment techniques to refineor limit the number or types of issuers included in the Index inwhich the Portfolio may invest. Application of such screens ortechniques may result in investment performance below thatof the Index and may not produce results expected by SSGA.Index tracking risk may be heightened during times of increasedmarket volatility or other unusual market conditions.

Industrial Sector Risk: Industrial companies are affected bysupply and demand both for their specific product or serviceand for industrial sector products in general. Governmentregulation, world events, exchange rates and economicconditions, technological developments and liabilities forenvironmental damage and general civil liabilities will likewiseaffect the performance of these companies. Aerospace anddefense companies, a component of the industrial sector, canbe significantly affected by government spending policiesbecause companies involved in this industry rely, to a significantextent, on U.S. and foreign government demand for theirproducts and services. Thus, the financial condition of, andinvestor interest in, aerospace and defense companies areheavily influenced by governmental defense spending policieswhich are typically under pressure from efforts to control theU.S. (and other) government budgets. Transportationsecurities, a component of the industrial sector, are cyclical andhave occasional sharp price movements which may result fromchanges in the economy, fuel prices, labor agreements andinsurance costs.

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Inflation-Indexed Securities Risk: It is possible that the Portfoliocould receive at maturity less than the initial principal amountof an inflation-indexed security, could receive at maturity lessthan it invested and/or could earn less on the security than ona conventional bond. Changes in the values of inflation-indexedsecurities may be difficult to predict, and it is possible that aninvestment in such securities will have an effect different fromthat anticipated by SSGA. The principal amounts of inflation-indexed securities are typically only adjusted periodically, andchanges in the values of the securities may only approximatelyreflect changes in inflation rates and may occur substantiallyafter the changes in inflation rates in question occur.

Interest Rate Risk: Declining interest rates generally result inincreases in the values of existing debt instruments, and risinginterest rates generally result in declines in the values of existingdebt instruments. Interest rate risk is generally greater forinvestments with longer durations or maturities. Adjustable rateinstruments also generally increase or decrease in value inresponse to changes in interest rates. When interest ratesdecline, the income received by the Portfolio may decline, andthe Portfolio's yield may also decline. Interest rates mayincrease and could have a substantial and immediate negativeeffect on the values of the Portfolio's investments.

Investment Risk: Investment risk includes the possible loss ofthe entire amount of capital that you invest. Your investment inthe Portfolio may represent an indirect investment in thesecurities and other investments owned by the Portfolio. Thevalues of these securities and investments may increase ordecrease, at times rapidly and unexpectedly. Your investmentin the Portfolio may at any point in the future be worth less thanyour original investment. It is important that you periodicallyevaluate your investment in the Portfolio.

Issuer Risk-Preferred Securities: The value of a security held bythe Portfolio may decline due to a number of factors affecting,or perceived to affect, the issuer of the security (e.g.,management performance, financial leverage, and reduceddemand for the issuer's goods and services, earnings, assetvalue).

Leveraging Risk: Borrowing transactions, reverse repurchaseagreements, certain derivatives transactions, securities lendingtransactions and other investment transactions such as when-issued, delayed-delivery, or forward commitment transactionsmay create investment leverage. When the Portfolio engagesin transactions that have a leveraging effect on the Portfolio'sinvestment portfolio, the value of the Portfolio will be potentiallymore volatile and all other risks will tend to be compounded.The use of leverage is considered to be a speculativeinvestment practice and may result in losses to the Portfolio.Certain derivatives have the potential for unlimited loss,regardless of the size of the initial investment. The use ofleverage may cause the Portfolio to liquidate positions when itmay not be advantageous to do so to satisfy repayment, interestpayment, or margin obligations or to meet asset segregation orcoverage requirements.

Liquidity Risk: The Portfolio may not be able to dispose ofsecurities or close out derivatives transactions readily at afavorable time or prices (or at all) or at prices approximatingthose at which the Portfolio currently values them. Illiquid

securities may trade at a discount and may be subject to widefluctuations in market value. It may be difficult for the Portfolioto value illiquid securities accurately. Disposal of illiquidsecurities may entail registration expenses and othertransaction costs. The Portfolio may seek to borrow money tomeet its obligations (including among other things redemptionobligations) if it is unable to dispose of illiquid investments,resulting in borrowing expenses and possible leveraging of thePortfolio. In some cases, due to unanticipated levels ofilliquidity, the Portfolio may choose to meet its redemptionobligations wholly or in part by distributions of assets in-kind.

Longevity Risk: You will outlive your retirement assets.

Low Short-Term Interest Rate Risk: As short-term interest ratesapproach 0%, the Portfolio may maintain substantial cashbalances. The Portfolio typically does not receive any incomefrom uninvested cash. In addition, if the Portfolio generatesinsufficient income to pay its expenses, it may not pay a dailydividend and may experience a negative rate of income.

Management Risk: SSGA's judgments about the attractiveness,relative value, or potential appreciation of a particular sector,security, commodity or investment strategy or as to a hedgingstrategy may prove to be incorrect, and may cause the Portfolioto incur significant loss. There can be no assurance that SSGA'sinvestment techniques and decisions will produce the desiredresults. The Portfolio will be dependent to a substantial degreeon the continued service of SSGA personnel. The loss of theservices of key personnel or other changes in an investmentmanagement team, may adversely impact the performance ofthe Portfolio.

Market Capitalization Risk: Stocks generally fall into three broadmarket capitalization categories - large, medium, and small.Investing primarily in one category carries the risk that due tocurrent market conditions, or other factors, that category maybe out of favor with investors. By focusing its investments incompanies within a particular range of market capitalizations,the Portfolio may perform less well than many other investmentvehicles during times when companies within that range areout of favor with investors or generally underperform ascompared to other types of investments.

Market Disruption and Geopolitical Risk: The Portfolio is subjectto the risk that geopolitical events will disrupt securitiesmarkets and adversely affect global economies and markets.War, terrorism, and related geopolitical events have led, and inthe future may lead, to increased short-term market volatilityand may have adverse long-term effects on U.S. and worldeconomies and markets generally. Likewise, disasters andsystemic market dislocations may be highly disruptive toeconomies and markets. Those events as well as other changesin foreign and domestic economic and political conditions alsocould adversely affect individual issuers or related groups ofissuers, securities markets, interest rates, credit ratings,inflation, investor sentiment, and other factors affecting thevalue of the Portfolio's investments. Moreover, conditions in onecountry, market, or region might adversely affect markets,issuers and/or foreign exchange rates in other countries,including the U.S. Securities and financial markets may besusceptible to market manipulation or other fraudulent tradepractices, which could disrupt the orderly functioning of these

markets or adversely affect the values of investments traded inthese markets, including investments held by the Portfolio. Tothe extent the Portfolio has focused its investments in themarket or index of a particular region, adverse geopolitical andother events could have a disproportionate impact on thePortfolio.

Market Risk: Market prices of investments held by the Portfoliowill go up or down, sometimes rapidly or unpredictably.Securities prices can change substantially due to various factors(e.g., economic growth or recession, interest rate and currencyrate changes, actual or perceived issuer creditworthiness,market liquidity, and other industry, market and/or economicevents). Further, legal, political, regulatory and tax changes alsomay cause fluctuations in markets and prices of investments.

Market Volatility; Government Intervention Risk: Marketdislocations and other external events, such as the failures ornear failures of significant financial institutions, dislocations ininvestment or currency markets, corporate or governmentaldefaults or credit downgrades, or poor collateral performance,may subject the Portfolio to significant risk of substantialvolatility and loss. Governmental and regulatory authorities havetaken, and may in the future take, actions to provide or arrangecredit supports to financial institutions whose operations havebeen compromised by credit market dislocations and to restoreliquidity and stability to financial systems in their jurisdictions;the implementation of such governmental interventions andtheir impact on both the markets generally and the Portfolio'sinvestment program in particular can be uncertain. In recentperiods, governmental and non-governmental issuers havedefaulted on, or have been forced to restructure, their debts,and many other issuers have faced difficulties obtaining credit. These market conditions may continue, worsen or spread,including, without limitation, in Europe or Asia. Defaults orrestructurings by governments or others of their debts couldhave substantial adverse effects on economies, financialmarkets, and asset valuations around the world. In recentperiods, financial regulators, including the U.S. Federal Reserveand the European Central Bank, have taken steps to maintainhistorically low interest rates, such as by purchasing bonds. Some governmental authorities have taken steps to devaluetheir currencies substantially or have taken other steps tocounter actual or anticipated market or other developments. Steps by those regulators to implement, or to curtail or taper,such activities could have substantial negative effects onfinancial markets. The withdrawal of support, failure of effortsin response to a financial crisis, or investor perception that theseefforts are not succeeding could negatively affect financialmarkets generally as well as the values and liquidity of certainsecurities.

Master/Feeder Structure Risk: The ability of the Portfolio tomeet its investment objective is directly related to the ability ofthe master fund to meet its investment objective. The ability ofthe Portfolio to meet its objective may be adversely affected bythe purchase and redemption activities of other investors in themaster fund. The ability of the Portfolio to meet redemptionrequests will depend on its ability to redeem its interest in themaster fund. SSGA or an affiliate may serve as investmentadviser to the master fund, leading to potential conflicts ofinterest. For example, SSGA or its affiliates may receive feesbased on the amount assets invested in the master fund. SSGA

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may have an incentive to invest the Portfolio's assets in a masterfund sponsored or managed by SSGA or its affiliates in lieu ofinvestments by the Portfolio directly in portfolio securities or inan unaffiliated master fund. Similarly, SSGA may have anincentive to delay or decide against the sale of interests heldby the Portfolio in a master fund sponsored or managed by SSGAor its affiliates. The Portfolio may bear its pro rata portion of theexpenses incurred by the master fund.

Modeling Risk: Any imperfections, errors or limitations inquantitative models could limit any benefit to the Portfolio fromthe use of the models, or could result in incorrect outputs or ininvestment outcomes different from or opposite to thoseexpected or desired by SSGA. These models may makesimplifying assumptions that limit their effectiveness and maydraw from historical data that does not adequately identify orreflect factors necessary to an appropriate or useful output.There can be no assurance that the models will behave asexpected in all market conditions. Computer programming usedto create quantitative models, or the data on which such modelsoperate, might contain one or more errors. Such errors mightnever be detected, or might be detected only after the Portfoliohas sustained a loss (or reduced performance) related to sucherrors. Availability of third-party models could be reduced oreliminated in the future.

Mortgage-Related and Other Asset-Backed Securities Risk:Investments in mortgage-related and other asset-backedsecurities are subject to the risk of significant creditdowngrades, illiquidity, and defaults to a greater extent thanmany other types of fixed income investments. Mortgage-related and other asset-backed securities are subject toprepayment risk. Accordingly, the Portfolio may reinvest theproceeds in other investments at lower interest rates. Thesesecurities may be subject to an increase in duration and interestrate sensitivity, a reduction of value and less potential for capitalappreciation. Underlying cash flows may not be supported bya security interest in a related asset. The values of thesesecurities may be subject to risks associated with thenegligence or malfeasance by their servicers and to the creditrisk of their servicers. There may be legal and practicallimitations on the enforceability of any security interest grantedwith respect to underlying assets, or the value of the underlyingassets, if any, may be insufficient if the issuer defaults.. Thevalue of a "forward roll" transaction will be affected by many ofthe same factors that affect the values of mortgage-relatedsecurities generally. In addition, forward roll transactions mayhave the effect of creating investment leverage in thePortfolio.

Municipal Obligations Risk: The U.S. municipal securitiesmarket is volatile and can be significantly affected by adversetax, legislative, or political changes, the financial condition ofthe issuers of municipal securities and/or relevant sectorconditions. Municipal obligations may also be subject toprepayment risk and extension risk. Certain states and othergovernmental entities have experienced, and may continue toexperience, extreme financial pressures and may be, or beperceived to be, unable to meet all of their obligations. Theforegoing may result in losses to the Portfolio.

Non-U.S. Securities Risk: The value of the Portfolio's non-U.S.securities may be affected favorably or unfavorably by currency

exchange rates, exchange control regulations, and restrictionsor prohibitions on the repatriation of non-U.S. currencies, taxes,political or financial instability, and/or diplomatic developments.Income and gains with respect to investments in certaincountries may be subject to withholding and other taxes. Theremay be less information publicly available about a non-U.S.entity and many non-U.S. entities are not subject to accounting,auditing, and financial reporting standards, regulatoryframework and practices comparable to those in the U.S. Thesesecurities are less liquid and at times volatile. Non-U.S.transaction costs, such as brokerage commissions, custodycost and other fees may be higher than in the U.S. Legalremedies available to investors may be more limited than thoseavailable with regard to U.S. investments. Similar risks mayapply to securities traded on a U.S. securities exchange thatare issued by companies with significant exposure to foreigncountries. Investments in securities of non-U.S. issuers are alsosubject to foreign political and economic risks not associatedwith U.S. investments.

Passive Strategy/Index Risk: The Portfolio will seek to replicateIndex returns regardless of the current or projectedperformance of the Index or of the actual securities comprisingthe Index. The Portfolio generally will buy and will not sell asecurity included in the Index as long as the security is part ofthe Index regardless of any sudden or material decline in valueor foreseeable material decline in value of the security, eventhough SSGA may make a different investment decision forother actively managed accounts or portfolios that hold thesecurity. As a result, the Portfolio's performance may be lessfavorable than that of a portfolio managed using an activeinvestment strategy. The structure and composition of the Indexwill affect the performance, volatility, and risk of the Index (inabsolute terms and by comparison with other indices) and,consequently, the performance, volatility, and risk of thePortfolio. The Portfolio's performance may not match that ofthe Index.

Portfolio Turnover Risk: The Portfolio may engage in active andfrequent trading of its portfolio securities. Portfolio turnovergenerally involves a number of direct and indirect costs andexpenses to the Portfolio, including, for example, brokeragecommissions, dealer mark-ups and bid/asked spreads, andtransaction costs on the sale of securities and reinvestment inother securities. Such costs have the effect of reducing aPortfolio's investment return and the sale of securities by aPortfolio may result in the realization of taxable capital gains,including short-term capital gains.

Real Estate Securities Risk: An investment in a real propertycompany (including without limitation real estate investmenttrusts ("REITs") and real estate operating companies) may besubject to risks including declined value, losses, and changesin economic conditions, supply and demand, interest rates,environmental liability, zoning laws, regulatory limitations,property taxes, and operating expenses. Also, such investmentis subject to additional risks, such as poor performance by themanager of the real property company, adverse changes in taxlaws, difficulties in valuing and disposing of real estate, theeffect of general declines in stock prices. The Portfolio, andindirectly the Portfolio's shareholders, would bear their ratableshares of the real property company's expenses and would atthe same time continue to pay their own fees and expenses.

Re-Balancing Policy Risk: The Portfolio may be re-balanced onlyperiodically against its Index. The Portfolio's holdings may, overtime during the period between re-balancings, differincreasingly from those of the Index, potentially to a significantdegree, resulting in increased variances between theperformance of the Portfolio and the Index. Re-balancing thePortfolio produces transactions costs.

REIT Risk: In addition to the risks associated with investing inthe securities of real property companies, REITs are subject tocertain additional risks. REITs may be affected by changes inthe values of the underlying properties that they own or operate. For example, REITs are dependent on specialized managementskills, may be concentrated in relatively few properties, in asmall geographic area or property type. REITs are also heavilydependent on cash flow. A REIT may be delayed in enforcingits rights as a lessor and it may incur substantial costsassociated in protecting its investments. A REIT could fail tomaintain or qualify for a desired tax and/or registration status(or exemptions, exceptions therefrom).

Repurchase Agreement Risk: Repurchase agreements may beviewed as loans made by the Portfolio which are collateralizedby the securities subject to repurchase. The Portfolio'sinvestment return on such transactions will depend on thecounterparty's willingness and ability to perform its obligationsunder a repurchase agreement. If the Portfolio's counterpartyshould default on its obligations and the Portfolio is delayed orprevented from recovering the collateral, or if the value of thecollateral is insufficient, the Portfolio may realize a loss. ThePortfolio may enter into repurchase agreement transactionswith SSGA or its affiliates.

Risk Associated with Maintaining a Stable Share Price: To theextent the aggregate market value of the Portfolio's assetsvaries from the amortized cost valuation, the Portfolio may notbe able to maintain a stable unit price of $1.00., or sales orredemptions by the Portfolio of its units based on amortizedcost may be dilutive or accretive to certain investors. SSGA mayat any time in its discretion cause the Portfolio to cease sellingor redeeming units at $1.00 per unit; although the Portfolio maycontinue to sell units at $1.00 per unit even at times when theaggregate market value of the Portfolio's assets variessubstantially from the Portfolio's amortized cost valuation. Youmay incur a loss on your investment. SSGA may imposerestrictions, in its discretion, on the ability of investors toredeem their units in the Portfolio.

Risk of Investment in Other Pools: If the Portfolio invests inanother pooled investment vehicle, it is exposed to the risk thatthe other pool will not perform as expected. The Portfolio isexposed indirectly to all of the risks applicable to an investmentin such other pool. Lack of liquidity in the underlying pool couldresult in its value being more volatile than the underlyingportfolio of securities, and may limit the ability of the Portfolioto sell or redeem its interest in the pool at a time or at a priceit might consider desirable. The investment policies andlimitations of the other pool may not be the same as those ofthe Portfolio; as a result, the Portfolio may be subject toadditional or different risks, or may achieve a reducedinvestment return, as a result of its investment in another pool.The Portfolio bears its proportionate share of the fees and

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expenses of any pool in which it invests. SSGA or an affiliatemay serve as investment adviser to a pool in which the Portfoliomay invest, leading to potential conflicts of interest. Forexample, SSGA or its affiliates may receive fees based on theamount of assets invested in the pool. Investment by thePortfolio in the pool may be beneficial to SSGA or an affiliate inthe management of the pool, by helping to achieve economiesof scale or enhancing cash flows. SSGA may have an incentiveto invest the Portfolio's assets in a pool sponsored or managedby SSGA or its affiliates in lieu of investments by the Portfoliodirectly in portfolio securities, or an unaffiliated pool. Similarly,SSGA may have an incentive to delay or decide against the saleof interests held by the Portfolio in a pool sponsored or managedby SSGA or its affiliates.

Securities Lending; Risks of Investment Collateral Risk: Pleaseread the securities lending risk disclosure below. Also, for moreinformation on SSGA's securities lending program and theCollateral Pools, including the "SSGA Securities LendingProgram Disclosure", the "US Cash Collateral StrategyDisclosure Document," the "Navigator Prospectus" and thecurrent fact sheet for each of the Collateral Pools (which includethe mark-to-market unit prices), are available on SSGA's Client'sCorner website or by contacting SSGA.

Settlement Risk: Markets in different countries have differentclearance and settlement procedures and in certain marketsthere have been times when settlements have been unable tokeep pace with the volume of transactions. Delays in settlementmay increase credit risk to the Portfolio, limit the ability of thePortfolio to reinvest the proceeds of a sales of securities, hinderthe ability of the Portfolio to lend its portfolio securities, andpotentially subject the Portfolio to penalties for its failure todeliver to on-purchasers of securities whose delivery to thePortfolio was delayed. Delays in the settlement of securitiespurchased by the Portfolio may limit the ability of the Portfolioto sell those securities at times and prices it considersdesirable, and my subject the Portfolio to losses and costs dueto its own inability to settle with subsequent purchasers of thesecurities from it. The Portfolio may be required to borrowmonies it had otherwise expected to receive in connection withthe settlement of securities sold by it, in order to meet itsobligations to others. Limits on the ability of the Portfolio topurchase or sell securities due to settlement delays couldincrease any variance between the Portfolio's performance andthat of its benchmark index.

Significant Withdrawal Risk: A significant withdrawal of capitalfrom the Portfolio, including a withdrawal by SSGA or itsaffiliates, may affect the Portfolio and its investors adversely.For example, the Portfolio may be required to sell its more liquidportfolio investments to meet a large redemption; the Portfolio'sremaining assets may be less liquid, more volatile, and moredifficult to price. SSGA has the authority to limit redemptionsfrom the Portfolio (potentially for an extended period of time)and to determine whether to make any such redemptions incash, in kind, or partly in cash and partly in kind. Any limitationon redemptions may be imposed in response to market factorsor actual or anticipated redemption activity, which may occursuddenly or unpredictably; investors in the Portfolio may notreceive prior notice of any such limitations (and may not receivenotice of the imposition of any such limitation for some timeafter its imposition). As a result, you may not be able to redeem

your investment in the Portfolio at any particular time or on theterms you might otherwise expect. SSGA may benefit fromthese limitations because SSGA and its affiliate, State StreetBank and Trust Company, receive revenue from managing orproviding services to the Portfolio that is determined in part bythe amount of the net assets of the Portfolio.

Small-, Mid- and Micro-Cap Companies Risk: The securities ofsmall-, mid-, and micro-capitalization companies may be morevolatile and may involve more risk than the securities of largercompanies. Associated returns, if any, could trail the returns oninvestments in securities of larger (or smaller) companies.These companies may have limited product lines, markets orfinancial resources, may lack the competitive strength of largercompanies, and may depend on a few key employees. Thesecompanies may have little or no track record of success. Theprices of smaller companies securities may fluctuate sharply,and the Portfolio may experience difficulty in establishing orclosing out positions in these securities at prevailing marketprices. Smaller companies securities may experiencesignificant price volatility, may be illiquid or may be restrictedas to resale.

Target Date Assumptions Risk: Assumptions and forecastsused by SSGA in developing the Portfolio's asset allocation glidepath are not in line with actual future investment returns andparticipant savings activities, which could result in losses near,at or after the target date year or could result in the Portfolionot providing adequate income at and through retirement.

U.S. Government Securities Risk: The Portfolio may invest indebt securities issued or guaranteed by certain U.S.Government agencies, instrumentalities and sponsoredenterprises. There is no assurance that the U.S. Governmentwould provide financial support to its agencies andinstrumentalities if not required to do so. U.S. Government-sponsored enterprises are not funded by Congressionalappropriations, their securities are not issued by the U.S.Treasury, are not supported by the full faith and credit of theU.S. Government, and they involve increased credit risks.Certain governmental entities have been subject to regulatoryscrutiny regarding their accounting policies and practices andother concerns that may result in legislation, changes inregulatory oversight and/or other consequences that couldadversely affect the credit quality, availability or investmentcharacter of securities issued by these entities. The value andliquidity of U.S. Government securities may be affectedadversely by changes in the ratings of those securities. A creditrating downgrade in the long-term U.S. credit rating or a U.S.credit default could decrease the value and increase thevolatility of the Portfolio's investments.

Utilities Sector Risk: Stock prices for companies in the utilitiessector are affected by supply and demand, operating costs,government regulation, environmental factors, liabilities forenvironmental damage and general civil liabilities, rate caps orrate changes. Although rate changes of a utility usually fluctuatein approximate correlation with financing costs, due to politicaland regulatory factors rate changes ordinarily occur onlyfollowing a delay after the changes in financing costs. The valueof regulated utility debt securities (and, to a lesser extent, equitysecurities) may tend to have an inverse relationship to themovement of interest rates. Certain utility companies have

experienced full or partial deregulation in recent years. Theseutility companies are subject to greater competition and havebeen permitted by regulators to diversify outside of their originalgeographic regions and their traditional lines of business. Theseopportunities may permit certain utility companies to earn morethan their traditional regulated rates of return. Somecompanies, however, may be forced to defend their corebusiness and may be less profitable. In addition, naturaldisasters, terrorist attacks, government intervention or otherfactors may render a utility company's equipment unusable orobsolete and negatively impact profitability. Among the risksthat may affect utility companies are the following: risks ofincreases in fuel and other operating costs; the high cost ofborrowing to finance capital construction during inflationaryperiods; restrictions on operations and increased costs anddelays associated with compliance with environmental andnuclear safety regulations; and the difficulties involved inobtaining natural gas for resale or fuel for generating electricityat reasonable prices. Other risks include those related to theconstruction and operation of nuclear power plants, the effectsof energy conservation and the effects of regulatory changes.

Valuation Risk: SSGA will typically value the Portfolio's assetsat market value. SSGA may determine, however, a fair valuefor a security where market quotations are unavailable orunreliable. There can be no assurance that any such valuationwill accurately reflect the price the Portfolio would receive uponsale of a security, and the Portfolio may sell a security at a pricelower than the price it has been using to value the security.When the Portfolio invests in other portfolios or investmentpools, it will generally value its investments in those portfoliosor pools based on the valuations determined by such otherportfolios or pools, which may not be the same as if the netassets of the portfolios or pools had been valued using theprocedures employed by SSGA on behalf of the Portfolio to valueits own assets. Differences in the methodologies used by thePortfolio to value its holdings and those used by an Indexsponsor to value the Index components may result in variancesbetween the Portfolio's investment return and the Index return.

Value Stock Risk: Value stocks may decline in price or neverreach their expected full market value, either because themarket fails to recognize the stock's intrinsic worth or SSGAoverestimates the stock's expected value. Value stocks mayunderperform stocks in other broad style categories (and thestock market as a whole) over any period of time and may shiftin and out of favor with investors generally, sometimes rapidly,depending on changes in market, economic, and other factors. As a result, at times when it holds substantial investments invalue stocks the Portfolio may underperform other investmentportfolios that invest more broadly or that favor differentinvestment styles.

Variable and Floating Rate Securities Risk: During periods ofincreasing interest rates, changes in the coupon rates may lagbehind the changes in market rates or may have limits on themaximum increases in coupon rates. During periods of declininginterest rates, the coupon rates on such securities readjustdownward resulting in a lower yield. The Portfolio may alsoinvest in variable or floating rate equity securities, whosedividend payments vary based on changes in market rates of

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interest or other factors. The extent of increases and decreasesin the values of these securities and the corresponding changeto the net asset value of the Portfolio in response to changesin market rates of interest generally may be larger thancomparable changes in the value of an equal principal amountof a fixed-rate security having similar credit quality, redemptionprovisions, and maturity. The markets for such securities maybe less developed and have less liquidity than the markets forconventional securities.

Wealth Accumulation Shortfall Risk: The Portfolio may notgenerate sufficient growth to fund your retirement.

Principal Risk Definitions (BlackRock investmentsonly)Active Strategy Risk: Active strategies could result inunderperformance as compared to funds with similarinvestment objectives and strategies.

Asset Allocation Model Risk: The asset allocation model maynot effectively maximize returns or minimize risk, or beappropriate for every investor seeking a particular risk profile.

Commodity Futures Risk: Commodity futures markets can beilliquid, and it may not always be possible for the Fund to exitan investment in commodity futures. There may be an imperfectcorrelation between the price of a futures contract andmovements in the price of the underlying index. The potentialneed to make additional margin payments could require theFund to liquidate securities at a disadvantageous time. Also,the Fund is subject to the risk of default of a counterparty orguaranteeing agent, and restrictions on trading imposed byfutures exchanges.

Commodity Markets Risk: Commodity markets can beextremely volatile and are especially affected by regulatorydevelopments and developments in other markets.

Commodity-Related Investment Risk 1: Exposure to thecommodity markets may subject the Fund to greater volatilitythan investments in traditional equity or fixed-income markets.The value of commodity-linked derivative investments, such ascommodity futures, may be affected by changes in overallmarket movements, commodity index volatility, changes ininterest rates, or factors affecting a particular industry orcommodity, such as drought, floods, weather, embargoes,tariffs and international economic, political and regulatorydevelopments.

Commodity-Related Investment Risk 2: The value ofcommodity-linked derivative investments may be significantlyaffected by changes in overall market movements, commodityindex volatility, changes in interest rates, or factors affecting aparticular industry or commodity, such as drought, floods,weather, embargoes, tariffs and international economic,political and regulatory developments.

Convertible Securities Risk: If interest rates rise, the marketvalue of a convertible security usually falls. Convertiblesecurities are subject to the risk that the issuer may not honorits obligation to pay interest or dividends when due, and theirmarket value may change based on changes in the issuer’scredit rating or the market’s perception of the issuer’s

creditworthiness. Because a convertible security derives aportion of its value from the common stock into which it maybe converted, a convertible security is also subject to the sametypes of risk that apply to the underlying common stock.

Derivatives Risk 1: Investments in derivatives (such as futurescontracts, forward contracts, swaps and options) may reducethe Fund's returns and/or increase volatility. Fluctuations in thevalues of derivatives may not correlate perfectly with the overallsecurities markets. The other party in the transaction may notfulfill its contractual obligation. The possible lack of a liquidsecondary market for derivatives could expose the Fund tolosses.

Derivatives Risk 2: Investments in derivatives (such as futurescontracts, forward contracts, swaps and options) may reducethe Fund's returns and/or increase volatility and are subject tothe risk that the other party in the transaction will not fulfill itscontractual obligation. The possible lack of a liquid secondarymarket for derivatives could expose the Fund to losses.

Derivatives Risk 3: Investments in derivatives may reduce theFund's returns and/or increase volatility. Fluctuations in thevalues of derivatives may not correlate perfectly with the overallsecurities markets. The other party in the transaction may notfulfill its contractual obligation. The possible lack of a liquidsecondary market for derivatives could expose the Fund tolosses.

Derivatives Risk 4: Investments in derivatives (such as futurescontracts, forward contracts, swaps and options) may reducea Fund's returns and/or increase volatility. The other party in thetransaction may not fulfill its contractual obligation. The possiblelack of a liquid secondary market for derivatives could exposea Fund to losses.

Derivatives Risk 5: Investments in derivatives (such as futurescontracts, forward contracts, swaps and options) may reducea Fund's returns and/or increase volatility. Fluctuations in thevalues of derivatives may not correlate perfectly with the overallsecurities markets. The other party in the transaction may notfulfill its contractual obligation. The possible lack of a liquidsecondary market for derivatives could expose a Fund tolosses.

Emerging Markets Risk 1: Investments in emerging markets aresubject to a greater risk of loss than investments in developedmarkets due to the potential for greater market volatility, lowertrading volume, inflation, currency devaluations, limitations onforeign investment, and political and/or economic instability. Inaddition, settlement, registration and custody may be lessreliable as compared to developed markets. Risks traditionallyassociated with investments in emerging markets, includingeconomic, political, liquidity and currency risks, may be morepronounced with respect to investments in frontier markets.

Emerging Markets Risk 2: Investments in emerging markets aresubject to a greater risk of loss than investments in developedmarkets due to the potential for greater market volatility, lowertrading volume, inflation, currency devaluations, limitations onforeign investment, and political and/or economic instability.

Emerging Markets Risk 3: Investments in emerging markets aresubject to a greater risk of loss than investments in developedmarkets due to the potential for greater market volatility, lowertrading volume, inflation, currency devaluations, limitations onforeign investment, and political and/or economic instability. Inaddition, settlement, registration and custody may be lessreliable as compared to developed markets.

Equity Investment Risk: The price of an equity securityfluctuates based on changes in the issuer’s financial conditionand overall market and economic conditions. Equity securitiesare subject to changes in value that may be more volatile thanother asset classes.

Fixed Income for Money Market: An increase in interest ratesmay cause the value of fixed-income securities held by the Fundto decline, and the Fund may incur a loss if required to sell afixed-income security prior to its scheduled maturity. The Fund'sincome may decline when interest rates fall. This decline canoccur because the Fund must invest in lower-yielding bonds asbonds in its portfolio mature or the Fund needs to purchaseadditional bonds. Debt issuers may not honor their obligations.

Fixed Income Investment Risk 1: An increase in interest ratesmay cause the value of fixed-income securities held by the Fundto decline. The Fund's income may decline when interest ratesfall. Debt issuers may not honor their obligations. Securities thatare rated below investment grade may be more volatile andless liquid than higher-rated securities of similar maturity.

Fixed Income Investment Risk 2: An increase in interest ratesmay cause the value of fixed-income securities held by the Fundto decline, and the Fund may incur a loss if required to sell afixed-income security prior to its scheduled maturity. The Fund'sincome may decline when interest rates fall. This decline canoccur because the Fund must invest in lower-yielding bonds asbonds in its portfolio mature or the Fund needs to purchaseadditional bonds. Debt issuers may not honor their obligations.Securities that are rated below investment grade may be morevolatile and less liquid than higher-rated securities of similarmaturity.

Fixed Income Investment Risk 3: An increase in interest ratesmay cause the value of fixed-income securities held by the Fundto decline, and the Fund may incur a loss if required to sell afixed-income security prior to its scheduled maturity. The Fund'sincome may decline when interest rates fall. Debt issuers maynot honor their obligations. Securities that are rated belowinvestment grade may be more volatile and less liquid thanhigher-rated securities of similar maturity.

Fixed Income Investment Risk 4: An increase in interest ratesmay cause the value of fixed income securities held by the Fundto decline, and the Fund may incur a loss if required to sell afixed income security prior to its scheduled maturity. The Fund'sincome may decline when interest rates fall. Debt issuers maynot honor their obligations. Securities that are rated belowinvestment grade may be more volatile and less liquid thanhigher-rated securities of similar maturity.

Fixed Income Investment Risk 5: The Account is subject to therisk that debt issuers may not honor their obligations. An

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increase in interest rates may cause the value of fixed incomesecurities held by the Account to decline, and the Account mayincur a loss if required to sell a fixed income security prior to itsscheduled maturity. The Account's income may decline wheninterest rates fall. This decline can occur because the Accountmust invest in lower-yielding bonds as bonds in its portfoliomature or the Account needs to purchase additional bonds.

Fixed Income Investment Risk 6: An increase in interest ratesmay cause the value of fixed income securities held by the Fundto decline, and the Fund may incur a loss if required to sell afixed income security prior to its scheduled maturity. The Fund'sincome may decline when interest rates fall. This decline canoccur because the Fund must invest in lower-yielding bonds asbonds in its portfolio mature or the Fund needs to purchaseadditional bonds. Debt issuers may not honor their obligations.Securities that are rated below investment grade may be morevolatile and less liquid than higher-rated securities of similarmaturity.

Fixed Income Investment Risk 7: An increase in interest ratesmay cause the value of fixed income securities held by the Fundto decline. The Fund's income may decline when interest ratesfall. There is also a risk that debt issuers may not honor theirobligations. Securities that are rated below investment grademay be more volatile and less liquid than higher-rated securitiesof similar maturity.

Fixed Income Investment Risk 8: An increase in interest ratesmay cause the value of fixed income securities held by a Fundto decline. A Fund's income may decline when interest ratesfall. Debt issuers may not honor their obligations. Securities thatare rated below investment grade may be more volatile andless liquid than higher-rated securities of similar maturity.

Fixed Income Investment Risk 9: An increase in interest ratesmay cause the value of fixed income securities to decline, andthe Fund may incur a loss if required to sell a fixed incomesecurity prior to its scheduled maturity. The Fund's income maydecline when interest rates fall. Debt issuers may not honortheir obligations. Securities that are rated below investmentgrade may be more volatile and less liquid than higher-ratedsecurities of similar maturity.

Fixed Income Investment Risk 10: An increase in interest ratesmay cause the value of fixed-income securities held by the Fundto decline. The Fund's income may decline when interest ratesfall. Debt issuers may not honor their obligations. Securities thatare rated below investment grade may be more volatile andless liquid than higher-rated securities of similar maturity.

Fixed Income Investment Risk 11: An increase in interest ratesmay cause the value of fixed income securities held by a Fundto decline, and a Fund may incur a loss if required to sell a fixedincome security prior to its scheduled maturity. A Fund's incomemay decline when interest rates fall. This decline can occurbecause a Fund must invest in lower-yielding bonds as bondsin its portfolio mature or a Fund needs to purchase additionalbonds. Debt issuers may not honor their obligations. Securitiesthat are rated below investment grade may be more volatileand less liquid than higher-rated securities of similar maturity.

Fixed Income Investment Risk 12: An increase in interest ratesmay cause the value of fixed income securities held by the Fundto decline, and the Fund may incur a loss if required to sell afixed income security prior to its scheduled maturity. The Fund'sincome may decline when interest rates fall. This decline canoccur because the Fund must invest in lower-yielding bonds asbonds in its portfolio mature or the Fund needs to purchaseadditional bonds. Debt issuers may not honor their obligations.Securities that are rated below investment grade may be morevolatile, less liquid and subject to greater levels of credit ordefault risk than higher-rated securities.

Foreign Investment Risk 1: The Fund may suffer losses due topolitical, legal, economic and geographic events affecting anon-U.S. issuer or market. The prices of non-U.S. securities maybe more volatile than those of securities issued by U.S.corporations or other U.S. entities. Securities of non-U.S.issuers denominated in non-U.S. currencies will expose theFund to fluctuations in foreign currency exchange prices.

Foreign Investment Risk 2: The Fund may suffer losses due topolitical, legal, economic and geographic events affecting anon-U.S. issuer or market. Securities of non-U.S. issuersdenominated in non-U.S. currencies will expose the Fund tofluctuations in foreign currency exchange prices.

Foreign Investment Risk 3: The Account may suffer losses dueto political, legal, economic and geographic events affecting anon-U.S. issuer or market. Foreign government issuers may beunable or unwilling to repay principal or interest when due, andthe prices of these securities may be more volatile than thoseissued by corporations or other governments.

Foreign Investment Risk 4: A Fund may suffer losses due topolitical, legal, economic and geographic events affecting anon-U.S. issuer or market. The prices of non-U.S. securities maybe more volatile than those of securities issued by U.S.corporations or other U.S. entities. Securities of non-U.S.issuers denominated in non-U.S. currencies will expose a Fundto fluctuations in foreign currency exchange prices.

Foreign Investment Risk 5: The Fund may suffer losses due topolitical, legal, economic and geographic events affecting anon-U.S. issuer or market. The prices of non-U.S. securities maybe more volatile than those of securities issued by U.S.corporations or other U.S. entities. Securities of non-U.S.issuers denominated in non-U.S. currencies will expose theFund to fluctuations in foreign currency exchange prices.Investments in emerging markets are subject to a greater riskof loss than investments in developed markets.

Foreign Investment Risk 6: The Fund may suffer losses due topolitical, legal, economic and geographic events affecting anon-U.S. issuer or market. The prices of non-U.S. securities maybe more volatile than those of securities issued by U.S. entities.Securities of non-U.S. issuers denominated in non-U.S.currencies will expose the Fund to fluctuations in foreigncurrency exchange prices. Investments in emerging marketsare subject to a greater risk of loss than investments indeveloped markets.

Inflation-Indexed Bond Risk: The value of inflation-indexedbonds is expected to change in response to changes in realinterest rates, which are tied to the relationship between

nominal interest rates and inflation expectations. Inflation-indexed bonds are fixed-income securities whose principalvalue is periodically adjusted according to the rate of inflation.If the index measuring inflation falls, the principal value ofinflation-indexed bonds will be adjusted downward, andconsequently the interest payable on these securities(calculated with respect to a smaller principal amount) will bereduced.

Inflation-Indexed Bond Risk 2: The value of inflation-indexedbonds is expected to change in response to changes in realinterest rates, which are tied to the relationship betweennominal interest rates and inflation expectations. If the indexmeasuring inflation falls, the principal value of inflation-indexedbonds will be adjusted downward, and the interest payable onthese securities will be reduced.

Investment Model Risk: The investment model may noteffectively maximize returns or minimize risk, or be appropriatefor every investor seeking a particular risk profile.

Leverage Risk 1: Some transactions may give rise to a form ofleverage. These transactions may include, among others,derivatives, and may expose the Fund to greater risk andincrease its costs. The use of leverage may cause the Fund toliquidate portfolio positions when it may not be advantageousto do so to satisfy its obligations or to meet any required assetsegregation requirements. Increases and decreases in the valueof the Fund's portfolio will be magnified when the Fund usesleverage.

Leverage Risk 2: Some transactions may give rise to a form ofleverage, which may expose the Fund to greater risk andincrease its costs. The use of leverage may cause the Fund toliquidate portfolio positions when it may not be advantageousto do so to satisfy its obligations or to meet any required assetsegregation requirements. Fluctuations in the value of theFund's portfolio will be magnified when the Fund usesleverage.

Leverage Risk 3: Some transactions may give rise to a form ofleverage, and may include derivatives and expose the Fund togreater risk and increased cost. The use of leverage may causethe Fund to liquidate portfolio positions when it may not beadvantageous to do so to satisfy its obligations or to meetrequired asset segregation requirements. Fluctuations in thevalue of the Fund's portfolio will be magnified when the Funduses leverage.

Mid-Capitalization Companies Risk: Compared to large-capitalization companies, mid-capitalization companies may beless stable and more susceptible to adverse developments, andtheir securities may be more volatile and less liquid.

Mortgage- and Asset-Backed Securities Risk 1: Mortgage- andasset-backed securities represent interests in "pools" ofmortgages or other assets, including consumer loans orreceivables held in trust. Mortgage- and asset-backedsecurities are subject to credit, interest rate, prepayment andextension risks. These securities also are subject to risk ofdefault on the underlying mortgage or asset, particularly duringperiods of economic downturn. Small movements in interestrates (both increases and decreases) may quickly and

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significantly reduce the value of certain mortgage-backedsecurities.

Mortgage- and Asset-Backed Securities Risk 2: Mortgage- andasset-backed securities represent interests in "pools" ofmortgages or other assets. Mortgage- and asset-backedsecurities are subject to credit, interest rate, prepayment andextension risks, and risk of default on the underlying mortgageor asset, particularly during periods of economic downturn.Small movements in interest rates may quickly and significantlyreduce the value of mortgage-backed securities.

Non-U.S. Sovereign and Quasi-Sovereign Issuer Risk: Non-U.S.sovereign debt obligations are debt securities issued orguaranteed by a non-U.S. government, and non-U.S. quasi-sovereign debt obligations are debt securities issued orguaranteed by an entity affiliated with or backed by a non-U.S.government. A non-U.S. sovereign or quasi-sovereign debtissuer may be unable or unwilling to repay principal or payinterest when due, and the Fund may have limited recourse inthe event of a default. Changes in the financial condition orcredit rating of a non-U.S. government may cause the value ofsovereign or quasi-sovereign debt securities, including treasuryobligations, issued by that government to decline.

Real Estate-Related Securities Risk 1: The main risk of realestate related securities is that the value of the underlying realestate may go down. Real estate values can be affected bymany factors including both the general and local economies,the amount of new construction in a particular area, the lawsand regulations (including zoning and tax laws) affecting realestate, the costs of owning, maintaining and improving realestate, availability of mortgages, and changes in interest rates. If the Fund's real estate related investments are concentratedin one geographic area or in one property type, the Fund will beparticularly subject to the risks associated with that area orproperty type. Investments in REITs involve unique risks. REITsmay have limited financial resources, may trade less frequentlyand in limited volume and may be more volatile than othersecurities.

Real Estate-Related Securities Risk 2: Real estate values canbe negatively affected by many factors including both thegeneral and local economies, the amount of new constructionin a particular area, the laws and regulations affecting realestate, the costs of owning, maintaining and improving realestate, availability of mortgages, and changes in interest rates.

Repurchase Agreement Risk 1: If the other party to a repurchaseagreement defaults on its obligation under the agreement, theFund may suffer delays and incur costs or lose money inexercising its rights under the agreement. If the seller fails torepurchase the security and the market value of the securitydeclines, the Fund may lose money.

Repurchase Agreement Risk 2: If the other party to a repurchaseagreement defaults on its obligation under the agreement, theAccount may suffer delays and incur costs or lose money inexercising its rights under the agreement. If the seller fails torepurchase the security and the market value of the securitydeclines, the Account may lose money.

Securities Lending Risk 1: The Fund may engage in securitieslending, which involves borrower credit risk, settlement risk,and cash collateral-related risks, such as the risk that the returnon the cash collateral is insufficient to cover the fees the Fundis committed to pay and the risk that cash collateral may beinvested in securities or other instruments that suffer losses orbecome illiquid.

Securities Lending Risk 2: The Fund and the iShares funds inwhich the Fund may invest may engage in securities lending,which involves borrower credit risk, settlement risk, and cashcollateral-related risks, such as the risk that the return on thecash collateral is insufficient to cover the fees the Fund or theiShares fund, as applicable, is committed to pay and the riskthat cash collateral may be invested in securities or otherinstruments that suffer losses or become illiquid. Securities Lending Risk 3: A Fund may engage in securitieslending, which involves borrower credit risk, settlement risk,and cash collateral-related risks, such as the risk that the returnon the cash collateral is insufficient to cover the fees a Fund iscommitted to pay and the risk that cash collateral may beinvested in securities or other instruments that suffer losses orbecome illiquid.

Short Selling Risk 1: Because making short sales in securitiesthat it does not own exposes the Fund to the risks associatedwith those securities, such short sales involve speculativeexposure risk. The Fund may incur a loss if the price of thesecurity increases between the date of the short sale and thedate on which the Fund replaces the security sold short.

Short Selling Risk 2: Because making short sales in securitiesthat it does not own exposes a Fund to the risks associatedwith those securities, such short sales involve speculativeexposure risk. A Fund may incur a loss if the price of the securitysold short increases between the date of the short sale and thedate on which a Fund replaces the security.

Small-Capitalization Companies Risk: Compared to mid- andlarge-capitalization companies, small-capitalization companiesmay be less stable and more susceptible to adversedevelopments, and their securities may be more volatile andless liquid.

Target Date Risk 1: A “target date” fund may incur losses closeto or after the fund's target retirement date, and there is noguarantee that the fund will provide adequate income for aninvestor’s retirement.

Target Date Risk 2: A "target date" account may incur lossesclose to or after the account’s target retirement date, and thereis no guarantee that the account will provide adequate incomefor an investor's retirement.

U.S. Government Issuers Risk: Obligations of the U.S.government and its agencies and instrumentalities aresupported by varying degrees of credit. Debentures issued byU.S. government agencies are generally backed only by thegeneral creditworthiness and reputation of the governmentagency issuing the debenture and are not backed by the fullfaith and credit of the U.S. government. U.S. Treasuryobligations may differ in their interest rates, maturities, times

of issuance and other characteristics.

Underlying Fund Risk 1: The investment objective and strategiesof a collective investment trust in which the Fund invests(“Underlying Fund”) may differ from the Fund, and there is noassurance that an Underlying Fund will achieve its objective.

Underlying Fund Risk 2: The investment objective and strategiesof an Underlying Fund in which the Fund invests may differ fromthe Fund, and there is no assurance that an Underlying Fundwill achieve its objective.

Underlying Fund Risk 3: The investment objective and strategiesof a collective investment trust or iShares fund in which theFund invests (“Underlying Fund”) may differ from the Fund, andthere is no assurance that an Underlying Fund will achieve itsobjective.

Underlying Fund Risk 4: The investment objective and strategiesof a Fund may differ from the Account, and there is no assurancethat a Fund will achieve its objective.

Volatility Risk: Although the Underlying Index was created bythe index provider to seek lower volatility than the Parent Index,there is no guarantee that this strategy will be successful. TheFund’s name reflects the name of the Underlying Index asprovided by the index provider. However, the index providermay be unsuccessful in creating an index that minimizesvolatility, and there is a risk that the Fund may experience morethan minimum volatility.

Contract Asset Charges The applicable monthly contract asset charges (CAC) rangefrom 0.0000% to 0.3333%.

Plan sponsors should consult their investment contract andparticipants should consult their enrollment kit for any CACcharges applicable to their plan.

Contract asset charges may be affected by the arrangementbetween the plan sponsor and its broker.

Charges Upon Termination Depending on the features elected by your plan, adiscontinuance charge may apply at the time the investmentcontract is terminated.

Closed to New Investors Investment choices which are closed to new investors are notavailable to be added to contracts/plans as of the date listedon the individual investment fact sheet. For this purpose,participants in plans which already included this investmentchoice prior to that date are not treated as new investors.

Trading Restrictions The ability to exchange units of the separate account may berestricted in the event that a sponsor or participant engages intrading patterns which are detrimental to the separate accountor the underlying investment.

Investment choices may be subject to certain transferrestrictions. Participant-directed transfers into this contract

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account may be limited. Additionally, plan-level restrictions mayapply. Automatic scheduled transactions such as payrollcontributions, loan repayment, etc. may not be subject to theserestrictions. However, you may transfer funds out of thiscontract account at any time. These restrictions may bechanged at any time to comply with any restrictions on tradingimposed by the underlying mutual fund.

Type A: Transfers "in" to the investment choice are restrictedto once in any rolling 30-day period. Depending on therecordkeeping platform, certain plans may be subject to arevised restriction where transfers "in" to the investment choiceare restricted for a rolling 30-day period once a round triptransfer ("in" and "out") has been made.

Type B: Transfers "in", payroll contributions, loan repayments,and prescheduled periodic transfers such as rebalancing, etc.are not allowed for this investment.

Redemption Fees The redemption fees may change at any time. A redemptionfee may be assessed if investment choice units are transferred/purchased and sold within a period of days that is shorter thanthe mutual fund company's defined "holding period."Redemption fees are paid to the mutual funds, and are notretained by Transamerica Retirement Solutions.

Benchmark Index Descriptions The Barclays Government/Credit 1-5 Yr TR represents acombination of the Government and Corporate Bond indices forbonds with maturities between one and five years. The returnswe publish for the index are total returns, which includereinvestment of dividends.

The Barclays US Agg Bond TR USD is composed ofapproximately 7,000 asset-backed, corporate, government,and mortgage backed bonds. The index's total return consistsof price appreciation/depreciation and income as a percentageof the original investment. The underlying component indexes(BarCap Government/Corporate Bond Index, Mortgage-BackedSecurities Index and the Asset-Backed Securities Index) arerebalanced monthly by market capitalization.

The Barclays US Government Long TR USD includes thoseindexes found in the LB Government index which have amaturity of 10 years or more. The returns published for the indexare total returns, which include reinvestment of dividends.

The Barclays US Government TR USD is listed for government-bond general and Treasury funds. Because it tracks the returnsof U.S. Treasuries, agency bonds, and one- to three-year U.S.government obligations, this index is effective for trackingportfolios holding non-mortgage government securities. Thereturns we publish for the index are total returns, which includereinvestment of dividends.

The Barclays US Govt/Credit 5-10 Yr TR USD represents acombination of the Government and Corporate Bond indices forbonds with maturities between five and 10 years. The returnswe publish for the index are total returns, which includereinvestment of dividends.

The Barclays Capital U.S. Government/Credit Bond TR Index

represents a combination of the Government and CorporateBond indices. The returns we publish for the index are totalreturns, which include reinvestment of dividends.

The Barclays US Treasury US TIPS TR USD consists of Inflation-Protection securities issued by the U.S. Treasury. The holdingshave at least one year to final maturity, are fixed rate, and areat least investment grade Baa3/BBB-.

The Barclays US Universal TR USD mirrors the increasinglypopular Core Plus choice set used by many U.S.-dollar investors.It is the union of the U.S. Aggregate Index, the U.S. High YieldCorporate Index, the 144A Index, the Eurodollar Index, theEmerging Markets Index, the non-ERISA portion of the CMBSIndex, and the CMBS High Yield Index. Municipal debt, privateplacements, and non-dollar- denominated issues are excludedfrom the Universal Index

The BofAML Convertible Bonds All Qualities Index tracks thereturns of US-traded convertible debt issued by companies witha significant presence in the United States. The index iscomposed of various combinations of convertible structure andcredit quality, e.g. it includes investment-grade, speculativegrade, and non-rated issues. The returns we publish for theindex are total returns, which include reinvestment ofdividends.

The BofAML US High Yield Master II TR USD is a commonlyused benchmark for Corporate High Yield Bonds. The indextracks the performance of below investment grade USdenominated corporate bonds publicly issued in the USdomestic market.

The Citigroup WGBI NonUSD Index covers thirteen government-bond markets: Australia, Austria, Belgium, Canada, Denmark,France, Germany, Italy, Japan, the Netherlands, Spain,Sweden, and the United Kingdom. For inclusion in this index, amarket must total at least (U.S.) $20 billion for threeconsecutive months. Also, a country will be removed if thereare barriers to entry. For example, if a market activelydiscourages foreign investor participation or does not showcommitment to its own policies, it is not eligible for inclusion inthis index.

The Citigroup Three-month Treasury Bill Index are government-backed short-term investments considered to be risk-free andas good as cash because the maturity is only three months.Morningstar collects yields on the T-bill on a monthly basis fromthe Treasury Department.

The DJ US Financial TR USD consists of companies included inthe Dow Jones Global Universe Index and derive their primaryrevenue from the financial sector. The Dow Jones GlobalUniverse Index covers 95% of the underlying free-float marketcapitalization at the country level for developed markets(excluding Europe) and at the aggregate level for Europe andemerging markets (all Europe and all emerging markets).

The DJ US Health Care TR USD consists of companies includedin the Dow Jones Global Universe Index and derive their primaryrevenue from the healthcare sector. The Dow Jones GlobalUniverse Index covers 95% of the underlying free-float marketcapitalization at the country level for developed markets

(excluding Europe) and at the aggregate level for Europe andemerging markets (all Europe and all emerging markets).

The DJ US Select REIT TR USD tracks the performance ofpublicly traded Real Estate Investment Trusts. To be includedin this index a company must be an owner and operator ofcommercial or residential real estate, derive at least 75% of itsrevenue from real estate assets, have a market capitalizationof more than $200 million and meet certain stock liquidityrequirements.

The DJ Utilities Average TR USD consists of 15 geographicallyrepresentative gas and electric utility companies. The index isprice weighted, meaning it is calculated by adding up the dailyprices of the 15 stocks and dividing by a stock split-adjusteddivisor. Dividends are reinvested to reflect the actualperformance of the underlying securities, thus the figure is atotal return.

The Morningstar Aggressive Target Risk represents a portfolioof global equities, bonds and traditional inflation hedges suchas commodities and TIPS. This portfolio is held in a staticallocation appropriate for U.S. investors who seek above-average exposure to equity market risk and returns.

The Morningstar Lifetime Moderate 2010 Index represents aportfolio of global equities, bonds and traditional inflationhedges such as commodities and TIPS. This portfolio is held inproportions appropriate for a U.S. investor who is nearretirement. The Moderate risk profile is for investors who arecomfortable with average exposure to equity market volatility.

The Morningstar Lifetime Moderate 2015 Index represents aportfolio of global equities, bonds and traditional inflationhedges such as commodities and TIPS. This portfolio is held inproportions appropriate for a U.S. investor who is about fiveyears away from retirement. The Moderate risk profile is forinvestors who are comfortable with average exposure to equitymarket volatility.

The Morningstar Lifetime Moderate 2020 represents a portfolioof global equities, bonds and traditional inflation hedges suchas commodities and TIPS. This portfolio is held in proportionsappropriate for a U.S. investor who is about ten years awayfrom retirement. The Moderate risk profile is for investors whoare comfortable with average exposure to equity marketvolatility.

The Morningstar Lifetime Moderate 2025 represents a portfolioof global equities, bonds and traditional inflation hedges suchas commodities and TIPS. This portfolio is held in proportionsappropriate for a U.S. investor who is about 15 years away fromretirement. The Moderate risk profile is for investors who arecomfortable with average exposure to equity market volatility.


The Morningstar Lifetime Moderate 2035 represents a portfolio

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of global equities, bonds and traditional inflation hedges suchas commodities and TIPS. This portfolio is held in proportionsappropriate for a U.S. investor who is about 25 years away fromretirement. The Moderate risk profile is for investors who arecomfortable with average exposure to equity market volatility.




The Morningstar Lifetime Moderate Income represents aportfolio of global equities, bonds and traditional inflationhedges such as commodities and TIPS. This portfolio is held inproportions appropriate for a U.S. investor who is at least tenyears into retirement. The Moderate risk profile is for investorswho are comfortable with average exposure to equity marketvolatility.

The Morningstar Moderately Aggressive Target Risk representsa portfolio of global equities, bonds and traditional inflationhedges such as commodities and TIPS. This portfolio is held ina static allocation appropriate for U.S. investors who seek aslightly above-average exposure to equity market risk andreturns.

The Morningstar Moderately Conservative Target Riskrepresents a portfolio of global equities, bonds and traditionalinflation hedges such as commodities and TIPS. This portfoliois held in a static allocation appropriate for U.S. investors whoseek a slightly below-average exposure to equity market riskand returns.

The Morningstar SEC/Technology TR USD tracks theperformance of publicly traded companies engaged in thedesign, development, and support of computer operatingsystems and applications.

The MSCI ACWI Ex USA NR USD is a capitalization-weightedindex of stocks from Argentina, Australia, Austria, Belgium,Brazil, Canada, Chile, Columbia, Denmark, Finland, France,Germany, Greece, Hong Kong, India, Indonesia, Ireland, Israel,Italy, Japan, Jordan, Korea, Luxembourg, Malaysia, Mexico,Netherlands, New Zealand, Norway, Pakistan, Peru, Philippines,Poland, Portugal, Singapore, South Africa, Spain, Sri Lanka,Sweden, Switzerland, Taiwan, Thailand, Turkey, UnitedKingdom, and Venezuela. The returns reported for this index are

listed in US dollars. NDTR_D indexes provide an estimate of thetotal return that would be achieved by reinvesting one twelfthof the annual yield reported at every month end. It also takesinto account actual dividends before withholding taxes, butexcludes special tax credits declared by companies. In addition,NDTR_D indexes subtract withholding taxes retained at thesource, for foreigners who do not benefit from a double taxationtreaty.

The MSCI EAFE Growth NR USD is widely accepted as abenchmark for international stock performance, the EAFE Indexis an aggregate of 21 individual country indexes that collectivelyrepresent many of the major markets of the world. MSCI Barrautilizes a two dimensional framework for style differentiation.Categorization between value and growth is done via a multi-factor model, with five variables used to define the growthinvestment style and the objective to target 50% of the freefloat adjusted market capitalization of the underlying marketindex. NDTR_D indexes provide an estimate of the total returnthat would be achieved by reinvesting one twelfth of the annualyield reported at every month end. It also takes into accountactual dividends before withholding taxes, but excludes specialtax credits declared by companies. In addition, NDTR_D indexessubtract withholding taxes retained at the source, for foreignerswho do not benefit from a double taxation treaty. The returnswe publish for the index are total returns, which includereinvestment of dividends and are in USD dollars.

The MSCI EAFE Value GR Index is a free float-adjusted marketcapitalization weighted index that is designed to measure theperformance of value oriented stocks in the world's equitymarkets, excluding the U.S. and Canada.

The MSCI EAFE Value NR USD is widely accepted as abenchmark for international stock performance, the EAFE Indexis an aggregate of 21 individual country indexes that collectivelyrepresent many of the major markets of the world. MSCI Barrautilizes a two dimensional framework for style differentiation.Categorization between value and growth is done via a multi-factor model, with three variables used to define the valueinvestment style and the objective to target 50% of the freefloat adjusted market capitalization of the underlying marketindex. NDTR_D indexes provide an estimate of the total returnthat would be achieved by reinvesting one twelfth of the annualyield reported at every month end. It also takes into accountactual dividends before withholding taxes, but excludes specialtax credits declared by companies. In addition, NDTR_D indexessubtract withholding taxes retained at the source, for foreignerswho do not benefit from a double taxation treaty. The returnswe publish for the index are total returns, which includereinvestment of dividends and are in USD dollars.

The Morgan Stanley Capital International (MSCI) EmergingMarkets Free Index is typically made up of stocks fromapproximately 26 emerging market countries. NDTR_D indexesare calculated daily and take into account actual dividendsreinvested daily before withholding taxes, but exclude specialtax credits declared by companies. In addition, NDTR_D indexessubtract withholding taxes retained at the source, for foreignerswho do not benefit from a double taxation treaty.

The MSCI Europe NR Index is listed for Europe stock funds. Thisindex measures the performance of stock markets in Austria,

Belgium, Denmark, Finland, France, Germany, Italy, theNetherlands, Norway, Spain, Sweden, Switzerland, Ireland,Portugal, and the United Kingdom. Total returns date back toDecember 1981. NR indices provide an estimate of the totalreturn that would be achieved by reinvesting one twelfth of theannual yield reported at every month end. It also takes intoaccount actual dividends before withholding taxes, butexcludes special tax credits declared by companies. In addition,NR indices subtract withholding taxes retained at the source,for foreigners who do not benefit from a double taxationtreaty.

The MSCI Pacific NR Index, formerly known as MS Pacific, islisted for Pacific stock funds and measures the performance ofstock markets in Australia, Hong Kong, Japan, New Zealand,and Singapore, and Malaysia. NR indices provide an estimateof the total return that would be achieved by reinvesting onetwelfth of the annual yield reported at every month end. It alsotakes into account actual dividends before withholding taxes,but excludes special tax credits declared by companies. Inaddition, NR indices subtract withholding taxes retained at thesource, for foreigners who do not benefit from a double taxationtreaty. The returns we publish for the index are total returns,which include reinvestment of dividends.

The MSCI World ex US NR Index measures the performance ofthe stock market in the following countries: Australia, Austria,Belgium, Canada, Denmark, Finland, France, Germany, HongKong, Ireland, Italy, Japan, Malaysia, Netherlands, NewZealand, Norway, Singapore, Spain, Sweden, Switzerland andthe United Kingdom.

The MSCI World NR USD includes all 23 MSCI developedmarket countries NDTR_D indexes are calculated daily and takeinto account actual dividends reinvested daily beforewithholding taxes, but exclude special tax credits declared bycompanies. In addition, NDTR_D indexes subtract withholdingtaxes retained at the source, for foreigners who do not benefitfrom a double taxation treaty. The returns we publish for theindex are total returns, which included.

The MSCI World Metals & Mining ID Index is subset of the MSCIWorld index covering those securities whose primaryoperations are in industries related to metals and mining. TheMSCI World Index is a free float-adjusted market capitalizationindex that is designed to measure global developed marketequity performance. As of April 2002 the MSCI World Indexconsisted of the following 23 developed market country indices:Australia, Austria, Belgium, Canada, Denmark, Finland, France,Germany, Greece, Hong Kong, Ireland, Italy, Japan,Netherlands, New Zealand, Norway, Portugal, Singapore,Spain, Sweden, Switzerland, the United Kingdom and theUnited States.

The MSCI World/Real Estate NR USD is a subset of the MSCIWorld index covering those securities whose primaryoperations are in industries related to real estate. The MSCIWorld Index is a free float-adjusted market capitalization indexthat is designed to measure global developed market equityperformance. As of April 2002 the MSCI World Index consistedof the following 23 developed market country indices: Australia,Austria, Belgium, Canada, Denmark, Finland, France, Germany,Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New

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Zealand, Norway, Portugal, Singapore, Spain, Sweden,Switzerland, the United Kingdom and the U.S.A. NDTR_Dindexes provide an estimate of the total return that would beachieved by reinvesting one twelfth of the annual yield reportedat every month end. It also takes into account actual dividendsbefore withholding taxes, but excludes special tax creditsdeclared by companies. In addition, NDTR_D indexes subtractwithholding taxes retained at the source, for foreigners who donot benefit from a double taxation treaty. The returns we publishfor the index are total returns, which include reinvestment ofdividends and are in USD dollars.

The Russell 1000 Growth TR USD measures the performanceof those Russell 1000 companies with higher price-to-bookratios and higher forecasted growth values. The Russell 1000Index measures the performance of the 1,000 largest U.S.companies based on total market capitalization, whichrepresent approximately 98% of the investable U.S. equitymarket.

The Russell 1000 TR USD is a benchmark that measures theperformance of the 1,000 largest companies in the Russell 3000Index, which represents approximately 92% of the total marketcapitalization of the Russell 3000 Index.

The Russell 1000 Value TR USD measures the performance ofthose Russell 1000 companies with lower price-to-book ratiosand lower forecasted growth values. The Russell 1000 Indexmeasures the performance of the 1,000 largest U.S. companiesbased on total market capitalization, which representapproximately 98% of the investable U.S. equity market.

The Russell 2000 Growth TR USD is a Market-weighted totalreturn index that measures the performance of companieswithin the Russell 2000 Index having higher price-to-book ratiosand higher forecasted growth values. The Russell 2000 Indexincludes the 2000 firms from the Russell 3000 Index with thesmallest market capitalizations. The Russell 3000 Indexrepresents 98% of the of the investable US equity market.

The Russell 2000 TR USD consists of the smallest 2000companies in the Russell 3000 Index, representingapproximately 7% of the Russell 3000 total marketcapitalization. The returns we publish for the index are totalreturns, which include reinvestment of dividends.

The Russell 2000 Value TR USD is a market-weighted totalreturn index that measures the performance of companieswithin the Russell 2000 Index having lower price-to-book ratiosand lower forecasted growth values. The Russell 2000 Indexincludes the 2000 firms from the Russell 3000 Index with thesmallest market capitalizations. The Russell 3000 Indexrepresents 98% of the of the investable US equity market.

The Russell 2500 Growth TR Index is comprised of those growthstocks that belong to the Russell 2500 Index, which tracks theperformance of the smallest 2,500 stocks by marketcapitalization in the Russell 3000 Index. Growth stocks aredetermined for inclusion in this index using a "non-linearprobability" method, based on a security's relative book-to-priceratio and I/B/E/S forecast long-term growth mean. Stocksrepresented in this index have higher price-to-book ratios andhigher forecasted growth ratios.

The Russell Mid Cap Growth TR USD is a market-weighted totalreturn index that measures the performance of companieswithin the Russell Midcap Index having higher price-to-bookratios and higher forecasted growth values. The Russell MidcapIndex includes firms 201 through 1000, based on marketcapitalization, from the Russell 3000 Index. The Russell 3000Index represents 98% of the of the investable US equitymarket.

The Russell Mid Cap Value TR USD is a market-weighted totalreturn index that measures the performance of companieswithin the Russell Midcap Index having lower price-to-bookratios and lower forecasted growth values. The Russell MidcapIndex includes firms 201 through 1000, based on marketcapitalization, from the Russell 3000 Index. The Russell 3000Index represents 98% of the of the investable US equitymarket.

The S&P 1500 Cons Discretionary TR comprises thosecompanies included in the S&P Composite 1500 that areclassified as members of the GICS consumer discretionarysector.

The S&P MidCap 400 TR covers over 7% of the U.S. equitymarket, and seeks to remain an accurate measure of mid-sizedcompanies, reflecting the risk and return characteristics of thebroader mid-cap universe on an on-going basis.

The S&P North American Natural Resources TR Index is amodified capitalization-weighted index and is used as an equitybenchmark for U.S. traded natural resource-related stocks.Security inclusion for the index is determined by the S&P EquityIndustry Index Committee and the following criteria: theexchange on which the stock is traded, minimum marketcapitalization, minimum float and liquidity requirements. Theweight of a particular stock in the sub-index is capped at apredetermined limit. Stocks are classified by the Global IndustryClassification Standard (GICS).

USTREAS Treasury Bill Auction Average 3 Month is agovernment backed short-term investment considered to berisk-free and as good as cash because the maturity is only threemonths. Morningstar collects yields on the T-bill on a weeklybasis from the Wall Street Journal

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diversified investors intermediate/long horizon

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