Express Jet JP Morgan Moderate Model Portfolio Snapshot
Express Jet JP Morgan Moderate Model Portfolio Snapshot
Express Jet JP Morgan Moderate Model Portfolio Snapshot
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Release date 5/31/2013| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 11 of of 213<br />
<strong>Express</strong> <strong>Jet</strong> <strong>JP</strong> <strong>Morgan</strong> <strong>Moderate</strong> <strong>Model</strong><br />
<strong>Portfolio</strong> <strong>Snapshot</strong><br />
<strong>Portfolio</strong> Value Benchmark Account Number Report Currency<br />
10,000.00 S&P 500 TR USD USD<br />
Analysis<br />
Asset Allocation <strong>Portfolio</strong> <strong>Portfolio</strong> <strong>Portfolio</strong> Bmark Equity Investment Style % Fixed-Income Investment Style %<br />
Long Short Net Net<br />
Total Stock Holdings<br />
692<br />
-100 -50 0 50 100<br />
Cash 10.65 23.25 -12.60 0.00<br />
US Stock 26.44 0.00 26.44 98.80<br />
Non US Stock 11.61 0.00 11.61 1.20<br />
Bond 74.14 2.22 71.92 0.00<br />
Other 2.64 0.01 2.63 0.00<br />
Not Classified 0.00 0.00 0.00 0.00<br />
Total 125.48 25.48 100.00 100.00 0-10 10-25 25-50 >50<br />
27<br />
Value<br />
Core<br />
28<br />
22<br />
4 5 9<br />
1 1 4<br />
Growth<br />
Large<br />
Mid<br />
Small<br />
Not Classified %<br />
0.00<br />
Ltd<br />
100<br />
Mod<br />
0<br />
Ext<br />
0<br />
0 0 0<br />
0 0 0<br />
0-10 10-25 25-50 >50<br />
High<br />
Med<br />
Low<br />
Total Bond Holdings<br />
20479<br />
Not Classified %<br />
0.00<br />
Stock Analysis<br />
Performance (Return as of date 5/31/2013)<br />
Stock Sectors<br />
Sens<br />
Benchmark<br />
<strong>Portfolio</strong><br />
Stock Regions<br />
Greater Asia Americas Greater Europe<br />
Investment Activity Graph<br />
<strong>Portfolio</strong><br />
Benchmark<br />
Initial Mkt Value: 5,156.16<br />
Final Mkt Value: 10,000.00<br />
10.6K<br />
8.5<br />
6.3<br />
4.2<br />
Defen<br />
Cycl<br />
2.1<br />
75%<br />
2004<br />
2007<br />
2010<br />
2013<br />
0.0<br />
<strong>Portfolio</strong> % Bmark %<br />
Defen 24.03 26.00<br />
Cons Defensive 7.61 10.37<br />
Healthcare 13.35 12.47<br />
Utilities 3.07 3.16<br />
Sens 43.73 41.61<br />
Comm Svcs 6.39 3.96<br />
Energy 8.54 10.57<br />
Industrials 10.89 9.95<br />
Technology 17.91 17.13<br />
Cycl 32.24 32.39<br />
Basic Matls 4.34 3.18<br />
Cons Cyclical 9.18 11.45<br />
Financial Svcs 17.03 15.59<br />
Real Estate 1.69 2.17<br />
Not Classified 0.00 0.00<br />
<strong>Portfolio</strong> % Bmark %<br />
Americas 71.42 98.80<br />
North America 69.90 98.80<br />
Central/Latin 1.52 0.00<br />
Greater Asia 4.79 0.00<br />
Japan 3.45 0.00<br />
Australasia 0.00 0.00<br />
Asia Developed 0.42 0.00<br />
Asia emerging 0.92 0.00<br />
Greater Europe 23.81 1.20<br />
United Kingdom 5.80 0.19<br />
Europe Developed 14.96 1.01<br />
Europe Emerging 1.01 0.00<br />
Africa/Middle East 2.04 0.00<br />
Not Classified 0.00 0.00<br />
Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr<br />
<strong>Portfolio</strong> Return 2.66 12.43 8.48 5.54 6.92<br />
Benchmark Return 8.22 27.28 16.87 5.43 7.58<br />
+/- Benchmark Return -5.56 -14.85 -8.40 0.11 -0.66<br />
Time Period Return Best % Worst %<br />
3 Months 14.65 (03/09-05/09) -14.54 (09/08-11/08)<br />
1 Year 29.44 (03/09-02/10) -19.37 (03/08-02/09)<br />
3 Years 14.54 (03/09-02/12) -2.76 (03/06-02/09)<br />
<strong>Portfolio</strong> Yield Yield %<br />
Trailing 12 Month 2.24<br />
Performance Disclosure<br />
The performance data quoted represents past performance and does not guarantee future<br />
results. The investment return and principal value of an investment will fluctuate thus an<br />
investor's shares, when redeemed, may be worth more or less than their original cost.<br />
Current performance may be lower or higher than return data quoted herein. For<br />
information current to the most recent month-end, please visit<br />
http://www.morningstaradvisor.com/familyinfo.asp<br />
Holdings<br />
Top 7 holdings out of 7 Ticker Type Holding Value % Assets<br />
PIMCO Total Return Admin PTRAX MF 3,500.00 35.00<br />
<strong>JP</strong><strong>Morgan</strong> Short Duration Bond Select HLLVX MF 2,500.00 25.00<br />
<strong>JP</strong><strong>Morgan</strong> Equity Index Select HLEIX MF 1,800.00 18.00<br />
Dodge & Cox International Stock DODFX MF 1,100.00 11.00<br />
American Century Equity Income Instl ACIIX MF 500.00 5.00<br />
<strong>Morgan</strong> Stanley Inst Mid Cap Growth P MACGX MF 400.00 4.00<br />
Buffalo Small Cap BUFSX MF 200.00 2.00<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Release date 5/31/2013| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 22 of of 213<br />
<strong>Express</strong> <strong>Jet</strong> <strong>JP</strong> <strong>Morgan</strong> <strong>Moderate</strong> <strong>Model</strong><br />
<strong>Portfolio</strong> <strong>Snapshot</strong><br />
<strong>Portfolio</strong> Value Benchmark Account Number Report Currency<br />
10,000.00 S&P 500 TR USD USD<br />
Risk Analysis<br />
Risk/Reward Scatterplot <strong>Portfolio</strong> Holding B-mark 3-Year Mean<br />
-1.0 0.5 2.1 3.6 5.1 6.7 8.2 9.7 11.3 12.8 14.3 15.9 17.4 18.9 20.5<br />
3-Year Standard Deviation<br />
19.00<br />
17.10<br />
15.20<br />
13.30<br />
11.40<br />
Risk and Return Statistics 3 Yr 5 Yr 10 Yr<br />
As of Date 5/31/2013 <strong>Portfolio</strong> B-mark <strong>Portfolio</strong> B-mark <strong>Portfolio</strong> B-mark<br />
Standard Deviation<br />
Mean<br />
Sharpe Ratio<br />
6.46<br />
8.48<br />
1.28<br />
14.02<br />
16.87<br />
1.18<br />
8.97<br />
5.54<br />
0.62<br />
18.85<br />
5.43<br />
0.36<br />
6.80<br />
6.92<br />
0.77<br />
9.50<br />
7.60<br />
5.70<br />
3.80<br />
1.90<br />
0.00<br />
14.57<br />
7.58<br />
0.46<br />
Performance History Graph <strong>Portfolio</strong> Quarterly Return +/- Benchmark in %<br />
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013<br />
16.0<br />
14.0<br />
12.0<br />
10.0<br />
8.0<br />
6.0<br />
4.0<br />
2.0<br />
B-mark<br />
MPT Statistics 3 Yr 5 Yr 10 Yr<br />
As of Date 5/31/2013<br />
Alpha<br />
Beta<br />
R-squared<br />
1.04<br />
0.44<br />
90.08<br />
2.42<br />
0.46<br />
92.86<br />
-2.0<br />
-4.0<br />
-6.0<br />
-8.0<br />
2.27<br />
0.44<br />
89.88<br />
Fundamental Analysis<br />
Market Maturity Geometric Avg Capitalization (Mil) Valuation Multiples <strong>Portfolio</strong> B-mark Credit Quality<br />
% of Bonds<br />
% of Stocks<br />
Developed Markets<br />
Emerging Markets<br />
Not Available<br />
94.52<br />
5.48<br />
0.00<br />
100.00<br />
0.00<br />
0.00<br />
<strong>Portfolio</strong><br />
Benchmark<br />
34,148.37<br />
60,333.36<br />
Price/Earnings<br />
Price/Book<br />
Price/Sales<br />
Price/Cash Flow<br />
Type Weightings<br />
% of Stocks<br />
High Yield<br />
Distressed<br />
Hard Asset<br />
Cyclical<br />
Slow Growth<br />
Classic Growth<br />
Aggressive Growth<br />
Speculative Growth<br />
Not Available<br />
<strong>Portfolio</strong><br />
3.24<br />
0.50<br />
10.50<br />
41.09<br />
12.88<br />
0.54<br />
20.78<br />
8.56<br />
1.91<br />
B-mark<br />
2.83<br />
0.37<br />
12.01<br />
41.75<br />
12.02<br />
0.64<br />
22.12<br />
6.36<br />
1.90 % 0 5 10 15 20 25 30 35 40 45 50 Profitability<br />
% of Stocks<br />
Net Margin<br />
ROE<br />
ROA<br />
Debt/Capital<br />
Fund Statistics<br />
16.88<br />
2.01<br />
1.31<br />
8.99<br />
16.86<br />
2.35<br />
1.50<br />
10.06<br />
<strong>Portfolio</strong> B-mark<br />
2011 2012 2012<br />
12.81<br />
19.65<br />
7.92<br />
33.42<br />
10.64<br />
16.44<br />
6.52<br />
34.77<br />
Potential Cap Gains Exposure<br />
Avg Net Exp Ratio<br />
Avg Gross Exp Ratio<br />
13.00<br />
21.00<br />
8.00<br />
35.00<br />
15.15<br />
0.59<br />
0.69<br />
AAA<br />
AA<br />
A<br />
BBB<br />
BB<br />
B<br />
Below B<br />
NR/NA<br />
Interest Rate Risk<br />
Maturity<br />
Duration (total portfolio)<br />
Avg Credit Quality<br />
68.50<br />
6.93<br />
12.86<br />
7.50<br />
1.95<br />
1.26<br />
0.63<br />
0.38<br />
<strong>Portfolio</strong><br />
4.96<br />
3.61<br />
-<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Release date 5/31/2013| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 33 of of 213<br />
<strong>Express</strong> <strong>Jet</strong> <strong>JP</strong> <strong>Morgan</strong> <strong>Moderate</strong> <strong>Model</strong><br />
<strong>Portfolio</strong> <strong>Snapshot</strong><br />
<strong>Portfolio</strong> Value Benchmark Account Number Report Currency<br />
10,000.00 S&P 500 TR USD USD<br />
Non-Load Adjustment Returns (Return as of date 5/31/2013)<br />
Total 7 holdings as of 5/31/2013 Type Holdings<br />
Date<br />
% of<br />
Assets<br />
PIMCO Total Return Admin MF 3/31/2013 35.00 3,500.00 0.00 4.16 5.93 7.38 5.99<br />
<strong>JP</strong><strong>Morgan</strong> Short Duration Bond Select MF 4/30/2013 25.00 2,500.00 0.00 0.75 1.61 2.69 2.89<br />
<strong>JP</strong><strong>Morgan</strong> Equity Index Select MF 4/30/2013 18.00 1,800.00 0.00 27.04 16.65 5.28 7.37<br />
Dodge & Cox International Stock MF 3/31/2013 11.00 1,100.00 0.00 35.71 11.52 0.40 11.96<br />
American Century Equity Income Instl MF 3/31/2013 5.00 500.00 0.00 23.20 14.21 6.34 7.92<br />
Holding<br />
Value<br />
7-day<br />
Yield<br />
1 Yr<br />
Ret %<br />
3 Yr<br />
Ret %<br />
5 Yr<br />
Ret %<br />
10 Yr<br />
Ret %<br />
Max Front<br />
Load %<br />
__<br />
__<br />
__<br />
__<br />
__<br />
<strong>Morgan</strong> Stanley Inst Mid Cap Growth P MF 3/31/2013 4.00 400.00 0.00 20.38 13.62 5.83 11.89 5.25<br />
__<br />
Buffalo Small Cap MF 3/31/2013 2.00 200.00 0.00 28.76 13.49 9.65 11.52<br />
Max Back<br />
Load %<br />
__<br />
__<br />
__<br />
__<br />
__<br />
__<br />
__<br />
Performance Disclosure<br />
The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will<br />
fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data<br />
quoted herein. For information current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp.<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Release date 05-31-2013 | FINRA Members: For internal use or client reporting purposes only.<br />
American Century Equity<br />
Income Instl (USD)<br />
Performance 05-31-2013<br />
Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total %<br />
2011 3.62 1.01 -10.27 10.67 3.93<br />
2012 5.99 -0.43 5.80 -0.08 11.57<br />
2013 8.95 — — — 12.17<br />
Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept<br />
Load-adj Mthly 23.20 14.21 6.34 7.92 8.20<br />
Std 03-31-2013 14.69 — 6.49 8.99 8.08<br />
Total Return 23.20 14.21 6.34 7.92 8.20<br />
+/- Std Index -4.08 -2.66 0.91 0.34 —<br />
+/- Cat Index -9.52 -2.38 1.61 -0.10 —<br />
% Rank Cat 90 70 14 31<br />
No. in Cat 1214 1049 941 605<br />
7-day Yield —<br />
Performance Disclosure<br />
The Overall Morningstar Rating is based on risk-adjusted returns,<br />
derived from a weighted average of the three-, five-, and 10-year<br />
(if applicable) Morningstar metrics.<br />
The performance data quoted represents past performance and<br />
does not guarantee future results. The investment return and<br />
principal value of an investment will fluctuate; thus an investor's<br />
shares, when sold or redeemed, may be worth more or less than<br />
their original cost.<br />
Current performance may be lower or higher than return data<br />
quoted herein. For performance data current to the most recent<br />
month-end, please call 800-345-2021 or visit<br />
www.americancentury.com.<br />
Fees and Expenses<br />
Sales Charges<br />
Front-End Load %<br />
Deferred Load %<br />
NA<br />
NA<br />
Fund Expenses<br />
Management Fees % 0.74<br />
12b1 Expense %<br />
NA<br />
Gross Expense Ratio % 0.75<br />
Risk and Return Profile<br />
3 Yr 5 Yr 10 Yr<br />
1049 funds 941 funds 605 funds<br />
Morningstar Rating TM 3Q 5Q 5Q<br />
Morningstar Risk Low Low Low<br />
Morningstar Return Avg +Avg Avg<br />
3 Yr 5 Yr 10 Yr<br />
Standard Deviation 9.63 12.85 10.21<br />
Mean 14.21 6.34 7.92<br />
Sharpe Ratio 1.43 0.53 0.63<br />
MPT Statistics Standard Index Best Fit Index<br />
Morningstar US<br />
Value TR USD<br />
Alpha 2.80 3.33<br />
Beta 0.66 0.65<br />
R-Squared 92.24 95.38<br />
12-Month Yield 2.57%<br />
30-day SEC Yield 2.29%<br />
Potential Cap Gains Exp 18.11%<br />
Morningstar Analyst Rtg TM<br />
„ Silver 01-11-2013<br />
Overall Morningstar Rtg TM Standard Index Category Index Morningstar Cat<br />
QQQQQ S&P 500 TR USD Russell 1000 Value US OE Large Value<br />
1,049 US OE Large Value<br />
TR USD<br />
1 1 1 1 1 1 1 1 1 1 1 1<br />
66 75 69 69 75 78 70 73 73 71 71 72<br />
_ _ ( ) * ( & ) * & ) _<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13 History<br />
100k<br />
80k<br />
60k<br />
40k<br />
20k<br />
10k<br />
4k<br />
Investment Style<br />
Equity<br />
Stock %<br />
Growth of $10,000<br />
American Century Equity<br />
Income Instl<br />
22,272<br />
Category Average<br />
17,338<br />
Standard Index<br />
17,847<br />
Performance Quartile<br />
(within category)<br />
6.53 7.79 8.11 7.82 8.59 7.80 6.02 6.56 7.21 7.28 7.82 8.73 NAV/Price<br />
-4.79 24.65 12.61 2.66 19.82 1.88 -19.89 12.45 13.51 3.93 11.57 12.17 Total Return %<br />
17.31 -4.03 1.73 -2.26 4.02 -3.62 17.10 -14.01 -1.55 1.81 -4.43 -3.21 +/- Standard Index<br />
10.73 -5.38 -3.88 -4.40 -2.43 2.05 16.96 -7.24 -1.99 3.54 -5.94 -4.77 +/- Category Index<br />
— — 53 86 28 50 1 95 47 19 83 — % Rank Cat<br />
— — 1220 1296 1371 1432 1433 1272 1240 1258 1208 1272 No. of Funds in Cat<br />
<strong>Portfolio</strong> Analysis 03-31-2013<br />
Asset Allocation % Net % Long % Short %<br />
Cash 2.45 2.46 0.00<br />
US Stocks 63.86 63.86 0.00<br />
Non-US Stocks 7.80 7.80 0.00<br />
Bonds 0.61 0.61 0.00<br />
Other/Not Clsfd 25.28 25.28 0.00<br />
Total 100.00 100.00 0.00<br />
Equity Style<br />
Value Blend Growth<br />
Large Mid Small<br />
Fixed-Income Style<br />
Ltd Mod Ext<br />
High Med Low<br />
<strong>Portfolio</strong> Statistics Port<br />
Avg<br />
Rel<br />
Index<br />
Rel<br />
Cat<br />
P/E Ratio TTM 15.8 0.93 1.06<br />
P/C Ratio TTM 8.0 0.80 0.92<br />
P/B Ratio TTM 1.9 0.80 1.00<br />
Geo Avg Mkt Cap<br />
$mil<br />
45019 0.75 0.80<br />
Avg Eff Maturity —<br />
Avg Eff Duration —<br />
Avg Wtd Coupon 2.95<br />
Avg Wtd Price 113.35<br />
Credit Quality Breakdown — Bond %<br />
AAA —<br />
AA —<br />
A —<br />
BBB —<br />
BB —<br />
B —<br />
Below B —<br />
NR —<br />
Regional Exposure Stock % Rel Std Index<br />
Americas 89.1 0.90<br />
Greater Europe 10.1 8.40<br />
Greater Asia 0.8 —<br />
Share Chg<br />
since<br />
12-2012<br />
Share<br />
Amount<br />
Holdings:<br />
483 Total Stocks , 5 Total Fixed-Income,<br />
83% Turnover Ratio<br />
Page 1 of 7<br />
Page 4 of 21<br />
% Net<br />
Assets<br />
Y 395,799 Wells Fargo & Co, San Francisco Ca 4.95<br />
Y 6 mil Johnson & Johnson 4.87<br />
Y 5 mil Procter & Gamble Co 3.73<br />
Y 3 mil Exxon Mobil Corporation 2.87<br />
T 8 mil Royal Dutch Shell PLC Class A 2.41<br />
T 4 mil Northern Trust Corporation 2.29<br />
Y 2 mil Stanley Uts 18 2.25<br />
T 5 mil Merck & Co Inc 2.15<br />
Y 6 mil Marsh & McLennan Companies, Inc. 2.14<br />
Y 6 mil AT&T Inc 2.14<br />
T 188 mil Lifepoint Hospitals Cv 3.5% 2.00<br />
7 mil Pfizer Inc 1.96<br />
T 2 mil Chevron Corp 1.96<br />
T 3 mil PNC Financial Services Group Inc 1.88<br />
T 6 mil Tyco International Ltd 1.86<br />
Sector Weightings Stocks % Rel Std Index<br />
h Cyclical 25.9 0.80<br />
r Basic Materials 2.4 0.77<br />
t Consumer Cyclical 3.3 0.28<br />
y Financial Services 19.8 1.27<br />
u Real Estate 0.4 0.20<br />
j Sensitive 39.0 0.94<br />
i Communication Services 5.7 1.45<br />
o Energy 16.6 1.57<br />
p Industrials 10.5 1.05<br />
a Technology 6.2 0.36<br />
k Defensive 35.0 1.35<br />
s Consumer Defensive 9.0 0.87<br />
d Healthcare 14.9 1.20<br />
f Utilities 11.1 3.51<br />
Operations<br />
Family:<br />
Manager:<br />
Tenure:<br />
Objective:<br />
American Century Investments<br />
Multiple<br />
18.5 Years<br />
Equity-Income<br />
Base Currency:<br />
Ticker:<br />
Minimum Initial Purchase:<br />
Min Auto Investment Plan:<br />
USD<br />
ACIIX<br />
$5 mil<br />
$5 mil<br />
Purchase Constraints:<br />
A/C<br />
Incept: 07-08-1998<br />
Type:<br />
MF<br />
Total Assets:<br />
$10,333.54 mil<br />
©2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account<br />
information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for<br />
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any<br />
trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied<br />
by a prospectus, or equivalent, and disclosure statement.<br />
ß ®
Release date 05-31-2013 | FINRA Members: For internal use or client reporting purposes only.<br />
Buffalo Small Cap (USD)<br />
Morningstar Analyst Rtg TM<br />
´ Bronze 03-18-2013<br />
Page 2 of 7<br />
Page 5 of 21<br />
Overall Morningstar Rtg TM Standard Index Category Index Morningstar Cat<br />
QQQQ S&P 500 TR USD Russell 2000 US OE Small Growth<br />
633 US OE Small Growth<br />
Growth TR USD<br />
Performance 05-31-2013<br />
Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total %<br />
2011 5.65 -1.70 -22.19 17.98 -4.67<br />
2012 14.48 -0.39 3.24 1.87 19.93<br />
2013 9.80 — — — 17.57<br />
Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept<br />
Load-adj Mthly 28.76 13.49 9.65 11.52 12.40<br />
Std 03-31-2013 15.02 — 10.75 13.22 12.03<br />
Total Return 28.76 13.49 9.65 11.52 12.40<br />
+/- Std Index 1.49 -3.38 4.22 3.94 —<br />
+/- Cat Index -2.10 -3.97 1.96 1.62 —<br />
% Rank Cat 30 85 12 7<br />
No. in Cat 717 633 567 367<br />
7-day Yield —<br />
Performance Disclosure<br />
The Overall Morningstar Rating is based on risk-adjusted returns,<br />
derived from a weighted average of the three-, five-, and 10-year<br />
(if applicable) Morningstar metrics.<br />
The performance data quoted represents past performance and<br />
does not guarantee future results. The investment return and<br />
principal value of an investment will fluctuate; thus an investor's<br />
shares, when sold or redeemed, may be worth more or less than<br />
their original cost.<br />
Current performance may be lower or higher than return data<br />
quoted herein. For performance data current to the most recent<br />
month-end, please call 800-492-8332 or visit<br />
www.buffalofunds.com.<br />
Fees and Expenses<br />
Sales Charges<br />
Front-End Load %<br />
Deferred Load %<br />
NA<br />
NA<br />
Fund Expenses<br />
Management Fees % 1.00<br />
12b1 Expense %<br />
NA<br />
Gross Expense Ratio % 1.01<br />
Risk and Return Profile<br />
3 Yr 5 Yr 10 Yr<br />
633 funds 567 funds 367 funds<br />
Morningstar Rating TM 2Q 4Q 5Q<br />
Morningstar Risk Avg Avg Avg<br />
Morningstar Return -Avg +Avg +Avg<br />
3 Yr 5 Yr 10 Yr<br />
Standard Deviation 20.36 23.17 19.26<br />
Mean 13.49 9.65 11.52<br />
Sharpe Ratio 0.72 0.50 0.58<br />
MPT Statistics Standard Index Best Fit Index<br />
Morningstar Small<br />
Cap TR USD<br />
Alpha -7.64 -3.39<br />
Beta 1.34 1.05<br />
R-Squared 85.70 93.14<br />
12-Month Yield —<br />
30-day SEC Yield —<br />
Potential Cap Gains Exp 41.65%<br />
9 9 9 9 9 9 9 9 9 9 9 9<br />
96 93 91 99 93 97 95 90 96 97 96 97<br />
* & & ) * ) & * ) ( & _<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13 History<br />
100k<br />
80k<br />
60k<br />
40k<br />
20k<br />
10k<br />
4k<br />
Investment Style<br />
Equity<br />
Stock %<br />
Growth of $10,000<br />
Buffalo Small Cap<br />
25,643<br />
Category Average<br />
18,728<br />
Standard Index<br />
17,847<br />
Performance Quartile<br />
(within category)<br />
14.80 22.18 27.65 25.44 26.94 24.17 16.37 22.48 26.21 24.93 28.17 33.12 NAV/Price<br />
-25.75 51.23 28.82 3.22 13.95 -0.33 -29.84 37.49 16.59 -4.67 19.93 17.57 Total Return %<br />
-3.65 22.55 17.94 -1.69 -1.84 -5.82 7.16 11.03 1.53 -6.78 3.92 2.20 +/- Standard Index<br />
4.52 2.69 14.52 -0.94 0.61 -7.37 8.70 3.02 -12.50 -1.76 5.34 -0.60 +/- Category Index<br />
42 20 2 77 25 84 2 38 96 62 5 — % Rank Cat<br />
630 696 711 723 763 829 834 778 758 764 743 748 No. of Funds in Cat<br />
<strong>Portfolio</strong> Analysis 03-31-2013<br />
Asset Allocation % Net % Long % Short %<br />
Cash 3.40 3.40 0.00<br />
US Stocks 90.09 90.09 0.00<br />
Non-US Stocks 6.52 6.52 0.00<br />
Bonds 0.00 0.00 0.00<br />
Other/Not Clsfd 0.00 0.00 0.00<br />
Total 100.00 100.00 0.00<br />
Equity Style<br />
Value Blend Growth<br />
Large Mid Small<br />
Fixed-Income Style<br />
Ltd Mod Ext<br />
High Med Low<br />
<strong>Portfolio</strong> Statistics Port<br />
Avg<br />
Rel<br />
Index<br />
Rel<br />
Cat<br />
P/E Ratio TTM 28.5 1.69 1.26<br />
P/C Ratio TTM 17.4 1.73 1.25<br />
P/B Ratio TTM 3.5 1.48 1.16<br />
Geo Avg Mkt Cap<br />
$mil<br />
1913 0.03 0.89<br />
Avg Eff Maturity —<br />
Avg Eff Duration —<br />
Avg Wtd Coupon —<br />
Avg Wtd Price —<br />
Credit Quality Breakdown — Bond %<br />
AAA —<br />
AA —<br />
A —<br />
BBB —<br />
BB —<br />
B —<br />
Below B —<br />
NR —<br />
Regional Exposure Stock % Rel Std Index<br />
Americas 94.6 0.96<br />
Greater Europe 5.4 4.49<br />
Greater Asia 0.0 —<br />
Share Chg<br />
since<br />
12-2012<br />
Share<br />
Amount<br />
Holdings:<br />
63 Total Stocks , 0 Total Fixed-Income,<br />
34% Turnover Ratio<br />
% Net<br />
Assets<br />
Y 4 mil Align Technology, Inc. 3.93<br />
Y 3 mil Hexcel Corporation 3.13<br />
Y 5 mil Adtran, Inc. 3.01<br />
T 1 mil Lufkin Industries, Inc. 3.00<br />
Y 2 mil Corporate Executive Board Company 2.93<br />
Y 2 mil Semtech Corporation 2.69<br />
Y 1 mil Stratasys Ltd 2.62<br />
Y 2 mil Life Time Fitness, Inc. 2.57<br />
Y 726,900 CoStar Group, Inc. 2.51<br />
Y 807,750 AthenaHealth, Inc. 2.47<br />
Y 2 mil NeuStar, Inc. 2.45<br />
T 2 mil Fresh Market, Inc. 2.38<br />
Y 2 mil Dealertrack Technologies Inc 2.31<br />
Y 1 mil ACI Worldwide, Inc. 2.26<br />
T 2 mil Polypore International, Inc. 2.16<br />
Sector Weightings Stocks % Rel Std Index<br />
h Cyclical 28.9 0.89<br />
r Basic Materials 0.0 0.00<br />
t Consumer Cyclical 16.4 1.43<br />
y Financial Services 8.6 0.55<br />
u Real Estate 4.0 1.82<br />
j Sensitive 58.0 1.40<br />
i Communication Services 2.5 0.64<br />
o Energy 3.9 0.37<br />
p Industrials 18.9 1.90<br />
a Technology 32.7 1.91<br />
k Defensive 13.0 0.50<br />
s Consumer Defensive 2.5 0.24<br />
d Healthcare 10.6 0.85<br />
f Utilities 0.0 0.00<br />
Operations<br />
Family:<br />
Manager:<br />
Tenure:<br />
Objective:<br />
Base Currency:<br />
Buffalo<br />
Multiple<br />
15.2 Years<br />
Small Company<br />
USD<br />
Ticker:<br />
BUFSX<br />
Minimum Initial Purchase: $2,500<br />
Min Auto Investment Plan: $100<br />
Minimum IRA Purchase: $250<br />
Purchase Constraints: C<br />
Incept: 04-14-1998<br />
Type:<br />
MF<br />
Total Assets:<br />
$3,263.64 mil<br />
©2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account<br />
information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for<br />
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any<br />
trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied<br />
by a prospectus, or equivalent, and disclosure statement.<br />
ß ®
Release date 05-31-2013 | FINRA Members: For internal use or client reporting purposes only.<br />
Dodge & Cox International<br />
Stock (USD)<br />
Performance 05-31-2013<br />
Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total %<br />
2011 2.52 0.46 -21.72 4.23 -15.97<br />
2012 12.72 -8.34 7.41 9.06 21.03<br />
2013 3.64 — — — 8.95<br />
Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept<br />
Load-adj Mthly 35.71 11.52 0.40 11.96 8.37<br />
Std 03-31-2013 11.28 — 1.09 13.43 8.04<br />
Total Return 35.71 11.52 0.40 11.96 8.37<br />
+/- Std Index 4.10 0.51 2.01 3.64 —<br />
+/- Cat Index 9.92 2.39 2.02 2.56 —<br />
% Rank Cat 4 19 10 3<br />
No. in Cat 773 705 609 322<br />
7-day Yield —<br />
Performance Disclosure<br />
The Overall Morningstar Rating is based on risk-adjusted returns,<br />
derived from a weighted average of the three-, five-, and 10-year<br />
(if applicable) Morningstar metrics.<br />
The performance data quoted represents past performance and<br />
does not guarantee future results. The investment return and<br />
principal value of an investment will fluctuate; thus an investor's<br />
shares, when sold or redeemed, may be worth more or less than<br />
their original cost.<br />
Current performance may be lower or higher than return data<br />
quoted herein. For performance data current to the most recent<br />
month-end, please call 800-621-3979 or visit<br />
www.dodgeandcox.com.<br />
Fees and Expenses<br />
Sales Charges<br />
Front-End Load %<br />
Deferred Load %<br />
NA<br />
NA<br />
Fund Expenses<br />
Management Fees % 0.60<br />
12b1 Expense %<br />
NA<br />
Gross Expense Ratio % 0.64<br />
Risk and Return Profile<br />
3 Yr 5 Yr 10 Yr<br />
705 funds 609 funds 322 funds<br />
Morningstar Rating TM 4Q 3Q 5Q<br />
Morningstar Risk +Avg High High<br />
Morningstar Return +Avg +Avg High<br />
3 Yr 5 Yr 10 Yr<br />
Standard Deviation 19.27 26.56 20.63<br />
Mean 11.52 0.40 11.96<br />
Sharpe Ratio 0.66 0.14 0.57<br />
MPT Statistics Standard Index Best Fit Index<br />
MSCI World Ex US<br />
NR USD<br />
Alpha 0.21 0.67<br />
Beta 1.04 1.06<br />
R-Squared 95.94 96.54<br />
12-Month Yield —<br />
30-day SEC Yield —<br />
Potential Cap Gains Exp -6.74%<br />
Morningstar Analyst Rtg TM<br />
Œ Gold 04-02-2013<br />
Overall Morningstar Rtg TM Standard Index Category Index Morningstar Cat<br />
QQQQ<br />
MSCI EAFE NR MSCI ACWI Ex US OE Foreign Large<br />
705 US OE Foreign Large<br />
Blend<br />
USD<br />
USA NR USD Blend<br />
1 1 1 1 1 1 4 4 4 4 4 4<br />
96 83 90 93 95 97 98 98 97 99 98 98<br />
_ _ _ _ _ _ _ _ _ _ & _<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13 History<br />
100k<br />
80k<br />
60k<br />
40k<br />
20k<br />
10k<br />
4k<br />
Investment Style<br />
Equity<br />
Stock %<br />
Growth of $10,000<br />
Dodge & Cox International<br />
Stock<br />
28,434<br />
Category Average<br />
18,343<br />
Standard Index<br />
19,980<br />
Performance Quartile<br />
(within category)<br />
15.81 23.48 30.64 35.03 43.66 46.02 21.90 31.85 35.71 29.24 34.64 37.74 NAV/Price<br />
-13.11 49.42 32.46 16.75 28.01 11.71 -46.69 47.46 13.69 -15.97 21.03 8.95 Total Return %<br />
2.83 10.84 12.22 3.21 1.67 0.54 -3.31 15.69 5.94 -3.83 3.71 1.01 +/- Standard Index<br />
1.84 8.59 11.56 0.13 1.36 -4.94 -1.16 6.01 2.54 -2.26 4.20 4.46 +/- Category Index<br />
— — — — — — — — — — 16 — % Rank Cat<br />
— — — — — — — — — — 786 826 No. of Funds in Cat<br />
<strong>Portfolio</strong> Analysis 03-31-2013<br />
Asset Allocation % Net % Long % Short %<br />
Cash 0.00 0.00 0.00<br />
US Stocks 6.99 6.99 0.00<br />
Non-US Stocks 91.48 91.48 0.00<br />
Bonds 0.00 0.00 0.00<br />
Other/Not Clsfd 1.53 1.53 0.00<br />
Total 100.00 100.00 0.00<br />
Equity Style<br />
Value Blend Growth<br />
Large Mid Small<br />
Fixed-Income Style<br />
Ltd Mod Ext<br />
High Med Low<br />
<strong>Portfolio</strong> Statistics Port<br />
Avg<br />
Rel<br />
Index<br />
Rel<br />
Cat<br />
P/E Ratio TTM 14.2 0.93 0.95<br />
P/C Ratio TTM 6.6 0.97 0.90<br />
P/B Ratio TTM 1.4 0.93 0.85<br />
Geo Avg Mkt Cap<br />
$mil<br />
36394 1.08 1.07<br />
Avg Eff Maturity —<br />
Avg Eff Duration —<br />
Avg Wtd Coupon —<br />
Avg Wtd Price —<br />
Credit Quality Breakdown — Bond %<br />
AAA —<br />
AA —<br />
A —<br />
BBB —<br />
BB —<br />
B —<br />
Below B —<br />
NR —<br />
Regional Exposure Stock % Rel Std Index<br />
Americas 11.4 284.68<br />
Greater Europe 73.3 1.12<br />
Greater Asia 15.3 0.44<br />
Share Chg<br />
since<br />
12-2012<br />
Share<br />
Amount<br />
Holdings:<br />
87 Total Stocks , 0 Total Fixed-Income,<br />
10% Turnover Ratio<br />
Page 3 of 7<br />
Page 6 of 21<br />
% Net<br />
Assets<br />
T 7 mil Roche Holding AG 4.01<br />
T 16 mil Sanofi 3.83<br />
T 25 mil Naspers Ltd 3.69<br />
21 mil Lafarge SA 3.31<br />
45 mil Royal Philips Electronics NV 3.08<br />
T 46 mil Credit Suisse Group 2.81<br />
16 mil Novartis AG ADR 2.71<br />
T 401 mil Vodafone Group PLC 2.66<br />
103 mil HSBC Holdings PLC 2.57<br />
Y 10 mil Bayer AG 2.51<br />
Y 236 mil Barclays PLC 2.44<br />
T 44 mil Hewlett-Packard Co 2.43<br />
20 mil GlaxoSmithKline PLC ADR 2.18<br />
11 mil Swiss Re AG 2.15<br />
T 110 mil Mitsubishi Electric Corp 2.07<br />
Sector Weightings Stocks % Rel Std Index<br />
h Cyclical 38.8 0.86<br />
r Basic Materials 7.2 0.78<br />
t Consumer Cyclical 6.9 0.62<br />
y Financial Services 23.4 1.10<br />
u Real Estate 1.3 0.37<br />
j Sensitive 41.6 1.43<br />
i Communication Services 13.0 2.48<br />
o Energy 5.3 0.75<br />
p Industrials 8.2 0.71<br />
a Technology 15.1 2.87<br />
k Defensive 19.6 0.76<br />
s Consumer Defensive 2.6 0.22<br />
d Healthcare 17.0 1.66<br />
f Utilities 0.0 0.00<br />
Operations<br />
Family:<br />
Manager:<br />
Tenure:<br />
Objective:<br />
Base Currency:<br />
Dodge & Cox<br />
Multiple<br />
12.1 Years<br />
Foreign Stock<br />
USD<br />
Ticker:<br />
DODFX<br />
Minimum Initial Purchase: $2,500<br />
Min Auto Investment Plan: $2,500<br />
Minimum IRA Purchase: $1,000<br />
Purchase Constraints: —<br />
Incept: 05-01-2001<br />
Type:<br />
MF<br />
Total Assets:<br />
$44,729.42 mil<br />
©2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account<br />
information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for<br />
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any<br />
trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied<br />
by a prospectus, or equivalent, and disclosure statement.<br />
ß ®
Release date 05-31-2013 | FINRA Members: For internal use or client reporting purposes only.<br />
<strong>JP</strong><strong>Morgan</strong> Equity Index<br />
Select (USD)<br />
Performance 05-31-2013<br />
Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total %<br />
2011 5.88 0.07 -13.91 11.79 1.96<br />
2012 12.54 -2.81 6.31 -0.44 15.76<br />
2013 10.56 — — — 15.28<br />
Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept<br />
Load-adj Mthly 27.04 16.65 5.28 7.37 8.85<br />
Std 03-31-2013 13.72 — 5.66 8.32 8.71<br />
Total Return 27.04 16.65 5.28 7.37 8.85<br />
+/- Std Index -0.24 -0.22 -0.15 -0.21 —<br />
+/- Cat Index -0.58 -0.27 -0.29 -0.59 —<br />
% Rank Cat 48 20 29 38<br />
No. in Cat 1595 1409 1273 783<br />
7-day Yield —<br />
Performance Disclosure<br />
The Overall Morningstar Rating is based on risk-adjusted returns,<br />
derived from a weighted average of the three-, five-, and 10-year<br />
(if applicable) Morningstar metrics.<br />
The performance data quoted represents past performance and<br />
does not guarantee future results. The investment return and<br />
principal value of an investment will fluctuate; thus an investor's<br />
shares, when sold or redeemed, may be worth more or less than<br />
their original cost.<br />
Current performance may be lower or higher than return data<br />
quoted herein. For performance data current to the most recent<br />
month-end, please call 800-480-4111 or visit<br />
www.jpmorganfunds.com.<br />
Fees and Expenses<br />
Sales Charges<br />
Front-End Load %<br />
Deferred Load %<br />
NA<br />
NA<br />
Fund Expenses<br />
Management Fees % 0.25<br />
12b1 Expense %<br />
NA<br />
Gross Expense Ratio % 0.69<br />
Risk and Return Profile<br />
3 Yr 5 Yr 10 Yr<br />
1409 funds 1273 funds 783 funds<br />
Morningstar Rating TM 4Q 4Q 3Q<br />
Morningstar Risk Avg Avg -Avg<br />
Morningstar Return +Avg +Avg Avg<br />
3 Yr 5 Yr 10 Yr<br />
Standard Deviation 14.02 18.83 14.55<br />
Mean 16.65 5.28 7.37<br />
Sharpe Ratio 1.17 0.36 0.45<br />
MPT Statistics Standard Index Best Fit Index<br />
S&P 500 TR USD<br />
Alpha -0.19 -0.19<br />
Beta 1.00 1.00<br />
R-Squared 100.00 100.00<br />
12-Month Yield —<br />
30-day SEC Yield —<br />
Potential Cap Gains Exp 65.73%<br />
Overall Morningstar Rtg TM Standard Index Category Index Morningstar Cat<br />
QQQQ S&P 500 TR USD Russell 1000 TR US OE Large Blend<br />
1,409 US OE Large Blend<br />
USD<br />
4 4 4 4 4 4 4 4 4 4 4 4<br />
100 99 98 100 100 98 97 99 99 99 99 99<br />
* * * ( * ( * ( * & * _<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13 History<br />
100k<br />
80k<br />
60k<br />
40k<br />
20k<br />
10k<br />
4k<br />
Investment Style<br />
Equity<br />
Stock %<br />
Growth of $10,000<br />
<strong>JP</strong><strong>Morgan</strong> Equity Index Select<br />
17,438<br />
Category Average<br />
16,402<br />
Standard Index<br />
17,847<br />
Performance Quartile<br />
(within category)<br />
20.10 25.40 27.59 28.40 32.26 33.37 20.52 25.32 28.53 28.53 32.35 37.12 NAV/Price<br />
-22.28 28.19 10.50 4.73 15.55 5.28 -37.05 26.42 14.82 1.96 15.76 15.28 Total Return %<br />
-0.18 -0.50 -0.38 -0.19 -0.25 -0.21 -0.06 -0.04 -0.24 -0.15 -0.25 -0.10 +/- Standard Index<br />
-0.63 -1.70 -0.90 -1.54 0.09 -0.49 0.54 -2.01 -1.28 0.46 -0.66 -0.21 +/- Category Index<br />
45 33 43 60 26 53 39 54 32 19 40 — % Rank Cat<br />
1468 1526 1611 1743 1980 2090 2086 2027 2010 1786 1686 1677 No. of Funds in Cat<br />
<strong>Portfolio</strong> Analysis 04-30-2013<br />
Asset Allocation % Net % Long % Short %<br />
Cash 0.00 0.00 0.00<br />
US Stocks 98.25 98.25 0.00<br />
Non-US Stocks 1.16 1.16 0.00<br />
Bonds 0.00 0.00 0.00<br />
Other/Not Clsfd 0.59 0.59 0.00<br />
Total 100.00 100.00 0.00<br />
Equity Style<br />
Value Blend Growth<br />
Large Mid Small<br />
Fixed-Income Style<br />
Ltd Mod Ext<br />
High Med Low<br />
<strong>Portfolio</strong> Statistics Port<br />
Avg<br />
Rel<br />
Index<br />
Rel<br />
Cat<br />
P/E Ratio TTM 16.8 1.00 1.04<br />
P/C Ratio TTM 9.9 0.98 0.96<br />
P/B Ratio TTM 2.3 0.99 0.99<br />
Geo Avg Mkt Cap<br />
$mil<br />
59369 0.98 1.00<br />
Avg Eff Maturity —<br />
Avg Eff Duration —<br />
Avg Wtd Coupon —<br />
Avg Wtd Price —<br />
Credit Quality Breakdown — Bond %<br />
AAA —<br />
AA —<br />
A —<br />
BBB —<br />
BB —<br />
B —<br />
Below B —<br />
NR —<br />
Regional Exposure Stock % Rel Std Index<br />
Americas 98.8 1.00<br />
Greater Europe 1.2 0.97<br />
Greater Asia 0.0 —<br />
Share Chg<br />
since<br />
03-2013<br />
Share<br />
Amount<br />
Holdings:<br />
500 Total Stocks , 0 Total Fixed-Income,<br />
7% Turnover Ratio<br />
Page 4 of 7<br />
Page 7 of 21<br />
% Net<br />
Assets<br />
Y 115,371 Apple Inc 2.90<br />
Y 550,457 Exxon Mobil Corporation 2.78<br />
Y 926,176 Microsoft Corporation 1.74<br />
Y 343,426 Johnson & Johnson 1.66<br />
Y 238,675 Chevron Corp 1.66<br />
Y 1 mil General Electric Co 1.62<br />
Y 32,807 Google, Inc. Class A 1.54<br />
Y 128,710 International Business Machines Co 1.48<br />
Y 335,604 Procter & Gamble Co 1.46<br />
Y 883,230 Pfizer Inc 1.46<br />
Y 674,685 AT&T Inc 1.44<br />
Y 224,084 Berkshire Hathaway Inc Class B 1.35<br />
Y 470,233 <strong>JP</strong><strong>Morgan</strong> Chase & Co 1.31<br />
Y 602,238 Wells Fargo & Co 1.30<br />
Y 470,886 Coca-Cola Co 1.13<br />
Sector Weightings Stocks % Rel Std Index<br />
h Cyclical 31.7 0.98<br />
r Basic Materials 3.2 1.00<br />
t Consumer Cyclical 11.4 1.00<br />
y Financial Services 14.8 0.95<br />
u Real Estate 2.3 1.05<br />
j Sensitive 41.4 0.99<br />
i Communication Services 4.3 1.09<br />
o Energy 10.6 1.00<br />
p Industrials 9.7 0.97<br />
a Technology 16.8 0.98<br />
k Defensive 26.9 1.04<br />
s Consumer Defensive 10.9 1.05<br />
d Healthcare 12.5 1.00<br />
f Utilities 3.6 1.13<br />
Operations<br />
Family:<br />
Manager:<br />
Tenure:<br />
Objective:<br />
Base Currency:<br />
<strong>JP</strong><strong>Morgan</strong><br />
Multiple<br />
18.3 Years<br />
Growth and Income<br />
USD<br />
Ticker:<br />
HLEIX<br />
Minimum Initial Purchase: $1 mil<br />
Min Auto Investment Plan: $100<br />
Minimum IRA Purchase: $1 mil<br />
Purchase Constraints: A<br />
Incept: 07-02-1991<br />
Type:<br />
MF<br />
Total Assets:<br />
$1,725.82 mil<br />
©2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account<br />
information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for<br />
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any<br />
trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied<br />
by a prospectus, or equivalent, and disclosure statement.<br />
ß ®
Release date 05-31-2013 | FINRA Members: For internal use or client reporting purposes only.<br />
<strong>JP</strong><strong>Morgan</strong> Short Duration<br />
Bond Select (USD)<br />
Performance 05-31-2013<br />
Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total %<br />
2011 0.21 0.88 0.24 0.33 1.66<br />
2012 0.53 0.41 0.66 0.05 1.66<br />
2013 0.16 — — — -0.06<br />
Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept<br />
Load-adj Mthly 0.75 1.61 2.69 2.89 4.99<br />
Std 03-31-2013 1.29 — 2.64 3.00 5.04<br />
Total Return 0.75 1.61 2.69 2.89 4.99<br />
+/- Std Index -0.16 -2.98 -2.80 -1.77 —<br />
+/- Cat Index -0.48 -0.82 -0.81 -0.55 —<br />
% Rank Cat 81 77 67 50<br />
No. in Cat 418 356 321 210<br />
7-day Yield —<br />
Performance Disclosure<br />
The Overall Morningstar Rating is based on risk-adjusted returns,<br />
derived from a weighted average of the three-, five-, and 10-year<br />
(if applicable) Morningstar metrics.<br />
The performance data quoted represents past performance and<br />
does not guarantee future results. The investment return and<br />
principal value of an investment will fluctuate; thus an investor's<br />
shares, when sold or redeemed, may be worth more or less than<br />
their original cost.<br />
Current performance may be lower or higher than return data<br />
quoted herein. For performance data current to the most recent<br />
month-end, please call 800-480-4111 or visit<br />
www.jpmorganfunds.com.<br />
Fees and Expenses<br />
Sales Charges<br />
Front-End Load %<br />
Deferred Load %<br />
NA<br />
NA<br />
Fund Expenses<br />
Management Fees % 0.25<br />
12b1 Expense %<br />
NA<br />
Gross Expense Ratio % 0.61<br />
Risk and Return Profile<br />
3 Yr 5 Yr 10 Yr<br />
356 funds 321 funds 210 funds<br />
Morningstar Rating TM 2Q 3Q 3Q<br />
Morningstar Risk Low Low Low<br />
Morningstar Return -Avg Avg Avg<br />
3 Yr 5 Yr 10 Yr<br />
Standard Deviation 0.74 1.27 1.34<br />
Mean 1.61 2.69 2.89<br />
Sharpe Ratio 2.06 1.89 0.87<br />
MPT Statistics Standard Index Best Fit Index<br />
Barclays Govt/Credit<br />
1-5 Yr TR USD<br />
Alpha 0.68 0.26<br />
Beta 0.19 0.54<br />
R-Squared 48.79 88.32<br />
12-Month Yield 1.10%<br />
30-day SEC Yield 0.45%<br />
Potential Cap Gains Exp 0.80%<br />
Overall Morningstar Rtg TM Standard Index Category Index Morningstar Cat<br />
QQQ<br />
Barclays US Agg Barclays<br />
US OE Short-Term<br />
356 US OE Short-Term Bond Bond TR USD Govt/Credit 1-5 Yr<br />
TR USD<br />
Bond<br />
1 1 1 1 1 1 1 1 1 1 1 1<br />
97 88 92 63 81 82 83 89 89 85 81 81<br />
* ( ( & * & & ) ( * ) _<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13 History<br />
100k<br />
80k<br />
60k<br />
40k<br />
20k<br />
10k<br />
4k<br />
Investment Style<br />
Fixed-Income<br />
Bond %<br />
Growth of $10,000<br />
<strong>JP</strong><strong>Morgan</strong> Short Duration<br />
Bond Select<br />
14,359<br />
Category Average<br />
13,802<br />
Standard Index<br />
18,108<br />
Performance Quartile<br />
(within category)<br />
10.87 10.76 10.59 10.46 10.50 10.67 10.63 10.85 10.97 10.95 10.99 10.94 NAV/Price<br />
6.19 2.30 1.21 1.94 4.31 6.07 3.63 4.96 3.06 1.66 1.66 -0.06 Total Return %<br />
-4.07 -1.80 -3.13 -0.49 -0.03 -0.89 -1.61 -0.97 -3.48 -6.18 -2.56 0.86 +/- Standard Index<br />
-1.93 -1.05 -0.64 0.50 0.09 -1.20 -1.49 0.35 -1.02 -1.48 -0.58 -0.12 +/- Category Index<br />
34 52 64 21 31 12 8 80 69 44 86 — % Rank Cat<br />
284 349 405 426 442 444 439 432 432 405 413 441 No. of Funds in Cat<br />
<strong>Portfolio</strong> Analysis 04-30-2013<br />
Asset Allocation % Net % Long % Short %<br />
Cash 19.05 19.05 0.00<br />
US Stocks 0.00 0.00 0.00<br />
Non-US Stocks 0.00 0.00 0.00<br />
Bonds 80.86 80.86 0.00<br />
Other/Not Clsfd 0.08 0.08 0.00<br />
Total 100.00 100.00 0.00<br />
Equity Style<br />
Value Blend Growth<br />
Large Mid Small<br />
Fixed-Income Style<br />
Ltd Mod Ext<br />
High Med Low<br />
<strong>Portfolio</strong> Statistics Port<br />
Avg<br />
Rel<br />
Index<br />
Rel<br />
Cat<br />
P/E Ratio TTM — — —<br />
P/C Ratio TTM — — —<br />
P/B Ratio TTM — — —<br />
Geo Avg Mkt Cap<br />
$mil<br />
— — —<br />
Avg Eff Maturity 2.22<br />
Avg Eff Duration 1.89<br />
Avg Wtd Coupon 3.09<br />
Avg Wtd Price 104.30<br />
Credit Quality Breakdown 03-31-2013 Bond %<br />
AAA 75.54<br />
AA 3.74<br />
A 12.66<br />
BBB 6.73<br />
BB 0.33<br />
B 0.11<br />
Below B 0.07<br />
NR 0.82<br />
Regional Exposure Stock % Rel Std Index<br />
Americas — —<br />
Greater Europe — —<br />
Greater Asia — —<br />
Share Chg<br />
since<br />
03-2013<br />
Share<br />
Amount<br />
Holdings:<br />
0 Total Stocks , 1,658 Total Fixed-Income,<br />
33% Turnover Ratio<br />
Page 5 of 7<br />
Page 8 of 21<br />
% Net<br />
Assets<br />
175 mil US Treasury Note 4.25% 1.57<br />
T 170 mil US Treasury Note 4% 1.49<br />
140 mil US Treasury Note 2% 1.21<br />
140 mil US Treasury Note 1.75% 1.19<br />
T 125 mil US Treasury Note 2.125% 1.08<br />
T 125 mil US Treasury Note 1% 1.05<br />
Y 125 mil US Treasury Note 1% 1.04<br />
105 mil US Treasury Note 1% 0.88<br />
104 mil US Treasury Note 2.375% 0.88<br />
100 mil US Treasury Note 1.75% 0.86<br />
T 100 mil US Treasury Note 2.375% 0.86<br />
87 mil US Treasury Note 0.5% 0.72<br />
85 mil US Treasury Note 0.875% 0.71<br />
85 mil US Treasury Note 0.5% 0.70<br />
80 mil US Treasury Note 2.375% 0.68<br />
Sector Weightings Stocks % Rel Std Index<br />
h Cyclical — —<br />
r Basic Materials — —<br />
t Consumer Cyclical — —<br />
y Financial Services — —<br />
u Real Estate — —<br />
j Sensitive — —<br />
i Communication Services — —<br />
o Energy — —<br />
p Industrials — —<br />
a Technology — —<br />
k Defensive — —<br />
s Consumer Defensive — —<br />
d Healthcare — —<br />
f Utilities — —<br />
Operations<br />
Family:<br />
Manager:<br />
Tenure:<br />
Objective:<br />
Base Currency:<br />
<strong>JP</strong><strong>Morgan</strong><br />
Multiple<br />
6.5 Years<br />
Multisector Bond<br />
USD<br />
Ticker:<br />
HLLVX<br />
Minimum Initial Purchase: $1 mil<br />
Min Auto Investment Plan: $100<br />
Minimum IRA Purchase: $1 mil<br />
Purchase Constraints: —<br />
Incept: 09-04-1990<br />
Type:<br />
MF<br />
Total Assets:<br />
$11,361.66 mil<br />
©2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account<br />
information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for<br />
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any<br />
trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied<br />
by a prospectus, or equivalent, and disclosure statement.<br />
ß ®
Release date 05-31-2013 | FINRA Members: For internal use or client reporting purposes only.<br />
<strong>Morgan</strong> Stanley Inst Mid Cap<br />
Growth P (USD)<br />
Performance 05-31-2013<br />
Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total %<br />
2011 8.15 2.96 -19.25 3.31 -7.11<br />
2012 17.50 -9.35 0.53 1.95 9.17<br />
2013 9.16 — — — 15.51<br />
Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept<br />
Load-adj Mthly 14.06 11.59 4.69 11.29 9.70<br />
Std 03-31-2013 -3.90 — 5.92 12.26 9.42<br />
Total Return 20.38 13.62 5.83 11.89 10.06<br />
+/- Std Index -6.90 -3.26 0.40 4.31 —<br />
+/- Cat Index -6.38 -3.80 -0.42 1.66 —<br />
% Rank Cat 78 73 37 5<br />
No. in Cat 702 639 561 413<br />
7-day Yield —<br />
Performance Disclosure<br />
The Overall Morningstar Rating is based on risk-adjusted returns,<br />
derived from a weighted average of the three-, five-, and 10-year<br />
(if applicable) Morningstar metrics.<br />
The performance data quoted represents past performance and<br />
does not guarantee future results. The investment return and<br />
principal value of an investment will fluctuate; thus an investor's<br />
shares, when sold or redeemed, may be worth more or less than<br />
their original cost.<br />
Current performance may be lower or higher than return data<br />
quoted herein. For performance data current to the most recent<br />
month-end, please call 800-548-7786 or visit<br />
www.morganstanley.com/im.<br />
Fees and Expenses<br />
Sales Charges<br />
Front-End Load % 5.25<br />
Deferred Load %<br />
NA<br />
Fund Expenses<br />
Management Fees % 0.50<br />
12b1 Expense % 0.25<br />
Gross Expense Ratio % 0.96<br />
Risk and Return Profile<br />
3 Yr 5 Yr 10 Yr<br />
639 funds 561 funds 413 funds<br />
Morningstar Rating TM 2Q 3Q 4Q<br />
Morningstar Risk Avg Avg +Avg<br />
Morningstar Return -Avg Avg +Avg<br />
3 Yr 5 Yr 10 Yr<br />
Standard Deviation 17.27 22.98 18.91<br />
Mean 13.62 5.83 11.89<br />
Sharpe Ratio 0.82 0.35 0.60<br />
MPT Statistics Standard Index Best Fit Index<br />
Morningstar Mid<br />
Growth TR USD<br />
Alpha -3.88 -1.86<br />
Beta 1.09 0.95<br />
R-Squared 78.78 88.80<br />
12-Month Yield —<br />
30-day SEC Yield —<br />
Potential Cap Gains Exp 24.15%<br />
Morningstar Analyst Rtg TM<br />
Œ Gold 11-14-2012<br />
Overall Morningstar Rtg TM Standard Index Category Index Morningstar Cat<br />
QQQ S&P 500 TR USD Russell Mid Cap US OE Mid-Cap<br />
639 US OE Mid-Cap Growth<br />
Growth TR USD Growth<br />
8 8 8 8 8 8 8 8 8 8 8 8<br />
98 87 95 98 94 97 94 96 94 95 96 95<br />
( & & & * & ( & & ( ) _<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13 History<br />
100k<br />
80k<br />
60k<br />
40k<br />
20k<br />
10k<br />
4k<br />
Investment Style<br />
Equity<br />
Stock %<br />
Growth of $10,000<br />
<strong>Morgan</strong> Stanley Inst Mid Cap<br />
Growth P<br />
24,812<br />
Category Average<br />
18,644<br />
Standard Index<br />
17,847<br />
Performance Quartile<br />
(within category)<br />
11.86 16.87 20.53 24.24 26.58 32.49 17.10 27.31 36.20 31.77 33.40 38.58 NAV/Price<br />
-31.01 42.24 21.70 18.07 9.87 22.59 -47.37 59.71 32.69 -7.11 9.17 15.51 Total Return %<br />
-8.91 13.56 10.81 13.16 -5.93 17.10 -10.37 33.24 17.62 -9.22 -6.83 0.13 +/- Standard Index<br />
-3.60 -0.47 6.22 5.97 -0.79 11.16 -3.04 13.42 6.30 -5.46 -6.64 -0.61 +/- Category Index<br />
69 20 3 5 41 17 74 3 6 73 90 — % Rank Cat<br />
786 890 903 936 994 967 934 812 759 751 737 722 No. of Funds in Cat<br />
<strong>Portfolio</strong> Analysis 03-31-2013<br />
Asset Allocation % Net % Long % Short %<br />
Cash 1.39 1.39 0.00<br />
US Stocks 74.93 74.93 0.00<br />
Non-US Stocks 20.36 20.36 0.00<br />
Bonds 0.00 0.00 0.00<br />
Other/Not Clsfd 3.32 3.32 0.00<br />
Total 100.00 100.00 0.00<br />
Equity Style<br />
Value Blend Growth<br />
Large Mid Small<br />
Fixed-Income Style<br />
Ltd Mod Ext<br />
High Med Low<br />
<strong>Portfolio</strong> Statistics Port<br />
Avg<br />
Rel<br />
Index<br />
Rel<br />
Cat<br />
P/E Ratio TTM 28.7 1.70 1.51<br />
P/C Ratio TTM 17.3 1.72 1.23<br />
P/B Ratio TTM 4.1 1.75 1.25<br />
Geo Avg Mkt Cap<br />
$mil<br />
7060 0.12 1.00<br />
Avg Eff Maturity —<br />
Avg Eff Duration —<br />
Avg Wtd Coupon —<br />
Avg Wtd Price —<br />
Credit Quality Breakdown — Bond %<br />
AAA —<br />
AA —<br />
A —<br />
BBB —<br />
BB —<br />
B —<br />
Below B —<br />
NR —<br />
Regional Exposure Stock % Rel Std Index<br />
Americas 84.9 0.86<br />
Greater Europe 11.6 9.66<br />
Greater Asia 3.5 —<br />
Share Chg<br />
since<br />
12-2012<br />
Share<br />
Amount<br />
Holdings:<br />
56 Total Stocks , 0 Total Fixed-Income,<br />
26% Turnover Ratio<br />
Page 6 of 7<br />
Page 9 of 21<br />
% Net<br />
Assets<br />
Y 4 mil Motorola Solutions, Inc. 3.85<br />
Y 7 mil Edenred SA 3.66<br />
T 4 mil Solera Holdings, Inc. 3.66<br />
Y 5 mil Brookfield Infrastructure Partners 3.20<br />
Y 4 mil Illumina, Inc. 3.05<br />
Y 3 mil Verisk Analytics, Inc. 2.95<br />
Y 12 mil De Master Blenders 2.87<br />
T 3 mil Gartner, Inc. Class A 2.76<br />
Y 979,345 LinkedIn Corp 2.74<br />
Y 957,902 Salesforce.com, Inc. 2.73<br />
T 3 mil Dollar Tree Stores, Inc. 2.59<br />
T 2 mil AthenaHealth, Inc. 2.59<br />
T 2 mil Stericycle, Inc. 2.58<br />
T 2 mil Rockwood Holdings Inc 2.57<br />
T 6 mil Progressive Corporation 2.53<br />
Sector Weightings Stocks % Rel Std Index<br />
h Cyclical 23.8 0.73<br />
r Basic Materials 5.7 1.79<br />
t Consumer Cyclical 7.0 0.61<br />
y Financial Services 11.1 0.71<br />
u Real Estate 0.0 0.00<br />
j Sensitive 58.1 1.40<br />
i Communication Services 0.0 0.00<br />
o Energy 2.7 0.26<br />
p Industrials 20.6 2.07<br />
a Technology 34.8 2.03<br />
k Defensive 18.1 0.70<br />
s Consumer Defensive 7.9 0.76<br />
d Healthcare 6.8 0.54<br />
f Utilities 3.5 1.09<br />
Operations<br />
Family:<br />
Manager:<br />
Tenure:<br />
Objective:<br />
<strong>Morgan</strong> Stanley<br />
Multiple<br />
11.4 Years<br />
Growth<br />
Base Currency:<br />
USD<br />
Ticker:<br />
MACGX<br />
Minimum Initial Purchase: $1,000<br />
Purchase Constraints: —<br />
Incept: 01-31-1997<br />
Type:<br />
MF<br />
Total Assets:<br />
$6,273.69 mil<br />
©2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account<br />
information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for<br />
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any<br />
trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied<br />
by a prospectus, or equivalent, and disclosure statement.<br />
ß ®
Release date 05-31-2013 | FINRA Members: For internal use or client reporting purposes only.<br />
PIMCO Total Return Admin<br />
(USD)<br />
Performance 05-31-2013<br />
Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total %<br />
2011 1.04 1.80 -1.12 2.16 3.91<br />
2012 2.81 2.73 3.09 1.10 10.08<br />
2013 0.54 — — — -0.50<br />
Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept<br />
Load-adj Mthly 4.16 5.93 7.38 5.99 7.26<br />
Std 03-31-2013 7.65 — 7.50 6.39 7.39<br />
Total Return 4.16 5.93 7.38 5.99 7.26<br />
+/- Std Index 3.24 1.35 1.88 1.33 —<br />
+/- Cat Index 1.93 -1.07 0.02 0.50 —<br />
% Rank Cat 32 34 16 10<br />
No. in Cat 1191 1010 878 614<br />
7-day Yield —<br />
Performance Disclosure<br />
The Overall Morningstar Rating is based on risk-adjusted returns,<br />
derived from a weighted average of the three-, five-, and 10-year<br />
(if applicable) Morningstar metrics.<br />
The performance data quoted represents past performance and<br />
does not guarantee future results. The investment return and<br />
principal value of an investment will fluctuate; thus an investor's<br />
shares, when sold or redeemed, may be worth more or less than<br />
their original cost.<br />
Current performance may be lower or higher than return data<br />
quoted herein. For performance data current to the most recent<br />
month-end, please call 888-877-4626 or visit<br />
www.pimco.com/investments.<br />
Fees and Expenses<br />
Sales Charges<br />
Front-End Load %<br />
Deferred Load %<br />
NA<br />
NA<br />
Fund Expenses<br />
Management Fees % 0.46<br />
12b1 Expense % 0.25<br />
Gross Expense Ratio % 0.71<br />
Risk and Return Profile<br />
3 Yr 5 Yr 10 Yr<br />
1010 funds 878 funds 614 funds<br />
Morningstar Rating TM 4Q 4Q 5Q<br />
Morningstar Risk +Avg Avg Avg<br />
Morningstar Return +Avg +Avg High<br />
3 Yr 5 Yr 10 Yr<br />
Standard Deviation 3.57 4.21 4.11<br />
Mean 5.93 7.38 5.99<br />
Sharpe Ratio 1.61 1.65 1.01<br />
MPT Statistics Standard Index Best Fit Index<br />
Barclays US Credit<br />
TR USD<br />
Alpha 1.84 0.64<br />
Beta 0.88 0.74<br />
R-Squared 45.28 72.30<br />
12-Month Yield 3.63%<br />
30-day SEC Yield 1.59%<br />
Potential Cap Gains Exp 3.29%<br />
Morningstar Analyst Rtg TM<br />
„ Silver 09-07-2012<br />
Overall Morningstar Rtg TM Standard Index Category Index Morningstar Cat<br />
QQQQQ<br />
Barclays US Agg<br />
US OE Intermediate-<br />
Bond TR USD<br />
Term Bond<br />
1,010 US OE Intermediate-<br />
Term Bond<br />
5 5 5 4 5 8 5 5 0 0 0 0<br />
63 52 40 44 71 13 52 50 55 64 91 89<br />
& * & & ( & & * * ) & _<br />
Barclays US<br />
Govt/Credit 5-10 Yr<br />
TR USD<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13 History<br />
100k<br />
80k<br />
60k<br />
40k<br />
20k<br />
10k<br />
4k<br />
Investment Style<br />
Fixed-Income<br />
Bond %<br />
Growth of $10,000<br />
PIMCO Total Return Admin<br />
20,626<br />
Category Average<br />
17,098<br />
Standard Index<br />
18,108<br />
Performance Quartile<br />
(within category)<br />
10.67 10.71 10.67 10.50 10.38 10.69 10.14 10.80 10.85 10.87 11.24 11.07 NAV/Price<br />
9.91 5.30 4.88 2.63 3.74 8.81 4.55 13.55 8.56 3.91 10.08 -0.50 Total Return %<br />
-0.34 1.19 0.54 0.20 -0.60 1.84 -0.69 7.62 2.02 -3.94 5.87 0.41 +/- Standard Index<br />
-3.12 -0.67 -0.42 0.80 -0.07 1.26 -0.51 7.05 -0.86 -6.88 2.87 0.46 +/- Category Index<br />
16 33 16 10 64 2 13 47 28 88 13 — % Rank Cat<br />
784 952 1035 1043 1092 1097 1135 1123 1164 1195 1165 1249 No. of Funds in Cat<br />
<strong>Portfolio</strong> Analysis 03-31-2013<br />
Asset Allocation % Net % Long % Short %<br />
Cash -50.32 16.12 66.44<br />
US Stocks 0.00 0.00 0.00<br />
Non-US Stocks 0.00 0.00 0.00<br />
Bonds 147.63 153.97 6.34<br />
Other/Not Clsfd 2.68 2.72 0.03<br />
Total 100.00 172.80 72.80<br />
Equity Style<br />
Value Blend Growth<br />
Large Mid Small<br />
Fixed-Income Style<br />
Ltd Mod Ext<br />
High Med Low<br />
<strong>Portfolio</strong> Statistics Port<br />
Avg<br />
Rel<br />
Index<br />
Rel<br />
Cat<br />
P/E Ratio TTM — — —<br />
P/C Ratio TTM — — —<br />
P/B Ratio TTM — — —<br />
Geo Avg Mkt Cap<br />
$mil<br />
— — —<br />
Avg Eff Maturity 6.73<br />
Avg Eff Duration 4.73<br />
Avg Wtd Coupon 3.40<br />
Avg Wtd Price —<br />
Credit Quality Breakdown — Bond %<br />
AAA —<br />
AA —<br />
A —<br />
BBB —<br />
BB —<br />
B —<br />
Below B —<br />
NR —<br />
Regional Exposure Stock % Rel Std Index<br />
Americas — —<br />
Greater Europe — —<br />
Greater Asia — —<br />
Share Chg<br />
since<br />
12-2012<br />
Share<br />
Amount<br />
Holdings:<br />
0 Total Stocks , 12,082 Total Fixed-Income,<br />
380% Turnover Ratio<br />
Page 7 of 7<br />
Page 10 of 21<br />
% Net<br />
Assets<br />
T 146,160 Fin Fut Euro$ Cme 06/15/15 12.56<br />
mil<br />
35,754 mil Irs Usd 3mls/1.50000s 03/18/15-16 12.47<br />
99,656 mil Fin Fut Euro$ Cme 12/14/15 8.55<br />
0 Fin Fut Us 10yr Cbt 06/19/13 3.16<br />
29,021 mil Fin Fut Euro$ Cme 03/14/16 2.49<br />
27,304 mil Fin Fut Euro$ Cme 09/14/15 2.34<br />
Y 6,695 mil US Treasury Note 1.625% 2.28<br />
R 5,775 mil Fannie Mae Single Family TBA 3% 20 2.06<br />
0 Irs Usd 3mlq/2.75000s 06/19/13-43 -2.06<br />
T 11 mil Brazil(Fed Rep Of) 10% 1.93<br />
R 5,567 mil US Treasury Note 0.75% 1.93<br />
T 4,854 mil US Treasury Note 1.92<br />
4,123 mil Irs Usd 3mls/4.25000s 06/15/11-41 -1.82<br />
0 Ois Usd Fedl01/1.0 10/15/15 Cme 1.55<br />
T 4,245 mil US Treasury Note 0.75% 1.47<br />
Sector Weightings Stocks % Rel Std Index<br />
h Cyclical — —<br />
r Basic Materials — —<br />
t Consumer Cyclical — —<br />
y Financial Services — —<br />
u Real Estate — —<br />
j Sensitive — —<br />
i Communication Services — —<br />
o Energy — —<br />
p Industrials — —<br />
a Technology — —<br />
k Defensive — —<br />
s Consumer Defensive — —<br />
d Healthcare — —<br />
f Utilities — —<br />
Operations<br />
Family:<br />
Manager:<br />
Tenure:<br />
Objective:<br />
PIMCO<br />
William Gross<br />
26.1 Years<br />
Corporate Bond - General<br />
Base Currency:<br />
Ticker:<br />
Minimum Initial Purchase:<br />
Purchase Constraints:<br />
USD<br />
PTRAX<br />
$1 mil<br />
A<br />
Incept: 09-08-1994<br />
Type:<br />
MF<br />
Total Assets:<br />
$285,162.30 mil<br />
©2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account<br />
information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for<br />
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any<br />
trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied<br />
by a prospectus, or equivalent, and disclosure statement.<br />
ß ®
Page 111 of 21 11<br />
Disclosure for Standardized and Tax Adjusted Returns<br />
The performance data quoted represents past performance and does not<br />
guarantee future results. The investment return and principal value of an<br />
investment will fluctuate thus an investor's shares, when redeemed, may be<br />
worth more or less than their original cost. Current performance may be lower<br />
or higher than return data quoted herein. For information current to the most<br />
recent month-end, please visit<br />
http://www.morningstaradvisor.com/familyinfo.asp<br />
An investment in the fund is not insured or guaranteed by the FDIC or any other<br />
government agency. The current yield quotation more closely reflects the<br />
current earnings of the money market fund than the total return quotation.<br />
Although the fund seeks to preserve the value of your investment at $1.00 per<br />
share, it is possible to lose money by investing in the fund.<br />
Standardized Returns assume reinvestment of dividends and capital gains. It<br />
depicts performance without adjusting for the effects of taxation, but are<br />
adjusted to reflect sales charges and ongoing fund expenses. If adjusted for<br />
taxation, the performance quoted would be significantly reduced. For variable<br />
annuities, additional expenses will be taken in account, including M&E risk<br />
charges, fund-level expenses such as management fees and operating fees,<br />
and policy-level administration fees, charges such as surrender, contract and<br />
sales charges.<br />
After-tax returns are calculated using the highest individual federal marginal<br />
income tax rates, and do not reflect the impact of state and local taxes. Actual<br />
after tax returns depend on the investor's tax situation and may differ from<br />
those shown. The after tax returns shown are not relevant to investors who<br />
hold their fund shares through tax-deferred arrangements such as 401(k) plans<br />
or an IRA. After-tax returns exclude the effects of either the alternative<br />
minimum tax or phase-out of certain tax credits. Any taxes due are as of the<br />
time the distributions are made, and the taxable amount and tax character of<br />
each distribution is as specified by the fund on the dividend declaration date.<br />
Due to foreign tax credits or realized capital losses, after-tax returns may be<br />
greater than before tax returns. After-tax returns for exchange-traded funds are<br />
based on net asset value.<br />
Annualized returns 3/31/2013<br />
Standardized Return (%)<br />
7-day<br />
1 Yr 5 Yr 10 Yr Since<br />
Inception<br />
Yield __<br />
PIMCO Total Return Admin<br />
__<br />
<strong>JP</strong><strong>Morgan</strong> Short Duration Bond Select<br />
__<br />
<strong>JP</strong><strong>Morgan</strong> Equity Index Select<br />
__<br />
Dodge & Cox International Stock<br />
__<br />
American Century Equity Income Inst...<br />
__<br />
<strong>Morgan</strong> Stanley Inst Mid Cap Growth ...<br />
__<br />
Buffalo Small Cap<br />
Barclays Govt/Credit 1-5 Yr TR USD 1.96 3.30 3.63 - -<br />
Barclays US Agg Bond TR USD 3.77 5.47 5.02 - -<br />
Barclays US Credit TR USD 7.00 7.52 5.96 - -<br />
Barclays US Govt/Credit 1-3 Yr TR U... 1.09 2.37 3.06 - -<br />
MSCI EAFE NR USD 11.25 -0.89 9.69 - -<br />
MSCI World Ex US NR USD 10.43 -0.75 9.95 - -<br />
Morningstar Mid Growth TR USD 11.23 7.00 11.69 - -<br />
Morningstar Small Cap TR USD 17.38 9.84 12.75 - -<br />
Maximum<br />
Inception Date Front Load __<br />
7.65 7.50 6.39 7.39 9/8/1994<br />
__<br />
1.29 2.64 3.00 5.04 9/4/1990<br />
__<br />
13.72 5.66 8.32 8.71 7/2/1991<br />
__<br />
11.28 1.09 13.43 8.04 5/1/2001<br />
__<br />
14.69 6.49 8.99 8.08 7/8/1998<br />
-3.90 5.92 12.26 9.42 1/31/1997 5.25<br />
__<br />
15.02 10.75 13.22 12.03 4/14/1998<br />
Maximum<br />
Defer Load __<br />
__<br />
__<br />
__<br />
__<br />
__<br />
__<br />
Net Exp<br />
Ratio %<br />
Gross Exp<br />
Ratio %<br />
0.71 0.71<br />
0.55 0.61<br />
0.20 0.69<br />
0.64 0.64<br />
0.75 0.75<br />
0.96 0.96<br />
1.01 1.01<br />
Return after Taxes (%) on Distribution on Distribution and Sales of Shares<br />
1 Yr 5 Yr 10 Yr Since<br />
Inception<br />
Inception<br />
Date<br />
1 Yr 5 Yr 10 Yr Since<br />
Inception<br />
PIMCO Total Return Admin 5.57 5.22 4.41 4.97 9/8/1994 5.00 5.06 4.30 4.86<br />
<strong>JP</strong><strong>Morgan</strong> Short Duration Bond Select 0.85 1.86 1.98 3.32 9/4/1990 0.81 1.76 1.95 3.25<br />
<strong>JP</strong><strong>Morgan</strong> Equity Index Select 12.84 4.95 7.77 7.89 7/2/1991 7.87 4.13 6.63 7.12<br />
Dodge & Cox International Stock 10.45 0.07 12.59 7.30 5/1/2001 6.55 0.48 11.15 6.46<br />
American Century Equity Income Instl 13.32 5.42 7.26 5.87 7/8/1998 8.76 4.69 6.71 5.57<br />
<strong>Morgan</strong> Stanley Inst Mid Cap Growth P -4.49 5.59 12.06 8.18 1/31/1997 -1.37 4.71 10.31 7.43<br />
Buffalo Small Cap 13.82 10.39 12.41 11.25 4/14/1998 9.97 8.60 11.16 10.27<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Page 122 of 21 11<br />
Disclosure for Standardized and Tax Adjusted Returns(continued)<br />
The performance data quoted represents past performance and does not<br />
guarantee future results. The investment return and principal value of an<br />
investment will fluctuate thus an investor's shares, when redeemed, may be<br />
worth more or less than their original cost. Current performance may be lower<br />
or higher than return data quoted herein. For information current to the most<br />
recent month-end, please visit<br />
http://www.morningstaradvisor.com/familyinfo.asp<br />
An investment in the fund is not insured or guaranteed by the FDIC or any other<br />
government agency. The current yield quotation more closely reflects the<br />
current earnings of the money market fund than the total return quotation.<br />
Although the fund seeks to preserve the value of your investment at $1.00 per<br />
share, it is possible to lose money by investing in the fund.<br />
Standardized Returns assume reinvestment of dividends and capital gains. It<br />
depicts performance without adjusting for the effects of taxation, but are<br />
adjusted to reflect sales charges and ongoing fund expenses. If adjusted for<br />
taxation, the performance quoted would be significantly reduced. For variable<br />
annuities, additional expenses will be taken in account, including M&E risk<br />
charges, fund-level expenses such as management fees and operating fees,<br />
and policy-level administration fees, charges such as surrender, contract and<br />
sales charges.<br />
After-tax returns are calculated using the highest individual federal marginal<br />
income tax rates, and do not reflect the impact of state and local taxes. Actual<br />
after tax returns depend on the investor's tax situation and may differ from<br />
those shown. The after tax returns shown are not relevant to investors who<br />
hold their fund shares through tax-deferred arrangements such as 401(k) plans<br />
or an IRA. After-tax returns exclude the effects of either the alternative<br />
minimum tax or phase-out of certain tax credits. Any taxes due are as of the<br />
time the distributions are made, and the taxable amount and tax character of<br />
each distribution is as specified by the fund on the dividend declaration date.<br />
Due to foreign tax credits or realized capital losses, after-tax returns may be<br />
greater than before tax returns. After-tax returns for exchange-traded funds are<br />
based on net asset value.<br />
Annualized returns 3/31/2013<br />
Standardized Return (%)<br />
Yield<br />
Inception Date<br />
Morningstar US Market TR USD 14.36 6.47 9.37 - -<br />
Morningstar US Value TR USD 17.05 4.70 9.28 - -<br />
Russell 2000 Growth TR USD 14.52 9.04 11.61 - -<br />
Russell 3000 Value TR USD 18.71 5.05 9.33 - -<br />
Russell Mid Cap Growth TR USD 12.76 7.98 11.53 - -<br />
S&P 500 TR USD 13.96 5.81 8.53 - -<br />
USTREAS T-Bill Auction Ave 3 Mon 0.09 0.28 1.72 - -<br />
7-day<br />
1 Yr 5 Yr 10 Yr Since<br />
Inception<br />
Maximum<br />
Front Load<br />
Maximum<br />
Defer Load<br />
Net Exp<br />
Ratio %<br />
Gross Exp<br />
Ratio %<br />
Return after Taxes (%) on Distribution on Distribution and Sales of Shares<br />
1 Yr 5 Yr 10 Yr Since<br />
Inception<br />
Inception<br />
Date<br />
1 Yr 5 Yr 10 Yr Since<br />
Inception<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Benchmark Disclosure<br />
Page 133 of 21 11<br />
Barclays Govt/Credit 1-5 Yr TR USD :<br />
Represents a combination of the Government and Corporate Bond indices for bonds<br />
with maturities between one and five years. The returns we publish for the index are<br />
total returns, which include reinvestment of dividends.<br />
Barclays US Agg Bond TR USD :<br />
Govt/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed<br />
Securities Index.<br />
Barclays US Credit TR USD :<br />
Tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated,<br />
SEC-registered, investment-grade corporate debt.<br />
Barclays US Govt/Credit 1-3 Yr TR USD :<br />
MSCI EAFE NR USD :<br />
This Europe, Australasia, and Far East index is a market-capitalization-weighted index<br />
of 21 non-U.S., industrialized country indexes.<br />
MSCI World Ex US NR USD :<br />
This index measures the performance of the stock market in 21 non-U.S. industrialized<br />
countries.<br />
Morningstar Mid Growth TR USD :<br />
Measures the performance of the mid capitalization stocks that are growing at a faster<br />
pace than the rest of the market.<br />
Morningstar Small Cap TR USD :<br />
Tracks the performance of small cap stocks--stocks that represent the next 7 percent<br />
capitalization following the top 90 percent capitalization in the investable universe.<br />
Morningstar US Market TR USD :<br />
A rule-based, float-weighted index that tracks the performance of US stock market.<br />
The Index targets 97% capitalization of the investable universe.<br />
Morningstar US Value TR USD :<br />
Tracks the performance of stocks considered undervalued across all capitalizations.<br />
Russell 2000 Growth TR USD :<br />
Tracks the companies within the Russell 2000 Index that have higher price-to-book<br />
ratios and higher forecasted growth values.<br />
Russell 3000 Value TR USD :<br />
Measures the performance of those Russell 3000 Index companies with lower<br />
price-to-book ratios and lower forecasted growth values. The stocks in this index are<br />
also members of either the Russell 1000 Value or the Russell 2000 Value indexes.<br />
Russell Mid Cap Growth TR USD :<br />
Tracks the companies within the Russell Midcap Index with higher price-to-book ratios<br />
and higher forecasted growth values.<br />
S&P 500 TR USD :<br />
A market capitalization-weighted index of 500 widely held stocks often used as a<br />
proxy for the stock market.<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Benchmark Disclosure(continued)<br />
Page 144 of 21 11<br />
USTREAS T-Bill Auction Ave 3 Mon :<br />
As tracked by the Wall Street Journal, this benchmark measure the yields of<br />
bank-sponsored certificates of deposit.<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
<strong>Portfolio</strong> <strong>Snapshot</strong> Report<br />
Disclosure Statement<br />
General<br />
Investment portfolios illustrated in this report can be scheduled or <br />
unscheduled. With an "unscheduled" portfolio, the user inputs only the <br />
portfolio holdings and their current allocations. Morningstar calculates <br />
returns using the given allocations assuming monthly rebalancing. Taxes, <br />
loads, and sales charges are not taken into account.<br />
With "scheduled" portfolios, users input the date and amount for all <br />
investments into and withdrawals from each holding, as well as tax rates, <br />
loads, and other factors that would have affected portfolio performance. <br />
A hypothetical illustration is one type of scheduled portfolio.<br />
Both scheduled and unscheduled portfolios are theoretical, for illustrative <br />
purposes only, and are not reflective of an investor's actual experience. <br />
For both scheduled and unscheduled portfolios, the performance data given<br />
represents past performance and should not be considered indicative of future<br />
results. Principal value and investment return of stocks, mutual funds, and<br />
variable annuity/life products will fluctuate, and an investor's shares/units<br />
when redeemed will be worth more or less than the original investment.<br />
Stocks, mutual funds, and variable annuity/life products are not FDIC-insured,<br />
may lose value, and are not guaranteed by a bank or other financial institution.<br />
<strong>Portfolio</strong> statistics change over time.<br />
Used as supplemental sales literature, the <strong>Portfolio</strong> <strong>Snapshot</strong> report must be <br />
preceded or accompanied by the fund/policy's current prospectus or equivalent. <br />
In all cases, this disclosure statement should accompany the <strong>Portfolio</strong> <strong>Snapshot</strong> <br />
report. Morningstar is not itself an FINRA-member firm.<br />
The underlying holdings of the portfolio are not federally or FDIC-insured and <br />
are not deposits or obligations of, or guaranteed by, any financial institution. <br />
Investment in securities involve investment risks including possible loss of <br />
principal and fluctuation in value.<br />
The information contained in this report is from the most recent information <br />
available to Morningstar as of the release date, and may or may not be an <br />
accurate reflection of the current composition of the securities included in <br />
the portfolio. There is no assurance that the weightings, composition and <br />
ratios will remain the same.<br />
Items to Note Regarding Certain Underlying Securities<br />
A closed-end fund is an investment company, which typically makes one public <br />
offering of a fixed number of shares. Thereafter, shares are traded on a <br />
secondary market such as the New York Stock Exchange. As a result, the <br />
secondary market price may be higher or lower than the closed-end fund's net <br />
asset value (NAV). If these shares trade at a price above their NAV, they are <br />
said to be trading at a premium. Conversely, if they are trading at a price <br />
below their NAV, they are said to be trading at a discount.<br />
Page 155 of 21 11<br />
above their NAV, they are said to be trading at a premium. Conversely, if they <br />
are trading at a price below their NAV, they are said to be trading at a discount.<br />
A money market fund is an investment company that invests in commercial paper, <br />
banker's acceptances, repurchase agreements, government securities, certificates <br />
of deposit and other highly liquid securities, and pays money market rates of <br />
interest. Money markets are not FDIC-insured, may lose money, and are not <br />
guaranteed by a bank or other financial institution. Although the money market <br />
seeks to preserve a stable per share value (i.e. $1.00 per share), it is possible <br />
to lose money by investment in the fund.<br />
Unit investment trust (UIT) is an investment company organized under a trust <br />
agreement between a sponsor and trustee. UITs typically purchase a fixed portfolio <br />
of securities and then sell units in the trust to investors. The major difference <br />
between a UIT and a mutual fund is that a mutual fund is actively managed, while <br />
a UIT is not. On a periodic basis, UITs usually distribute to the unit holder their <br />
pro rata share of the trust's net investment income and net realized capital gains, <br />
if any. If the trust is one that invests only in tax-free securities, then the <br />
income from the trust is also tax-free. UITs generally make one public offering <br />
of a fixed number of units. However, in some cases, the sponsor will maintain a <br />
secondary market that allows existing unit holders to sell their units and for new <br />
investors to buy units.<br />
Variable annuities are tax-deferred investments structured to convert a sum of <br />
money into a series of payments over time. Variable annuity policies have <br />
limitations and are not viewed as short-term liquid investments. An insurance <br />
company's fulfillment of a commitment to pay a minimum death benefit, a schedule <br />
of payments, a fixed investment account guaranteed by the insurance company, or <br />
another form of guarantee depends on the claims-paying ability of the issuing <br />
insurance company. Any such guarantee does not affect or apply to the investment <br />
return or principal value of the separate account and its subaccount. The financial <br />
ratings quoted for an insurance company do not apply to the separate account and <br />
its subaccount. If the variable annuity subaccount is invested in a money-market <br />
fund, although it seeks to preserve a stable per share value (i.e. $1.00 per share), <br />
it is possible to lose money by investment in the fund.<br />
Variable life insurance is a cash-value life insurance that has a variable cash<br />
value and/or death benefit depending on the investment performance of the<br />
subaccount into which premium payments are invested. Unlike traditional life<br />
insurance, variable life insurance has inherent risks associated with it, including <br />
market volatility, and is not viewed as a short-term liquid investment. For more <br />
information on a variable life product, including each subaccount, please read the <br />
current prospectus. Please note, the financial ratings noted on the report are <br />
quoted for an insurance company and do not apply to the separate account and <br />
its subaccount. If the variable life subaccount is invested in a money-market fund, <br />
although it seeks to preserve a stable per share value (i.e. $1.00 per share), <br />
it is possible to lose money by investment in the fund.<br />
Pre-inception Returns<br />
The analysis in this report may be based, in part, on adjusted historical returns for <br />
periods prior to the fund's actual inception. These calculated returns reflect the <br />
historical performance of the oldest share class of the fund, adjusted to reflect the <br />
fees and expenses of this share class. These fees and expenses are referenced in <br />
the report's list of holdings and again on the standardized returns page. When <br />
pre-inception data are presented in the report, the header at the top of the report <br />
will indicate this and the affected data elements will be displayed in italics.<br />
An exchange-traded fund (ETF) is an investment company that typically has an <br />
While the inclusion of pre-inception data provides valuable insight into the <br />
investment objective of striving to achieve a similar return as a particular <br />
probable long-term behavior of newer share classes of a fund, investors should be <br />
market index. The ETF will invest in either all or a representative sample of <br />
aware that an adjusted historical return can only provide an approximation of that <br />
the securities included in the index it is seeking to imitate. Like closed-end <br />
behavior. For example, the fee structures between a retail share class will vary <br />
funds, ETFs can be traded on a secondary market and thus have a market price that <br />
from that of an institutional share class, as retail shares tend to have higher <br />
may be higher or lower than its net asset value. If these shares trade at a price<br />
operating expenses and sales charges. These adjusted historical returns are not <br />
actual returns. Calculation methodologies utilized by Morningstar may differ from <br />
those applied by other entities, including the fund itself.<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
<strong>Portfolio</strong> <strong>Snapshot</strong> Report<br />
Disclosure Statement (continued)<br />
Scheduled <strong>Portfolio</strong> Trailing Returns<br />
Scheduled <strong>Portfolio</strong>s are customized by the user to account for loads, taxes,<br />
cash flows, and specific investment dates. Scheduled portfolios use the <br />
portfolio's investment history to calculate final market values and returns. <br />
For scheduled portfolios,both individual holding and portfolio returns are <br />
internal-rate-of-return calculations that reflect the timing and dollar size of<br />
all purchases and sales. For stocks and mutual funds, sales charges and tax <br />
rates are taken into account as specified by the user (except in the pre-tax <br />
returns, which reflect the impact of sales charges but not taxes). Note that in<br />
some scheduled portfolio illustrations, dividends and capital gains distributions, <br />
if applicable, are reinvested at the end of the month in which they are made<br />
at the month-end closing price. This can cause discrepancies between <br />
calculated returns and actual investor experience.<br />
Scheduled <strong>Portfolio</strong> Returns-Based Performance Data<br />
For scheduled portfolios, the monthly returns used to calculate alphas, betas, <br />
R-squareds, standard deviations, Sharpe ratios, and best/worst time-period <br />
data are internal rates of return.<br />
Important VA Disclosure for Scheduled <strong>Portfolio</strong>s<br />
For variable annuity products, policy level charges (other than front-end loads,<br />
if input by the advisor) are not factored into returns. When withdrawals and<br />
liquidations are made, increases in value over the purchase price are taxed <br />
at the capital gains rate that currently is in effect. This is not reflective of <br />
the actual tax treatment for these products, which requires the entire with-<br />
drawal to be taxed at the income tax rate. If adjusted for sales charges and <br />
the effects of taxation, the subaccount returns would be reduced.<br />
Scheduled <strong>Portfolio</strong> Investment Activity Graph<br />
The historic portfolio values that are graphed are those used to track the<br />
portfolio when calculating returns.<br />
Unscheduled <strong>Portfolio</strong> Returns<br />
Monthly total returns for unscheduled portfolios are calculated by applying the<br />
ending period holding weightings supplied by the user to an individual holding's<br />
monthly returns. When monthly returns are unavailable for a holding (ie. Due to<br />
it not being in existence during the historical period being reported), the <br />
remaining portfolio holdings are re-weighted to maintain consistent proportions. <br />
Inception dates are listed in the Disclosure for Standardized and Tax Adjusted <br />
Returns. Trailing returns are calculated by geometrically linking these<br />
weighted-average monthly returns. Unscheduled portfolio returns thus assume<br />
monthly rebalancing. Returns for individual holdings are simple time-weighted<br />
trailing returns. Neither portfolio returns nor holding returns are adjusted<br />
for loads or taxes, and if adjusted for, would reduce the returns stated. The<br />
returns stated assume the reinvestment of dividends and capital gains. Mutual<br />
fund returns include all ongoing fund expenses. VA/VL returns reflect subaccount<br />
level fund expenses, including M&E expenses, administration fees, and actual<br />
ongoing fund level expenses.<br />
Unscheduled <strong>Portfolio</strong> Investment Activity Graph<br />
The historic performance data graphed is extrapolated from the ending port-<br />
folio value based on the monthly returns.<br />
Benchmark Returns<br />
Benchmark returns may or may not be adjusted to reflect ongoing expenses<br />
such as sales charges. An investment's portfolio may differ significantly<br />
from the securities in the benchmark.<br />
Page 166 of 21 11<br />
Returns for custom benchmarks are calculated by applying user-supplied<br />
weightings to each benchmark's returns every month. Trailing returns are<br />
calculated by geometrically linking these weighted-average monthly returns.<br />
Custom benchmark returns thus assume monthly rebalancing.<br />
Standardized Returns<br />
For mutual funds, standardized return is total return adjusted for sales charges, <br />
and reflects all ongoing fund expenses. Following this disclosure statement,<br />
standardized returns for each portfolio holding are shown.<br />
For money market mutual funds, standardized return is total return adjusted for <br />
sales charges and reflects all ongoing fund expenses. Current 7-day yield more <br />
closely reflects the current earnings of the money market fund than the total <br />
return quotation.<br />
For VA subaccounts, standardized return is total return based on its inception<br />
date within the separate account and is adjusted to reflect recurring and <br />
non-recurring charges such as surrender fees, contract charges, maximum front-<br />
end load, maximum deferred load, maximum M&E risk charge, administration <br />
fees, and actual ongoing fund-level expenses.<br />
For ETFs, the standardized returns reflect performance, both at market price<br />
and NAV price, without adjusting for the effects of taxation or brokers <br />
commissions. These returns are adjusted to reflect all ongoing ETF expenses <br />
and assume reinvestment of dividends and capital gains. If adjusted, the effects <br />
of taxation would reduce the performance quoted.<br />
The charges and expenses used in the standardized returns are obtained from <br />
the most recent prospectus and/or shareholder report available to Morningstar. <br />
For mutual funds and VAs, all dividends and capital gains are assumed to be <br />
reinvested. For stocks, stock acquired via divestitures is assumed to be <br />
liquidated and reinvested in the original holding.<br />
Non-Standardized Returns<br />
For mutual funds, total return is not adjusted for sales charges and reflects <br />
all ongoing fund expenses for various time periods. These returns assume <br />
reinvestment of dividends and capital gains. If adjusted for sales charges and <br />
the effects of taxation, the mutual fund returns would be reduced. Please note<br />
these returns can include pre-inception data and if included, this data will be<br />
represented in italics.<br />
For money market funds, total return is not adjusted for sales charges <br />
and reflects all ongoing fund expenses for various time periods. These returns <br />
assume reinvestment of dividends and capital gains. If adjusted for <br />
sales charges and the effects of taxation, the money market returns would <br />
be reduced.<br />
For VA and VL subaccounts, non-standardized returns illustrate performance <br />
that is adjusted to reflect recurring and non-recurring charges such as <br />
surrender fees, contract charges, maximum front-end load, maximum deferred <br />
load, maximum M&E risk charge, administrative fees and underlying fund-level <br />
expenses for various time periods. Non-Standardized performance returns <br />
assume reinvestment of dividends and capital gains. If adjusted for the <br />
effects of taxation, the subaccount returns would be significantly reduced. <br />
Please note that these returns can include pre-incpetion data and if included, <br />
this data will be represented in italics.<br />
Investment Advisory Fees<br />
The investment(s) returns do not necessarily reflect the deduction of all<br />
investment advisory fees. Client investment returns will be reduced if addi-<br />
tional advisory fees are incurred such as deferred loads, redemption fees,<br />
wrap fees, or other account charges.<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
<strong>Portfolio</strong> <strong>Snapshot</strong> Report<br />
Disclosure Statement (continued)<br />
Investment Style<br />
The Morningstar Style Box combines the various funds investment strategies. <br />
For the equity style box, the vertical axis shows the market capitalization of <br />
the stocks owned and the horizontal axis shows investment style (value, blend, <br />
or growth). For the fixed-income style box, the vertical axis shows the average <br />
credit quality of the bonds owned and the horizontal axis shows interest rate <br />
sensitivity as measured by a bond's duration (short, intermediate, or long).<br />
Risk and Return<br />
Standard deviation is a statistical measure of the volatility of a portfolio's<br />
returns around its mean.<br />
Sharpe ratio uses a portfolio's standard deviation and total return to determine<br />
reward per unit of risk.<br />
Alpha measures the difference between a portfolio's actual returns and its<br />
expected performance, given its beta and the actual returns of the benchmark<br />
index. Alpha is often seen as a measurement of the value added or subtracted<br />
by a portfolio's manager.<br />
Beta is a measure of the degree of change in value one can expect in a portfolio<br />
given a change in value in a benchmark index. A portfolio with a beta greater<br />
than one is generally more volatile than its benchmark index, and a portfolio<br />
with a beta of less than one is generally less volatile than its benchmark index.<br />
Page 177 of 21 11<br />
The return on assets (ROA) is the percentage a company earns on its assets in <br />
a given year. The calculation is net income divided by end-of-year total <br />
assets, multiplied by 100.<br />
The Return on Equity (ROE) is the percentage a company earns on its <br />
shareholders' equity in a given year. The calculation is net income divided <br />
by end-of-year net worth, multiplied by 100.<br />
Market Maturity shows the percentage of a holding's common stocks that are <br />
domiciled in developed and emerging markets.<br />
The below referenced data elements listed below are a weighted average of <br />
the fixed income holdings in the portfolio.<br />
The average credit quality is derived by taking the weighted average of the <br />
credit rating for each bond in the portfolio.<br />
Average maturity is used for holdings in the taxable fixed-income category,<br />
this is a weighted average of all the maturities of the bonds in a portfolio, <br />
computed by weighting each maturity date by the market value of the security.<br />
Credit quality breakdowns are shown for corporate-bond holdings and depicts<br />
the quality of bonds in the underlying portfolio. The analysis reveals the percentage<br />
of fixed-income securities that fall within each credit-quality rating as<br />
assigned by Standard & Poor's or Moody's.<br />
debt). This figure is not provided for financial companies.<br />
Debt as a percentage of capital is calculated by dividing long-term debt by total <br />
capitalization (the sum of common equity plus preferred equity plus long-term <br />
debt). This figure is not provided for financial companies.<br />
R-squared reflects the percentage of a portfolio's movements that are explained <br />
by movements in its benchmark index, showing the degree of correlation between <br />
the portfolio and a benchmark. This figure is also helpful in assessing how <br />
likely it is that alpha and beta are statistically significant.<br />
Fundamental Analysis<br />
The below referenced data elements are a weighted average of the equity <br />
holdings in the portfolio.<br />
The median market capitalization of a subaccount's equity portfolio gives you a <br />
measure of the size of the companies in which the subaccount invests.<br />
The Price/Cash Flow ratio is a weighted average of the price/cash-flow ratios of <br />
the stocks in a subaccount's portfolio. Price/cash-flow shows the ability of a<br />
business to generate cash and acts as a gauge of liquidity and solvency.<br />
The Price/Book ratio is a weighted average of the price/book ratios of all the <br />
stocks in the underlying fund's portfolio. The P/B ratio of a company is calculated <br />
by dividing the market price of its stock by the company's per-share book value. <br />
Stocks with negative book values are excluded from this calculation.<br />
Duration is a time measure of a bond's interest-rate sensitivity.<br />
Net Margin is a measure of profitability. It is equal to annual net income <br />
divided by revenues from the same period for the past five fiscal years, <br />
multiplied by 100.<br />
Type Weightings divide the stocks in a given holding's portfolio into eight <br />
type designations each of which defines a broad category of investment <br />
characteristics. Not all stocks in a given holding's portfolio are assigned <br />
a type. These stocks are grouped under NA.<br />
The below referenced data elements listed below are a weighted average of the <br />
total holdings in the portfolio.<br />
The average expense ratio is the percentage of assets deducted each year for <br />
operating expenses, management fees, and all other asset-based costs incurred <br />
by the fund, excluding brokerage fees. Please note for mutual funds, variable<br />
annuities/life, ETF and closed-end funds we use the gross prospectus ratio as<br />
provided in the prospectus. For separate accounts and stocks we pull the <br />
audited expense ratio from the annual report.<br />
The Price/Earnings ratio is a weighted average of the price/earnings ratios of the <br />
stocks in the underlying fund's portfolio. The P/E ratio of a stock is calculated <br />
by dividing the current price of the stock by its trailing 12 months' earnings per <br />
share. In computing the average, Morningstar weights each portfolio holding by <br />
the percentage of equity assets it represents.<br />
The Price/Sales ratio is a weighted average of the price/sales ratios of the <br />
stocks in the underlying fund's portfolio. The P/S ratio of a stock is calculated <br />
by dividing the current price of the stock by its trailing 12 months' revenues per <br />
share. In computing the average, Morningstar weights each portfolio holding by <br />
the percentage of equity assets it represents.<br />
Potential capital gains exposure is the percentage of a holding's total assets <br />
that represent capital appreciation.<br />
Investment Risk<br />
Market Price Risk: The market price of ETF's traded on the secondary market is<br />
subject to the forces of supply and demand and thus independent of the ETF's<br />
NAV. This can result in the market price trading at a premium or discount to<br />
the NAV which will affect an investors value.<br />
Market Risk: The market prices of ETF's can fluctuate as to the result of <br />
several factors such as security-specific factors or general investor <br />
sentiment. Therefore, investors should be aware of the prospect of market <br />
fluctuations and the impact it may have on the ETF market price.<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Page 188 of 21 11<br />
<strong>Portfolio</strong> <strong>Snapshot</strong> Report<br />
Disclosure Statement (continued)<br />
International Emerging Market Funds/Subaccounts: The investor should note<br />
that funds and subaccounts that invest in international securities take on <br />
special additional risks. These risks include, but are not limited to, <br />
currency risk, political risk, and risk associated with varying accounting <br />
standards. Investing in emerging markets normally accentuates these risks.<br />
Sector Funds/Subaccounts: The investor should note that funds and subacc-<br />
ounts that invest exclusively in one sector or industry involve additional<br />
risks. The lack of industry diversification subjects the investor to increased<br />
industry-specific risks.<br />
Non-Diversified Funds/Subaccounts: The investor should note that funds or<br />
subaccounts that invest more of their assets in a single issuer involve<br />
additional risks, including share price fluctuations, because of the increased<br />
concentration of investments.<br />
Small Cap Funds/Subaccounts: The investor should note that funds and<br />
subaccounts that invest in stocks of small companies involve additional risks.<br />
Smaller companies typically have a higher risk of failure, and are not as well<br />
established as larger blue-chip companies. Historically, smaller-company<br />
stocks have experienced a greater degree of price volatility than the overall<br />
market average.<br />
Mid Cap Funds/Subaccounts: The investor should note that funds and<br />
subaccounts that invest in companies with market capitalizations below $10<br />
billion involve additional risks. The securities of these companies may be more <br />
volatile and less liquid than the securities of larger companies.<br />
High-Yield Bond Funds/Subaccounts: The investor should note that funds and <br />
subaccounts that invest in lower-rated debt securities (commonly referred to<br />
as junk bonds) involve additional risks because of the lower credit quality of<br />
the securities in the portfolio. The investor should be aware of the possible <br />
higher level of volatility and increased risk of default.<br />
Tax-Free Municipal Bond Funds: The investor should note that the income<br />
from tax-free municipal bond funds may be subject to state and local taxation <br />
and the Alternative Minimum Tax.<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Mutual Fund Detail Report<br />
Disclosure Statement<br />
The Mutual Fund Detail Report is to be used as supplemental sales literature,<br />
and therefore must be preceded or accompanied by the fund's current prospectus<br />
and a disclosure statement. Please read the prospectus carefully. In all<br />
cases, this disclosure statement should accompany the Mutual Fund Detail<br />
Report. Morningstar is not itself a FINRA-member firm. <strong>Portfolio</strong> information<br />
is based on the most recent information available to Morningstar<br />
Pre-inception Returns<br />
The analysis in this report may be based, in part, on adjusted historical<br />
returns for periods prior to the fund's actual inception. These calculated<br />
returns reflect the historical performance of the oldest share class of the<br />
fund, adjusted to reflect the fees and expenses of this share class. These<br />
fees and expenses are referenced in the report's Performance section<br />
When pre-inception data are presented in the report, the header at the<br />
top of the report will indicate this. In addition, the pre-inception<br />
data included in the report will appear in italics<br />
While the inclusion of pre-inception data provides valuable insight into<br />
the probable long-term behavior of newer share classes of a fund, investors<br />
should be aware that an adjusted historical return can only provide an<br />
approximation of that behavior. For example, the fee structures between a<br />
retail share class will vary from that of an institutional share class, as<br />
retail shares tend to have higher operating expenses and sales charges.<br />
These adjusted historical returns are not actual returns. Calculation<br />
methodologies utilized by Morningstar may differ from those applied by other<br />
entities, including the fund itself<br />
Performance<br />
The performance data given represents past performance and should not be<br />
considered indicative of future results. Principal value and investment return<br />
will fluctuate, so that an investor's shares when redeemed may be worth more or<br />
less than the original investment. Fund portfolio statistics change over time.<br />
The fund is not FDIC-insured, may lose value and is not guaranteed by a bank or<br />
other financial institution<br />
Total return reflects performance without adjusting for sales charges or<br />
the effects of taxation, but is adjusted to reflect all actual ongoing fund<br />
expenses and assumes reinvestment of dividends and capital gains. If adjusted<br />
for sales charges and the effects of taxation, the performance quoted would<br />
be reduced<br />
Standardized Total Return is reflected as of month- and quarter-end time<br />
periods. It depicts performance without adjusting for the effects of taxation,<br />
but is adjusted for sales charges, all ongoing fund expenses, and assumes<br />
reinvestment of dividends and capital gains. If adjusted for the effects of<br />
taxation, the performance quoted would be reduced. The sales charge used in<br />
the calculation was obtained from the fund's most recent prospectus and/or<br />
shareholder report available to Morningstar. Standardized returns never<br />
include pre-inception history<br />
Morningstar % Rank within Morningstar Category does not account for a fund's<br />
sales charge (if applicable). Rankings will not be provided for periods less<br />
than one year<br />
Growth of $10,000<br />
The graph compares the growth of $10,000 in a fund with that of an index and<br />
with that of the average for all funds in its Morningstar category. The total<br />
returns are not adjusted to reflect sales charges or the effects of taxation,<br />
but are adjusted to reflect actual ongoing fund expenses, and assume<br />
reinvestment of dividends and capital gains. If adjusted, sales charges would<br />
reduce the performance quoted. The index is an unmanaged portfolio of specified<br />
securities and cannot be invested in directly. The index and the category<br />
average do not reflect any initial or ongoing expenses. A fund's portfolio may<br />
differ significantly from the securities in the index. The index is chosen by<br />
Morningstar<br />
If pre-inception data is included in the analysis, it will be graphed.<br />
Page 199 of 21 11<br />
Risk and Return<br />
The Morningstar Rating is calculated for funds with at least a three-year<br />
history. It is calculated based on a Morningstar Risk-Adjusted Return<br />
measure that accounts for variation in a fund's monthly performance,<br />
placing more emphasis on downward variations and rewarding consistent<br />
performance. The top 10% of funds in each category receive 5 stars, the<br />
next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5%<br />
receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar<br />
Rating for a mutual fund is derived from a weighted average of the<br />
performance figures associated with its three-, five- and 10-year (if<br />
applicable) Morningstar Rating metrics<br />
Please note that some Morningstar proprietary calculations, including the<br />
Morningstar Rating, may be calculated based on adjusted historical returns<br />
(pre-inception returns). If the extended performance rating is in effect,<br />
the "stars" are represented as unshaded stars. For each mutual fund with<br />
at least a three-year history, Morningstar calculates a Morningstar Rating<br />
based on a Morningstar Risk-Adjusted Return measure that accounts for<br />
variation in a fund's adjusted monthly performance, placing more emphasis<br />
on downward variations and rewarding consistent performance. The top 10%<br />
of funds in each category receive 5 stars, the next 22.5% receive 4 stars,<br />
the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom<br />
10% receive 1 star. This investment's independent Morningstar Rating metric<br />
is then compared against the open-end mutual fund universe's actual<br />
performance breakpoints to determine its extended performance rating. The<br />
Overall Morningstar Rating for a mutual fund is derived from a weighted<br />
average of the actual performance figures associated with its three-, fiveand<br />
10-year (if applicable) Morningstar Rating metrics<br />
Morningstar Return rates a mutual fund's performance relative to other funds<br />
in its Morningstar Category. It is an assessment of a fund's excess return<br />
over a risk-free rate (the return of the 90-day Treasury Bill), after<br />
adjusting for all applicable loads and sales charges, in comparison with the<br />
mutual funds in its Morningstar Category. In each Morningstar Category, the<br />
top 10% of funds earn a High Morningstar Return (HIGH), the next 22.5% Above<br />
Average (+AVG), the middle 35% Average (AVG), the next 22.5% Below Average<br />
(-AVG), and the bottom 10% Low (LOW). Morningstar Return is measured for up<br />
to three time periods (three-, five-, and 10 years). These separate measures<br />
are then weighted and averaged to produce an overall measure for the mutual<br />
fund. Funds with less than three years of performance history are not rated<br />
Morningstar Risk evaluates a mutual fund's downside volatility relative to<br />
that of other funds in its Morningstar Category. It is an assessment of the<br />
variations in a fund's monthly returns, with an emphasis on downside<br />
variations, in comparison with the mutual funds in its Morningstar Category.<br />
In each Morningstar Category, the 10% of funds with the lowest measured risk<br />
are described as Low Risk (LOW), the next 22.5% Below Average (-AVG), the<br />
middle 35% Average (AVG), the next 22.5% Above Average (+AVG), and the top<br />
10% High (HIGH). Morningstar Risk is measured for up to three time period<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Page 10 20 of 21 11<br />
(three-, five-, and 10 years). These separate measures are then weighted and<br />
averaged to produce an overall measure for the mutual fund. Funds with less<br />
than three years of performance history are not rated<br />
If pre-inception returns are included in this analysis, the risk and return<br />
profile data calculated on the basis of these returns will appear in italics<br />
Risk Measures<br />
The risk measures below are calculated for funds with at least a threeyear<br />
history<br />
Standard deviation is a statistical measure of the volatility of the fund's<br />
returns<br />
Mean represents the annualized geometric return for the period shown.<br />
The Sharpe ratio uses standard deviation and excess return to determine<br />
reward per unit of risk<br />
Alpha measures the difference between a fund's actual returns and its<br />
expected performance, given its level of risk (as measured by beta).<br />
Alpha is often seen as a measure of the value added or subtracted by<br />
a portfolio manager<br />
Beta is a measure of a fund's sensitivity to market movements. A portfolio with<br />
a beta greater than 1 is more volatile than the market, and a portfolio with a<br />
beta less than 1 is less volatile than the marke<br />
R-squared reflects the percentage of a fund's movements that are explained<br />
by movements in its benchmark index, showing the degree of correlation<br />
between the fund and the benchmark. This figure is also helpful in assessing<br />
how likely it is that alpha and beta are statistically significant<br />
Risk measures calculated using pre-inception data, if included in the<br />
analysis, will be presented in italics<br />
<strong>Portfolio</strong> Analysis<br />
The Morningstar Style Box reveals a fund's investment strategy. For equity<br />
funds the vertical axis shows the market capitalization of the stocks owned<br />
and the horizontal axis shows investment style (value, blend or growth). For<br />
fixed-income funds the vertical axis shows the average credit quality of the<br />
bonds owned, and the horizontal axis shows interest rate sensitivity as<br />
measured by a bond's duration (short, intermediate or long)<br />
Equity <strong>Portfolio</strong> Statistics<br />
The referenced data elements below are a weighted average of the equity<br />
holdings in the portfolio<br />
The Price/Earnings ratio is a weighted average of the price/earnings<br />
ratios of the stocks in the underlying fund's portfolio. The P/E ratio<br />
of a stock is calculated by dividing the current price of the stock by<br />
its trailing 12-months' earnings per share. In computing the average,<br />
Morningstar weights each portfolio holding by the percentage of equity<br />
assets it represents<br />
The Price/Cash Flow ratio is a weighted average of the price/cash-flow<br />
ratios of the stocks in a fund's portfolio. Price/cash-flow shows the<br />
ability of a business to generate cash and acts as a gauge of liquidity<br />
and solvency<br />
The Price/Book ratio is a weighted average of the price/book ratios of<br />
all the stocks in the underlying fund's portfolio. The P/B ratio of a<br />
company is calculated by dividing the market price of its stock by the<br />
company's per-share book value. Stocks with negative book values are<br />
excluded from this calculation<br />
The geometric average market capitalization of a fund's equity portfolio<br />
offers a measure of the size of the companies in which the mutual fund<br />
invests<br />
Fixed-Income <strong>Portfolio</strong> Statistics<br />
The referenced data elements below are a weighted average of the fixed<br />
income holdings in the portfolio<br />
Duration is a time measure of a bond's interest rate sensitivity.<br />
Average effective duration is a weighted average of the duration of the<br />
underlying fixed income securities within the portfolio<br />
Average effective maturity is a weighted average of all the maturities<br />
of the bonds in a portfolio, computed by weighting each maturity date by<br />
the market value of the security<br />
Average credit quality is calculated by taking the weighted average of<br />
the credit rating for each bond in the portfolio<br />
Average weighted coupon is generated from the fund's portfolio by<br />
weighting the coupon of each bond by its relative size in the portfolio.<br />
Coupons are fixed percentages paid out on a fixed-income security on an<br />
annual basis<br />
Average weighted price is generated from the fund's portfolio by weighting<br />
the price of each bond by its relative size in the portfolio. This number<br />
reveals if the fund favors bonds selling at prices above or below face value<br />
(premium or discount securities, respectively). A higher number indicates a<br />
bias toward premiums. This statistic is expressed as a percentage of par<br />
(face) value<br />
Turnover Ratio is a decent proxy for how frequently a manager trades his or<br />
her portfolio. The inverse of a fund's turnover ratio is the average holding<br />
period for a security in the fund. As turnover increases, a fund's brokerage<br />
costs typically rise as well<br />
Operations<br />
Purchase constraints denote if a mutual fund has any of the following<br />
qualities: Qualified Access (A), Institutional (T), Closed to New<br />
Investments, (C) or Closed to All Investments (L). Because these<br />
qualities can all act as restrictions and/or requirements for investment,<br />
they are grouped together<br />
Potential capital gains exposure is the percentage of a mutual fund's<br />
total assets that represent capital appreciation<br />
Investment Risk<br />
International Funds/Emerging Market Funds: The investor should note that<br />
funds that invest in international securities involve special additional risks.<br />
These risks include, but are not limited to, currency risk, political risk, and<br />
risk associated with varying accounting standards. Investing in emerging<br />
markets may accentuate these risks<br />
Sector Funds: The investor should note that funds that invest exclusively in<br />
one sector or industry involve additional risks. The lack of industry diversification<br />
subjects the investor to increased industry-specific risks<br />
Non-Diversified Funds: The investor should note that funds that reinvest more<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
Page 11 21 of 21 11<br />
of their assets in a single issuer involve additional risks, including share<br />
price fluctuations, because of the increased concentration of investments<br />
Small-Cap Funds: The investor should note that funds that invest in stocks of<br />
small companies involve additional risks. Smaller companies typically have a<br />
higher risk of failure, and are not as well established as larger blue-chip<br />
companies. Historically, smaller-company stocks have experienced a greater<br />
degree of market volatility that the overall market average<br />
Mid Cap Funds: The investor should note that funds that invest in companies<br />
with market capitalization below $10 billion involve additional risks. The<br />
securities of these companies may be more volatile and less liquid than the<br />
securities of larger companies<br />
High-Yield Bond Funds: The investor should note that funds that invest in<br />
lower-rated debt securities (commonly referred as junk bonds) involve<br />
additional risks because of the lower credit quality of the securities in the<br />
portfolio. The investor should be aware of the possible higher level of<br />
volatility, and increased risk of default<br />
Tax-Free Municipal Bond Funds: The investor should note that the income<br />
from tax-free municipal bond funds may be subject to state and local<br />
taxation and the Alternative Minimum Tax<br />
© 2013 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided<br />
by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not<br />
an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or<br />
related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.