Core Conservative

Benchmark-focused, investment grade bond strategy that seeks an excess return over the Barclays Capital U.S. Aggregate Bond Index or similar benchmark. Strategy has historically generated virtually all of its excess return from bottom-up subsector and security selection, with top-down decisions such as duration, yield curve, and sector positioning tightly constrained to benchmark weightings at all times.

Core

Actively managed core strategy that seeks an excess return over the Barclays Capital U.S. Aggregate Bond Index or similar benchmark. Strategy is investment grade-focused and has historically generated its excess return from fairly equal increments of both sector allocation and subsector/security allocation. Duration and yield curve positioning have not historically been primary sources of excess return.

Core Plus

Actively managed strategy that seeks an excess return over the Barclays Capital U.S. Aggregate Bond Index or similar benchmark. Strategy has historically generated approximately half of its excess return from top-down sector allocation and one-third of its excess return from bottom-up subsector/security selection. Duration and yield curve, tactically managed, have historically comprised the remaining excess return. Strategy actively allocates to both benchmark and non-benchmark sectors, with heavy emphasis on the credit-oriented sectors.

As of March 31, 2013. There can be no assurance that these objectives will be met. Read benchmark descriptions.