Fund Line-Up Changes REVISED
There will be several changes to the investment fund line-up
in addition to those announced in the August Special Edition newsletter:
The MFS New Discovery fund will be closed-out due to short- and long-term
underperformance, as well as changes in portfolio strategy and management.
Effective immediately, no exchanges into this fund or increases to deferral
allocations will be permitted. Participants can move
existing balances and change deferral allocations by December 15, 2006.
Investments remaining in MFS after that date will be automatically moved to the
new Hartford Small Company fund.
The Hartford Small Company fund will be opened on November 1, 2006 as the
Program’s small-cap growth option. This fund invests in equity securities on the
basis of potential for capital appreciation, and uses a multi-manager approach,
where portions of the fund’s assets are
allocated among different money managers who employ distinct investment styles
intended to complement one another. The managers are Wellington Management
Company and Hartford Investment Management Company.
The new international index option added on October 2, 2006 was the Vanguard
Total International Stock Index fund, instead of the Fidelity Spartan
International Index fund previously announced. The Board decided that it was not
in the best interest of participants to offer the Fidelity fund after the
Program was notified that the fund had a very restrictive redemption fee policy.
The Vanguard Total International Stock Index fund has a less restrictive
redemption fee policy, low fees, and a broader investment strategy, that also
invests in companies in emerging markets.
| New and Re-Opened Funds | Available Date |
| Vanguard Total International Stock Index Vanguard Total Bond Market Index Janus Twenty Hartford Small Company |
NEW - 10/2/2006 NEW - 10/2/2006 RE-OPENED - 10/2/2006 NEW - 11/1/2006 |
|
Closed-Out Funds - 12/15/2006 |
Replacement Funds |
| MFS New Discovery | Hartford Small Company |
All of the changes to the investment line-up are based upon the monitoring and expert evaluation of existing options and a national search for new managers. The availability of the new index funds will give you the opportunity to build a diversified low-cost portfolio. The reopening of Janus Twenty provides a concentrated large-cap growth strategy to the line-up, while the close-out of five large-cap funds reduces overlap within that asset category, eliminates underperforming funds, and moves assets into replacement funds with better performing strategies.
|
Closed-Out Funds - 10/25/2006 |
Replacement Funds |
| AIM Constellation American Century Growth American Century Income & Growth Fidelity Equity Income Janus Fund |
Fidelity Growth Company Fidelity Growth Company Dodge & Cox Stock Dodge & Cox Stock Janus Twenty |
If you are deferring into or have a balance in any of the closed-out funds, you
have until the close-out deadlines to select alternative investment options. At
the respective deadline, all remaining investment balances and deferral
allocations will be automatically moved to the replacement funds. You can
request changes to your account on our web site at www.ohio457.org or by
calling our automated telephone system at 1-877-644-6457. You may also contact
an Account Executive to make a change, discuss your investment choices, or
received fund information. Please call 1-877-644-6457 and press option 3 for
personal service.