Returns Reflect Investment Approaches

Currently, the income fund is invested 74 percent in the no-risk government securities G fund and 6 percent in the relatively low risk bond F fund, with the other 20 percent spread across the three stock funds. In contrast, the 2020 fund has about 40 percent in the G and F funds and about 60 percent in stocks, and the 2040 fund has about 18 percent in the G and F funds and about 82 percent in stocks. The investment mixes of L funds other than the income fund change quarterly to become slightly more conservative with the passage of time. In 2010, the 2010 fund will have the same profile as the income fund and the two will be merged, and a new 2050 fund will be launched.