The stock funds’ 12-month returns could fluctuate widely in the months ahead due to the
same effect. While the C and S funds posted modest gains in August 2002 and the I fund
a modest loss, all three funds were down sharply last September, losing 10.87, 6.84 and
10.75 percent, respectively. Knocking those losses out of the 12-month returns will make
the performance of the funds look all that much better—unless, of course, the funds do
worse than they did last year. All three funds posted substantial gains last October and
November and substantial losses last December.
