Investment Manager Due Diligence

Return to List 12/29/05 Fourth Quarter 2005* American Funds Investment Company of America For the period ended September 2005, performance gross of fees has been below the median of the Fund.s Large Cap Value peer group over the 1-year, 3-year and 5-year periods. Performance net of fees for these same time periods is below the Fund.s manager monitoring benchmark. The Fund.s benchmark for manager monitoring purposes has been revised from the S&P 500 Index to the Russell 1000 Value Index. While the Fund.s style is more value-oriented relative to the S&P 500, it has larger growth and size factors than the Russell 1000 Value Index. Some of the Fund.s risk-adjusted returns and risk measures (e.g., Excess Return Ratio, Sharpe Ratio, et. al.) compare unfavorably to the peer median over both the 3-and 5-year periods. FRS Select Aggressive Balanced Fund The Fund is comprised of underlying FRS Investment Plan funds which are allocated by Financial Engines to achieve a target risk profile. The manager monitoring benchmarks for two of the underlying funds.Investment Company of America and Fidelity Low Priced Stock.were revised. As a result, the historical benchmark performance for the both funds and the Fund were restated. Underperformance by the Investment Company of America has negatively impacted the Fund. For the period ended September 2005, performance gross of fees has been above the median of its Domestic Balanced Aggressive Style peer group over all time periods. However, performance net of fees for the 1-year and 3-year periods is lower than the Fund.s restated benchmark. The 5-year net of fees performance surpasses the restated benchmark by 64 basis points. Only one of the Fund.s risk-adjusted measures and risk measures (i.e., standard deviation) compares unfavorably to the peer median over both the 3-and 5-year periods. *Please note that in providing this information, the SBA is not in any way intending to influence or inform your investment decisions. Also, this list can change at any time without prior notice from the SBA.