Profile: FRS Select US Enh Db Index Fund (B15)
Profile Issued 09/10
Asset Class and Fund Objective:
Core broad bond fund
Fund Type:
Institutional fund
Index or Active Strategy:
Enhanced Index fund that attempts to achieve or modestly exceed the total return of the Barclays Capital Aggregate Bond Index
Management Type:
Passively Managed
Fees and Fund Expenses
The fund does not have sales charges on purchases or dividend reinvestments, deferred
sales charges, redemption fees or exchange fees. Excessive trading restrictions may apply
— see Detailed Fund Operations.
Fund Operating Expenses (deducted from your account as a percent of assets)
FRS Select US Enh Bd Index Participant Account
Range of Fees in Bond Funds
Range of Fees for Balanced Funds
Annual Fees in Percent of Assets
0.05%
0.05% - 0.59%
0.04% - 0.06%
For a $10,000 Account You Would Pay
First Year Fee
$5
$5 - $59
$4 - $6
Total Fees over 30 Years in Today's Dollars
$151
$151 - $1943
$135 - $170
Fees represent the most current information available and are subject to change without prior notice. Fees are net of any contractual reimbursements
to you. Fees and expenses are only one of several factors that should be considered when making investment decisions.
Principal Investment Strategies and Risks of Investing in the Fund
The fund seeks favorable long-term returns by keeping costs low and investing across
multiple asset classes to diversify and control risk. The fund invests in other FRS Investment
Plan funds and is designed to have the same risk level as a core bond fund. Because the fund
is designed to keep its overall level of risk relatively steady over time, the proportions and
specific funds included in the balanced fund may change over time. Financial Engines, a federally
registered investment advisor and fiduciary to the FRS, will periodically provide updated
investment fund mixes to the FRS that they believe will provide the best trade-off between
expected risk and return. The fund will be periodically rebalanced.
The fund's total return is expected to fluctuate over a range roughly comparable to a
core bond fund, but it may experience greater volatility due to investments in U.S. and foreign
stocks. Because it invests in other investment funds, the balanced fund will experience many of
the same risks as the funds in which it invests. The fund's strategy for outperforming its
benchmark may cause it to lag the benchmark as the strategy relies on predictions and incurring
trading costs through security turnover. Your investment in the fund is not a bank deposit and
is not insured or guaranteed by the F.D.I.C. or any other government entity. It is possible to
lose money investing in the fund and returns may not keep pace with inflation.
Asset Allocation as of Qtr Ending
6/30/10
Sector Exposure as of
6/30/10
Mortgage Back Securities
32.65%
Rating Exposure as of
6/30/10
Other Portfolio Measures as of
6/30/10
Percent in Top 10 Holdings
11.19%
Number of Fund Holdings
5218
Average Effective Duration
4.13
Data gathered from various third-party sources. Selector allocations are approximate and will vary over time.
Average Annual Returns and Risk for Periods Ending July 31, 2010
One Year
5 Years
10 Years
Investment Fund
9.09%
6.25%
6.67%
Barclays Aggregate Bond Index
8.91%
5.96%
6.48%
Average Annual Risk (Standard Deviation)
Investment Fund
3.03%
3.71%
3.83%
Barclays Aggregate Bond Index *
3.00%
3.66%
3.81%
FRS Select Moderate Balanced Fund
8.53%
11.04%
10.25%
Prior to July 2002, actual historical performance data has been adjusted for
fees and/or designs for multiple manager funds that are specific to the FRS.
Other Historical Risk Measures: 5 Year Period Ending July 31, 2010
FRS Select US Enh Bd Index Participant Account
Range of Measure in Bond Funds
Range of Measure for Balanced Funds
Beta vs. Benchmark *
99.66%
99.66% - 104.62%
97.31% - 99.74%
Tracking Error vs. Benchmark *
0.19%
0.19% - 2.16%
0.46% - 0.91%
Highest Quarterly Return
6.55%
5.14% - 11.09%
4.14% - 12.65%
Lowest Quarterly Return
-2.72%
-16.37% - -2.72%
-24.31% - -8.72%
Performance Alarms
0
0 - 3
0 - 1
For time periods prior to July 2002, actual historical performance data has
been adjusted for fees and/or designs for multiple manager funds that are
specific to the FRS. Beta is the average percent change in the fund's
return if there is a 1% change in the benchmark's return. Tracking Error
is the standard deviation of the statistically unexplained
difference between the fund's return and the benchmark return. Performance
alarms are a statistical measure of underperformance relative to the benchmark.
Multiple alarms may imply a higher risk of future underperformance.
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See how $10,000 invested in this fund since plan/fund inception would have grown over time (based on unit value) in the
Growth of $10,000 Chart on the MyFRS.com website.
Fund Management and Marketing
Investment Manager(s):
BlackRock, Prudential Investments
Portfolio Manager(s):
See Detailed Fund Operations for each underlying fund
Before You Choose a Fund in the FRS Investment Plan
Keep in mind that past performance does not guarantee future results. So before choosing, get objective,
professional guidance on what specific funds would best fit your needs and the level of risk involved. Call the MyFRS Financial
Guidance Line at 1-866-446-9377, Option 2 (TRS 711), or visit MyFRS.com for free guidance and additional information on this
investment fund, including Financial Engines' Fund Score Card and
Detailed Fund Operations. These reports discuss the investment strategies and other factors that
may significantly affect the fund's performance. You can also make daily account transfers or withdrawals through these phone and online
resources, unless the fund has transfer restrictions.
This profile is intended for use in connection with the FRS Investment Plan, pursuant to Florida law, and is not intended for use by other investors.
Sections 121.4501(8)(b)4. and 121.4501(15)(b), Florida Statutes, incorporates the federal law concept of participant control, established
by regulations of the U.S. Department of Labor under section 404(c) of the Employee Retirement Income Security Act of 1974. If you exercise
control over the assets in your Investment Plan account, pursuant to section 404(c) regulations and all applicable laws governing the
operation of the Investment Plan, no program fiduciary shall be liable for any loss to your account which results from your exercise of control.