Profile: FRS Select High Yield Fund (B50)
Profile Issued 09/10
Asset Class and Fund Objective:
Specialty high-yield bond fund
Index or Active Strategy:
Active fund that attempts to beat the total return of the Barclay's Capitol Ba-B 2% Issuer Capped Index
Management Type:
Actively 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 High Yield Fund IMA
Range of Fees in Bond Funds
Range of Fees for Balanced Funds
Annual Fees in Percent of Assets
0.46%
0.05% - 0.59%
0.04% - 0.06%
For a $10,000 Account You Would Pay
First Year Fee
$46
$5 - $59
$4 - $6
Total Fees over 30 Years in Today's Dollars
$1483
$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 to achieve consistent excess return through a portfolio constructed from the bottom up using methodical, research-based
subsector and security selection within a universe of upper quality tiers of the high yield merket. When evaluating securities, the fund seeks to
identify strong and improving credits. The fund seeks to capture best opportunities and minimize credit losses within an environment of
descipline risk management oversight. The fund does not take extremely large positions nor hold a significant portion of the portfolio
in assets classes other than high yield.
Asset Allocation as of Qtr Ending
6/30/10
Sector Exposure as of
6/30/10
Health Care & Pharmaceuticals
11.75%
Media & Entertainment
6.32%
Rating Exposure as of
6/30/10
Other Portfolio Measures as of
6/30/10
Percent in Top 10 Holdings
12.34%
Number of Fund Holdings
397
Average Effective Duration
3.92
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
19.14%
7.81%
8.58%
Barclays Capital US HY Ba-2% Issuer Cap
20.32%
7.83%
8.61%
Average Annual Risk (Standard Deviation)
Investment Fund
5.91%
9.50%
7.94%
Barclays Capital US HY Ba-2% Issuer Cap *
6.18%
10.20%
8.42%
FRS Select Moderate Balanced Fund
8.53%
11.04%
10.25%
Prior to January 2010, actual historical performance data has been adjusted for
fees and/or designs for funds that are specific to the FRS.
Other Historical Risk Measures: 5 Year Period Ending July 31, 2010
FRS Select High Yield Fund IMA
Range of Measure in Bond Funds
Range of Measure for Balanced Funds
Beta vs. Benchmark *
90.99%
90.99% - 104.62%
97.31% - 99.74%
Tracking Error vs. Benchmark *
1.34%
0.19% - 2.16%
0.46% - 0.91%
Highest Quarterly Return
11.09%
5.14% - 11.09%
4.14% - 12.65%
Lowest Quarterly Return
-16.37%
-16.37% - -2.72%
-24.31% - -8.72%
Performance Alarms
1
0 - 3
0 - 1
Prior to January 2010, 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):
Prudential Investments
Portfolio Manager(s):
See Detailed Fund Operations
Marketing Company:
Prudential Retirement
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.