Capital Research & Management Company

Core global stock fund focusing on developed markets

MSCI World Index

Actively Managed

Prudential Retirement Services

Fees and expenses are only one of several factors that should be considered when making investment decisions. More information on fees and expenses can be found in the FAQs on the MyFRS.com website.

On an annual basis, marketing companies estimate the fees that FRS Investment Plan participants will pay as a percentage of their mutual fund account assets; e.g., 0.50% per year. These figures reflect any rebates or reductions negotiated by the State Board of Administration and are published in the Fund Profiles and other plan materials.

However, the actual fees you would pay as an investor in a mutual fund are not guaranteed and will vary over time when expressed as a percent of asset values. Mutual fund boards of directors can change fees without the FRS's permission. Changes occur throughout the year in the day-to-day expenditures made by mutual funds to cover their operating expenses and these changes are passed through to shareholders. The amount of assets under management changes from period to period and so fees expressed as a ratio of assets will vary, even if the actual dollar expenditures do not. Also, some mutual funds have fees that can rise or fall depending on performance compared to a benchmark.

The actual expenses paid for mutual funds included in the FRS Investment Plan are detailed in their annual or semi-annual reports for previous periods. These reports are available free of charge by calling the MyFRS Financial Guidance Line (1-866-446-9377). Please note that these reports will not reflect any rebates or reductions negotiated by the State Board of Administration.

The fund seeks to provide long-term growth of capital through investment all over the world, including the United States. The fund diversifies in blue chip companies here and abroad, emphasizing multinational or global companies and focusing on opportunities generated by changes in global trade patterns and economic and political relationships.

When identifying value in a company, Capital Research & Management Company's (CRMC) investment professionals generally look at the following relationships:

1. Price relationship to earnings, overall cash flow and future income should be reasonable.
2. Other things being equal, they prefer a good dividend return, even where the investment objective does not stress yield.
3. Companies selected are often asset-rich with strong balance sheets.
4. They review the relationship of price to book value as being meaningful, and therefore are more persuaded to invest in stocks whose prices are not excessive relative to book value, or in companies where asset values are understated.

Each portfolio manager has sole responsibility for selecting securities for his/her portion of the portfolio. Country and sector weightings are the output of the security selection decisions made by the individual portfolio managers.

The Fund's sell discipline is not defined under rigid standards, such as selling when a stock has increased or decreased a predetermined percentage. Instead, a stock is sold simply when superior value, opportunity, exists in other issues.