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Fund Comparison Report
Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 1 of 13 Fund Comparison Report Portfolio Asset Allocation Columbia Asset Allocation Z (GAATX) US Stocks Non US Stocks Bonds Cash Other Fidelity Advisor Growth Opportunities A (FAGAX) 46.49 9.95 38.24 4.69 0.63 US Stocks Non US Stocks Bonds Cash Other Janus A (JDGAX) TIAA-CREF Short-Term Bond Retail (TCTRX) US Stocks Non US Stocks Bonds Cash Other 94.79 3.38 0.00 1.83 0.00 US Stocks Non US Stocks Bonds Cash Other 85.46 11.47 1.68 1.39 0.00 Fidelity Magellan (FMAGX) 0.00 0.00 90.84 9.09 0.07 US Stocks Non US Stocks Bonds Cash Other 79.76 19.71 0.00 0.20 0.33 Title Bar Style 09-30-2010 Investment Columbia Asset Allocation Z (GAATX) Fidelity Advisor Growth Opportunities A (FAGAX) Janus A (JDGAX) TIAA-CREF Short-Term Bond Retail (TCTRX) Fidelity Magellan (FMAGX) Equity Style Equity Style Equity Style Fixed-Income Style Equity Style Fixed-Income Style Ownership Zone Ownership Zone Credit Quality Ownership Zone Type AAA AA A BBB BB B Below B Not Rated Equity Style Box 61.22 6.47 11.58 9.89 1.23 0.41 0.00 9.20 Portfolio Profile % Value Americas Greater Europe Greater Asia 3.00 and up 1.00–2.99 up to 0.99 Centroid 83.85 88.89 89.49 — 84.69 10.74 0.38 7.88 — 5.66 5.40 0.72 2.62 — 9.65 Columbia Asset Allocation Z Info Econ Svc Econ Mftg Econ Fidelity Advisor Growth Opportunities A 40.64 35.02 34.29 — 37.63 39.75 24.36 32.49 — 32.47 Small Mid Large Giant Equity Style Micro Janus A Fidelity Magellan Deep Val Core Val Blend % Bonds Core Grth High Grth 19.61 40.62 33.12 — 29.89 World Regions Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Stock Sectors Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan NOTE: Information for funds with different objectives/categories may not be directly comparable. Please see Comparing Funds in the Disclosure Statement and/or the fund’s prospectus for more information. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 2 of 13 Fund Comparison Report Bond Statistics Portfolio Statistics* Avg Effective Duration Avg Effective Maturity Avg Weighted Coupon 4.39 — — 2.57 — 4.57 — — 2.76 — Avg Weighted Price 5.37 — — 2.75 — 108.63 — — 103.44 — Foreign Cash (% of FI Assets) Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan *Figure provided by fund Bond Sectors US Government Mortgage Credit 16.79 — — 48.97 — 42.76 — — 0.28 — 31.87 — — 37.39 — 8.58 — — 13.36 — Utilities Health Water/Waste Housing Education — — — — — — — — — — — — — — — Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Municipal Bond Sectors General Obligation — — — — — — — — — — — — — — — — — — — — Transportation COP/Lease Industrial Misc Revenue Demand — — — — — — — — — — — — — — — — — — — — — — — — — Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan NOTE: Information for funds with different objectives/categories may not be directly comparable. Please see Comparing Funds in the Disclosure Statement and/or the fund’s prospectus for more information. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 3 of 13 Fund Comparison Report Statistics Quick Stats 11-30-2010 Overall Morningstar Rating™ Overall Morningstar Risk™ Overall Morningstar Return™ Morningstar Category™ Prospectus Objectives Overall Morningstar Ratings & Risk QQQ (910) Q (1503) WW (1503) QQQ (376) Q (1503) Average (910) High (1503) Average (1503) Below Average (376) High (1503) Average (910) Below Average (1503) Below Average (1503) Average (376) Below Average (1503) Moderate Allocation Large Growth Large Growth Short-Term Bond Large Growth Asset Allocation Growth Growth Income Growth Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan 3-Yr Morningstar Rating™ 3-Yr Morningstar Risk™ 3-Yr Morningstar Return™ Morningstar Category™ Prospectus Objectives 3-Yr Morningstar Ratings & Risk QQQ (910) Q (1503) WW (1503) QQQ (376) Q (1503) Average (910) High (1503) Average (1503) Below Average (376) High (1503) Average (910) Low (1503) Below Average (1503) Average (376) Low (1503) Moderate Allocation Large Growth Large Growth Short-Term Bond Large Growth Asset Allocation Growth Growth Income Growth Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan 5-Yr Morningstar Rating™ 5-Yr Morningstar Risk™ 5-Yr Morningstar Return™ Morningstar Category™ Prospectus Objectives 5-Yr Morningstar Ratings & Risk QQQ (730) Q (1282) WWW (1282) — Q (1282) Average (730) High (1282) Average (1282) — High (1282) Average (730) Low (1282) Average (1282) — Below Average (1282) Moderate Allocation Large Growth Large Growth Short-Term Bond Large Growth Asset Allocation Growth Growth Income Growth Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan 10-Yr Morningstar Rating™ 10-Yr Morningstar Risk™ 10-Yr Morningstar Return™ Morningstar Category™ Prospectus Objectives 10-Yr Morningstar Ratings & Risk QQ (396) QQ (770) WW (770) — QQ (770) Average (396) Above Average (770) Average (770) — Above Average (770) Below Average (396) Average (770) Below Average (770) — Average (770) Moderate Allocation Large Growth Large Growth Short-Term Bond Large Growth Asset Allocation Growth Growth Income Growth Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Prospectus Net Expense % Total Assets $ Mil 0.92 (01-31-2010)* 0.80 1.04 (02-16-2011)* 0.65 (01-31-2011)* 0.75 96 255 439 156 19,325 Prospectus Gross Expense % 1.62 0.80 1.08 0.76 0.75 Manager Management and Fees Multiple Steven Wymer Multiple Multiple Harry Lange Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan *Contractual Waiver Expiration The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of three-, five-, and 10-year (if applicable) Morningstar metrics. NOTE: Information for funds with different objectives/categories may not be directly comparable. Please see Comparing Funds in the Disclosure Statement and/or the fund’s prospectus for more information. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 4 of 13 Fund Comparison Report Statistics continued Risk and Return Profile Standard Deviation Mean Sharpe Ratio % Up Capture* % Down Capture* 0.03 –0.33 –0.17 0.36 –0.45 –0.02 –0.16 –0.12 1.51 –0.22 73.29 128.03 104.62 9.04 121.17 64.98 130.95 101.81 –5.44 128.47 15.28 29.15 22.73 2.39 27.82 3-Yr Risk Statistics Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan *Benchmark: S&P 500 TR MPT Statistics—3-Yr Alpha Beta R-Squared –1.29 –0.48 0.86 1.10 –1.72 1.05 1.17 1.00 0.46 1.22 97.72 76.62 91.88 61.79 91.32 Alpha Beta R-Squared –0.01 –5.49 — –0.08 –8.07 0.80 1.07 — 0.90 1.04 98.30 92.18 — 83.67 97.33 Primary Benchmark Against Primary Benchmark Morningstar Moderate Target Risk S&P 500 TR S&P 500 TR BarCap US Agg Bond TR USD S&P 500 TR Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Best Fit Index Against Best Fit Index Morningstar Moderately Agg Target Risk Morningstar Mid Growth TR USD — BarCap Gov’t/Credit 1-5 Yr TR USD Russell Mid Cap Growth TR USD Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan NOTE: Information for funds with different objectives/categories may not be directly comparable. Please see Comparing Funds in the Disclosure Statement and/or the fund’s prospectus for more information. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 5 of 13 Fund Comparison Report Performance Performance 13.7K 11.9 10.2 8.4 Growth of $10,000 Columbia Asset Allocation Z (GAATX) Fidelity Advisor Growth Opportunites A (FAGAX) Janus A (JDGAX) TIAA-CREF Short-Term Bond Retail (TCTRX) Fidelity Magellan (FMAGX) 6.6 4.9 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD D D — — S F S — — D D A — — F S F — — S S S — — S S D — — A S A — S F D F — A F S A — D A — — — — — 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 698 1064 1064 — 1064 757 1234 1234 — 1244 843 1311 1311 — 1311 925 1400 1400 — 1410 985 1495 1495 — 1495 1041 1642 1642 — 1642 1103 1748 1748 444 1748 1206 1809 1809 439 1809 1177 1796 1796 432 1796 1077 1729 1729 432 1729 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD –5.66 –3.13 –14.40 — 0.23 –8.60 –0.24 –5.64 — –1.56 –3.14 0.71 2.69 — –3.86 –1.86 –3.80 –6.46 — –3.39 –1.45 3.72 –1.19 — 1.51 –1.54 –10.77 –5.48 — –8.58 –1.18 17.57 9.44 –1.59 13.33 –4.88 –18.30 –2.99 –2.77 –12.40 1.77 20.75 10.48 –0.35 14.67 0.87 9.17 –2.45 –2.60 –2.47 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD –8.12 –15.02 –26.29 — –11.65 –15.30 –22.34 –27.74 — –23.66 19.33 29.39 31.38 — 24.82 9.62 7.08 4.43 — 7.49 5.59 8.63 3.72 — 6.42 11.41 5.03 10.31 — 7.22 7.45 23.07 14.93 5.38 18.83 –27.07 –55.30 –39.99 2.47 –49.40 23.55 47.22 36.94 5.58 41.13 8.69 17.03 5.41 5.11 5.39 Quartile Rank in Category Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Number of Funds in Category Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan +/- Primary Benchmark Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Total Return % Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan NOTE: Information for funds with different objectives/categories may not be directly comparable. Please see Comparing Funds in the Disclosure Statement and/or the fund’s prospectus for more information. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 6 of 13 Fund Comparison Report Performance continued Trailing Returns 11-30-2010 1-Yr 3-Yr 5-Yr 10-Yr Since Inception Inception Date 9.99 16.32 3.04 4.25 9.97 –0.77 –9.82 –6.40 4.41 –8.93 3.42 –1.26 0.81 — –0.45 2.42 –0.62 –2.52 — –0.71 6.53 2.59 17.69 4.77 16.43 12-30-1991 09-03-1996 07-06-2009 03-31-2006 05-02-1963 Load Adjusted Monthly Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Standardized 09-30-2010 Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan 8.67 9.56 2.92 5.87 4.41 — — — — — 3.04 –1.81 — — –1.03 1.56 –2.65 — — –2.25 6.42 2.06 17.31 4.96 16.37 12-30-1991 09-03-1996 07-06-2009 03-31-2006 05-02-1963 Total Return Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan 9.99 23.42 9.32 4.25 9.97 –0.77 –8.03 –4.54 4.41 –8.93 3.42 –0.08 2.02 — –0.45 2.42 –0.03 –1.94 — –0.71 6.53 3.02 22.77 4.77 16.43 12-30-1991 09-03-1996 07-06-2009 03-31-2006 05-02-1963 Performance Disclosure The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate thus an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted therein. Columbia Asset Allocation Z: For performance data current to the most recent month-end, please call 800-345-6611 or visit www.columbiafunds.com Fidelity Advisor Growth Opportunities A: For performance data current to the most recent month-end, please call 877-208-0098 or visit www.advisor.fidelity.com Janus A: For performance data current to the most recent month-end, please call 800-525-0020 or visit www.janus.com TIAA-CREF Short-Term Bond Retail: For performance data current to the most recent month-end, please call 800-223-1200 or visit www.tiaa-cref.org Fidelity Magellan: For performance data current to the most recent month-end, please call 800-544-6666 or visit www.fidelity.com NOTE: Information for funds with different objectives/categories may not be directly comparable. Please see Comparing Funds in the Disclosure Statement and/or the fund’s prospectus for more information. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 7 of 13 Annualized Returns 09-30-2010 Standardized Returns (%) Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan 7-day Yield 1-Yr 5-Yr 10-Yr Since Inception Inception Date — — — — — 8.67 9.56 2.92 5.87 4.41 3.04 –1.81 — — –1.03 1.56 –2.65 — — –2.25 6.42 2.06 17.31 4.96 16.37 12-30-1991 09-03-1996 07-06-2009 03-31-2006 05-02-1963 Max Front Load % Max Back Load % NA NA 0.92 1 1.62 NA 0.80 0.80 5.75 NA 1.04 2 1.08 NA NA 0.65 3 0.76 NA NA 0.75 0.75 –0.43 1. Contractual waiver; Expires 01-31-2012. 2. Contractual waiver; Expires 02-16-2011. 3. Contractual waiver; Expires 01-31-2011. Return after Tax (%) 2011 Gross Exp Ratio % 5.75 3-Mon Columbia Asset Allocation Z Fidelity Advisor Growth Opportunities A Janus A TIAA-CREF Short-Term Bond Retail Fidelity Magellan Net Exp Ratio % 1-Yr 5-Yr 10-Yr Since Inception Inception Date 1-Yr 5-Yr 10-Yr Since Inception 7.82 9.37 2.88 4.92 4.19 1.31 –1.86 — — –2.37 0.24 –2.97 — — –3.09 5.01 1.25 17.27 3.55 13.66 12-30-1991 09-03-1996 07-06-2009 03-31-2006 05-02-1963 5.62 6.20 1.90 3.80 2.86 1.91 –1.56 — — –0.73 0.72 –2.31 — — –1.90 4.94 1.47 14.73 3.40 13.68 Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 8 of 13 Fund Comparison Report Fund Strategy and Risk Details Fund Strategy Columbia Asset Allocation Z The investment seeks total return, consisting of long-term capital appreciation and current income. The fund invests primarily in shares of mutual funds managed by Columbia Management Investment Advisers, LLC (the Adviser) or its affiliates (Columbia Funds), and may also invest in exchange-traded funds (ETFs) and third party-advised funds (collectively, Underlying Funds), equity and fixed income securities, including Treasury Inflation Protected Securities (TIPS), and other instruments such as derivatives. It invests at least 25% of total assets in fixed-income securities, including preferred stocks and fixed-income securities. Fidelity Advisor Growth Opportunities A The investment seeks capital growth. The fund normally invests in common stocks issued by both domestic and foreign issuers. The portfolio invests in companies it believes have above-average growth potential. It focuses on investing the fund’s assets in securities issued by larger-sized companies. The fund may also make substantial investments in securities issued by medium and smaller companies. Janus A The investment seeks long-term growth of capital. The fund invests primarily in common stocks selected for their growth potential. It may invest in companies of any size. The fund generally invests in larger, more established companies. It may invest in foreign equity and debt securities, which may include investments in emerging markets. The fund can also invest in derivatives. TIAA-CREF Short-Term Bond Retail The investment seeks high current income consistent with preservation of capital. The fund invests at least 80% of assets in U.S. treasury and agency securities and corporate bonds with maturities less than five years. It invests up to 15% of assets in the securities of foreign issuers. Fidelity Magellan The investment seeks capital appreciation. The fund invests primarily in common stocks of domestic and foreign issuers. It invests in either “growth” stocks or “value” stocks or both using fundamental analysis of factors such as each issuer’s financial condition and industry position, as well as market and economic conditions to select investments. Specific Risks Columbia Asset Allocation Z The investment return and principal value of a fund will fluctuate; thus, an investor’s shares, when sold, may be worth more or less than their original cost. This fund has exposure to international and high-yield bond securities. International/Emerging Markets: The investor should note that funds that invest in international securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. High-Yield Bonds: The investor should note that funds that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default. Fidelity Advisor Growth Opportunities A The investment return and principal value of a fund will fluctuate; thus, an investor’s shares, when sold, may be worth more or less than their original cost. This fund has exposure to international securities. Note that this fund is Non-diversified. International/Emerging Markets: The investor should note that funds that invest in international securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Non-Diversified Funds: The investor should note that funds that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of increased concentration of investments. Janus A The investment return and principal value of a fund will fluctuate; thus, an investor’s shares, when sold, may be worth more or less than their original cost. This fund has exposure to international securities. Note that this fund is Non-diversified. International/Emerging Markets: The investor should note that funds that invest in international securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Non-Diversified Funds: The investor should note that funds that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 9 of 13 Fund Comparison Report Fund Strategy and Risk Details continued Specific Risks continued increased concentration of investments. TIAA-CREF Short-Term Bond Retail The investment return and principal value of a fund will fluctuate; thus, an investor’s shares, when sold, may be worth more or less than their original cost. This fund has exposure to mid cap securities. Note that this fund is Non-diversified. Mid Cap Stocks: The investor should note that funds that invest in companies with capitalizations below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies. Non-Diversified Funds: The investor should note that funds that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of increased concentration of investments. Fidelity Magellan The investment return and principal value of a fund will fluctuate; thus, an investor’s shares, when sold, may be worth more or less than their original cost. This fund has exposure to international securities. Note that this fund is Non-diversified. International/Emerging Markets: The investor should note that funds that invest in international securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Non-Diversified Funds: The investor should note that funds that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of increased concentration of investments. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Fund Comparison Report Disclosure Statement The Fund Comparison report is supplemental sales material, and therefore must be preceded or accompanied by the fund’s current prospectus and a disclosure statement. Please read the prospectus carefully. In all cases, this disclosure statement should accompany this report. All data is based on the most recent information available to Morningstar. Ibbotson Associates, Inc. and Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., provides various institutional investment consulting services, including asset allocation advice to investment advisers who have or will be creating a fund-of-fund/asset allocation product. However, despite the fact that such a relationship may exist, the information displayed for those products will not be influence as they are objective measures and/or are derived by quantitative driven formulas (i.e., Morningstar Rating). For more information on these Morningstar relationships, please visit the Help section of this product. Morningstar is not a FINRA-member firm. Comparing Funds Comparison of funds with different objectives or categories may produce differences that are not meaningful, or even misleading. If this report contains funds from two different Morningstar categories, this will be prominently disclosed at the bottom of the report. Note that there are times when it may be appropriate to compare funds from different categories; for example, when you are interested in changing the fundamental strategy undertaken by a fund you hold currently. However, note that return behavior of funds from different categories may be expected to exhibit different risk and return characteristics, without regard to manager quality. Morningstar star ratings are assessed against other funds in that category, so a fund with a particular star rating within one category may not be directly comparable with a fund’s star rating from another category. Likewise, Morningstar Risk and Morningstar Return measures are calibrated in relation to the category to which they are assigned. Rankings of the funds within their respective categories may not be directly comparable. The funds may have different primary benchmarks as a result of being from two distinct categories, and direct comparisons of two different funds’ performance against two different benchmarks may not be meaningful. Asset Allocation The weighting of the portfolio in various asset classes, including “Other” is shown in the table. “Other” includes security types that are not neatly classified in the other asset classes, such as convertible bonds and preferred stocks. In the table, allocation to the classes is shown for long positions, short positions, and net (long positions net of short) positions. These statistics summarize what the managers are buying and how they are positioning the portfolio. When short positions are captured in these portfolio statistics, investors get a more robust description of the funds’ exposure and risk. Most managed product portfolios hold fairly conventional securities, such as long positions in stocks and bonds. Other portfolios use other investment strategies or securities, such as short positions or derivatives, to reduce transaction costs, enhance returns, or Page 10 of 13 reduce risk. Some of these securities and strategies behave like conventional securities, while others have unique return and risk characteristics. Most portfolios take long positions in securities. Long positions involve buying the security outright and then selling it later, with the hope that the security price rises over time. In contrast, short positions are taken to benefit from anticipated price declines. In this type of transaction, the investor borrows the security from another investor, sells it and receives cash, and then is obligated to buy it back at some point in the future. If the price falls after the short sale, the investor will have sold high and can now buy low to close the short position and lock in a profit. However, if the price of the security increases after the short sale, the investor will experience losses by buying it at a higher price than the sale price. The strategy of selling securities short is prevalent in specialized portfolios, such as long-short, market-neutral, bear-market, and hedge funds. Most conventional portfolios do not typically short securities, although they may reserve the right to do so under special circumstances. Funds may also short derivatives, and this is sometimes more efficient than shorting individual securities. Short positions produce negative exposure to the security that is being shorted. This means that when the security rises in value, the short position will fall in value and vice versa. Morningstar’s portfolio statistics will capture this negative exposure. For example, if a fund has many short stock positions, the percent of assets in stocks in the asset allocation breakdown may be negative. Funds must provide their broker with cash collateral for the short position, so funds that short often have a large cash position, sometimes even exceeding 100% cash. Note that all other portfolio statistics presented in this report are based on the long holdings of the fund only. Investment Style The Morningstar Style Box reveals a fund’s investment style as of the date noted on this report. For equity funds the vertical axis shows the market capitalization of the long stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond’s effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by a Nationally Recognized Statistical Rating Organization (NRSRO). If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of ‘A’ in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weightedaverage credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of “low”, “medium”, or “high” based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than “BBB-”; medium are those less than “AA-”, but greater or equal to “BBB-”; and high are those with a weighted-average credit quality of “AA-” or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar’s © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund’s interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI’s average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and nonUS domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years. The Morningstar Ownership Zone provides a graphic representation of the size and investment style of stocks in an equity portfolio. The Ownership Zone is derived by plotting each stock in the portfolio within the Morningstar Style Box. The Ownership Zone is the shaded area that represents 75% of the assets in the portfolio and indicates the level of concentration in the holdings. The “centroid” in the middle of the Ownership Zone represents the weighted average of all the holdings. The Ownership Zone helps investors differentiate between portfolios that may otherwise look similar. Investors can also use the Ownership Zone to construct diversified portfolios and model how multiple funds complement one other in a portfolio. The Morningstar U.S. Equity Style Box is a grid that provides a graphical representation of the investment style of stocks and portfolios. It classifies securities according to market capitalization (the vertical axis) and 10 growth and value factors (the horizontal axis) and allows us to provide analysis on a 5-by-5 Style Box - as well as providing the traditional style box assignment, which is the basis for the Morningstar Category. Two of the style categories, value and growth, are common to both stocks and portfolios. However, for stocks, the central column of the style box represents the core style (those stocks for which neither value or growth characteristics dominate); for portfolios, it represents the blend style (a mixture of growth and value stocks or mostly core stocks). Furthermore, the core style for stocks is wider than the blend style for portfolios. Extended Performance Ratings Please note that some Morningstar proprietary calculations, including the Morningstar Rating, may be calculated based on adjusted historical returns (pre-inception returns). If the extended performance rating is in effect, the “stars” are represented as unshaded stars. In the extended performance rating calculation, up to ten years of actual plus preinception returns are adjusted for risk and loads. The Extended Performance Rating is hypothetical and is intended to illustrate how the fund’s risk-adjusted pre-inception returns rank against the actual risk-adjusted returns of similar funds/sub-accounts. Note that while pre-inception returns can either be load-adjusted or not load-adjusted, Extended Performance Ratings are always adjusted for the effects of sales loads. Before determining the Extended Performance Rating, extended performance of a fund is calculated by Morningstar. Extended performance is calculated by applying the historical performance of the oldest share class, adjusted to reflect the fees and expenses of the newer share class. These fees and expenses are referenced in the report’s Quick Stat section. Page 11 of 13 In a separate process, the breakpoints between each rating level (one through five) are established each month for each time period (three, five, or ten years) based only on funds/sub-accounts with actual returns for those time periods. These breakpoints are static, and extended performance results are not included when these breakpoints are determined. Then, for funds with extended performance, Extended Performance Ratings for each time period are assigned based on those pre-established breakpoints. The Extended Performance Overall Morningstar Rating is calculated by combining the three-, five-, and ten-year Extended Performance Ratings as available and applicable. While the inclusion of pre-inception data provides valuable insight, investors should be aware that Extended Performance Ratings serve only as an approximation of a Morningstar rating that would be based on actual historical performance of a fund, and are hypothetical in nature. Quick Stats Morningstar Rating The Morningstar Rating is calculated for funds with at least a three-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a mutual fund is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. Morningstar Risk evaluates a mutual fund’s downside volatility relative to that of other funds in its Morningstar Category. It is an assessment of the variations in a fund’s monthly returns, with an emphasis on downside variations, in comparison with the mutual funds in its Morningstar Category. In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk (LOW), the next 22.5% Below Average (-AVG), the middle 35% Average (AVG), the next 22.5% Above Average (+AVG), and the top 10% High (HIGH). Morningstar Risk is measured for up to three time periods (three-, five-, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the mutual fund. Funds with less than three years of performance history are not rated. Morningstar Return rates a mutual fund’s performance relative to other funds in its Morningstar Category. It is an assessment of a fund’s excess return over a risk-free rate (the return of the 90-day Treasury Bill), after adjusting for all applicable loads and sales charges, in comparison with the mutual funds in its Morningstar Category. In each Morningstar Category, the top 10% of funds earn a High Morningstar Return (HIGH), the next 22.5% Above Average (+AVG), the middle 35% Average (AVG), the next 22.5% Below Average (-AVG), and the bottom 10% Low (LOW). Morningstar Return is measured for up to three time periods (three-, five-, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the mutual fund. Funds with less than three years of performance history are not rated. Expense Ratios Prospectus Gross Expense Ratio reflects the annual percentage of a fund’s assets paid out in expenses. Expenses include management, 12B-1, transfer agent and all other asset-based fees associated with the fund’s daily operations and distribution, with the exception of brokerage commissions. It does not reflect expenses that have been reimbursed by the investment advisor, reductions from brokerage service arrangements or other expense offset arrangements. Prospectus Net Expense Ratio reflects actual expenses paid by the fund as well as any voluntary waivers, reductions from brokerage service arrangements and any other expense offset arrangements. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 12 of 13 The risk measures below are calculated for funds with at least a three- year history. assumes that the investment is made at the beginning of the period, and liquidated at the end. Sales charges associated with purchase and/or sale are reflected in the graph. Standard deviation is a statistical measure of the volatility of the fund’s returns. If pre-inception data is included in the analysis, it will be graphed. Mean represents the annualized geometric return for the period shown. Performance Risk Measures The Sharpe ratio uses standard deviation and excess return to determine reward per unit of risk. Upside/Downside Capture Ratio measures a manager’s performance in up/down markets relative to the market (benchmark) itself. It is calculated by taking the security’s upside/downside capture return and dividing it by the benchmark’s upside/downside capture return. Alpha measures the difference between a fund’s actual returns and its expected performance, given its level of risk (as measured by beta). Alpha is often seen as a measure of the value added or subtracted by a portfolio manager. Beta is a measure of a fund’s sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. R-squared reflects the percentage of a fund’s movements that is explained by movements in its benchmark index, showing the degree of correlation between the fund and the benchmark. This figure is also helpful in assessing how likely it is that alpha and beta are statistically significant. Best fit index: Alpha, beta, and R-squared statistics are presented for a broad market index and a “Best fit” index. The Best-Fit index identified in this report was determined by Morningstar by calculating R-squared for the fund against approximately 100 indexes tracked by Morningstar. The index representing the highest R-squared is identified as the best-fit index. The best-fit index may not be the fund’s benchmark, nor does it necessarily contain the types of securities that may be held by the fund. Risk measures calculated using pre-inception data, if included in the analysis, will be presented in italics. Pre-inception Returns The analysis in this report may be based, in part, on adjusted historical returns for periods prior to the fund’s actual inception. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect the fees and expenses of this share class. These fees and expenses are referenced in the report’s Performance section. The performance data given represents past performance and should not be considered indicative of future results. Principal value and investment return will fluctuate, so that an investor’s shares when redeemed may be worth more or less than the original investment. Fund portfolio statistics change over time. The fund is not FDIC-insured, may lose value and is not guaranteed by a bank or other financial institution. High double- and triple-digit returns were the result of extremely favorable market conditions, which may not continue to be the case. High returns for short time periods must not be a major factor when making investment decisions. Quartile Rank in category is split into four quartiles. The graphic visually depicts the range of returns for the entire category. The top quartile represents the top 25% of funds, the 2nd quartile represents the next 25%, the 3rd quartile represents the next 25%, and the bottom quartile represents the bottom 25% of all funds in the same category. The Quartile Rank (in cat) data point reflects fund’s ranking for a particular period depending on the category at the time. It is important to note that funds may change categories from time to time, which could potentially affect their new quartile rank in the corresponding category. Total return reflects performance without adjusting for sales charges or the effects of taxation, but is adjusted to reflect all actual ongoing fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced. These return numbers may include pre-inception history. If this history is displayed, it will be represented in italics. Standardized Total Return is reflected as of month- and quarter-end time periods. It depicts performance without adjusting for the effects of taxation, but is adjusted for sales charges, all ongoing fund expenses, and assumes reinvestment of dividends and capital gains. If adjusted for the effects of taxation, the performance quoted would be reduced. The sales charge used in the calculation was obtained from the fund’s most recent prospectus and/or shareholder report available to Morningstar. Standardized returns never include pre-inception history. Investment Risks When pre-inception data are presented in the report, the header at the top of the report will indicate this. In addition, the pre-inception data included in the report will appear in italics. While the inclusion of pre-inception data provides valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures between a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Growth of $10,000 The graph compares the growth of $10,000 for funds included in the report. The graph International/Emerging Market Equities: Investing in international securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Sector Strategies: Portfolios that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks. Non-Diversified Strategies: Portfolios that invest a significant percentage of assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments. Small Cap Equities: Portfolios that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. Release date 11-30-2010 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. experienced a greater degree of market volatility that the overall market average. Mid Cap Equities: Portfolios that invest in companies with market capitalization below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies. High-Yield Bonds: Portfolios that invest in lower-rated debt securities (commonly referred as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default. Tax-Free Municipal Bonds: The investor should note that the income from tax-free municipal bond funds may be subject to state and local taxation and the Alternative Minimum Tax. Bonds: Bonds are subject to interest rate risk. As the prevailing level of bond interest rates rise, the value of bonds already held in a portfolio decline. Portfolios that hold bonds are subject to declines and increases in value due to general changes in interest rates. Page 13 of 13 Benchmark Disclosure BarCap US Agg Bond TR USD The index is composed of the BarCap Government/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The returns we publish for the index are total returns, which include reinvestment of dividends. MSCI EAFE NR USD This Europe, Australasia, and Far East index is a market-capitalization-weighted index of 21 non-U.S., industrialized country indexes. S&P 500 TR A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. TR (Total Return) indexes include daily reinvestment of dividends. USTREAS T-Bill Auction Ave 3 Mon Three-month T-bills are government-backed short-term investments considered to be risk-free and as good as cash because the maturity is only three months. Morningstar collects yields on the T-bill on a weekly basis from the Wall Street Journal. HOLDRs: The investor should note that these are narrow industry-focused products that, if the industry is hit by hard times, will lack diversification and possible loss of investment would be likely. These securities can trade at a discount to market price, ownership is of a fractional share interest, the underlying investments may not be representative of the particular industry, the HOLDR might be delisted from the AMEX if the number of underlying companies drops below nine, and the investor may experience trading halts. Bank Loan/Senior Debt: Bank loans and senior loans are impacted by the risks associated with fixed income in general, including interest rate risk and default risk. They are often non-investment grade; therefore, the risk of default is high. These securities are also relatively illiquid. Managed products that invest in bank loans/senior debt are often highly leveraged, producing a high risk of return volatility. Short Positions: When a short position moves in an unfavorable way, the losses are theoretically unlimited. The broker may demand more collateral and a manager might have to close out a short position at an inopportune time to limit further losses. Long-Short: Due to the strategies used by long-short funds, which may include but are not limited to leverage, short selling, short-term trading, and investing in derivatives, these funds may have greater risk, volatility, and expenses than those focusing on traditional investment strategies. Liquidity Risk: Closed-end fund, ETF, and HOLDR trading may be halted due to market conditions, impacting an investor’s ability to sell a fund. Market Price Risk: The market price of ETFs, HOLDRs, and closed-end funds traded on the secondary market is subject to the forces of supply and demand and thus independent of the NAV. This can result in the market price trading at a premium or discount to the NAV which will affect an investor’s value. Market Risk: The market prices of ETF’s and HOLDRs can fluctuate as a result of several factors, such as security-specific factors or general investor sentiment. Therefore, investors should be aware of the prospect of market fluctuations and the impact it may have on the market price. High double- and triple-digit returns were the result of extremely favorable market conditions, which may not continue to be the case. High returns for short time periods must not be a major factor when making investment decisions. © 2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.
