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Release Date: 09-30-2018

Vanguard Target Retirement 2045 Inv VTIVX ..........................................................................................................................................................................................................................................................................................................................................BenchmarkMorningstar Lifetime Mod 2045 TR USD

Overall Morningstar Rating™ Morningstar Return Morningstar Risk

QQQQ Above Average AverageOut of 175 Target-Date 2045 funds. An investment's overall Morningstar Rating, based on its risk-adjustedreturn, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.

Investment Objective & StrategyFrom investment’s prospectus

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2045 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

Fees and Expenses as of 01-25-18

Prospectus Net Expense Ratio 0.15%Total Annual Operating Expense 0.15%Maximum Sales Charge .12b-1 Fee .Redemption Fee/Term .

Waiver Data Type Exp. Date %

. . . .

Operations and Management

Fund Inception Date 10-27-03Portfolio Manager(s) William A. Coleman

Walter NejmanName of Issuer VanguardTelephone 800-662-7447Web Site www.vanguard.com

Benchmark Description: Morningstar Lifetime Mod 2045 TR USD

The index measures the performance of a portfolio of globalequities, bonds and traditional inflation hedges such ascommodities and TIPS. This portfolio is held in proportionsappropriate for a US investor who has a target maturity dateof 2045. The Moderate risk profile is for investors who arecomfortable with average exposure to equity market volatility.

Category Description: Target-Date 2045

Target-date portfolios provide diversified exposure to stocks,bonds, and cash for those investors who have a specific datein mind (in this case, the years 2041-2045) for retirement.These portfolios aim to provide investors with an optimal levelof return and risk, based solely on the target date.Management adjusts the allocation among asset classes tomore-conservative mixes as the target date approaches,following a preset glide path. A target-date portfolio is part ofa series of funds offering multiple retirement dates toinvestors.

Allocation of Assets

050 40 30 20 10 -10 -20 -30

10080

60

40

200

Years Until Retirement

% AllocationBondsStocksCashOther

PerformanceTrailing Returns YTD 1 Year 3 Year 5 Year 10 Year Since Inception

Investment Return % 4.40 9.85 12.91 9.39 9.24 8.10Benchmark Return % 3.97 9.69 12.92 8.69 9.12 .Category Average % 4.10 9.22 12.14 8.42 8.54 7.43........................................................................................................................................................................................................................Morningstar Rating™ . . QQQQ QQQQ QQQQ .# of Funds in Category . . 175 136 66 .

Quarter End Returns as of 09-30-18 YTD 1 Year 3 Year 5 Year 10 Year Since Inception

Fund Return % 4.40 9.85 12.91 9.39 9.24 8.10Standardized Return % 4.40 9.85 12.91 9.39 9.24 8.10

Performance Disclosure: The performance data quoted represents past performance and does not guarantee futureresults. The investment return and principal value of an investment will fluctuate; thus an investor’s shares, whenredeemed, may be worth more or less than their original cost. Current performance may be lower or higher thanreturn data quoted herein. For performance data current to the most recent month-end please visit the websitelisted under Operations and Management on this page.

Portfolio Analysis as of 08-31-18Composition as of 08-31-18 % Assets

U.S. Stocks 54.4Non-U.S. Stocks 33.9Bonds 9.7Cash 1.6Other 0.5

Morningstar Style Box™ as of 08-31-18(EQ) ; 06-30-18(F-I)

LargeM

idSm

all

Value Blend Growth

HighM

edLow

Ltd Mod Ext

Top 10 Holdings as of 08-31-18 % Assets

Vanguard Total Stock Mkt Idx Inv 54.60Vanguard Total Intl Stock Index Inv 35.41Vanguard Total Bond Market II Idx Inv 7.04Vanguard Total Intl Bd Idx Investor 2.95Cmt Market Liquidity Rate 0.00

.......................................................................................................Total Number of Holdings 5Annual Turnover Ratio % 8.00Total Fund Assets ($mil) 24,329.57

Morningstar Sectors as of 08-31-18 % Fund S&P 500 %

h Cyclical 38.88 32.42........................................................................................................r Basic Materials 5.26 2.27t Consumer Cyclical 11.94 12.18y Financial Services 17.94 15.79u Real Estate 3.74 2.18

j Sensitive 38.90 42.67........................................................................................................i Communication Services 3.20 3.24o Energy 6.34 6.00p Industrials 11.51 10.35a Technology 17.85 23.08

k Defensive 22.22 24.92........................................................................................................s Consumer Defensive 7.74 7.13d Healthcare 11.57 14.96f Utilities 2.91 2.83

Principal Risks as of 08-31-18Hedging Strategies, Credit and Counterparty, Prepayment (Call), Currency, Loss of Money, Not FDIC Insured, Country or Region,Income, Interest Rate, Market/Market Volatility, Equity Securities, Fixed-Income Securities, Management, Target Date

©2018 Morningstar, Inc., Morningstar Investment Profiles™ 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) maynot be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use ofinformation. Past performance is no guarantee of future performance. Visit our investment website at www.morningstar.com ß

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Investors should consider the investment objectives,risks, and charges and expenses of the funds carefullybefore investing. The prospectus and summaryprospectus, if applicable, for each fund contains this andother information about that fund. For copies of anyprospectuses or summary prospectuses, if applicable,please call (866) 498-4557 or visit www.ta-retirement.com. Read each prospectus carefully beforeinvesting.

Transamerica Investors Securities Corporation (TISC), 440Mamaroneck Avenue, Harrison, NY 10528, distributessecurities products. Any fund offered under the plan isdistributed by that particular fund's associated fund family andits affiliated broker-dealer or other broker-dealers with effectiveselling agreements such as TISC. If the Transamerica Funds areoffered under the plan, the Transamerica Funds are distributedby Transamerica Capital, Inc. (TCI) and are advised byTransamerica Asset Management, Inc. (TAM). TAM, TCI, andTISC are affiliated companies and are not affiliated withMorningstar.

Effective August 31, 2015, Transamerica Retirement SolutionsCorporation changed its name to Transamerica RetirementSolutions, LLC.

Effective May 1, 2016, Transamerica Money Market changedits name to Transamerica Government Money Market,Transamerica Partners Money Market changed its name toTransamerica Partners Government Money Market, andTransamerica Partners Institutional Money Market changed itsname to Transamerica Partners Institutional GovernmentMoney Market, and each fund now operates as a "government"money market fund under new federal regulations, whichbecome fully effective on October 14, 2016. A "government"money market fund invests at least 99.5% of its total assets inU.S. government securities, cash, and/or repurchaseagreements that are fully collateralized by U.S. governmentsecurities or cash.

When used as supplemental sales literature, the InvestmentProfile must be preceded or accompanied by the fund's currentprospectus as well as this disclosure statement. Theperformance data given represents past performance andshould not be considered indicative of future results. Principalvalue and investment return will fluctuate, so that an investor'sshares when redeemed may be worth more or less than theoriginal investment. Fund portfolio statistics change over time.The fund is not FDIC-insured, may lose value and is notguaranteed by a bank or other financial institution.

PerformanceTotal return reflects performance without adjusting for salescharges or the effects of taxation, but is adjusted to reflect allactual ongoing fund expenses and assumes reinvestment ofdividends and capital gains. If adjusted, sales charges wouldreduce the performance quoted. Performance does not takeinto account any plan fees, asset based charges, servicecharges, or, if applicable, surrender or discontinuance charges.If adjusted for these charges, performance would be lower.

An asset based charge (also referred to as a variable assetcharge (VAC) or plan service fee (PSF)) of up to 0.75% may beassessed to all assets allocated to any mutual fund from theVanguard mutual fund family.

Standardized Total Return is total return adjusted for sales

charges. The sales charge adjusted for may not necessarily beconsistent with the prospectus.

The fund's performance is compared with that of an index. Theindex is an unmanaged portfolio of specified securities and theindex does not reflect any initial or ongoing expenses. A fund'sportfolio may differ significantly from the securities in the index.The index is chosen by Morningstar. One cannot invest directlyin an index.

Load-Adjusted Total Return is total return adjusted for salescharges. The sales charge adjusted for may not necessarily beconsistent with the prospectus.

Deposits made by plan participants are not subject to any front-end loads/sales fees of the mutual fund.

Performance shown since inception is from the initial classinception date listed on the individual investment fact sheet.

Adjusted Historical Return and Extended Performance Rating:Morningstar provides adjusted historical returns and anextended performance rating for some mutual funds in itsuniverse. This means that any share class that doesn't have a10-year performance history may show adjusted returns andreceive a hypothetical Morningstar Rating based on the oldestsurviving share class of the fund. Morningstar will adjust theperformance history of the original portfolio to reflect anydifferences in fees between the original share class and thenew share class. Because share classes are based on the sameunderlying portfolio of securities, the only differences inperformance can be attributable to fees. First, Morningstarcomputes the funds' new return stream by appending anadjusted return history of the oldest share class. Next, theExtended Performance Rating is determined by comparing theadjusted-historical returns to the current open-end mutual funduniverse to identify placement in the bell curve used to assignthe Morningstar Rating.

Clear Track FundsThe ClearTrackSM target date options invest in exchange-tradedfunds (ETFs) which may represent a variety of broad assetclasses including equity, fixed income, inflation-hedging, andshort-term defensive instruments and may be subject to all ofthe risks of these asset classes. ETFs generally present thesame risks as an investment in a conventional fund that has thesame investment objectives, strategies, and policies. Themarket price of an ETF's shares may be above or below theshares' net asset value; and an active trading market for an ETF'sshares may not develop or be maintained. The allocationsbecome more conservative over time: The fund's asset mixallocated to equities will decrease while the percentageallocated to fixed income will increase as the target dateapproaches. The higher the allocation is to equities, the greaterthe risk. The principal value of the investment option is neverguaranteed, including at and after the target date.Diversification does not assure a profit or protect against marketloss. Performance figures reflect any fee waivers and/orexpense reimbursements by the Investment Adviser. Withoutsuch waivers and/or reimbursements, the performance wouldbe lower. Future waivers and/or reimbursements are at thediscretion of the Investment Adviser.

Total Annual Operating Expense This is the percentage of fund assets paid for operatingexpenses and management fees. The expense ratio typicallyincludes the following types of fees: accounting, administrator,

advisor, auditor, board of directors, custodial, distribution(12b-1), legal, organizational, professional, registration,shareholder reporting, sub-advisor, and transfer agency. Theexpense ratio does not reflect the fund's brokerage costs or anyinvestor sales charges. In contrast to the net expense ratio, thegross expense ratio does not reflect any fee waivers in effectduring the time period. Also known as the Prospectus Gross Expense Ratio,Morningstar pulls the prospectus gross expense ratio from thefund's most recent prospectus.

Expense Ratio %The expense ratio is the annual fee that all funds charge theirshareholders. It expresses the percentage of assets deductedeach fiscal year for fund expenses, including 12b-1 fees,management fees, administrative fees, operating costs, and allother asset-based costs incurred by the fund. Portfoliotransaction fees, or brokerage costs, as well as front-end ordeferred sales charges are not included in the expense ratio.The expense ratio, which is deducted from the fund’s averagenet assets, is accrued on a daily basis. The gross expense ratio,in contract to the net expense ratio, does not reflect any feewaivers in effect during the time period.

Sales FeesAlso known as loads, sales fees list the maximum level of initial(front-end) and deferred (back-end) sales charges imposed bya fund. The scales of minimum and maximum charges are takenfrom a fund's prospectus. Because fees change frequently andare sometimes waived, it is wise to examine the fund'sprospectus carefully for specific information before investing.

The Maximum Sales Charge has been waived for plans servicedby Transamerica Retirement Solutions, LLC.

Charges, Fees and ExpensesDeposits made by plan participants are not subject to any front-end loads/sales fees of the underlying mutual fund. Therefore,such fees are not reflected in the performance reported.

Morningstar Rating™The Morningstar Rating™ for funds, or "star rating", iscalculated for managed products (including mutual funds,variable annuity and variable life subaccounts, exchange-tradedfunds, closed-end funds, and separate accounts) with at leasta three-year history. Exchange-traded funds and open-endedmutual funds are considered a single population for comparativepurposes. It is calculated based on a Morningstar Risk-AdjustedReturn measure that accounts for variation in a managedproduct's monthly excess performance, placing more emphasison downward variations and rewarding consistentperformance. The Morningstar Rating does not include anyadjustment for sales loads. The top 10% of products in eachproduct category receive 5 stars, the next 22.5% receive 4stars, the next 35% receive 3 stars, the next 22.5% receive 2stars, and the bottom 10% receive 1 star. The OverallMorningstar Rating for a managed product is derived from aweighted average of the performance figures associated withits three-, five-, and 10-year (if applicable) Morningstar Ratingmetrics. The weights are: 100% three-year rating for 36-59months of total returns, 60% five-year rating/40% three-yearrating for 60-119 months of total returns, and 50% 10-yearrating/30% five-year rating/20% three-year rating for 120 ormore months of total returns. While the 10-year overall starrating formula seems to give the most weight to the 10-yearperiod, the most recent three-year period actually has thegreatest impact because it is included in all three rating

Important Disclosures

©2018 Morningstar, Inc., Morningstar® Investment Profiles™ 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or itscontent providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsiblefor any damages or losses arising from any use of information. Past performance is no guarantee of future performance. Visit our investment website at www.morningstar.com. ß

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periods.

Morningstar ReturnThe Morningstar Return rates a fund's performance relative toother managed products in its Morningstar Category. It is anassessment of a product's excess return over a risk-free rate(the return of the 90-day Treasury Bill) in comparison with theproducts in its Morningstar category. In each Morningstarcategory, the top 10% of products earn a High MorningstarReturn (High), the next 22.5% Above Average (+Avg), themiddle 35% Average (Avg), the next 22.5% Below Average (-Avg), and the bottom 10% Low (Low). Morningstar Return ismeasured for up to three time periods (three, five, and 10 years).These separate measures are then weighted and averaged toproduce an overall measure for the product. Products with lessthan three years of performance history are not rated.

Morningstar RiskMorningstar Risk evaluates a fund's downside volatility relativeto that of other products in its Morningstar Category. It is anassessment of the variations in monthly returns, with anemphasis on downside variations, in comparison with theproducts in its Morningstar category. In each Morningstarcategory, the 10% of products with the lowest measured riskare described as Low Risk (Low), the next 22.5% BelowAverage (-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 thenweighted and averaged to produce an overall measure for theproduct. Products with less than three years of performancehistory are not rated.

Morningstar Style Box™ The Morningstar Style Box reveals a fund's investment strategyas of the date noted on this report.

For equity funds the vertical axis shows the marketcapitalization of the long stocks owned and the horizontal axisshows investment style (value, blend, or growth).

For fixed-income funds, the vertical axis shows the credit qualityof the long bonds owned and the horizontal axis shows interestrate sensitivity as measured by a bond's effective duration.

Morningstar seeks credit rating information from fundcompanies on a periodic basis (e.g., quarterly). In compilingcredit rating information Morningstar accepts credit ratingsreported by fund companies that have been issued by allNationally Recognized Statistical Rating Organizations(NRSROs). For a list of all NRSROs, please visit http://www.sec.gov/divisions/marketreg/ratingagency.htm.Additionally, Morningstar accepts foreign credit ratings fromwidely recognized or registered rating agencies. If two ratingorganizations/agencies have rated a security, fund companiesare to report the lower rating; if three or more organizations/agencies have rated a security, fund companies are to reportthe median rating, and in cases where there are more than twoorganization/agency ratings and a median rating does not exist,fund companies are to use the lower of the two middleratings. PLEASE NOTE: Morningstar, Inc. is not itself anNRSRO nor does it issue a credit rating on the fund. AnNRSRO or rating agency ratings can change from time-to-time.

For credit quality, Morningstar combines the credit ratinginformation provided by the fund companies with an average

default rate calculation to come up with a weighted-averagecredit quality. The weighted-average credit quality is currentlya letter that roughly corresponds to the scale used by a leadingNRSRO. 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 creditquality of "AA-" or higher. When classifying a bond portfolio,Morningstar first maps the NRSRO credit ratings of theunderlying holdings to their respective default rates (asdetermined by Morningstar's analysis of actual historical defaultrates). Morningstar then averages these default rates todetermine the average default rate for the entire bond fund.Finally, Morningstar maps this average default rate to itscorresponding credit rating along a convex curve.

For interest-rate sensitivity, Morningstar obtains from fundcompanies the average effective duration. Generally,Morningstar classifies a fixed-income fund's interest-ratesensitivity based on the effective duration of the MorningstarCore Bond Index (MCBI), which is currently three years. Theclassification of Limited will be assigned to those funds whoseaverage effective duration is between 25% to 75% of MCBI'saverage effective duration; funds whose average effectiveduration is between 75% to 125% of the MCBI will be classifiedas Moderate; and those that are at 125% or greater of theaverage effective duration of the MCBI will be classified asExtensive.

For municipal bond funds, Morningstar also obtains from fundcompanies the average effective duration. In these cases staticbreakpoints are utilized. These breakpoints are as follows: (i)Limited: 4.5 years or less; (ii) Moderate: more than 4.5 yearsbut less than 7 years; and (iii) Extensive: more than 7 years. Inaddition, for non-US taxable and non-US domiciled fixed incomefunds static duration breakpoints are used: (i) Limited: less thanor equal to 3.5 years; (ii) Moderate: greater than 3.5 and lessthan equal to 6 years; (iii) Extensive: greater than 6 years.

Investment Risk Foreign Securities Funds/Emerging Markets Funds: The investorshould note that funds that invest in foreign securities involvespecial additional risks. These risks include, but are not limitedto, currency risk, political risk, and risk associated with varyingaccounting standards. Investing in emerging markets mayaccentuate these risks.

Specialty/Sector Funds: The investor should note that fundsthat invest exclusively in one sector or industry involveadditional risks. The lack of industry diversification subjects theinvestor to increased industry-specific risks.

Non-Diversified Funds: The investor should note that funds thatinvest more of their assets in a single issuer involve additionalrisks, including share price fluctuations, because of theincreased concentration of investments.

Small Cap Funds: The investor should note that funds that investin stocks of small companies involve additional risks. Smallercompanies typically have a higher risk of failure, and are not aswell established as larger blue-chip companies. Historically,smaller-company stocks have experienced a greater degree ofmarket volatility than the overall market average.

Mid Cap Funds: The investor should note that funds that invest

in companies with market capitalizations below $10 billioninvolve additional risks. The securities of these companies maybe more volatile and less liquid than the securities of largercompanies.

High-Yield Bond Funds: The investor should note that funds thatinvest in lower-rated debt securities (commonly referred to asjunk bonds) involve additional risks because of the lower creditquality of the securities in the portfolio. The investor should beaware of the possible higher level of volatility, and increasedrisk of default.

Tax-Free Municipal Bond Funds: The investor should note thatthe income from tax-free municipal bond funds may be subjectto state and local taxation and the Alternative Minimum Tax.

Fund of Funds: It is important to note that an investment optionwith mutual funds in its portfolio may be subject to the expensesof those mutual funds in addition to those of the investmentoption itself.

Money Market Funds: Money Market Funds invest in short term(less than one year), high quality debt obligations, such asTreasury bills, certificates of deposit and commercial paper. TheTransamerica Government Money Market fund and, beginningon May 1, 2016, the Transamerica Partners Government MoneyMarket and Transamerica Partners Institutional GovernmentMoney Market funds will seek to maintain a stable net assetvalue of $1.00 per share and will declare dividends on a dailybasis. Undeclared investment income, or a default on a portfoliosecurity, may cause the fund's net asset value to fluctuate.Money market funds are not guaranteed by the FDIC or anyother government agency. This type of investment choicestrives to preserve principal and provide a modest dividend(subject to fluctuation), as well as liquidity. Nevertheless, theinvestment is still subject to credit risk and liquidity risk, andthe risk that inflation will outpace the fund's returns. It is stillpossible to lose money in a money market fund.

“Government" Money Market Funds (TransamericaGovernment Money Market, Transamerica PartnersGovernment Money Market, and Transamerica PartnersInstitutional Government Money Market): Effective May 1,2016, Transamerica Money Market changed its name toTransamerica Government Money Market, TransamericaPartners Money Market changed its name to TransamericaPartners Government Money Market, and TransamericaPartners Institutional Money Market changed its name toTransamerica Partners Institutional Government MoneyMarket, and each fund now operates as a "government" moneymarket fund under new federal regulations, which become fullyeffective on October 14, 2016. A "government" money marketfund invests at least 99.5% of its total assets in U.S. governmentsecurities, cash, and/or repurchase agreements that are fullycollateralized by U.S. government securities or cash. Aninvestment in the fund is not a bank deposit and is not insuredor guaranteed by the FDIC or any other government agency.Although the fund seeks to preserve the value of yourinvestment at $1.00 per share, it is possible to lose money byinvesting in the fund. TAM and its affiliates are under noobligation to provide financial support to the fund or take othermeasures to ensure that you do not lose money on yourinvestment in the fund. As a government money market fund,the fund is not required to impose a fee upon sale of your shares(liquidity fees) or temporarily suspend your ability to sell sharesif the fund's liquidity falls below required minimums (redemptiongates), and has no current intention to voluntarily impose such



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liquidity fees or redemption gates. However, the Board ofTrustees of the fund reserves the right to impose liquidity feesand/or redemption gates in the future.

Principal Risk DefinitionsActive Management: The investment is actively managed andsubject to the risk that the advisor's usage of investmenttechniques and risk analyses to make investment decisions failsto perform as expected, which may cause the portfolio to losevalue or underperform investments with similar objectives andstrategies or the market in general.

Amortized Cost: If the deviation between the portfolio'samortized value per share and its market-based net asset valueper share results in material dilution or other unfair results toshareholders, the portfolio's board will take action to counteractthese results, including potentially suspending redemption ofshares or liquidating the portfolio.

Asset Transfer Program: The portfolio is subject to unique risksbecause of its use in connection with certain guaranteed benefitprograms, frequently associated with insurance contracts. Tofulfill these guarantees, the advisor may make large transfersof assets between the portfolio and other affiliated portfolios.These transfers may subject the shareholder to increased costsif the asset base is substantially reduced and may cause theportfolio to have to purchase or sell securities at inopportunetimes.

Bank Loans: Investments in bank loans, also known as seniorloans or floating-rate loans, are rated below-investment gradeand may be subject to a greater risk of default than areinvestment-grade loans, reducing the potential for income andpotentially leading to impairment of the collateral provided bythe borrower. Bank loans pay interest at rates that areperiodically reset based on changes in interest rates and maybe subject to increased prepayment and liquidity risks.

Capitalization: Concentrating assets in stocks of one or morecapitalizations (small, mid, or large) may be subject to both thespecific risks of those capitalizations as well as increasedvolatility because stocks of specific capitalizations tend to gothrough cycles of beating or lagging the market as a whole.

Cash Drag: The portfolio may fail to meet its investmentobjective because of positions in cash and equivalents.

Cash Transactions: Redemptions of ETF shares for cash, ratherthan in-kind securities, may require the portfolio to sellsecurities. This may increase shareholder tax liability,potentially through capital gain distributions.

China Region: Investing in the China region, including HongKong, the People's Republic of China, and Taiwan, may besubject to greater volatility because of the social, regulatory,and political risks of that region, as well as the Chinesegovernment's significant level of control over China's economyand currency. A disruption of relations between China and itsneighbors or trading partners could severely impact China'sexport-based economy.

Closed-End Fund: Investments in closed-end funds generallyreflect the risks of owning the underlying securities, althoughthey may be subject to greater liquidity risk and higher coststhan owning the underlying securities directly because of theirmanagement fees. Shares of CEFs are subject to market tradingrisk, potentially trading at a premium or discount to net asset

value.

Commodity: Investments in commodity-related instruments aresubject to the risk that the performance of the overallcommodities market declines and that weather, disease,political, tax, and other regulatory developments adverselyimpact the value of commodities, which may result in a loss ofprincipal and interest. Commodity-linked investments faceincreased price volatility and liquidity, credit, and issuer riskscompared with their underlying measures.

Compounding: Because the investment is managed to replicatea multiple or inverse multiple of an index over a single day (orsimilar short-term period), returns for periods longer than oneday will generally reflect performance that is greater or lessthan the target in the objective because of compounding. Theeffect of compounding increases during times of higher indexvolatility, causing long-term results to further deviate from thetarget objective.

Conflict of Interest: A conflict of interest may arise if the advisormakes an investment in certain underlying funds based on thefact that those funds are also managed by the advisor or anaffiliate or because certain underlying funds may pay higher feesto the advisor do than others. In addition, an advisor'sparticipation in the primary or secondary market for loans maybe deemed a conflict of interest and limit the ability of theinvestment to acquire those assets.

Convertible Securities: Investments in convertible securitiesmay be subject to increased interest-rate risks, rising in valueas interest rates decline and falling in value when interest ratesrise, in addition to their market value depending on theperformance of the common stock of the issuer. Convertiblesecurities, which are typically unrated or rated lower than otherdebt obligations, are secondary to debt obligations in order ofpriority during a liquidation in the event the issuer defaults.

Country or Region: Investments in securities from a particularcountry or region may be subject to the risk of adverse social,political, regulatory, or economic events occurring in thatcountry or region. Country- or region-specific risks also includethe risk that adverse securities markets or exchange rates mayimpact the value of securities from those areas.

Credit and Counterparty: The issuer or guarantor of a fixed-income security, counterparty to an OTC derivatives contract,or other borrower may not be able to make timely principal,interest, or settlement payments on an obligation. In this event,the issuer of a fixed-income security may have its credit ratingdowngraded or defaulted, which may reduce the potential forincome and value of the portfolio.

Credit Default Swaps: Credit default swaps insure the buyer inthe event of a default of a fixed-income security. The seller ofa credit default swap receives premiums and is obligated torepay the buyer in the event of a default of the underlyingcreditor. Investments in credit default swaps may be subject toincreased counterparty, credit, and liquidity risks.

Currency: Investments in securities traded in foreign currenciesor more directly in foreign currencies are subject to the risk thatthe foreign currency will decline in value relative to the U.S.dollar, which may reduce the value of the portfolio. Investmentsin currency hedging positions are subject to the risk that thevalue of the U.S. dollar will decline relative to the currency beinghedged, which may result in a loss of money on the investment

as well as the position designed to act as a hedge. Cross-currency hedging strategies and active currency positions mayincrease currency risk because actual currency exposure maybe substantially different from that suggested by the portfolio'sholdings.

Custody: Foreign custodial and other foreign financial servicesare generally more expensive than they are in the United Statesand may have limited regulatory oversight. The investment mayhave trouble clearing and settling trades in less-developedmarkets, and the laws of some countries may limit theinvestment's ability to recover its assets in the event the bank,depository, or agent holding those assets goes intobankruptcy.

Depositary Receipts: Investments in depositary receiptsgenerally reflect the risks of the securities they represent,although they may be subject to increased liquidity risk andhigher expenses and may not pass through voting and othershareholder rights. Depositary receipts cannot be directlyexchanged for the securities they represent and may trade ateither a discount or premium to those securities.

Derivatives: Investments in derivatives may be subject to therisk that the advisor does not correctly predict the movementof the underlying security, interest rate, market index, or otherfinancial asset, or that the value of the derivative does notcorrelate perfectly with either the overall market or theunderlying asset from which the derivative's value is derived.Because derivatives usually involve a small investment relativeto the magnitude of liquidity and other risks assumed, theresulting gain or loss from the transaction will bedisproportionately magnified. These investments may result ina loss if the counterparty to the transaction does not performas promised.

Distressed Investments: Investments in distressed or defaultedinvestments, which may include loans, loan participations,bonds, notes, and issuers undergoing bankruptcy organization,are often not publicly traded and face increased price volatilityand liquidity risk. These securities are subject to the risk thatthe advisor does not correctly estimate their future value, whichmay result in a loss of part or all of the investment.

Dollar Rolls: Dollar rolls transactions may be subject to the riskthat the market value of securities sold to the counterpartydeclines below the repurchase price, the counterparty defaultson its obligations, or the portfolio turnover rate increasesbecause of these transactions. In addition, any investmentspurchased with the proceeds of a security sold in a dollar rollstransaction may lose value.

Early Close/Late Close/Trading Halt: The investment may beunable to rebalance its portfolio or accurately price its holdingsif an exchange or market closes early, closes late, or issuestrading halts on specific securities or restricts the ability to buyor sell certain securities or financial instruments. Any of thesescenarios may cause the investment to incur substantial tradinglosses.

Emerging Markets: Investments in emerging- and frontier-markets securities may be subject to greater market, credit,currency, liquidity, legal, political, and other risks compared withassets invested in developed foreign countries.

Equity Securities: The value of equity securities, which includecommon, preferred, and convertible preferred stocks, will



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fluctuate based on changes in their issuers' financial conditions,as well as overall market and economic conditions, and candecline in the event of deteriorating issuer, market, or economicconditions.

ETF: Investments in exchange-traded funds generally reflect therisks of owning the underlying securities they are designed totrack, although they may be subject to greater liquidity risk andhigher costs than owning the underlying securities directlybecause of their management fees. Shares of ETFs are subjectto market trading risk, potentially trading at a premium ordiscount to net asset value.

ETN: Investments in exchange-traded notes may be subject tothe risk that their value is reduced because of poor performanceof the underlying index or a downgrade in the issuer's creditrating, potentially resulting in default. The value of thesesecurities may also be impacted by time to maturity, level ofsupply and demand, and volatility and lack of liquidity inunderlying markets, among other factors. The portfolio bearsits proportionate share of fees and expenses associated withinvestment in ETNs, and its decision to sell these holdings maybe limited by the availability of a secondary market.

Event-Driven Investment/Arbitrage Securities: Arbitragestrategies involve investment in multiple securities with theexpectation that their prices will converge at an expected value.These strategies face the risk that the advisor's price predictionswill not perform as expected. Investing in event-driven ormerger arbitrage strategies may not be successful if themerger, restructuring, tender offer, or other major corporateevent proposed or pending at the time of investment is notcompleted on the terms contemplated.

Extension: The issuer of a security may repay principal moreslowly than expected because of rising interest rates. In thisevent, short- and medium-duration securities are effectivelyconverted into longer-duration securities, increasing theirsensitivity to interest-rate changes and causing their prices todecline.

Financials Sector: Concentrating assets in the financials sectormay disproportionately subject the portfolio to the risks of thatindustry, including loss of value because of economic recession,availability of credit, volatile interest rates, governmentregulation, and other factors.

Fixed Income Securities: The value of fixed-income or debtsecurities may be susceptible to general movements in thebond market and are subject to interest-rate and credit risk.

Foreign Securities: Investments in foreign securities may besubject to increased volatility as the value of these securitiescan change more rapidly and extremely than can the value ofU.S. securities. Foreign securities are subject to increasedissuer risk because foreign issuers may not experience thesame degree of regulation as U.S. issuers do and are held todifferent reporting, accounting, and auditing standards. Inaddition, foreign securities are subject to increased costsbecause there are generally higher commission rates ontransactions, transfer taxes, higher custodial costs, and thepotential for foreign tax charges on dividend and interestpayments. Many foreign markets are relatively small, andsecurities issued in less-developed countries face the risks ofnationalization, expropriation or confiscatory taxation, andadverse changes in investment or exchange control regulations,including suspension of the ability to transfer currency from a

country. Economic, political, social, or diplomatic developmentscan also negatively impact performance.

Forwards: Investments in forwards may increase volatility andbe subject to additional market, active management, currency,and counterparty risks as well as liquidity risk if the contractcannot be closed when desired. Forwards purchased on awhen-issued or delayed-delivery basis may be subject to riskof loss if they decline in value prior to delivery, or if thecounterparty defaults on its obligation.

Futures: Investments in futures contracts and options on futurescontracts may increase volatility and be subject to additionalmarket, active management, interest, currency, and other risksif the contract cannot be closed when desired.

Growth Investing: Growth securities may be subject toincreased volatility as the value of these securities is highlysensitive to market fluctuations and future earningsexpectations. These securities typically trade at highermultiples of current earnings than do other securities and maylose value if it appears their earnings expectations may not bemet.

Hedging Strategies: The advisor's use of hedging strategies toreduce risk may limit the opportunity for gains compared withunhedged investments, and there is no guarantee that hedgeswill actually reduce risk.

High Portfolio Turnover: Active trading may create high portfolioturnover, or a turnover of 100% or more, resulting in increasedtransaction costs. These higher costs may have an adverseimpact on performance and generate short-term capital gains,creating potential tax liability even if an investor does not sellany shares during the year.

High Yield Securities: Investments in below-investment-gradedebt securities and unrated securities of similar credit quality,commonly known as "junk bonds" or "high-yield securities," maybe subject to increased interest, credit, and liquidity risks.

Income: The investment's income payments may declinedepending on fluctuations in interest rates and the dividendpayments of its underlying securities. In this event, someinvestments may attempt to pay the same dividend amount byreturning capital.

Increase in Expenses: The actual cost of investing may be higherthan the expenses listed in the expense table for a variety ofreasons, including termination of a voluntary fee waiver or losingportfolio fee breakpoints if average net assets decrease. Therisk of expenses increasing because of a decrease in averagenet assets is heightened when markets are volatile.

Index Correlation/Tracking Error: A portfolio that tracks an indexis subject to the risk that certain factors may cause the portfolioto track its target index less closely, including if the advisorselects securities that are not fully representative of the index.The portfolio will generally reflect the performance of its targetindex even if the index does not perform well, and it mayunderperform the index after factoring in fees, expenses,transaction costs, and the size and timing of shareholderpurchases and redemptions.

Industry and Sector Investing: Concentrating assets in aparticular industry, sector of the economy, or markets mayincrease volatility because the investment will be more

susceptible to the impact of market, economic, regulatory, andother factors affecting that industry or sector compared with amore broadly diversified asset allocation.

Inflation/Deflation: A change of asset value may occur becauseof inflation or deflation, causing the portfolio to underperform.Inflation may cause the present value of future payments todecrease, causing a decline in the future value of assets orincome. Deflation causes prices to decline throughout theeconomy over time, impacting issuers' creditworthiness andincreasing their risk for default, which may reduce the value ofthe portfolio.

Inflation-Protected Securities: Unlike other fixed-incomesecurities, the values of inflation-protected securities are notsignificantly impacted by inflation expectations because theirinterest rates are adjusted for inflation. Generally, the value ofinflation-protected securities will fall when real interest ratesrise and rise when real interest rates fall.

Interest Rate: Most securities are subject to the risk thatchanges in interest rates will reduce their market value.

Intraday Price Performance: The investment is rebalancedaccording to the investment objective at the end of the tradingday, and its reported performance will reflect the closing netasset value. A purchase at the intraday price may generateperformance that is greater or less than reportedperformance.

Inverse Floaters: Investments in inverse floaters may be subjectto increased price volatility compared with fixed-rate bonds thathave similar credit quality, redemption provisions, and maturity.The performance of inverse floaters tends to lag fixed-ratebonds in rising long-term interest-rate environments andexceed them in falling or stable long-term interest-rateenvironments.

Investment-Grade Securities: Investments in investment-gradedebt securities that are not rated in the highest rating categoriesmay lack the capacity to pay principal and interest comparedwith higher-rated securities and may be subject to increasedcredit risk.

IPO: Investing in initial public offerings may increase volatilityand have a magnified impact on performance. IPO shares maybe sold shortly after purchase, which can increase portfolioturnover and expenses, including commissions and transactioncosts. Additionally, IPO shares are subject to increased market,liquidity, and issuer risks.

Issuer: A stake in any individual security is subject to the riskthat the issuer of that security performs poorly, resulting in adecline in the security's value. Issuer-related declines may becaused by poor management decisions, competitive pressures,technological breakthroughs, reliance on suppliers, laborproblems or shortages, corporate restructurings, fraudulentdisclosures, or other factors. Additionally, certain issuers maybe more sensitive to adverse issuer, political, regulatory,market, or economic developments.

Large Cap: Concentrating assets in large-capitalization stocksmay subject the portfolio to the risk that those stocksunderperform other capitalizations or the market as a whole.Large-cap companies may be unable to respond as quickly assmall- and mid-cap companies can to new competitivepressures and may lack the growth potential of those securities.



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Historically, large-cap companies do not recover as quickly assmaller companies do from market declines.

Lending: Investing in loans creates risk for the borrower, lender,and any other participants. A borrower may fail to makepayments of principal, interest, and other amounts inconnection with loans of cash or securities or fail to return aborrowed security in a timely manner, which may lead toimpairment of the collateral provided by the borrower.Investments in loan participations may be subject to increasedcredit, pricing, and liquidity risks, with these risks intensified forbelow investment-grade loans.

Leverage: Leverage transactions may increase volatility andresult in a significant loss of value if a transaction fails. Becauseleverage usually involves investment exposure that exceeds theinitial investment, the resulting gain or loss from a relativelysmall change in an underlying indicator will bedisproportionately magnified.

Long-term Outlook and Projections: The investment is intendedto be held for a substantial period of time, and investors shouldtolerate fluctuations in their investment's value.

Loss of Money: Because the investment's market value mayfluctuate up and down, an investor may lose money, includingpart of the principal, when he or she buys or sells theinvestment.

Management: Performance is subject to the risk that theadvisor's asset allocation and investment strategies do notperform as expected, which may cause the portfolio tounderperform its benchmark, other investments with similarobjectives, or the market in general. The investment is subjectto the risk of loss of income and capital invested, and the advisordoes not guarantee its value, performance, or any particularrate of return.

Market Trading: Because shares of the investment are tradedon the secondary market, investors are subject to the risks thatshares may trade at a premium or discount to net asset value.There is no guarantee that an active trading market for theseshares will be maintained.

Market/Market Volatility: The market value of the portfolio'ssecurities may fall rapidly or unpredictably because of changingeconomic, political, or market conditions, which may reducethe value of the portfolio.

Master/Feeder: The portfolio is subject to unique risks relatedto the master/feeder structure. Feeder funds bear theirproportionate share of fees and expenses associated withinvestment in the master fund. The performance of a feederfund can be impacted by the actions of other feeder funds,including if a larger feeder fund maintains voting control overthe operations of the master fund or if large-scale redemptionsby another feeder fund increase the proportionate share of costsof the master fund for the remaining feeder funds.

Maturity/Duration: Securities with longer maturities ordurations typically have higher yields but may be subject toincreased interest-rate risk and price volatility compared withsecurities with shorter maturities, which have lower yields butgreater price stability.

Mid-Cap: Concentrating assets in mid-capitalization stocks maysubject the portfolio to the risk that those stocks underperform

other capitalizations or the market as a whole. Mid-capcompanies may be subject to increased liquidity risk comparedwith large-cap companies and may experience greater pricevolatility than do those securities because of more-limitedproduct lines or financial resources, among other factors.

MLP: Investments in master limited partnerships may besubject to the risk that their value is reduced because of poorperformance of the underlying assets or if they are not treatedas partnerships for federal income tax purposes. Investors inMLPs have more-limited control and voting rights on mattersaffecting the partnership compared with shareholders ofcommon stock.

Money Market: The risks pertaining to money market funds,those in compliance with Rule 2a-7 under the InvestmentCompany Act of 1940, vary depending on the fund’s operationsas reported in SEC Form N-MFP. Institutional money marketfunds are considered those that are required to transact at afloating net asset value. These funds can experience capitalgains and losses in normal conditions just like other mutualfunds. Additionally, most institutional, government, and retailmoney market funds may impose a fee upon the sale of yourshares, or may suspend your ability to sell shares if the fund'sliquidity falls below required minimums, because of marketconditions or other factors. While retail and government fundselecting to maintain liquidity through suspending redemptionsor imposing fees attempt to preserve the value of shares at$1.00, the funds cannot guarantee they will do so. Somegovernment money market funds have not elected to permitliquidity fees or suspend redemptions. Although these fundsalso seek to preserve the value of investments at $1.00 pershare, they cannot guarantee they will do so. An investment inany money market fund is not insured or guaranteed by theFederal Deposit Insurance Corporation or any other governmentagency and can result in a loss of money. The fund's sponsorhas no legal obligation to provide financial support to the fund,and you should not expect that the sponsor will provide financialsupport to the fund at any time.

Money Market Fund Ownership: An investment in a moneymarket fund is not a deposit in a bank and is not guaranteed bythe FDIC, any other governmental agency, or the advisor itself.Money market funds report investment characteristics in SECForm N-MFP. Institutional money market funds have a net assetvalue that may fluctuate on a day-to-day basis in ordinaryconditions. All are subject to the risk that they may not be ableto maintain a stable NAV of $1.00 per share. Money marketfunds may opt to maintain liquidity through imposing fees oncertain redemptions or a suspension of redemptions becauseof market conditions. Only exempt government money marketfunds are permitted to opt out of incorporating these liquiditymaintenance measures to support the stable share price of$1.00.

Mortgage-Backed and Asset-Backed Securities: Investmentsin mortgage-backed and asset-backed securities may besubject to increased price volatility because of changes ininterest rates, issuer information availability, credit quality ofthe underlying assets, market perception of the issuer,availability of credit enhancement, and prepayment of principal.The value of ABS and MBS may be adversely affected if theunderlying borrower fails to pay the loan included in thesecurity.

Multimanager: Managers' individual investing styles may notcomplement each other. This can result in both higher portfolio

turnover and enhanced or reduced concentration in a particularregion, country, industry, or investing style compared with aninvestment with a single manager.

Municipal Obligations, Leases, and AMT-Subject Bonds:Investments in municipal obligations, leases, and privateactivity bonds subject to the alternative minimum tax havevarying levels of public and private support. The principal andinterest payments of general-obligation municipal bonds aresecured by the issuer's full faith and credit and supported bylimited or unlimited taxing power. The principal and interestpayments of revenue bonds are tied to the revenues of specificprojects or other entities. Federal income tax laws may limit thetypes and volume of bonds qualifying for tax exemption ofinterest and make any further purchases of tax-exemptsecurities taxable.

Municipal Project-Specific: Investments in municipal bonds thatfinance similar types of projects, including those related toeducation, health care, housing, transportation, utilities, andindustry, may be subject to a greater extent than generalobligation municipal bonds to the risks of adverse economic,business, or political developments.

New Fund: Investments with a limited history of operations maybe subject to the risk that they do not grow to an economicallyviable size in order to continue operations.

Nondiversification: A nondiversified investment, as definedunder the Investment Act of 1940, may have an increasedpotential for loss because its portfolio includes a relatively smallnumber of investments. Movements in the prices of theindividual assets may have a magnified effect on anondiversified portfolio. Any sale of the investment's largepositions could adversely affect stock prices if those positionsrepresent a significant part of a company's outstanding stock.

Not FDIC Insured: The investment is not a deposit or obligationof, or guaranteed or endorsed by, any bank and is not insuredby the Federal Deposit Insurance Corporation, the FederalReserve Board, or any other U.S. governmental agency.

Options: Investments in options may be subject to the risk thatthe advisor does not correctly predict the movement of anoption's underlying stock. Option purchases may result in theloss of part or all of the amount paid for the option pluscommission costs. Option sales may result in a forced sale orpurchase of a security at a price higher or lower than its currentmarket price.

OTC: Investments traded and privately negotiated in the over-the-counter market, including securities and derivatives, maybe subject to greater price volatility and liquidity risk thantransactions made on organized exchanges. Because the OTCmarket is less regulated, OTC transactions may be subject toincreased credit and counterparty risk.

Other: The investment's performance may be impacted by itsconcentration in a certain type of security, adherence to aparticular investing strategy, or a unique aspect of its structureand costs

Passive Management: The investment is not actively managed,and the advisor does not attempt to manage volatility or takedefensive positions in declining markets. This passivemanagement strategy may subject the investment to greaterlosses during general market declines than actively managed



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investments.

Portfolio Diversification: Investments that concentrate theirassets in a relatively small number of issuers, or in the securitiesof issuers in a particular market, industry, sector, country, orasset class, may be subject to greater risk of loss than is a morewidely diversified investment.

Preferred Stocks: Investments in preferred stocks may besubject to the risks of deferred distribution payments,involuntary redemptions, subordination to debt instruments, alack of liquidity compared with common stocks, limited votingrights, and sensitivity to interest-rate changes.

Prepayment (Call): The issuer of a debt security may be able torepay principal prior to the security's maturity because of animprovement in its credit quality or falling interest rates. In thisevent, this principal may have to be reinvested in securities withlower interest rates than the original securities, reducing thepotential for income.

Pricing: Some investments may not have a market observedprice; therefore, values for these assets may be determinedthrough a subjective valuation methodology. Fair valuesdetermined by a subjective methodology may differ from theactual value realized upon sale. Valuation methodologies mayalso be used to calculate a daily net asset value.

Quantitative Investing: Holdings selected by quantitativeanalysis may perform differently from the market as a wholebased on the factors used in the analysis, the weighting of eachfactor, and how the factors have changed over time.

Real Estate/REIT Sector: Concentrating assets in the real estatesector or REITs may disproportionately subject the portfolio tothe risks of that industry, including loss of value because ofchanges in real estate values, interest rates, and taxes, as wellas changes in zoning, building, environmental, and other laws,among other factors. Investments in REITs may be subject toincreased price volatility and liquidity risk, and shareholdersindirectly bear their proportionate share of expenses becauseof their management fees.

Regulation/Government Intervention: The business of the issuerof an underlying security may be adversely impacted by newregulation or government intervention, impacting the price ofthe security. Direct government ownership of distressed assetsin times of economic instability may subject the portfolio'sholdings to increased price volatility and liquidity risk.

Reinvestment: Payments from debt securities may have to bereinvested in securities with lower interest rates than theoriginal securities.

Reliance on Trading Partners: Investments in economies thatdepend heavily on trading with key partners may be subject tothe risk that any reduction in this trading may adversely impactthese economies.

Replication Management: The investment does not seekinvestment returns in excess of the underlying index. Therefore,it will not generally sell a security unless it was removed fromthe index, even if the security's issuer is in financial trouble.

Repurchase Agreements: Repurchase agreements may besubject to the risk that the seller of a security defaults and thecollateral securing the repurchase agreement has declined and

does not equal the value of the repurchase price. In this event,impairment of the collateral may result in additional costs.

Restricted/Illiquid Securities: Restricted and illiquid securitiesmay fall in price because of an inability to sell the securitieswhen desired. Investing in restricted securities may subject theportfolio to higher costs and liquidity risk.

Sampling: Although the portfolio tracks an index, it maintains asmaller number of holdings than does the index. Use of thisrepresentative sampling approach may lead the portfolio totrack the index less closely.

Shareholder Activity: Frequent purchases or redemptions byone or multiple investors may harm other shareholders byinterfering with the efficient management of the portfolio,increasing brokerage and administrative costs and potentiallydiluting the value of shares. Additionally, shareholder purchaseand redemption activity may have an impact on the per-sharenet income and realized capital gains distribution amounts, ifany, potentially increasing or reducing the tax burden on theshareholders who receive those distributions.

Short Sale: Selling securities short may be subject to the riskthat an advisor does not correctly predict the movement of thesecurity, resulting in a loss if a security must be purchased onthe market above its initial borrowing price to return to thelender, in addition to interest paid to the lender for borrowingthe security.

Small Cap: Concentrating assets in small-capitalization stocksmay subject the portfolio to the risk that those stocksunderperform other capitalizations or the market as a whole.Smaller, less-seasoned companies may be subject to increasedliquidity risk compared with mid- and large-cap companies andmay experience greater price volatility than do those securitiesbecause of limited product lines, management experience,market share, or financial resources, among other factors.

Socially Conscious: Adhering to social, moral, or environmentalcriteria may preclude potentially profitable opportunities insectors or firms that would otherwise be consistent with theinvestment objective and strategy.

Sovereign Debt: Investments in debt securities issued orguaranteed by governments or governmental entities aresubject to the risk that an entity may delay or refuse to payinterest or principal on its sovereign debt because of cash flowproblems, insufficient foreign reserves, or political or otherconsiderations. In this event, there may be no legal process forcollecting sovereign debts that a governmental entity has notrepaid.

Structured Products: Investments in structured products maybe more volatile, less liquid, and more difficult to price thanother assets. These securities bear the risk of the underlyinginvestment as well as counterparty risk. Securitized structuredproducts including CMOs, CDOs, and other securitized productsmay increase volatility and be subject to increased liquidity andpricing risks compared with investing directly in the assetssecuritized within the product. Assets invested in structuredproducts may be subject to full loss of value if the counterpartydefaults on its obligation.

Suitability: Investors are expected to select investments whoseinvestment strategies are consistent with their financial goalsand risk tolerance.

Swaps: Investments in swaps, such as interest-rate swaps,currency swaps and total return swaps, may increase volatilityand be subject to increased liquidity, credit, and counterpartyrisks. Depending on their structure, swaps may increase ordecrease the portfolio's exposure to long- or short-term interestrates, foreign currency values, corporate borrowing rates,security prices, index values, inflation rates, credit, or otherfactors.

Target Date: Target-date funds, also known as lifecycle funds,shift their asset allocation to become increasingly conservativeas the target retirement year approaches. Still, investment intarget-date funds may lose value near, at, or after the targetretirement date, and there is no guarantee they will provideadequate income at retirement.

Tax Management: A tax-sensitive investment strategy thatuses hedging or other techniques may fail to limit distributionsof taxable income and net realized gains and therefore createsome tax liability for shareholders.

Tax Risk: Investors may be liable to pay state and federal taxeson income and capital gains distributions paid out by theinvestment.

Tax-Exempt Securities: Tax-exempt securities could bereclassified as taxable by the IRS or a state tax authority, ortheir income could be reclassified as taxable by a futurelegislative, administrative, or court action. This may result inincreased tax liability as interest from a security becomestaxable, and such reclassifications could be appliedretroactively.

Technology Sector: Concentrating assets in the technologysector may disproportionately subject the portfolio to the risksof that industry, including loss of value because of intensecompetitive pressures, short product cycles, dependence onintellectual property rights, legislative or regulatory changes,and other factors.

Temporary Defensive Measures: Temporary defensivepositions may be used during adverse economic, market, orother conditions. In this event, up to 100% of assets may beallocated to securities, including cash and cash equivalents thatare normally not consistent with the investment objective.

U.S. Federal Tax Treatment: Changes in the tax treatment ofdividends, derivatives, foreign transactions, and other securitiesmay have an impact on performance and potentially increaseshareholder liability. Additionally, this includes the risk that thefund fails to qualify as a regulated investment company,potentially resulting in a significantly higher level of taxation.

U.S. Government Obligations: Investments in U.S. governmentobligations are subject to varying levels of government support.In the event of default, some U.S. government securities,including U.S. Treasury obligations and Ginnie Mae securities,are issued and guaranteed as to principal and interest by thefull faith and credit of the U.S. government. Other securities areobligations of U.S. government-sponsored entities but areneither issued nor guaranteed by the U.S. government.

U.S. State or Territory-Specific: Investments in the municipalsecurities of a particular state or territory may be subject to therisk that changes in the economic conditions of that state orterritory will negatively impact performance.



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Underlying Fund/Fund of Funds: A portfolio's risks are closelyassociated with the risks of the securities and otherinvestments held by the underlying or subsidiary funds, and theability of the portfolio to meet its investment objective likewisedepends on the ability of the underlying funds to meet theirobjectives. Investment in other funds may subject the portfolioto higher costs than owning the underlying securities directlybecause of their management fees.

Unrated Securities: Investments in unrated securities may besubject to increased interest, credit, and liquidity risks if theadvisor does not accurately assess the quality of thosesecurities.

Valuation Time: Net asset value is not calculated on days andtimes when the U.S. exchange is closed, though foreign securityholdings may still be traded. In this event, the net asset valuemay be significantly impacted when shareholders are not ableto buy or sell shares. Conversely, performance may vary fromthe index if the NAV is calculated on days and times whenforeign exchanges are closed.

Value Investing: Value securities may be subject to the risk thatthese securities cannot overcome the adverse factors theadvisor believes are responsible for their low price or that themarket may not recognize their fundamental value as theadvisor predicted. Value securities are not expected toexperience significant earnings growth and may underperformgrowth stocks in certain markets.

Variable-Rate Securities: Investments in variable-ratesecurities, which periodically adjust the interest-rate paid onthe securities, may be subject to greater liquidity risk than areother fixed-income securities. Because variable-rate securitiesare subject to less interest-rate risk than other fixed-incomesecurities, their opportunity to provide capital appreciation iscomparatively reduced.

Warrants: Investments in warrants may be subject to the riskthat the price of the underlying stock does not rise above theexercise price. In this event, the warrant may expire withoutbeing exercised and lose all value.

Zero-Coupon Bond: Investments in zero-coupon bonds, whichdo not pay interest prior to maturity, may be subject to greaterprice volatility and liquidity risks than are fixed-income securitiesthat pay interest periodically. Still, interest accrued on thesesecurities prior to maturity is reported as income and distributedto shareholders.



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