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February 2004
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| The State of Connecticut 403(b) Program | ||
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Welcome to the first online issue of "Dollar Wise" ! These quarterly newsletters will no longer be mailed to your home, so be sure to keep an eye out for these online versions. In this issue, we will focus on a very important advantage of saving through plans like the State of Connecticut 403(b) Program called "dollar cost averaging." To learn more about this investment concept, and how it can benefit you, please read on. |
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Nancy Wyman State Comptroller |
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| How it Can Work for You | |
| Dollar cost averaging is an investment strategy that can help protect investors against market risk. When you contribute to the State of Connecticut 403(b) Program, you invest a fixed amount of money at regular intervals through payroll deductions. When you invest in this manner, you buy more shares when the price is low and fewer shares when the price is high. Over time, this approach smoothes out price fluctuations in the share price. As a result, you don't have to try to "time" the market - that is, buy when share prices are low and sell when they are high. Timing the market is very difficult to do effectively, even for experienced investors. |  |
| Keep in mind that the maximum annual contribution limit for 2004 is $13,000, so you may want to consider increasing your Program contributions. Also, if you will be at least age 50 by December 31, 2004, you may be eligible to contribute an extra $3,000 in Special Age 50 Catch-Up Contributions. |
As a participant in the State Program, you automatically use dollar cost averaging because you are investing the same amount of money in the Program each pay period. To see how this investment method benefits you, let's look at two examples. In the first example, you don't use dollar cost averaging. Instead, you purchase 100 shares on the 15th day of every month for 12 months. At the end of the year you would have 1,200 shares at an average price per share of $4, as shown below.
Let's look at what happens if you invest the same amount of money over the
same period of time using dollar cost averaging. If you invest the same amount
of money over 12 months, you would invest $400 per month ($4,800 divided by 12).
Using dollar cost averaging, the average price per share is $3.49. For the same
$4,800 per year, you purchased 177 more shares!
| Without Dollar Cost Averaging | With Dollar Cost Averaging | ||||
|---|---|---|---|---|---|
| Date | Price/Share | Shares Purchased | Cost | Shares Purchased | Cost |
| January 15 | $ 2 | 100 | $ 200 | 200 | $ 400 |
| February 15 | $ 4 | 100 | $ 400 | 100 | $ 400 |
| March 15 | $ 3 | 100 | $ 300 | 133 | $ 400 |
| April 15 | $ 5 | 100 | $ 500 | 80 | $ 400 |
| May 15 | $ 4 | 100 | $ 400 | 100 | $ 400 |
| June 15 | $ 3 | 100 | $ 300 | 133 | $ 400 |
| July 15 | $ 5 | 100 | $ 500 | 80 | $ 400 |
| August 15 | $ 7 | 100 | $ 700 | 57 | $ 400 |
| September 15 | $ 5 | 100 | $ 500 | 80 | $ 400 |
| October 15 | $ 2 | 100 | $ 200 | 200 | $ 400 |
| November 15 | $ 5 | 100 | $ 500 | 80 | $ 400 |
| December 15 | $ 3 | 100 | $ 300 | 133 | $ 400 |
| Total | 1,200 | $4,800 | 1,377 * | $4,800 | |
| Average Price Per Share | $ 4.00 | $ 3.49 | |||
* Shares have been rounded.
Dollar cost averaging can be a valuable investment strategy because it eliminates subjective decisions about when is the "best" time to buy a particular stock or other investment. In addition, as shown in this example, dollar cost averaging can help reduce the average price you pay per share over time.
Fund Changes
The following funds will be replaced in the near future:
If you invest in any of these funds, you will receive more information from your financial services organization (fso). If you have any questions, please contact your fso directly at the numbers provided below.
| Financial Services Organization | Contact Number | Website Address |
|---|---|---|
| Fidelity Investments | (800) 343-0860 | www.fidelity.com |
| The Hartford |
(800) 243-5868 press option 1 | www.retire.hartfordlife.com |
| ING Financial Advisers, LLC | (800) 784-6386 | www.ingretirementplans.com |
| Oldham Resource Group | (800) 626-6106 | www.oldham-mutual.com |
| TIAA-CREF |
(888) 842-5350 on weekdays |
www.tiaa-cref.org |
|
(800) 842-2888 on weekends |
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| Travelers Life & Annuity | (800) 842-4015 | www.travelerslife.com |
| Important Note: The information presented in this newsletter is not intended as investment advice. Its purpose is to help you understand the investment choices available through the State of Connecticut 403(b) Program. Your financial strategy and investment choices are entirely your own and should reflect your personal needs and circumstances. |
| State of Connecticut personnel, including the Human Resources Department staff, cannot provide investment advice. For more information, you may want to consult with a professional financial advisor. |
| The investment information shown is current as of December 31, 2003. |
Comparison of Investment Options for
the Connecticut 403(b) Program
Performance and Expenses as of December 31, 2003
| F I D E L I T Y I N V E S T M E N T S | ||||||||
|---|---|---|---|---|---|---|---|---|
|
Return on Investments (net of expenses)* |
Operating Expenses | |||||||
|
Level of Risk |
Investment Options |
10/1/03 - 12/31/03 |
1 Year |
Annualized 3 Years |
Admin./ M&E |
Manage- ment Fees |
Other Expenses |
Total Expenses |
| Low | Fidelity Retirement Money Market** | 0.19% | 0.89% | 2.16% | 0.000% | 0.420% | 0.000% | 0.420% |
| 91-Day Treasury Bills | 0.23% | 1.01% | 1.97% | |||||
| Fidelity U.S. Bond Index Fund** | 0.54% | 4.91% | 7.72% | 0.000% | 0.320% | 0.000% | 0.320% | |
| LB Aggregate Bond Index | 0.32% | 4.10% | 7.57% | |||||
| Medium | Fidelity Balanced | 9.94% | 28.24% | 6.26% | 0.000% | 0.440% | 0.260% | 0.700% |
| Fidelity Puritan | 10.17% | 22.20% | 3.65% | 0.000% | 0.440% | 0.220% | 0.660% | |
| 60% S&P 500 + 40% LBAGG Index | 7.34% | 18.47% | 0.95% | |||||
| Fidelity Capital & Income | 6.56% | 39.13% | 9.73% | 0.000% | 0.540% | 0.250% | 0.790% | |
| ML US High Yield Master Trust II | 5.94% | 28.15% | 9.52% | |||||
| Fidelity Equity-Income | 14.38% | 29.96% | 0.75% | 0.000% | 0.480% | 0.240% | 0.720% | |
| Russell 3000 Value Index | 14.35% | 31.14% | 2.09% | |||||
| Fidelity Growth & Income | 9.33% | 19.01% | - 4.03% | 0.000% | 0.490% | 0.240% | 0.730% | |
| S&P 500 Index | 12.17% | 28.67% | - 4.05% | |||||
| High | Fidelity Blue Chip Growth | 9.61% | 24.80% | - 8.04% | 0.000% | 0.440% | 0.270% | 0.710% |
| Fidelity Independence | 9.88% | 23.66% | - 8.84% | 0.000% | 0.470% | 0.220% | 0.690% | |
| Russell 1000 Growth Index | 10.41% | 29.75% | - 9.36% | |||||
| Fidelity Contrafund | 11.34% | 27.95% | 0.36% | 0.000% | 0.810% | 0.220% | 1.030% | |
| Fidelity Dividend Growth | 10.19% | 23.36% | - 1.88% | 0.000% | 0.780% | 0.270% | 1.050% | |
| Fidelity Magellan | 10.85% | 24.82% | - 5.58% | 0.000% | 0.560% | 0.210% | 0.770%> | |
| Fidelity Spartan U.S. Equity Index** | 12.14% | 28.50% | - 4.20% | 0.000% | 0.190% | 0.000% | 0.190% | |
| S&P 500 Index | 12.17% | 28.67% | - 4.05% | |||||
| Fidelity Diversified International | 15.19% | 42.38% | 3.93% | 0.000% | 0.900% | 0.340% | 1.240% | |
| MS EAFE Index | 17.11% | 39.17% | - 2.57% | |||||
| Fidelity Growth Company | 9.54% | 41.36% | - 11.10% | 0.000% | 0.550% | 0.280% | 0.830% | |
| Russell 3000 Growth Index | 10.58% | 30.97% | - 8.84% | |||||
| Fidelity Low-Priced Stock | 13.88% | 40.85% | 18.74% | 0.000% | 0.770% | 0.260% | 1.030% | |
| Russell 2000 Value Index | 16.37% | 46.03% | 13.83% | |||||
| Fidelity Mid-Cap Stock | 12.26% | 33.26% | - 5.60% | 0.000% | 0.450% | 0.240% | 0.690% | |
| Russell Midcap Index | 13.97% | 40.06% | 3.47% | |||||
| Fidelity New Millennium | 13.35% | 37.31% | - 3.43% | 0.000% | 0.580% | 0.220% | 0.800% | |
| Russell Midcap Growth Index | 12.16% | 42.71% | - 6.13% | |||||
| Fidelity Small Cap Stock | 17.30% | 45.04% | 9.17% | 0.000% | 0.810% | 0.320% | 1.130% | |
| Russell 2000 Index | 14.52% | 47.25% | 6.27% | |||||
| Fidelity Value | 14.26% | 34.43% | 11.05% | 0.000% | 0.740% | 0.260% | 1.000% | |
| Russell Midcap Value Index | 15.22% | 38.07% | 8.48% | |||||
Asset transfer provision for transfer of assets from other carrier: none
The Fidelity Capital & Income, Mid-Cap Stock, Low-Priced Stock, Small Cap Stock and Diversified International funds may charge a short-term trading fee.
The Low-Priced Stock fund charges 1.50% on shares held less than 90 days, the Small Cap Stock fund charges 2.00% on shares held less than 90 days and the Diversified International fund charges 1.00% on shares held less than 30 days.
* In accordance with the requirements of the operating provisions of the 403(b) Program, Fidelity Investments will deduct a quarterly fee to all accounts on file beginning fourth quarter 2002. The purpose of this fee is to pay expenses associated with the 403(b) Program's limited scope third party administrator.
** FMR Co. has voluntarily agreed to reimburse shareholders a portion of the funds' management fee. This agreement can be terminated at any time. Without this reimbursement, each fund's yield would have been lower.
Although the information contained above has been carefully verified, its accuracy cannot be guaranteed. All numbers are unaudited.
| T H E H A R T F O R D | ||||||||
|---|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses)* | Operating Expenses | |||||||
| Level of Risk | Investment Options | 10/1/03 - 12/31/03 | 1 Year | Annualized 3 Years | Admin./ M&E |
Manage- ment Fees |
Other Expenses | Total Expenses |
| Low | Hartford Bond HLS | 0.91% | 6.93% | 7.94% | 0.850% | 0.470% | 0.040% | 1.360% |
| LB Aggregate Bond Index | 0.32% | 4.10% | 7.57% | |||||
| General (Declared Rate) Account* | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |
| Medium | Franklin Mutual Shares | 11.46% | 25.11% | 4.99% | 0.850% | 0.590% | 0.580% | 2.020% |
| Hartford Dividend and Growth HLS | 13.68% | 25.72% | 0.58% | 0.850% | 0.650% | 0.040% | 1.540% | |
| MFS Value | 13.70% | 23.64% | - 1.11% | 0.850% | 0.600% | 0.650% | 2.100% | |
| Russell 1000 Value Index | 14.19% | 30.03% | 1.22% | |||||
| Hartford Advisers HLS | 8.25% | 17.49% | - 1.71% | 0.850% | 0.630% | 0.040% | 1.520% | |
| 50% S&P 500 + 50% LBAGG Index | 6.15% | 16.00% | 2.13% | |||||
| Van Kampen Equity Income | 9.18% | 21.13% | 2.20% | 0.850% | 0.360% | 0.460% | 1.670% | |
| 60% S&P 500 + 40% LBAGG Index | 7.34% | 18.47% | 0.95% | |||||
| High | Hartford Capital Appreciation HLS | 18.34% | 41.17% | 1.22% | 0.850% | 0.640% | 0.050% | 1.540% |
| Hartford Index HLS | 11.81% | 27.05% | - 5.30% | 0.850% | 0.400% | 0.040% | 1.290% | |
| Hartford Stock HLS | 12.36% | 25.40% | - 6.41% | 0.850% | 0.460% | 0.030% | 1.340% | |
| MFS Capital Opportunities | 10.26% | 26.33% | - 13.45% | 0.850% | 0.750% | 0.480% | 2.080% | |
| S&P 500 Index | 12.17% | 28.67% | - 4.05% | |||||
| Hartford Midcap HLS | 13.43% | 36.51% | 3.53% | 0.850% | 0.680% | 0.040% | 1.570% | |
| MFS Midcap Growth | 10.23% | 36.82% | - 17.32% | 0.850% | 0.750% | 0.630% | 2.230% | |
| Russell Midcap Growth Index | 12.16% | 42.71% | - 6.13% | |||||
| Hartford Small Company HLS | 14.38% | 54.55% | - 3.38% | 0.850% | 0.730% | 0.040% | 1.620% | |
| Invesco Small Company Growth | 9.32% | 32.37% | - 10.95% | 0.850% | 0.670% | 0.830% | 2.350% | |
| Russell 2000 Growth Index | 12.68% | 48.54% | - 2.03% | |||||
| Invesco Financial Services | 11.69% | 28.40% | - 1.44% | 0.850% | 0.660% | 0.740% | 2.250% | |
| S&P Financial Services Sector Index | 11.83% | 31.03% | 0.61% | |||||
| Invesco Leisure | 13.55% | 29.21% | 3.81% | 0.850% | 0.690% | 0.810% | 2.350% | |
| S&P Consumer Discretionary Sector Index | 14.41% | 37.41% | 2.47% | |||||
| Janus Adviser Worldwide | 12.38% | 21.79% | - 11.24% | 0.850% | 0.650% | 0.550% | 2.050% | |
| MS World Index | 14.37% | 33.76% | - 3.51% | |||||
| MFS Massachusetts Investors Growth Stock | 7.37% | 21.61% | -13.67% | 0.850% | 0.330% | 0.590% | 1.770% | |
| Russell 1000 Growth Index | 10.41% | 29.75% | - 9.36% | |||||
| Templeton Foreign | 11.57% | 29.41% | 2.29% | 0.850% | 0.610% | 0.610% | 2.070% | |
| MS EAFE Index | 17.11% | 39.17% | - 2.57% | |||||
Asset transfer provision for transfer of assets from other carrier: lesser of 2% or actual deferred sales charge/surrender charge
* The Declared Rate is credited through the close of the calendar year on contributions received during the designated calendar quarter. The rate for the 1st quarter, 2004 , is 4.00 %. For contributions received prior to January 1, 2004, the Declared Rate is 4.00%. Rates quoted are effective annual yields.
| I N G F I N A N C I A L A D V I S E R S , L L C | ||||||||
|---|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | |||||||
| Level of Risk | Investment Options | 10/1/03 - 12/31/03 | 1 Year | Annualized 3 Years |
Admin./ M&E* |
Manage- ment Fees |
Other Expenses |
Total Expenses |
| Low | ING Fixed Plus** | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| ING VP Bond Portfolio | 0.82% | 5.24% | 6.71% | 1.000% | 0.400% | 0.090% | 1.490% | |
| LB Aggregate Bond Index | 0.32% | 4.10% | 7.57% | |||||
| ING VP Money Market Portfolio | - 0.01% | - 0.11% | 1.13% | 1.000% | 0.250% | 0.090% | 1.340% | |
| 91-Day Treasury Bills | 0.23% | 1.01% | 1.97% | |||||
| Janus Aspen Series Flexible Income Portfolio | 0.30% | 5.34% | 7.11% | 1.000% | 0.610% | 0.050% | 1.660% | |
| LB Government/Credit Bond Index | - 0.03% | 4.67% | 8.04% | |||||
| Medium | ING VP Balanced Portfolio, Inc. | 7.12% | 17.69% | - 0.30% | 1.000% | 0.500% | 0.100% | 1.600% |
| 60% S&P 500 + 40% LBAGG Index | 7.34% | 18.47% | 0.95% | |||||
| Janus Aspen Series Balanced Portfolio | 6.59% | 12.92% | - 0.43% | 1.000% | 0.650% | 0.020% | 1.670% | |
| 50% S&P 500 + 50% LBAGG Index | 6.15% | 16.00% | 2.13% | |||||
| High | Fidelity VIP Growth Portfolio | 10.90% | 31.53% | - 9.47% | 1.000% | 0.580% | 0.090% | 1.670% |
| Russell 3000 Growth Index | 10.58% | 30.97% | - 8.84% | |||||
| FTVIP Franklin Small Cap Value Securities Fund | 17.35% | 30.81% | 9.80% | 1.000% | 0.590% | 0.420% | 2.010% | |
| Russell 2000 Value Index | 16.37% | 46.03% | 13.83% | |||||
| ING MFS Capital Opportunities Portfolio | 10.17% | 26.80% | - 13.24% | 1.000% | 0.650% | 0.250% | 1.900% | |
| ING VP Index Plus Large Cap Portfolio | 11.71% | 24.89% | - 6.03% | 1.000% | 0.350% | 0.100% | 1.450% | |
| ING VP Value Opportunity Portfolio | 12.09% | 23.36% | - 6.82% | 1.000% | 0.600% | 0.120% | 1.720% | |
| Lord Abbett Growth and Income Portfolio | 13.40% | 29.71% | - 0.94% | 1.000% | 0.500% | 0.460% | 1.960% | |
| Pioneer Fund VCT Portfolio | 12.10% | 22.53% | - 4.65% | 1.000% | 0.650% | 0.150% | 1.800% | |
| S&P 500 Index | 12.17% | 28.67% | - 4.05% | |||||
| ING VP Index Plus MidCap Portfolio | 12.56% | 31.13% | 3.69% | 1.000% | 0.400% | 0.130% | 1.530% | |
| S&P MidCap 400 Index | 13.18% | 35.59% | 4.83% | |||||
| ING VP International Value Portfolio | 12.36% | 28.63% | - 1.96% | 1.000% | 1.000% | 0.000% | 2.000% | |
| MS EAFE Index | 17.11% | 39.17% | - 2.57% | |||||
| ING VP Small Company Portfolio | 10.71% | 36.10% | 2.12% | 1.000% | 0.750% | 0.120% | 1.870% | |
| Russell 2000 Index | 14.52% | 47.25% | 6.27% | |||||
| Janus Aspen Series Mid Cap Growth | 10.77% | 33.76% | - 16.99% | 1.000% | 0.650% | 0.020% | 1.670% | |
| Russell Midcap Growth Index | 12.16% | 42.71% | - 6.13% | |||||
| Janus Aspen Series Growth Portfolio | 12.79% | 30.42% | - 10.91% | 1.000% | 0.650% | 0.020% | 1.670% | |
| Russell 1000 Growth Index | 10.41% | 29.75% | - 9.36% | |||||
| Oppenheimer Global Securities Fund / VA | 16.58% | 41.60% | -1.68% | 1.000% | 0.650% | 0.020% | 1.670% | |
| MS World Index | 14.37% | 33.76% | - 3.51% | |||||
Asset transfer provision for transfer of assets from other carrier: none
* M&E expenses are expected to decrease as the level of total 403(b) assets increases under the State contract.
** The interest rate varies monthly. For January 2004, the rate is 4.00%. The rate is guaranteed to be no less than 3.80% through December 31, 2004.
No annual maintenance fee.
| O L D H A M R E S O U R C E M U T U A L , I N C . | ||||||||
|---|---|---|---|---|---|---|---|---|
|
Return on Investments (net of expenses) |
Operating Expenses | |||||||
| Level of Risk | Investment Options | 10/1/03 - 12/31/03 | 1 Year | Annualized 3 Years | Admin./ M&E |
Manage- ment Fees |
Other Expenses | Total Expenses |
| Low | Fidelity U.S. Bond Index | 0.42% | 4.41% | 7.22% | 0.500% | 0.320% | 0.000% | 0.820% |
| PIMCO Total Return D | 0.55% | 4.69% | 7.53% | 0.500% | 0.750% | 0.000% | 1.250% | |
| LB Aggregate Bond Index | 0.32% | 4.10% | 7.57% | |||||
| Fidelity Money Market | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |
| Safeco Preference FP Fixed* | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |
| 91-Day Treasury Bills | 0.23% | 1.01% | 1.97% | |||||
| Medium | Merger | 3.10% | 11.06% | 1.89% | 0.500% | 1.380% | 0.000% | 1.880% |
| Pax World Balanced | 7.45% | 16.77% | - 1.45% | 0.500% | 0.950% | 0.000% | 1.450% | |
| Oakmark Equity & Income | 9.07% | 22.71% | 11.97% | 0.500% | 0.960% | 0.000% | 1.460% | |
| 60% S&P 500 + 40% LBAGG Index | 7.34% | 18.47% | 0.95% | |||||
| High | Clipper | 9.15% | 18.85% | 7.03% | 0.500% | 1.070% | 0.000% | 1.570% |
| Russell 1000 Value Index | 14.19% | 30.03% | 1.22% | |||||
| Jensen | 10.86% | 16.08% | 0.76% | 0.500% | 0.900% | 0.000% | 1.400% | |
| Russell 1000 Growth Index | 10.41% | 29.75% | - 9.36% | |||||
| Artisan Mid Cap Value | 13.98% | 36.33% | N/A | 0.500% | 1.950% | 0.000% | 2.450% | |
| FAM Value | 11.13% | 24.48% | 10.34% | 0.500% | 1.210% | 0.000% | 1.710% | |
| Russell Midcap Value Index | 15.22% | 38.07% | 8.48% | |||||
| Dreyfus Mid Cap Index | 12.95% | 34.44% | 3.82% | 0.500% | 0.500% | 0.000% | 1.000% | |
| S&P Mid Cap 400 Index | 13.18% | 35.59% | 4.83% | |||||
| AXA Rosen US Small Cap Inv | 15.37% | 39.51% | 12.87% | 0.500% | 1.490% | 0.000% | 1.990% | |
| Russell 2000 Index | 14.52% | 47.25% | 6.27% | |||||
| Royce Total Return | 11.54% | 29.49% | 13.15% | 0.500% | 1.200% | 0.000% | 1.700% | |
| Russell 2000 Value Index | 16.37% | 46.03% | 13.83% | |||||
| Needham Small Cap Growth | 11.55% | 61.74% | N/A | 0.500% | 2.500% | 0.000% | 3.000% | |
| Needham Growth | 7.04% | 46.84% | 5.32% | 0.500% | 1.750% | 0.000% | 2.250% | |
| Russell 2000 Growth Index | 12.68% | 48.54% | - 2.03% | |||||
| Third Avenue International Value | 17.63% | 54.18% | NA | 0.500% | 1.750% | 0.000% | 2.250% | |
| MS EAFE Index | 17.11% | 39.17% | - 2.57% | |||||
| Gabelli Global Growth | 11.19% | 40.89% | - 7.41% | 0.500% | 1.750% | 0.000% | 2.250% | |
| MS World Index | 14.37% | 33.76% | - 3.51% | |||||
| Third Avenue Real Estate Value | 12.41% | 36.84% | 18.67% | 0.500% | 1.220% | 0.000% | 1.720% | |
| Wilshire REIT Index | 9.28% | 37.06% | 15.84% | |||||
Asset transfer provision for transfer of assets from other carrier: none
* Premium payments will be credited with the effective interest rate established for the date each payment is received. The current rate as of December 31, 2003, is 3.2%. The effective rate reflects the effects of daily compounding of interest. The minimum annual effective rate guarantee is 3.00%.
| T I A A - C R E F | ||||||||
|---|---|---|---|---|---|---|---|---|
|
Return on Investments (net of expenses)* |
Operating Expenses | |||||||
| Level of Risk | Investment Options | 10/1/03 - 12/31/03 | 1 Year | Annualized 3 Years |
Admin./ M&E |
Manage- ment Fees |
Other Expenses | Total Expenses |
| Low | CREF Bond Market Account | 0.32% | 4.33% | 7.42% | 0.285% | 0.110% | 0.045% | 0.440% |
| LB Aggregate Bond Index | 0.32% | 4.10% | 7.57% | |||||
| CREF Inflation-Linked Bond Account | 1.53% | 7.61% | 10.46% | 0.285% | 0.110% | 0.045% | 0.440% | |
| Citi US Inflation-Linked SecuritiesIndex | 1.47% | 8.26% | 10.89% | |||||
| CREF Money Market Account | 0.18% | 0.75% | 2.09% | 0.285% | 0.060% | 0.045% | 0.390% | |
| 91-Day Treasury Bills | 0.23% | 1.01% | 1.97% | |||||
| TIAA Traditional Annuity** | 0.81% | 4.12% | 6.27% | N/A | N/A | N/A | N/A | |
| Medium | CREF Social Choice Account | 7.14% | 19.56% | 1.13% | 0.285% | 0.110% | 0.045% | 0.440% |
| 60% Russell 3000 + 40% LBAGG Index | 7.49% | 19.80% | 1.57% | |||||
| TIAA Real Estate Account*** | 2.59% | 6.59% | 6.13% | 0.350% | 0.265% | 0.075% | 0.690% | |
| NCREIF Index*** | 1.97% | 7.84% | 7.87% | |||||
| High | CREF Equity Index Account | 12.27% | 30.34% | - 3.45% | 0.285% | 0.110% | 0.045% | 0.440% |
| CREF Stock Account | 13.00% | 31.97% | - 3.42% | 0.285% | 0.150% | 0.045% | 0.480% | |
| Russell 3000 Index | 12.43% | 31.06% | - 3.08% | |||||
| CREF Global Equities Account | 14.29% | 33.57% | - 5.59% | 0.285% | 0.200% | 0.045% | 0.530% | |
| MS World Index | 14.37% | 33.76% | - 3.51% | |||||
| CREF Growth Account | 10.11% | 27.75% | - 11.68% | 0.285% | 0.170% | 0.045% | 0.500% | |
| Russell 1000 Growth Index | 10.41% | 29.75% | - 9.36% | |||||
Asset transfer provision for transfer of assets from other carrier: none
* In accordance with the requirements of the operating provisions of the 403(b) Program, TIAA-CREF will assess a fee for each active account on a monthly basis beginning December 2002. The purpose of this fee is to pay expenses associated with the 403(b) Program's limited scope third party administrator.
** Rates for the TIAA Traditional Annuity are quoted after all operation charges have been deducted. These charges are very low, averaging about 1/3 of 1% of assets. New contributions applied to the TIAA Traditional Annuity under a Group Supplemental Retirement Annuity (GSRA) contract during the period from January 1, 2004 through February 29, 2004, will be credited with an interest rate of 3.25%.
*** TIAA Real Estate Account and the NCREIF Index returns are presented one quarter in arrears due to a lag in the availability of the benchmark return.
| T R A V E L E R S L I F E & A N N U I T Y | ||||||||
|---|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | |||||||
| Level of Risk | Investment Options | 10/1/03 - 12/31/03 | 1 Year | Annualized 3 Years |
Admin./ M&E |
Manage- ment Fees |
Other Expenses |
Total Expenses |
| Low | Fixed Income* | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Travelers Money Market Portfolio | 0.02% | 0.18% | 1.36% | 0.600% | 0.360% | 0.040% | 1.000% | |
| 91-Day Treasury Bills | 0.23% | 1.01% | 1.97% | |||||
| Travelers Quality Bond Portfolio | 0.45% | 6.35% | 6.00% | 0.600% | 0.380% | 0.060% | 1.040% | |
| LB Aggregate Bond Index | 0.32% | 4.10% | 7.57% | |||||
| Travelers U.S. Government | - 0.59% | 2.13% | 6.66% | 0.600% | 0.380% | 0.060% | 1.040% | |
| ML US Treasury/Agency Master Index | - 0.37% | 2.36% | 6.88% | |||||
| Medium | Equity Income Portfolio (Fidelity) | 12.30% | 30.39% | 1.17% | 0.600% | 0.750% | 0.030% | 1.380% |
| Russell 3000 Value Index | 14.35% | 31.14% | 2.09% | |||||
| MFS Total Return | 6.82% | 15.84% | 2.73% | 0.600% | 0.800% | 0.030% | 1.430% | |
| 60% S&P 500 Index + 40% LBAGG Index | 7.34% | 18.47% | 0.95% | |||||
| Smith Barney Appreciation Portfolio | 10.51% | 23.82% | - 1.05% | 0.600% | 0.750% | 0.020% | 1.370% | |
| S&P 500 Index | 12.17% | 28.67% | - 4.05% | |||||
| High | AIM V.I. Premier Equity Fund | 10.21% | 24.33% | - 9.18% | 0.600% | 0.610% | 0.240% | 1.450% |
| Equity Index Portfolio - Class II | 11.81% | 26.98% | - 5.14% | 0.600% | 0.260% | 0.300% | 1.160% | |
| Fidelity VIP Contrafund S2 | 11.25% | 27.43% | - 0.13% | 0.600% | 0.580% | 0.320% | 1.500% | |
| S&P 500 Index | 12.17% | 28.67% | - 4.05% | |||||
| Dreyfus VIF Developing Leaders Portfolio | 11.57% | 30.91% | - 0.60% | 0.600% | 0.750% | 0.060% | 1.410% | |
| Russell 2000 Index | 14.52% | 47.25% | 6.27% | |||||
| Janus Capital Appreciation | 11.31% | 24.17% | - 12.10% | 0.600% | 0.810% | 0.030% | 1.440% | |
| Russell 1000 Growth Index | 10.41% | 29.75% | - 9.36% | |||||
| Large Cap Portfolio (Fidelity) | 10.70% | 23.92% | - 7.89% | 0.600% | 0.750% | 0.060% | 1.410% | |
| S&P 500 Growth Index | 9.93% | 25.66% | - 5.72% | |||||
| MFS Mid Cap Growth | 10.09% | 36.24% | - 19.29% | 0.600% | 0.860% | 0.070% | 1.530% | |
| Russell Midcap Growth Index | 12.16% | 42.71% | - 6.13% | |||||
| Putnam VT International Growth - IB | 14.46% | 27.76% | - 5.99% | 0.600% | 0.770% | 0.470% | 1.840% | |
| MS EAFE Index | 17.11% | 39.17% | - 2.57% | |||||
| Putnam VT Small Cap Value - IB | 19.50% | 48.75% | 12.38% | 0.600% | 0.800% | 0.370% | 1.770% | |
| Russell 2000 Value Index | 16.37% | 46.03% | 13.83% | |||||
| Salomon Brothers Variable All Cap Portfolio | 13.40% | 38.21% | 1.41% | 0.600% | 0.850% | 0.120% | 1.570% | |
| Russell 3000 Index | 12.43% | 31.06% | - 3.08% | |||||
| Salomon Brothers Variable Investors | 13.51% | 31.54% | - 1.40% | 0.600% | 0.700% | 0.110% | 1.410% | |
| S&P 500 Value Index | 14.45% | 31.79% | - 2.71% | |||||
| Smith Barney Aggressive Growth Portfolio | 9.88% | 33.71% | - 5.14% | 0.600% | 0.800% | 0.030% | 1.430% | |
| Russell 3000 Growth Index | 10.58% | 30.97% | - 8.84% | |||||
| Travelers Disciplined Mid Cap | 12.52% | 32.96% | 2.60% | 0.600% | 0.760% | 0.090% | 1.450% | |
| Russell Midcap Index | 13.97% | 40.06% | 3.47% | |||||
Asset transfer provision for transfer of assets from other carrier: lesser of 2% or actual deferred sales charge/surrender charge
* Interest rate varies quarterly. The rate for the fourth quarter of 2003 is 3.40%.