Do any of the FRS Investment Plan funds contain subprime mortgages?
• FRS Select Yield Plus Money Market Fund • Pyramis Intermediate Duration Pool Fund • PIMCO Total Return Fund • FRS Select Conservative Balanced Fund (contains an allocation to the FRS Select Yield Plus Money Market Fund) • FRS Select Moderate Balanced Fund (contains an allocation to the Pyramis Intermediate Duration Pool Fund) Fund holdings are limited to asset-backed securities (ABS), which may have some subprime mortgages mixed in the pools of mortgages the securities own. Most of the ABS are AAA-rated, the highest rating category possible. The number of ABS funds with a lower-than AAA rating is small. The managers of these funds believe their limited exposure may have only a small, short-term impact on their funds’ investment performance. To discuss any questions you have on this issue, please call the MyFRS Financial Guidance Line toll-free at 1-866-446-9473, Option 1, and speak to an Ernst & Young financial planner. To see a summary table of FRS Investment Plan subprime mortgage
