Ohio Deferred Compensation Investment Performance Report –– As ...

Investment Performance Report Notes
Asset Class Descriptions — Asset classes identify funds that tend to have similar investment objectives and strategies, and
generally react in a similar manner to market fluctuations as other funds in the same class. Spreading your investment selections
across several asset classes, a technique known as diversification, can help increase your total return based on the level of risk
you are willing to accept. The use of diversification and asset allocation as part of an overall investment strategy does not assure
a profit or protect against loss in a declining market.
LifePath Portfolios — Each LifePath portfolio is a pre-mixed option investing in multiple asset classes in the US
and abroad with an asset allocation of stocks, bonds and cash based on a target year (when you expect to begin
using your money). The portfolio then automatically adjusts its asset allocation as the target year approaches, by
investing more and more conservatively, reducing its investments in stocks, and increasing its investments in bonds
and cash. The LifePath Portfolios are designed to provide diversification and asset allocation across several types
of investments and asset classes, primarily by investing in underlying funds. These portfolios experience risks
and expenses ratios, including applicable fees and expenses, of the underlying funds. There is no guarantee that
LifePath Portfolios will provide enough income for retirement.
Stable Value — These options are short to intermediate term, high quality securities. Investors who seek safety of
principal as well as a competitive rate of return compared to money market funds, may invest in these options. The
Stable Value Option annualized returns are net of investment management, custody, principal protection, and plan
administration fees. A fund profile can be obtained for the Stable Value Option by calling 1-877-644-6457 or visiting
www.Ohio457.org.
International Stock Funds — International funds, also known as foreign funds, contain stocks from companies
located outside of the United States. Most international stock funds seek long-term growth of capital. These funds
typically have higher risk due to political factors, currency fluctuations, differences in accounting standards and
foreign regulations, as well as higher return potential. Risk and return is typically high.
Small-Cap Stock Funds — Small-cap funds contain stocks from companies with less than $2 billion in capitalization
including many start up companies. Small companies can grow much faster than big companies, but small
company stocks tend to be more volatile than the stocks of larger companies. Over the long term, an investor in
small-cap stocks must be willing to accept a higher level of risk resulting from potentially higher market volatility.
Mid-Cap Stock Funds — Mid-cap funds contain stocks from companies with market values between $2 billion and
$10 billion and often include companies who are well established and growing. Risk and return is typically moderate
to high.
Large-Cap Stock Funds — A large-cap fund invests mostly in stocks of larger companies. Typically, large-cap
stocks are companies with market values more than $10 billion and include blue-chip and Fortune 500 companies.
They are typically more mature, diversified companies with many products and services. The goal of this type of
fund is usually steady growth of capital. Risk and return is typically moderate to high.
Balanced Funds — Balanced funds are funds that seek both income and capital appreciation by investing in a
generally fixed combination of stocks and bonds. These funds generally hold a minimum of 25% of their assets in
fixed-income securities at all times. Risk and return is typically moderate to low.
Bond Funds — Bonds are loans or debt instruments issued by governments or corporations that need to raise
money. When investors buy a bond, they are actually loaning money to the government or company, and therefore
have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by
the fund. Bonds are issued for a set period, during which interest payments are typically made to the bondholder.
Bonds are generally a more conservative form of investment than stocks, and usually provide a more steady flow of
income. Typically, bonds have a lower long-term total return than stocks.
Investment Performance
Investment returns on the Investment Performance Report do not reflect the deduction of the historical
administrative fee. The Board may suspend the administrative fee at their discretion. All reported mutual fund
returns assume reinvestment of capital gains and dividends and reflect the fund's expense ratio. The Ohio DC
Options are not mutual funds or registered investment companies.
Administrative Fee
An administrative fee of $2.00 per quarter was charged 1/1/2000 to 9/30/2006. The quarterly $2.00 administrative
fee has been suspended since 10/1/2006 to present.
NRX-0221OH.0912.22