Conservative Portfolio

Moderate Portfolio

Growth Portfolio

Aggressive Growth Portfolio

Tactical Asset Allocation

Strategic Asset Allocation

Dynamic Advisors Program

CONSERVATIVE PROGRAM

Sensitive to short-term losses, but still seeks to beat inflation over the long term.

U.S. Large Cap Equity	19	%
U.S. Small Cap Equity	5	%
International Equity	4	%
Intermediate-Term U.S. Gov't./Corp Bonds	48	%
Cash	24	%

Expected Return 1	7.87	%
Standard Deviation 2	4.68	%

% Equity	28	%
% Fixed Income	72	%

Note: All values in percent.

The Conservative Investor Portfolio:	The conservative investor is particularly sensitive to short-term losses, however, it is likely that he/she has a goal of beating expected inflation over the long run.
Appropriate Time Horizon:	Five years or more
Portfolio Characteristics:	Conservative
	Low volatility
	Seeks to achieve a return that outpaces expected inflation by approximately 3% over a 20 year holding period.
	Seeks to have at least a 75% chance of keeping pace with expected inflation over a 3-year span and 90% chance over a 5-year span.*
	Seeks to achieve a return (refers to the expected value) that outpaces expected inflation by at least 3% over a 20-year holding period.
	The actual performance of a given asset allocation model may be greater or less than the projected return.

*The criteria is the same for all investors. It is assumed that a high probability of achieving the minimal investment goal of keeping pace with inflation is desired by all investors over this typical period of investment performance evaluation.

1. The Expected Return for a particular investment objective is a weighted average of the expected returns of each asset class. The expected return of a particular asset class is calculated by adding historical risk premiums associated with that asset class to the current risk free rate, which is the yield on a 20-year U.S. Treasury bond, as reported in the Wall Street Journal on May , 1999. Weighting of each asset class may change in response to changes in market conditions as determined by Ibbotson Associates.

2. The Expected Standard Deviation is a measure of market volatility. It is calculated by taking the past performance of the various asset classes and determining the range of possible future performances. A probability is attached to the chances of the portfolio performance deviating from the expected return. The greater the probability, the greater the risk.