If you are a new participant in the University's Retirement Savings Program, your current contributions will be directed 100% to Securian Retirement Services, which also offers the Vanguard and Fidelity investment alternatives, as well as a broad range of investment options that permit appropriate diversification.

You have five general categories in which you may invest your money. These categories vary in both risk and return. Be sure to carefully read the appropriate prospectus or custodial agreement before investing in any fund or account.

Please note: This material is intended for informational purposes only, and no warranty is given regarding the information. None of the information is intended to constitute, nor does it constitute, financial advice. This information is not a substitute for professional financial advice and each person should always consult his/her own financial or other professional advisers and discuss the facts and circumstances that apply to the person. So far as it is permitted by law, the University of Minnesota disclaims liability for any loss, however caused, arising directly or indirectly from the use and content of this information.

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Insurance Company General Accounts

General Accounts invest in the general assets (bonds, mortgages, stocks, real estate) of the insurance company which guarantees the principal and a minimum rate of return. Some restrict the ability to transfer or withdraw funds. Actual return is entirely interest and varies with the return earned on the underlying assets. The guarantees for General Accounts are solely based on the financial strength and claims-paying ability of the insurance company offering the product.

Minnesota Life General Account (offered by Securian)

The principal and a minimum return (3%) are guaranteed by Securian Retirement Services, a AA-rated insurance company. The funds are invested in general assets of the insurance company (bonds, mortgages, stocks, real estate). Interest paid varies with market conditions. There are no restrictions on transfers to other investment options within the plan or on withdrawals.

Minnesota Life General Account Limited (offered by Securian)

This is similar to the General Account, but transfers or withdrawals are generally limited to 20% of balance annually. The account has options for larger transfers or withdrawals at retirement or termination and at five-year intervals thereafter. Securian Retirement Services guarantees that funds held in the account for five years or longer will be credited more interest than would be credited during that same period to the General Account.

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Money Market

Money Market funds invest in short-term debt securities with the objective of maintaining a stable share price. The investment return is the interest and it fluctuates with short-term market interest rates.

Vanguard Prime Money Market Fund

The fund invests in short-term corporate and bank obligations maturing in 90 days or less.

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Bond Funds

Bond funds invest in bonds and other debt securities with varying maturities consistent with the funds' investment policies and objectives. The return consists of both interest income and the change in the market value of bonds (which fluctuates inversely with market interest rates).

Fidelity Strategic Income Fund

Invests in a broad range of debt, both in the United States and abroad. This fund targets a mix of 40% high-yield bonds, 30% U.S. government and high-quality corporate bonds, 15% emerging market debt, and 15% foreign developed market securities.

Vanguard GNMA Fund

This fund seeks to maintain a high-income stream by investing in a broad range of Government National Mortgage Association (GNMA or 'Ginnie Mae') securities. These securities are backed by mortgages and are subject to prepayment risk unlike other bonds with the full-faith backing of the U.S. government.

Vanguard Inflation-Protected Securities Fund

This fund is an actively managed, intermediate-term bond fund that invests primarily in Treasury inflation-protected securities. This fund seeks inflation protection and income, yet is typically less volatile than nominal U.S. Treasury bonds.

Vanguard Intermediate-Term Investment Grade Fund

This fund is an actively managed, intermediate-term bond fund that seeks moderate and sustainable current income. This fund has a minimum 95% investment in securities rated Baa or higher.

Vanguard Long-Term Investment Grade Fund

This fund invests primarily in long-term, high-quality corporate bonds. It may include up to 5% in lower-quality bonds and 20% in U.S. government or agency issues.

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Hybrid Funds

Hybrid funds, which include asset allocation and balanced funds, are blended funds that invest in both stocks and debt securities with wide latitude to vary the proportions. Share price and return will fluctuate due to fluctuations in the markets and the fund manager's skill in allocating assets among the markets.

Fidelity Asset Manager 70%

An actively managed fund that aggressively seeks maximum long-run total return by allocation of assets among stocks, bonds, and short-term instruments of U.S. and foreign issuers. Neutral mix is 70% stocks, 25% bonds, and 5% short-term instruments; permissible range is 50% to 100% for stocks, 0% to 50% bonds, and 0% to 50% short-term and money market categories.

Vanguard Target Retirement Funds

These funds gradually and automatically shift to more conservative investments over time as the investor's expected retirement date nears. The funds have varying degrees of exposure to the stock and bond markets and are therefore subject to varying combinations of stock and bond market risks. They seek to provide capital appreciation and current income by investing in a mix of Vanguard mutual funds. The funds' indirect stock holdings consist of large-, mid-, and small-cap U.S. stocks and international stocks, and a diversified mix of investment-grade bonds and mortgage-backed securities.

• Vanguard Target Retirement 2010 Fund - For investors planning to retire between 2008 and 2012
• Vanguard Target Retirement 2015 Fund - For investors planning to retire between 2013 and 2017
• Vanguard Target Retirement 2020 Fund - For investors planning to retire between 2018 and 2022
• Vanguard Target Retirement 2025 Fund - For investors planning to retire between 2023 and 2027
• Vanguard Target Retirement 2030 Fund - For investors planning to retire between 2028 and 2032
• Vanguard Target Retirement 2035 Fund - For investors planning to retire between 2033 and 2037
• Vanguard Target Retirement 2040 Fund - For investors planning to retire between 2038 and 2042
• Vanguard Target Retirement 2045 Fund - For investors planning to retire between 2043 and 2047
• Vanguard Target Retirement 2050 Fund - For investors planning to retire between 2048 and 2053

Vanguard Wellington Fund

The fund is diversified among bonds held for relative stability of income and principal and stocks held for potential growth of capital and income. It normally invests 60% to 70% in stocks and 30% to 40% in bonds.

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Stock Funds

Stock funds invest primarily in common stocks with varying investment objectives. Stock funds may contain a variety of equity instruments including growth stock, value stock, and international stock. Share price and return may fluctuate to a greater degree than the overall stock market.

Fidelity Contrafund

A fund that invests primarily in stock of companies believed to be undervalued in relation to other companies in the same industry. Investments may include growth stocks and value stocks.

Fidelity OTC Portfolio

An actively managed fund that invests primarily in securities traded on the over-the-counter securities market, including common and preferred stocks, securities convertible into common stocks, and debt securities.

Vanguard FTSE Social Index Fund

An index fund that invests in the stocks included in the FTSE Social Index, which screens for certain social and environmental criteria with a growth orientation. The FTSE4Good US Index invests in more than 700 large-capitalization U.S. stocks focusing on three areas: environmental sustainability, upholding and supporting universal human rights, and developing positive relationships with stakeholders. The index will not include companies that are in the tobacco, alcohol, adult entertainment, firearms, gambling, or nuclear power industries or those that violate fair-labor practices or equal-opportunity standards

Vanguard Extended Market Index Fund

An indexed fund that invests in small U.S. stocks. The fund attempts to match the performance of the Wilshire 4500 Completion Index, an unmanaged index made up mostly of mid- and small-capitalization companies, by investing in a large sampling of stocks that match certain characteristics of the index.

Vanguard Global Equity Fund

An actively managed, globally diversified fund with low individual stock holdings. It seeks long-term capital appreciation by investing in both domestic and international stocks, spanning both growth and value stocks of large-, mid-, and small-cap companies.

Vanguard Growth Index Fund

An indexed equity fund that seeks to track the performance of the MSCI® US Prime Market Growth Index. This fund invests in large-cap growth stocks.

Vanguard Institutional Index Fund

An indexed fund that invests in all stocks included in the Standard & Poor's 500 Index in approximately the same proportion as in the Index. The 'S&P 500' represents approximately 75% of the total market value of all U.S. stocks.

Vanguard International Value Fund

An actively managed fund that invests in a broadly diversified portfolio of non-U.S. stocks selected on the basis of relative value. Computer analysis is used to determine country weightings and relative value of market sectors. Individual stocks are evaluated for value based on fundamental business and financial factors.

Vanguard Mid-Cap Index Fund

An indexed fund that invests in all stocks included in the Morgan Stanley Capital International U.S. Mid Cap 450 Index. The 450 stocks included represent approximately 13% of the total market value of all U.S. stocks.

Vanguard PRIMECAP Fund

An actively managed, multi-cap growth equity fund that emphasizes large- and mid-cap stocks. This fund seeks long-term capital appreciation by investing in out-of-favor growth companies believed to be undervalued. This fund assesses a 1% fee on the sales of shares held less than one year.

Vanguard Small-Cap Index Fund

An indexed fund that invests in the stocks included in the Morgan Stanley Capital International U.S. Small Cap 1750 Index. The 1750 stocks included represent approximately 11% of the total market value of all U.S. stocks.

Vanguard Total International Stock Index Fund

An indexed fund that invests in three Vanguard international stock index funds: a European fund, a Pacific fund, and an emerging markets fund. The combination of the three underlying index funds, in turn, seeks to match the investment results of the Morgan Stanley Capital International Total International Index.

Vanguard Total Stock Market Index Fund

A blended large-cap equity index fund that seeks to track the performance of the MCSI® US Broad Market Index. This fund invests in large-, mid-, and small-cap stocks, diversified across both growth and value styles.

Vanguard Windsor II Fund

An actively managed fund that pursues long-term growth of capital and income by selecting stocks believed to be undervalued. The fund emphasizes income-producing stock of larger companies.