Total Yield Bond Option

OMRF Introduces the Total Yield Bond Option On January 1st, 2012, OMRF will open a new investment option to participants called the Total Yield Bond Option. The Total Yield Bond Option will be an actively managed bond portfolio with approximately one half of the assets invested in the JP Morgan Core Bond Fund and half in the Pioneer US Core Plus Bond Fund. The JPMorgan fund invests in high quality bonds issued by the US Government, agencies of the US Government, or US corporations. The Pioneer fund manager actively searches for investment opportunities not normally found in core US bonds. These include (but are not limited too) municipal bonds, high yield bonds, emerging market bonds, or bonds issued by foreign governments. However, the overall portfolio quality will still be investment grade bonds. This fund will allow OMRF participants to access other parts of the bond market not found in the Bond Index Option which simply mimics the Barclays Capital Aggregate Bond Index. Participants should be aware that this fund will most likely fluctuate in value more than the Bond Index Option and carries more risk. The benefits of the new fund include: 1) access to other areas of the bond market; 2) an active investment management team; 3) diversification from the current fixed options; and 4) potential protection during a rising interest rate environment. Investors in this fund should have a minimum time horizon of 3 to 5 years. Starting December 1st, participants will be able to make an election to move assets into this new option effective at the beginning of January 2012. New Investment Election Form 1.20 will be available through your Human Resources Department. If you have any questions on this fund please feel free to contact us at 888-394-6673 and ask for Chris or Jodi.

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