okmrf.org: Investment Breakdown

The Balanced Fund is a diversified group of investments. The objective of the fund is to preserve capital and achieve a positive return at the same time. The diversified assets include fixed income investments, common stocks and cash equivalents. The fixed income investment provides a predictable flow of income to the fund. The stock investments are designed to participate in the long term growth of the economy. The stock portion of the account is expected to produce the best returns to the account in the long run. It will also produce some volatility to the fund. The fund is designed for participants who seek exposure to several asset classes, such as stocks and bonds. The diversification will tend to promote a return with less fluctuation than a fund invested in one class of assets only. Participants should have a minimum investment horizon of 5 years, with 10 years being preferable.

Manager:	Investment Type:	Management Style:	Ticker Symbol:	Range of Option:
Domestic Equity – Active
Bank One Investment Management Group	Separate Account Manager	Large Cap Growth	N/A	2 – 5%
PIMCO Capital Appreciation Fund	Mutual Fund	Large Cap Growth	PAPIX	2 – 5%
Nicholas Applegate U. S. Equity Growth Fund	Mutual Fund	Mid Cap Growth	NACGX	2 – 5%
Tom Johnson Investment Management	Separate Account Manager	Large Cap Value	N/A	3 – 7%
Morgan Stanley Institutional Fund Trust - Value Portfolio	Mutual Fund	Large Cap Value	MPVLX	1 – 2%
Vanguard Equity Income Fund	Mutual Fund	Large Cap Value	VEIRX	1 – 2%
Vanguard Windsor II Fund	Mutual Fund	Large Cap Value	VWNFX	1 – 2%
Domestic Equity – Passive
One Group Equity Index Fund	Mutual Fund	S & P 500 Index	HLEIX	18 – 42%
Domestic Fixed – Active
Tom Johnson Investment Management	Separate Account Manager	Intrm Term Fixed Income	N/A	6 – 14%
Bank One Investment Management Group	Separate Account Manager	Long Term Fixed Income	N/A	6 – 14%
Domestic Fixed – Passive
Mellon Capital Management – EB Daily Opening Aggregate Bond Index Fund	Collective Trust Fund	Passive – Fixed Income Fund	N/A	18 – 42%
International Equity – Active
Scudder International Fund	Mutual Fund	Large Cap Growth	SCINX	.5 – 2%
T. Rowe Price International Stock Fund	Mutual Fund	Large Cap Growth	PRITX	.5 – 2%
Vanguard International Growth Fund	Mutual Fund	Large Cap Value	VWIGX	.5 – 2%
Templeton Foreign Equity Series	Mutual Fund	Large Cap Value	TFEQX	.5 – 2%
International Equity – Passive
Mellon Capital Management – EB International Stock Index Fund	Collective Trust Fund	Passive – Int Eq Fund (EAFE)	N/A	2.5 – 7.5%
Cash and Equivalents
One Group Government Money Market Fund	Mutual Fund	N/A	OGVXX	0 – 5%

Money Market Fund

The primary goal of the Money Market fund is to provide a high degree of safety and stability of principal value (capital). Investments are exclusively in high-quality, short-term securities that are issued or guaranteed by the U. S. government or by U.S. government agencies and instrumentalities. Some of the securities in the Fund may be subject to repurchase agreements. The average weighted maturity of the fund is forty days. The rate of return will fluctuate over time as changes occur in market interest rates. The Money Market Fund could be used to accomplish many objectives. It is most frequently used as a "safe harbor" for participants with short-term time horizons. It is not expected to produce a return much higher than inflation. Participants should have an investment time horizon of one to three years.

Investment Contract Fund

The Investment Contract Fund provides the opportunity to protect the principal value (capital) of an account. This fund invests mainly in a diversified portfolio of investment contracts, typically offered by insurance companies. The insurance company promises to pay back the principal at a specific rate of interest over time (typically one to five years). These investments are currently subject to little or no fluctuation in principal value. The interest rate received will fluctuate over time, however. The credit risk for this fund is based on the quality and credit worthiness of the insurance company which is promising to pay on the contract. This risk is minimized by diversifying the investment over many issuers. The Investment Contract Fund will generally pay more interest than the Money Market Fund. Participants wishing to protect their principal while taking slightly more risk may find this option more attractive. Participants should have an investment horizon of 3 to 5 years.

Bond Index Fund

The Bond Index Fund is comprised of fixed income securities which replicate the Lehman Aggregate Bond Index. The purpose of this fund is to generally mirror the performance of the United States long-term bond market. Since its objective is to duplicate the market return, it eliminates the human factor of selecting specific fixed income securities and determining the length of time to hold such assets. Since this type of asset is subject to fluctuation in market value, it can produce a yearly negative return, but typically is considered a lower risk investment. Participants should have a minimum time horizon of 3 years.

S&P Index Fund

The S&P Index Fund is comprised of the 500 stocks which are in the Standard and Poor’s 500 Stock Index. The stocks contained in this index account are approximately 70% of the total market value of all the stocks in the United States and is considered representative of “the market”. Since this fund will strive to produce a return which duplicates the return of the S&P 500 Stock Index, it will eliminate the human factor of evaluating and selecting which stocks to buy. The investment performance of many stock investment managers is measured against the S&P 500 Stock Index, and therefore, is viewed as a common standard or yardstick of performance. As always, when investing in the stock market, returns are considerably volatile, with potential for yearly negative returns. Participants should have a minimum investment horizon of 5 years, and preferably 10 years.

Growth & Value Fund

The Growth and Value Equity Fund is currently invested primarily in mutual funds which invest in companies located primarily in the United States. The stocks are monitored to include rapidly growing companies (growth stocks) or companies with a stock price which (in the opinion of the investment manager) does not fairly reflect the value of the company (value stocks). These approaches to investing have had a history of being in or out of favor with investors over market cycles. The market cycles are typically three to five years. The Growth and Value Equity Fund will try to benefit from the repeat of these cycles which have been seen historically. Since the Growth and Value Equity Fund is invested primarily in common stock, there can be considerable volatility, with potential for negative yearly returns. Participants should have a minimum time horizon of 5 years, and preferably 10 years.

Mutual Funds Held:	Range of Option:	Ticker Symbol:	Wall Street Journal Heading:	Wall Street Journal Listing:
Morgan Stanley Institutional Fund Trust - Value Portfolio	13 – 20%	MPVLX	Morgan Stanley Inst	Value
Nicholas Applegate U. S. Large Cap Select Growth Fund	13 – 20%	NLCRX	Nicholas Applegate
Nicholas Applegate U. S. Equity Growth Fund	13 – 20%	NACGX	Nicholas Applegate	MidCpGrl
PIMCO Capital Appreciation Fund	13 – 20%	PAPIX	PIMCO Funds Instl	CapApp
Vanguard Equity Income Fund	13 – 20%	VEIRX	Vanguard Fds	EqIncAdml
Vanguard Windsor II Fund	13 – 20%	VWNFX	Vanguard Fds	WndsrII

International Investment Fund

The International Fund is currently invested primarily in mutual funds which invest in companies which are headquartered in countries outside the United States. Of all common stock available for investment in the world today, roughly 2/3 are in this category. Since some of the economies of the world are growing more rapidly than the U.S., significant investment returns have been achieved by international investors over the past ten to fifteen years. On the other hand, since foreign stock markets are not as developed and mature as ours, they can be extremely volatile with potential for negative yearly returns. Participants in the International Fund should expect volatility and have a minimum time horizon of 5 years, and preferably 10 years.

Mutual Funds Held:	Range of Option:	Ticker Symbol:	Wall Street Journal Heading:	Wall Street Journal Listing:
Templeton Institutional Funds, Inc. Foreign Equity Series	20 – 30%	TFEQX	Templeton Instit	ForEqS
T. Rowe Price International Stock Fund	20 – 30%	PRITX	Price Funds	IntlStk
Scudder International Fund	20 – 30%	SCINX	Scudder Fds Class S	Intl Fd
Vanguard International Growth Fund	20 – 30%	VWIGX	Vanguard Fds	IntlGr

Aggressive Equity Fund

The Aggressive Equity Fund is currently invested primarily in mutual funds which invest in the common stock of small companies. These companies are growing rapidly in their sales and profits (earnings) or are undervalued. A company is undervalued when (in the opinion of the investment manager) the stock price is lower than the value of the company’s assets. The performance history of small companies has been very volatile. The history includes extended periods of negative returns and shorter periods with returns higher than the overall stock market. Over long periods, though, small company portfolios have produced the greatest returns. They also have had the greatest potential for short term losses. Participants should expect extreme volatility and have a minimum investment time horizon of 5 years, with 10 years being preferable.

Mutual Funds Held:	Range of Option:	Ticker Symbol:	Wall Street Journal Heading:	Wall Street Journal Listing:
Nicholas Applegate Emerging Growth Fund	28 – 38%	NAGQX	Nicholas Applegate	SmCpGrl
Provident Investment Counsel Small Company Growth Fund	28 – 38%	PINSX	Not Listed	Not listed
Sit Mid Cap Growth Fund	28 – 38%	NBNGX	Sit Funds	MidCpGr

Please note that GIC funds and Index funds are not publicly listed, as they are actually collective trust funds, so information may not be available from usual sources. However, the overall fund return is calculated monthly and provided by memorandum.