Objective

The Barclays Global Investors (BGI) Equity Index Fund seeks to match the total return performance of the Standard & Poor's 500 Composite Stock Price Index, a widely accepted benchmark for large stock company performance. 

Investment Type

This option is a separate account that invests in a stock fund managed by Barclays Global Investors. The Fund maintains a portfolio of 500 stocks and seeks long-term growth in value.

Investment Risk and Return

The BGI Equity Index Fund can experience high price volatility or "risk" in exchange for potentially greater long-term investment returns. Because the Fund invests in common stocks, the fund's share price, yield, and total return can fluctuate more widely than the other savings plan's options. 

Strategy

This Fund's portfolio invests in all the stocks that comprise the S&P 500 Index in the same proportions as they are represented in the Index. The S&P 500 Index is designed to reflect the industrial composition of the U.S. economy and represents approximately

75% of the total market value of all U.S. common stocks. 

Basic Materials

Communications

Consumer Cyclicals

Consumer Non-Cyclicals

Energy

Financial

Industrials

Technology

Utilities

Other

TOTAL

     3.0%

   11.6%

     8.4%

   20.2%

     9.7%

   22.1%

   11.0%

   10.6%

     3.3%

     0.1%

 100.0%

 1.   General Electric

 2.   Exxon Mobil

 3.   Citigroup Inc

 4.   Microsoft Corp.

 5.   Bank of America Corp.

 6.   AT&T Inc.

 7.   Procter & Gamble Co.

 8.   Johnson & Johnson

 9.    Pfizer Inc.

10.  Altria Group Inc.

Fund Manager

Barclays Global Investors is one of the largest equity fund manager in the securities industry with over $1.6 trillion under management and is a leader in managing equity-based "index funds".

Performance

The chart below shows the annual total return of the BGI Equity Index Fund over each of the past 10 years. Total return is the combination of dividends from stocks and changes in market value over time. 

Over the past 10 years, a hypothetical investment of $1,000 in the BGI Equity Index Fund would have grown to approximately $2,250 assuming reinvestment of all distributions.  Future results, however, may be different than past performance.

Comparison To

Other Plan Funds

The BGI Equity Index Fund offers the potential for the highest capital growth return over a long period. It has more return potential and volatility than the UMWA 401(k) Balanced Fund, Vanguard GNMA Fund, the J.P. Morgan Stable Value Fund, or the Calvert Social Investment Fund Money Market Portfolio.  Over short periods, however, the Fund can be more "risky" or volatile than other plan options because the fund may experience wide and unpredictable movements in the price of shares. 

Investment Costs

An investor in the BGI Equity Index Fund pays no commissions or sales load.  This fund does incur investment management and expense fees based on the average assets of the fund.  For the year, ended December 31, 2006 total fund operating expenses were 0.02% of average assets or $0.20 per $1,000 invested.  Plan administrative expenses are not included in these fund expenses.