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UMWA H & R Funds
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THE UMWA CASH DEFERRED SAVINGS PLAN OF 1988
INVESTMENT OPTION:
UMWA JP Morgan Stable Value Fund
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| Fact Sheet - Additional Information from JP Morgan Asset Management | |
| Objective | The UMWA J.P. Morgan Stable Value Fund seeks preservation of principal with higher current income than a money market fund, during normal market conditions. |
| Investment Type | The UMWA J.P. Morgan Stable Value Fund is a separate account that holds units of several J.P. Morgan short-term bond funds and individual fixed income securities chosen by J.P. Morgan. J.P. Morgan also negotiates insurance wrap contracts for the portfolio that ensure principal protection. |
| Investment Risk and Return | The Fund seeks higher return and similar risk compared to money market funds. The Fund’s returns may lag money market returns for short periods in rapidly raising interest rate environment. |
| Strategy | The Fund invests in diverse portfolios of high quality fixed income securities that provide a stable income with reasonable liquidity. The advisor uses wrap contracts that are issued by insurance companies and banks to provide stability of principal. The Fund may also invest in individual high quality short-term securities to meet liquidity needs. |
| Fund Manager | J.P. Morgan Asset Management is one of the oldest investment management firms in the nation. Founded in 1873, the manager has nearly $935 billion in assets currently under management including approximately $10 billion in stable value fund assets. |
| Performance | The UMWA J.P. Morgan Stable Value Fund inception date is October 3, 2006. Actual performance for the CDSP will not be available until the end of the quarter. The manager estimates the annualized 4th quarter net of fee returns for 2006 will be in the range of 5.0% to 5.5% net of fees. |
| Comparison To Other Plan Funds | The UMWA J.P. Morgan Stable Value Fund is a low risk investment option offering income with stability of principal similar to the Calvert Social Investment Fund Money Market. The Fund offers less return potential than the Vanguard GNMA Fund, the UMWA 401(k) Balanced Fund, the Fidelity Equity-Income Fund, and the BGI Equity Index Fund. |
| Investment Costs | An investor in the Fund pays no commissions or sales load. This fund incurs investment management fees and operating expenses based on the average assets of the fund. The total fees and expenses are estimated to be 0.38% per average assets balance or $3.80 per $1,000 invested. |
UMWA H & R Funds
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