Core Plus Fixed Income

Investment Objective
The investment objective of this product is to provide excess investment returns relative to the Lehman Brothers U.S. Aggregate Bond Index. The portfolio is predominately invested in high quality U.S. government, agency, corporate, and asset-backed debt obligations.

The portfolio may be invested up to 40%, determined at the time of purchase, in the following investment alternatives:
• Mortgage Backed Security ETF (MBB)
• High Yield Corporate Security ETF (HYG)
• US$ Emerging Market Sovereign Bonds
• Major Foreign Currency ETFs

A minimum of 60% of portfolio investments are rated investment grade by a nationally recognized rating agency. The minimum average credit quality of the portfolio is Baa/BBB.

The duration of the portfolio is actively managed within a conservative range (+/-25%) compared to that of the Lehman Aggregate Bond Index and sector weightings are the result of the firm's security selection and portfolio construction process.

Instruments
• U.S. Treasury Securities
• U.S. Agency Securities
• Investment Grade Asset Backed Securities
• Investment Grade Credit Securities
• iShares Lehman MBS ETF
• US iBoxx $ High Yield Corporate ETF
• US$ EM Sovereign Bonds
• Foreign Currency ETFs

Benchmark
Lehman Brothers Aggregate Maturity Bond Market Index