Large Cap Growth Equity Fund... Benchmark

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1 Release Date: Large Cap Growth Equity Fund... Benchmark Morningstar Category Russell 1000 Growth Index Large Growth Investment Objective & Strategy This Fund seeks long-term capital appreciation by investing primarily in large company stocks listed on major U.S. stock exchanges. The Fund has risk characteristics comparable to those of the Russell 1000 Growth Index. The Fund s multi-manager structure includes investments in Sands Capital Select Growth Equity, T. Rowe Price Large Cap Growth, and SSgA US Government Money Market. Sands and T. Rowe Price aim to enhance returns by typically investing in superior stocks with a focus on growing businesses and improving fundamentals, while the SSgA US Government Money Market is utilized for liquidity, and aims to produce income while preserving capital and liquidity. Fees and Expenses as of Total Operating Expense 0.51% Operations and Inception Date Investment Advisor(s) Multiple Managers Issuer See Disclosure Volatility Analysis Investment Low Moderate High Category In the past, this investment has shown a wide range of price fluctuations relative to other investments. This investment may experience significant price increases in favorable markets or undergo large price declines in adverse markets. Some of this risk may be offset by owning other investments that follow different investment strategies. Best 3 Month Return Worst 3 Month Return 33.02% % (Mar '09 - May '09) (Sep '08 - Nov '08) Notes The Expense Ratio, which is an asset-weighted blend of investment management fees, will fluctuate based on asset values and market conditions; any fees quoted herein are subject to change. Please reference the disclosure page for additional fee information. The Large Cap Growth Equity Fund currently has a target allocation among the following three investment strategies: Sands Capital Select Growth Equity (48.5%), T. Rowe Price Large Cap Growth (48.5%), and SSgA US Government Money Market (3.0%). These percentage allocations are target allocations and may vary. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invests Fund assets, may change at any time without notice or approval by Plan participants. Performance YTD 1 Year 3 Year 5 Year 10 Year Since Inception Total Return% as of Investment Benchmark Average annual, if greater than 1 year Fund Return % Benchmark Return % Category Average % The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. Growth of $10,000 as of Investment $36,264 Benchmark $27, K Portfolio Analysis Composition Not Available Top 10 Holdings Not Available % Assets U.S. Stocks. Non-U.S. Stocks. Bonds. Cash. Other. % Assets Morningstar Style Box as of % Mkt Cap Giant.... Not Large. Medium. Available Small.... Micro. Morningstar Sectors % Fund Cyclical Basic Materials 0.00 Consumer Cyclical 0.00 Financial Services 0.00 Real Estate 0.00 Sensitive Communication Services 0.00 Energy 0.00 Industrials 0.00 Technology 0.00 Defensive Consumer Defensive 0.00 Healthcare 0.00 Utilities 0.00 Principal Risks as of Long-Term Outlook and Projections, Loss of Money, Not FDIC Insured, Growth Investing, Active, Market/Market Volatility, Depositary Receipts, Equity Securities, IPO, Restricted/Illiquid Securities, Regulation/Government Intervention, Suitability, Mid-Cap, Large Cap, Financials Sector, Technology Sector, Replication

2 The United Airlines Pilot Retirement Plan ("The Plan") is intended to be a participant-directed plan as described in Section 404(c) of the Employee Retirement Income Security Act of 1974 as amended. Therefore the fiduciaries of these plans are generally relieved of liability for any losses that are the result of any investment instructions given by a participant or a beneficiary of the Plans. An investment's principal value and investment return will fluctuate, so that an investor's unit values may be worth more or less than at the time of the original investment. The Funds are not FDIC-insured, may lose value and are not guaranteed by a bank or other financial institution. This information is not designed to offer investment advice. Although reliable sources are utilized to produce these reports, there is no guarantee that this data is accurate, timely, or complete. Historic performance is not an indication of future results and should not be relied upon to predict future investment returns. Investment Issuer The Funds in The Plan consist of a combination of the below mutual fund(s) and collective investment trust(s) for which there are issuers, along with other separately managed account(s) for which there are appointed investment managers but no issuer(s). Several of the Funds have a 3% target allocation to the SSgA US Government Money Market Fund for liquidity purposes. Additional details can be found in the Supplemental Information section. Money Market Fund used for liquidity: SSgA US Government Money Market, State Street Global Advisors Stable Value Fund: Stable Value Fund, Galliard Capital Diversified Bond Fund: PIMCO Total Return, Pacific Investment Loomis Sayles Multi Sector Full Discretion, Loomis, Sayles & Chicago Equity Partners Core Fixed Income, Chicago Equity Partners Total Bond Index: Vanguard Total Bond Market Index, The Vanguard Large Cap Value Equity Fund: Westwood Large Cap Equity, Westwood Holdings Group Pzena Large Cap Focused Value, Pzena Investment Total US Equity Index: Vanguard Total Stock Market Index Trust, The Vanguard Large Cap Growth Equity Fund: Sands Capital Select Growth Equity, Sands Capital, LLC T. Rowe Price Large Cap Growth, T. Rowe Price Small Cap Equity Fund: Elk Creek Partners Small Cap Growth, Elk Creek Partners LLC NWQ Small Cap Value, NWQ Investment Snyder Capital Small Cap Value, Snyder Capital, L.P. PENN Capital Micro Cap Equity, PENN Capital Global Equity Fund: Dodge & Cox Global Stock, Dodge & Cox T. Rowe Price Instl Global Growth Equity, T. Rowe Price International Equity Fund: MFS Instl International Equity, MFS Investment Dodge & Cox International Stock, Dodge & Cox Dimensional Fund Advisors Intl. Small, Dimensional Fund Advisors, L.P. Schroder Inv Mgmt Emerging Markets, Schroder Investment International Equity Index: Vanguard Total International Stock Index, The Vanguard Real Asset Fund: PIMCO Diversified Real Asset Trust, Pacific Investment Target Date Funds: SSgA US Goverment Money Market, State Street Global Advisors Stable Value Fund, Galliard Capital PIMCO Total Return, Pacific Investment Loomis Sayles Multi-Sector Full Discretion, Loomis, Sayles & Vanguard Total Stock Market Index, The Vanguard Group, Inc. Dodge & Cox Global Stock, Dodge & Cox T. Rowe Price Instl Global Growth Equity, T. Rowe Price MFS Instl International Equity, MFS Investment Dodge & Cox International Stock, Dodge & Cox Dimensional Fund Advisors Intl Small, Dimensional Fund Advisors, L.P. Chicago Equity Partners Core Fixed Income, Chicago Equity Partners Schroder Inv Mgmt Emerging Markets, Schroder Investment PIMCO Real Return II, Pacific Investment PIMCO CommoditiesPLUS, Pacific Investment PIMCO Real EstatePLUS, Pacific Investment Target Date Funds Manager The United Airlines Pilot Retirement Plan ("PRAP") Target Date Funds ("Funds") are managed by AllianceBernstein L.P. which is responsible for designing and implementing the asset allocation for the Funds. The Funds will pay an annualized fee to AllianceBernstein L.P. of $350,000. Investment Adviser Hewitt EnnisKnupp serves as an investment adviser to the Plan. The allocation directed to each underlying investment manager within each of the Funds in the Plan has been selected by the Investment Committee based on the recommendations and analysis provided by Hewitt EnnisKnupp. The individual Funds will be reviewed periodically and the Investment Committee will modify the allocations and/or underlying investment managers when deemed appropriate. Collective Trust and Separate Vehicles Neither a collective trust fund nor a separate account are mutual funds and their respective units are not registered under the Securities Act of 1933 or the Investment Act of In order to comply with the new United States Department of Labor Regulation 404(a), any fees listed below are reflective of each fund s ratio of investment management fees as well as the ratio of fees required for the fund to continue operations. The actual fees paid by participants may be lower than, or equal to, the fees listed depending on whether a fund has implemented any fee waivers during the applicable period. Stable Value Portfolio Supplemental Information The Stable Value Fund is a separate account managed by Galliard Capital, Inc (Galliard). It is not a mutual fund. Its units are not registered under the Securities Act of 1933, as amended or applicable securities laws of any state or other jurisdiction. The Fund is not registered under the Investment Act of 1940, as amended, or other applicable law and unit holders are not entitled to the protections of the 1940 Act. The Fund is not insured by Galliard, Wells Fargo, any of their affiliates, the FDIC, or any other type of deposit insurance. The Fund is managed with the objective of preserving principal. However, a credit default by a contract issuer, default on the underlying fixed income securities, or certain plan sponsor-directed events could result in a fluctuation in the unit value of the Fund and investors may lose money. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invest Fund assets, may change at any time without notice or approval by Plan participants. Stable value investments make use of investment contracts to help protect the value of the participant s investment. The insurers who back these contracts require restrictions (typically referred to as an equity wash) on transfers to what are considered "competing funds." The "equity wash" requirements are effective with respect to investments in the Stable Value Fund as of March 1, As a result: You are not able to directly transfer money from the Stable Value Fund into the Schwab Personal Choice Retirement (PCRA). If you want to move assets from the Stable Value Fund to the PCRA you must first transfer the balances to one of the other available investment options with the Plan (i.e., the "non-competing investment options in the Plan") and the assets must remain in that non-competing investment option for at least 90 days. The "equity wash" restriction runs from the transfer date plus 90 calendar days, as shown in the following example: Co-worker transfers from the Stable Value Fund to the Large-Cap Value Equity Fund. Transfer date + 90 calendar days. The restriction is effective through this date. Transfer date + 91 calendar days. The restriction is now lifted, and you are free to transfer these assets to the PCRA. The "equity wash" requirement is currently an

3 industry-standard requirement in 401(k) plans that offer stable value investment options. The Fund pays the investment manager an annualized fee according to the schedule below. The fee is based on the fair market value of the Portfolio's assets managed by the Stable Value Fund Separate Manager Website: % Diversified Bond Fund Supplemental Information The Diversified Bond Fund currently has a target allocation among the following three Investment Managers: PIMCO Total Return (48.5%), Loomis Sayles Multi Sector Full Discretion (24.25%) and Chicago Equity Partners Core Fixed Income (24.25%). The Fund also has a 3% target allocation to the SSgA US Government Money Market Fund. These percentage allocations are target allocations and may vary. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invests portfolio assets, may change at any time without notice or approval by Plan participants. The Fund is rebalanced among the investment managers according to the predetermined target allocations referenced above and policy ranges to ensure diversification of assets among various investment styles represented by the investment managers. value of the respective portion of the Fund's assets managed Diversified Bond Fund 0.36% PIMCO Total Return Separate Manager Website: % on the first $25 Million 0.38% on the next $25 Million 0.25% thereafter Loomis Sayles Multi Sector Full Discretion Collective Trust Manager Website: % on the first $15 Million 0.45% on the next $15 Million 0.30% thereafter Chicago Equity Partners Core Fixed Income Separate Manager Website: % on the first $25 Million 0.20% on the next $75 Million 0.15% thereafter 0.13% Total Bond Index Supplemental Information The Total Bond Index currently invests in the Vanguard Total Bond Market Index Fund. The investment manager utilized by the Fund, as well as the manner in which such investment manager actually invests Fund assets, may change at any time without notice or approval by Plan participants. Vanguard Total Bond Market Index Fund Mutual Fund Ticker: VBTIX Manager Website: % Large Cap Value Equity Fund Supplemental Information The Large Cap Value Equity Fund currently has a target allocation among the following two Investment Managers: Westwood Large Cap Equity (58.2%) and Pzena Large Cap Focused Value (38.8%). The Fund also has a 3% target allocation to the SSgA US Government Money Market Fund. These percentage allocations are target allocations and may vary. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invests portfolio assets, may change at any time without notice or approval by Plan participants. The Fund is rebalanced among the investment managers according to the predetermined target allocations referenced above and policy ranges to ensure diversification of assets among various investment styles represented by the investment managers. Large Cap Value Equity Fund 0.44% Westwood Large Cap Equity Separate Manager Website: % on the first $25 Million 0.55% on the next $25 Million 0.40% on the next $50 Million 0.30% thereafter Pzena Large Cap Focused Value Separate Manager Website: % on the first $25 Million 0.50% on the next $75 Million 0.40% on the next $200 Million 0.35% thereafter 0.13% Total US Equity Index Supplemental Information The Total US Index currently invests in the Vanguard Total Stock Market Index Trust. The investment manager utilized by the Fund, as well as the manner in which such investment manager actually invests Fund assets, may change at any time without notice or approval by Plan participants. Vanguard Total Stock Market Index Collective Trust Manager Website: % Large Cap Growth Equity Fund Supplemental Information The Large Cap Growth Equity Fund currently has a target allocation among the following two Investment Managers: Sands Capital Select Growth Equity (48.5%) and T. Rowe Price Large Cap Growth (48.5%). The Fund also has a 3% target allocation to the SSgA US Government Money Market Fund. These percentage allocations are target allocations and may vary. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invests portfolio assets, may change at any time without notice or approval by Plan participants. The Fund is rebalanced among the investment managers according to the predetermined target allocations referenced above and policy ranges to ensure diversification of assets among various investment styles represented by the investment managers. Large Cap Growth Equity Fund 0.51% Sands Capital Select Growth Equity Separate Manager Website: % on the first $50 Million 0.50% thereafter T. Rowe Price Large Cap Growth Separate Manager Website: % on the first $50 Million 0.45% thereafter 0.13% Small Cap Equity Fund Supplemental Information The Small Cap Equity Fund currently has a target allocation among the following four Investment Managers: Elk Creek Partners Small Cap Growth (33.95%), NWQ Small Cap Value

4 (24.25%), Snyder Capital Small Cap Value (29.1%) and PENN Capital Micro Cap Equity (9.7%). The Fund also has a 3% target allocation to the SSgA US Government Money Market Fund. These percentage allocations are target allocations and may vary. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invests portfolio assets, may change at any time without notice or approval by Plan participants. The Fund is rebalanced among the investment managers according to the predetermined target allocations referenced above and policy ranges to ensure diversification of assets among various investment styles represented by the investment managers. Small Cap Equity Fund 0.78% Elk Creek Partners Small Cap Growth - Separate Manager Website: % on the first $100 Million 0.70% on the next $100 Million 0.65% thereafter NWQ Small Cap Value - Separate Manager Website: % on the first $75 Million 0.70% thereafter Snyder Capital Small Cap Value - Separate Manager Website: % on the first $30 Million 0.90% on the next $20 Million 0.75% on the next $50 Million 0.70% on the next $50 Million 0.65% thereafter PENN Capital Micro Cap Equity - Separate Manager Website: % 0.13% Global Equity Fund Supplemental Information The Global Equity Fund currently has a target allocation among the following two Investment Managers: Dodge & Cox Global Stock (60%) and T. Rowe Price Instl Global Growth Equity (40%). These percentage allocations are target allocations and may vary. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invests portfolio assets, may change at any time without notice or approval by Plan participants. The Fund is rebalanced among the investment managers according to the predetermined target allocations referenced above and policy ranges to ensure diversification of assets among various investment styles represented by the investment managers. Global Equity Fund 0.70% Dodge & Cox Global Stock Mutual Fund Ticker: DODWX Manager Website: % T. Rowe Price Instl Global Growth Equity Mutual Fund Ticker: RPIGX Manager Website: % International Equity Fund Supplemental Information The International Equity Fund currently has a target allocation among the following four Investment Managers: MFS Instl International Equity (36.5%), Dodge & Cox International Stock (36.5%), Dimensional Fund Advisors International Small (12%) and Schroder Investment Emerging Markets (15%). These percentage allocations are target allocations and may vary. The investment manager(s) utilized by the Fund, as well as the manner in which such investment manager(s) actually invests portfolio assets, may change at any time without notice or approval by Plan participants. The Fund is rebalanced among the investment managers according to the predetermined target allocations referenced above and policy ranges to ensure diversification of assets among various investment styles represented by the investment managers. International Equity Fund 0.74% MFS Instl International Equity Mutual Fund Ticker: MIEIX Manager Website: % Dodge & Cox International Stock Mutual Fund Ticker: DODFX Manager Website: % DFA International Small Fund Mutual Fund Ticker: DFISX Manager Website: % Schroder Investment Emerging Markets Collective Trust Manager Website: % on the first $50 Million 0.96% on the next $50 Million 0.86% on the next $100 Million 0.71% on the next $50 Million 0.66% thereafter International Equity Index Supplemental Information The International Equity Index currently invests in the Vanguard Total International Stock Index Fund. The investment manager utilized by the Fund, as well as the manner in which such investment manager actually invests Fund assets, may change at any time without notice or approval by Plan participants. Vanguard Total International Stock Index Fund Mutual Fund Ticker: VTSNX Manager Website: % Real Asset Supplemental Information The Real Asset Fund currently invests in the PIMCO Diversified Real Asset Trust. The investment manager utilized by the Fund, as well as the manner in which such investment manager actually invests Fund assets, may change at any time without notice or approval by Plan participants. PIMCO Diversified Real Asset Trust Collective Trust Manager Website: % PRAP Target Date Funds Supplemental Information (Target Date Retirement Fund, Target Date 2000 Fund, Target Date 2005 Fund, Target Date 2010 Fund, Target Date 2015 Fund, Target Date 2020 Fund, Target Date 2025 Fund, Target Date 2030 Fund, Target Date 2035 Fund, Target Date 2040 Fund, Target Date 2045 Fund, Target Date 2050 Fund, Target Date 2055 Fund) The target allocation percentages referenced in the Investment Strategy section on each of the Target Date Fund profiles are target allocations and may vary. The investment manager(s) utilized by the Target Date Funds, as well as the manner in which such investment manager(s) actually invests portfolio assets, may change at any time without notice or approval by Plan participants. The performance of each of the Target Date Funds depends on the allocation of its assets among and the performance of the underlying investment managers. The value of the Funds will vary on a daily basis based on its performance and can be worth more or less than the day of purchase. The Funds are exposed to specific risks as they relate to potential

5 volatility in the domestic and international stock markets, as well as interest rate and credit risks in the bond market. Since the Funds invest in various asset classes, the combined risk is likely to be somewhat lower than those of a portfolio invested in only equities and higher than a portfolio invested only in bonds. Rebalancing The PRAP Target Date Funds are monitored and may be rebalanced on a monthly basis if certain criteria are met. On a quarterly basis the asset allocation of the PRAP Target Date Funds will progress along the glidepath towards more conservative investments. Allocation of Stocks and Bonds Exhibit The allocation of stocks and bonds exhibit illustrates the target percentage allocated to stocks, bonds, and diversifiers based upon years to retirement. The allocation represents assets invested in the following: US Equity managed by Vanguard; International Equity managed by Dodge & Cox, Dimensional Fund Advisors, MFS Investment, and Schroders; Global Equity managed by Dodge & Cox and T. Rowe Price; Real Estate and Commodities managed by PIMCO; Unconstrained Bonds managed by Loomis, Sayles & ; Diversified Bonds managed by PIMCO, Loomis, Sayles & and Chicago Equity Partners; Inflation-Protected Securities managed by PIMCO; and Stable Value managed by Galliard Capital. The "Years Until Retirement" label on the horizontal axis is defined as the number of years until age 65. Expense Ratio investment management fees, will fluctuate based on asset values and market conditions; any fees quoted herein are subject to change. The Expense Ratio also includes the advisory fee paid to AllianceBernstein L.P. for asset allocation development and oversight (See Target Date Funds Manager Section). The Target Date Funds are composed of the Plan s investment options and other investments. The investment management fees of the underlying investments are shown below. The fees are based on the fair market value of the respective portion of each of the Target Date Fund's assets managed by each investment manager and are subject to change. For target allocations, see the Investment Strategy section of the appropriate Target Date Fund. The table below shows the fees for each Target Date Fund followed by the underlying component funds. Target Date Retirement Fund: 0.43% Target Date 2000 Fund: 0.43% Target Date 2005 Fund: 0.43% Target Date 2010 Fund: 0.44% Target Date 2015 Fund: 0.44% Target Date 2020 Fund: 0.44% Target Date 2025 Fund: 0.44% Target Date 2030 Fund: 0.44% Target Date 2035 Fund: 0.43% Target Date 2040 Fund: 0.42% Target Date 2045 Fund: 0.42% Target Date 2050 Fund: 0.42% Target Date 2055 Fund: 0.42% Stable Value Fund 0.34% Diversified Bond Fund 0.36% Loomis Sayles Multi-Sector Fixed Income 0.57% on the first $15 Million 0.45% on the next $15 Million 0.30% thereafter Total U.S. Equity Index 0.018% Global Equity Fund 0.70% International Equity Fund 0.74% PIMCO Real Return II 0.35% PIMCO CommoditiesPLUS 0.69% PIMCO Real EstatePLUS 0.69% Risks of Funds: Active Risk: The Fund is actively managed and its performance therefore will reflect in part the ability of the portfolio managers to make investment decisions that are suited to achieving the Portfolio's investment objective. Due to its active management, the Portfolio could underperform other investment funds with similar investment objectives. Issuer Risk: An issuer may perform poorly, and therefore, the value of its stocks and bonds may decline. Poor performance may be caused by poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, or other factors. Fixed-Income Risk: Investments in fixed-income securities are subject to certain risks, such as interest rate risk, credit/default risk, investment grade securities risk and pre-payment risk. Generally, a rise in interest rates causes the value of a bond to decrease, and vice versa. Foreign Securities/Emerging Market Risk: Investments in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Emerging market risk is the risk of investing in countries that may have instability in their politics or economic environment and are not considered developed. Currency risk is the risk of currency fluctuations relative to the US Dollar. Market Risk: The market value of securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. The market value of securities may fluctuate, sometimes rapidly and unpredictably. This risk is generally greater for small and mid-sized companies, which tend to be more vulnerable to adverse developments. In addition, focus on a particular style, for example, investment in growth or value securities, may cause the Portfolio to underperform other investment funds if that style falls out of favor with the market. Small and Mid-Sized Risk: Investments in small and medium companies often involve greater risks than investments in larger, more established companies because small and medium companies may lack the management experience, financial resources, product diversification, experience, and competitive strengths of larger companies. Additionally, in many instances the securities of small and medium companies are traded only over-the-counter or on regional securities exchanges and the frequency and volume of their trading is substantially less and may be more volatile than is typical of larger companies. Dividends Any dividends or interest paid with respect to any of the holdings of the Portfolio will be held in the Portfolio and reinvested. Participants, alternate payees and their beneficiaries are not entitled to receive dividend or interest distributions from the Portfolio, but dividend and/or interest will be reflected in the NAV of the Portfolio. Morningstar Style Box The Morningstar Style Box reveals a fund's investment strategy as of the date noted on this report. For equity funds the vertical axis shows the market capitalization of the long stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information Morningstar accepts credit ratings reported by fund companies that have been issued by all Nationally Recognized Statistical Rating Organizations (NRSROs). For a list of all NRSROs, please visit Additionally, Morningstar accepts foreign credit ratings from widely recognized or registered rating agencies. If two rating organizations/agencies have rated a security, fund companies are to report the lower rating; if three or more organizations/agencies have rated a security, fund companies are to report the median rating, and in cases where there are more than two organization/agency ratings and a median rating does not exist, fund companies are to use the lower of the two middle ratings. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO or rating agency ratings can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When

6 classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. Portfolio Analysis: Composition Exhibit When a portfolio contains only long-positioned securities that sum to 100% of the portfolio's value, a pie graph is displayed to illustrate the investment's percentage allocation to U.S. Stocks, Non-U.S. Stocks, Bonds, Cash and Other. When a portfolio contains short and/or derivative positions, a bar chart is displayed. The x-axis of the bar chart represents the percentage each investment group holds, with the y-axis representing a zero value. Portions of a bar to the right of the y-axis represent positive, or "long", security positions, while portions of a bar to the left of the y-axis represent negative, or "short", security positions. The table to the right of the bar chart sums these two positions to present the "net" emphasis of each investment group. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-us taxable and non-us domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years. Volatility Analysis Morningstar's Volatility Analysis is based on the investment's 3-year standard deviation overall percentile rank within its investment category universe at Morningstar. Specific investment portfolios are then classified as having one of three volatility levels relative to all types of mutual fund investments: Low, Moderate, and High which are further described below. Investments with wider ranges of returns are labeled "high," as they are considered riskier than "low" volatility investments, which have had smaller ranges of returns. Only a category average is shown for investment portfolios that have not been in existence for at least three years. Low: In the past, this investment or category has shown a relatively small range of price fluctuations relative to other investments. Based on this measure, currently more than two thirds of all investments have shown higher levels of risk. This investment may appeal to investors looking for a conservative investment strategy. Moderate: In the past, this investment has shown a relatively moderate range of price fluctuations relative to other investments. This investment may experience larger or smaller price declines or price increases depending on market conditions. High: In the past, this investment has shown a wide range of price fluctuations relative to other investments. This investment may experience significant price increases in favorable markets or undergo large price declines in adverse markets. N/A: The volatility measure is not displayed for investments with fewer than three years of history.