Prairie Band Potawatomi Nation New Investment Options

Transcription

1 RETIREMENT SERVICES Prairie Band Potawatomi Nation New Investment Options Effective October 1, 2009 new investment options will be added to the plan. The new options are: Premier Inflation-Protected and Income (Babson Capital), Mid Cap Value (Perkins), Small Cap Value (Van Kampen), Oakmark Equity & Income and Retirement 2050 (T. Rowe Price). In addition, investment options will be discontinued from the plan on October 1, The discontinued investment options are: Premier High Yield (Babson Capital), Select Indexed Equity (Northern Trust), Spectrum Growth (T. Rowe Price), Premier Discovery Value (OFI Inst), Leveraged Company Stock (Fidelity Advisor), Select Small Co. Value (Fed Clov/TRP/Earnest), Conservative Journey, Moderate Journey, Aggressive Journey, Ultra Aggressive Journey and Real Estate (OFI). Any money remaining in the discontinued options and any investment selections for contributions designated to the discontinued options on or after October 1, 2009, will be moved as follows: DISCONTINUED INVESTMENT OPTION NEW INVESTMENT OPTION Real Estate (OFI) u Fixed Interest Account (SAGIC - Diversified Bond) Premier High Yield (Babson Capital) u Premier Inflation-Protected and Income (Babson Capital) Select Indexed Equity (Northern Trust) u Large Cap Value (Eaton Vance) Spectrum Growth (T. Rowe Price) u Growth America (American) Premier Discovery Value (OFI Inst) u Mid Cap Value (Perkins) Leveraged Company Stock (Fidelity Advisor) u Select Mid Cap Growth Equity II (T. Rowe Price) Select Small Co. Value (Fed Clov/TRP/Earnest) u Small Cap Value (Van Kampen) Conservative Journey u Retirement Income (T. Rowe Price) Moderate Journey u Retirement 2010 (T. Rowe Price) Aggressive Journey u Retirement 2030 (T. Rowe Price) Ultra Aggressive Journey u Retirement 2050 (T. Rowe Price) In light of these changes, this may be a good time to review your investments. MassMutual, our plan s service provider, offers retirement planning tools and information to help you make investment decisions and manage your retirement savings. If you wish to change your investment options for future contributions, or transfer existing balances between investment options, log on to The JourneySM at or call FLASHSM (35274). Investors should consider an investment s objectives, risks, charges and expenses carefully before investing. For this and other information on any of the investment options listed, see a fact sheet or the applicable prospectus available from MassMutual by logging onto The JourneySM at or by calling FLASHSM (35274). Read it carefully before investing. INVEST INSURE RETIRE

2 Investment Line-up as of October 1, 2009 STABLE VALUE Fixed Interest Account (SAGIC - Diversified Bond) - Portfolio managed by: Babson Capital Management LLC Objective: A fixed rate of return for a specified period of time. Portfolio: This investment option invests in a diversified portfolio of fixed income securities, including public and private bonds, mortgage- and asset-backed issues and U.S. Treasury securities. The portfolio is wrapped by a general account guarantee to pay both a stated credited rate and book value on participant-directed transfers and bona fide benefit payments. SHORT TERM BOND Premier Short-Duration Bond (Babson Capital) - Portfolio managed by: Babson Capital Management LLC Objective: Seeks to achieve a high total rate of return primarily from current income while minimizing fluctuations in capital values by investing primarily in a diversified portfolio of short-term investment grade fixed income securities. Portfolio: Normally invests at least 80% of its net assets in investment grade fixed income debt securities. These typically include U.S. dollar-denominated corporate obligations, securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities, U.S. dollar-denominated bonds of foreign issuers, securities subject to resale pursuant to Rule 144A, and mortgage-backed and other asset-backed securities. Securities issued by U.S. Government agencies or instrumentalities may not be guaranteed by the U.S. Treasury. The investment option may invest up to 10% of its total assets in below investment grade debt securities ( junk bonds ). The investment option may also invest in money market securities, including commercial paper. The investment option also uses derivative investments for hedging purposes or to otherwise seek its investment objective. INTERMEDIATE TERM BOND Total Return (PIMCO) - Portfolio managed by: Pacific Investment Management Company LLC Objective: Seeks maximum total return, consistent with preservation of capital and prudent investment management. Portfolio: Invests under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. The investment option invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities ( junk bonds ) rated B or higher by Moody s, or equivalently rated by S&P or Fitch, or, if unrated, determined to be of comparable quality. The investment option may invest up to 30% of its total assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The investment option may invest up to 15% of its total assets in securities and instruments that are economically tied to emerging market countries. The invesment option will normally limit its foreign currency exposure (from non-u.s. dollar-denominated securities or currencies) to 20% of its total assets. The investment option may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The investment option may not invest in equity securities. NEW Premier Inflation-Protected and Income (Babson Capital) - Portfolio managed by: Babson Capital Management LLC. Objective: Seeks to achieve as high a total rate of real return on an annual basis as is considered consistent with prudent investment risk and the preservation of capital. Portfolio: Invests in a portfolio of securities expected to provide an attractive rate of real return. Normally invests at least 80% of its net assets in inflation-indexed bonds and other income-producing securities. The investment option may hold a portion of its assets in cash. The investment option may also invest in other income-producing securities of any kind, issued by governmental or private issuers. The investment option will maintain an average credit quality of A or better (determined on the basis of the credit ratings of the investment option's investments at the time of their purchase). The investment option may invest up to 20% of its assets in non-u.s. holdings, but will normally (though it will not necessarily) hedge foreign-currency risk back to the U.S. dollar.

3 LARGE CAP VALUE Large Cap Value (Eaton Vance) - Portfolio managed by: Boston Management and Research Objective: Seeks total return. Portfolio: Under normal market conditions, invests primarily in value stocks of large-cap companies. The portfolio manager generally considers large-cap companies to be those companies having market capitalizations equal to or greater than the median capitalization of companies included in the Russell 1000 Value Index. The investment option normally invests at least 80% of its net assets in equity securities of large-cap companies. The investment option primarily invests in dividend-paying stocks. If investment option (and class) expenses exceed income, investment option shareholders will not receive income distributions. The investment option may invest in convertible debt securities (including securities rated below investment grade). The investment option may also invest in real estate investment trusts for income. LARGE CAP GROWTH Growth America (American) - Portfolio managed by: Capital Research and Management Company Objective: Provide growth of capital. Invests primarily in common stocks. Portfolio: Seeks to invest in attractively valued companies that, in the investment adviser's opinion, represent good long-term investment opportunities. MID CAP VALUE NEW Mid Cap Value (Perkins) - Portfolio managed by: Perkins Investment Management LLC Objective: Seeks capital appreciation. Portfolio: The investment option pursues its objective by investing primarily in common stocks selected for their capital appreciation potential. It primarily invests in the common stocks of mid-sized companies whose stock prices the portfolio managers believe to be undervalued. Under normal circumstances, it invests at least 80% of its assets in equity securities of companies whose market capitalization falls, at the time of purchase, within the 12-month average of the capitalization range of the Russell Midcap Value Index. The option focuses on companies that have fallen out of favor with the market or that appear to be temporarily misunderstood by the investment community. To a lesser degree, the option also invests in companies that demonstrate special situations or turnarounds, meaning companies that have experienced significant business problems but are believed to have favorable prospects for recovery. MID CAP GROWTH Select Mid Cap Growth Equity II (T. Rowe Price) - Portfolio managed by: T. Rowe Price Associates, Inc. Objective: Seeks growth of capital over the long-term. Portfolio: Seeks to achieve its objective by investing, under normal conditions, at least 80% of its net assets in a broadly diversified portfolio of common stocks of mid-cap companies whose earnings the subadviser expects to grow at a faster rate than the average company. SMALL CAP VALUE NEW Small Cap Value (Van Kampen) - Portfolio managed by: Van Kampen Asset Management Objective: Seeks capital appreciation. Portfolio: Investing primarily in a portfolio of equity securities of small capitalization companies that the investment adviser believes are undervalued. The investment option's investments in equity securities include common and preferred stocks securities convertible into common and preferred stocks. The investment option emphasizes a value style of investing seeking companies that the investment adviser believes are undervalued improved valuations relative to other companies. SMALL CAP GROWTH New Horizons (T. Rowe Price) - Portfolio managed by: T. Rowe Price Associates, Inc. Objective: Seeks long-term capital growth by investing primarily in common stocks of small, rapidly growing companies. Portfolio: Invests primarily in a diversified group of small, emerging growth companies, preferably early in the corporate life cycle before a company becomes widely recognized by the investment community. May also invest in companies that offer the possibility of accelerating earnings growth because of rejuvenated management, new products, or structural changes in the economy. While most assets will be invested in U.S. common stocks, other securities may also be purchased, including foreign stocks, futures, and options, in keeping with the investment option's objectives. INTERNATIONAL/GLOBAL LARGE CORE EuroPacific Growth (American Funds) - Portfolio managed by: Capital Research and Management Company. Objective: Provide long-term growth of capital. Portfolio: Normally, the investment option will invest at least 80% of its assets in securities of issuers located in Europe and the Pacific Basin. Various factors will be considered when determining whether a country is part of Europe, including whether a country is part of the MSCI European indexes. A country will be considered part of the Pacific Basin if any of its borders touch the Pacific Ocean. Mutual Global Discovery (Franklin) - Portfolio managed by: Franklin Mutual Advisers, LLC Objective: Seeks capital appreciation. Portfolio: Invests primarily in equity securities of U.S. and foreign companies the manager believes are undervalued. Currently invests the equity portion of its portfolio primarily to predominantly in midand large cap companies, with the remaining portion of its equity portfolio in smaller companies. Expects to invest substantially and may invest up to 100% of its assets in foreign securities, which may include sovereign debt and participations in foreign government debt. The investment option presently does not intend to invest more than a portion (no more than 25%) of its assets in securities of issuers located in emerging market countries. ASSET ALLOCATION/LIFESTYLE NEW Oakmark Equity & Income - Portfolio managed by: Harris Associates L.P. Objective: Seeks income and preservation and growth of capital. Portfolio: Invests between 50% and 75% of assets in equities and between 25% and 50% of assets in U.S. government and corporate debt rated AA or higher

4 ASSET ALLOCATION/LIFECYCLE Retirement Income (T. Rowe Price) - Portfolio managed by: T. a diversified portfolio consisting of about 40% stocks and 60% bonds. Portfolio: Seeks to achieve its objective by investing in a set of underlying T. Rowe Price investment options representing various asset classes and sectors. Retirement 2010 (T. Rowe Price) - Portfolio managed by: T. a diversified portfolio of T. Rowe Price stock and bond investment options. The investment s allocation between T. Rowe Price stock and bond investment options will change over time. Portfolio: Seeks to achieve its objective by investing in a set of underlying T. Rowe Price investment options representing various asset classes and sectors. The investment option is managed to a specific retirement year (target date) included in its name. Over time, the allocation to asset classes and investment options will change according to a predetermined glide path." (The glide path represents the shifting of asset classes over time). The investment option s asset mix becomes more conservative both prior to and after retirement as time elapses. This reflects the need for reduced investment risks as retirement approaches and the need for lower volatility of a portfolio, which may be a primary source of income after retiring. Once an investment option reaches its most conservative planned allocation, approximately 30 years after its stated retirement year, its allocation to stocks will remain fixed at approximately 20% of assets. The remainder will be invested in fixed-income securities. Retirement 2020 (T. Rowe Price) - Portfolio managed by: T. a diversified portfolio of T. Rowe Price stock and bond investment options. The investment s allocation between T. Rowe Price stock and bond investment options will change over time. Portfolio: Seeks to achieve its objective by investing in a set of underlying T. Rowe Price investment options representing various asset classes and sectors. The investment option is managed to a specific retirement year (target date) included in its name. Over time, the allocation to asset classes and investment options will change according to a predetermined glide path." (The glide path represents the shifting of asset classes over time). The investment option s asset mix becomes more conservative both prior to and after retirement as time elapses. This reflects the need for reduced investment risks as retirement approaches and the need for lower volatility of a portfolio, which may be a primary source of income after retiring. Once an investment option reaches its most conservative planned allocation, approximately 30 years after its stated retirement year, its allocation to stocks will remain fixed at approximately 20% of assets. The remainder will be invested in fixed-income securities. Retirement 2030 (T. Rowe Price) - Portfolio managed by: T. a diversified portfolio of T. Rowe Price stock and bond investment options. The investment s allocation between T. Rowe Price stock and bond investment options will change over time. Portfolio: Seeks to achieve its objective by investing in a set of underlying T. Rowe Price investment options representing various asset classes and sectors. The investment option is managed to a specific retirement year (target date) included in its name. Over time, the allocation to asset classes and investment options will change according to a predetermined glide path." (The glide path represents the shifting of asset classes over time). The investment option s asset mix becomes more conservative both prior to and after retirement as time elapses. This reflects the need for reduced investment risks as retirement approaches and the need for lower volatility of a portfolio, which may be a primary source of income after retiring. Once an investment option reaches its most conservative planned allocation, approximately 30 years after its stated retirement year, its allocation to stocks will remain fixed at approximately 20% of assets. The remainder will be invested in fixed-income securities. Retirement 2040 (T. Rowe Price) - Portfolio managed by: T. a diversified portfolio of T. Rowe Price stock and bond investment options. The investment s allocation between T. Rowe Price stock and bond investment options will change over time. Portfolio: Seeks to achieve its objective by investing in a set of underlying T. Rowe Price investment options representing various asset classes and sectors. The investment option is managed to a specific retirement year (target date) included in its name. Over time, the allocation to asset classes and investment options will change according to a predetermined glide path." (The glide path represents the shifting of asset classes over time). The investment option s asset mix becomes more conservative both prior to and after retirement as time elapses. This reflects the need for reduced investment risks as retirement approaches and the need for lower volatility of a portfolio, which may be a primary source of income after retiring. Once an investment option reaches its most conservative planned allocation, approximately 30 years after its stated retirement year, its allocation to stocks will remain fixed at approximately 20% of assets. The remainder will be invested in fixed-income securities.

5 NEW Retirement 2050 (T. Rowe Price) - Portfolio managed by: T. Rowe Price Retirement Funds, Inc. Objective: The highest total return over time consistent with an emphasis on both capital growth and income. The portfolio manager pursues this objective by investing in a diversified portfolio of T. Rowe Price stock and bond investment options. The investment s allocation between T. Rowe Price stock and bond investment options will change over time. Portfolio: Seeks to achieve its objective by investing in a set of underlying T. Rowe Price investment options representing various asset classes and sectors. The investment option is managed to a specific retirement year (target date) included in its name. Over time, the allocation to asset classes and investment options will change according to a predetermined glide path." (The glide path represents the shifting of asset classes over time). The investment option s asset mix becomes more conservative both prior to and after retirement as time elapses. This reflects the need for reduced investment risks as retirement approaches and the need for lower volatility of a portfolio, which may be a primary source of income after retiring. Once an investment option reaches its most conservative planned allocation, approximately 30 years after its stated retirement year, its allocation to stocks will remain fixed at approximately 20% of assets. The remainder will be invested in fixed-income securities.

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7 NOTES:

8 RISK DISCLOSURES FOR CERTAIN ASSET CATEGORIES - PLEASE NOTE THAT YOUR PLAN MAY NOT OFFER ALL OF THE INVESTMENT OPTIONS DISCUSSED BELOW. If a retirement plan fully or partially terminates its investment in the Guaranteed Interest Account (GIA), SF Guaranteed, Fixed Interest Account or SAGIC investment options, the plan receives the liquidation value of its investment, which may either be more or less than the book value of its investment. As a result of this adjustment, a participant s account balance may be either increased or decreased if the plan fully or partially terminates the contract with MassMutual. Money market investments are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these investments seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market option. Risks of investing in inflation-protected bond investments include credit risk and interest rate risk. Neither the bond investment nor its yield is guaranteed by the US Government. High yield bond investments are generally subject to greater market fluctuations and risk of loss of income and principal than lower yielding debt securities investments. Investment option(s) that track a benchmark index are professionally managed investments. However, the benchmark index itself is unmanaged and does not incur fees or expenses and cannot be purchased directly for investment. Investments in companies with small market capitalization ( small caps ) may be subject to special risks given their characteristic narrow markets, limited financial resources, and less liquid stocks, all which may cause price volatility. International investing can involve special risks, such as, political changes and currency fluctuations. These risks are heightened in emerging markets. You cannot transfer into international investment options if you have already made a purchase followed by a sale (redemption) involving the same investment within the last thirty days. In addition, you may not request a transfer into international investment options between 2:30 and 4 p.m. ET. Other trading restrictions may apply. Please see the investment s prospectus for more details. Participants with a large ownership interest in a company or employer stock investment option may have the potential to manipulate the value of units of this investment option through their trading practices. As a result, special transfer restrictions may apply. This type of investment option presents a higher degree of risk than diversified investment options under the plan because it invests in the securities of a single company. Investments may reside in the specialty category due to 1) allowable investment flexibility that precludes classification in standard asset categories and/or 2) investment concentration in a limited group of securities or industry sector(s). Investments in this category may be more volatile than less-flexible and/or less-concentrated investments and may be appropriate as only a minor component in an investor s overall portfolio. A significant percentage of the underlying investments in ultra aggressive asset allocation portfolio options have a higher than average risk exposure. Investors should consider their risk tolerance carefully before choosing such a strategy. Such investment options include any ultra aggressive asset allocation portfolio options that may be offered under the plan as well as MassMutual s Destination Retirement 2040, and Ultra Aggressive Journey options. It is important to note that an investment option with mutual funds in its portfolio may be subject to the expenses of those mutual funds in addition to those of the investment option itself. Rather than present this as the task of planning and preparing, we call it a place named Prepared USA. We want you to be in Prepared USA because once you arrive; you'll never want to leave. Planning brings forth confidence and peace of mind this is Prepared USA. Securities offered through registered representatives of MML Investor Services, Inc., 1295 State Street, Springfield, MA (c) 2007 Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is the fleet name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates. N.Y. First Class Mail U.S. Postage Paid Permit No.50 Return Address To Be Entered During the Ordering Process IN G D A LE FA RM