Hypothetical LifeSpan SM custom portfolio performance report Prince William County Public Schools 403(b) Supplemental Retirement Plan The returns shown here are based on hypothetical account balances for selected LifeSpan custom portfolios available in your employer s plan. LifeSpan custom portfolios use investment options available in the Lincoln Alliance program and are designed as a tool for individuals to select the investment options best aligning with their retirement goals. Your plan may make available time-based or risk-based portfolios. LifeSpan custom portfolios represent an allocation of monies to the individual funds rather than being funds themselves or what is known as a fund of funds. The combined historical returns assume investments in the current portfolio allocation and don t reflect changes to the portfolio allocation due to previous portfolio ups, including the addition or removal of investment options. The historical returns also don t take into account salary deferrals or contribution rates. Total return information takes into account the performance of each underlying fund and applies the asset allocation percentage to determine the total weighted return figures provided. Total return includes capital appreciation (depreciation), realized gains (losses), plus dividend or interest income. The returns reflect the reinvestment of dividends and capital gains and total annual fund operating s. 1 A participant s actual returns will vary based upon the timing of deposits into the funds throughout the year. Asset allocation does not guarantee that the account balance will increase nor will it protect against a decline if market prices fall. If a participant chooses to participate in an asset allocation program, he or she is responsible for determining which portfolio is best for them. Tools used to assess his or her risk tolerance may not be accurate if his or her circumstances change over time. Although each portfolio is intended to maximize returns given various levels of risk tolerance, a portfolio may not perform as intended. Market, asset class or allocation option class performance may differ in the future from historical performance and from the assumptions upon which the portfolio was based, which could cause a portfolio to be ineffective or less effective in reducing volatility. A portfolio may perform better or worse than any single fund, allocation option, or any other combination of funds or allocation options. In addition, the timing of the investment and automatic rebalancing may affect performance. 1 All information about each investment option is provided by Morningstar, Inc. or Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corpon and its affiliates. For plan sponsor use only.
Fund name Retirement income 2015 2020 2025 2030 Lincoln Fixed Annuity - 0.20-3.00 3.00 3.67 65% 62% 51% 43% 36% PIMCO Total Return Instl PTTRX 0.46 5/11/1987 0.31 3.66 6.01 5% 6% 7% 7% 7% Vanguard Total Bond Market Index I VBTIX 0.06 9/18/1995 1.83 3.72 4.89 5% 5% 7% 7% 6% Invesco Equity and Income Y ACETX 0.56 12/22/2004-3.13 7.31 5.98 AllianzGI NFJ Dividend Value Admin ANDAX 0.96 5/8/2000-4.37 7.94 4.49 3% 3% 4% 6% 7% American Funds Washington Mutual A LW AWSHX 0.58 7/31/1952 1.43 11.06 6.65 4% 4% 5% 6% 7% Vanguard Institutional Index I VINIX 0.04 7/31/1990 1.77 11.55 7.01 MainStay Large Cap Growth R1 MLRRX 0.84 4/1/2005-2.89 9.68 7.69 8% 8% 9% 12% 15% JHancock Disciplined Value Mid Cap R4 JVMTX 1.12 7/2/2013-2.50 11.69 12.07 1% 1% 2% 2% 3% Morgan Stanley Inst Mid Cap Growth I MPEGX 0.75 3/30/1990-17.32 2.37 5.43 1% 1% 2% 2% 3% AllianzGI NFJ Small-Cap Value Admin PVADX 1.12 11/1/1995-8.87 5.50 6.47 2% 2% 2% 3% 4% Prudential Jennison Small Company Z PSCZX 0.83 3/1/1996-8.21 7.60 6.48 1% 2% 2% 3% 3% Oppenheimer Global Y OGLYX 0.90 11/17/1998-9.27 5.84 4.63 2% 3% 4% 4% 4% American Funds Europacific Growth A LW AEPGX 0.83 4/16/1984-8.60 2.42 3.59 3% 3% 5% 5% 5% Fund name 2035 2040 2045 2050 2055 Lincoln Fixed Annuity - 0.20-3.00 3.00 3.67 33% 30% 27% 25% 22% PIMCO Total Return Instl PTTRX 0.46 5/11/1987 0.31 3.66 6.01 6% 6% 6% 5% 5% Vanguard Total Bond Market Index I VBTIX 0.06 9/18/1995 1.83 3.72 4.89 6% 6% 5% 5% 4% Invesco Equity and Income Y ACETX 0.56 12/22/2004-3.13 7.31 5.98 AllianzGI NFJ Dividend Value Admin ANDAX 0.96 5/8/2000-4.37 7.94 4.49 7% 8% 8% 9% 9% American Funds Washington Mutual A LW AWSHX 0.58 7/31/1952 1.43 11.06 6.65 8% 8% 9% 9% 9% Vanguard Institutional Index I VINIX 0.04 7/31/1990 1.77 11.55 7.01 MainStay Large Cap Growth R1 MLRRX 0.84 4/1/2005-2.89 9.68 7.69 16% 17% 18% 18% 19% JHancock Disciplined Value Mid Cap R4 JVMTX 1.12 7/2/2013-2.50 11.69 12.07 4% 4% 4% 4% 5% Morgan Stanley Inst Mid Cap Growth I MPEGX 0.75 3/30/1990-17.32 2.37 5.43 3% 3% 4% 4% 5% AllianzGI NFJ Small-Cap Value Admin PVADX 1.12 11/1/1995-8.87 5.50 6.47 4% 4% 4% 5% 5% Prudential Jennison Small Company Z PSCZX 0.83 3/1/1996-8.21 7.60 6.48 4% 4% 4% 4% 5% Oppenheimer Global Y OGLYX 0.90 11/17/1998-9.27 5.84 4.63 4% 5% 5% 6% 6% American Funds Europacific Growth A LW AEPGX 0.83 4/16/1984-8.60 2.42 3.59 5% 5% 6% 6% 6% Fund name Conservative Moderate Aggressive Lincoln Fixed Annuity - 0.10-3.00 3.00 3.67 40% 10% 5% PIMCO Total Return Instl PTTRX 0.46 5/11/1987 0.31 3.66 6.01 13% 15% 5% Vanguard Total Bond Market Index I VBTIX 0.06 9/18/1995 1.83 3.72 4.89 12% 15% 5% Invesco Equity and Income Y ACETX 0.56 12/22/2004-3.13 7.31 5.98 10% AllianzGI NFJ Dividend Value Admin ANDAX 0.96 5/8/2000-4.37 7.94 4.49 2% 8% 10% American Funds Washington Mutual A LW AWSHX 0.58 7/31/1952 1.43 11.06 6.65 3% 9% 10% Vanguard Institutional Index I VINIX 0.04 7/31/1990 1.77 11.55 7.01 5% MainStay Large Cap Growth R1 MLRRX 0.84 4/1/2005-2.89 9.68 7.69 10% 18% 20% JHancock Disciplined Value Mid Cap R4 JVMTX 1.12 7/2/2013-2.50 11.69 12.07 4% 7% Morgan Stanley Inst Mid Cap Growth I MPEGX 0.75 3/30/1990-17.32 2.37 5.43 3% 7% AllianzGI NFJ Small-Cap Value Admin PVADX 1.12 11/1/1995-8.87 5.50 6.47 4% 8% Prudential Jennison Small Company Z PSCZX 0.83 3/1/1996-8.21 7.60 6.48 4% 8% Oppenheimer Global Y OGLYX 0.90 11/17/1998-9.27 5.84 4.63 2% 5% 7% American Funds Europacific Growth A LW AEPGX 0.83 4/16/1984-8.60 2.42 3.59 3% 5% 8%
Portfolio Conservative 0.46 5.08 5.04 Moderate -2.32 6.26 5.92 Aggressive -4.71 6.99 6.25 Retirement Income 0.85 4.29 4.52 2015 0.59 4.37 4.58 2020-0.22 4.69 4.81 2025-0.79 5.14 5.04 2030-1.42 5.57 5.31 2035-1.64 5.84 5.47 2040-1.89 5.98 5.53 2045-2.28 6.11 5.60 2050-2.56 6.21 5.63 2055-2.98 6.39 5.78 This information is provided for general educational purposes and is not intended and may not serve as a primary basis for investment decisions. These portfolios may be modified, terminated, or adversely impacted by the imposition of fund trading policies. Inclusion in an allocation strategy doesn't indicate that a fund is superior to another fund not included in these portfolios. A plan participant s LifeSpan SM custom portfolio returns may be accessed via the Lincoln Alliance program plan sponsor's web site in the Personal Rate of Return section. Returns are available for any time period from the of the plan within the Lincoln Alliance program. Plan participants may call the Customer Contact Center at 800-234-3500 with questions. The performance data quoted represents past performance. Past performance does not guarantee nor predict future performance. Current performance may be lower or higher than the performance data quoted. Please keep in mind that high double-digit returns are highly unusual and cannot be sustained. Investors should be aware that returns vary due to market conditions. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. This material is authorized for distribution only when accompanied or preceded by prospectuses for the mutual funds offered as investment options for the plan. A plan participant should carefully consider the investment objectives, risks, charges and s of the investment company before investing. The prospectus contains this and other important information and should be read carefully before investing or sending money. Prospectuses for any of the mutual funds are available by calling your Lincoln representative.
Investing internationally involves risks not associated with investing solely in the United States, such as currency fluctuation, political or regulatory risk, currency exchange rate changes, differences in accounting and the limited availability of information. Funds that invest in small and/or mid-size company stocks typically are more volatile and involve greater risk, particularly in the short term, than those investing in larger, more established companies. An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share (or for the LVIP Money Market Fund $10.00 per share), it is possible to lose money by investing in the fund. Funds that target exposure to one region or industry may carry greater risk and higher volatility than more broadly diversified funds. The return of principal in bond portfolios is not guaranteed. Bond portfolios have the same interest rate, inflation, credit, dun, prepayment and market risks that are associated with the underlying bonds owned by the fund (or account). Asset allocation does not ensure a profit, nor protect against loss in a declining market. High-yield portfolios may invest in high-yield or lower-rated fixedincome securities (junk bonds) or mortgage-backed securities, with exposure to sub-prime mortgages, which may experience higher volatility and increased risk of nonpayment or default. REITs involve risks such as refinancing, economic conditions in the real estate industry, declines in property values, dependency on real estate management, property taxes, changes in interest rates and other risks associated with a portfolio that concentrates its investments in one sector or geographic region. A fund that is operated as a fund of funds invests primarily in one or more other funds rather than in individual securities. From time to time, the fund s advisor may modify the asset allocation for the underlying funds in which each fund invests including the addition of new funds. A fund s actual allocation may vary from the target strategic allocation at any point in time. Additionally, the fund s advisor may also manage assets of the underlying funds directly for a variety of purposes. Funds of this nature may be more expensive than other investment options. Investing in emerging markets can be riskier than investing in wellestablished foreign markets. International investing involves special risks not found in domestic investing, including increased political, social and economic instability, all of which are magnified in emerging markets. Any exchange-traded funds (ETFs) in this lineup are available through collective trusts or mutual funds. Investors cannot invest directly in an ETF. The target is the approximate when investors plan to retire or start withdrawing their money. Some target- funds make no changes in asset allocations after the target is reached; other target- funds continue to make asset allocation changes following the target (see prospectus for the fund's allocation strategy). The principal value is not guaranteed at any time, including at the target. Floating rate funds should not be considered alternatives to CDs or money market funds, and should not be considered as cash alternatives. Some portfolios are managed to an index that is a product of S&P Dow Jones Indices LLC (SPDJI) and have been licensed for use by one or more of the portfolio s service providers (Licensee). Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Licensee. Licensee s product(s) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index. An index is unmanaged, and one cannot invest directly in an index. Indices do not reflect the deduction of any fees. Investments in Delaware Investments VIP Series, Delaware Funds, LVIP Delaware Funds or Lincoln Life accounts managed by Delaware Investment Advisors, a series of Delaware Management Business Trust, are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46008 583 542 and its holding companies, including their subsidiaries or related companies, and are subject to investment risk, including possible delays in prepayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the series or funds or accounts, the repayment of capital from the series or funds or accounts, or any particular rate of return. The fund s risk management style is not a guarantee, and the fund's shareholders may experience losses. The fund employs hedging strategies designed to provide for downside protection during sharp downward movements in equity markets. The use of these hedging strategies could limit the upside participation of the fund in rising equity markets relative to other un-hedged funds and the effectiveness of such strategies may be impacted during periods of rapid or extreme market events. Certain funds (sometimes called "alternative funds" expect to invest in (or may invest in some) positions that emphasize alternative investment strategies and/or non-traditional asset classes and, as a result, are subject to the risk factors of those asset classes and/or investment strategies. Some of those risks may include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high yield bond exposure, index investing risk, exchange traded notes risk, industry concentn risk, leveraging risk, real estate investment risk, master limited partnership risk, master limited partnership tax risk, energy infrastructure companies risk, sector risk, short sales risk, direct investments risk, hard assets sectors risk, active trading and "overlay" risks, event driven investing risk, global macro strategies risk, temporary defensive positions and large cash positions. If you are considering investing in alternative investments funds, you should ensure that you understand the complex investment strategies sometimes employed, and be prepared to tolerate the risks of such asset classes. For a complete list of risks, as well as a discussion of risks and investment strategies, please refer to the funds prospectus. The fund may invest in derivatives, including futures, options, forwards and swaps. Investments in derivatives may cause the fund s losses to be greater than if it invested only in conventional securities and can cause the fund to be more volatile. Derivatives involve risks different from, or possibly greater than, the risks associated with other investments. The fund s use of derivatives may cause the fund s investment returns to be impacted by the performance of securities the fund does not own and result in the fund s total investment exposure exceeding the value of its portfolio. The Lincoln Stable Value Account is a group fixed annuity issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. For contracts issued in New York, the Lincoln Stable Value Account is a fixed annuity issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. A participant charge or asset-based charge may be applied to cover administrative s. These charges may result in actual performance being different than reported fund performance. Contact your representative for additional information. Fees and s reduce the assets allocated to your investments under the plan, ultimately lowering the net rate of return. In addition, the
fees and s of the investment options in your plan will negatively impact the net rate of return of those investments. Higher fees, of course, will impact the performance of your investments. If the performance for an investment option reports a difference between the gross and net, it is due to a contractual waiver that is set to expire within the next year. Expressed in percentage terms, Morningstar's calculation of total return is determined by taking the change in price, reinvesting, if applicable, all income and capital-gains distributions during that month, and dividing by the starting price. Reinvestments are made using the actual reinvestment price, and daily payoffs are reinvested monthly. 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages/losses arising from use of this information. The Lincoln Alliance program includes certain services provided by Lincoln Financial Advisors Corp. (LFA), a broker-dealer (member FINRA) and an affiliate of Lincoln Financial Group, 1300 S. Clinton St., Fort Wayne, IN 46802. Unaffiliated broker-dealers also may provide services to customers. LCN-1442711-031416