The University of North Carolina   
   A retirement program for employer-sponsored plans   

The investment pyramid illustrates the potential risk and return of each broad type of investment asset class. As you move upward toward the highest level of the pyramid, the investment options within each broad asset class provide you with an increasing opportunity for higher returns. However, with greater return potential comes greater risk.

  

Be aware that there are significant differences in risk and return potential among the investment categories within the broad asset classes. Refer to the overview of investment risks below and the fund’s prospectus for complete information on the risks involved with, and investment objective of, a particular investment.

  
Investment Option / Morningstar Category

 Stock-based Investments
 American Beacon Lg Cap Value Plan / Large Value
American Funds Capital World G/I R410 / World Stock
American Funds EuroPacific Gr R410 / Foreign Large Blend
American Funds Grth Fund of Amer R4 / Large Growth
Columbia Acorn International Z9,10 / Foreign Small/Mid Growth
Columbia Acorn USA Z9 / Small Growth
Columbia Mid Cap Value Z / Mid-Cap Value
Dreyfus MidCap Index24 / Mid-Cap Blend
Dreyfus Premier S&P Stars Opp I / Mid-Cap Growth
Dreyfus S&P 500 Index24 / Large Blend
Dreyfus Small Cap Stock Index9,24 / Small Blend
First American Real Estate Secs A13 / Specialty-Real Estate
James Small Cap9 / Small Value
Neuberger Berman Socially Resp Tr14 / Large Blend
Allocation Investments
 T. Rowe Price Retirement 2010 Adv8 / Target-Date 2000-2014
T. Rowe Price Retirement 2020 Adv8 / Target-Date 2015-2029
T. Rowe Price Retirement 2030 Adv8 / Target-Date 2030+
T. Rowe Price Retirement 2040 Adv8 / Target-Date 2030+
T. Rowe Price Retirement Income Adv8 / Target-Date 2000-2014
Bond-based Investments
 PIMCO Total Return Admin4 / Intermediate-Term Bond
Cash and Stable Value Investments
 Lincoln Fixed Annuity17
Vanguard Prime Money Market3 / Money Market Taxable
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3An 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, it is possible to lose money by investing in the fund.
4Bond funds are less volatile than stock funds, but experience higher volatility and increased credit risk when compared to other fixed income investments.
8Funds that diversify across asset classes generally have the same, but reduced, risks relative to the underlying asset classes.
9Small-cap stocks may be riskier than stocks from more established companies. Small-cap investments may not be readily converted into cash. This may affect their value so that shares, when redeemed, may be worth more or less than what they originally cost.
10International investing involves special risks not found in domestic investing, including increased political, social, economic and currency instability.
13There are special risk factors associated with REITS, such as interest rate risk and the illiquidity of the real estate market. Shares, when redeemed, may be worth more or less than the original amount invested.
14Social Awareness funds only invest in companies that meet socially responsible criteria, so exposure to certain industry sectors may be greater or less than similar funds or market indexes, and thereby may lead to performance differences.
17The Lincoln Fixed Annuity is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, 46802 on Form 28866 and state variations thereof. Guarantees are based upon the claims-paying ability of the issuer.
24With an index fund, there is no assurance that the performance of the fund will track the benchmark. An index is unmanaged and it is not possible to invest directly in an index.
 

The Morningstar® category is assigned based on the underlying securities in each portfolio as measured by the portfolio statistics and compositions over the past three years.

Investment values will fluctuate with changes in market conditions so that when you withdraw your investment it may be worth more or less than the original amount invested.

This information must be preceded or accompanied by prospectuses for the funds listed. The most current information on a specific mutual fund, including risk, fees and expenses can be viewed online at prospectus online. Paper copies of prospectuses can be requested by calling 800-234-3500. Read the prospectus carefully before investing.

Mutual funds offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 S. Clinton St., Fort Wayne, IN, 46802.


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