Asset Class Definitions

Asset Class Definitions

 Strategic allocations for 2015 for Developed International Equities in Conservative Income Builder and Moderate Growth & Income is Hedged Developed International Equities (HDIE).  HDIE are developed international equities denominated in local currencies.

Participation in asset classes may be achieved through investing in Exchange-Traded Funds (ETFs)

It is not possible to invest directly in an index.

1 http://www.standardandpoors.com/indices/main/en/us

2 http://www.russell.com/indexes/data/fact_sheets/us/russell_microcap_index.asp

3 http://www.msci.com/products/indices/tools/

PRINCIPAL RISKS

Small-, mid- and micro-cap companies may be hindered as a result of limited resources or less diverse products or services and have therefore historically been more volatile than the stocks of larger, more established companies.

Real Estate Investment Trusts (REITs) investing entails special risks, including credit risk, interest rate fluctuations and the impact of varied economic conditions.

Master Limited Partnerships (MLP) investing includes risks such as equity- and commodity-like volatility.  Also, distribution payouts sometimes include the return of principal and, in these instances, references to these payouts as "dividends" or "yields" may be inaccurate and may overstate the profitability/success of the MLP.  Additionally, there are potentially complex and adverse tax consequences associated with investing in MLPs.  This is largely dependent on how the MLPs are structured and the vehicle used to invest in the MLPs.  It is strongly recommended that an investor consider and understand these characteristics of MLPs and consult with a financial and tax professional prior to investment.

Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.

Using a currency hedge or a currency hedged product does not insulate the portfolio against losses.

In a rising interest rate environment, the value of fixed-income securities generally declines.

High-yield bonds, also known as junk bonds, are subject to greater risk of loss of principal and interest, including default risk, than higher-rated bonds.