Real Estate Investment Trust Index Fund
as of June 30, 2009
Investment Objective Risks
Fund Facts The Fund seeks to track the performance of There are risks involved with investing,
\
the Dow Jones U.S. Select REIT Index. including loss of money over short or long
Tier II: This Index is a market capitalization periods of time. Fund risks include, but
Passively weighted index of publicly traded Real are not limited to:
Managed Fund1 Estate Investment Trusts (REITs). There is
no assurance that the Fund will achieve its Market risk: The risk that the price of
Fund Type: objective. Refer to “Risks” section. securities in a fund will rise or fall
Real Estate Investment sometimes rapidly or unpredictably due to
Trust
Manager factors such as real or perceived adverse
2 The Fund is a collective investment trust economic conditions, political
Inception Date:
5/1/2001 managed by a team of Tuckerman Group developments, and/or investor sentiment
professionals. The Tuckerman Group is a generally. During a general downturn in
Total Net Assets:3 State Street Global Advisors (SSgA) the securities markets, multiple asset
$104.6 million company. classes may decline in value
simultaneously. Stocks generally have
Expense Ratio: Investor Profile greater price volatility than bonds.
0.33% Real estate investment trust investments
may be appropriate for someone seeking Interest rate risk: The risk that REIT
Ave. Weighted Market Cap: security prices will decline because of
$4.9 billion
real estate exposure. REITs offer investors
the opportunity to diversify their portfolio rising interest rates.
Med. Weighted Market Cap: with an asset class that provides the
$1.0 billion potential for high current income and long- Business risk: The risk that an investment
term capital growth. will lose value because of a decline in a
Number of Holdings: specific company or industry. Because the
79 Strategy Fund concentrates its assets in REITs, the
The Real Estate Investment Trust Index industry concentration risk is high.
Dividend Yield:
Fund invests in the SSgA/Tuckerman REIT
5.0% Manager risk: The risk that manager
Index Series Fund – Class A units. The
Fund is managed using a “passive” or implementation decisions can adversely
P/E Ratio (12-month
“indexing” investing approach, by which affect the ability of a fund to meet its
trailing):
SSgA attempts to replicate, before investment objectives and/or cause a fund
20.6x
expenses, the performance of the Index. to underperform relevant benchmarks.
P/B Ratio: The Fund typically seeks to achieve its
1.1x objective by investing in the securities
comprising the Index in the same
proportions as they are represented in the
Index. In some cases, it may not be
possible or practicable to purchase all of
the securities comprising the Index, or to
hold them in the same weightings as
represented in the Index. In those
circumstances, SSgA may employ a
sampling or optimization technique to
construct the portfolio. The Fund may use
futures and other derivatives, and invest in
other investment funds.
Real Estate Investment Trust Index Fund
as of June 30, 2009
Performance
Current performance may be lower or higher than performance data shown. Performance data shown represents past performance and is not a guarantee
or prediction of future results. For performance data current to the most recent month-end, please visit the Web site at www.varetire.org and select a Plan
under the Defined Contribution Plans tab. Then, click “Plan Investments” and then “Investment Performance.” The investment return and principal value
of an investment will fluctuate so that, when redeemed, shares/units may be worth more or less than their original cost. Investors should consider the
investment objectives, risk, fees and expenses carefully before investing.
1 Year 3 Years* 5 Years* Since Inception*
4
Real Estate Investment Trust Index Fund -45.50% -19.82% -3.49% 3.89%
5
Dow Jones U.S. Select REIT Index -45.35 -19.73 -3.28 4.27
Top Holdings Sector Weightings**
Simon Property Group Inc. 8.4% Apartments 15.5%
Public Storage 7.3 Health Care 14.3
Vornado Realty Trust 5.1 Regional Malls 13.2
Boston Properties Inc. 5.0 Office 12.6
Equity Residential 4.6 Strip Centers 10.2
HCP Inc. 4.3 Industrial 7.8
Host Hotels & Resorts Inc. 3.8 Self-Storage 7.0
Ventas Inc. 3.5 Diversified 6.7
Avalonbay Communities Inc. 3.3 Hotels 6.2
Health Care REIT 2.8 Mixed Industrial/Office 5.1
Manufactured Homes 0.8
Allocation Factory Outlets 0.7
Equities 99.6%
Cash & Other 0.4
Glossary
P/E Ratio: A P/E ratio represents the share price of a company’s stock divided by its earnings per share, typically over a 12-month
period. A “trailing” P/E represents earnings from the past 12 months. For a fund, the P/E ratio represents the weighted average of the P/E
ratios of the stocks in the fund’s portfolio.
P/B Ratio: A P/B ratio represents the relationship between the market price of a stock and its book value per share. Book value is a
company’s total assets minus total liabilities. For a fund, the P/B ratio represents the weighted average of the P/B ratios of the stocks in
the fund’s portfolio.
Dividend Yield: The portion a company or fund pays out to its shareholders in the form of dividends. The percentage is calculated by
dividing the annual dividend per share by the security’s market price. For a fund it is the asset weighted average dividend yield of the
underlying securities of the fund.
* Annualized
**May not equal 100% due to rounding.
1 A passively-managed fund tries to track the total return of a particular index. They are often called “passively-managed” because the way your money is invested is
determined by the securities that are included in a particular index, not the research and discretion of a portfolio manager.
2 The VRS Defined Contribution Plans purchase units in the SSgA REIT Index Series Fund - Class A units in order to provide participants with the ability to purchase and
redeem units on a daily basis. The inception date shown reflects the inception date of the Series Fund - Class A units. Prior to June 30, 2009 the inception date reflected that of
the Base Fund. The change was made due to the length of the Series Fund’s performance track record and the fact that the Series Fund no longer must invest in the Base Fund.
3 Total Net Assets shown reflect that of the Series Fund - Class A units. Prior to June 30, 2009 total net assets reflected that of the Base Fund. The change was made due to
the length of the Series Fund’s performance track record and the fact that the Series Fund no longer must invest in the Base Fund.
4 The performance returns shown reflect all fund management fees and expenses, but does not reflect the Plan administrative fee charged, which would further reduce the
returns shown. All calculations assume reinvestment of dividends and capital gains. All returns are calculated in U.S. dollars.
5 You cannot invest directly in an Index.
Plan Administrative Fee - ING Institutional Plan Services (“ING”), the Plans’ record keeper, will deduct an annual record keeping and communication services fee of 19 basis
points (0.19%) capped at $130,000 from your combined account balance on a quarterly basis (0.0475% per quarter).
NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE