US REIT Index Fund
30 June 2008
What is the Fund’s goal? The Fund seeks to match the performance of the Dow Jones/Wilshire REIT IndexSM while providing daily liquidity. What is the Fund’s investment strategy? The Fund typically invests in all securities in the Dow Jones/Wilshire REIT Index in proportion to their weighting in the Index. As such we seek to maintain sector and security weightings that closely match the Index. This replication process results in low turnover, accurate tracking and low costs. The Fund invests primarily in equity shares of real estate investment trusts (REITs). REITs invest in loans secured by real estate and invest directly in real estate properties such as apartments, office buildings, and shopping malls. REITs generate income from rentals or lease payments and offer the potential for growth from property appreciation and the potential for capital gains from the sale of properties. Is the Fund appropriate for me? In building a retirement portfolio, it’s important to include a mix of equity (stock) and fixed income (bond) funds. Stock funds help build the value of your portfolio over the long term, while bond funds provide income and stability of principal. As a stock fund, this Fund may be appropriate if you have a medium to longer investment time frame and are willing to ride out stock market fluctuations in the short term in exchange for the potential for high long-term returns. What are the risks? The performance of the Fund depends on the value of its holdings. The value of the Fund may vary from day to day in response to individual securities in which the Fund invests, changes in market conditions, overall economic conditions, interest rates and other political developments. The Fund has a concentration of investments related to the Real Estate Industry. Changes in real estate values or an economic downturn can have a significant negative effect on REIT values. In the short term, stock values may be volatile, but over the long term, they have the potential for higher returns than bond or cash investments. Investment return and principal value may fluctuate so that your investment, when redeemed, may be worth more or less than the contributions to your individual account.
Characteristics
Beta Price/NAV Price/FFO Dividend Yield Number of holdings Weighted Avg. Mkt. Cap. $B 1.25 0.83x 13.56x 5.21% 85 7.4
Top Holdings
Simon Property Group Inc. ProLogis Vornado Realty Trust Boston Properties Inc. Public Storage Equity Residential General Growth Properties Inc. Kimco Realty Corp. HCP Inc. Host Hotels & Resorts Inc. REGIONAL MALLS INDUSTRIAL DIVERSIFIED OFFICE SELF-STORAGE APARTMENTS REGIONAL MALLS STRIP CENTERS HEALTHCARE HOTELS 8.37% 5.94 5.28 4.48 4.33 4.32 3.67 3.16 3.12 2.96
Sector Weighting
REGIONAL MALLS APARTMENTS OFFICE STRIP CENTERS INDUSTRIAL HEALTHCARE DIVERSIFIED HOTELS SELF-STORAGE MIXED INDUSTRIAL/OFFICE MANUFACTURED HOMES FACTORY OUTLETS 16.57% 15.08 12.89 10.99 10.85 10.04 6.67 6.12 5.45 4.34 0.54 0.46
Market Risk Profile
This is the risk that an investment will fluctuate in value. An investment with low market risk will experience small changes in value and offer less opportunity for high returns; one with high market risk may experience larger changes in value, but may also tend to provide greater returns to outpace inflation over the long term.
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U.S. REIT Index Fund
What is the Index? The Dow Jones/Wilshire REIT Index - This market capitalization weighted index is comprised of 90 publicly traded Real Estate Investment Trusts (REITs). To be included in the index a company must be an equity owner and operator of commercial (or residential) real estate and must generate at least 75% of its revenue from such assets. Minimum requirements for market capitalization and liquidity also apply. Who is the Fund’s investment manager? The Fund is managed by State Street Global Advisors (SSgA), a global leader in providing investment management services to clients worldwide. SSgA has been selected by many worldwide industry leaders to provide premier investment management services to their employees. To learn more about SSgA, visit our web site at www.ssga.com. How do I get more information? For additional information about this fund, including fees and charges, please contact your retirement plan provider.
30 June 2008
The US REIT Index Fund seeks to achieve its objective by investing in the REIT Index Fund Series Class A. The Dow Jones Wilshire REIT Index is calculated by Dow Jones & Co. and licensed to State Street Bank and Trust Company. The financial products are not sponsored, endorsed, sold or promoted by Dow Jones & Co. and Dow Jones & Co. makes no representation regarding the advisability of investing in the financial products. Dow Jones & Co. bears no liability with respect to any such financial products or any index on which such financial products are based.
REALPAS/CMX2