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A New Combined Distribution and Installment Form is now available on this web site. Click here for links to the DAP Forms Online.

Diversified Small Company Stock Option Investment Manager Change

The Diversified Small Company Stock Option has been reallocated as follows due to the termination of MFS Instl. Emerging Equities :

Old Allocation New Allocation
MFS Instl. Emerging Equities 12% 0%
Dimensional US MicroCap Portfolio 12% 12%
Franklin Small Cap Growth II 20% 20%
Janus Small Cap Value Instl. 12% 18%
Royce Opportunity 12% 12%
State Street Research Aurora 12% 18%
BGI – SmallĀ  Company Index 20% 20%
100% 100%

The MFS Instl. Emerging Equities Fund was terminated on March 31, 2004. The fund’s performance was below the Russell 2000 benchmark year to date and longer term. Furthermore, MFS Investment Management was investigated for questionable trading practices by the SEC and recently reached a multi-million dollar settlement.

MFS Instl. Emerging Equities Fund’s 12% allocation was reallocated to Janus Small Cap Value Instl. and State Street Aurora. Please view the above chart for the new target allocations.

Value Stock Investment Option Investment Manager Changes

The Value Stock Option has been reallocated as follows due to the termination of Federated Stock Trust :

Old Allocation New Allocation
Federated Stock Trust 20% 0%
Clipper 0% 10%
T. Rowe Price Value 10% 20%
Morgan Value 20% 20%
Neuberger Berman Focus 10% 10%
Neuberger Berman Regency 10% 10%
Legg Mason Spec. Inv. Trust 10% 10%
BGI – Value Index 20% 20%
100% 100%

The Federated Stock Trust Fund was terminated on March 25, 2004. Its performance has not improved since it underwent manager change approximately two years ago. The fund’s performance was below the Russell 1000 Value benchmark year to date and longer term. The fund shows no value added from active management over its benchmark in all time periods. Furthermore, recent SEC settlements indicate possible problems with the fund’s management.

Federated Stock Trust’s 20% allocation was divided evenly between the Clipper and T. Rowe Price Value funds. Clipper is a new fund to the DAP with a 10% allocation in the Value Stock Option. The T. Rowe Price Value Fund’s allocation has been increased to 20% in the Value Stock Option.

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