CORE LIABILITY ENHANCED

The Core Liability Enhanced portfolio’s overall investment objective is to seek total return while providing protection against interest rate risk. We attempt to accomplish these investment objectives by investing in domestic, investment grade fixed income securities. The long-term objective of the account is to outperform the Custom Liability Index with a duration between 5 to 7 years, net of management and administrative fees when measured over 3 to 5 year periods. The sensitivity to interest rate changes is intended to track the market for domestic, intermediate investment grade fixed income securities due to the fact that the modified duration of the Account’s investment portfolio, at the end of each calendar month during a fiscal year must be within one year of the Custom Liability Index. The primary strategies are sector rotation, issue selection, and yield curve positioning.