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When making important financial decisions, most people consider all their options before making a major commitment. When buying a car, for example, people often research the different features of the models they're interested in, and choose accordingly. Likewise, when investing for the future, it pays to educate yourself about basic investment concepts, so that you can choose investments that are most suitable for you. In this issue of Getting There, an overview of resources that can help you learn about investing is provided. |  |
| State Comptroller Nancy Wyman |
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Investor Education -
A Key to Successful Investing
If you participate in the State of Connecticut's Deferred Compensation Plan, you are responsible for deciding how to invest your plan contributions. While this gives you the opportunity to customize your investment choices so that they best meet your needs, it also makes it important for you to be an educated investor. The more resources you have for learning about general investment concepts, as well as the investment vehicles that are available to you through the State plan, the better you will be able to select funds that suit your personal circumstances.
Available Resources
Let's review some of the resources that are available to you.
Participant Quarterly Statement
As a plan participant, you receive a personalized quarterly statement that gives an overview of your account activity. It shows how much money you have in your account and how that money is allocated among the funds you have chosen. Besides providing a snapshot of your account, you can also use the statement to monitor whether your investment choices continue to reflect your personal financial objectives.
Getting There Newsletter and Brochure
The Getting There quarterly newsletter includes information on investment issues as well as investment performance figures for the plan's investment options. Past topics include stock market volatility, dollar cost averaging, asset allocation and diversification.
The Getting There brochure outlines the plan's features and provisions, and details how you can enroll in the plan. It provides general information on different types of investments, how to gauge your risk tolerance, how to balance risk and return, and how you can map out a retirement savings strategy. Information about each of the financial services organizations is also included. You may request a brochure from your agency, or access it via the Comptroller's website (see below).
Comptroller's Website
The Office of the State Comptroller's website, www.osc.ct.gov/empret/defcomp/index.html, gives you access to general information about the plan. The Deferred Compensation Plan document, past issues of the Getting There newsletter and brochure, and investment fund performance and operating costs of the available investment vehicles are on the site, along with links to the participating financial services organizations.
Financial Services Organizations
Each participating financial services organization offers similar investment opportunities. For specific information about the mutual funds and variable annuities offered by each, you should contact the financial services organizations directly. For more general information, you can visit the websites of the organizations. Among the topics covered by the financial services organizations on their websites are:
Website addresses, as well as phone numbers for the financial services organizations, are listed on page 2 of this newsletter.
Internet
Most major mutual fund and financial organizations sponsor websites. Although these sites focus on the products and services the companies offer, they also usually provide general investment education, as well. The following chart lists websites that represent a sample of the investment education resources available online.
| Informative Websites | |
|---|---|
| Barron's Online | http://www.barrons.com |
| Bloomberg Personal | http://www.bloomberg.com |
| Briefing.com | http://www.briefing.com |
| BusinessWeek Online | http://www.businessweek.com |
| CBS MarketWatch | http://cbs.marketwatch.com |
| Forbes Magazine | http://www.forbes.com |
| Fortune Magazine | http://www.fortune.com |
| Kiplinger Online | http://www.kiplinger.com |
| Money Magazine Online | http://www.money.com |
| Morningstar | http://www.morningstar.com |
| Mutual Fund | |
| Education Alliance | http://www.mfea.com |
Prospectus
The prospectus is a document that is issued by mutual funds and securities. It covers, in detail, the particular investment option's history and its objectives. A profile of the portfolio manager is usually included, along with information on fund expenses and various fees. If you would like to receive a prospectus for a particular fund or variable annuity offered by the plan, please call your financial services organization representative and request one.
Be a Smart Investor
The State's Deferred Compensation Plan can be an excellent way for you to save for a successful retirement. Having access to, and being able to understand, the many sources of information available to you can help you make the most of the plan's provisions.
Investment Fund Performance & Operating Fees
For the Period Ending
June 30, 2003
You may invest your contributions with any one of the plan's three financial services organizations: The Hartford, ING Financial Advisers, LLC (member SIPC), and Phoenix Investment Partners.
The following charts will help you evaluate your investment choices - both mutual funds and annuity options. They show the historical rates of return for each financial services organization's available investment options and the various operating fees that may be assessed against these options for the period ending June 30, 2003.
The rates of return columns are "net of expenses" and reflect the actual returns that would be applied to your account. This means that they already exclude the operating fees a financial services organization may charge you for managing, investing or marketing a particular investment option. Operating expenses appear in separate columns.
Results are historical and not intended to portray future performance. Current performance may be less than figures shown.
Please note that investment benchmarks may differ from the benchmarks provided in the funds' prospectuses.
About Your Fund Choices
To help you identify between these two types of options, variable annuities appear in italic print. When comparing two similarly styled mutual funds or annuity options, be sure to:
| THE HARTFORD | |||||||
|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | ||||||
| Last Quarter | Rates of Return | ||||||
|
Level of Risk |
Investment Options | 4/1/03-6/30/03 | 1 Year |
Annualized 5 Years |
Management Fees |
Other Expenses |
Total Expenses |
| High | American Century Ultra | 13.66% | - 2.26% | - 15.57% | 0.98% | 0.70% | 1.68% |
| Russell 1000 Growth Index | 14.31 | 2.94 | - 5.03 | ||||
| The Hartford International Opportunities Y | 17.05 | - 12.11 | - 15.43 | 0.85 | 0.91 | 1.76 | |
| MS EAFE Index | 19.57 | - 6.06 | - 3.68 | ||||
| The Hartford Small Company Y | 26.84 | - 1.25 | - 15.22 | 0.85 | 0.81 | 1.66 | |
| Russell 2000 Growth Index | 24.15 | 0.69 | - 4.25 | ||||
| Janus Worldwide | 16.14 | - 9.62 | - 21.50 | 0.65 | 0.92 | 1.57 | |
| MS World Index | 17.25 | - 1.89 | - 2.69 | ||||
| American Century Income & Growth | 16.21 | 0.09 | - 9.04 | 0.68 | 0.70 | 1.38 | |
| Hartford Capital Appreciation HLS | 18.88 | 6.99 | - 5.75 | 0.63 | 0.80 | 1.43 | |
| Hartford Index HLS | 15.07 | - 0.91 | - 12.25 | 0.40 | 0.78 | 1.18 | |
| Hartford Stock HLS | 14.42 | - 0.98 | - 12.47 | 0.46 | 0.78 | 1.24 | |
| S&P 500 Index | 15.39 | 0.25 | - 1.61 | ||||
| American Century Value | 15.52 | - 1.40 | 9.06 | 1.00 | 0.70 | 1.70 | |
| Russell Mid Cap Value Index | 17.89 | - 0.64 | 4.07 | ||||
| Fidelity Advisor Growth Opportunities | 14.76 | 0.34 | - 14.67 | 0.35 | 1.45 | 1.80 | |
| Russell 1000 Index | 15.74 | 0.95 | - 1.25 | ||||
| The Hartford MidCap Y | 17.82 | 1.56 | - 0.88 | 0.83 | 0.83 | 1.66 | |
| Russell MidCap Growth Index | 18.76 | 7.35 | - 0.64 | ||||
| Janus Twenty | 12.66 | 1.62 | - 24.41 | 0.65 | 0.89 | 1.54 | |
| Russell 1000 Growth Index | 14.31 | 2.94 | - 5.03 | ||||
| Medium | The Hartford Dividend and Growth Y | 15.06 | - 2.76 | - 0.22 | 0.75 | 0.80 | 1.55 |
| Russell 1000 Value Index | 17.27 | - 1.02 | 1.05 | ||||
| Hartford Advisers HLS | 10.10 | 2.44 | - 5.05 | 0.63 | 0.78 | 1.41 | |
| 50% S&P 500 + 50% LBAGG Index | 8.84 | 5.88 | 3.40 | ||||
| Low | Hartford Total Return Bond Y | 3.35 | 13.27 | 9.73 | 0.65 | 0.82 | 1.47 |
| LB Aggregate Bond Index | 2.50 | 10.40 | 7.55 | ||||
| General Account 1 | N/A | N/A | N/A | None | None | None | |
1 The Declared Rate is credited through the close of the calendar year on contributions received during the designated quarter. The rate for the third quarter 2003 is 4.15%. For contributions received prior to January 1, 2003, the Declared Rate is 4.15%. Rates quoted are effective annual yields.
| ING FINANCIAL advisers, LLC | |||||||
|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | ||||||
| Last Quarter | Rates of Return | ||||||
|
Level of Risk |
Investment Options | 4/1/03-6/30/03 | 1 Year |
Annualized 5 Years |
Management Fees |
Other Expenses |
Total Expenses |
| High | Janus Aspen Series Mid Cap Growth Portfolio1 | 16.07% | 2.89% | -3.03% | 0.65% | 0.82% | 1.47% |
| Russell Mid Cap Growth Index | 18.76 | 7.35 | - 0.64 | ||||
| Janus Aspen Series Worldwide Growth Portfolio | 15.89 | - 9.39 | - 3.58 | 0.65 | 0.85 | 1.50 | |
| MS World Index | 17.25 | - 1.89 | - 2.69 | ||||
| ING Salomon Brothers Aggressive Growth Portfolio | 19.22 | 2.33 | - 8.12 | 0.69 | 0.93 | 1.62 | |
| Russell 3000 Growth Index | 14.62 | 1.65 | - 5.69 | ||||
| ING JPMorgan Fleming International Portfolio | 18.31 | - 12.32 | - 5.28 | 0.80 | 1.00 | 1.80 | |
| MS EAFE Index | 19.57 | - 6.06 | - 3.68 | ||||
| Pioneer Mid Cap Value VCT Portfolio | 17.09 | 1.40 | 3.96 | 0.65 | 0.95 | 1.60 | |
| Russell Mid Cap Value Index | 17.89 | - 0.64 | 4.07 | ||||
| ING VP Index Plus LargeCap Portfolio | 13.77 | - 1.95 | - 2.14 | 0.35 | 0.90 | 1.25 | |
| ING VP Value Opportunity Portfolio | 13.69 | - 10.12 | 0.26 | 0.60 | 0.92 | 1.52 | |
| Fidelity® VIP Contrafund® Portfolio | 11.69 | - 0.68 | 1.59 | 0.58 | 0.90 | 1.48 | |
| S&P 500 Index | 15.39 | 0.25 | -1.61 | ||||
| ING VP Small Company Portfolio | 19.27 | - 6.79 | 2.86 | 0.75 | 0.92 | 1.67 | |
| Russell 2000 Index | 23.42 | - 1.64 | 0.97 | ||||
| Janus Aspen Series Growth Portfolio | 13.90 | - 3.52 | - 3.64 | 0.65 | 0.82 | 1.47 | |
| Russell 1000 Growth Index | 14.31 | 2.94 | - 5.03 | ||||
| Medium | Fidelity® VIP Equity-Income Portfolio | 17.88 | - 2.81 | - 0.45 | 0.48 | 0.89 | 1.37 |
| Russell 3000 Value Index | 17.65 | - 1.23 | 1.29 | ||||
| ING VP Balanced Portfolio, Inc. | 10.51 | 3.15 | 1.54 | 0.50 | 0.90 | 1.40 | |
| Calvert Social Balanced Portfolio | 9.96 | 3.14 | - 0.35 | 0.70 | 1.01 | 1.71 | |
| 60% S&P 500 + 40% LBAGG Index | 10.14 | 4.84 | 2.46 | ||||
| Janus Aspen Series Balanced Portfolio | 6.96 | 1.89 | 5.22 | 0.65 | 0.82 | 1.47 | |
| 50% S&P 500 + 50% LBAGG Index | 8.84 | 5.88 | 3.40 | ||||
| Low | ING VP Bond Portfolio | 2.91 | 10.13 | 6.18 | 0.40 | 0.89 | 1.29 |
| LB Aggregate Bond Index | 2.50 | 10.40 | 7.55 | ||||
| ING VP Money Market Portfolio | 0.07 | 0.45 | 3.21 | 0.25 | 0.89 | 1.14 | |
| 91 Day Treasury Bills | 0.26 | 1.28 | 3.64 | ||||
| ING Fixed Account-457/4012 | N/A | N/A | N/A | 0.00 | 0.00 | 0.00 | |
1 Janus Aspen Series Aggressive Growth Portfolio was renamed Janus Aspen Series Mid Cap Growth Portfolio as of 5/1/03. 2 The Declared Rate as of July 1, 2003 is 4.5%, expressed as an annual effective yield, and is guaranteed not to drop below 4.50% through December 31, 2003.
| PHOENIX INVESTMENT PARTNERS | |||||||
|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | ||||||
| Last Quarter | Rates of Return | ||||||
| Level of Risk | Investment Options | 4/1/03-6/30/03 | 1 Year | Annualized 5 Years | Management Fees | Other Expenses | Total Expenses |
| High | Phoenix-Aberdeen Worldwide Opportunities A | 19.07% | - 9.39% | - 3.42% | 0.75% | 0.81% | 1.56% |
| MS World Index | 17.25 | - 1.89 | - 2.69 | ||||
| Phoenix-Seneca Mid-Cap Edge A | 16.45 | - 7.48 | 0.93 | 0.80 | 0.66 | 1.46 | |
| Russell Mid Cap Growth Index | 18.76 | 7.35 | - 0.64 | ||||
| Phoenix-Engemann Small-Mid Cap Growth A | 26.19 | 12.42 | - 0.68 | 0.92 | 0.87 | 1.79 | |
| Russell 2000 Growth Index | 24.15 | 0.69 | - 4.25 | ||||
| Phoenix-Hollister Small Cap Value A | 30.16 | - 2.74 | 7.75 | 0.90 | 0.74 | 1.64 | |
| Russell 2000 Value Index | 22.72 | - 3.80 | 4.98 | ||||
| Phoenix-Aberdeen International A | 18.87 | - 11.25 | - 7.36 | 0.75 | 1.15 | 1.90 | |
| MS EAFE Index | 19.57 | - 6.06 | - 3.68 | ||||
| Phoenix-Oakhurst Growth & Income A | 14.99 | - 1.88 | - 1.34 | 0.75 | 0.60 | 1.35 | |
| Phoenix-Kayne Large Cap A | 9.63 | N/A | N/A | 0.75 | 0.54 | 1.29 | |
| S&P 500 Index | 15.39 | 0.25 | - 1.61 | ||||
| Phoenix-Engemann Capital Growth A | 12.75 | 2.68 | - 8.84 | 0.69 | 0.60 | 1.29 | |
| Phoenix-Seneca Growth A | 13.72 | - 3.53 | - 2.88 | 0.70 | 0.59 | 1.29 | |
| Russell 1000 Growth Index | 14.31 | 2.94 | - 5.03 | ||||
| Phoenix-Hollister Value Equity A | 20.00 | - 5.73 | 1.29 | 0.75 | 0.74 | 1.49 | |
| Russell 1000 Value Index | 17.27 | - 1.02 | 1.05 | ||||
| Medium | Phoenix-Oakhurst Managed Assets A | 9.65 | 4.21 | 0.55 | 1.00 | 0.61 | 1.61 |
| Phoenix-Engemann Balanced Return A | 9.39 | 6.00 | 0.35 | 0.75 | 0.70 | 1.45 | |
| 60% S&P Index + 40% LBAGG Index | 10.14 | 4.84 | 2.46 | ||||
| Low | Phoenix-Goodwin Multi-Sector Short Term Bond A | 3.28 | 11.95 | 6.34 | 0.55 | 0.68 | 1.23 |
| LB Intermediate Aggregate Index | 1.89 | 8.72 | 7.42 | ||||
| Phoenix-Duff & Phelps Core Bond A | 2.19 | 7.55 | 5.02 | 0.45 | 0.70 | 1.15 | |
| LB Aggregate Bond Index | 2.50 | 10.40 | 7.55 | ||||
| Phoenix-Goodwin Money Market A | 0.26 | 1.16 | 3.60 | 0.40 | 0.44 | 0.84 | |
| 91-Day Treasury Bills | 0.26 | 1.28 | 3.64 | ||||
IMPORTANT NOTE: The information presented in this newsletter is not intended as investment advice. Its purpose is to help you understand the investment choices available through the State of Connecticut's Deferred Compensation Plan. Your financial strategy and investment choices are entirely your own and should reflect your personal needs and circumstances.
State of Connecticut personnel, including the Human Resources Department staff, cannot provide investment advice. For more information, you may want to consult with a professional financial advisor.
The investment information is current as of June 30, 2003.