1. Target date fund comparison
Admin/retirement shares
December 31, 2012

2. Considerations: Target date funds
Diversification
Asset allocation
Risk posture over time
Active/passive
Quality of component pieces/underlying funds
Expense ratios

3. Considerations: Determining a shared “risk” philosophy
Evaluate risk in terms of the following:
Potential drawdowns based on market assumptions
Realized drawdowns over shorter term market movements
In both percentage and dollar losses on an average participant’s balance
Take ownership of the glide path and consider exploring target date solutions that share a similar fiduciary view towards risk for the participant base.
Find a target date provider that provides a thoughtful, transparent, repeatable process for delivering appropriate returns based on your “best fit” glide path.
Diversification – meaningful across relevant asset classes or marketing driven?
Asset Allocation – thoughtful & disciplined, static vs. market driven
Underlying Funds - active/passive, ongoing monitoring, policy for manager replacement, overlap, style drift, capacity
Source: planadviserTM, from the publishers of PLANSPONSOR, Fall 2007

4. Considerations: Target date evaluation & benchmarking
Choose a fund family that shares your philosophy on what level of risk is appropriate for your participants at each stage of retirement saving
Different glide path decisions will have predictable consequences
Be aware of the magnitude of the consequences, not just the probability
Realize that no one fund family will fully address both “longevity risk” and “volatility risk”  there is a tradeoff
Consider a target date product’s role in overall plan design
Seek a fiducially sound “product foundation” on which behavior enhancing changes like auto-enrollment and auto-increase can be implemented
Monitor the chosen product on how well it delivers on your shared philosophy, not necessarily how well it does versus peers

5. Target date funds: Strategy summaries
Wells Fargo Advantage Dow Jones Target Date Funds
Alliance Bernstein Retirement Strategies Funds
American Century LIVESTRONG Funds
American Funds Target Date Retirement Funds
BlackRock LifePath Funds
Fidelity Advisor Freedom Funds
JP Morgan Smart-Retirement Funds
T. Rowe Price Retirement Funds
Vanguard Target Retirement Funds
Description
Seeks to replicate the Dow Jones Global Target Date Indices. Optimization model is run monthly to match allocations to specified equity risk targets.
A series of broad asset-allocation funds combining actively managed, style-pure portfolios with established track records in a mix that changes to suit the participant’s risk and return requirements at different life stages.
Funds invest in a mix of underlying actively managed American Century funds. Glidepath is fairly conservative leading up to retirement and the subasset classes are skewed more conservatively as the glidepath progresses.
Funds invest in a mix of underlying American funds. Allocations vary between growth funds, growth and income funds, equity income/balanced funds, and bond funds based on retirement date.
Funds invest in enhanced index strategies. Optimization model is run weekly to allow for rebalancing and tactical shifts. -Please note the 2010 Fund merged into the Retirement Fund as of November 2009.
Funds invest in multiple Fidelity mutual funds and "Series" funds (created for sole use in the Freedom Funds). Utilizes a moderate asset allocation strategy designed for investors expecting to retire on or near the target date.
Funds invests in a diverse pool of actively managed JP Morgan Funds. Glide path is set based on internally researched broad based assumptions that differ from conventional investor retirement savings wisdom.
Funds invest in several T. Rowe Price funds. Allocations are largely pre-set along the glide path with some degree of tactical flexibility. -Please note that the T. Rowe Price Retirement Fund is not part of this series. Its static 40%/60% allocation is not the landing point for these funds.
Funds invest in six Vanguard funds - all passive except a small allocation to an actively managed TIPS Fund and Money Market Fund. Allocations are largely pre-set along the glide path. - Please note that the 2005 Fund merged into the 2010 Fund on February 10, 2012.
Inception Date
1994
2005
2004
2007
2003
2006
2002
Mutual Fund Target Date Assets*
$13.8B
$1.4B
$5.8B
$12.7B
$8.1B
$16.7B
$8.9B
$77.6B
$117.5B
Active/ Passive
Passive (published indexes)
Active
Active/Alpha Tilt and iShares ETFs
Primarily Active
Almost all Passive
*Source: Morningstar

6. Target date funds: Strategy summaries
Wells Fargo Advantage Dow Jones Target Date Funds
Alliance Bernstein Retirement Strategies Funds
American Century LIVESTRONG Funds
American Funds Target Date Retirement Funds
BlackRock LifePath Funds
Fidelity Advisor Freedom Funds
JP Morgan Smart-Retirement Funds
T. Rowe Price Retirement Funds
Vanguard Target Retirement Funds
Glide Path
Equity Risk Allocation:
Equity Allocation:
Most Aggressive
90% (2055)
95% (2055)
85% (2055)
Approx. 90% (2055)
>90% (2055)
90% (2060)
Retirement Date
28%
65%
45%
Approx. 50%
38%
50%
33%
55%
Landing Point
20% (10 years post)
35% (15 years post)
45% (at retirement)
Approx. 15% (30 years post)
38% (at retirement)
20% (10-15 years post)
33% (at retirement)
20% (30 years post)
30% (7 years post)
Asset Allocation Mix (Sample 2040)*
13 unique, non-overlapping indices represented
12 actively managed, style-pure portfolios
15 actively managed American Century funds
17-20 actively managed American funds
Up to 10 funds and/or iShare ETFs
Approx. 23 Fidelity funds
Approx actively managed JP Morgan strategies
18 T. Rowe Price funds
3-5 Vanguard funds
Domestic Equity (%)
55.76
50.44
58.54
53.30
51.28
47.76
47.18
59.93
61.87
International Equity (%)
27.94
37.90
16.24
30.04
28.76
23.62
30.24
29.08
27.56
Fixed Income (%)
9.60
5.50
20.80
7.73
15.98
15.75
15.88
6.66
9.24
Cash/Other (%)
6.69
6.16
4.42
8.93
3.98
12.87
6.70
4.32
1.33
Expense*
% (Adm)
% (K)
% (Inv)
% (R4)
% (A)
% (A)
% (Sel)
% (Adv) %
% (R)
% (A)
% (R)
% (T)
% (A)
% (R)
*Source: Morningstar

7. Equity allocation comparisons: Sample universe
Source: Morningstar

8. Target date funds: Allocation comparisons
Wells Fargo Advantage
Alliance Bernstein
American Century
American Funds
BlackRock
Fidelity Advisor
JP Morgan
T. Rowe Price
Vanguard
Composition Date
11/30/2012
9/30/2012
12/31/2012
2050
% US Stocks
58.29
52.73
63.79
53.27
58.09
50.13
47.43
59.96
61.92
% Non-US Stocks
29.21
39.12
17.78
30.08
32.38
24.76
29.89
29.00
27.40
% Bonds
5.99
5.53
15.56
7.72
6.62
12.12
15.85
6.64
9.33
% Other/Cash
6.52
2.63
2.87
8.93
2.92
12.98
6.83
4.40
1.35
2040
55.76
50.44
58.54
53.30
51.28
47.76
47.18
59.93
61.87
27.94
37.90
16.24
30.04
28.76
23.62
30.24
29.08
27.56
9.60
5.50
20.80
7.73
15.98
15.75
15.88
6.66
9.24
6.69
6.16
4.42
3.98
12.87
6.70
4.32
1.33
2030
44.50
43.15
49.00
51.83
43.72
41.06
40.13
55.59
54.25
22.30
33.70
13.18
29.28
23.63
20.30
26.63
26.70
23.99
25.73
12.55
29.44
9.94
27.41
26.32
24.97
12.90
19.59
7.47
10.61
8.39
8.95
5.25
12.32
8.27
4.82
2.17
2020
28.79
32.75
41.75
42.46
34.11
32.74
31.48
46.77
43.87
14.53
27.22
9.39
21.01
17.64
16.12
20.68
22.02
19.46
48.81
26.68
38.48
26.82
41.36
37.06
39.88
25.43
33.38
7.87
13.35
10.38
9.72
6.89
14.08
7.97
5.78
3.29
2010
13.49
23.65
N/A
32.14
28.34
20.43
35.34
29.60
6.76
20.31
12.26
13.86
11.66
16.14
13.31
69.73
42.23
44.39
41.35
51.30
41.39
52.43
10.02
13.81
11.22
16.45
16.60
7.13
4.66
Today/ Income
9.55
15.08
37.86
12.03
20.54
13.03
6.22
11.33
5.92
11.70
9.17
75.23
58.32
41.81
55.33
53.70
50.64
62.17
10.39
13.57
14.11
8.59
28.35
17.12
8.11
Source: Morningstar

9. Retirement date based funds comparison: Performance (12.31.12)
Annualized
3 Year
Expense
Category/Fund
Ticker
QTD
1 Year
3 Years
5 Years
Sharpe Ratio
Ratio
Dow Jones Global Target Today Index1
N/A
-0.02
5.44
6.40
5.29
1.80
AllianceBernstein 2000 Retirement Str K
LTAKX
1.33
7.07
5.92
1.74
0.87
0.81
American Century LIVESTRONG Inc Inv
ARTOX
0.71
10.13
7.88
4.05
1.02
0.77
BlackRock LifePath Retirement R
LPRRX
0.69
8.26
6.79
3.91
1.06
1.35
Fidelity Advisor Freedom Inc A
FAFAX
0.41
6.01
5.14
3.41
1.26
0.72
JP Morgan SmartRetirement Income Sel
JSRSX
1.56
10.15
7.35
4.49
1.04
0.74
Vanguard Target Retirement Income
VTINX
8.23
7.61
4.87
1.57
0.17
Wells Fargo Advantage DJ Target Tod Adm2
WFLOX
-0.16
4.74
5.59
4.46
0.80
Morningstar Avg: Retirement Income
9.01
6.77
2.94
1.09
0.99
Annualized
3 Year
Expense
Category/Fund
Ticker
QTD
1 Year
3 Years
5 Years
Sharpe Ratio
Ratio
Dow Jones Global Target 2010 Index1
N/A
0.20
6.40
6.85
4.42
1.53
AllianceBernstein 2010 Retirement Str K
LTDKX
2.01
9.61
6.59
0.98
0.65
0.89
American Funds Trgt Date Retire 2010 R4
RDATX
1.16
10.17
7.64
2.22
1.07
0.70
Fidelity Advisor Freedom 2010 A
FACFX
0.63
10.04
7.13
2.54
0.80
0.86
JP Morgan SmartRetirement 2010 Sel
JSWSX
1.61
10.31
7.53
3.83
1.03
0.75
T. Rowe Price Retirement 2010 Adv
PARAX
1.32
12.16
8.15
3.37
0.82
Vanguard Target Retirement 2010
VTENX
1.02
10.12
8.25
3.73
1.08
0.17
Wells Fargo Advantage DJ Target 2010 Adm2
WFLGX
0.03
5.62
6.02
3.61
1.33
0.83
Morningstar Avg: Target Date
1.18
7.03
0.92
0.97
1 This information is based on back-tested data. Please see disclaimers contained elsewhere. Please note that Index returns are for illustrative purposes only and do not represent fund performance. Index performance returns do not reflect management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
2 The shareholders of the Wells Fargo Advantage Funds have approved changes to the Wells Fargo Advantage Outlook Funds. Effective June 26, 2006, the Funds are sub-advised by Global Index Advisors, Inc. ("GIA") and will be managed to track the performance of the Dow Jones Target Date Indexes before fees and expenses. As represented above, each Fund’s name has been changed to correspond to the name of the Dow Jones Target Date Index that it will seek to replicate. "Dow Jones" and "Dow Jones Target Date Indexes" are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Global Index Advisors, Inc. and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds, based on the Dow Jones Target Date Indexes, are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product(s). .
Source: Zephyr Analytics, Morningstar

10. Retirement date based funds comparison: Performance (12.31.12)
Annualized
3 Year
Expense
Category/Fund
Ticker
QTD
1 Year
3 Years
5 Years
Sharpe Ratio
Ratio
Dow Jones Global Target 2020 Index1
N/A
0.98
9.23
7.80
3.32
1.02
AllianceBernstein 2020 Retirement Str K
LTHKX
2.55
11.16
6.44
-0.32
0.53
0.97
American Century LIVESTRONG 2020 Inv
ARBVX
1.00
11.47
8.47
0.93
0.83
American Funds Trgt Date Retire 2020 R4
RDCTX
1.66
12.65
7.96
1.50
0.79
0.74
BlackRock LifePath 2020 R
LPRMX
1.13
10.36
7.16
2.20
0.75
1.35
Fidelity Advisor Freedom 2020 A
FDAFX
0.71
11.28
7.67
1.37
0.73
0.91
JP Morgan SmartRetirement 2020 Sel
JTTSX
2.50
14.42
9.18
3.64
0.82
0.84
T. Rowe Price Retirement 2020 Adv
PARBX
1.78
14.78
8.99
2.83
0.72
0.95
Vanguard Target Retirement 2020
VTWNX
12.35
8.54
2.81
0.81
0.17
Wells Fargo Advantage DJ Target 2020 Adm2
WFLPX
8.51
7.02
2.63
0.92
0.85
Morningstar Avg: Target Date
1.44
11.68
7.85
1.89
1.07
Annualized
3 Year
Expense
Category/Fund
Ticker
QTD
1 Year
3 Years
5 Years
Sharpe Ratio
Ratio
Dow Jones Global Target 2030 Index1
N/A
1.81
12.56
8.76
2.52
0.73
AllianceBernstein 2030 Retirement Str K
LTKKX
2.86
12.79
6.06
-1.36
0.45
1.01
American Century LIVESTRONG 2030 Inv
ARCVX
1.17
8.92
0.83
0.88
American Funds Trgt Date Retire 2030 R4
RDETX
2.33
16.03
8.57
1.67
0.67
0.77
BlackRock LifePath 2030 R
LPRNX
1.50
12.47
7.38
1.24
0.63
1.35
Fidelity Advisor Freedom 2030 A
FAFEX
0.85
13.03
8.02
0.27
0.64
0.98
JP Morgan SmartRetirement 2030 Sel
JSMSX
3.28
17.09
9.31
2.80
0.91
T. Rowe Price Retirement 2030 Adv
PARCX
2.09
16.56
9.40
2.26
0.66
1.00
Vanguard Target Retirement 2030
VTHRX
1.66
14.24
8.88
1.88
0.70
0.18
Wells Fargo Advantage DJ Target 2030 Adm2
WFLIX
1.80
11.87
8.01
1.95
0.86
Morningstar Avg: Target Date
13.59
8.13
0.69
1.11
1 This information is based on back-tested data. Please see disclaimers contained elsewhere. Please note that Index returns are for illustrative purposes only and do not represent fund performance. Index performance returns do not reflect management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
2 The shareholders of the Wells Fargo Advantage Funds have approved changes to the Wells Fargo Advantage Outlook Funds. Effective June 26, 2006, the Funds are sub-advised by Global Index Advisors, Inc. ("GIA") and will be managed to track the performance of the Dow Jones Target Date Indexes before fees and expenses. As represented above, each Fund’s name has been changed to correspond to the name of the Dow Jones Target Date Index that it will seek to replicate. "Dow Jones" and "Dow Jones Target Date Indexes" are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Global Index Advisors, Inc. and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds, based on the Dow Jones Target Date Indexes, are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product(s).
Source: Zephyr Analytics, Morningstar

11. Retirement date based funds comparison: Performance (12.31.12)
Annualized
3 Year
Expense
Category/Fund
Ticker
QTD
1 Year
3 Years
5 Years
Sharpe Ratio
Ratio
Dow Jones Global Target 2040 Index1
N/A
2.41
14.88
9.23
2.09
0.62
AllianceBernstein 2040 Retirement Str K
LTSKX
3.09
13.76
5.77
-1.80
0.41
1.01
American Century LIVESTRONG 2040 Inv
ARDVX
1.39
14.50
9.51
0.76
0.95
American Funds Trgt Date Retire 2040 R4
RDGTX
2.34
16.42
8.49
1.56
0.64
0.78
BlackRock LifePath 2040 R
LPRKX
1.88
14.19
7.52
0.36
0.56
1.35
Fidelity Advisor Freedom 2040 A
FAFFX
0.89
14.08
8.01
-0.15
0.58
1.02
JP Morgan SmartRetirement 2040 Sel
SMTSX
3.52
18.16
9.43
2.71
0.94
T. Rowe Price Retirement 2040 Adv
PARDX
2.21
17.29
9.47
2.12
0.63
1.03
Vanguard Target Retirement 2040
VFORX
1.85
15.56
9.06
1.73
0.65
0.19
Wells Fargo Advantage DJ Target 2040 Adm2
WFLWX
2.46
14.25
8.53
1.58
0.87
Morningstar Avg: Target Date
1.97
14.64
8.23
0.57
1.13
Annualized
3 Year
Expense
Category/Fund
Ticker
QTD
1 Year
3 Years
5 Years
Sharpe Ratio
Ratio
Dow Jones Global Target 2050 Index1
N/A
2.55
15.35
9.31
2.13
0.60
AllianceBernstein 2050 Retirement Str K
LTQKX
2.98
14.52
5.76
-1.32
0.40
1.01
American Century LIVESTRONG 2050 Inv
ARFVX
1.57
15.39
9.76
0.73
1.00
American Funds Trgt Date Retire 2050 R4
RDITX
2.40
16.42
8.47
1.56
0.64
0.79
BlackRock LifePath 2050 R
LPRPX
2.10
15.59
7.66
0.51
1.35
Fidelity Advisor Freedom 2050 A
FFFLX
0.95
14.67
8.01
-0.61
0.55
1.04
JP Morgan SmartRetirement 2050 Sel
JTSSX
3.49
18.14
9.49
0.94
T. Rowe Price Retirement 2050 Adv
PARFX
2.22
17.21
9.44
2.08
0.63
1.03
Vanguard Target Retirement 2050
VFIFX
1.86
15.58
9.07
1.71
0.65
0.19
Wells Fargo Advantage DJ Target 2050 Adm2
WFQDX
2.70
14.76
8.63
1.76
0.61
0.87
Morningstar Avg: Target Date
2.05
15.07
8.28
0.54
1.12
1 This information is based on back-tested data. Please see disclaimers contained elsewhere. Please note that Index returns are for illustrative purposes only and do not represent fund performance. Index performance returns do not reflect management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
2 The shareholders of the Wells Fargo Advantage Funds have approved changes to the Wells Fargo Advantage Outlook Funds. Effective June 26, 2006, the Funds are sub-advised by Global Index Advisors, Inc. ("GIA") and will be managed to track the performance of the Dow Jones Target Date Indexes before fees and expenses. As represented above, each Fund’s name has been changed to correspond to the name of the Dow Jones Target Date Index that it will seek to replicate. "Dow Jones" and "Dow Jones Target Date Indexes" are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Global Index Advisors, Inc. and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds, based on the Dow Jones Target Date Indexes, are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product(s).
Source: Zephyr Analytics, Morningstar

12. Retirement date based funds comparison: Performance (12.31.12)
Retirement series
Source: Zephyr Analytics

13. Retirement date based funds comparison: Performance (12.31.12)
2010 series
Source: Zephyr Analytics

14. Retirement date based funds comparison: Performance (12.31.12)
2020 series
Source: Zephyr Analytics

15. Retirement date based funds comparison: Performance (12.31.12)
2030 series
Source: Zephyr Analytics

16. Retirement date based funds comparison: Performance (12.31.12)
2040 series
Source: Zephyr Analytics

17. Retirement date based funds comparison: Performance (12.31.12)
2050 series
Source: Zephyr Analytics

18. Retirement date based funds comparison: Expenses
Category 1
Category 2
Category 3
Category 4
Category 5
Category 6
Series Name
Strategy
Ticker
Expense
Series Average Expense
Wells Fargo Advtg Dow Jones Target Date Admin
Today
WFLOX
0.80
2010
WFLGX
0.83
2020
WFLPX
0.85
2030
WFLIX
0.86
2040
WFLWX
0.87
2050
WFQDX
AllianceBernstein Retirement K
2000
LTAKX
0.81
LTDKX
0.89
LTHKX
0.97
LTKKX
1.01
LTSKX
LTQKX
0.95
American Century LIVESTRONG Inv
Income
ARTOX
0.77
N/A
ARBVX
ARCVX
0.88
ARDVX
ARFVX
1.00
American Funds Target Date Retirement R4
RDATX
0.70
RDCTX
0.74
RDETX
RDGTX
0.78
RDITX
0.79
0.76
BlackRock LifePath R
Retmnt
LPRRX
1.35
LPRMX
LPRNX
LPRKX
LPRPX
Fidelity Advisor Freedom A
FAFAX
0.72
FACFX
FDAFX
0.91
FAFEX
0.98
FAFFX
1.02
FFFLX
1.04
0.92
JP Morgan SmartRetirement Sel
PLSPX
PTAPX
PTBPX
0.99
PTCPX
PTDPX
1.03
JTSSX
0.94
T. Rowe Price Retirement Advisor
PARAX
PARBX
PARCX
PARDX
PARFX
Sub-Group Average
Vanguard Target Retirement
VTINX
0.17
VTENX
VTWNX
VTHRX
0.18
VFORX
0.19
VFIFX
Group Average:
0.75
Source: Morningstar