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Stable Value Fund Asset Class Stable Value Fund Return Stability of Principal The State of Michigan’s Stable Value Fund’s net return is determined daily. It is derived by blending the net returns of the Synthetic GIC and Short Term Investment Fund. Investment Objective The Fund seeks to provide investors with: • daily book value liquidity, • preservation of principal, and • steady growth over time without daily market value fluctuation. Investment Strategy The Fund is comprised of a Synthetic GIC issued by Voya Retirement Insurance and Annuity Company and a Short Term Investment Fund (STIF) managed by State Street Global Advisors. A Synthetic GIC is an arrangement comprised of an investment in a portfolio of underlying securities and a Benefit Responsive Wrapper Contract. The Wrapper Contract produces a floating rate of return that is adjusted periodically, but not below zero, to reflect the performance of the underlying investment portfolio, and generally provides for participant withdrawals at contract value (principal plus accrued interest). The portion of the Fund invested in the State Street Global Advisors Short Term Investment Fund accepts deposits and pays withdrawal activity prior to the access of the Synthetic GIC investment contract. Synthetic GIC Investment Manager Voya Investment Management serves as the investment manager for the underlying portfolio of assets backing the fund’s Synthetic GIC contract. The underlying portfolio’s benchmark is the Barclays Capital Intermediate Government Credit A or Higher Index. To learn more about Voya Investment Management, visit their web site at www.investments.voya.com. Potential Risks In a Synthetic GIC, the Benefit Responsive Contract does not guarantee the performance of the underlying securities or default by the issuer of the underlying securities. Periodically, the Synthetic GIC’s rate of return is adjusted to reflect market value gains and losses subject to a minimum rate of return of zero. Under some scenarios it is possible for participants to lose money even in a stable value option. Those situations are unlikely and rarely occur, but they can happen. It’s important for investors to be aware of these potential risks. Withdrawals resulting from employer-initiated events, such as withdrawals following mass layoffs, employer bankruptcy or full or partial plan termination are not always covered by stable value investment contract guarantees and may be restricted or subject to market value adjustment. Your stable value account balance is not guaranteed by the Federal Deposit Insurance Corporation (FDIC), or by any other government agency. This portfolio is not a registered investment under the 1940 Act and has not been registered with the Securities and Exchange Commission. Are there any limitations on contributions, withdrawals, or transfers from my plan’s stable value option? Generally, there are no limitations on contributions to or withdrawals from the Fund as a result of retirement, death, disability, unforeseen hardship, separation from service, or attainment of age 65 (consult your own plan for limitations). Participant transfers between your stable value option and funds with similar investment objectives (referred to as competing funds) may be subject to an industry standard 90 day “equity wash” provision. Examples of competing funds are Money Market Funds, Short-Term Bond Funds or another investment option within the plan that contains a guarantee of principal. The SSgA Yield Enhanced STIF and Self Managed Account plan investment options are competing funds. Stable Value Fund What are the fees? Stable Value Fund Composition At 06/30/2017 total annual fees are 0.22% based on current invested assets. (as of 06/30/2017) ($ in millions) Asset Value SSGA STIF $106.6 Synthetic GIC $1,053.1 Total1 $1,159.7 % of Stable Value Fund 9.2% 90.8% 100.0% Synthetic GIC Portfolio Statistics Fixed Income Sector Breakdown1 (as of 06/30/2017) Credit Quality Breakdown1,4 (as of 06/30/2017) SectorAllocation n Treasuries and Cash343.0% n Government Related26.0% n Corporates 30.0% n ABS 9.0% n MBS 7.0% n CMBS 5.0% n Other 0.0% n n n n n AAA570.8% AA 6.2% A 22.7% BBB 0.3% <BBB 0.0% Top Ten Holdings (as of 06/30/2017) Description Coupon % Sector Effective Rating4 % of Portfolio Purchase Date 1. UNITED STATES TREAS NT 1.75 30JUN22 1.750 US Treasury & Cash AAA 11.51 06/28/2017 2. UNITED STATES TREAS NTS 1.5 15JUN20 1.500 US Treasury & Cash AAA 10.59 06/13/2017 3. UNITED STATES TREAS NT 1.25 30JUN19 1.250 US Treasury & Cash AAA 10.25 06/27/2017 4. UNITED STATES TREAS NTS 2.0 30JUN24 2.000 US Treasury & Cash AAA 4.32 06/29/2017 5. UNITED STATES TREAS N 2.375 15MAY27 2.375 US Treasury & Cash AAA 2.81 05/11/2017 6. FEDERAL NATL MTG ASSN 1.875 18SEP18 1.875 Government Related AAA 2.78 01/09/2015 7. FEDERAL HOME LN MTG CO 1.25 02OCT19 1.250 Government Related AAA 1.07 09/28/2012 8. KREDITANSTALT FUR WIEDE 1.0 11JUN18 1.000 Government Related AAA 0.91 02/27/2015 9. ORACLE CORP 2.5 15MAY22 2.500 Corporates A+ 0.68 04/28/2015 10. ANHEUSER-BUSCH INBEV FI 3.3 01FEB23 3.300 Corporates A- 0.67 01/13/2016 May not add to 100% due to rounding Includes Agencies 3 Includes Cash/Cash Equivalents 4 We seek individual security ratings from three credit rating agencies that are registered with the SEC as nationally recognized statistical rating organizations (NRSROs) -- typically Moody’s, S&P and Fitch. If ratings are available from all three agencies, the security will be assigned the median rating. If ratings are available from only two of the agencies, the lower of the ratings will be used. If a rating is available from only one agency, then that rating will be used. If ratings are not available from any of the three agencies, then we may either assign the security an internal rating or mark it as “N/R” (not rated). 5 AAA includes Treasuries and Cash and Agencies 1 2 Insurance products, annuities and funding agreements; sold as securities; and fixed annuities are issued by Voya Retirement Insurance and Annuity Company (“VRIAC”), which is solely responsible for meeting its obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services, LLC. All companies are members of the Voya Financial® family of companies. Securities distributed by Voya Financial Partners, LLC (member SIPC) or other broker-dealers with which it has a selling agreement. CN0505-34172-0619D 3020289.G.P-26