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The University of North Carolina General Administration
Changes in the UNC Optional Retirement Program Fund Lineup
The UNC Optional Retirement Program (ORP) Investment Advisory Committee, assisted by a national
benefits consulting firm, has conducted its annual review of the ORP and made several recommendations
that have been approved by the President of the University. This is to inform you about these
recommendations including the removal of one fund and the addition of six new funds under the
UNC ORP investment fund lineup.
Removal of CREF Growth Account
The CREF Growth Account will be removed from the ORP available investment lineup effective January
1, 2008. The UNC ORP Investment Advisory Committee has closely monitored this account and
proceeded with this recommendation due to its long-term, rolling and risk-adjusted performance results
relative to its peer group.
What You Need To Do
If you are directing current or future contributions to the CREF Growth Account, please be aware that
this option will no longer be available beginning January 1, 2008. Please visit the UNC ORP website at
www.tiaa-cref.org/uncorp or call 800-842-2776, Monday through Friday, from 8 a.m. to 10 p.m. (ET) and
Saturday from 9 a.m. to 6 p.m. (ET), to direct your future contributions among the remaining available
investment options. Please note that the T. Rowe Price Large Cap Growth fund will remain as an
available option within the ORP, and occupies the same sub-asset class as the CREF Growth Account.
If you do not redirect your future contributions, any remaining contributions directed to the CREF
Growth Account after January 1, 2008, will be invested in an age appropriate default TIAA-CREF
Lifecycle fund until such time as you change your election.
Balances invested within the CREF Growth Account prior to January 1, 2008 will not be affected;
however, you may wish to review your investment strategy in light of changes to the available fund lineup.
Existing money invested in this account as of January 1, 2008 may be transferred to any of the other
available core funds at any time; however, since this fund will no longer be included in the core
investment fund lineup, you will not be able to transfer new balances into this account after January 1,
2008. Due to the removal of this account from the core investment lineup, the performance, objectives,
and returns within the CREF Growth Account will no longer be monitored by the UNC ORP
Investment Advisory Committee.
New Funds Available
The ORP Investment Advisory Committee has recommended the addition of six new funds under the
ORP lineup. Only those ORP carriers that do not currently have at least 20 funds in their core fund
lineup were allowed to add new funds. These funds are now available and include:
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ORP Carrier
AIG VALIC
Lincoln
Financial
Group
TIAA-CREF
Asset Class
Fund Name
Money Market
American Century
Capital Preservation
Fund
Large Cap Growth
Calvert Large Cap
Growth Fund
International Equity
Columbia Acorn
International Fund
Large Cap Blend
Neuberger Berman
Socially Responsive
Fund
Specialty Fund-Real
Estate
First American Real
Estate Securities Fund
Large Cap Growth
TIAA-CREF
Institutional Large Cap
Growth Index
Reason for Fund Addition
Replaces
the
American
Century
Government Agency Money Market
Fund that was recently closed to
participants by American Century. All
AIG VALIC participants investing in this
fund should have been notified by AIG
VALIC that existing assets in the
Government Agency Fund were
automatically mapped to the Capital
Preservation Fund on August 31, 2007.
Adds a socially responsible fund to AIG
VALIC’s core fund lineup. This fund
invests in larger companies that meet
certain social screening criteria such as
being environmentally conscious and not
involved in the production of alcohol or
tobacco. This fund joins the American
Funds Growth Fund of America in the
large-cap growth sub-asset class.
This fund adds to the Non-U.S. equity
offering from Lincoln. The fund focuses
mainly on small to mid cap international
cap stocks. The other Non-U.S. equity
fund, The American Funds EuroPacific
Growth Fund, focuses primarily on large
international stocks.
Adds a socially responsible fund to
Lincoln’s core fund lineup. This fund is
similar to the Calvert Large Cap Growth
fund in that it employs social screens to
construct the portfolio. However, the
fund may invest in sectors such as energy
and materials in which other socially
responsible funds may not invest.
This fund adds an asset class in the
Lincoln lineup and offers participants the
potential for further diversification. With
the addition of this fund to the Lincoln
lineup, all ORP providers now offer a real
estate fund. This fund primarily invests in
Real Estate Investment Trusts (REITs).
Adds a passively managed fund to TIAACREF’s Large Cap Growth sub-asset
class to complement the actively managed
T. Rowe Price fund. This fund is
designed to track the performance of the
Russell 1000 Growth Index.
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For your long-term retirement security, you should give careful consideration to the importance of a wellbalanced and diversified investment portfolio, taking into account all your assets, income, and
investments.
Before investing in any investment option, please carefully consider the investment objectives, risks,
charges and expenses. You may access your ORP carrier’s dedicated website and learn more about the
investment fund selection offered by your investment carrier and how to redirect your future
contributions as follows:
o
o
o
o
AIG VALIC: www.aigvalic.com/uncorp
Fidelity Investments: www.mysavingsatwork.com/uncorp
Lincoln Financial Group: www.lfg.com/unc
TIAA-CREF: www.tiaa-cref.org/uncorp
You may wish to visit the UNC system wide benefits website for more detailed information about the
ORP at:
http://www.northcarolina.edu/content.php/hr/benefits/retirement/orp/UnivWideORPMain.htm.
October 2, 2007