Reduction of Risk Over Time

Chart of the Week for February 15, 2008 - February 21, 2008

The above chart shows the S&P 500 Index's range of returns for various time horizons since 1926. An investment matching the performance of the Index held for a one-year period ranged from a 163% gain from July 1932 to June 1933 to a 68% loss from July 1931 to June 1932. However, holding the same investment for twenty years returned as much as 18% per year from April 1981 to March 2000 and never less than 1% from September 1930 to August 1949. It's important for investors to remember the market may fluctuate in the short-run, but returns tend to stabilize in the long-run.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 1-800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.