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<br />FAX NO. 6122418210 <br /> <br />p, 07/12 <br /> <br />JUL-08-1999 THU 10:59 AM CRETEX PURCHASING <br /> <br />Supplemental Investment Fund <br /> <br />. <br /> <br />Growth Shaff.~ Account <br /> <br />Objective <br />The Goard has established above- <br />average capital appreciation as the <br />primnr)' investment objective of the <br />Growth Share Account. To achieve <br />this objective, the Account maintains <br />an exposure to U.S. common stocks. <br /> <br />At the close of lisen I year 1998, the <br />v<llue of the Growth Share Account <br />was $278 million. <br /> <br />. <br /> <br />Management <br />The assets of the Growth Share <br />Account are invested by the external <br />active and semi-passive rnanagers. <br />This allocation reflects a more <br />aggressive invesrment than is <br />ilvailablc throush passive <br />!11:lnacement. Since July 1997, these <br />assets have been managed by the <br />same active and semi-pnssivc <br />managers utilized by the Basic and <br />Post Retirernent Funds in the <br />Domestic Stock Pool. (Prior to July <br />1997, the Account used only active <br />managers.) <br /> <br />Performance <br />Like the Incomc Share ACC(lUnt, the <br />Board evaluates the pCrfOl1l1anCe of <br />the Growth Share Account on two <br />levels: <br /> <br />Total A ceo 11111. The Growth <br />ShClre Account is expected to <br />exceed the rctulllS of the <br />Wilshire 5000. <br /> <br />/l/llil'irJlUll Mlllluger. <br />Performance objectives for thc <br />individu.ll managers arc <br />described ill the Investment <br />Pool section. <br /> <br />. <br /> <br />The Growth Share Account provided <br />a retum of 31.2% for the tiscal year, <br />olllperfon11ing its composite index by <br />2.3 percentage points. Over the most <br />recent five years, the Account has <br /> <br />-#1 <br /> <br />exceeded its compositc index by 0.2 <br />percentage point annually. <br /> <br />A five year history of perfomHmce ' <br />results is shown in Figure 27. <br /> <br />Figu!'€! 27. Graw/IT Share Accollnt FY 199~-J998 <br /> <br />35 <br /> <br />. Growth <br />Share <br /> <br />o Composite" <br /> <br />30...------........-..:,-- <br /> <br /> <br />25 . - . - . . . - . . . - r- . . <br />.... <br /> <br />f- <br /> <br />1 <br />._. ..._ .1 <br /> <br />C; 20 <br />CIJ <br />~ <br />~ 15 <br /> <br />,..... <br /> <br />10 <br /> <br />5. <br />o " .---, <br />1994 <br /> <br />-L....;- -L+- '-'-+- .... - '- -I- '- <br />1995 1996 1997 1998 3 Yr, 5 Yr. <br /> <br /> Annualized <br /> 1994 1995 1996 1997 1998 3 Yr. S Yr. <br />Growth Shan' 0.6% 23.3% 24.6% 29.5% 31.2 % 28.4% 21.3% <br />Compositc. 1.2 23.7 25,1 29.2 28,9 27.7 21.1 <br /> <br />· 95% WiL,hil'c 5000/5% T.BiII Composite Ihrough October 1996, <br />100% Wilshirc 5000 since Novcmber 1996, <br /> <br />26 <br />