Washington State Bond Fund

Fund Objective

The Washington State Bond Fund seeks to provide attractive returns while controlling risk by investing in high quality corporate bonds. The fund’s performance objective is to match or exceed the return of the Lehman Brothers Intermediate Credit Index.

Investment Strategy

The Washington State Bond Fund employs an active strategy that seeks to add incremental value over the Index. The fund normally invests in a diversified portfolio of investment grade corporate securities.

The portfolio intends to earn additional return through security selection, but will be allowed to deviate from the indexes’ duration by plus or minus 15 percent.

Investment Risk

The Washington State Bond Fund is intended for members who want an investment designed to match or modestly exceed the returns of the Lehman Brothers Intermediate Credit Index. It is intended as an intermediate-term investment vehicle due to the moderate level of returns on fixed income instruments over short time periods.

Investment Manager

The Washington State Bond Fund is provided and managed by the Washington State Investment Board.

Investment Restrictions

Once a member has transferred money out of the fund, he or she will not be allowed to transfer money back into the same fund for thirty calendar days. The thirty day window will be based on the last time the member made a transfer out of the fund. This restriction will not affect the member’s regular contribution or the ability to leave state service and withdraw from Plan 3. For additional information, please refer to page 2 of the Plan 3 Investment Guide.

* Historic performance is not necessarily indicative of actual future investment performance, which could differ substantially. All performance figures contained herein are provided net of management fees and other expenses but before the WSIB and record keeper expenses. All returns are calculated in U.S. dollars.

** Other expenses are as of March 31, 2009. Expenses include the operating costs associated with portfolio management and items such as custodial fees, audit fees and transfer agent fees. They are usually fixed costs and change in percentage as the fund balance changes.

Fees are calculated based upon your daily account balance.

Return to the top