FACT SHEET
3 Month Euro LIBOR Index
September 30, 2014
INVESTMENT OBJECTIVE
RISK LEVEL
The Euro LIBOR index provides exposure to a money market return with lower risk than equity and bond
options for staff intending to retire in the Euro zone. While your Cash Balance and Voluntary Savings
accounts will continue to be maintained in US dollars, the index combines the 3 month Euro LIBOR
Euro based investor
1
2
3
experience high volatility together with a risk of loss of principal in dollar terms when there is volatility
5
6
7
8
9
10
Higher
deposit rate with the change in the Euro vs US Dollar exchange rate to give the effect of a money
market investment denominated in euros. Accounts invested in this index, as measured in dollars, will
4
Lower
US dollar based investor
1
2
3
4
5
6
7
8
9
Lower
10
Higher
in the dollar to euro exchange rate. However, when viewed in terms of euro equivalents, this option will
provide a relatively stable return with a lower risk of principal. Thus, this option is best suited for those
intending to receive the Plan benefit in euros. For those intending to receive payment in currency other
than euros, this option may present significant risks.
INDEX COMPOSITION AFFECTS
POTENTIAL RETURN
INDEX COMPOSITION
This investment option comprises a money market component that provides investors the return of the
Merrill Lynch Euro Currency LIBOR 3 Month Constant Maturity Index and a currency component that
Example 1
translates this euro money market return to US dollar return using the Merrill Lynch Euro/ US Dollar
If the euro appreciates against the US
Spot Exchange Rate.
dollar, the currency component will
increase the total return for a US dollar
based investor.
Money Market Component
The 3 Month Euro LIBOR Index mimics the position of an investor buying at par, on every target business
25%
day, a 90 day/360 deposit paying an interest rate equal to the then current 3 month fixing and then
selling it on the following target business day at a yield equal to the Euro LIBOR fixing applicable to this
following target business day. This index, therefore, will always have a constant maturity of 3 months.
20%
15%
10%
Currency Component
For a US based investor, a significant component of the return in this index may result from changes in
the value of the euro relative to the US dollar based on the Merrill Lynch Euro/US Dollar Spot Exchange
5%
0%
Rate.
Investment Return
Currency Component
Combined Index
The change in the currency exchange rate is combined with the change in the 3 Month Euro LIBOR to
Example 2
arrive at the total return.
Conversely, if the euro depreciates
against the US dollar, the currency
component will reduce the total return
PERFORMANCE
Performance
Investment Return
Currency Component
Combined Index
Quarter
0.07%
-7.73%
-7.67%
YTD
0.24%
-8.32%
-8.10%
1 Year*
0.29%
-6.68%
-6.41%
3 Year*
0.58%
-1.74%
-1.42%
5 Year*
0.72%
-2.73%
-2.18%
10 Year*
2.00%
0.25%
2.17%
*Annualized Return
Historic performance is not necessarily indicative of actual future investment performance, which could differ
substantially. Total return assumes that an investment is made at the beginning of the period and redeemed at the
end of the period after investment of any dividends and capital gains distributions. All returns are calculated in U.S.
dollars.
Performance numbers for this investment option are received from outside sources which are believed to be reliable
and are subject to possible restatement by those sources.
for a US dollar based investor. If the
depreciation is large enough, it can
potentially reduce positive returns from
the money market component to an
overall negative return in US dollars.
10%
5%
0%
-5%
-10%
-15%
-20%
Investment Return
Currency Component
Combined Index
The Merrill Lynch Index names are trademarks of Merrill Lynch, Pierce, Fenner & Smith, Inc.
Risk Level determined by USI Consulting Group.
Continued on Page 2
FACT SHEET
3 Month Euro LIBOR Index
September 30, 2014
CALENDAR YEAR RETURNS
2012
2013
2004
2005
2006
2007
2008
2009
2010
2011
Investment Return
2.14%
2.14%
2.83%
4.14%
5.23%
1.80%
0.75%
1.33%
0.88% 0.20%
Currency Component
7.77%
-13.17%
11.78% 10.84%
-4.93%
3.22%
-6.50%
-3.24%
1.56% 4.52%
10.08%
-11.31%
14.95% 15.43%
0.05%
5.08%
-5.80%
-1.95%
2.45% 4.72%
Combined Index
20%
15%
10%
Investment Return
5%
Currency Component
0%
-5%
Combined Index
-10%
-15%
2004
2005
2006
2007
Investment Return
2008
2009
2010
Currency Component
2011
2012
2013
Combined Index
Note: Performance data shown does not reflect the deduction of any fees or expenses.
Administration fees are $5.00 for every $10,000 in account value (or the portion to which the rate applies)
per year, prorated and charged monthly.
GROWTH OF $100 INVESTMENT
$180
$170
$160
$150
$140
$130
$120
$110
$100
$90
Historic performance is not necessarily indicative of actual future investment performance, which could differ
substantially. Total return assumes that an investment is made at the beginning of the period and redeemed at the
end of the period after investment of any dividends and capital gains distributions. All returns are calculated in U.S.
dollars.
Performance numbers for this investment option are received from outside sources which are believed to be reliable
and are subject to possible restatement by those sources.
The Merrill Lynch Index names are trademarks of Merrill Lynch, Pierce, Fenner & Smith, Inc.
Risk Level determined by USI Consulting Group.
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