Bond Fund Fact Sheet Investment Manager: Dodge & Cox

Information current as of June 30, 2021

Objective Benchmark The Fund seeks a high and stable rate of current income, consistent with The performance of each URS core investment long-term preservation of capital. A secondary objective is to take advantage of option will be evaluated relative to a market index opportunities to realize capital appreciation. known as a benchmark. The benchmark for the Bond Fund is the Bloomberg Barclays U.S. Aggregate Bond Strategy Index, which is a widely used, nationally recognized This fund invests in a diversified portfolio consisting primarily of high-quality bonds index representing U.S. investment grade bonds. The and other securities, including U.S. government obligations, mortgage benchmark index is not available for investment and and asset-backed securities, corporate bonds, collateralized mortgage obligations, and does not reflect investment costs; it is shown here for others rated A or better. To a lesser extent, the fund may also invest in fixed income comparison purposes only. securities rated Baa/BBB or lower. In selecting securities, the manager considers many factors, including , quality, liquidity, call risk, , and capital The rates of return for the Bond Fund and the appreciation potential. Bloomberg Barclays U.S. Aggregate Bond Index are listed below. When comparing returns of the Bond Sector Diversification Fund to its benchmark, it is important to note the Federal Agency returns shown for the benchmark index have not CMO 4.06% Cash Equivalents 1.04% had fees deducted. The rates shown for the Bond Corporate Federal Agency Fund are net of fees (fees have been deducted from Finance 11.91% Mortgage Pass- the rates of return). Through 29.23% Annualized Quarter 1-Year 3-Year 5-Year 10-Year 15-Year Bond Fund 1.98% 3.23 6.75 4.72 4.48 5.42 Corporate U.S. Treasury Industrial 19.67% Bloomberg Barclays 24.01% U.S. Aggregate Index 1.83% -0.33 5.34 3.03 3.39 4.43 Related 4.35% Corporate Utility 1.66% †Investment and Administrative Fees Asset-Backed 4.07% Investment fees are charged by the fund managers to cover the costs of investing money.

Fund Statistics Credit Quality Ratings Percent of Fund Administrative fees cover the costs of maintaining Annual Expense Ratio†: 0.26% AAA...... 60.64% a retirement plan, such as customer service, AA...... 0.95 statements, and recordkeeping. Both fees are Weighted Average A...... 5.30 charged as a fraction of a percent of the assets Maturity...... 8.36 Years BAA...... 21.82 under management and are calculated in each Effective Duration...... 5.31 Years Below BA...... 10.25 fund’s daily unit value. Therefore, balances in Quality...... AA- Cash Equivalents...... 1.04 participant accounts and all rates of return are ...... 2.94% Yield to Maturity...... 1.77% shown after these fees have been deducted. The Current Yield...... 2.57% chart below shows the annual investment fee †See explanation to right. added to the administrative fee to give the total fee charged for the Bond Fund. The chart also Annualized indicates the annual dollar amount charged per

Quarter 1 Year 3 Years 5 Years 10 Years 15 Years $1,000 invested. Returns Annual Annual Total Dollars Period ended June 30, 2021 1.98% 3.23% 6.75% 4.72% 4.48% 5.42% Investment Administrative Annual per Fee Fee Fee $1000 Fund Performance by Calendar Year Bond Fund 0.10% 0.16% 0.26% $2.60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5.1% 7.7% 0.5% 5.9% -0.3% 5.9% 4.6% -0.04% 9.60% 10.51%

07/20/21 Bond Fund Fact Sheet Information current as of June 30, 2021

Principal Risks of Investing Transfers You could lose money by investing in this Participants are allowed to submit one transfer request (whether electronically, fund, and this fund could underperform by fax, mail or hand delivered) for their current account balances every 7 days. other investments. This applies separately to each plan in which they participate — the 401(k), 457, Roth IRA and traditional IRA each constituting separate plans. In addition, This fund’s performance could be individuals who transfer any or all of their current account between core affected by: investment options more often than once every 30 days will be charged a 2% • Interest Rate Risk: Bond prices may administrative fee on amounts transferred. Each transfer, after being processed, decline due to rising interest rates. Bonds will start a new 30-day period. The fees generated by this policy will be used to with longer maturities tend to have reduce the administrative expenses for all plan participants. higher yields and are generally subject to Transfer requests received at URS before the close of the New York Stock potentially greater volatility than those Exchange (NYSE), generally 2:00 pm Mountain Time, will be transferred using with shorter maturities and lower yields. that evening’s closing market values. Requests received after the close of the • Credit Risk: A bond’s price may decline NYSE will be transferred using the next business day’s closing market values. due to deterioration in the issuer’s On days of unusually heavy transfer activity, computer system failure, or other financial condition, or the issuer may fail unforeseen circumstances, URS reserves the right to process transfers using the to repay interest and/or principal in a next available business day’s closing market values. timely manner. • Call Risk: During periods of falling interest rates, issuers of callable bonds may repay The Fund described in this Fact Sheet is not ­insured; is not a deposit or obligation of, securities with higher interest rates before nor guaranteed by, any financial institution; and is not guaranteed by Utah Retirement maturity. This could cause the fund to lose Systems or any government agency. potential price appreciation if it reinvests Because you make the investment decisions about your account, the plan’s Sponsor, the proceeds during periods of lower Trustees, and others associated with the investments may be relieved of liability interest rates. for investment performance. Utah Retirement Systems regularly evaluates the • Mortgage and Asset-backed Securities performance of its investment managers and may change managers at any time. Risk: Early repayment of principal (e.g., The Fund may utilize transactions involving securities lending in order to prepayment of principal due to sale of generate additional income for the portfolio. Although risk of loss from the underlying property, refinancing, or securities lending is low, securities lending is not without risk. foreclosure) of mortgage-related securities (or other callable securities) exposes the fund to a potential loss on any premium to face value paid and to a lower rate of return upon reinvestment of principal. Utah Retirement Systems In addition, changes in the rate of prepayment also affect the price and price Savings Plans Department volatility of a mortgage-related . PO Box 1590, Salt Lake City, UT 84110-1590 Visit us at 560 East 200 South, Suite 200, Salt Lake City, Utah 84102-2021 801-366-7720 • 800-688-401k The past performance Southern Utah Branch Office of the fund does not 20 North Main Street, Suite 206, St. George, UT, 84770 guarantee future results. 435-673-6300 • 800-950-4877 www.urs.org