The Target Small Company Value Index is a focused measurement of the small capitalization value sector of the market. The index is comprised of small companies. These companies are monitored using a variety of relative value criteria in order to capture the most attractive value opportunities available. A high quality profile is required, eliminating companies that are undergoing adverse financial pressures. Companies that do not fall clearly into the defined value category are eliminated.

• Derived from the Target Next 1750 Universe.
• Companies listed in this index are those that, on a relative basis, are attractively priced based on earnings, book value, and yield.
• All criteria are relative so that the index is not affected by the changing levels of these measures during different market periods.
• Changes in the index occur quarterly to ensure that the portfolio always reflects the best configuration for the style.

• Orientation of the index is one that eliminates those companies that do not fit the value criteria, as opposed to establishing explicit cutoffs for each measure.

• The index is readjusted quarterly.
• A security will be excluded from the index when it stops trading.
• Shares outstanding may be adjusted to reflect corporate events during the quarter; otherwise, shares outstanding are updated once per quarter.