PERFORMANCE Average Annual Returns (%) for Period Ended 12/31/2013
  QTR YTD 1 YEAR 3 YEARS 5 YEARS 10 YEARS SINCE
INCEPTION
INCEPTION
DATE
Portfolio 0.65 -1.23 -1.23 3.71 7.76 4.50 5.48 4/30/2002
Barclays U.S. Credit Index 0.92 -2.01 -2.01 5.11 7.89 5.23 6.06  
Lipper VA Corporate Debt Funds BBB-Rated Average 0.65 -1.19 -1.19 4.42 7.34 5.02 5.56  
Portfolio Statistics
  December 31, 2013
  Portfolio Benchmark
SEC Yield 2.64% -
12 Mth Distribution Yield 3.13% -
Duration 5.99 Yrs 6.58 Yrs
Weighted Avg Maturity 8.79 Yrs 9.78 Yrs
Weighted Avg Coupon 4.08% 4.65%
Weighted Avg Price 100.54 106.92
September 30, 2013
Portfolio Benchmark
2.73% -
3.56% -
6.07 Yrs 6.57 Yrs
8.90 Yrs 9.78 Yrs
4.01% 4.72%
99.88 107.40
December 31, 2012
Portfolio Benchmark
2.05% -
3.49% -
6.02 Yrs 6.98 Yrs
8.50 Yrs 10.25 Yrs
4.15% 4.98%
103.65 115.28
Returns Based Statistics (3 Year)
  December 31, 2013
  Portfolio Benchmark
Average Annual Return 3.71% 5.11%
Standard Deviation 3.63% 4.29%
Beta vs. Market 0.74 1.00
Excess Return -1.40% 0.00%
R-Squared 76.57% 100.00%
Tracking Error 2.08% 0.00%
Information Ratio -0.67 0.00
Sharpe Ratio 1.00 1.17
September 30, 2013
Portfolio Benchmark
3.38% 4.13%
3.58% 4.37%
0.71 1.00
-0.76% 0.00%
74.90% 100.00%
2.20% 0.00%
-0.34 0.00
0.92 0.93
December 31, 2012
Portfolio Benchmark
6.81% 8.74%
3.01% 3.69%
0.64 1.00
-1.93% 0.00%
60.55% 100.00%
2.32% 0.00%
-0.83 0.00
2.23 2.34
Performance Attribution (gross returns vs. passive benchmark) 4Q Quarter 2013
Total Effect Duration Effect Curve Effect Sector Effect Selection Effect
-7 19 -18 -3 -5

In the fourth quarter, the fund underperformed its passive benchmark by 7 basis points. Its overweight to the intermediate part of the yield curve and underperformance within credit sectors were the primary drivers of underperformance.

Total effect:Aggregate or total active return, which is return relative to the passive benchmark (outperformance or underperformance).
Duration effect: Active return attributable to overall duration. (Duration measures a portfolio's sensitivity to changes in interest rates. Generally, the longer the duration, the greater the change in value in response to a given change in interest rates.) This measures the effect of a parallel shift either up or down in the entire yield curve.
Curve effect: Active return attributable to yield curve positioning. This measures the effects of a change in the shape of the yield curve (a non-parallel shift).
Sector effect:Active return attributable to sector selection.
Selection effect:Active return attributable to security selection (includes intra-day trading).

All fixed-income attribution measures are in basis points (one basis point is 0.01 percentage points).
Credit Quality
  December 31, 2013
  Portfolio Benchmark
Cash 3.45% -
Government 8.16% -
AAA/Aaa/AAA 3.57% 8.76%
AA/Aa/AA 8.55% 12.35%
A/A/A 28.28% 38.45%
BBB/Baa/BBB 40.53% 40.44%
BB/Ba/BB 2.77% -
B/B/B 2.94% -
CCC/Caa/CCC 0.59% -
CC/Ca/CC - -
C/C/C - -
Not Rated 1.17% -
Equities - -
September 30, 2013
Portfolio Benchmark
2.19% -
5.03% -
4.23% 8.75%
9.77% 12.68%
28.98% 39.74%
40.43% 38.84%
2.79% -
3.16% -
0.71% -
- -
- -
2.72% -
- -
December 31, 2012
Portfolio Benchmark
6.25% -
9.32% -
2.56% 8.86%
7.84% 12.01%
29.53% 39.88%
32.65% 39.25%
6.37% -
4.04% -
0.29% -
- -
- -
1.16% -
- -
Sector Exposure
  December 31, 2013
  Portfolio Benchmark
Corporate 77.38% 78.76%
Government Related 1.74% 21.24%
Securitized 8.44% -
Treasury 7.96% -
Cash and Cash Equivalents 3.74% -
Other 0.74% -
September 30, 2013
Portfolio Benchmark
81.61% 78.66%
1.72% 21.34%
7.89% -
4.89% -
2.14% -
1.74% -
December 31, 2012
Portfolio Benchmark
77.12% 79.64%
1.15% 20.36%
4.62% -
7.81% -
6.17% -
3.10% -
Top Ten Holdings / Percentage of Net Assets
December 31, 2013
  % of Portf.
US TREASURY N/B 3.95%
US TREASURY N/B 2.49%
BANK OF AMERICA NA 2.18%
GOLDMAN SACHS GROUP INC 1.88%
BNSF FUNDING TRUST I 1.80%
JPMORGAN CHASE + CO 1.73%
ENTERPRISE PRODUCTS OPER 1.35%
CITIGROUP INC 1.32%
CITIGROUP INC 1.30%
GECC/LJ VP HOLDINGS LLC 1.28%
Total 19.26%
September 30, 2013
  % of Portf.
US TREASURY N/B 2.45%
BANK OF AMERICA NA 2.30%
GOLDMAN SACHS GROUP INC 1.96%
BNSF FUNDING TRUST I 1.93%
JPMORGAN CHASE + CO 1.80%
US TREASURY N/B 1.68%
VERIZON COMMUNICATIONS 1.63%
AMERICAN INTL GROUP 1.61%
ENTERPRISE PRODUCTS OPER 1.43%
CITIGROUP INC 1.39%
Total 18.17%
December 31, 2012
  % of Portf.
US TREASURY N/B 3.88%
US TREASURY N/B 2.22%
BANK OF AMERICA NA 1.89%
GOLDMAN SACHS GROUP INC 1.68%
JPMORGAN CHASE + CO 1.61%
US TREASURY N/B 1.51%
FNMA TBA 3PCT JAN 30 SINGLE FA 1.38%
ATLANTIC CITY ELECTRIC 1.33%
ASIF GLOBAL FINANCNG XIX 1.27%
SUNTRUST BANK 1.26%
Total 18.03%

Investment in mutual funds involves risk, including possible loss of principal invested. You could lose money on your investment in the Portfolio or the Portfolio could underperform because of the following risks: the market prices of bonds held by the Portfolio may fall; individual investments of the Portfolio may not perform as expected; and/or the Portfolio's portfolio management practices may not achieve the desired result. Bond funds are subject to interest rate risk and credit risk. When interest rates rise, the value of fixed-income securities will generally fall. In addition, the credit quality of the securities may deteriorate, which could lead to default or bankruptcy of the issuer where the issuer becomes unable to pay its obligations when due. An active trading style can result in higher turnover (exceeding 100%), may translate to higher transaction costs, may increase your tax liability, and may affect Portfolio performance. The Portfolio is nondiversified and may be more volatile than a diversified fund.

I800ATT FOR INSTITUTIONAL INVESTOR AND BROKER/DEALER USE ONLY. NOT FOR PUBLIC DISTRIBUTION.