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Overview

RSB Student Managed Fund

A Core Mid Cap Equity Fund

Overview of Fund Investment Objective and Strategies

Fund Facts:

Objective: Long-term capital appreciation

Benchmark:†S&P MidCap 400 Index

Investment Focus:†Stocks of mid-capitalization U. S. companies

Investment Style: Quantitative, applied to mid-cap growth and value (blend) stocks

Investment Objective:

The Fund seeks long-term appreciation of capital.† The Fund seeks this objective through a broadly diversified portfolio of equity securities within the approximate range of the market capitalization of companies constituting the S&P MidCap 400 Index.

Principal Investment Strategies:

Equity Securities.† The Fundís investments are selected using a combination of quantitative techniques and fundamental research in seeking to maximize the Fundís expected return, while maintaining risk, style, capitalization and industry characteristics similar to the S&P MidCap 400 Index.† Potential stock selections are initially generated using quantitative screening techniques based on fundamental valuation, earnings quality and momentum signals.† Final stock selections are made after a detailed fundamental analysis of each stock.† While the Fund invests in a blend of value and growth stocks, growth stocks are only included to the extent that they are priced attractively relative to their growth prospects.† The Fund uses the BARRA U.S. Equity Model to restrict its expected tracking error (active risk) relative to the S&P MidCap 400 Index to 5% per year.

Other Investment Companies.† Given its limited size, the Fund may invest in other investment companies that index the S&P MidCap 400 Index (including MidCap Standard & Poorís Depository Receipts) in order to achieve the joint goals of minimizing active risk and limiting transaction costs.† The Fund invests, under normal circumstances, at least 90% of its total assets in a combination of equity securities and the other investment company securities described above. The Fund limits trading costs by restricting its annual turnover in such securities to a maximum of 50%.

Other Investments.† The Fundís other investments are limited to securities that are considered cash equivalents.

Additional Information:

Additional Investment Restrictions.† The Fundís investments in equity securities are limited to the common stock of companies with market capitalizations of at least $50 million.† Further, these securities must be traded on either the NYSE, Amex or NASDAQ NMS security exchanges.† The Fundís investments in other investment securities are limited to securities that are intended to track the S&P 400 MidCap 400 Index.† Investments in cash equivalents are restricted to money market funds investing primarily in high quality money market instruments with an average maturity of 90 days or less.† The Fund is not permitted to borrow money from banks or other financial institutions (including margin loans).† The Fund is not required to immediately divest itself of any security held by the Fund simply because that securityís characteristics change while it is held by The Fund such that they no longer adhere to the above restrictions.† However, the Fund must divest itself of any security whose characteristics change such that they violate the above restrictions continuously for a period longer than six months.† The fund will be obligated to maintain compliance with the University of Michiganís investment policies, and will report any deviations from such policies promptly to the UM Chief Investment Officer.

Reporting Requirements.† The Fund shall submit monthly reports to UM Treasurerís Office within two weeks of the end of each calendar month.† Such reports will provide a complete Statement of Net Assets for the Fund as of the end of the calendar month, a Statement of Operations for the calendar month, a Statement of Changes in Net Assets for the calendar month, a listing of all transactions made during the calendar month and a comparison and analysis of the performance of The Fund relative to the S&P MidCap 400 Index. †The UM Treasurerís Office may prescribe the format that such monthly reports may take.† Such monthly reports will be prepared in a fashion to report both monthly and year-to-date results.