ILLUSTRATIONS OF ASSUMED INVESTMENTS IN THE TAKESTOCK PLAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73B00296R000500230001-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 19
• Document Creation Date: December 19, 2016
• Document Release Date: August 30, 2005
• Sequence Number: 1
• Publication Date: October 1, 1966
• Content Type: REPORT

IU2.1
Approved For Release 2005/11/
0 1
fffflMy F1 9 0
11I I I fW Y TREND FUND
FOR PERIOD June 16, 1958*-July 31, 1966
INVESTMENT PER
DOLLARS
VALUE
PAY PERIOD
PUT IN
JULY 31, 1966
$5
$ 1,061.00
$ 3,700.00
10
2,124.00
7,403.00
25
5,309.00
18,509.00
50
10,617.00
37,015.00
*Date fund was started.
ILLUSTRATIONS OF
ASSUMED INVESTMENTS
IN THE
TAKESTOCK
INVESTMENT IN PURITAN FUND
FOR PERIOD January 1, 1956-July 31, 1966
INVESTMENT PER
DOLLARS
VALUE
PAY PERIOD
PUT IN
JULY 31, 1966
$ 5
$ 1,375.00
$ 2,672.00
10
2,752.00
5,345.00
25
6,879.00
13,363.00
50
13,758.00
26,724.00
BASED ON 1% SALES CHARGES
All dividends reinvested and capital
gains accepted in shares.
Period covered by above studies was one of generally rising common stock
1
lA
0
or Release 200a prof or protect against ciepr
e is ion in declin 'Iing markets.
In~St Crated above do not assume
~~~~ It
~
$f~~
%
 FIDELITY TR ND F,UNN~~ ICS ILLOT RATION OF AN ASSUMED TAKE-STOCK PLAN
ApprovedFdr a ease 2 : CIA-RDP73B00296R000500230001-1
in terms of continuous investments of $5 each bi-weekly pay period with Dividends
Reinvested and Capital Gains Distributions Accepted in Shares. Based on 1% Sales
Charge.
The table below covers the period from June 16, 1958 to July 31, 1966, a period of generally rising common
stock prices. The results shown should not be considered as a representation of the dividend income or capi-
tal gain or loss which may be realized from an investment made in the Fund today. A program of the type
illustrated does not assure a profit or protect against depreciation in declining markets.
COST OF SHARES PURCHASED
VALUE OF SHARES
YEAR
ENDED
DEC. 31
AMOUNT OF
DIVIDENDS
REINVESTED
ANNUALLY
CUMULATIVE
DIVIDENDS
REINVESTED
TOTAL OF
INITIAL AND
PERIODIC
INVESTMENTS
TOTAL COST
INCLUDING
REINVESTED
DIVIDENDS
FROM
INITIAL AND
PERIODIC
INVESTMENTS
ACCEPTED
AS CAPITAL
GAINS
SUB-
TOTAL
FROM
DIVIDENDS
REINVESTED
TOTAL
VALUE OF
INVESTMENT
1958* $
$ -
$ 76
$ 76
$ 94
$ -
$ 94
$ -
$ 94
1959
1
1
206
207
292
16
308
2
310
1960
4
5
336
341
535
42
577
7
584
1961
5
10
I 466
476
1,030
80
1,110
18
1,128
1962
15
25
596
621
944
64
1,008
29
1,037
1963
19
44
726
770
1,522
92
1,614
61
1,675
1964
27
71
856
927
1,859
104
1,963
96
2,059
1965
32
103
986
1,089
2,960
271
3,231
176
3,407
1966**
-
103
1,061
1,164
3,086
435
3,521
179
3,700
*June 16 to December 31 only. **January 1 to July 31 only.
Dollar amounts of capital gains distributions accepted in shares were: 1958-none; 1959-$15; 1960-$18; 1961-$7; 1962-none; 1963-none; 1964-none; 1965-$74; 1966-$150: Total-$264.
PURITAN FUND, INC. / ILLUSTRATION OF AN ASSUMED TAKE-STOCK PLAN
in terms of continuous investments of $5 each bi-weekly pay period with Dividends
Reinvested and Capital Gains Distributions Accepted in Shares. Based on 1% Sales
Charge.
The table below covers the period from January 1, 1956 to July 31, 1966, a period of generally rising common
stock prices. The results shown should not be considered as a representation of the dividend income or capi-
tal gain or loss which may be realized from an investment made in the Fund today. A program of the type
illustrated does not assure a profit or protect against depreciation in declining markets.
COST OF SHARES PURCHASED
VALUE OF SHARES
YEAR
ENDED
DEC. 31
AMOUNT OF
DIVIDENDS
REINVESTED
ANNUALLY
CUMULATIVE
DIVIDENDS
REINVESTED
TOTAL OF
INITIAL AND
PERIODIC
INVESTMENTS
TOTAL COST
INCLUDING
REINVESTED
DIVIDENDS
FROM
INITIAL AND
PERIODIC
INVESTMENTS
ACCEPTED
AS CAPITAL
GAINS
SUB-
TOTAL
FROM
DIVIDENDS
REINVESTED
TOTAL
VALUE OF
INVESTMENT
1956
$ 3
$ 3
$ 130
$ 133
$ 128
$ 1
$ 129
$ 3
$ 132
1957
12
15
260
275
213
3
216
13
229
1958
20
35
390
425
455
4
459
42
501
1959
27
62
520
582
632
13
645
74
719
1960
36
98
650
748
712
34
746
104
850
1961
44
142
780
922
937
68
1,005
163
1,168
1962
53
195
910
1,105
978
88
1,066
201
1,267
1963
62
257
1,040
1,297
1,245
131
1,376
293
1,669
1964
76
333
1,170
1,503
1,482
207
1,689
394
2,083
1965
86
419
1,300
1,719
1,884
289
2,173
558
2,731
1966*
78
497
1,375
1,872
1,817
268
2,085
587
2,672
n..,..,reya r For Release 2005; ".;21 . CI - 1
*January 1 to July 31 only.
Dollar amounts of capital gains distributions accepted in shares were: 1956-$1; 1957-$2; 1958-none; 1959-$9; 1960-$21; 1961-$29; 1962-$24; 1963-$30; 1964-$63; 1965-$39; 1966-none; Total - $218.
 other than death or retirement, the value of
his equity in the Savings Plan will be paid to
him. Payment shall be in a lump sum, unless
the participant elects within such time as the
Board shall prescribe to have such payment
made (a) in installments in such amount and
over such period as may be requested by
the participant and as can be conveniently
arranged by the Board at the participant's
expense through the investment company or
a custodian of such funds, or (b) by transfer
to him of shares of equivalent value in an
investment company or companies in which
any of the assets of the Savings Plan are
currently invested, subject to investment
policies and practices then in effect.
6. In addition to the other times for distribution
of a participant's equity as provided in this
article 5, a participant whose current period of
participation in the Savings Plan is as much
as three years, may, with the Board's approval,
withdraw in a lump-sum one-half or all of his
equity in the Savings Plan. If the participant
withdraws one-half of his equity in the Plan,
he shall not be permitted to make further
contributions thereto until two years after
such withdrawal; if he withdraws his entire
equity, his participation in the Plan shall
cease and he shall not be entitled again to
participate earlier than three years following
such withdrawal.
7. The liquidation in whole or in part of a par-
ticipant's equity in the Savings Plan in order
to make a lump-sum payment or transfer as
provided in the preceding paragraphs of this
article shall be made on the basis of the net
asset value of the respective investment com-
pany shares as of the close of business on
Friday (or the last business day of the New
York Stock Exchange for that week if Friday
is not a business day) of the week in which
the Board receives the participant's (or bene-
ficiary's) election of a lump-sum payment or
transfer, provided it is received by noon of
such day; otherwise, such liquidation shall be
made on the basis of the net asset value at
the close of the last business day of the
succeeding week. Arrangements for payment
of the participant's equity in installments
through a custodian or by transfer of shares
in an investment company shall be completed
by the Board as soon as practicable and on the
basis of values at the time such arrangements
are effected. Any portion of a participant's shall act in a manner which will achieve,
contributions 11apVr &ld l4ircl9 4fi~ Zi4% Iif1121 : CIA-RD 73RQ0:,Q6 f&Q20QQ1fvlrmity of treat-
liquidation of his equity therein is not reflected ment among all the participants.
in his equity account shall be refunded to the 3. Insofar as not inconsistent with these "Terms
participant or his beneficiary, as the case and Conditions," the Rules and Regulations
may be. I- 11 b
d
l
f
h
R
S
t
Article 6
Termination of the Savings Plan
TVA may terminate the Savings Plan at any
time, and in that event, the Board will liquidate
the assets in the various funds of the plan and
will distribute the proceeds thereof among the
participants in proportion to their respective
equities in the funds. Payment may be made in
one of the forms specified in paragraph 5 of
article 5 of these Terms and Conditions, or the
participant may at his election have part or all
of his equity transferred to the Retirement
System as a lump sum contribution thereto,
subject to the limitations of section 9A, paragraph
5, of the Rules and Regulations.
Article 7
Amendments to Terms and Conditions
These Terms and Conditions may be amended by
the Board from time to time, provided the Board
gives at least 30 days' notice of the proposed
amendment to TVA and to the participants. TVA
may, by notice in writing addressed to the Board
within said 30 days, disapprove any such proposed
amendment and, in that event it shall not become
effective. No such amendment may diminish the
equity which a participant has theretofore ac-
quired in a savings fund.
an
By
aws o
t
e
etirement
ys
em s a e
applicable to the administration of the Savings
Plan. In application of the foregoing and not
in limitation thereof, the following provisions
of the Rules and Regulations are made appli-
cable to the Savings Plan:
a. The provisions of section 3, paragraph 7,
as regards the efficacy of the Board's de-
terminations in administration of the plan;
b. The provisions of section 6D1 as regards
the right of set-off by TVA against a mem-
ber's contributions to satisfy a debt owed
it by the member;
c. The provisions of section 11, paragraphs 7,
8, and 9, as regards, respectively, (1) ex-
tensions of time for filing applications for
benefits or other instruments, (2) the use
of prescribed forms in applying for bene-
fits or designating or changing benefici-
aries, and (3) the efficacy of beneficiary
designations;
d. The provisions of section 12 prohibiting
the assignment or encumbrance of benefits.
General Provisions
1. Neither the Board, the Retirement System,
the Tennessee Valley Authority, nor any
officer, employee, or agent thereof, shall incur
any liability on account of any loss or decrease
in the value of the assets of any of the funds
in the Savings Plan, or in the amount of any
member's equity therein, resulting from de-
preciation in the value of or earnings on the
investment company shares purchased.
2. In all matters of administration of the Savings
Plan which require the Board's approval or
otherwise involve its discretion, the Board
Approved For Release 2005/11/21 CIA-RDP73B00296R000500230001-1
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TERMS AND CONDITIONS
OF THE
VOLUNTARY RETIREMENT SAVINGS
AND INVESTMENT PLAN
Definitions
1. "Savings Plan" shall mean the Voluntary Re-
tirement Savings and Investment Plan as
herein established for members of the TVA
Retirement System.
2. "Retirement System" shall mean the retire-
ment system established as of November 1,
1939, for TVA Annual Employees.
3. "Member" shall mean a member of the Retire-
ment System.
4. "Participant" shall mean a member of the
Retirement System who has elected to par-
ticipate in the Savings Plan.
5. "Rules and Regulations" shall mean the Rules
and Regulations, as amended from time to
time, under which the Retirement System
operates.
6. "Terms and Conditions" shall mean the terms
and conditions set out in this document, or as
the same may be amended, under which the
Savings Plan operates.
7. "Board" shall mean the Board of Directors of
the Retirement System.
8. The masculine pronoun wherever used shall
include the feminine pronoun.
9. Other terms used herein shall, unless a con-
trary meaning is clearly indicated, have the
same meaning as provided in the Rules and
Regulations.
 Participation
1. Any Retirement System member who is cur-
rently enrolled for the purchase of United
States Savings Bonds through payroll deduc-
tions may elect to participate in the Savings
Plan or modify his participation, within the
limitations prescribed in or pursuant to para-
graphs 1 and 2 of article 4 hereof, by filing
with the Board the prescribed election form.
Such participation or modification shall become
effective as soon as practicable after the
Board's receipt of the form.
2. Except as provided in paragraph 6 of article
5, a member's participation in the Savings
Plan shall continue so long as he remains a
member of the System but he may discontinue
his contributions at any time through a modi-
fication notice in accordance with paragraph 1
and his contributions shall be discontinued for
him at any time he ceases to be enrolled for
the purchase of United States Savings Bonds
through payroll deductions.
Savings Funds
1. As part of the Savings Plan the Board shall
establish initially two savings funds to which
the contributions made by the participants as
provided in article 4 shall be credited in ac-
cordance with their respective designations,
together with all income earned or other gains
realized on the assets held in the respective
funds. The assets of one such fund will be
invested in the shares of Fidelity Trend Fund,
Inc. under its Single Payment Plan, and the
assets of the other fund will be invested in the
shares of Puritan Fund, Inc. under its Single
Payment Plan. The Board may, at its election,
establish other such savings funds and desig-
nate the regulated investment company in
whose shares the assets of the respective fund
shall be invested; provided, however, that the
Board shall notify TVA of its intention to
establish another such fund not less than 30
days prior to the effective date thereof and
such fund shall not be established if TVA dis-
approves the same within 30 days after receipt
of such notice. Upon establishment of any
additional fund, the members shall be given
an opportunity to participate therein in ac-
cordance with the provisions of article 4. The the savings fund by application to the par-
investment inAi1arokedeForrfRWeaiwQ08W4tl121 : CIA-RDPI7i3BOa296 005001 b0O0$ to the fund
company shall be made in each case in accord- during such period of the average cost of all
ance with and subject to the options, privileges, the investment company shares purchased for
and terms and conditions of the applicable in- the fund in the same period, provided that
vestment plan of the company. such period will not be more than a month.
2. Each of the funds of the Savings Plan shall
constitute a separate trust which shall be
administered and maintained by the Board
entirely separate and apart from all other
funds and accounts of the Retirement System.
The assets of each such fund shall be invested
by the Board exclusively in the shares of the
investment company designated by or pursuant
to the provisions of paragraph 1 and shall be
used exclusively in payment of benefits to the
participants in the fund, or their beneficiaries,
Any distribution of cash or stock dividends or
capital gains by the investment company will
be prorated among the participants' accounts
on the basis of their respective equities in the
fund. The Board will maintain appropriate
accounts showing the equity of each par-
ticipant in the respective savings funds.
Benefits under the Savings Plan shall normally
be distributable at the time of the participant's
retirement or death, or termination of member-
ship in the System for other cause, it being
intended that the Plan will provide a flexible
means of supplementing the benefits provided
under section 6 of the Rules and Regulations.
as such benefits become due and payable under
these Terms and Conditions.
Contributions
1. Each participant in the Savings Plan may con-
tribute to one or two of the established savings
funds, as he elects, through payroll deductions;
provided that such contribution shall be in
whole dollars and not less than $5 per biweekly
payroll period for each fund in which he par-
ticipates; provided, further, that such payroll
deductions for contributions by the participant
to the Savings Plan may not, when added to
his contributions to the Retirement System,
exceed a total of 16 percent of his earnable
compensation for the pay period.
2. A participant may from time to time and
within the limits set out above modify his rate
of contribution to the Savings Plan, or change
his current contribution from one established
savings fund to another, subject to such limi-
tation on frequency of change as the Board
may prescribe. Subject to such conditions as
the Board may impose, a participant may also
be permitted to transfer his previously ac-
quired equity in one savings fund to another.
3. The equity which a participant acquires in the
assets of any savings fund shall be expressed
in units, each of which shall be the equivalent
of one share of the investment company in
which the fund is invested. The Board will
determine on a periodic basis the equity which
a participant acquires by his contributions to
2. The normal method of distribution of the par-
ticipant's equity in the Savings Plan shall be
by transfer of the value of such equity at the
time of his retirement to the Retirement
System's Accumulation Account for conversion
to a fixed-dollar annuity which is the actuarial
equivalent of the amount so transferred, or to
the Variable Annuity Fund for conversion to
a variable annuity. The participant may, at
the time he makes application for retirement
or designates the manner in which his retire-
ment allowance will be paid and subject to
the Board's approval, select an alternative
method of distribution which may be (a) in-
stallment payments in such amount and over
such period as may be requested by the mem-
ber and as can be conveniently arranged by
the Board at the member's expense through
the investment company or a custodian of such
funds, (b) transfer to the member of shares
of equivalent value in an investment company
or companies in which any of the assets of the
Savings Plan are currently invested, subject to
investment policies and practices then in
effect, or (c) a lump sum payment. In the case
of a deferred retirement, the participant's
election as to the method of distribution of
his equity may be made when his employment
ceases or when his retirement allowance
begins, or he may select at any intervening
time, subject to the Board's approval, one of
the alternative methods of distribution de-
scribed above.
3. On the death of a participant as a member in
service of the Retirement System, his equity
in the Savings Plan shall be paid in a lump
sum to the beneficiary or beneficiaries desig-
nated to receive the death benefit provided
for in section 6D2 of the Rules and Regu-
lations, or to his estate, if no beneficiary has
been designated; provided that the beneficiary,
if only one person has been so designated, may
elect to have the participant's equity in the
Savings Plan transferred to the Retirement
System's Accumulation Account for conversion
along with the death benefit to one of the
optional forms of settlement described in
section 6F of the Rules and Regulations, or to
the Variable Annuity Fund for conversion to
a variable annuity. Such beneficiary may also
elect, subject to the Board's approval, to re-
ceive the participant's equity in the Savings
Plan (a) in installment payments in such
amount and over such period as may be
requested by the beneficiary and as can be.
conveniently arranged by the Board at the
beneficiary's expense through the investment
company or a custodian of such funds, or (b)
by transfer of shares of equivalent value in
an investment company or companies in which
any of the assets of the Savings Plan are
currently invested, subject to investment
policies and practices then in effect. A par-
ticipant may at his election make a separate
designation of beneficiary or beneficiaries to
receive his equity in the Savings Plan upon his
death in service, and in that event such equity
shall be payable only in a lump sum or as
provided in items (a) and (b) above.
4. On the death of a participant under the
circumstances described in section 6B3 or
section 6D3 of the Rules and Regulations, his
equity in the Savings Plan shall be paid in a
lump sum to the beneficiary, or the partici-
pant's estate, entitled to receive the Retire-
ment System benefits provided for under the
respective sections, unless the participant shall
have designated a separate beneficiary to
receive his equity in the Savings Plan.
5. Upon termination of a participant's member-
ship in the Retirement System for reasons
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-2- -3- -4- -5-
 Approved For Release 2005/11/21 : CIA-RDP73B00296R000500230001-1
TAKESTOCK
Appro~_ = 230001-1
 Approved For Release 2005/11/21 : CIA-RDP73B00296R000500230001-1
YOUR RETIREMENT PROGRAM EXPANDS
t 1e Tennessee Valley Authority sin(--- 1939
as proyictcci its annum employees wi,n a re-
r< ment m s _ram th:_rt ranks among [(1e best
.
kW. in tihc:,e days (1i rising costs oi Irvin
tir
~nw,er He exm)ectanc_N. earlier and n::ure ac-
"em-cn_ena years. vrnr may want sr ii more
onev at retiretnenr. Cyr even soo:icr. for
tiny nn nev emerL>encies or (Miter special
~cwd . Arrci ou'd like th,s new ben.et t to be
nic... vine you an :>nnortunity t) grow
rr:mciaiiy with our groxving U.S. ec: Trtomv.
u III- A ,w Sups' errte'nt your me' cement
mie;tts bs cnroilin~ ir1 a %oiuni.arv mutual
a--ii s.avir.s and investment till de-
-~~tec ~y cur TVA Reairernent SvstL rn.
to olkciai name c.or the plan is Vc untary
rem?ni Savings and Investment Prin. For
. doses -1 sintp is tv, rue Board .as de-
idcd t? c.ii it the I'AKE Si OCK Plan.
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 Approved For Release 2005/11/21 : CIA-RDP73B00296R000500230001-1
THE PLAN IN BRIEF
The TAKE STOCK Plan provides ... through regu-
lar payroll deductions ... a simple, convenient means
of buying many well-selected stocks in American
industry in one economical "package" of mutual
fund shares. Spreading your money this way reduces
your investment risk. Professional management also
increases your opportunity for gain in value. For, as
times and conditions change, the mutual funds' pro-
fessional investment managers sell some stocks and
buy others, in an effort to attain your investment ob-
jectives.
HOW YOUR INVESTMENTS ARE MANAGED
In the TAKE STOCK Plan, the Board has set up two
accounts. The assets of one will be invested in shares
of Fidelity Trend Fund Inc. Assets of the other will
be invested in shares of Puritan Fund Inc. Your
money will be invested in either or both of these mu-
tual funds, as you choose. Income and capital gains
distributions paid by the funds will be reinvested in
additional shares.
Both mutual funds are under the management of Fi-
delity Management and Research Company, Boston,
Massachusetts, established in 1943. It serves as ad-
viser to ten mutual funds representing more than
435,000 investors and having combined assets of
over $21/2 billion.
WHY TWO MUTUAL FUNDS?
The TAKE STOCK Plan gives you a choice of the
two objectives that most investors seek: Capital ap-
preciation and income.
Approved For Release 2005/'121 : CIA-RDP73B00296R000500230001-1
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 Approved For Release 2005/11/21 : CIA-RDP73B00296R000500230001-1
FIDELITY TREND FUND INC.
The primary objective of Fidelity Trend Fund is
capital appreciation. It involves a higher risk but of-
fcrs the possibility of greater capital growth.
PURITAN FUND INC.
The investment objective of Puritan Fund is to ob-
tain the maximum income possible, consistent with
the preservation and conservation of capital.
INVESTORS' FAVORITES
These two mutual funds are established favorites
with many thousands of U.S. investors. One reason:
Their unusual record of accomplishment for share-
holders. Fidelity Trend Fund, ever since its founding
in 1958, has been an outstanding performer among
growth funds. Of course, there is no guarantee that
future performance will be the same as in the past-
it may not be as good; it may be better. Puritan Fund
likewise has been an outstanding fund of the income
type. Since its founding in 1946, it has grown to over
one-half billion dollars in assets, with shares owned
by more than 55,000 investors all over the free world.
Certainly, there are no absolutes or guarantees con-
cerning investment results or income from mutual
fund shares. But with past performance as the meas-
ure, you can have confidence in the proven manage-
ment of the two funds selected. In the lone run, if
present economic trends continue, it is not unreason-
able to hope that your investment will grow in value.
However, you should understand that mutual fund
Approved For eleaseekU05811~'/ ~1`~1 dA"-'Rb'FS~I `6b 96R000500230001-1
 Approved For Releas
M
PRINCIPAL ADVANTAGES TO YOU
1. Hedge Against Inflation. The TAKE
STOCK Plan provides a flexible supple-
ment to your Retirement System benefits.
The Plan is tied to our expanding U. S.
economy. Thus it should help you keep
pace with higher prices, and with result-
ing decreases in the buying power of the
dollar.
2. Top Convenience. The TAKE STOCK
Plan offers an easy, automatic way to in-
vest in a portfolio of selected securities,
on a fully voluntary basis, to be adminis-
tered by the TVA Retirement System. It
gives you an opportunity to provide more
for your Tomorrows.
3. Taxes Deferred. By leaving your mon-
ey in the Plan, you will not have to report
dividends and capital gains as current in-
come for tax purposes. Taxes are deferred
until your funds are withdrawn. This sav-
ing could result in a sizeable increase in
your investment returns.
4. Big Reduction In Purchase Price.
Normally, it would cost you 71/2 % to
81/2 % in sales charges to buy mutual funds
on your own. Because of the TAKE
STOCK Plan's anticipated volume of
group purchases, this cost will be sub-
stantially reduced and may go as low as
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WHAT IS A MUTUAL FUND?
Money set aside by thousands of individuals is com-
bined into one large investment fund. For each in-
dividual, this makes it possible to own a simple,
convenient package of many different securities.
Professional investment managers select diversified
investments among companies in many industries,
and keep the securities under continuous review. The
cost of this service is allocated among all mutual
fund shareholders. This enables each to obtain the
many investment advantages ordinarily enjoyed only
by the very wealthiest investors.
HOW INCOME AND PROFITS
ARE DISTRIBUTED
1. Periodically the fund distributes the varying divi-
dends and interest received (less the modest man-
agement fee and other expenses) pro rata to share-
holders as dividends from investment income. The
"shareholder" in the TAKE STOCK Plan is the
TVA Retirement System Board-it reinvests the
dividends in the same mutual fund and credits the
additional shares to your account.
2. There are two ways in which any increased value
of the funds' investments is passed on to the investors:
a. INCREASED SHARE VALUES. The value of
each share (net asset value) is computed twice daily
from the total market value of all of the securities held
by the fund. Since funds under Fidelity Management
will normally redeem their shares on any business
day, the investor who sells when the value of his in-
vestment is more than its cost (it may be less) would
receive his proportionate part of the funds' gains in
cash as part of the redemption proceeds. Incidentally,
Fidelity Trend and Puritan share values are reported
daily in all leading newspapers throughout the coun-
try.
b. CAPITAL GAINS DISTRIBUTIONS. After the
end of the mutual funds' business year, any profits
realized from the sale of securities will be paid as
capital gains distributions in additional shares of
the fund. It should he noted that capital gains ~ dis-
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MONEY INVESTED FROM
SHAREHOLDERS IS INVESTED
IN VARIOUS INDUSTRIES
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7
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 Approved For Release 2005/11/21 : CIA-RDP73B00296R000500230001-1
HOW CAN I TELL HOW MUCH I
HAVE IN THE PLAN?
You will receive quarterly statements from your Re-
tirement System showing the number of shares held
for you. The current prices of mutual fund shares
are carried daily on the financial pages of news-
papers. So, knowing the number of shares in your
account, and the "bid price" (net asset value) you
can easily compute their current value.
HOW DO I KNOW WHERE MY MONEY
IS BEING INVESTED?
You will receive regular reports from the mutual
funds showing the securities presently held in the
funds, as well as investment changes.
HOW DO I COLLECT MY BENEFITS?
At the time you apply for retirement, or when you
decide how your retirement allowance is going to
be paid, you will select the method by which you
want to receive your equity. You may select one of
four ways:
a. Your TAKE STOCK investments can be trans-
ferred into the TVA retirement fund and you can
choose either a fixed annuity or variable payments.
b. You may take monthly installment payments of
a specified dollar amount under the mutual fund
withdrawal program, as described in the fund pros-
pectus.
C. Mutual fund shares equal in value to your equity
can be transferred to you.
d. You can take a lump-sum payment in cash.
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WHAT HAPPENS IF I DIE
BEFORE RETIREMENT?
In the event of your death before retirement, your
beneficiary would have the same choices that would
have been available to you at retirement.
WILL MY TAKE STOCK HOLDINGS REDUCE
MY OTHER RETIREMENT BENEFITS?
Not at all. Your sharing in the TAKE STOCK Plan
gives you supplemental money to make your re-
tirement more comfortable.
IS MY EQUITY AVAILABLE ONLY
AT RETIREMENT?
No. Your equity in the TAKE STOCK Plan can be
partially or totally cashed in-after three years-to
meet special needs. This gives you somewhat more
flexibility than you have with money you contribute
to the retirement plan-toward either a fixed or var-
iable annuity. Those contributions are available to
you only if you quit or retire-or to your beneficiary,
if,you die b fc)xc
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WHO CONTROLS MY MONEY?
1. The TVA Retirement System Board of Directors
has administrative direction of the Plan.
2. The professional investment managers of the two
mutual funds make the investment decisions.
HOW WILL MY HOLDINGS BE TAXED?
Tax laws and the interpretation of them may change.
On the basis of the present law and interpretations,
the TAKE STOCK Plan gives an important twofold
advantage:
Deferred Tax Benefit: You receive a deferment of
taxes on all income and capital gains distributions
paid by the mutual funds on your investment. If you
leave your investment in the Plan, these taxes are
not due until after retirement, when your tax bracket
is likely to be lower. Besides, your profit (the value
of your equity less the amount you have invested) will
be taxed at the lower capital gains rate if it is received
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No Tax Return Bother:l'hroughout the years when
you are investing, you are relieved of the responsi-
bility for making any income tax accounting for the
dividend and capital gains distributions made by the
mutual funds.
WHAT RISKS DO I RUN?
bike any stock investment, mutual fund shares en-
tail a degree of market risk but, because of the mu-
tual funds' diverse holdings of securities, coupled with
their professional managcrnent, they may offer the
investor less risk than individual purchases of a
relatively small number of similar securities.
For most TVA employees, the -FAKE STOCK Plan
will he a long-term investment. And over the long
pull, investors have found mutual funds to be an ef-
fective hed,_,e against inflation.
I listorically , prices of common stocks representing
ownership in U. S. industry generally have grown in
value. According to the Dow-Jones Index of indus-
trial stock prices, the average value has increased by
about 14 times since i90( . and by about 71/ times
in the _ years since 1940. Assuming this growth
continues for the future as it has in the past, mutual
fund investment offers a convenient and effective
way to participate in it.
Fodav, more than 3' million people have some
thirty-five billion dollars invested in mutual funds.
A record that s ,yaks fur itself.
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THE PLAN'S ADVANTAGES: A SUMMARY
1. Top convenience in a wholly voluntary plan, with
administrative costs paid by your Retirement Sys-
tem.
2. Your invested dollars stay within your personal
reach, hearing in mind that the value of your
equity may be more or less than its cost.
3. A flexible supplement to Retirement System bene-
fits that gives you a valuable hedge against in-
flationary rises in living costs.
4. Taxes deferred on dividends and capital gains
paid by your mutual funds while your money is
in the TAKE STOCK Plan.
5. A big reduction in purchase price, because of a
reduced mutual fund sales charge-made possi-
ble by economical group buying.
6. A large measure of diversification in your invest-
ments.
7. Full-time professional management of your in-
vestment holdings.
8. A choice of two mutual funds having outstanding
records of performance for investors.
HOW DO I SIGN UP FOR THE PLAN?
There's a TAKE STOCK enrollment card with this
booklet. Fill in the number of dollars you want to
put into one or both of the funds (not less than $5
per fund). Send your card to TVA Retirement Sys-
tem, Knoxville. Your deductions will start as soon
as possible after your enrollment card is received.
The first payroll deductions will be made in the pay
period that ends October 8, 1966 (Salary Policy) and
October 15, 1966 (Trades and Labor).
RECORDS AND STATEMENTS
The System will keep an individual account record
for you and send you a quarterly statement. The
Board does not, of course, incur any liability be-
cause of possible decrease in the value of the shares
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NT SYSTEM
104 Old Post Office Bldg.
Knoxville, Tennessee
TAKE STOCK TODAY
INVEST FOR TOMORROW
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October 1, 1966