Fannie Mae-No Politics (FNMA)

[FOFreddie]

Growth Fund of America is a 529 investment option under the Commonwealth of Virginia 529 plans. It not only was one of the largest investors in GSE common it had a sizeable position in GSE JPS. Remember that the GSES sold billions of JPS between April and September of 2008 including FNMAT. Like many institutional investors and retail investors there was an expectation that the JPS capital raise would provide enough capital for the developing MBS market dislocation and that is why they acting as fiduciaries purchased the JPS on the new issue. All together between common and JPS the GSEs were a sizable position in a diversified portfolio.