Performance

Net Asset Value (NAV) and Performance Returns Daily NAV Change % Change   YTD Returns $10.35 0.01 0.09% 5.98% As of date: November 06, 2009 AARP Income Fund performance Yield Information 30 day yield 3.72% As of date: October 30, 2009

Morningstar Rating as of 9/30/09** The AARP Income Fund was ranked 319th for the three-year period ending September 30, 2009 out of 954 funds in Morningstar's Intermediate Term Bond category.   Learn more > Past performance cannot guarantee future results. The Overall Morningstar Rating™ is derived from a weighted average of the funds' performance figures for three year Morningstar Rating™ metrics. Ratings are based on risk adjusted performance. During the ranking period, AARP Financial Inc. waived fees and reimbursed expenses for the Fund.

This reflects the 50 basis point expense cap that is currently in effect through November 1st, of 2009. One basis point represents one hundredth of one percent (0.01%).

Total Returns				Average Annual Total Returns
	Pre-tax	Post-tax			Pre-tax	Post-tax
Last 3 months	2.46%	2.11%		1-year	10.03%	8.39%
Year to date	6.18%	4.94%		3-year	5.95%	4.29%
				5-year	Not yet available
				10-year	Not yet available
As of month end: October 31, 2009				Since inception (09/29/06)	5.91%	4.24%
			As of quarter end: September 30, 2009

Includes reinvested dividends and capital gains.

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Two important things to remember when judging any mutual fund: 1) individual fund performance should always be compared to market performance as a whole; and 2) past performance is not an indicator of future success.

What does this mean? Simply that while a fund boasting a 10% gain may sound impressive, if other, comparable mutual funds grew 15%, the fund isn't as good as its peer group. Likewise, if the fund posted a 10% gain at a time when others shrank 10%, it could be viewed as outperforming similar funds. So context matters. And secondly, just because a fund has done well in the past doesn't mean that it will continue to perform well in the future.

A benefit of AARP Funds is that they are index-based, instead of actively managed mutual funds. Index-based funds, historically, have outperformed managed mutual funds and typically they cost less in management fees.*

Pre-tax performance numbers are for tax-deferred (IRA) accounts, while post-tax performance numbers are for taxable (non-IRA) accounts.

Fees

Total annual fund operating fees and expenses are 4.88%.
Net annual fund operating fees and expenses (after waivers and/or reimbursements) are 0.50%.
Learn more about the fund's fees and expenses.

Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted. Please read the prospectus carefully to learn about the risks of investing in the AARP Funds. Call 1-866-218-6142 for current performance.

When investing in bonds, you are subject, but not limited to, the same interest rate, inflation, and credit risk associated with the underlying bonds owned by the Fund. The Income Fund's prospectus allows for investment in non-investment grade securities.

All investments involve some risk, including the AARP Funds. Each of the three funds, Conservative, Moderate, and Aggressive, invest in a mix of domestic and international stocks and U.S. bonds.

*Standard & Poor's Indices Versus Active Funds Scorecard (SPIVA), Mid-Year 2008

Total annual fund operating fees and expenses for the AARP Funds are 1.59% for the Aggressive Fund, 1.18% for the Moderate Fund, 1.84% for the Conservative Fund, 4.88% for the Income Fund and 0.83% for the Money Market Fund. Net annual fund operating fees and expenses (after waivers and/or reimbursements) are 0.30% for the AARP Money Market Fund and 0.50% for the other AARP Funds. The Money Market Fund's yield is based on a 30 basis point contractual expense cap that is currently in effect through November 1, 2009.

AARP Financial has agreed contractually to waive fees and/or reimburse expenses to keep the Net Annual Fund Operating Expenses of the Aggressive, Moderate, Conservative, and Income Funds, including Acquired Fund Fees and Expenses at 0.50% of average daily net assets through November 1, 2009. AARP Financial has agreed contractually to waive fees and/or reimburse expenses to keep the Net Annual Fund Operating Expenses of the Money Market Fund (including the expenses of the Underlying Money Market Fund) at 0.30% of average daily net assets through November 1, 2009.

**For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The top 10% of the funds in an investment category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.

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Distributions

Fund Management

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