Key Characteristics as of 12/31/11

Top Ten Holdings1
  Coupon Maturity Date  
U.S. Treasury Notes 0.880 11/30/2016 4.10%
FNMA MBS  3.500 12/1/2041 3.97%
FNMA MBS 4.000 12/1/2041 3.62%
FNMA MBS 4.000 9/1/2040 2.81%
U.S. Treasury Bonds  4.380 5/15/2041 2.72%
FHLMC MBS 4.000 12/1/2040 2.69%
FNMA MBS  5.000 11/1/2039 2.47%
FNMA MBS 5.500 1/1/2038 1.86%
FNMA MBS 4.500 12/1/2041 1.53%
U.S. Treasury Notes  2.130 8/15/2021 1.35%
Total     27.12%
View Full Quarterly Holdings

Characteristics
Number of Positions 285
Average Maturity (Years) 6.78
Average Duration (Years) 4.97
R-Squared3 0.81
Sector Allocations2
Corporate Notes/Bonds 28.6%
Mortgage Backed Securities 21.0%
CMBS 18.2%
CMOs 13.6%
Treasury Notes/Bonds 11.5%
Asset Backed Securities 2.2%
Taxable Municipals 1.0%
Tax Exempt Municipals 0.7%
Government Agencies 0.0%
Short-Term/ Other Assets and Liabilities 3.1%
1 Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities.

2 Sector holdings are subject to change.

3 Risk characteristics are relative to Barclays Capital Aggregate Bond Index, and for the three-year period as of 12/31/11.

Portfolio holdings and sector weightings are subject to change and should not be considered a recommendation to buy or sell individual securities.

You should read the current RS Funds' Prospectus before investing. The RS Funds' Statement of Additional Information (SAI)  provides information about the Funds that may not be contained in the Prospectus.

RS Funds are sold by Prospectus only. You should carefully consider the investment objectives, risks, charges, and expenses of the RS Funds before making an investment decision. The prospectus contains this and other important information. Please read it carefully before investing or sending money. To obtain a printed copy, please call 800-766-3863.

If you are an existing shareholder and would like a copy of the prospectus or need to contact RS Investments, call 800-766-3863. If you are interested in learning more about and how to invest with RS, please contact your financial professional.

The information on this web site is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer.

RS Funds are distributed by: Guardian Investor Services LLC, 7 Hanover Square, New York, NY 10004.

RS is an independent subsidiary of Guardian Investor Services LLC. Guardian Investor Services LLC (GIS), is a registered broker-dealer, registered investment advisor, and a wholly owned subsidiary of The Guardian Life Insurance Company of America.

Not A Deposit / Not FDIC or NCUA Insured / May Lose Value / No Bank or Credit Union Guarantee

GIS is a member: FINRA and SIPC.

© 2012 RS Investment Management Co. LLC
RS Investments is the marketing name for RS Investment Management Co. LLC and its affiliates.