September 21-23, 2005

ITEM 128-116-R0905  Approval for Additional Investment Options, Montana Family Educational Savings Bank

THAT: The Board of Regents approves the following investment option changes for the Pacific Funds 529 College Savings Plan for Montana:

(1) The addition of the PF Oppenheimer Main Street Core Fund as an investment fund for the Portfolio Optimization Funds, but not as a stand alone investment option;

(2) The addition of the PF Oppenheimer Emerging Markets Fund as an investment fund for the Portfolio Optimization Funds, but not as a stand alone investment option; and

(3) The change in the PF AIM Aggressive Growth Fund investment option to PF NB Fasciano Small Equity Fund, to reflect the change in name, manager, and certain investment policies.

EXPLANATION: The Pacific Funds are the investment funds underlying the investment options offered in Pacific Funds' 529 College Savings Plan for Montana. The Pacific Funds Board of Trustees approved the addition of two new funds effective September 30, 2005: the PF Oppenheimer Main Street Core and the PF Oppenheimer Emerging Markets, which will only be available for investment by the Pacific Funds' Portfolio Optimization Funds. In addition, the Pacific Funds Board also approved changes, effective October 1, 2005, to PF AIM Aggressive Growth Fund. This fund will have a new manager and a new name. Neuberger Berman Management Inc. (Neuberger Berman) will become the manager and the fund will change its name to the PF NB Fasciano Small Equity Fund. Certain investment policies and strategies of the Aggressive Growth Fund will change at that time.