Your Investment Options

Vesting
Stable Value Fund
Bond Fund
Balanced Fund
Equity Fund
Investment Considerations
Keeping Track of Your Account
Special Investment Consideration

 

Vesting

Vesting refers to the immediate crediting to your Annuity Fund account of all contributions, which are then available to provide a benefit for you at retirement. You are always fully vested in employer contributions made on your behalf, your own extra contributions, and any investment earnings on those accounts. Pension contributions to your accounts are invested according to the latest instructions received on your behalf by the Pension Board. Your employer may take part in determining how pension contributions are invested, or the choice may be entirely yours. You alone decide how your extra contributions are allocated among the investment options offered in the Annuity Fund. The following investment options are available.

[back to top]

 

Stable Value Fund

Investment Objective:
To provide liquidity and relative stability of principal, while earning a level of income consistent with those goals.

Investor Profile:
Stable value funds are generally considered to be short-term or temporary investment vehicles because the returns they have typically produced have only moderately exceeded inflation. The Fund is suitable for investors who are willing to sacrifice income for liquidity and relative stability of principal for some portion of their assets, perhaps in anticipation of annuitizing their accumulation account balances. Principal should remain relatively stable in this Fund, while income will fluctuate with changing interest rates.

Over long periods of time, the return to investors in this Fund will most likely fall short of the return to investors in any of the other Funds. Over short periods of time, however, the return to investors in this Fund could exceed the return to investors in the other Funds.

Fund Investments:
The Fund is invested in a broadly diversified portfolio of short-term investment vehicles such as U.S. Treasury bills, commercial paper, and corporate bonds with short remaining maturities.

[back to top]

 

Bond Fond

Investment Objective:
To provide maximum total return, consistent with investment in long-term high-quality bonds. Principal and income in this Fund will fluctuate with changing market conditions.

Investor Profile:
This Fund is suitable for investors willing to sacrifice stability of principal for liquidity for some portion of their assets.

Over long periods of time the return to investors in this Fund should exceed the return to investors in the Stable Value Fund, but it is likely to fall short of the return to investors in either the Balanced or the Equity Fund. Over shorter periods of time, however, the reverse could be true. At times the total return to investors in this Fund may be negative.

Fund Investments:
The Fund is invested in a broadly diversified portfolio of U.S. government, foreign government, and high-quality corporate bonds. An average maturity of 10 to 15 years is normally maintained in this Fund.

THE RISK/RETURN TRADE-OFF
Generally speaking, the greater the risk you are willing to take, the greater your long-term potential return. Conversely, the safer, lower-risk investments typically offer lower long-term returns. The Fund line-up offers you a range of risk/return alternatives so you can design a portfolio that meets your financial objectives and suits your personal risk tolerance level.

High Risk, High Return

Equity Fund
(formerly the Variable Benefit Fund)

Balanced Fund
(formerly the Balanced Benefit Fund)

Bond Fund

Fixed Benefit Fund

Stable Value FundLow Risk, Low Return

[back to top]

 

Balanced Fund

Investment Objective:
To provide long-term growth of principal and income consistent with a broadly diversified portfolio of domestic and international common stocks and high-quality bonds.

Investor Profile:
This Fund is suitable for investors who are willing to accept a greater degree of principal and income volatility for a portion of their assets than will be typical of the Stable Value Fund, the Fixed Benefit Fund, or the Bond Fund in the pursuit of long-term growth of principal and income. This Fund will typically be less volatile than the Equity Fund. This Fund also is suitable for investors seeking a Fund in which the Pension Board will determine the allocation of assets between stocks and bonds.

Over long periods of time the return to investors in this Fund should exceed the return to investors in the Stable Value Fund, the Fixed Benefit Fund, or the Bond Fund, but it should fall short of the return to investors in the Equity Fund. Over shorter periods of time, however, returns to investors in this Fund could be less than the returns to investors in the other Funds, and at times they may be negative.

Fund Investments:
The Fund is invested in a broadly diversified portfolio of domestic and international common stocks and high-quality bonds. Under normal conditions, between 50% and 70% of the Balanced Fund’s assets will be invested in equity securities (stocks), with the remaining assets invested in bonds.

[back to top]

 

Equity Fund

Investment Objective:
To provide long-term growth of principal and income consistent with a broadly diversified portfolio of domestic and international equity securities (stocks).

Investor Profile:
This Fund is suitable for investors who are willing to accept that accumulation value and income may change more dramatically than in the other Funds for some portion of their assets in the pursuit of long-term growth.

Over long periods of time the return to investors in this Fund, both before and after inflation, should exceed the return to investors in the other Funds. Over shorter periods of time, returns to investors in this Fund could be less than the returns to investors in the other Funds, and at times the returns from this Fund will be negative.

Fund Investments:
The Fund is invested in a broadly diversified portfolio of domestic and international equity securities (stocks).

[back to top]

 

Investment Considerations

Here are some things you need to think about as you make your investment decisions:

[back to top]

 

BACK | NEXT