Model Portfolios
Diversified Equity
The objective for the Diversified-Equity Portfolio is to achieve long-term growth of the investments. Volatility is not a concern for this portfolio. The swings associated with equity investing can be extreme at times. The portfolio will be allocated to assets seeking to generate long-term capital growth. Income will contribute minimally to the total return of the portfolio. It is anticipated that this model will be utilized by participants who are ten or more years from receiving distributions from the account and are willing to accept the volatility associated with equity investing.
Aggressive-Balanced
The objective for the Aggressive-Balanced Portfolio is to achieve long term growth of the investments while maintaining a posture in the portfolio to lessen the severity of the equity market's volatility. While volatility remains a concern for this Portfolio, it is a secondary concern. A majority of the assets will be allocated to investments seeking to produce long term capital growth while a minority of the assets will be allocated to investments that seek to produce a more regular, predictable stream of income. It is anticipated that this model will be utilized by participants who are ten or more years from receiving distributions from the account and that seek growth but are willing to sacrifice a measure of long-term return to lessen the swings in portfolio value when compared to the equity market.
Moderate-Balanced
The objective for the Moderate-Balanced Portfolio is to balance the desire for portfolio growth with the desire to reduce the swings in portfolio values attributable to equity market volatility. There is an equal balance between the desire to generate asset growth and the desire to mitigate equity market volatility. The resulting portfolio will be a blend of assets following an objective of long-term growth and assets that lend themselves to more stable but lower returns. While this portfolio should achieve a portion of its return from income, a majority will come from price appreciation. It is anticipated that this model will be utilized by participants who are five or more years from taking distributions from the account and that want to maintain a moderated approach.
Conservative-Balanced
The objective for the Conservative-Balanced Portfolio is to balance the desire for portfolio growth with the desire to minimize the swings in portfolio values attributable to equity market volatility. The desire to preserve capital supersedes the desire for long-term growth. Therefore, asset allocation will favor vehicles that historically deliver more stable returns. Allocation to more volatile assets is permitted for the purpose of maintaining a measure of portfolio growth and to reduce the impact of inflationary pressures over time. It is anticipated that participants who will be taking distributions from the account within three years will utilize this model.