Model Portfolios
Aggressive-Growth 100 Portfolio
The objective for the Aggressive-Growth 100 Portfolio (100% equity exposure) 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. This portfolio will be allocated to assets seeking to generate long-term capital growth. Income will contribute minimally to the total return of this portfolio. It is anticipated that this model will be utilized by participants who are more than ten years from receiving distributions from the account and are willing to accept the volatility associated with equity investing.
Aggressive-Growth 90 Portfolio
The objective for the Aggressive-Growth 90 Portfolio (90% equity exposure) 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. This portfolio will be allocated to assets seeking to generate long-term capital growth. Income will contribute minimally to the total return of this portfolio. It is anticipated that this model will be utilized by participants who are more than ten years from receiving distributions from the account and are willing to accept the volatility associated with equity investing.
Growth 80 Portfolio
The objective for the Growth 80 Portfolio (80% equity exposure) 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 seven 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.
Growth 70 Portfolio
The objective for the Growth 70 Portfolio (70% equity exposure) 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 seven 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.
Balanced Growth & Income 60 Portfolio
The objective for the Balanced Growth and Income 60 Portfolio (60% equity exposure) is to balance the desire for portfolio growth with the desire to reduce the swings in portfolio value 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.
Balanced Growth & Income 50 Portfolio
The objective for the Balanced Growth and Income 50 Portfolio (50% equity exposure) is to balance the desire for portfolio growth with the desire to reduce the swings in portfolio value 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 40 Portfolio
The objective for the Conservative 40 Portfolio (40% equity exposure) is to balance the desire for portfolio growth with the desire to minimize the swings in portfolio value 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.
Conservative 30 Portfolio
The objective for the Conservative 30 Portfolio (30% equity exposure) is to balance the desire for portfolio growth with the desire to minimize the swings in portfolio value 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.