Life Stage Funds

 

The SIS Pension Fund offers five investment choices, each of which is a Life Stage Fund. Each Life Stage Fund is made up of a diversified mix of assets designed by an investment professional. It is suggested that you invest in only one Life Stage Fund, although you are permitted to invest in as many as you want to in whatever percentages you choose that equals 100%. Investing in more than one Life Stage Fund does not increase your diversification.

 

Maximum Growth

 

The Maximum Growth Investment Option seeks to provide high returns over the long term. It may be a good choice for long-term investors seeking aggressive growth who can tolerate higher risk of losses. As the most aggressive option, it invests 15% in the Small/Mid Company Equity Portfolio, 22.5% in the Large U.S. Company Growth Equity Portfolio, 22.5% in the Large U.S. Company Value Equity Portfolio, 10% in non-U.S. Company Equity Portfolio, 5% in the Real Estate Equity Portfolio, and 25% in the Fixed Income Full Duration Portfolio. This type of investment is usually best suited for individuals below the age of 30 or investors who can tolerate the ups and downs of the market.

 

Wealth Building

 

The Wealth Building Investment Option seeks to provide long-term growth with income. It is less aggressive than the Maximum Growth Option. This investment option may be appropriate for investors who can tolerate high potential risk in exchange for potential long-term growth. It invests 10% in the Small/Mid Company Equity Portfolio, 17.5% in the Large U.S. Company Growth Equity Portfolio, 17.5 % in the Large U.S. Company Value Equity Portfolio, 5% in non-U.S. Company Equity Portfolio, 5% in the Real Estate Equity Portfolio, and 45% in the Fixed Income Full Duration Portfolio. Investors between the ages of 30 and 40 typically select similar investment options.

 

Growth and Income

 

The Growth and Income Investment Option seeks to provide high total return and current income. It may be a good choice for investors who are willing to take on a moderate level of risk in exchange for potential long-term growth. Many people between the ages of 40 and 50 choose this type of investment mix. This option invests 5% in the Small/Mid Company Equity Portfolio, 12.5% in the Large U.S. Company Growth Equity Portfolio, 12.5% in the Large U.S. Company Value Equity Portfolio, 5% in non-U.S. Company Equity Portfolio, 5% in the Real Estate Equity Portfolio, and 60% in the Fixed Income Full Duration Portfolio.

 

Current Income

 

The Current Income Investment Option seeks to provide current income and preservation of principal with the opportunity for growth. It is designed to provide less risk than the Growth and Income Option. Investors over the age of 50 may prefer this type of portfolio, as it is geared toward stability. This option invests 7.5% in the Large U.S. Company Growth Equity Portfolio, 7.5% in the Large U.S. Company Value Equity Portfolio, 5% in the Real Estate Equity Portfolio, 40% in the U.S. Fixed Income Intermediate Duration Portfolio and 40% in the Stable Value Portfolio.

 

Capital Preservation

 

The Capital Preservation Investment Option seeks to preserve principal and to provide stable returns and higher yields than money market funds. Designed to provide greater stability at the expense of higher return potential, this option is the most conservative of the choices. It may be appropriate if you are investing for the short term and will be receiving distributions within five years. It invests 5% in the Real Estate Equity Portfolio, 25% in the U.S. Fixed Income Intermediate Duration Portfolio, and 70% in the Stable Value Portfolio.

 

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External Links

 

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