Whether you're choosing your investments for the first time or want to change your asset allocation, it's important to understand the different types of investments in your plan. The options in your plan include: stocks, bonds, short-term investments, and lifecycle funds.
Investment Option Updates
New Investment Options
Effective with the close of the stock market at 4PM ET, February 28, 2017, the DFA U.S. Sustainability Core 1 Portfolio will be added to the investment lineups. The Church Pension Fund has selected the DFA U.S. Sustainability Core 1 Portfolio as a new investment option available in the Plans, which may be suitable for someone seeking a portfolio composition based on sustainability impact, including environmental and social considerations.
Objective: The investment seeks long-term capital appreciation.
Strategy: The Portfolio purchases a broad and diverse group of securities of U.S. companies with a greater emphasis on small capitalization and value companies as compared to their representation in the U.S. Universe, while adjusting the composition of the Portfolio based on sustainability impact considerations. It also may use derivatives, such as futures contracts and options on futures contracts for U.S. equity securities and indices, to adjust market exposure based on actual or expected cash inflows to or outflows from the Portfolio.
When the market closes at 4 p.m. Eastern time on February 28, 2017, the following investment options offered through the Plans will no longer be available. As a result, all existing balances and future contributions will be transferred to the new and/or existing investment options. See the following chart for details.
|Old Investment Option||New Investment Option|
|Domini Impact Equity Fund R Shares - Expense Ratio: 0.82%||DFA U.S. Sustainability Core 1 Portfolio - Expense Ratio: 0.32%|
|Fidelity® Dividend Growth Fund - Class K - Expense Ratio: 0.50%||Fidelity® 500 Index Fund - Institutional Class - Expense Ratio: 0.04%|
The transfer of balances will appear as an exchange on your account history and quarterly statement. You will receive a prospectus as a result of this transaction.
The reallocation of assets depends on the timely liquidation of those assets. A delay in liquidation may result in a change to the above noted dates.
If you are currently using the Automatic Rebalance feature offered through your Plan, you need to update your rebalance elections given the changes to the Plan lineup on February 28, 2017 if you want to continue using Automatic Rebalance. Fidelity is not able to adjust your rebalance elections to reflect the upcoming plan-directed fund reallocation changes. As a result, your Automatic Rebalance elections will not occur as scheduled if you have a current investment option that will no longer be offered.
If you have questions or need assistance with the Automatic Rebalance feature, call toll-free at (800)343-0860, Monday through Friday (excluding New York Stock Exchange holidays) between 8:30AM - 8:00PM ET to speak with a Service Center Representative or log on to Fidelity NetBenefits® at www.fidelity.com/atwork.
If you are satisfied with how your current investment elections will be modified, as shown previously, no action is required on your part. The Church Pension Fund has worked carefully to move the existing balances and future contributions to investment options that it believes have the most similar investment objectives among the new or existing investment options.
However, if you do not want these changes to take place, you must contact Fidelity Investments before 4 p.m. Eastern time on February 28, 2017, and complete a change of investments. Log on to Fidelity Net Benefits® at www.fidelity.com/atwork or call (800) 343-0860, Monday through Friday between 8:30AM - 8:00PM ET.
Stock funds invest in stocks of various companies. Stocks have great potential for growth, but also come with high risk.
The more years you have until retirement, the longer you have to ride out short-term changes in the market, and the bigger the role stock funds could play in your portfolio. Investment choices include:
The investment seeks long-term growth of principal and income; current income is a secondary consideration. The fund invests primarily in a broadly diversified portfolio of common stocks. It may invest at least 80% of total assets in common stocks, including those securities of foreign issuers included in the S&P 500. The fund may also purchase other types of securities and debt securities which are convertible into common stock. It may also invest up to 20% of total assets in U.S. dollar-denominated securities of foreign issuers traded in the United States that are not included in the S&P 500.
The Portfolio purchases a broad and diverse group of securities of U.S. companies with a greater emphasis on small capitalization and value companies as compared to their representation in the U.S. Universe, while adjusting the composition of the Portfolio based on sustainability impact considerations. It also may use derivatives, such as futures contracts and options on futures contracts for U.S. equity securities and indices, to adjust market exposure based on actual or expected cash inflows to or outflows from the Portfolio.
Normally investing at least 80% of assets in common stocks included in the S&P 500 Index, which broadly represents the performance of common stocks publicly traded in the United States.
The investment seeks growth of capital. The fund invests primarily in common stocks of companies with market capitalizations of $2 billion or less at the time of purchase. The portfolio managers generally look for undervalued companies whose current market shares and balance sheets are strong.
Morningstar re-categorized the Neuberger Berman Fund (NCGF) as midcap growth rather than small cap blend. This shift does not reflect any change in the way the fund is managed by Neuberger Berman, and CPF does not feel that the category change by Morningstar will have any impact on the NBGF strategy. CPF continues to consider NBGF to be a small cap blend despite the Morningstar decision, and Morningstar's rankings for this fund continue to be excellent.
Investing in securities of companies whose value FMR believes is not fully recognized by the public. Investing in either ’growth’ stocks or ’value’ stocks or both. Normally investing primarily in common stocks.
The investment seeks to provide you with long-term growth of capital. Normally investing at least 80% of net assets in securities of issuers in Europe and the Pacific Basin, primarily in common stocks of issuers in Europe and the Pacific Basin that the investment adviser believes have the potential for growth. The fund may invest a portion of its assets in common stocks and other securities of companies in countries with developing economies and/or markets and may also hold cash, money market instruments and fixed-income securities.
The investment seeks long-term growth of capital. The fund normally invests at least 80% of its assets in the securities of small companies with small market capitalizations. These are companies with markets capitalizations similar to the companies in the Russell 2000 Index or the S&P Small Cap 600. The fund is normally invested in either “growth” stocks, “value” stocks, or both. The primary investments are common stock.
This fund seeks to provide investment results that correspond to the total return stocks of mid- to small-capitalization United States companies. The fund normally invests at least 80% of its assets common stocks included in the Dow Jones U.S. Completion Total Stock Market Index, which represents the performance of stocks of mid- to small-capitalization U.S. companies.
This fund seeks to provide investment results that correspond to the total return of foreign stock markets. The fund normally invests at least 80% of its assets in common stocks included in the Morgan Stanley Capital International Europe, Australasia, Far East Index, which represents the performance of foreign stock markets.
Bond funds invest in bonds. A bond is a financial agreement by which a company or government receives what amounts to a loan, in return for which you receive interest on the amount you've purchased. While bond funds carry risk, they are generally less risky than stocks and potential for returns is more moderate. Bond funds can be a good way to help offset some of the investment risk stock funds can create. Investment choice includes:
The investment seeks a high and stable rate of current income, consistent with long-term preservation of capital. The fund normally invests in a diversified portfolio of high-quality bonds and other fixed-income securities, including U.S. government obligations, mortgage and asset-backed securities, corporate bonds, collateralized mortgage obligations and others rated A or better by either Standard & Poor’s Ratings Group or Moody’s. It may invest up to 20% of the total assets in below investment-grade fixed income securities, commonly referred to as high-yield or junk bonds.
This fund seeks total return and inflation protection consistent with investment in inflation-indexed securities. The fund invests at least 80% of assets in inflation-adjusted securities including inflation-indexed securities issued by the U.S. Treasury, by other U.S. government agencies and instrumentalities, and by other, non-U.S. government entities such as corporations. It may invest up to 20% of assets in traditional U.S. Treasury, U.S. government agency or other non-U.S. government securities that are not inflation-indexed.
This fund seeks to provide investment results that correspond to the aggregate price and interest performance of the debt securities in the Barclays U.S. Aggregate Bond Index. The fund normally invests at least 80% of its assets in bonds included in the Barclays U.S. Aggregate Bond Index. The fund managers use statistical sampling techniques based on duration, maturity, interest rate sensitivity, security structure, and credit quality to attempt to replicate the returns of the fund using a smaller number of securities. The managers engage in transactions that have a leveraging effect on the fund, including investments in derivatives and forward-settling securities, to adjust the fund's risk exposure. Investments are also made in Fidelity's central funds, specialized investment vehicles used by Fidelity funds to invest in particular security types or investment disciplines.
Stable Value Option
The Stable Value Option (SVO) is the only investment option in your plan that provides steady growth.1 But it isn't just for people who wish to invest conservatively. Having a portion of your assets in the Stable Value Option can help balance the risk in your portfolio if you have a high proportion of assets in stock funds.
With a current 2.00% interest rate,2 the SVO provides stable, tax-deferred growth at an interest rate based on financial conditions. This investment option is designed to:
- Preserve your principal and interest
- Provide steady performance1
- Offer flexibility of withdrawals and transfers3
The SVO is funded by an unallocated group annuity contract4 issued by Church Life Insurance Corporation (Church Life) to The Church Pension Fund.
For more details download The Stable Value Option for Retirement Savings Plans (RSVP) and Lay Defined Contribution Plans (Lay DC Plan).
1 Guarantees and obligations under the group annuity contract are solely those of Church Life Insurance Corporation (Church Life) and are subject to the claims-paying ability of Church Life. The Church Pension Fund does not guarantee the financial performance of Church Life or any principal or interest invested in the Stable Value Option. To learn more about the financial condition of Church Life, review the summary of Church Life’s financial condition described in the Church Pension Group’s most recent Annual Report or call (866) 802-6333 for additional information relating to the financial condition of Church Life, for a copy of the Church Pension Group’s Annual Report or for a copy of Church Life’s statutory financial statements.
2 The interest rate may vary. The minimum interest rate is 1.5% in all states where acceptable.
3 Please note that all withdrawals and transfers are subject to the terms of the official plan document.
4 Group annuity contract (Form Number 1009A1004). The home office of Church Life is located at 19 East 34th Street, New York, NY 10016.
A short-term investment looks to grow your money and keep it safe at the same time. The closer you get to actually needing your retirement savings, the more important it is to make sound financial decisions. At that time, it may be preferable to have short-term investments in your portfolio. Investment choices include:
Investing in U.S. dollar-denominated money market securities of domestic and foreign issuers and repurchase agreements. Investing more than 25% of total assets in the financial services industries. Potentially entering into reverse repurchase agreements.
A lifecycle fund is a mutual fund with an investment approach based on the target date for a significant life event for which you are saving, such as retirement, a child's college education, or a wedding. The Fidelity Freedom Funds do the investing for you. They start out more growth-oriented, but automatically invest more conservatively the closer you get to targeted year. Choose the Freedom Fund that's closest to the year for which you are saving. Investment choices include:
This fund group frees you from managing your investments on your own. You choose one professionally managed fund for a lifetime retirement significant life event strategy. These funds are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing in high-yield, small cap, and foreign securities.
Need to update your personal information? Call CPG Client Services for assistance at (866) 802-6333 Monday - Friday 8:30AM - 8:00PM ET.
Note: Investing in the financial markets carries with it the risk of assets decreasing in value. One way to minimize the risk of dramatic changes in value is to diversify your investments across a broad spectrum of investment strategies. Keep in mind that even a well-diversified portfolio cannot reduce the risk of loss completely. Past investment performance is no guarantee of future results.