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 September 22, 2017:
- The Fidelity Money Market Trust Retirement Government Money Market II Portfolio was replaced by the Fidelity Investments Money Market Government Portfolio - Institutional Class, and
- The Fidelity 500 Index Fund - Institutional Class has been replaced by the Fidelity 500 Index Fund - Institutional Premium Class.
Fee Change Notice
As of November 1, 2017, the 5% transfer fee relating to certain participants in the Stable Value Option (SVO) in the Defined Contribution plans (RSVP and Lay DC)who are under age 59 1/2 has been eliminated.
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:
Dodge and Cox Stock Fund
DFA U.S. Sustainability Core 1 Portfolio
Fidelity® 500 Index Fund - Institutional Premium Class
Neuberger Berman Genesis Fund Class R6
Fidelity® Contrafund® - Class K
American Funds EuroPacific Growth Fund® Class R-6
Fidelity® Small Cap Discovery Fund
Fidelity® Extended Market Index Fund - Premium Class
Fidelity® International Index Fund - Premium Class
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:
Dodge and Cox Income Fund
American Century Investments Inflation Adjusted Bond Fund - R5 Class
Fidelity® U.S. Bond Index Fund - Premium Class
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:
Fidelity Money Market Trust Retirement Government Portfolio - Institutional Class
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:
Fidelity Freedom Funds
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.