Boehringer Ingelheim 401K
Investment Model Portfolios

This plan is based on a user’s input (note: many funds in this plan are separately managed accounts. They are represented by their proxy funds: benchmarks in their categories or similar funds. For example, very conservative asset allocation fund is represented by Vanguard Wellesley Income Fund:

Fund Options    Description    
Stable Value Fund       Managed by Dwight Asset Management, this fund’s objectives in order of priority are: safety of principal, yield which remains relatively stable on an annual basis, issuer and reinvestment diversification, highest yield consistent with risk tolerance, and real return over a full market cycle. These objectives will be accomplished by diversifying the portfolio in GIC’s, GIC Alternatives, Collateralized GICs, Collective Investment Trusts, and a small percentage of cash.
Bond Fund       Managed by the Pacific Investment Management Company, this fund is a broad market bond fund. The investment objective and policy of the fund is to seek maximum total return, consistent with preservation of capital and prudent investment management. It is a commingled fund with assets from a large number of investors in addition to the Boehringer Ingelheim Corporation and Its Affiliates Retirement Savings Plan. Investments are made in fixed income securities and can include U.S. government and corporate debt securities, mortgage and other asset-backed securities, U.S. dollar and foreign currency-denominated securities of foreign issuers, and money market instruments.     
S&P 500 Index Fund      Managed by State Street Global Investors, this fund’s performance objective is to replicate the returns and characteristics of the S&P 500 Index. This is accomplished by using a replication process to purchase every security listed in the Standard & Poor’s 500 Index and weight them according to their market capitalization. Market capitalization is calculated by multiplying a security’s market price per share by the number of shares outstanding.       
Balanced Fund   The Oakmark Equity & Income Fund seeks high current income and preservation and growth of capital. The Fund is primarily made up of U.S. equity and fixed-income securities and typically holds 30 to 40 equity securities and 10 to 15 fixed income holdings. 
International Equity Fund       This fund is managed by two active international managers with a 50% allocation to each fund. The GE Institutional International Equity seeks long term growth of capital by investing its net assets in equity securities under normal market conditions. The Fund invests primarily in companies in developed and developing countries outside the United States. The Harbor International invests in several developed and emerging countries. Country and industry selections are made on the basis of overall economic and industry considerations. Stock selection is made utilizing value oriented methodology selecting companies with a steady earnings engine and a potential upside not reflected in the stock price. The manager takes a long term view, and expects to hold investments for three to five years.  
Growth Fund     The objective of the AMCAP fund is to seek long-term growth of capital by investing in growing, profitable companies. The fund seeks to invest in undervalued securities – primarily common stocks of issuers located in the U.S. – that represent good long-term investment opportunities. The fund may also hold cash or money market instruments to help reduce the fund’s risk exposure in the event of a market downturn and provide liquidity to make additional investments or meet redemptions. The fund is managed by the Capital Research and Management Company.    
Aggressive Growth Fund  Managed independently by three asset managers, this fund’s objective is to keep capital appreciation through investment in securities of small and medium sized companies with undervalued assets or favorable growth prospects. This is achieved by investing assets in diversified portfolios of primarily common stocks, but may also include other equity-like securities such as convertible bonds and debentures, preferred stocks, warrants, and convertible preferred stocks. Securities are selected solely for their capital appreciation potential, and investment income is not a consideration.   
Mid-Cap Fund    Managed independently by three asset managers, this fund’s objective is to seek capital appreciation through investment in securities of medium sized companies with undervalued assets or favorable growth prospects. This is achieved by investing assets in diversified portfolios of primarily common stocks, but may also include other equity-like securities such as convertible bonds and debentures, preferred stocks, warrants, and convertible preferred stocks. Securities are selected solely for their capital appreciation potential, and investment income is not a consideration.     
Large Cap Value Fund    WEDGE Capital Management’s QVM process is designed to utilize the most productive measures of value and price momentum on a sector-by-sector basis. It is also designed to improve upon the usual value approach tendency to buy too early and sell too early by incorporating appropriate momentum and contrarian factors. The model derives from Wedge’s extensive experience as value mangers, a wide range of academic and industry findings, and intensive back-testing. They apply a unique combination of value, momentum and contrarian factors to each sector in an effort to achieve their clients investment objectives.    
Very Conservative Asset Allocation Fund This fund is designed for older investors who want to minimize risk and avoid losses. Because this fund is invested entirely in conservative investments, it is less likely to experience significant losses. The tradeoff for this stability is that the fund will not likely provide significant appreciation over time.

Conservative Asset Allocation Fund      This fund is designed for investors nearing retirement or uneasy about investment risk, who want to minimize fluctuations in the value of their RSP account, yet still achieve some earnings growth. This fund emphasizes conservative investments that are less likely to experience dramatic swings in value.

Stable Value Fund 45%

Bond Fund 25%

Balanced Fund 10%

Growth Fund 5%

Aggressive Growth Fund 5%

S&P 500 Index Fund 5%

International Equity Fund 5%

     
Moderate Asset Allocation Fund  This fund is designed for mid-career investors who want to take advantage of the potential for stock appreciation, but want to temper the fluctuations by including less volatile investments in their portfolio. This fund is expected to provide strong returns over time, but since it includes significant stock investments, at times this fund will reflect the volatility of the financial markets.

Stable Value Fund 20%

Bond Fund 20%

Balanced Fund 20%

International Equity Fund 5%

Large Cap Fund 5%

Mid Cap Fund 5%

Growth Fund 5%

Aggressive Growth Fund 5%

S&P 500 Index Fund 15%

   
Aggressive Asset Allocation Fund        This fund is designed for mid-career investors with a long investment time horizon (at least 10 years) who are prepared to weather the dramatic fluctuations that come with investing mostly in stocks. Over long periods of time, this fund is expected to provide higher returns than the other asset allocation funds, but along the way the riskier investments will likely make for a bumpy ride.

Stable Value Fund 5%

Bond Fund 10%

Balanced Fund 10%

International Equity Fund 10%

Mid Cap Fund 10%

Large Cap Fund 10%

Growth Fund 10%

Aggressive Growth Fund 10%

S&P 500 Index Fund 25%