SAVINGS AND PROFIT SHARING PLAN AND TRUST AGREEMENT OF ALFA MUTUAL INSURANCE COMPANY Investment Model Portfolios

Investment options of SAVINGS AND PROFIT SHARING PLAN AND TRUST AGREEMENT OF ALFA MUTUAL INSURANCE COMPANY

Total Available Funds: 18

Asset Class

Ticker

Description

FIXED INCOME
Intermediate-Term Bond	TRLVX	SEI Institutional Managed Trust: Core Fixed Income Fund; Class A Shares
Intermediate Government	SEGMX	SEI Daily Income Trust: GNMA Fund; Class A Shares
Short-Term Bond	VFSTX	Vanguard Fixed Income Securities Funds: Vanguard Short-Term Investment-Grade Fund; Investor Shares
Inflation-Protected Bond	DIPIX	Delaware Group Government Fund: Delaware Inflation Protected Bond Fund; Institutional Class Shares

US EQUITY
LARGE GROWTH	SELCX	SEI Institutional Managed Trust: Large Cap Growth Fund; Class A Shares
Small Growth	SSCGX	SEI Institutional Managed Trust: Small Cap Growth Fund; Class A Shares
MID-CAP BLEND	VIMSX	Vanguard Index Funds: Vanguard Mid-Cap Index Fund; Investor Shares
MID-CAP BLEND	WPFRX	Westport Funds: Westport Fund; Class R Shares
SMALL VALUE	SESVX	SEI Institutional Managed Trust: Small Cap Value Fund; Class A Shares
LARGE BLEND	TRQIX	SEI Institutional Managed Trust: S&P 500 Index Fund; Class E Shares
LARGE BLEND	ITHTX	Hartford Mutual Funds
LARGE VALUE	TRMVX	SEI Institutional Managed Trust: Large Cap Value Fund; Class A Shares

Others
World Allocation	MRLOX	BlackRock Global Allocation Fund
EQUITY PRECIOUS METALS	DWGOX	DundeeWealth Funds: Dynamic Gold & Precious Metals Fund; Class I Shares
Moderate Allocation	VGSTX	Vanguard STAR Funds: Vanguard STAR Fund; Investor Shares

INTERNATIONAL EQUITY
Foreign Large Blend	SEITX	SEI Institutional International Trust: International Equity Fund; Class A Shares

REAL ESTATE
REAL ESTATE	VGSIX	Vanguard Specialized Funds: Vanguard REIT Index Fund; Investor Shares

Emerging Market
DIVERSIFIED EMERGING MKTS	DEMRX	Delaware Group Global & International Funds: Emerging Markets Fund;R

Investment model portfolios

We provide two types of investment model portfolios for SAVINGS AND PROFIT SHARING PLAN AND TRUST AGREEMENT OF ALFA MUTUAL INSURANCE COMPANY participants. You can customize and follow a model portfolio in your plan account.

Types of portfolio strategies

Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
  - Less error-prone
  - Infrequent rebalancing or transactions
  - Tax efficient for taxable brokerage investments
- Cons:
  - Interim loss or drawdown can be substantial
  - Possible low returns for an extended period, such as 10 years or longer
Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
  - Reduce large interim loss or drawdown
  - Less sensitive to investment entry point
  - Likely to improve returns
- Cons
  - Demand more frequent rebalancing or transactions
  - Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
  - Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets

These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.

Let us know (Email us) if you need help to create a custom model portfolio for your plan.

Customize a model portfolio now

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