HH2012
Investment Model Portfolios

Total Available Funds: 18

Asset Class

Ticker

Description

FIXED INCOME
Emerging Markets Bond	ESD	Western Asset Emerging Markets Debt
Muni National Interm	KTF	DWS Municipal Income
Multisector Bond	PONDX	PIMCO Income D
LONG GOVERNMENT	TLT	iShares Barclays 20+ Year Treas Bond
Inflation-Protected Bond	VAIPX	Vanguard Inflation-Protected Secs Adm

Others
Moderate Allocation	PDT	JHancock Premium Dividend Fund
Long/Short Equity	MFLDX	Marketfield
Conservative Allocation	GOF	Guggenheim Strategic Opp Fund
Natural Resources	CEM	ClearBridge Energy MLP
World Allocation	PAUDX	PIMCO All Asset All Authority D
Conservative Allocation	HSTRX	Hussman Strategic Total Return
ROOT	CASH	CASH
ROOT	CASH	CASH
ROOT	CASH	CASH
ROOT	AGNC	American Capital Agency Corp.
ROOT	TCAP	Triangle Capital Corporation BDC

US EQUITY
LARGE VALUE	VYM	Vanguard High Dividend Yield Indx ETF

REAL ESTATE
Global Real Estate	IGR	CBRE Clarion Global Real Estate Income

We provide two types of investment model portfolios for HH2012 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.