Investment options of NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION SAVINGS AND INVESTMENT PLAN
Total Available Funds: 32
| Investment Description |
|---|
| AM FDS EUROPACIFIC GRTH R6 FD |
| AMER FUNDS AMER BAL R6 FD |
| AMERICAN FUNDS NEWWORLD R6 |
| COLUMBIA OVERSEAS VALUE I3 |
| DFA REAL ESTATE SECS I FD |
| EATON VANCE IN FD OF BOS R6 FD |
| FIDELITY ADV TOTAL BOND Z FD |
| FIDELITY INTERNATIONAL IDX FD |
| JANUS HENDERSON VENTURE N FD |
| JP MORGAN EQUITY INCOME R6 FD |
| JP MORGAN GOVT BOND R6 FUND |
| PIMCO REAL RETURN INSTL FUND |
| T. ROWE PRICE BL CHIP GR I FD |
| T. ROWE PRICE NEW HORIZON I FD |
| VANGUARD 500 INDEX ADMIRAL FD |
| VANGUARD MID CAP INDEX ADM FD |
| VANGUARD SEL VALUE INV FUND |
| VANGUARD SM CAP INDEX ADM FUND |
| VANGUARD SM CAP VAL IDX ADM FD |
| PRIN LIFETIME HYBRID 2015 CIT |
| PRIN LIFETIME HYBRID 2020 CIT |
| PRIN LIFETIME HYBRID 2025 CIT |
| PRIN LIFETIME HYBRID 2030 CIT |
| PRIN LIFETIME HYBRID 2035 CIT |
| PRIN LIFETIME HYBRID 2040 CIT |
| PRIN LIFETIME HYBRID 2045 CIT |
| PRIN LIFETIME HYBRID 2050 CIT |
| PRIN LIFETIME HYBRID 2055 CIT |
| PRIN LIFETIME HYBRID 2060 CIT |
| PRIN LIFETIME HYBRID 2065 CIT |
| PRIN LIFETIME HYBRID INC CIT |
| FIXED INCOME GUARANTEED OPTION |
Investment model portfolios
We provide two types of investment model portfolios for NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION SAVINGS AND INVESTMENT PLAN 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.
Retirement Plan (401(k)) Info for NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION SAVINGS AND INVESTMENT PLAN