Investment options of SAP America Inc. 401(k) Plan
Total Available Funds: 28
| Investment Description |
|---|
| VANGUARD FUNDS: |
| WELLINGTON REGISTERED INVESTMENT COMPANY |
| WINDSOR II REGISTERED INVESTMENT COMPANY |
| INTERNATIONAL GROWTH REGISTERED INVESTMENT COMPANY |
| EXPLORER REGISTERED INVESTMENT COMPANY |
| GLOBAL EQUITY REGISTERED INVESTMENT COMPANY |
| SMALL-CAP INDEX REGISTERED INVESTMENT COMPANY |
| EMERGING MARKETS STOCK INDEX REGISTERED INVESTMENT COMPANY |
| PIMCO INCOME FUND REGISTERED INVESTMENT COMPANY |
| ALLSPRING SPECIAL MID CAP VALUE FUND; CLASS R6 REGISTERED INVESTMENT COMPANY |
| METROPOLITAN WEST TOTAL RETURN BOND FUND: CLASS I SHARES REGISTERED INVESTMENT COMPANY |
| FEDERATED INST. HIGH YIELD BOND FUND REGISTERED INVESTMENT COMPANY |
| PGIM GLOBAL TOTAL RETURN; CLASS R6 REGISTERED INVESTMENT COMPANY |
| VANGUARD TRUSTS: |
| TARGET RETIREMENT 2035 COMMON COLLECTIVE TRUST |
| TARGET RETIREMENT 2030 COMMON COLLECTIVE TRUST |
| TARGET RETIREMENT 2040 COMMON COLLECTIVE TRUST |
| TARGET RETIREMENT 2025 COMMON COLLECTIVE TRUST |
| TARGET RETIREMENT 2045 COMMON COLLECTIVE TRUST |
| TARGET RETIREMENT 2050 COMMON COLLECTIVE TRUST |
| TARGET RETIREMENT 2055 COMMON COLLECTIVE TRUST |
| TARGET RETIREMENT SAVINGS TRUST III COMMON COLLECTIVE TRUST |
| VANGUARD INSTITUTIONAL TOTAL INTERNATIONAL STOCK MARKET INDEX TRUST COMMON COLLECTIVE TRUST |
| VANGUARD INSTITUTIONAL TOTAL BOND MARKET INDEX TRUST COMMON COLLECTIVE TRUST |
| VANGUARD INSTITUTIONAL EXTENDED MARKET INDEX TRUST COMMON COLLECTIVE TRUST |
| T.ROWE PRICE BLUE CHIP GROWTH TRUST; CLASS T4 COMMON COLLECTIVE TRUST |
| BR MIDCAP GROWTH EQUITY T COMMON COLLECTIVE TRUST |
| ALLSPRING SP SMALL CAP VALUEE COMMON COLLECTIVE TRUST |
Investment model portfolios
We provide two types of investment model portfolios for SAP America Inc. 401(k) 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 SAP America Inc. 401(k) Plan