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Investments
Introduction
We are pleased to provide you with investment choices to meet your unique needs and personal time horizon. You can choose a custom pre-mixed portfolio or create your own portfolio (do-it-yourself). The funds offered use proven investment managers at competitive costs.
Choosing Your Investments
You can invest your account using either one of two options:
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Option A: Choose a pre-mix lets you choose any one of four pre-mixed portfolios that are professionally managed and use low-cost stock and bond index funds through Fidelity.
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With Option B: Do-it-yourself, you can build your own portfolio using any combination of available funds.
You should consult with a professional financial advisor and read the fund prospectuses before making investment decisions. Scroll down for links to this information. VEBA Trust’s Board of Trustees and its agents do not give investment advice.
Choosing Your Investment Allocation
You should read our Choosing Your Investment Allocation brochure. It has been designed to assist you with making your investment decision. This brochure contains descriptions of the available funds under Option A and Option B, risk levels, time horizons, and more to help you make your investment decision.
Investment Fund Overview
The Investment Fund Overview (updated quarterly) lists historical performance and fund operating expenses. Direct links to the fund fact sheets and prospectuses are available below.
Fact Sheets
The fact sheet for each fund or pre-mix contains more detailed performance and other information. Generally, fund fact sheets are updated quarterly. Click a fund link below to open its fact sheet.
OPTION A: CHOOSE A PRE-MIX
Custom Pre-Mixed Portfolios
OPTION B: DO IT YOURSELF
Investment Funds
Metropolitan West Total Return Bond
American Funds EuroPacific Growth R6
* The VEBA Stable Value Fund is a custom portfolio (separate account) managed by Goldman Sachs Asset Management exclusively for VEBA Trust. Unlike a mutual fund, it is not publicly traded and is available only to VEBA Plan participants.
Prospectuses
Prospectuses are generally available at each fund’s respective web page. Click a fund link below open its prospectus.
OPTION A: CHOOSE A PRE-MIX
Custom Pre-Mixed Portfolio Funds
Fidelity International Bond Index
Fidelity Total International Stock Index
The pre-mixed portfolios use combinations of the low-cost Fidelity funds listed above.
OPTION B: DO IT YOURSELF
Asset Class: Fund Name
Stable Value: VEBA Stable Value Fund*
Total Return Bond: Metropolitan West Total Return Bond
Large Cap Equity: Vanguard Institutional Index
Mid Cap Equity: Carillon Scout Mid Cap
Small Cap Equity: Champlain Small Company
International Equity: American Funds EuroPacific Growth R6
* A prospectus is not available. The VEBA Stable Value Fund is a custom portfolio (separate account) managed by Goldman Sachs Asset Management exclusively for VEBA Trust. Unlike a mutual fund, it is not publicly traded and is available only to VEBA Plan participants.
Investment Changes
To submit an investment change, log in and click Investments, or submit an Investment Change form. Forms are available after logging in or upon request from our customer care center.
You can change your investment allocation up to once per calendar month. You should consult with your personal financial advisor before making investment decisions. VEBA Trust’s Board of Trustees and its agents do not give investment advice.
Rebalancing
Over time, some of your investment fund selections may grow more quickly than others; some may even lose value. This may cause your portfolio to become out of alignment with your original allocation percentages. Rebalancing periodically redistributes your entire account balance according to your most recent investment allocation on file. Rebalancing aids in maintaining the level of risk you are willing to take and helps you achieve the goals and objectives of your asset allocation strategy.
Rebalancing at the end of each calendar quarter or calendar year is optional if you choose to build your own portfolio under Option B: Do-it-yourself. To manage your rebalance setting, log in and click Investments.
The pre-mixed asset allocation portfolios under Option A: Choose a pre-mix are managed to stay on their respective target allocations. Each fund maintains its growth-or income-oriented asset mix; you never have to rebalance to keep your strategy on track.
Fund Lineup Selection and Monitoring
VEBA Trust’s Board of Trustees meets regularly with its investment consultant, Hyas Group, LLC. Hyas Group is an independent investment consulting firm located in Portland, Oregon. Hyas Group provides professional advice and assists the Board of Trustees with selection, review, monitoring, and replacement (when warranted) of the various asset classes, individual fund options and managers, and pre-mixed portfolios. Hyas Group also determines and monitors appropriate market benchmarks and peer groups for each fund offering.
VEBA Trust’s Board of Trustees has adopted an Investment Policy Statement (IPS). The purpose of this IPS is to define the Trust’s investment policies, guidelines, and objectives with respect to Trust assets, which are invested as directed by participants. VEBA Trust’s IPS is designed to work in multiple types of market environments and not be reactive to what might be considered normal short-term events. The IPS is reviewed on a regular basis and is revised when necessary or appropriate.
Each selected fund is expected to consistently outperform its style benchmark and other funds within its respective asset class. An investment fund may be placed “on watch” and may ultimately be replaced for reasons such as underperforming its benchmark, experiencing personnel turnover or ownership changes, changes in investment philosophy, etc.