Your investment options

Your retirement plan investment options are managed by Russell Investments. For more than 30 years we have built multi-manager, multi-asset class portfolios. Our research process is built on a belief in the importance of diversification—by asset class and investment styles and strategies within each asset class.

Russell Investments researches and continuously monitors managers for quality and performance. Our flexibility to easily add or remove managers, allows us to stay objective and focused on helping you achieve your income replacement goal for retirement.

Offering two ways to invest in a diversified portfolio

Target Date Funds offer one highly diversified option. Simply pick the Target Date Fund closest to your projected retirement year at age 65.

Asset Class Funds let you build, monitor and manage your own portfolio. The multi-manager funds in your plan provide access to all major asset classes.

Target Date Funds

A Target Date Fund is a professionally managed, highly diversified investment vehicle to help you strive to reach your retirement income goal. A Target Date Fund may be an ideal choice if you want your investment mix selected and managed for you.

  • Each Target Date Fund is a portfolio of stock, real asset and bond funds designed to manage risk through diversification and help provide more consistent returns over time.

  • Target Date Funds automatically take care of changing the stock, real asset and bond mix over time. Generally, stocks and real assets tend to earn higher returns than bonds over the long term, but they tend to be riskier with more frequent performance fluctuations. A young investor can typically afford to take on more risk than an investor closer to retirement. As retirement approaches, it makes sense to begin focusing on preserving savings with a larger allocation to less risky investments (bonds) and a smaller allocation to stocks and real assets.

  • You typically invest in the Target Date Fund with the year closest to your estimated retirement date at age 65.

Asset Class Funds

Your streamlined menu of Russell Investments multi-manager asset class funds are for those of you who are comfortable making the complex investment decisions involved in building, monitoring and managing your own retirement portfolio. Funds typically invest in:

  • Stocks: Securities that give investors a share of ownership in the companies that issued the stocks. While stocks have offered the greatest potential for growth over time, their volatility can make them risky.

  • Real assets: Tangible or physical assets that typically have intrinsic value, such as real estate, commodities (e.g., oil, wheat) and infrastructure (e.g., roads, bridges). They provide portfolio diversification, but have the potential to be more risky than traditional stocks and bonds.

  • Bonds: Debt instruments in which investors loan money to companies and government entities that borrow money for a defined period of time at a fixed rate of interest. While bonds have been typically less risky than stocks, they have historically produced lower returns.

If you’re just starting out, you may want to consider a more aggressive approach, with more of your assets in stock and real asset funds. You still have time to recover from short-term market losses, and over longer periods of time, stocks have historically provided higher levels of return than bonds.

If you’re nearing retirement, you no longer have the luxury of time to recover from market downturns, so you may want to consider a strategy that makes a larger allocation to bond funds.

Mutual funds vs. Collective Investment Trust Funds

The Russell Investments Trust Company Commingled Funds in your retirement plan are a type of fund known as Collective Investment Trusts (CIT). Like mutual funds, they are pooled investment vehicles that follow a specific investment strategy. Unlike mutual funds, they are not available to the public and instead are designed to be part of a tax-qualified employer-sponsored retirement plan like a 401(k) or a corporate pension plan. They can be custom designed to fit the needs of each plan. CIT fees are typically lower than mutual funds.
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