Russell Investments institutional funds

More than just multi-manager funds: Timely research, well-founded investment beliefs and dynamic fund management

To create investment solutions for our clients, we draw on our unique set of capabilities—capabilities that are hard to find under one roof: capital market insights, manager research, asset allocation, portfolio implementation and factor exposures. We harness these capabilities in an open architecture approach to design, construct and manage portfolios with the express purpose of delivering the rate of return our clients require with a tolerable level of risk.

Plan Types

Managing a pension program is more challenging than ever. Pension reform, funding issues, accounting reform, manager selection—these all impact your plan and your organization's bottom line. Contributions are likely to rise as new funding thresholds are imposed. Achieving plan goals requires attention to funded status and total plan returns. You must understand the risks and set your investment strategy accordingly. We can help you decide what's right for your plan We've developed a holistic approach for defined benefit plans. Our investment outsourcing solutions provide you with a truly dynamic approach to managing your pension plan that links your investment strategy to your organization's goals.

  • Large cap U.S. equity funds

    U.S. large cap funds typically invest in stocks of U.S. companies with a market capitalization value of more than $10 billion. Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per share.

    • Large Cap Defensive Equity Fund

      The Large Cap Defensive Equity Fund seeks to provide long-term growth of capital. Aims to outperform the Russell 1000® Defensive Index® while managing volatility and maintaining diversification similar to the Index over a full market cycle.

    • Equity I Fund

      The Equity I Fund seeks to provide the potential for long-term growth of capital and income. Seeks to outperform the Russell 1000® Index with above-average consistency over a full market cycle.

    • Large Cap U.S. Equity Fund

      The Large Cap U.S. Equity Fund seeks to generate excess return over the Russell 1000® Index on an annualized basis over a full market cycle.

    • Enhanced Index US Equity Fund

      The Enhanced Index US Equity Fund seeks to provide long-term capital growth by tracking stocks in the Russell 1000® Index, while aiming to modestly enhance those index returns.

    • Russell Investments Russell 1000® Index Fund

      The Russell Investments Russell 1000® Index Fund seeks to mirror the returns of the Russell 1000® Index as closely as possible before the deduction of Fund expenses.

  • Small cap U.S. equity funds

    U.S. small cap funds typically invest in stocks of U.S. companies with a market capitalization value of between $300 million and $2 billion. Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per share.

    • Equity II Fund

      The Equity II Fund seeks to provide a favorable total return primarily through capital appreciation. Aims to outperform the Russell 2500™ Index with above-average consistency while managing volatility and maintaining diversification similar to the Index over a full market cycle.

    • Small Cap Fund

      The Small Cap Fund seeks to provide long-term capital appreciation. Aims to outperform the Russell 2000® Index while managing volatility and maintaining diversification similar to the Index over a full market cycle.

  • International and global equity funds

    A global fund invests in stocks of companies in developed countries throughout the world. An international fund invests in stocks of companies in developed countries throughout the entire world excluding the home country of the investment manager.

    • International Fund

      The International Fund seeks to provide long-term growth of capital. Aims to outperform the Russell Developed ex-U.S. Large Cap Index Net (the “Index”) while managing volatility and maintaining diversification similar to the index over a full market cycle.

    • International Fund with Active Currency

      The International Fund with Active Currency seeks to provide long-term growth of capital. Aims to outperform the Russell Developed ex-U.S. Large Cap Index Net (the “Index”) while managing volatility and maintaining diversification similar to the index over a full market cycle.

    • All International Markets Fund

      The All International Markets Fund (AIM) is designed to provide the potential for long-term growth of capital and income over a market cycle. It offers investors a convenient way to diversify by combining non-U.S. equities from Developed and Emerging Markets in one fund.

    • World Equity Fund

      The World Equity Fund seeks to provide long-term capital appreciation. Aims to outperform the Russell Developed Large Cap Index Net over a full market cycle.

    • Emerging Markets Fund

      The Emerging Markets Fund seeks to provide the potential for long-term growth of capital. Aims to outperform the Russell Emerging Markets Index Net over a full market cycle.

    • Frontier Markets Equity Fund

      The Frontier Markets Equity Fund seeks a favorable total return and diversification through foreign investments with emphasis in countries with markets at an early stage of growth and development. Aims to outperform the Russell Frontier® ex-GCC Index Net over a market cycle.

  • Fixed income funds

    Fixed income funds invest in debt instruments that provide a return in the form of fixed periodic payments and the eventual return of principal at maturity.

    • Short Term Investment Fund

      The Short-Term Investment Fund seeks to provide current income and preservation of capital with a focus on short duration securities.

    • Inflation Protected Securities Fund

      The Inflation Protected Securities Fund seeks to provide investors with protection from inflation exposure by investing in U.S. Treasury inflation-protected securities (TIPS) of varying maturities. The Fund seeks to replicate the risk and return characteristics of Bloomberg Barclays Capital U.S. TIPS Index (Series-L).

    • Investment Contract Fund

      The Investment Contract Fund seeks to provide safety of principal and a favorable rate of return.

    • Fixed Income II Fund

      The Fixed Income II Fund seeks moderate returns and low fluctuation in value by investing in short to intermediate-term bonds representing many sectors of the broad bond market. Aims to outperform the BoAML US Treasuries 1-3 Year Index over an interest rate cycle.

    • Quantitative Bond Fund

      The Quantitative Bond Fund is designed to preserve capital and provide current income. It seeks favorable returns comparable to the broad fixed income market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index.

    • Fixed Income I Fund

      The Fixed Income I Fund is designed to provide current income and capital appreciation through a variety of diversified strategies. Seeks favorable returns comparable to the broad fixed income market, as measured by the BloombergBarclays U.S. Aggregate Bond Index.

    • Multi-Manager Bond Fund

      The Multi-Manager Bond Fund is designed to provide current income, and as a secondary objective, capital appreciation through a variety of diversified strategies. It seeks to outperform the Bloomberg Barclays U.S. Aggregate Bond Index over an interest rate cycle.

  • Liability-driven investment funds

    These are multi-manager funds that aim to provide investors with the potential to reduce DB pension funded status volatility through exposure to high quality, mostly corporate bonds which closely match those found in discount curves used to value U.S. pension liabilities. They provide a closer credit quality and cash flow match versus liabilities than can be achieved through a single long credit strategy.

    • 6-Year LDI Fixed Income Fund

      The 6-Year LDI Fixed Income Fund seeks to modestly outperform the Bloomberg Barclays 6-Year LDI Index by combining diversified advisor styles and strategies over a full market cycle.

    • 8-Year LDI Fixed Income Fund

      The 8-Year LDI Fixed Income Fund seeks to modestly outperform the Bloomberg Barclays 8-Year LDI Index by combining diversified advisor styles and strategies over a full market cycle.

    • 10-Year LDI Fixed Income Fund

      The 10-Year LDI Fixed Income Fund seeks to modestly outperform the Bloomberg Barclays 10-Year LDI Index by combining diversified advisor styles and strategies over a full market cycle.

    • 12-Year LDI Fixed Income Fund

      The 12-Year LDI Fixed Income Fund seeks to modestly outperform the Bloomberg Barclays 12-Year LDI Index by combining diversified advisor styles and strategies over a full market cycle.

    • 14-Year LDI Fixed Income Fund

      The 14-Year LDI Fixed Income Fund seeks to modestly outperform the Bloomberg Barclays 14-Year LDI Index by combining diversified advisor styles and strategies over a full market cycle.

    • 16-Year LDI Fixed Income Fund

      The 16-Year LDI Fixed Income Fund seeks to modestly outperform the Bloomberg Barclays 16-Year LDI Index by combining diversified advisor styles and strategies over a full market cycle.

    • Long Duration Fixed Income Fund

      The Long Duration Fixed Income Fund seeks to provide current income and capital appreciation. Aims to outperform the Bloomberg Barclays U.S. Long Government/Credit Bond Index over a full market cycle.

    • 28 to 29-Year STRIPS Fixed Income Fund

      This 28 to 29-Year STRIPS Fixed Income Fund seeks to provide duration and Treasury exposure by investing in an optimized subset of the STRIPS universe with a similar duration profile as the Bloomberg Barclays U.S. Treasury STRIPS1 28-29 year Index.

      1Separate Trading of Registered Interest and Principal of Securities

    • 10-Year STRIPS Fixed Income Fund

      This 10-Year STRIPS Fixed Income Fund seeks to provide duration and Treasury exposure by investing in an optimized subset of the STRIPS universe with a similar duration profile as the Bloomberg Barclays U.S. Treasury STRIPS1 10-11 year Index.

      1Separate Trading of Registered Interest and Principal of Securities

    • 15-Year STRIPS Fixed Income Fund

      This 15-Year STRIPS Fixed Income Fund Seeks to provide duration and Treasury exposure by investing in an optimized subset of the STRIPS universe with a similar duration profile as the Bloomberg Barclays U.S. Treasury STRIPS1 15-16 year Index.

      1Separate Trading of Registered Interest and Principal of Securities

  • Real asset funds

    Russell's real asset funds are structured to give institutional investors exposure to core real assets through an actively managed portfolio.

    • Global Real Estate Securities Fund

      The Global Real Estate Securities Fund seeks to provide current income and long-term capital growth. It strives to outperform the FTSE EPRA/NAREIT Developed Real Estate Index Net TRI with above-average consistency over a full market cycle.

    • Global Listed Infrastructure Fund

      The Global Listed Infrastructure Fund seeks to provide the potential for excess return streams, stable income potential, and a possible hedge against inflation. It seeks to outperform the S&P Infrastructure Index over a full market cycle.

    • Commodities Fund

      The Commodities Fund is designed to provide the potential for long-term growth of capital and income. It seeks to outperform the Bloomberg Commodity Total Return Index with above-average consistency over a full market cycle.

    • Real Asset Fund

      The Real Asset Fund seeks favorable returns and a possible hedge against inflation by offering a well diversified portfolio that invests in global listed infrastructure, global listed real estate, commodities, and treasury inflation protected securities (“TIPS”).

    • Marketable Real Asset Fund

      The Marketable Real Asset Fund seeks favorable returns by offering a well-diversified real asset portfolio that invests in global listed infrastructure, global real estate securities and commodities.

  • Private real estate

    Multi-manager fund invests primarily in private core real estate designed to provide stable and high levels of current income supported by strong property occupancy.

    • Real Estate Equity Fund

      The Real Estate Equity Fund (REEF) is designed to provide stable and high levels of current income and slightly higher returns emphasizing appreciation. It seeks to outperform the NCREIF Fund Index Open-End Diversified Core Equity – Equal Weight (NFI-ODCE-EQ) over a full market cycle.

  • Multi-asset funds

    Multi-asset investments offer a convenient way for investors to diversify a portfolio by combining funds and separate accounts investing in various combinations of U.S. and non-U.S. stocks, bonds, and real assets into one fund.

    • Multi-Asset Core Fund

      The Multi-Asset Core Fund seeks to provide long-term capital growth by offering a diversified portfolio of funds and separate accounts investing in U.S. and non-U.S. stocks, global real assets, and bonds. Aims to outperform its benchmark over a full market cycle.

Your goal as a DC plan sponsor is to help improve the financial security for the participants in your defined contribution plan. That's our mission, too. We're dedicated to helping you employ the best practices in plan design, investments and implementation. Our commitment to research compels us to look deeply into the most complex problems. And our unmatched experience providing governance and risk management insight informs every step we take as your fiduciary solutions provider. We have a deep understanding of what works, what doesn't and where to focus.

  • Large cap - U.S. equity

    U.S. large cap funds typically invest in stocks of U.S. companies with a market capitalization value of more than $10 billion. Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per share.

    • Large Cap Defensive Equity Fund

      The Large Cap Defensive Equity Fund seeks to provide long-term growth of capital. Aims to outperform the Russell 1000® Defensive Index® while managing volatility and maintaining diversification similar to the Index over a full market cycle.

    • Equity I Fund

      The Equity I Fund seeks to provide the potential for long-term growth of capital and income. Seeks to outperform the Russell 1000® Index with above-average consistency over a full market cycle.

    • Large Cap U.S. Equity Fund

      The Large Cap U.S. Equity Fund seeks to outperform the Russell 1000® Index with above average consistency over a full market cycle.

    • Enhanced Index US Equity Fund

      The Enhanced Index U.S. Equity Fund seeks to provide long-term capital growth by tracking stocks in the Russell 1000® Index, while aiming to modestly enhance those index returns.

    • Russell Investments Russell 1000® Index Fund

      The Russell Investments Russell 1000® Index Fund seeks to mirror the returns of the Russell 1000® Index as closely as possible before the deduction of Fund expenses.

  • Small cap - U.S. equity

    U.S. small cap funds typically invest in stocks of U.S. companies with a market capitalization value of between $300 million and $2 billion. Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per share.

    • Equity II Fund

      The Equity II Fund seeks to provide a favorable total return primarily through capital appreciation. Aims to outperform the Russell 2500™ Index with above-average consistency while managing volatility and maintaining diversification similar to the Index over a full market cycle.

    • Small Cap Fund

      The Small Cap Fund seeks to provide long-term capital appreciation. Aims to outperform the Russell 2000® Index while managing volatility and maintaining diversification similar to the Index over a full market cycle.

  • International & Global Equity

    A global fund invests in stocks of companies in developed countries throughout the world. An international fund invests in stocks of companies in developed countries throughout the entire world excluding the home country of the investment manager.

    • International Fund

      The International Fund seeks to provide long-term growth of capital. Aims to outperform the Russell Developed ex-U.S. Large Cap Index Net (the “Index”) while managing volatility and maintaining diversification similar to the index over a full market cycle.

    • International Fund with Active Currency

      The International Fund with Active Currency seeks to provide long-term growth of capital. Aims to outperform the Russell Developed ex-U.S. Large Cap Index Net (the “Index”) while managing volatility and maintaining diversification similar to the index over a full market cycle.

    • International Index Fund

      The International Index Fund seeks to match performance of the MSCI EAFE Index (net), as closely as possible before deduction of Fund expenses.

    • All International Markets Fund

      The All International Markets Fund is designed to provide the potential for long-term growth of capital and income over a market cycle. It offers investors a convenient way to diversify by combining non-U.S. equities from Developed and Emerging Markets in one fund.

    • World Equity Fund

      The World Equity Fund seeks to provide long-term capital appreciation. Aims to outperform the Russell Developed Large Cap Index Net over a full market cycle.

    • Emerging Markets Fund

      The Emerging Markets Fund seeks to provide the potential for long-term growth of capital. Aims to outperform the Russell Emerging Markets Index Net over a full market cycle.

  • Fixed Income

    Fixed income funds invest in debt instruments that provide a return in the form of fixed periodic payments and the eventual return of principal at maturity.

    • Short Term Investment Fund

      The Short-Term Investment Fund seeks to provide current income and preservation of capital with a focus on short duration securities.

    • Inflation Protected Securities Fund

      The Inflation Protected Securities Fund seeks to provide investors with protection from inflation exposure by investing in U.S. Treasury inflation-protected securities (TIPS) of varying maturities. The Fund seeks to replicate the risk and return characteristics of Bloomberg Barclays Capital U.S. TIPS Index (Series-L).

    • Investment Contract Fund

      The Investment Contract Fund seeks to provide safety of principal and a favorable rate of return.

    • Fixed Income II Fund

      The Fixed Income II Fund seeks moderate returns and low fluctuation in value by investing in short to intermediate-term bonds representing many sectors of the broad bond market. Aims to outperform the BoAML US Treasuries 1-3 Year Index over an interest rate cycle.

    • Quantitative Bond Fund

      The Quantitative Bond Fund is designed to preserve capital and provide current income. It seeks favorable returns comparable to the broad fixed income market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index.

    • Fixed Income I Fund

      The Fixed Income I Fund is designed to provide current income and capital appreciation through a variety of diversified strategies. Seeks favorable returns comparable to the broad fixed income market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index.

    • Multi-Manager Bond Fund

      The Multi-Manager Bond Fund is designed to provide current income, and as a secondary objective, capital appreciation through a variety of diversified strategies. It seeks to outperform the Bloomberg Barclays U.S. Aggregate Bond Index over an interest rate cycle.

  • Real Asset

    Russell's real asset funds are structured to give institutional investors exposure to core real assets through an actively managed portfolio.

    • Global Real Estate Securities Fund

      The Global Real Estate Securities Fund seeks to provide current income and long-term capital growth. It strives to outperform the FTSE EPRA/NAREIT Developed Real Estate Index Net TRI with above-average consistency over a full market cycle.

    • Global Listed Infrastructure Fund

      The Global Listed Infrastructure Fund seeks to provide the potential for excess return streams, stable income potential, and a possible hedge against inflation. It seeks to outperform the S&P Infrastructure Index over a full market cycle.

    • Commodities Fund

      The Commodities Fund is designed to provide the potential for long-term growth of capital and income. It seeks to outperform the Bloomberg Commodity Total Return Index with above-average consistency over a full market cycle.

    • Real Asset Fund

      The Real Asset Fund seeks favorable returns and a possible hedge against inflation by offering a well diversified portfolio that invests in global listed infrastructure, global listed real estate, commodities, and treasury inflation protected securities (“TIPS”).

    • Marketable Real Asset Fund

      The Marketable Real Asset Fund seeks favorable returns by offering a well-diversified real asset portfolio that invests in global listed infrastructure, global real estate securities and commodities.

  • Multi-Asset

    Multi-asset investments offer a convenient way for investors to diversify a portfolio by combining funds and separate accounts investing in various combinations of U.S. and non-U.S. stocks, bonds, and real assets into one fund.

    • Multi-Asset Core Fund

      The Multi-Asset Core Fund seeks to provide long-term capital growth by offering a diversified portfolio of funds and separate accounts investing in U.S. and non-U.S. stocks, global real assets, and bonds. Aims to outperform its benchmark over a full market cycle.

  • Target Risk Funds

    Balanced Funds offer premixed portfolios with fixed allocations, designed to simplify the asset allocation process for investors. By combining funds into portfolios with various levels of risk and return, Balanced Funds offer an efficient approach to investing. Each balanced strategy is designed to help investors reach their goals by seeking long-term, consistent performance.

    • Balanced Income Fund

      The Balanced Income Fund seeks favorable returns by offering an income-focused conservative investor a well-diversified portfolio that invests in U.S. and non-U.S. equities, bonds, global infrastructure, global commodities and global real estate.

    • Conservative Balanced Funds

      The Conservative Balanced Fund seeks favorable returns by offering a conservative investor a well diversified portfolio that invests in U.S. and non-U.S. equities, bonds, global infrastructure, global commodities and global real estate.

    • Global Balanced Funds

      The Global Balanced Fund seeks favorable returns by offering a moderate investor a well-diversified portfolio that invests in U.S. and non-U.S. equities, bonds, global infrastructure, global commodities and global real estate.

    • Aggressive Balanced Funds

      The Aggressive Balanced Fund seeks favorable returns by offering an aggressive investor a well-diversified portfolio that invests in U.S. and non-U.S. equities, bonds, global infrastructure, global commodities and global real estate.

  • Target Date Funds

    Target Date Funds offer premixed portfolios designed to simplify the asset allocation process for investors. Investors typically choose the target date fund with the year in the fund name that is closest to the year they plan to retire (assumes retirement at age 65). The funds approach to blending active and passive funds provides investors with a cost-effective approach to portfolio diversification. The funds employ active management strategies in the asset classes where we see the greatest potential for excess returns over passive benchmarks. In asset classes with highly competitive pricing and market-like returns, we employ passive strategies. Target date funds are designed to help investors reach their goals by seeking long-term, consistent performance. Target Date Fund allocations align with U.S. Department of Labor Qualified Default Investment Alternatives requirements for defined contribution plans.

    • Retirement Fund

      The Retirement Fund seeks to provide participants who have retired with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2020 Strategy Fund

      The 2020 Strategy Fund seeks to provide participants planning to retire between 2018 and 2022 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2025 Strategy Fund

      The 2025 Strategy Fund seeks to provide participants planning to retire between 2023 and 2027 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2030 Strategy Fund

      The 2030 Strategy Fund seeks to provide participants planning to retire between 2028 and 2032 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2035 Strategy Fund

      The 2035 Strategy Fund seeks to provide participants planning to retire between 2033 and 2037 with a well-diversified portfolio of stocks, real assets and bonds to help them achieve their retirement income objectives.

    • 2040 Strategy Fund

      The 2040 Strategy Fund seeks to provide participants planning to retire between 2038 and 2042 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2045 Strategy Fund

      The 2045 Strategy Fund seeks to provide participants planning to retire between 2043 and 2047 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2050 Strategy Fund

      The 2050 Strategy Fund seeks to provide participants planning to retire between 2048 and 2052 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2055 Strategy Fund

      The 2055 Strategy Fund seeks to provide participants planning to retire between 2053 and 2057 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

    • 2060 Strategy Fund

      The 2060 Strategy Fund seeks to provide participants planning to retire between 2058 and 2062 with a well-diversified portfolio of global equity, real assets and bonds to help them achieve their retirement income objectives.

Russell Investments offers a variety of investment strategies for non-profit organizations, which includes traditional return seeking and diversifying asset classes such as large and small cap equity, U.S., Non-U.S., and Global Equity, and Fixed Income. Additionally, we offer strategies for investors interested in alternative investments, including private real estate, private capital, marketable real assets, and hedge funds.

To discuss the full list of the strategies available to qualified non-profit investors, please call Eric Macy at 855-771-2966 or contact us. A partial list of strategies available to non-profit investors can be found here.

Institutional investing isn't easy

Each of these funds is an effective investment tool in its own right. When individual funds are carefully combined to create a diversified, outcome-oriented, multi-asset institutional investment program, their true potential is unlocked.

The collective trust funds are bank-maintained collective investment funds managed by Russell Trust Company, a Washington State non-depository trust company, and are not registered mutual funds. The funds are only available to certain qualified employee benefit plans and government plans and are not offered to the general public. 

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

Diversification and multi-asset solutions do not assure a profit and do not protect against loss in declining markets.

The trademarks, service marks and copyrights related to the Russell indexes and other materials as noted are the property of their respective owners.

Large capitalization (large cap) investments involve stocks of companies generally having a market capitalization between $10 billion and $200 billion. The value of securities will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions.

Small capitalization (small cap) investments involve stocks of companies with smaller levels of market capitalization (generally less than $2 billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks. Investors should consider the additional risks involved in small cap investments.

Global equity involves risk associated with investments primarily in equity securities of companies located around the world, including the United States. International securities can involve risks relating to political and economic instability or regulatory conditions. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which have less stability than those of more developed countries.

Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield ("junk") bonds or mortgage backed securities, especially mortgage backed securities with exposure to sub-prime mortgages.

Liability-driven investment strategies contain certain risks that prospective investors should evaluate and understand prior to making a decision to invest. These risks may include, but are not limited to; interest rate risk, counter party risk, liquidity risk and leverage risk. Interest rate risk is the possibility of a reduction in the value of a security, especially a bond or swap, resulting from a rise in interest rates. Counter party risk is the risk that either the principal or an unrecognized gain is not paid by the counter party of a security or swap. Liquidity risk is the risk that a security or swap cannot be purchased or sold at the time and amount desired. Leverage is deliberately used by the fund to create a highly interest rate sensitive portfolio. Leverage risk means that the portfolio will lose more in the event of rising interest rates than it would otherwise with a portfolio of physical bonds with similar characteristics.

Specific sector investing such as real estate can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks to real estate investments. Fund investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation.

Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal.

Target date fund investing involves risk, principal loss is possible. The principal value of the fund is not guaranteed at any time, including the target date. The target date is the approximate date when investors plan to retire and would likely stop making new investments in the fund.

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