RLF Enrollment - Web Book - Ready - Flipbook - Page 77
Investment Factsheet
PAGE 47 OF 50
Inv. Data as of 03/31/25.
STATEMENT OF ADDITIONAL DISCLOSURES: PEER GROUP DESCRIPTIONS
Large Value (LV). Large-value portfolios invest primarily in big U.S. companies that are less expensive or growing more slowly than other
large-cap stocks. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. Value is defined based on low
valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow).
Mid-Cap Blend (MB). The typical mid-cap blend portfolio invests in U.S. stocks of various sizes and styles, giving it a middle-of the-road
profile. Most shy away from high-priced growth stocks but aren't so price-conscious that they land in value territory. Stocks in the middle 20% of
the capitalization of the U.S. equity market are defined as mid-cap. The blend style is assigned to portfolios where neither growth nor value
characteristics predominate.
Moderate Allocation (MA). Funds in allocation categories seek to provide both income and capital appreciation by primarily investing in
multiple asset classes, including stocks, bonds, and cash. These moderate strategies seek to balance preservation of capital with appreciation.
They typically expect volatility similar to a strategic equity exposure between 50% and 70%.
Moderately Conservative Allocation (CA). Funds in allocation categories seek to provide both income and capital appreciation by primarily
investing in multiple asset classes, including stocks, bonds, and cash. These moderately conservative strategies prioritize preservation of capital
over appreciation. They typically expect volatility similar to a strategic equity exposure between 30% and 50%.
Money Market Taxable (TM). These portfolios invest in short-term money market securities in order to provide a level of current income that
is consistent with the preservation of capital. These funds do not designate themselves as Prime in form N-MFP and transact at a fixed net
asset value.
Multisector Bond (MU). Multisector-bond portfolios seek income by diversifying their assets among several fixedincome sectors, usually U.S.
government obligations, U.S. corporate bonds, foreign bonds, and high-yield U.S. debt securities. These portfolios typically hold 35% to 65% of
bond assets in securities that are not rated or are rated by a major agency such as Standard & Poor"s or Moody"s at the level of BB (considered
speculative for taxable bonds) and below.
Natural Resources (SN). Natural-resources portfolios focus on commodity-based industries such as energy, chemicals, minerals, and forest
products in the United States or outside of the United States. Some portfolios invest across this spectrum to offer broad natural-resources
exposure. Others concentrate heavily or even exclusively in specific industries. Portfolios that concentrate primarily in energy-related industries
are part of the equity energy category.
Real Estate (SR). Real estate portfolios invest primarily in real estate investment trusts of various types. REITs are companies that develop
and manage real estate properties. There are several different types of REITs, including apartment, factory-outlet, health-care, hotel, industrial,
mortgage, office, and shopping center REITs. Some portfolios in this category also invest in real estate operating companies.
Short Government (GS). Short-government portfolios have at least 90% of their bond holdings in bonds backed by the U.S. government or by
government-linked agencies. This backing minimizes the credit risk of these portfolios, as the U.S. government is unlikely to default on its debt.
These portfolios have durations typically between 1.0 and 3.5 years, so they have relatively less sensitivity to interest rates and, thus, low risk
potential. Morningstar calculates monthly breakpoints using the effective duration of the Morningstar Core Bond Index in determining duration
assignment. Short is defined as 25% to 75% of the three-year average effective duration of the MCBI.
Small Blend (SB). Small-blend portfolios favor U.S. firms at the smaller end of the market-capitalization range. Some aim to own an array of
value and growth stocks while others employ a discipline that leads to holdings with valuations and growth rates close to the small-cap averages.
Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. The blend style is assigned to portfolios where
neither growth nor value characteristics predominate.
Small Growth (SG). Small-growth portfolios focus on faster-growing companies whose shares are at the lower end of the marketcapitalization range. These portfolios tend to favor companies in up-and-coming industries or young firms in their early growth stages. Because
these businesses are fastgrowing and often richly valued, their stocks tend to be volatile. Stocks in the bottom 10% of the capitalization of the
U.S. equity market are defined as small cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash
flow) and high valuations (high price ratios and low dividend yields).
Target-Date 2020 (TE). Target-date portfolios provide diversified exposure to stocks, bonds, and cash for those investors who have a specific
date in mind (in this case, the years 2016-2020) for retirement. These portfolios aim to provide investors with an optimal level of return and
Please see important disclosures in the Statement of Additional Disclosures. © 2025, Broadridge Financial Solutions, Inc. All rights reserved. The analysis
and opinions generated by Broadridge and its affiliates do not constitute professional investment advice and are provided solely for informational purposes.
