Verdex Enrollment - Web Book - Ready - Flipbook - Page 64
Word about risk continued
>?
?=F;L?ÊGIL;NILC;ÊIHÊJ;SG?HNMŸÊÊ
.B?ÊLCMEMÊI@ÊCHP?MNCHAÊCHÊM?=OLCNC?MÊI@Ê@IL?CAHÊCMMO?LM
=;HÊCH=FO>?Ê@FO=NO;NCIHMÊCHÊ@IL?CAHÊ=OLL?H=C?MƙÊJIFCNC=;F
;H>Ê?=IHIGC=ÊCHMN;
Ê@IL?CAHÊN;R;NCIHÊCMMO?MŸÊÊÊ
.B?Ê OH>ÊG;SÊBIF>ÊCFFCKOC>ÊM?=OLCNC?MÊNB;NÊCNÊG;SÊ
Ê=IOF>
FIM?ÊCNMÊ?HNCL?ÊCHP?MNG?HNÊCHÊMO=BÊM?=OLCNC?MŸÊÊ ILÊQL;J
;AL??G?HNMÊJOL=B;M?>Ê
ƙÊNB?L?ÊCMÊHIÊ;=NCP?
G;LE?NÊ;H>ÊNB?ÊM;F?ÊI@ÊMO=BÊ;AL??G?HNMÊCMÊHINÊ;H
;P;CF;
L;Q;FÊL?KO?MNMŸ
*F;HMÊ;H>ÊJF;HÊJ;LNC=CJ;HNMÊ;L?ÊMO
CNSÊLCME
>O?ÊNIÊP;LCIOMÊQCNB>L;Q;FÊL?MNLC=NCIHMÊL?F;NCHAÊNIÊNB?
OH>ƙÊM??ÊLNC=F?Ê0#Ê-?=NCIHÊƊÊI@ÊNB?Ê?=F;L;NCIHÊI@
.LOMNŸÊÊ
.B?Ê OH>ÊCMÊMOCN;
MBIOF>ÊHINÊ
Ê;MÊ;ÊMBILNN?LGÊCHP?MNG?HN
P?BC=F?ŸÊ'IL?IP?LƙÊ;HÊCHP?MNG?HNÊCHÊNB?Ê OH>ÊCMÊHIN
CHN?H>?>ÊNIÊJLIPC>?Ê;Ê=IGJF?N?ÊILÊ
CHP?MNG?HNÊJLIAL;GŸÊ.B?Ê OH>ÊG;SÊ;FMIÊ
O;FÊCHP?MNCHAÊMNSF?MÊG;SÊHIN
=IGJF?G?HNÊ?;=BÊINB?LƙÊQBC=BÊ=;HÊL?MOFNÊCHÊBCAB?L
JILN@IFCIÊNOLHIP?LMƙÊ?HB;H=?>L?>O=?>Ê=IH=?HNL;NCIHM
ILÊCHP?MNCHAÊMNSF?Ê=IGJ;L?>ÊQCNBÊ;HÊCHP?MNG?HNÊQCNBÊ;
MCHAF?ÊG;H;A?LŸÊÊ
'OHC=CJ;FÊM?=OLCNC?MÊ;L?ÊMO
CNCIHMÊ=IOF>Ê;@@?=NÊ;H
CMMO?L¤MÊ;
ÊIL
CHN?L?MNŸÊÊÊ
.B?Ê OH>ÊG;SÊCHP?MNÊCHÊ;HÊCHP?MNG?HNÊP?BC=F?ƙÊMO=BÊ;M
;ÊJLCP;N?ÊCHP?MNG?HNÊILÊ=IGGCHAF?>Ê@OH>ƛÊ;MÊ;ÊL?MOFNƙ
NB?Ê@OH>ÊCMÊMO
?LFSCHAÊLCMEMÊI@ÊNB;N
CHP?MNG?HNŸÊÊ
)
Ê
CHMNLOG?HN;FCNC?MÊG;SÊL?=?CP?ÊP;LSCHAÊF?P?FMÊI@ÊMOJJILN
@LIGÊNB?ÊAIP?LHG?HNƙÊQBC=BÊ=IOF>Ê;@@?=NÊNB?Ê@OH>¤M
;
ÊNB?SÊ>?@;OFNŸÊÊÊ
.B?Ê OH>ÊCMÊHINÊ;ÊGONO;FÊ@OH>ÊILÊ;HSÊINB?LÊNSJ?ÊI@
#HP?MNG?HNÊIGJ;HSÊQCNBCHÊNB?ÊG?;HCHAÊI@ÊNB?
#HP?MNG?HNÊIGJ;HSÊ=NÊI@ÊƂƊƅƁƙÊ;MÊ;G?H>?>ƙÊ;H>
CMÊHINÊMO
?LŸÊÊ
IFF;LÊLIFFÊNL;HM;=NCIHMÊCHPIFP?ÊNB?ÊLCMEÊNB;NÊNB?ÊG;LE?N
P;FO?Ê;H>ÊSC?F>ÊG;SÊ>?=FCH?Ê
ÊM?=OLCNC?MÊNB;NÊB;P?Ê
Ê;H>
;L?ÊL?KOCL?>ÊNIÊ
.IÊ?ÊHHIOH=?>ÊNL;HM;=NCIHMÊCHPIFP?ÊNB?ÊLCMEÊNB;N
NB?ÊM?=OLCNC?MÊL?=?CP?>ÊG;SÊ
?FCP?LÊNB?ÊM?=OLCNSƙÊ?RJIMCHAÊNB?Ê@OH>ÊNIÊ@OLNB?L
FIMM?MŸÊ1B?NB?LÊILÊHINÊNB?Ê@OH>ÊN;E?MÊ>?FCP?LSÊI@ÊNB?
M?=OLCNC?MÊ;NÊNB?ÊN?LGCH;NCIHÊ>;N?ÊI@Ê;Ê.IÊ?
HHIOH=?>ÊNL;HM;=NCIHƙÊNB?Ê@OH>ÊQCFFÊ
ÊNI
=B;HA?MÊCHÊNB?ÊP;FO?ÊI@ÊNB?ÊOH>?LFSCHAÊCHP?MNG?HNM
>OLCHAÊNB?ÊN?LGÊI@ÊNB?Ê;AL??G?HN
*OLMO;HNÊNIÊ .Ê,OF?ÊƅŸƆƙÊNB?Ê.LOMN??ÊCMÊ?R?GJN
@LIGÊB;PCHAÊNIÊL?ACMN?LÊ;MÊ;Ê=IGGI>CNSÊJIIFÊIJ?L;NIL
Ê
Ê;HHO;FÊL?JILNÊ@ILÊNB?Ê OH>ŸÊÊ
.B?Ê OH>ÊCMÊMO
CHAÊNB?ÊLCMEMÊ;MMI=C;N?>ÊQCNBÊ;HÊCHP?MNG?HNÊCH
NB?Ê OH>ŸÊÊ
Portfolio composition
Asset Allocation
% TNA
-BILNÊ.?LGÊ#HP?MNG?HNM
ƄŸƇƁ
IL?Ê#HP?MNG?HNM
ƃƁŸƄƃ
#HN?LG?>C;N?Ê#HP?MNG?HNM
ƄƁŸƅƆ
-BILNÊOL;NCIHÊ#HP?MNG?HNM ƅƆŸƇƄ
Manager Diversification
% TNA
-BILNÊ.?LGÊ#HP?MNG?HNM
I>A?ÊÊIR
#HP?M=I
$?HHCMIH
&IIGCMÊ-;SF?M
*#')
ƄŸƇƁ
ƆŸƁƉ
ƇƁŸƉƃ
ƂƁŸƂƅ
ƂƁŸƂƉ
ƂƁŸƂƉ
Portfolio composition statistics are subject to change
and current holdings may differ. It should not be
assumed that any of the holdings discussed were or
will prove to be profitable, or that the investment
recommendations or decisions we make in the future
will be profitable or will equal the investment
performance of the holdings.
Sector Allocation
-BILNÊ.?LGÊ#HP?MNG?HNM
/Ÿ-ŸÊ.L?;MOLC?MÊ-?=OLCNC?M
/Ÿ-ŸÊ!IP?LHG?HNÊA?H=C?M
(IH/-Ê!IPNA?H=S
ILJIL;N?ÊIH>M
'ILNA;A?Ê;=E?>Ê-?=OLCNC?M
MM?NÊ;=E?>Ê-?=OLCNC?M
IGG?L=C;FÊ'ILNA;A?Ê;=E?>
-?=OLCNC?M
?LCP;NCP?M
'OHC=CJ;F
Total
Quality Allocation***
-BILNÊ.?LGÊ#HP?MNG?HNM
Ƌ
(INÊ,;N?>
Portfolio Characteristics
@@?=NCP?ÊOL;NCIHÊƧ3?;LMƨ
L?>CNCHAÊ,;N?
3C?F>ÊNIÊ';NOLCNS
% TNA
ƂŸƇƇ
ƃƃŸƄƆ
ƁŸƉƁ
ƁŸƁƆ
ƃƄŸƂƁ
ƃƈŸƃƁ
ƃƂŸƂƅ
ƇŸƇƁ
ƁŸƃƁ
ƁŸƃƄ
100.00
% TNA
ƂŸƇƇž
ƈƉŸƆƄž
ƄŸƊƁž
ƂƁŸƉƂž
ƉŸƃƃž
ƁŸƁƂž
ƁŸƃƁž
100.00%
ƄŸƄƊ
ƄŸƁƊž
ƅŸƊƉž
Wrap Provider Exposure
Moody’s
S&P
Fitch
Portfolio %
Rating
Rating
Rating
ƂƉŸƇƊž
;Ƅ
ƂƅŸƄƅž
;Ƅ
ƂƃŸƁƁž
ƃ
ƀ
ƀ
ƂƂŸƊƊž
;Ƅ
ƂƂŸƆƃž
;Ƅ
ƀ
ƀ
ƂƁŸƉƂž
Ƃ
ƀ
ƉŸƂƈž
Ƃ
ƀ
(,
ƆŸƁƉž
Ƃ
ƀ
1
ƅŸƁƄž
ƃ
ƀ
ƀ
ƊƇŸƇƃž
**Includes cash and cash equivalents held in underlying investments.
***Ratings Source: Moody’s, Standard & Poor’s or Fitch, as applicable. Ratings are measured on a scale that
generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. If securities
are rated differently by the rating agencies, the higher rating is applied. Not Rated (NR) indicates the debtor
was not rated, and should not be interpreted as indicating low quality. For more information on the rating
methodology, please visit moodys.com, standardandpoors.com or fitchratings.com.
****The crediting rate is gross of management fee and client services fees, but net of operating expenses,
acquired fund expenses, and wrap expenses.
Contract Issuer
*;=C@C=Ê&C@?Ê#HM
'?NÊ.IQ?LÊ&C@?
G?LC=;HÊ!?H?L;FÊ&C@?Ê#HM
*LO>?HNC;FÊ#HMÊI
';MM'ONO;F
,!
(;NCIHQC>?Ê&C@?Ê#HMOL;H=?
.L;HM;G?LC=;
0IS;Ê,?NCL?G?HNÊÊHHOCNS
Important information
.B?Ê#HP?M=IÊIFF?=NCP?Ê.LOMNÊ OH>MÊ;L?Ê
MÊ@ILÊQBC=BÊ#HP?M=IÊ.LOMNÊIGJ;HSÊM?LP?MÊ;M
NLOMN??Ê;H>ÊCHP?MNG?HNÊG;H;A?LŸÊ.B?SÊ;L?Ê;P;CF;
ÊL?NCL?G?HNÊJF;HMŸÊ.B?Ê@OH>MÊ;L?
HINÊ #ÊCHMOL?>ÊILÊL?ACMN?L?>ÊQCNBÊNB?Ê-?=OLCNC?MÊ;H>ÊR=B;HA?ÊIGGCMMCIHŸÊ OH>ÊCHP?MNILMÊ;H>ÊJIN?HNC;F
CHP?MNILMÊ;L?ÊMNLIHAFSÊ?H=IOL;A?>ÊNIÊL?PC?QÊNB?Ê@OH>MſÊ?=F;L;NCIHÊI@Ê.LOMNÊ@ILÊ;>>CNCIH;FÊCH@ILG;NCIHÊL?A;L>
CHAÊNB?ÊIJ?L;NCIHÊ;H>ÊCHP?MNG?HNÊI
MŸÊ#HP?M=IÊCMNLC
CMNLC
MŸÊINBÊ#HP?M=IÊ.LOMNÊIGJ;HSÊ;H>Ê#HP?M=IÊCMNLC
CL?=NƙÊQBIFFS
IQH?>ÊMO
C;LC?MÊI@Ê#HP?M=IÊ&N>Ÿ
';N?LC;FÊJL?M?HN?>ÊCMÊ=IGJCF?>Ê@LIGÊMIOL=?MÊ
ÊNIÊ
;NCIHÊI@Ê;HSÊCHP?MNG?HNÊMNL;N?ASÊILÊJLI>O=NÊ@ILÊ;ÊJ;LNC=OF;L
CHP?MNILŸÊ#HP?MNILMÊMBIOF>Ê=IHMOFNÊ;Ê@CH;H=C;FÊJLI@?MMCIH;FÊ
?=CMCIHMŸÊ1B?HÊ?P;F
O;NCHAÊQB?NB?LÊ;Ê@OH>ÊCMÊ;JJLIJLC;N?Ê@ILÊSIOLÊCHP?MNG?HNÊAI;FMƙÊ@OH>ÊJ?L@ILG;H=?ƙÊ@??MÊ;H>Ê?RJ?HM?MÊ;L?
IHFSÊ;Ê@?QÊI@ÊNB?Ê=LCN?LC;ÊSIOÊMBIOF>Ê=IHMC>?LŸÊ3IOÊG;SÊ;FMIÊ=IHMC>?LÊNB?ÊCHP?MNG?HNÊI
LCMEMŸ
.B?ÊFIIG
Ê
?L;FÊ!IP?LHG?HNÊA?H=SŸ
For Consultant, Broker Dealer, Institutional Investor or Existing Plan Sponsor & their participants' use only.
-N;
