The Diversified Equity investment strategy is designed to seek a favorable long-term rate of return through capital appreciation and investment income by investing primarily in a broadly diversified portfolio of common stocks.
The portfolio management team seeks to invest in a broadly diversified portfolio of domestic and foreign equity securities by using a combination of three investment strategies: active management, enhanced indexing, and pure indexing. The team may invest in companies of any market capitalization size or investment style (growth, blend, or value) and will invest a small percentage of its foreign investments in emerging market securities.
The benchmark for the investment strategy is a composite index comprised of four unmanaged benchmarks: the Russell 3000® Index, the MSCI Barra ("MSCI") EAFE® + Canada Index, the MSCI Emerging Markets IndexSM, and the MSCI EAFE® + Canada Small Cap Index. The weights in the composite index change daily to reflect the relative sizes of the domestic, developed foreign market, emerging market, and foreign small-cap segments of the portfolio.
Diversified Equity portfolios are subject to certain risks such as market and investment style risk. Investing in non-U.S. markets involves certain additional risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity, and the potential for market volatility and political instability. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets.
This material is provided for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.