Tier 1: Target Allocation Funds
Instant investment diversification
Objective-based funds can help simplify your asset allocation decisions. Many investors don’t have the time, interest, or knowledge to select and track their own investments. That’s why RPB offers our three objective-based funds.
Each fund has diversified holdings to offset the risks associated with investing in a single asset type. And each fund is designed to meet a specific investment goal, whether it’s growth, income, a mix of those, or stability. This tier of funds may be appealing if you’re unsure of how to allocate your investments to meet your goals and want a simplified way to build a strategically diversified portfolio.
RPB’s investment advisory firm, NEPC, which is guided by RPB’s Investment Committee and our Jewish Values Investing Policy, recommends the asset allocation and managers for our objective-based funds.
Fund descriptions
Capital Appreciation Fund
This is the most aggressive of the Tier 1 funds. Its moderate- to high-volatility strategy is designed to produce principal growth over a longer time period. The fund invests in a broad assortment of assets that have historically generated returns greater than income-oriented investments but also have greater volatility than income-oriented investments. Read the fact sheet
Appreciation and Income Fund
This is the second-most aggressive of our objective-based funds. Its moderate-volatility strategy is designed to achieve meaningful increases in account value with a lower level of volatility than the plan’s most aggressive fund. Money in this fund is invested by allocating 55% to the plan’s Capital Appreciation Fund and 45% to its Income Focused Fund (as of December 31, 2018). Read the fact sheet
Income Focused Fund
This is the second-most conservative of the Tier 1 funds. Its low- to moderate-volatility strategy is designed to generate income and keep pace with inflation. Although principal value may fluctuate, the frequency and severity of losses incurred by similar portfolios have historically been less than those of growth-oriented investments. Read the fact sheet
Fund details and comparisons
| Capital Appreciation Fund | Appreciation & Income Fund | Income Focused Fund | |
|---|---|---|---|
Investment Objective | Robust long-term principal growth | Moderate long-term principal growth | Reliable income with principal growth to keep pace with inflation |
Asset Allocation | Includes a mix of global stocks, bonds, and real assets. While the largest allocations are to U.S. and international stocks, the fund’s allocation to bonds and real assets is expected to both contribute to returns and help offset periods of weakness in the stock market. | Includes a mix of asset classes, allocated 55% to the Capital Appreciation Fund and 45% to the Income Focused Fund (as of 12/31/18). The three largest allocations are to U.S. bonds, U.S. stocks, and international developed market stocks. | Includes a mix of both fixed-income securities and stocks that generate solid dividend yields and tend to perform well during periods of high inflation. The largest allocation is to U.S. bonds. |
Who should consider investing? | Investors who wish to generate returns greater than income-oriented investments and are prepared to weather greater volatility than income-oriented investments. | Investors with the ability to tolerate short- to medium-term fluctuations in principal due to adverse economic conditions. | Investors seeking modest growth of principal. Although principal value may fluctuate, the frequency and severity of losses have historically been less than those of growth-oriented investments. |
Fee1 | 46 bps | 39 bps | 31 bps |
- Participants also pay an RPB Administration Fee (20 bps) and a Custody, Record Keeping, and Investment Consulting Fee (7 bps).
Looking for more customization?
Our Tier 2 self-directed funds allow you and your financial advisor to build a custom portfolio across asset classes.