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VEBA Stable Value Fund |
| Overall Risk Level = Conservative
Investment Objective
The Stable Value Fund seeks to provide preservation of capital with competitive interest earnings.
Investment Strategy
The fund invests in guaranteed investment contracts in insurance companies or high quality bonds. Book value withdrawals are guaranteed by insurance companies or banks.
Who Should Use This Fund
- Participants seeking preservation of their principal.
- Participants who will be making substantial withdrawals in the near future.
- Participants seeking competitive short term returns.
Who Should Not Use This Fund
- Participants willing to risk fluctuation in principal for the potential of higher returns.
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VEBA Balanced Fund - Vanguard Balanced Index Fund |
| Overall Risk Level = Moderate
Investment Objective
The Vanguard Balanced Index Fund seeks current income as well as long-term growth of capital and income.
Investment Strategy
The fund's assets are divided between stocks and bonds, with an average of 60% of its assets in stocks and 40% in bonds. The fund's stock segment attempts to match the performance of the Wilshire 5000 Total Market Index, an unmanaged index that covers all regularly traded U.S. stocks. The fund's bond segment attempts to match the performance of the Lehman Brothers Aggregate Bond Index, an unmanaged index that covers virtually all taxable fixed-income securities. The fund can be expected to fall short of matching the returns of these benchmarks by a small percentage representing operating costs.
Who Should Invest
- Investors seeking current income and long-term growth of income and capital.
- Investors seeking a simple, low-cost way to own a broadly diversified portfolio of stocks and bonds.
- Investors with a long-term investment horizon (at least five years).
Who Should Not Invest
- Investors unwilling to accept fluctuations in fund value.
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VEBA Growth Fund - Vanguard Institutional Index Fund |
| Overall Risk Level = Moderately Aggressive
Investment Objective
The Vanguard Institutional Index Fund seeks long-term growth of capital and income from dividends.
Investment Strategy
The fund holds all 500 stocks that make up the Standard & Poor's 500 Index in proportion to their weighting in the index. The fund attempts to match the performance of the Index, a widely recognized benchmark of U.S. stock market performance, and remains fully invested in stocks at all times. Its management does not speculate on the direction of the index. Though the fund seeks to match the index, its performance typically can be expected to fall short by a small percentage representing operating costs.
Who Should Invest
- Investors seeking long-term growth of capital.
- Investors seeking low-cost participation in the stock market through a broadly diversified portfolio.
- Investors with a long-term investment horizon (more than five years).
Who Should Not Invest
- Investors unwilling to accept significant fluctuations in fund value
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