Investments

Introduction

We are pleased to provide you with investment choices to meet your unique needs and personal time horizon. You can choose a pre-mixed portfolio from a group of Vanguard LifeStrategy® Funds with various asset classes and risk tolerances or create your own portfolio (do-it-yourself). The funds offered use proven investment managers at competitive costs.

Choosing Your Investments

You can invest your account using either one of two options:

 

  1. Option A: Choose a pre-mix allows you to select any one of four pre-mixed asset allocation portfolios designed and monitored by Vanguard’s investment professionals.

 

   2. With Option B: Do-it-yourself, you can build your own portfolio using any combination of available funds.

 

You should consult with a professional financial advisor before making investment decisions. HRA VEBA Trust’s Board of Trustees and its agents do not give investment advice.

 

Investment Fund Information Brochure

You should read our Investment Fund Information brochure. It has been designed to assist you with making your investment decision. This brochure contains descriptions of the available funds under Option A and Option B, risk levels, time horizons, and more to help you make your investment decision.

Investment Fund Overview

The Investment Fund Overview lists historical performance and fund operating expenses. Direct links to the fund fact sheets and prospectuses are available below.

Fact Sheets

The fact sheet for each fund or pre-mix contains more detailed performance and other information. Generally, fact sheets are updated quarterly. Click a fund link below to open its fact sheet.

 

Pre-Mixed Portfolios

Vanguard LifeStrategy Income

Vanguard LifeStrategy Conservative Growth

Vanguard LifeStrategy Moderate Growth

Vanguard LIfeStrategy Growth

 

Investment Funds

HRA VEBA Stable Value Fund*

Metropolitan West Total Return Bond

Vanguard Balanced Index

Vanguard Institutional Index

Carillon Scout Mid Cap

Champlain Small Company

American Funds EuroPacific Growth R6

 

* The HRA VEBA Stable Value Fund is a custom portfolio (separate account) managed by Goldman Sachs Asset Management exclusively for HRA VEBA Trust. Unlike a mutual fund, it is not publically traded and is available only to HRA VEBA Plan participants.

 

Prospectuses

Prospectuses are available at each fund’s respective web page. Click any of the fund links below to be taken to that fund’s web page.

 

Pre-mixed Portfolios

Vanguard LifeStrategy Income

Vanguard LifeStrategy Conservative Growth

Vanguard LifeStrategy Moderate Growth

Vanguard LifeStrategy Growth

 

 

Asset Class: Fund Name

Stable Value: HRA VEBA Stable Value Fund*

Total Return Bond: Metropolitan West Total Return Bond

Balanced: Vanguard Balanced Index

Large Cap Equity: Vanguard Institutional Index

Mid Cap Equity: Carillon Scout Mid Cap

Small Cap Equity: Champlain Small Company

International Equity: American Funds EuroPacific Growth R6

 

* A prospectus is not available. The HRA VEBA Stable Value Fund is a custom portfolio (separate account) managed by Goldman Sachs Asset Management exclusively for HRA VEBA Trust. Unlike a mutual fund, it is not publicly traded and is available only to HRA VEBA Plan participants.

 

Investment Changes

To submit an investment change, log in and click Investments, or submit an Investment Change form. Forms are available after logging in or upon request from our customer care center.

 

You can change your investment allocation up to once per calendar month. You should consult with your personal financial advisor before making investment decisions. HRA VEBA Trust’s Board of Trustees and its agents do not give investment advice.

Rebalancing

Over time, some of your investment fund selections may grow more quickly than others; some may even lose value. This may cause your portfolio to become out of alignment with your original allocation percentages. Rebalancing periodically redistributes your entire account balance according to your most recent investment allocation on file. Rebalancing aids in maintaining the level of risk you are willing to take and helps you achieve the goals and objectives of your asset allocation strategy.

 

Rebalancing at the end of each calendar quarter or calendar year is optional if you choose to build your own portfolio under Option B: Do-it-yourself. To manage your rebalance setting, log in and click Investments.

 

The pre-mixed asset allocation portfolios under Option A: Choose a pre-mix are managed to stay on their respective target allocations. Each fund maintains its growth-or income-oriented asset mix; you never have to rebalance to keep your strategy on track.

Fund Lineup Selection and Monitoring

HRA VEBA Trust’s Board of Trustees meets regularly with its investment consultant, Hyas Group, LLC. Hyas Group is an independent investment consulting firm located in Portland, Oregon. Hyas Group provides professional advice and assists the Board of Trustees with selection, review, monitoring, and replacement (when warranted) of the various asset classes, individual fund options and managers, and pre-mixed portfolios. Hyas Group also determines and monitors appropriate market benchmarks and peer groups for each fund offering.

 

HRA VEBA Trust’s Board of Trustees has adopted an Investment Policy Statement (IPS). The purpose of this IPS is to define the Trust’s investment policies, guidelines, and objectives with respect to Trust assets, which are invested as directed by participants. HRA VEBA Trust’s IPS is designed to work in multiple types of market environments and not be reactive to what might be considered normal short-term events. The IPS is reviewed on a regular basis and is revised when necessary or appropriate.

 

Each selected fund is expected to consistently outperform its style benchmark and other funds within its respective asset class. An investment fund may be placed “on watch” and may ultimately be replaced for reasons such as underperforming its benchmark, experiencing personnel turnover or ownership changes, changes in investment philosophy, etc.

 
 
 
 
 
 
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