CCH Aggressive Lifestyle Portfolio

Transcription

1 CCH Aggressive Lifestyle Portfolio Lifestyle Portfolios are multi-asset type investment options that are intended to be managed in accordance with a plan participant s retirement time horizon, long-term return expectations and overall tolerance for risk of principal loss. Since the asset allocation decision is the most important factor in determining investment returns over time, these types of funds provide three packaged, diversified investment choices for those seeking assistance in making the asset allocation decision. Lifestyle Portfolios are constructed to provide different long-term investment return and risk characteristics that are determined by their underlying sub-funds. The sub-funds are active and passive U.S. Stock, International Stock and U.S. Bond Funds that are also available as stand-alone investment funds. Asset Class: Asset Allocation : Lifestyle FUND FACTS Inception Date: April 28, 2003 advisory fee for period ended December 31, 2017: 0.42% 12b-1 fee: 0.00% Other expenses: 0.04% Total fund annual expenses without waivers or reductions for period ended December 31, 2017: 0.46% Total waivers, recoupments, and reductions: -0.02% Net fund annual expenses after waivers or reductions for period ended December 31, 2017: 0.44% If offered through a retirement program, additional fees and expenses may be charged under that program. Turnover rate: 98% is interpreted by Voya using Fund Company and/or Morningstar category information. advisory fee reflects a weighted blend of fees charged by the underlying investment options within the Lifestyle Portfolio, based upon the percentage allocations designated by the City and County of Honolulu and detailed within the Strategy section. This Portfolio is not a registered investment company, and interests in the Portfolio have not been registered with the Securities and Exchange Commission. It is only available to participants in the City and County of Honolulu qualified retirement program. Only eligible participants in the plan may invest in the Portfolio. You can obtain copies of free prospectuses for the underlying funds which contain additional information on the charges and expenses for the funds at any time by calling your local Voya representative. Other fees and expenses may be charged under your retirement program. More information is included in the enrollment material. Each sub-fund description must accompany this Lifestyle Portfolio description. Objective The investment objective of the CCH Aggressive Lifestyle Portfolio is to provide long-term growth of capital with income as a minor consideration. Eighty-five percent (85%) of the total fund assets are allocated to equities and fifteen percent (15%) are allocated to fixed income securities. It is the most aggressive of the three Lifestyle Portfolios in terms of its potential for the greatest investment return as well as the greatest risk. It is most suitable for participants who are able to remain invested for ten or more years, or who are comfortable with the higher shortterm fluctuations that are characteristic of investing in equity markets. Strategy The strategy for the CCH Aggressive Lifestyle Portfolio is to invest in a combination of active and passive investments in the following proportions: ---15% in the PIMCO Total Return Fund Institutional Class, which seeks maximum total return, consistent with capital preservation and prudent investment management % in the Vanguard Institutional Index Fund Institutional Shares, which seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks % in American Funds The Growth Fund of America - Class R-6, which seeks to provide growth of capital. The Fund invests primarily in common stocks % in the AllianzGI NFJ Dividend Value Fund - Institutional Class, which seeks long term growth of capital and income. Invests at least 80 percent of its net assets (plus borrowings made for investment purposes) in equity securities of companies that pay or are expected to pay dividends % in the Principal MidCap Fund Institutional Class, which seeks longterm growth of capital. Normally invests at least 80 percent of its net assets in securities with medium market capitalizations. The Fund may invest in foreign securities % in the DFA U.S. Targeted Value Portfolio Institutional Class, which seeks long-term capital appreciation % in the American Funds EuroPacific Growth Fund - Class R-6, which seeks long-term growth of capital. Normally invests at least 80 percent of its assets in securities of issuers located in Europe and the Pacific Basin. The Fund also may hold cash, money market instruments and fixed income securities. Each sub-fund description contains more detailed information regarding the subfunds Advisers, Portfolio Managers, Objectives, Strategies and, and must accompany this Lifestyle Portfolio description. All equity (both U.S. and International) and fixed income investments exhibit certain risk characteristics that include the potential for loss of principal value. Generally, the probability of loss of principal is greater with investment funds that also provide the greatest potential for investment return. International stocks carry additional risks that relate to currency and political uncertainty. The risks of Lifestyle Portfolios are based on the proportionate risk characteristics of the underlying sub-funds described above. Each sub-fund description must accompany this Lifestyle Portfolio description (4/18) CN

2 PIMCO Total Return Fund - Institutional Class... Intermediate-Term Bond The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. The fund invests at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. It invests primarily in investment-grade debt securities, but may invest up to 20% of its total assets in high yield securities. It may invest up to 30% of its total assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. Volatility as of Composition as of % Net U.S. Stocks 0.0 Non-U.S. Stocks 0.0 Bonds Cash Other Total Top 10 Holdings as of Month Euribor Future Mar US 5 Year Note (CBT) Mar US 10 Year Note (CBT) Mar Fin Fut Euribor Ice (Wht) 06/18/ Pimco Fds Euro OAT Mar Fed Natl Mort Assc 4% IRS USD /20/17-10Y CME_Pay Pimco Fds IRS JPY /18/16-10Y CME_Pay Morningstar Fixed Income Style Box as of Avg Eff Duration 3.96 Avg Eff Maturity 5.35 Not Available Morningstar F-I Sectors as of Government Corporate 6.25 Securitized Municipal 0.24 fi Cash/Cash Equivalents ± Other Credit Analysis: % Bonds Not Available Risk Measures as of Port Avg Rel BC Aggr Rel Cat 3 Yr Std Dev Yr Beta Short Sale, Credit and Counterparty, Prepayment (Call), Currency, Emerging Markets, Foreign Securities, Loss of Money, Not FDIC Insured, Issuer, Interest Rate, Market/Market Volatility, Convertible Securities, Equity Securities, High-Yield Securities, Mortgage-Backed and Asset-Backed Securities, Restricted/Illiquid Securities, Derivatives, Leverage, Sovereign Debt, Management Gross Prosp Exp Ratio 0.51% of fund assets Net Prosp Exp Ratio 0.46% of fund assets Management Fee 0.46% Miscellaneous Fee(s) 0.05% Fund Inception Date Total Fund Assets ($mil) 72,043.0 Annual Turnover Ratio % Fund Family Name PIMCO Mihir Worah. Since Mark Kiesel. Since Pacific Management Co LLC Expense information in the table has been restated to reflect current Management Fees. "Other Expenses" include interest expense of 0.05%. Interest expense is borne by the Fund separately from the management fees paid to Pacific Management Company LLC ("PIMCO"). Excluding interest expense, Total Annual Fund Operating Expenses are 0.46% Morningstar, Inc., Morningstar Profiles All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may ß (4/18)

3 Vanguard Institutional Index Fund - Institutional Shares... Large Blend The investment seeks to track the performance of a benchmark index that measures the investment return of largecapitalization stocks. The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Volatility as of Risk Measures as of Port Avg Rel S&P 500 Rel Cat 3 Yr Std Dev Yr Beta Loss of Money, Not FDIC Insured, Market/Market Volatility, Equity Securities, Management Composition as of U.S. Stocks 99.0 Non-U.S. Stocks 0.8 Bonds 0.0 Cash 0.2 Other 0.0 Top 10 Holdings as of Apple Inc 3.78 Microsoft Corp 3.12 Amazon.com Inc 2.58 Facebook Inc A 1.70 JPMorgan Chase & Co Berkshire Hathaway Inc B 1.63 Johnson & Johnson 1.53 Exxon Mobil Corp 1.40 Alphabet Inc C 1.39 Alphabet Inc A 1.37 Gross Prosp Exp Ratio 0.04% of fund assets Net Prosp Exp Ratio 0.04% of fund assets Management Fee 0.04% Other Fee. Miscellaneous Fee(s) 0.00% Fund Inception Date Total Fund Assets ($mil) 220,310.8 Annual Turnover Ratio % 5.00 Fund Family Name Vanguard Morningstar Style Box as of Giant Large Medium 8.65 Small 0.00 Micro 0.00 Morningstar Equity Sectors as of h Cyclical r Basic Materials 2.69 t Consumer Cyclical y Financial Services u Real Estate 2.26 j Sensitive i Communication Services 3.31 o Energy 5.76 p Industrials a Technology k Defensive s Consumer Defensive 7.87 d Healthcare f Utilities 2.87 Donald Butler, CFA. Since Michelle Louie, CFA. Since Vanguard Group Inc 2018 Morningstar, Inc., Morningstar Profiles All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may ß (4/18)

4 AllianzGI NFJ Dividend Value Fund - Institutional Class... Large Value The investment seeks long-term growth of capital and income. The fund seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies that pay or are expected to pay dividends. Under normal conditions, it will invest primarily in common stocks of companies with market capitalizations greater than $3.5 billion. Past name(s) : Allianz NFJ Dividend Value Instl. Volatility as of Risk Measures as of Port Avg Rel S&P 500 Rel Cat 3 Yr Std Dev Yr Beta Credit and Counterparty, Currency, Emerging Markets, Foreign Securities, Loss of Money, Not FDIC Insured, High Portfolio Turnover, Issuer, Market/Market Volatility, Equity Securities, Restricted/Illiquid Securities, Management, Portfolio Diversification, Small Cap, Real Estate/REIT Sector Composition as of U.S. Stocks 95.9 Non-U.S. Stocks 4.1 Bonds 0.0 Cash 0.1 Other 0.0 Top 10 Holdings as of Royal Dutch Shell PLC ADR Class A 4.06 JPMorgan Chase & Co 4.02 United Technologies Corp 2.11 Bank of America Corporation 2.10 Pfizer Inc Abbott Laboratories 2.08 HP Inc 2.08 US Bancorp 2.08 Eaton Corp PLC 2.07 American Express Co 2.06 Gross Prosp Exp Ratio 0.74% of fund assets Net Prosp Exp Ratio 0.59% of fund assets Management Fee 0.73% Miscellaneous Fee(s) 0.01% Fund Inception Date Total Fund Assets ($mil) 2,083.9 Annual Turnover Ratio % Fund Family Name Allianz Funds Morningstar Style Box as of Giant Large Medium Small 0.00 Micro 0.00 Morningstar Equity Sectors as of h Cyclical r Basic Materials 2.00 t Consumer Cyclical 7.89 y Financial Services u Real Estate 0.00 j Sensitive i Communication Services 3.99 o Energy p Industrials a Technology k Defensive s Consumer Defensive 5.83 d Healthcare f Utilities 3.88 Management Fee Contractual Benno Fischer, CFA. Since Thomas Oliver, CPA. Since Allianz Global Investors U.S. LLC New York 2018 Morningstar, Inc., Morningstar Profiles All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may ß (4/18)

5 American Funds EuroPacific Growth Fund - Class R-6... Foreign Large Growth The investment seeks long-term growth of capital. The fund invests primarily in common stocks of issuers in Europe and the Pacific Basin that the investment adviser believes have the potential for growth. Growth stocks are stocks that the investment adviser believes have the potential for above-average capital appreciation. It normally will invest at least 80% of its net assets in securities of issuers in Europe and the Pacific Basin. The fund may invest a portion of its assets in common stocks and other securities of companies in emerging markets. Volatility as of Risk Measures as of Port Avg Rel S&P 500 Rel Cat 3 Yr Std Dev Yr Beta Emerging Markets, Foreign Securities, Long-Term Outlook and Projections, Loss of Money, Not FDIC Insured, Growth Investing, Active Management, Issuer, Market/Market Volatility Composition as of U.S. Stocks 1.7 Non-U.S. Stocks 90.4 Bonds 0.6 Cash 7.0 Other 0.2 Top 10 Holdings as of Samsung Electronics Co Ltd 3.25 AIA Group Ltd 2.62 British American Tobacco PLC 2.54 Taiwan Semiconductor Manufacturing Co Ltd 2.04 Alibaba Group Holding Ltd ADR Reliance Industries Ltd 2.02 Airbus SE 2.00 HDFC Bank Ltd 1.96 Tencent Holdings Ltd 1.87 SoftBank Group Corp 1.80 Morningstar Super Sectors as of h Cyclical j Sensitive k Defensive Gross Prosp Exp Ratio 0.50% of fund assets Net Prosp Exp Ratio 0.50% of fund assets Management Fee 0.42% Miscellaneous Fee(s) 0.08% Fund Inception Date Total Fund Assets ($mil) 166,669.8 Annual Turnover Ratio % Fund Family Name American Funds Morningstar Style Box as of Giant Large Medium 4.05 Small 0.17 Micro 0.00 Morningstar World Regions as of Americas 9.08 North America 5.72 Latin America 3.36 Greater Europe United Kingdom Europe Developed Europe Emerging 0.80 Africa/Middle East 1.60 Greater Asia Japan Australasia 0.39 Asia Developed Asia Emerging Mark Denning. Since Carl Kawaja. Since Capital Research and Management Company 2018 Morningstar, Inc., Morningstar Profiles All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may ß (4/18)

6 American Funds The Growth Fund of America - Class R-6... Large Growth The investment seeks growth of capital. The fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. It may invest up to 25% of its assets in securities of issuers domiciled outside the United States. The investment adviser uses a system of multiple portfolio managers in managing the fund's assets. Under this approach, the portfolio of the fund is divided into segments managed by individual managers who decide how their respective segments will be invested. Past name(s) : American Funds Growth Fund of Amer R6. Volatility as of Risk Measures as of Port Avg Rel S&P 500 Rel Cat 3 Yr Std Dev Yr Beta Foreign Securities, Long-Term Outlook and Projections, Loss of Money, Not FDIC Insured, Growth Investing, Active Management, Issuer, Market/Market Volatility Composition as of U.S. Stocks 75.3 Non-U.S. Stocks 15.0 Bonds 1.9 Cash 7.3 Other 0.5 Top 10 Holdings as of Amazon.com Inc 6.78 Microsoft Corp 2.83 UnitedHealth Group Inc 2.69 Broadcom Ltd 2.61 Netflix Inc Alphabet Inc C 2.51 The Home Depot Inc 2.00 Facebook Inc A 1.80 Alphabet Inc A 1.67 EOG Resources Inc 1.57 Gross Prosp Exp Ratio 0.33% of fund assets Net Prosp Exp Ratio 0.33% of fund assets Management Fee 0.27% Miscellaneous Fee(s) 0.06% Fund Inception Date Total Fund Assets ($mil) 180,814.5 Annual Turnover Ratio % Fund Family Name American Funds Morningstar Style Box as of Giant Large Medium Small 1.35 Micro 0.06 Morningstar Equity Sectors as of h Cyclical r Basic Materials 2.73 t Consumer Cyclical y Financial Services u Real Estate 0.31 j Sensitive i Communication Services 2.98 o Energy 7.93 p Industrials 7.33 a Technology k Defensive s Consumer Defensive 4.39 d Healthcare f Utilities 0.00 Donald O'Neal. Since Michael Kerr. Since Capital Research and Management Company 2018 Morningstar, Inc., Morningstar Profiles All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may ß (4/18)

7 DFA U.S. Targeted Value Portfolio - Institutional Class... Small Value The investment seeks long-term capital appreciation. The fund purchases a broad and diverse group of the readily marketable securities of U.S. small and mid cap companies that the determines to be value stocks. It may purchase or sell futures contracts and options on futures contracts for U.S. equity securities and indices, to adjust market exposure based on actual or expected cash inflows to or outflows from the fund. The advisor does not intend to sell futures contracts to establish short positions in individual securities or to use derivatives for purposes of speculation or leveraging investment returns. Past name(s) : DFA U.S. Large Cap Value. Volatility as of Risk Measures as of Port Avg Rel S&P 500 Rel Cat 3 Yr Std Dev Yr Beta Lending, Loss of Money, Not FDIC Insured, Value Investing, Market/Market Volatility, Equity Securities, Other, Derivatives, Small Cap Composition as of U.S. Stocks 97.8 Non-U.S. Stocks 1.4 Bonds 0.0 Cash 0.8 Other 0.0 Top 10 Holdings as of Kohl's Corp 0.91 HollyFrontier Corp 0.80 Arrow Electronics Inc 0.77 Toll Brothers Inc 0.73 People's United Financial Inc S+p500 Emini Fut Mar18 Xcme Reliance Steel & Aluminum Co 0.64 Avnet Inc 0.62 Macy's Inc 0.56 PacWest Bancorp 0.56 Gross Prosp Exp Ratio 0.37% of fund assets Net Prosp Exp Ratio 0.37% of fund assets Management Fee 0.35% Miscellaneous Fee(s) 0.02% Fund Inception Date Total Fund Assets ($mil) 10,748.6 Annual Turnover Ratio % Fund Family Name Dimensional Fund s Morningstar Style Box as of Giant 0.00 Large 0.50 Medium Small Micro 8.87 Morningstar Equity Sectors as of h Cyclical r Basic Materials 7.39 t Consumer Cyclical y Financial Services u Real Estate 0.48 j Sensitive i Communication Services 0.70 o Energy 9.18 p Industrials a Technology k Defensive 8.88 s Consumer Defensive 3.16 d Healthcare 5.10 f Utilities 0.62 Jed Fogdall. Since Joseph Chi. Since Dimensional Fund s LP 2018 Morningstar, Inc., Morningstar Profiles All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may ß (4/18)

8 Principal MidCap Fund - Institutional Class... Mid-Cap Growth The investment seeks long-term growth of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with medium market capitalizations at the time of purchase. For this fund, companies with medium market capitalizations are those with market capitalizations within the range of companies comprising the Russell Midcap Index (as of December 31, 2017, this range was between approximately $1.1 billion and $36.7 billion). The fund also invests in foreign securities. Past name(s) : Principal MidCap Blend Inst. Volatility as of Risk Measures as of Port Avg Rel S&P 500 Rel Cat 3 Yr Std Dev Yr Beta Currency, Foreign Securities, Loss of Money, Not FDIC Insured, Equity Securities, Shareholder Activity Composition as of U.S. Stocks 88.4 Non-U.S. Stocks 11.6 Bonds 0.0 Cash 0.0 Other 0.0 Top 10 Holdings as of Brookfield Asset Management Inc Class A 4.44 SBA Communications Corp 3.79 Aon PLC 3.59 Moody's Corporation 3.49 TransDigm Group Inc Markel Corp 3.34 O'Reilly Automotive Inc 2.79 CarMax Inc 2.57 Restaurant Brands International Inc 2.56 S&P Global Inc 2.55 Gross Prosp Exp Ratio 0.68% of fund assets Net Prosp Exp Ratio 0.68% of fund assets Management Fee 0.59% Miscellaneous Fee(s) 0.09% Fund Inception Date Total Fund Assets ($mil) 15,581.0 Annual Turnover Ratio % Fund Family Name Principal Funds Morningstar Style Box as of Giant 0.00 Large Medium Small 1.25 Micro 0.01 Morningstar Equity Sectors as of h Cyclical r Basic Materials 7.81 t Consumer Cyclical y Financial Services u Real Estate 9.73 j Sensitive i Communication Services 6.77 o Energy 0.00 p Industrials a Technology k Defensive 7.13 s Consumer Defensive 3.11 d Healthcare 1.68 f Utilities 2.34 K. William Nolin, CFA. Since Thomas Rozycki, CFA. Since Principal Global Investors, LLC Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.70%. It is expected that the expense limits will continue through the period ending February 28, 2019; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period Morningstar, Inc., Morningstar Profiles All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may ß (4/18)