HE CATHOLIC RETIREMENT SOLUTION IS HERE

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1 TH HE CATHOLIC RETIREMENT SOLUTION IS HERE IFC TARGET DATE AND RISK-BASED COLLECTIVE INVESTMENT FUNDS A division of Index Fund Advisors, Inc. IFC COLLECTIVE INVESTMENT FUNDS 9

2 About Investing for Catholics Investing for Catholics (IFC) is committed solving the unique needs of Catholic retirement plan sponsors and participants alike through fiduciary protection, excellent participant experiences and expected returns. These essential elements of a well-run plan are designed meet participant objectives, while incorporating the Catholic values intrinsic of the plan sponsor organization. As a division of Index Fund Advisors, Inc. (IFA), a fee-only registered investment advisor with over 2,200 clients and almost $3.24 billion in assets under management (as of March. 31, 2017), IFC was launched in 2009 bring IFA s innovative thought leadership and diversified approach prudent investing in Catholic organizations. Today, IFC s socially responsible strategies have been embraced and implemented by (arch) dioceses and religious orders throughout the country. The IFC Target Date and Risk-Based Funds are available for investment by eligible qualified retirement plan trusts only, including non-erisa 403(b) church plans. The Funds are collective investment funds (CIFs) created by the Hand Composite Employee Benefit Trust and sponsored by Hand Benefits & Trust Company, a BPAS company, that invests in the strategies of Investing for Catholics which serves as the sub- advisor the CIFs. The CIF is not a mutual fund. Its shares are not deposits of Hand Benefits & Trust Company, a BPAS company, or Investing for Catholics, a division of Index Fund Advisors, Inc., and are not insured by the Federal Deposit Insurance Corporation or any other agency. The CIF is a security which has not been registered under the Securities Act of 1933 and is exempt from investment company registration under the Investment Company Act of A division of Index Fund Advisors, Inc. V Index Fund Advisors, Inc. All Rights Reserved

3 C ATHOLIC WITHOUT COMPROMISE Faith-based investments Financial science Fiduciary prudence Finally. Investing for Catholics proudly announces its latest innovation in the Catholic retirement plan community: IFC Target Date and Risk-Based Collective Investment Funds. The CIFs are designed specifically meet the needs of Catholic retirement plans and plan sponsors by assisting plan participants in reaching their retirement goals through low-cost, diversified and risk-appropriate investments without compromising faith or expected returns. These single-fund investment solutions take the guesswork out of building and managing long-term investment strategies. Experienced & Innovative IFC, in collaboration with Hand Benefits & Trust, a BPAS Company, has developed 13 daily valued CIFs (ten Target Date and three Risk-Based), based on IFC s prudent and socially responsible investment strategies. Hand Benefits & Trust, a company founded in 1963, and a leading provider of CIFs, serves as the trustee and sponsor the CIFs. The funds went live on January 1, 2016, and are accessible Catholic organizations retirement plans through most recordkeeping platforms with information and quarterly holdings and monthly performance returns available via Morningstar. The IFC CIFs are an advancement in Catholic Retirement. They represent prudence, simplicity and fiduciary best practices. The CIFs incorporate time-tested investment strategies combined with a comprehensive social screening process, developed lead Catholic plan participants enhanced investment outcomes. The underlying investment vehicles IFC selects for its CIFs are built in consideration of Modern Portfolio Theory and the work of Nobel Prize winner Harry Markowitz, as well as the Efficient Market Hypothesis and the Multi Facr Model, which were both developed by Nobel Prize winner Eugene Fama. IFC currently selects socially screened sck index funds from the highly regarded Dimensional Fund Advisors, a leading mutual fund manager that provides a diversified, low-cost approach the world markets. IFC COLLECTIVE INVESTMENT FUNDS 1

4 I FC TARGET DATE FUNDS IFC s ten Target Date Funds invest in a blend of index-style mutual funds that collectively deliver a diversified and consistently age-appropriate exposure global sck and bond markets with a glide path, a buy and hold formula that creates an adjusting asset allocation become more conservative as the fund moves closer the targeted retirement date. This glide path incorporates IFC s time-tested strategy alongside the understanding of long-term expected risk and return as well as the need fuel long-term growth. The current fund offerings target invesr retirement dates in five-year increments, ranging from , with the ultimate fund landing point arriving at a static mix of 40% sck funds/60% bond funds within approximately five of retirement date. Participants can simply be matched and mapped in the Target Date Fund that most closely matches the year of retirement age, most normally at age 65 or 67. Target Date Fund Glide Path Guide % Sck Funds % Bond Funds Retirement Landing Point 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Target Date Suitable Age < >70 Allocation Years Retirement 41 or more Allocation 92/8 92/8 92/8 Sck/Bond Funds (%) (rounded) 92/8 92/8 92/ /8 90/ /11 87/ /14 83/ /18 75/ /26 66/34 5 or less 64/36 57/43 Newly Retired 55/45 43/57 Retired 40/60 2 IFC COLLECTIVE INVESTMENT FUNDS

5 I FC RISK-BASED FUNDS The three IFC Risk-Based Funds are pre-built, designed and managed maintain an established level of diversified sck and bond index-style mutual funds for three distinct asset allocations: Aggressive (80% sck funds/20% bond funds), Moderate (60% sck funds/40% bond funds) and Conservative / Balanced Retirement (40% sck funds/60% bond funds). These funds provide an easy and excellent alternative for defined benefit plans or do-it-yourself participants. % Sck Funds % Bond Funds IFC Aggressive Fund IFC Moderate Fund IFC Balanced Retirement Fund 20% 80% 40% 60% 60% 40% IFC COLLECTIVE INVESTMENT FUNDS 3

6 I FC ADVANTAGE: INDEX FUNDS, FINANCIAL SCIENCE & CATHOLIC VALUES Catholic Values: The IFC Target Date and Risk-Based Funds are built with low-cost index-style mutual funds that are screened closely align with the United States Conference of Catholic Bishops (USCCB) guidelines for socially responsible investing. The funds are screened exclude companies that provide services or derive revenues from abortion, the manufacturing of abortifacients, contraceptives, or make use of embryonic or fetal stem cells for product or research. Other screens include weapons of mass destruction, gambling, pornography, human labor infractions, and more. For a complete description of the funds screens, please see the information provided in the fund fact sheets. Easy: A single fund strategy makes the IFC collective investment funds easy--use and a one-step solution for any retirement plan. Low-Cost: The IFC collective investment funds are built with index funds, making them one of the lowest investment cost options available. Smart: The professionally managed collective investment funds incorporate Nobel Prize-winning research of the Fama/French Multifacr Model for expected returns and time-proven strategies for maximizing expected returns at a particular level of risk. The Multi-Facr Model identifies sources of risk and return and contributes the design of globally diversified portfolios, with a focus on exposures small, value and profitability facrs for scks, and term and default facrs for bonds. Prudent: IFC s collective investment funds are built in accordance with fiduciary best practices for diversification and fee transparency, while keeping costs low. Such high standards make the funds an excellent choice for Catholic retirement plans seeking uphold the utmost standard of care, while affording themselves a high level of fiduciary protection. Promote Good Invesr Behavior: Plan participants who are invested in professionally managed, single fund solutions are far less likely take action or worry during market volatility. These holistic one-step solutions make it easy for participants rely on investing science instead of making investment decisions based on emotions. 4 IFC COLLECTIVE INVESTMENT FUNDS

7 C ATHOLIC WITHOUT COMPROMISE A division of Index Fund Advisors, Inc Von Karman Avenue Suite 150 Irvine, CA Toll Free: Phone: IFC COLLECTIVE INVESTMENT FUNDS 5

8 A division of Index Fund Advisors, Inc Von Karman Avenue Suite 150 Irvine, CA Toll Free: Phone: IFC COLLECTIVE INVESTMENT FUNDS