Savings Plan -- Investment Option Summary

Search Retiree Book of Benefits:

Site Map
Glossary
Employee
Book of Benefits

OneCall: 1-877-861-2255

Home > Savings Plan > Investment Option Summary

Investment Option Summary

Transaction Processing

The transactions you request through the information line will ordinarily be processed within the times specified in this web site. However, in certain circumstances, you may experience difficulty in making your request, or your transaction may be delayed. Please remember that the information line is no more than a telephone line.

Telephone service can be interrupted from time to time and, further, a high volume of telephone calls can overload the system and prevent calls from being answered. Transactions may also be delayed if State Street Bank and Trust determines that the delay is necessary — for example, if market conditions require a daily volume limit on trades in an asset, there is suspension in trading of an asset or in the event of a major market or systems disruption. You will be informed if a transaction is not completed on the day requested, and the transaction will be completed as soon as administratively possible thereafter, based on the unit prices in effect when the transaction is completed.

Reward vs. Risk

One way to think of the gain or loss potential of an investment is to think of the potential for reward or the level of risk it offers.

Generally, investments with more risk to principal have the potential to yield higher returns over a longer period of time than investments with less risk.

No one can tell you what balance of reward vs. risk is right for you. It is up to you to decide. When making your decision, however, ask yourself the following questions:

When will you need the money in your accounts?
If you are a long way from needing your retirement fund and investing for the long term, you may want to consider more aggressive investment choices with higher risks. But you must be prepared to weather the ups and downs of the market and possible loss of your investment. However, stability in your investments may be more important if you have a shorter time horizon.

What are your investment goals?
You may be concerned about preserving your account balances while earning a steady rate of return. Or, you may want investments that offer the prospect of substantial growth. Keep in mind that your investment objectives will change depending on how soon you need your retirement funds and how close you are to meeting your financial goals.

Are your investments sufficiently diversified?
Investment professionals seek to reduce risk by diversifying their investments — not putting too many eggs in one basket. They may diversify over different types of investments, such as stocks and bonds, and within types of investments by buying stocks and bonds of a number of different companies. Since most of the funds offered under the savings program are each made up of several types of investments, there is a basic level of diversification within most funds. However, you can further diversify by investing in several different funds to take advantage of the different investment objectives and strategies offered by the funds.

Investment Options Summary Table

Fund Name	Investment Objectives	Investment Strategy	Fund Holdings	Factors Affecting Performance	Fund Manager
Stable Value Fund (Commingled Fund) (most conservative)	Maximum safety of principal, stable income and liquidity.	To invest in investment contracts and high quality money market instruments.	High quality investment contracts issued by insurance companies, banks, or other financial institutions High quality short-term money market instruments to provide additional diversification and liquidity.	Lower risk of principal; however, higher inflation risk, because its expected rate of return is usually lower than the other options and may not outpace inflation.	State Street Bank and Trust Company
Intermediate-Term Investment Grade Bond Fund MBFIX (more conservative)	Preservation of capital with attractive total returns.	To invest in undervalued investment grade securities in the fixed income market, with an average portfolio maturity ranging from 3 to 7 years.	U.S. Treasury bonds U.S. Agency bonds Mortgage-backed bonds Corporate bonds Small amount of preferred stock.	Inflation expectations and interest rate changes affect performance. Long-term decisions made by the fund manager and the nature of the fund's investments should be expected to provide higher returns and higher risks as compared to an intermediate-term bond portfolio.	Wells Fargo Montgomery Asset Management
Long-Term Investment Grade Bond Fund PGOVX (conservative)	Preservation of capital with attractive total returns.	To invest in undervalued investment grade securities in the fixed income market, with an average portfolio maturity usually greater than 10 years.	U.S. Treasury bonds U.S. Agency bonds Mortgage-backed bonds Corporate bonds Small amount of preferred stock.	Inflation expectations and interest rate changes affect performance. Long-term decisions made by the fund manager and the nature of the fund's investments should be expected to provide higher returns and higher risks as compared to the Stable Value Fund.	PIMCO
American Balanced Fund ABALX (conservative to moderate)	Conservation of capital, current income and long-term capital growth.	To invest in a diversified portfolio of stocks, bonds, and other fixed income securities, responding to market changes by shifting its mix.	Stocks in key sectors of the U.S. economy Small amount of non-U.S. securities High quality corporate and government bonds.	Subject to stock market risk and volatility. Bond values tend to vary inversely with interest rates. Long-term decisions made by the fund manager and the nature of the fund's investments may provide higher returns (and higher risks) as compared to a long-term bond portfolio.	Capital Research and Management Company (CRMC)
Indexed Equity Fund (Commingled Fund) (moderate)	Replication of the Standard & Poor's 500 Index investment performance.	To fully replicate the Standard & Poor's 500 Index portfolio through passive management, trading only when there is a change to the index. Offers exposure to approximately 70% of the U.S. equity market.	Primarily large U.S. stocks in identical proportions to the Index Small amount of money market securities to maintain liquidity.	As a fund investing primarily in common stocks, the fund is subject to market risk — the possibility that common stock prices will decline over short, or even extended, periods.	State Street Bank and Trust Company
The Investment Company of America AIVSX (moderate to aggressive)	Long-term growth of capital and income, with an emphasis on future dividends and capital appreciation.	To invest in "blue-chip" companies with proven track records of rising earnings and dividends.	Stocks and bonds of primarily large, well-known U.S. companies May include non-U.S. securities.	Stocks are subject to market risk. Bond values tend to vary inversely with interest rates. Long-term decisions made by the fund manager and the nature of the fund's investments may provide higher returns (and higher risks) as compared to a balanced portfolio.	Capital Research and Management Company (CRMC)
Vanguard Windsor Fund VWNEX (aggressive)	Long-term capital growth and income, as well as a reasonable level of current income.	To invest primarily in common stocks that are currently considered out of favor or undervalued — a "contrarian" approach, which can result in concentrated positions in several industries and companies.	U.S. common stocks Some fixed income securities and other equities such as convertible preferred stocks.	Stocks are subject to market risk. Long-term decisions made by the fund manager and the nature of the fund's investments may provide higher returns (and higher risks) as compared to a balanced portfolio. Due to the contrarian approach, there is the potential that the common stock prices will decline over short or even extended periods.	Wellington Management Company of Boston
The Growth Fund of America AGTHX (agressive)	Long-term capital growth	To invest in a wide range of companies that appear to offer superior opportunities for long-term growth.	Primarily U.S. securities May include foreign securities May invest up to 10% in debt securities rated below investment grade.	Subject to stock market risk and volatility; there is the potential that the common stock prices will decline over short or even extended periods.	Capital Research and Management Company (CRMC)
New Perspective Fund ANWPX (more aggressive)	Long-term capital growth.	To invest in large established companies in world markets, focusing on changing global trade patterns and related growth opportunities.	Stocks of companies in major world markets, including the U.S.	Subject to global market risks, such as exchange rates, currency fluctuations, and political and social instability.	Capital Research and Management Company (CRMC)
Small Cap Value Fund GSSIX (more aggressive)	Long-term growth of capital	The fund will invest at least 80% of its assets in securities of small companies which the managers feel are undervalued or undiscovered in the marketplace. These companies will have market capitalizations which are similar to the Russell 2000 Index, within the range of $10 million to $2 billion.	Common stock issued by small capitalization companies.	The securities of small capitalization companies generally involve greater risks than those associated with larger, more established companies, and may be subject to erratic price movements. Securities of such companies may lack sufficient liquidity to enable the fund managers to effect sales at an advantageous time or without a substantial drop in price.	Goldman Sachs Asset Management
Small Cap Growth Fund MGSEX (more aggressive)	Seeks to achieve long-term capital appreciation through a diversified portfolio of equity securities of small- and medium-capitalization companies.	Under normal market conditions, the fund invests at least 65% of its total assets in equity securities of U.S. companies, such as common and preferred stock. The fund generally invests in small and medium-sized companies, that is, companies with capitalization of $1.5 billion or less. The fund may retain securities that it already has purchased even if the company outgrows the fund�s capitalization limitations.	U.S. common and preferred stock issued by small and medium-sized companies.	In addition to risk factors associated with investing in the stock market in general, small and mid-sized companies trade less frequently and in lower volume than the shares of larger companies. This could result in significantly higher volatility in their share price over short and extended periods of time. Small and mid-sized companies may also have more business risk due to limited product lines and less access to financial capital.	The Managers Funds, LLC
International Growth Fund AEPGX (more aggressive)	Seeks to provide long-term growth of capital by investing in companies based outside the United States.	Invests in securities of strong, growing companies based chiefly in Europe and the Pacific Basin, ranging from small firms to large corporations. The fund can only own securities of issuers domiciled outside the United States, except a nominal portion that, for liquidity purposes, may be held in U.S. dollars and/or equivalents.	Stocks of large and medium-sized international companies.	Subject to global market risks, such as exchange rates, currency fluctuations, and political and social instability.	Capital Research and Management Company (CRMC)

Last updated: Thursday April 21 2005

BWXT Y-12 | Disclaimer

Comments | Contacts | SECURITY & PRIVACY NOTICE