For more information, join our Lunch and Learn Seminar on Tuesday, 1/27/15 at 12pm
retirement
investment
risk
allocation
glide
participants
path
For more information, join our Lunch and Learn Seminar on Tuesday, 1/27/15 at 12pm
retirement
investment
risk
allocation
glide
participants
path
PortfolioXpress® A One-Step Approach to Retirement Investing Plan Sponsor and Financial Intermediary Use Only Brighten Your Plan Outlook SM PortfolioXpress®: One-Step Asset Allocation Transamerica Retirement Solutions offers PortfolioXpress, a flexible asset allocation tool to assist participants with retirement investing and help plan sponsors improve their plan’s investment diversification and support. How does it work? • PortfolioXpress is designed to provide essential diversification through an automatic investment mix based on the specific investment choices included in your investment lineup. • It presents a series of well-diversified model portfolios based on a participant’s selected retirement year and risk preference, if applicable. • Once participants select PortfolioXpress, their accounts are automatically rebalanced each quarter, gradually adjusting the asset allocation towards a more conservative stance along a glide path which they have accepted. Model Construction • PortfolioXpress will use the investment choices within the different asset classes to create the model portfolios. • Target maturity investment choices, strategic allocation investment choices, balanced investment choices, and certain specialty investment choices will not be included. • Allocation strategies are all formula driven. PortfolioXpress® is a registered service mark of Transamerica Retirement Solutions Corporation. Choose your Investments Transamerica Retirement Solutions’ platform offers more than 300 investment choices from more than 50 investment managers. Plan sponsors and financial advisors will have access to this expansive platform of investment choices when determining their PortfolioXpress lineup. 2 Brighten Your Plan Outlook SM Years to Retirement Lifetime Glide Path Equity Fund Allocation Years to Retirement Retirement Glide Path Equity Fund Allocation 40 95% 45 90% 38 95% 40 90% 35 95% 35 90% 32 95% 32 85% 30 95% 30 80% 27 95% 27 75% 25 90% 25 70% 23 90% 22 65% 20 83% 20 60% 17 83% 17 55% 15 75% 15 50% 12 75% 12 45% 10 67% 10 40% 7 67% 5 35% 5 60% 0 30% 0 52% -5 25% -5 46% -10 20% -10 40% -15 15% -15 35% -20 10% -20 30% -25 10% -30 30% -30 10% PortfolioXpress Glide Path Comparison Eq ui ty F un d Al lo ca tio n Retirement Glide PathLifetime Glide Path 0 20 10 40 30 60 50 80 90 70 100% 35 30 25 20 15 10 5 0 -5 -10 -15 -20 Years to Retirement -30 The illustrations above are for education only, are hypothetical, and do not represent a specific asset allocation at any given time. Choose a Glide Path PortfolioXpress offers you a choice of two glide paths— Lifetime approach or Retirement—to fit the needs of your plan. • Lifetime glide path focuses on capital growth up to and during retirement to manage longevity risk, which is the risk that participants may outlive their assets. This approach recognizes that participants may live an additional 25 years or more after retirement and rely on their retirement savings to fund their living expenses. • Retirement glide path focuses on capital preservation up to and during retirement to manage market and sequence-of-returns risks. It recognizes that these risks can have a profound, negative impact on participants, especially those closest to or in retirement, and therefore reduces equity exposure more quickly over time. 3 Lifetime Glide Path with Risk Preference Eq ui ty P er ce nt ag e Al lo ca tio n (% ) Fixed Income AllocationsEquity Allocations 0 10 20 30 40 50 60 70 80 90 100 Years to Retirement Aggressive 3335 27 20 1012 07 -20-10 -25 -3530 -151825 22 15 5 2 -5 Moderate 40 323538 25 17 1215 -5 -105 -20-15 -302330 27 20 10 7 0 50 4548 35 3342 40 37 2530 27 20 17 1522 010 5 -10-5 -20Conservative The illustrations above are for education only, are hypothetical, and do not represent a specific asset allocation at any given time. Offer a Risk Preference Option PortfolioXpress also offers participants a risk preference feature—should you choose to make it available. This capability gives participants the opportunity to tailor their investment strategy based on both their time horizon and their attitude towards risk by selecting one of three different risk preferences: conservative, moderate, or aggressive. Risk Preference Years to Retirement Conservative 50 48 45 42 40 37 35 33 30 27 25 22 20 17 15 10 5 0 -5 -10 -20 Moderate 40 38 35 32 30 27 25 23 20 17 15 12 10 7 5 0 -5 -10 -15 -20 -30 Aggressive 35 33 30 27 25 22 20 18 15 12 10 7 5 2 0 -5 -10 -15 -20 -25 -35 Short Term Bonds / Stable / MMkt 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 2% 2% 3% 3% 5% 8% 9% 11% 13% 14% 14% Interm/Long Term / Inflation Protected Bonds 3% 3% 3% 3% 3% 3% 7% 7% 13% 13% 19% 19% 25% 25% 29% 34% 38% 41% 44% 48% 48% Aggressive Bonds 2% 2% 2% 2% 2% 2% 3% 3% 4% 4% 4% 4% 5% 5% 6% 6% 7% 8% 8% 8% 8% Total 5% 5% 5% 5% 5% 5% 10% 10% 17% 17% 25% 25% 33% 33% 40% 48% 54% 60% 65% 70% 70% Large Cap Stocks 44% 44% 44% 44% 44% 44% 42% 42% 39% 39% 36% 36% 33% 33% 30% 27% 24% 22% 20% 17% 17% Small/Mid Cap Stocks / Real Estate 25% 25% 25% 25% 25% 25% 24% 24% 22% 22% 20% 20% 17% 17% 15% 12% 11% 9% 7% 6% 6% International / Emerging Markets Stocks 26% 26% 26% 26% 26% 26% 24% 24% 22% 22% 19% 19% 17% 17% 15% 13% 11% 9% 8% 7% 7% Total 95% 95% 95% 95% 95% 95% 90% 90% 83% 83% 75% 75% 67% 67% 60% 52% 46% 40% 35% 30% 30% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Lifetime PortfolioXpress Asset Class Allocations with Risk Preference 4 Brighten Your Plan Outlook SM Retirement Glide Path with Risk Preference Eq ui ty P er ce nt ag e Al lo ca tio n (% ) Years to Retirement Fixed Income AllocationsEquity Allocations 0 10 20 30 40 50 60 70 80 90 100 Aggressive 3040 35 2527 2022 1517 012 -20-5 -30-25 -3510 7 -10 -155 Moderate 45 40 3235 2730 2225 1720 05 -20-15 -30-2515 12 -5 -1010 55 50 4245 3740 3235 27 25 2230 10 5 01520 -10-5 -20-15Conservative The illustrations above are for education only, are hypothetical, and do not represent a specific asset allocation at any given time. Risk Preference Years to Retirement Conservative 55 50 45 42 40 37 35 32 30 27 25 22 20 15 10 5 0 -5 -10 -15 -20 Moderate 45 40 35 32 30 27 25 22 20 17 15 12 10 5 0 -5 -10 -15 -20 -25 -30 Aggressive 40 35 30 27 25 22 20 17 15 12 10 7 5 0 -5 -10 -15 -20 -25 -30 -35 Short Term Bonds / Stable / MMkt 3% 3% 3% 4% 6% 7% 9% 11% 12% 14% 15% 17% 18% 20% 21% 22% 24% 25% 27% 27% 27% Interm/Long Term / Inflation Protected Bonds 6% 6% 6% 10% 12% 15% 18% 21% 24% 26% 30% 32% 36% 38% 42% 45% 48% 51% 54% 54% 54% Aggressive Bonds 1% 1% 1% 1% 2% 3% 3% 3% 4% 5% 5% 6% 6% 7% 7% 8% 8% 9% 9% 9% 9% Total 10% 10% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 90% 90% Large Cap Stocks 64% 64% 64% 61% 58% 54% 50% 47% 43% 40% 35% 32% 29% 25% 21% 18% 14% 11% 7% 7% 7% Small/Mid Cap Stocks / Real Estate 12% 12% 12% 11% 10% 10% 9% 9% 8% 7% 7% 6% 5% 5% 4% 3% 3% 2% 1% 1% 1% International / Emerging Markets Stocks 14% 14% 14% 13% 12% 11% 11% 9% 9% 8% 8% 7% 6% 5% 5% 4% 3% 2% 2% 2% 2% Total 90% 90% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 10% 10% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Retirement PortfolioXpress Asset Class Allocations with Risk Preference 5 * If the investment choice change request is determined to be significant, there is additional information Transamerica will collect from you and certain communications to participants will be required. **Transamerica reserves the right to charge for the service in the future. PortfolioXpress® is a registered service mark of Transamerica Retirement Solutions Corporation. PortfolioXpress® is available to plans that have online enrollment and currently at no additional cost, although the fees of the underlying investment choices continue to apply. Transamerica may charge for the service in the future. PortfolioXpress® is a service which presents a series of asset allocation models up to and through a designated retirement year. The participant is solely responsible for selecting the retirement year and risk preference (if applicable). In implementing the service, the participant agrees to each of the asset allocation mixes, and each of the automated rebalancing transactions that will take place over time within the account as the participant approaches a selected retirement year. If participants sign up, they should carefully review the service agreement for details on any applicable fees and other terms and conditions that may apply. PortfolioXpress® is designed as investment education. Transamerica does not provide investment advice. Retirement date portfolios are subject to the same risks as the underlying asset classes in which they invest. The higher the portfolio’s allocation to stocks, generally the greater the risk. The principal value of the portfolio is never guaranteed, including at and after the target date. Diversification does not guarantee against loss, especially in a falling market. Benefits to Plan Sponsors: • PortfolioXpress allocates assets among the investment options you and your advisor are already selecting and monitoring for the plan’s lineup, giving you control of and flexibility to change the underlying pieces.* • The service allows you to choose a glide path that reflects the characteristics of your participant population and your plan goals, and to offer a risk preference feature. • The standard service is currently available at no additional cost, although the fees of the underlying investment choices continue to apply.** • Sponsors can offer PortfolioXpress as a Qualified Default Investment Alternative (QDIA) if the sponsor or advisor assumes fiduciary responsibility. 6 Brighten Your Plan Outlook SM Benefits to Participants: • PortfolioXpress provides critical investment education and support to those looking for help with retirement investing. • This easy-to-use tool automatically diversifies investments among the plan’s available investment options based on the participant’s selected retirement year and risk preference. • It presents a complete strategy that is automatically rebalanced and designed to reduce risk exposure over time. • It enables participants to adjust their glide path based on their risk preferences—conservative, moderate, or aggressive—if you choose to offer this flexibility. 7 440 Mamaroneck Avenue, Harrison, NY 10528 914-627-3000 | 800-770-6797 | trsretire.com Brighten Your Plan Outlook SM 6253-PS_B (05/14) © 2014 Transamerica Retirement Solutions Corporation Transamerica Retirement Solutions Corporation is an affiliate of Transamerica Investors Securities Corporation (TISC). Securities are offered by TISC, 440 Mamaroneck Avenue, Harrison, NY 10528.