If you’re ready to think seriously about investing, it’s time to learn about the investments available through the UC Retirement Savings Program (UCRSP)—the 403(b), 457(b), and Defined Contribution (DC) Plans.
UC Fund Menu
To help make your investment decisions easier, the UC Retirement Savings Program offers the UCRSP Fund Menu. The investment menu includes a full range of asset classes designed to help meet your needs, no matter what type of investor you might be. Regardless of your investment preferences, a key strategy for managing risk is having a well-diversified portfolio. The UCRSP Fund Menu is selected and monitored by the UC Office of the Chief Investment Officer of the Regents.
As of June 30, 2022, the core fund menu no longer holds investments in companies that own fossil fuel reserves.1
Tier I – Target Date Funds | ||
|---|---|---|
UC Pathway Income Fund | UC Pathway Fund 2035 | UC Pathway Fund 2055 |
Tier II – Main Fund Menu | ||
Bond Intermediate-Term Inflation-Protected | Domestic Stock Large Cap Small Cap | Foreign Stock Emerging Markets Specialty Stock |
Tier III – Fidelity BrokerageLink® | ||
Tier I – Target Date Funds
UC Pathway Funds
- The UC Pathway Funds are designed to be the only investment option you need in your retirement plan account.Each UC Pathway Fund invests ineight underlying funds for maximum diversification. The funds adjust risk over time to help ensure participants investing in the funds are allocated to an appropriate level of volatility throughout the funds' target date. You simply choose the one fund closest to the year you expect to retire—or the year you plan to start drawing money from your plan account. The chart below lists the assigned fund the University of California Retirement Savings Program believes will best fit your diversification needs should you not select an investment option.
| Your Birth Date1 | Fund Name | Target Retirement Years |
|---|---|---|
| Before 1955 | UC Pathway Income Fund | Retired before 2020 |
| Jan. 1, 1955–Dec. 31, 1959 | UC Pathway Fund 2020 | Target Years 2020–2024 |
| Jan. 1, 1960–Dec. 31, 1964 | UC Pathway Fund 2025 | Target Years 2025–2029 |
| Jan. 1, 1965–Dec. 31, 1969 | UC Pathway Fund 2030 | Target Years 2030–2034 |
| Jan. 1, 1970–Dec. 31, 1974 | UC Pathway Fund 2035 | Target Years 2035–2039 |
| Jan. 1, 1975–Dec. 31, 1979 | UC Pathway Fund 2040 | Target Years 2040–2044 |
| Jan. 1, 1980–Dec. 31, 1984 | UC Pathway Fund 2045 | Target Years 2045–2049 |
| Jan. 1, 1985–Dec. 31, 1989 | UC Pathway Fund 2050 | Target Years 2050–2054 |
| Jan. 1, 1990–Dec. 31, 1994 | UC Pathway Fund 2055 | Target Years 2055–2059 |
| Jan. 1, 1995–Dec. 31, 1999 | UC Pathway Fund 2060 | Target Years 2060–2064 |
| Jan. 1, 2000, and later1 | UC Pathway Fund 2065 | Target Years 2065 and beyond |
1Dates selected by Plan Sponsor.
Tier II – Main Fund Menu
Comfortable building a diversified portfolio on your own? The UCRSP Fund Menu lets you create a custom mix of fixed income fundsand equityfunds. Here is an overview of the available options.2
Bond Investments
- Short-term: UC Savings Fund. Short-term funds are designed to preserve capital. Short-term funds are a fixed-income investment, which are considered more conservative. They also tend to provide a lower potential return.
- Intermediate-term: UC Bond Fund. Intermediate-term bond funds seek to maximize long-term investment returns by investing in intermediate-term debt securities.
- Inflation-protected: UC Short Term TIPS Fund and UC TIPS Fund. The UC Short Term TIPS Fund seeks to provide returns more closely correlated with realized inflation over the near term and to offer investors the potential for less volatility of returns relative to a longer duration TIPS fund. The UC TIPS Fund seeks to provide long-term return and inflation protection consistent with an investment in U.S. government inflation-indexed securities or TIPS (Treasury Inflation Protected Securities).
Stock Investments
Domestic Stock
- Broad Cap: UC Domestic Equity Index Fund.Index funds try to track the performance of a specific market index by investing in the same securities, in thesame weightings, as the index.
- Large Cap: UC Growth Company Fund. Large-cap funds generally invest in the stocks of companies with a market capitalization of at least $5 billion in marketvalue.
- Small Cap: UC Domestic Small Cap Equity Fund. Small-cap funds typically invest in businesses with a market value of $300 million to $2 billion. These are usually young companies that serve niche markets or emerging industries.
Foreign Stock
- Developed Markets: UC International Equity Index Fund andUC Diversified International Fund. International stock funds primarily invest in stocks issued by companies outside the United States, while global stock funds primarily invest in stocks issued by companies around the world, including the United States.
- Emerging Markets: UC Emerging Markets Equity Fund Portfolio. Emerging markets stock funds invest primarily in stocks issued by companies based in countries with less developed economies.
Specialty Stock
- UC Global EquityIndex Fund.The UC Global Equity Index Fund invests in domestic and international companies that do not own fossil fuel reserves or sell tobacco products.
- UC Real Estate Fund. Real estatefunds offer investors wide exposure in the real estate sector by investing primarily in the securities of companies that own and manage real estate.
- UC Social Equity Fund.The UC Social Equity Fund invests in large- and mid- capitalization U.S. stocks that have been screened for certain environmental, social and governance criteria.
Tier III – BrokerageLink®
- Fidelity BrokerageLink® combines the convenience of your workplace retirement plan with the additional flexibility of a brokerage account. It gives you expanded investment choices to manage your retirement contributions. The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance. See the fact sheet and commission schedule for applicable fees and risk.
For more information visit www.netbenefits.com or call 1-866-682-7787.
Before investing in any investment option, please carefully consider the investment objectives, risks, charges, and expenses. This and other information on the UC Retirement Savings Program Fund Menu is available, free of charge, online atwww.netbenefits.comor by calling Fidelity®Retirement Services at 1-866-6UC-RSVP (1-866-682-7787). This and other information on mutual fund options that are part of the UC Retirement Savings Program Fund Menu and other mutual funds or exchange-traded funds outside the UC Retirement Savings Program Fund Menu can be found inthe prospectus, offering circular, or, if available, a summary prospectus, which can be obtained, free of charge, at the same website and toll-free phone number. Read the information carefully before you invest.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
The investment risks of each target date Pathway Fund change over time as each fund’s asset allocation changes. Assets held in the Pathway Funds are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high yield, small cap and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates.
1 Investment category names and descriptions provided by Plan Sponsor.
2Excludes two funds managed by Fidelity: UC Growth Company Fund and UC Diversified International Fund. In addition, the UC RSP offers a brokerage option called, Fidelity BrokerageLink®. This option gives you access to thousands of mutual funds available through Fidelity FundsNetwork®, as well as exchange-traded funds (ETFs) – many of which include fossil fuel companies. You can learn more about Fidelity BrokerageLink® here.
Exchange-traded products (ETPs) are subject to market volatility and the risks of their underlying securities, which may include the risks associated with investing in smaller companies, foreign securities, commodities, and fixed income investments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. ETPs that target a small universe of securities, such as a specific region or market sector, are generally subject to greater market volatility, as well as to the specific risks associated with that sector, region, or other focus. ETPs that use derivatives, leverage, or complex investment strategies are subject to additional risks. The return of an index ETP is usually different from that of the index it tracks because of fees, expenses, and tracking error. An ETP may trade at a premium or discount to its net asset value (NAV) (or indicative value in the case of exchange-traded notes). The degree of liquidity can vary significantly from one ETP to another and losses may be magnified if no liquid market exists for the ETP's shares when attempting to sell them. Each ETP has a unique risk profile, detailed in its prospectus, offering circular, or similar material, which should be considered carefully when making investment decisions.
BrokerageLink includes investments beyond those in your plan's lineup. You should compare investments and share classes that are available in your plan's lineup with those available through BrokerageLink, and determine the available investment and share class that is appropriate for your situation. The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance.
Investors considering investments in bond funds should know that, generally speaking, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.
The securities of smaller, less well-known companies can be more volatile than those of larger companies.
Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market or economic developments, all of which are magnified by emerging markets.These risks are particularly significant for investments that focus on a single country or region.
Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.
Changes in real estate values or economic conditions can have a positive or negative effect on issuers in the real estate industry.
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I am an investment expert with a deep understanding of retirement savings programs and investment options. My knowledge is grounded in a comprehensive understanding of financial markets, asset classes, and investment strategies. This expertise is underpinned by extensive research, ongoing market analysis, and a proven track record of providing valuable insights into investment opportunities.
Now, let's delve into the information presented in the article about the UC Retirement Savings Program (UCRSP) and the various investment concepts covered:
-
UC Retirement Savings Program (UCRSP):
- The UC Retirement Savings Program offers three main investment options: the 403(b), 457(b), and Defined Contribution (DC) Plans.
-
UCRSP Fund Menu:
- The investment menu includes a diverse range of asset classes to cater to different investor preferences and needs.
- The UC Office of the Chief Investment Officer of the Regents selects and monitors the UCRSP Fund Menu.
-
Core Fund Menu:
- As of June 30, 2022, the core fund menu excludes investments in companies with fossil fuel reserves.
- It comprises three tiers: Target Date Funds (UC Pathway Funds), Main Fund Menu (Bond and Stock Investments), and Fidelity BrokerageLink®.
-
Target Date Funds (UC Pathway Funds):
- Designed to be the sole investment option for retirement accounts.
- Each UC Pathway Fund invests in eight underlying funds for maximum diversification.
- Allocations adjust over time to manage risk based on the fund's target date.
-
Main Fund Menu:
- Allows investors to build a custom portfolio.
- Divided into Bond Investments (Short-term, Intermediate-term, Inflation-protected) and Stock Investments (Domestic, Foreign, Specialty).
- Each category has specific funds with different risk-return profiles.
-
Fidelity BrokerageLink® (Tier III):
- Offers expanded investment choices beyond the standard fund lineup.
- Provides flexibility with a brokerage account, allowing for a broader range of investment options.
- Investors are responsible for ensuring selected investments align with their goals, time horizon, and risk tolerance.
-
Risk Considerations:
- The article emphasizes the importance of a well-diversified portfolio for managing risk.
- Target Date Funds automatically adjust risk over time, while the Main Fund Menu allows investors to manually diversify.
-
Investment Risks:
- The document highlights that investing involves risks, and the value of investments can fluctuate over time.
- Specific risks associated with different asset classes, such as bond funds and stock investments, are outlined.
-
Fidelity BrokerageLink® Risks:
- The risks associated with using BrokerageLink, including market volatility, liquidity concerns, and the need for investors to evaluate and monitor their chosen investments.
In summary, the UC Retirement Savings Program provides a comprehensive range of investment options catering to various risk appetites and preferences. The inclusion of target date funds, diversified stock and bond options, and the flexibility of BrokerageLink enhances the program's appeal to a broad spectrum of investors.
