Stadion risk-based funds
Sponsored by Benefit Trust Company
Sponsored by Benefit Trust Company
The Stadion Risk-Based CIT Series provides a range of portfolio options that seek to deliver satisfying returns with less volatility.
Supported by our signature investment strategy and its “Flex” structure, a participant can choose to step-down their risk the closer they get to retirement.
We believe evaluating and managing risk in the market is fundamental. That’s why within the Stadion Risk-Based Funds, there are three key components: equity, fixed income and “Flex”—the portion that we actively manage.
- Persistent equity exposure
- Provides broad market exposure (large cap, mid cap, small cap and international)
- Periodically adjusts holdings based on shifts within the markets
Example: Can add exposure to emerging markets
- Tactical asset allocation strategy drives portfolio allocation
- Dynamic sell criteria
- Adjusts equity exposure as determined by our model
Example: This portion can be invested in 100% equity positions, 100% cash/cash equivalent positions, or a combination of both
- Persistent fixed income exposure
- Generally high-quality, low-duration positions
- Periodically adjusts holdings based on shifts within the market
Example: Can shorten duration should interest rates start to rise
How the Investment Strategy Works
Stadion actively manages the light blue Flex component among equity positions, fixed income positions, and cash/cash equivalents, depending on the state of the market. The green portion remains in equity positions and the navy in fixed income positions.
The illustration below compares a traditional balanced fund, using a static asset allocation strategy, with the Stadion Balanced Fund which utilizes a dynamic asset allocation strategy.
The allocated percentages in the images above are approximate and may change based on market conditions.*Low-Risk Environment and High-Risk Environment refer to risk levels in equity markets as determined by Stadion's model.
Portfolio Manager, Investment Committee member
4 years as a Portfolio Manager
11 years trading experience
Clayton Fresk joined Stadion Money Management in 2009 and currently serves as Portfolio Manager of Stadion’s Retirement investment strategies, which comprises oversight of Stadion’s managed account, target-date, and risk-based strategies. Clayton is a member of the firm's investment committee. He provides thought leadership for Stadion’s participant level, customized retirement solutions, in order to ensure that its glide path technology and asset allocation are able to support all intermediaries in the defined contribution ecosystem. Clayton holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Minnesota. He also received an MBA degree and a Bachelor's degree in Finance & Marketing from the University of Minnesota.
Some of the principal risks associated with investing in this Fund include:
Loss of Money
Since the investment’s market value may fluctuate up and down, an investor may lose money when he or she buys or sells the investment, including part of the principal.
The market value of the portfolio’s securities may fall rapidly or unpredictably due to changing economic, political or market conditions, which may reduce the value of the portfolio.
Inflation may cause the present value of future payments to decrease, causing a decline in the future value of assets or income. Deflation causes prices to decline throughout the economy over time, impacting issuers’ creditworthiness and increasing their risk for default, which may reduce the value of the portfolio.
Performance is subject to the risk that the advisor’s investment strategies are not suited to achieving the investment objective or do not perform as expected, which may cause the portfolio to lose value or underperform investments with similar objectives and strategies.
Engaging in active trading may create high portfolio turnover, or a turnover of 100% or more, resulting in increased transaction costs.
Exchange Traded Funds
Assets invested in ETFs generally reflect the risks of owning the underlying securities they are designed to track, although they may be subject to greater liquidity risks and higher costs than owning the underlying securities directly due to their management fees.
Underlying Fund (also known as Fund of Funds, or Subsidiary)
A portfolio’s risks are closely associated with the risks of the securities and other investments held by the underlying funds, and the ability of the portfolio to meet its investment objective likewise depends on the ability of the underlying funds to meet their objectives.
Fixed Income Securities
The value of assets invested in fixed-income or debt securities may be susceptible to general movements in the bond market and are subject to increased interest rate and credit risk.
The value of equity securities, which include common, preferred and convertible preferred stocks, will fluctuate based on changes in their issuers’ financial conditions as well as overall market and economic conditions, and can decline in the event of deteriorating issuer, market or economic conditions.
Assets invested in foreign securities may be subject to increased volatility as the value of these securities changes more rapidly and extremely than the value of U.S. securities. Foreign securities are subject to increased issuer risk, since foreign issuers may not experience the same degree of regulation as U.S. issuers, and are held to different reporting, accounting and auditing standards. In addition, foreign securities are subject to increased costs, since there are generally higher commission rates on transactions, transfer taxes, higher custodial costs and the potential for foreign tax charges on dividend and interest payments. Many foreign markets are relatively small, and securities issued in less developed countries face the risks of nationalization, expropriation or confiscatory taxation, and adverse changes in investment or exchange control regulations, including suspension of the ability to transfer currency from a country. Political changes or diplomatic developments can also negatively impact performance.
Assets invested in emerging market securities may be subject to a greater extent to market, credit, currency, liquidity, legal, political and other risks compared to assets invested in developed foreign countries.
The investment’s performance may be impacted by its concentration in a certain type of security, adherence to a particular investing strategy or unique aspect of its structure and costs.
The securities shown represent each Stadion Risk-Based Fund. Each fund is composed of multiple share classes. The holdings of each fund have no bearing on the inception date of a particular share class. Each portfolio must achieve a certain asset level necessary to utilize model allocations. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list.
The fund is a Collective Investment Fund (CIF) created by Benefit Trust Company and is administered by Benefit Trust Company, as trustee. Its shares are not deposits of Benefit Trust Company and are not insured by the FDIC or any other agency. The CIF is not a mutual fund. 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 Act of 1940. The performance quoted here does not guarantee future results. As market conditions fluctuate, the investment return and principal value of any investment will change. Diversification may not protect against market risk. There are risks involved with investing, including possible loss of principal. This material should not be viewed as advice or recommendations with respect to asset allocation or any particular investment. Before investing in any investment portfolio, the client and financial professional should carefully consider client investment objective, time horizon, risk tolerance, and fees.
Performance results shown are net of the CIT’s fees and the fees and expenses of the underlying ETFs. Performance results include changes in principal value and assume reinvestment of all dividends and capital gain distributions. For periods of less than 1 year, return figures are not annualized and represent aggregate total return. The comparative performance results shown for the S&P 500 Index and the S&P Target Risk Index Series demonstrate how the U.S. stock and bond markets performed generally during the same periods, and how a hypothetical investment in either market alone or the asset mixes shown would have performed during such periods. The S&P 500 is a market-weighted index that represents the performance of a group of stocks of 500 companies chosen by Standard & Poor’s based on market size, liquidity, and industry group representation. The S&P Target Risk Index Series is composed of four multi-asset class indices, each corresponding to a particular risk level. The asset class mix is determined once a year through a process designed to reflect the overall investment opportunity of the represented markets. Each index is designed to provide varying levels of exposure to equities and fixed income. The index series derives asset class exposure bounds from a survey of large fund management companies that offer target risk products and also employs a shortfall, or downside risk control framework that offers insight into the potential for negative returns over a given holding period. The index series includes the S&P Target Risk Conservative Index which emphasizes exposure to fixed income, in order to produce a current income stream and avoid excessive volatility of returns. Equities are included to protect long-term purchasing power. The S&P Target Risk Moderate Index which provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities. The S&P Target Risk Growth Index which offers increased exposure to equities, while also using some fixed income exposure to diversify risk. The S&P 500 and S&P Target Risk Index Series are not available for direct investment and there are no commissions, management fees or other expenses associated with the indexes. All Benchmark data supplied by third party vendors and assumes re-investment of all dividends and distributions.
The Statistics presented are defined as follows. Standard Deviation measures the average deviations of a return series from its mean, and is often used as a measure of risk. Downside Risk is calculated in the same manner as Standard Deviation, but only those observations below the mean are used in the calculation. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager’s return series to match that of the benchmark used to measure beta. Maximum Drawdown measures the largest percentage decline from a peak to a trough.
The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visit the Department of Labor’s Web site for an example showing the long-term effect of fees and expenses at http://www.dol.gov/ebsa/publications/401kemployee.html. Fees and expenses are only one of the many factors to consider when you decide to invest in an option. You may also want to think about whether an investment in a particular option, along with your other investments, will help you achieve your financial goals.
Past Performance is no guarantee of future results. Investments are subject to risk, and any of Stadion's investment strategies may lose money.