Introducing the ABC Advisors Sample Portfolios
As we work with our retirement plan clients, we find there are usually two groups of participants: The
first group includes employees who are comfortable selecting their own mix of investments from a
range of individual mutual funds. The second group of participants are those who seek additional
guidance – such as a range of sample investment portfolios. To assist plan participants, ABC Advisors
is pleased to offer a range of sample portfolios within our retirement partnership with BPAS.
Fixed Income
Risk Averse
Conservative
Moderate
Aggressive
All Equity
The objective of the Income Portfolio is to generate income. The interest rate and principal
market value of this model will change in reaction to interest rates, government policies,
and worldwide economic conditions. The asset allocation of the Income Model is 100% fixed
income mutual funds. Investments in the fixed income funds may include US Government
obligations, corporate notes, asset-backed and mortgage-backed securities, commercial paper
and other fixed income securities. The majority of issues will have maturities or average lives
between one and ten years.
The objective of the Risk Averse Portfolio is income generation with capital appreciation a
secondary consideration. The interest rate and market value of the model will change in reaction
to interest rates, government policies and worldwide economic conditions. The Moderate
Income Model allocates its assets to 75% fixed income and 25% stocks. The asset classes are
high-quality fixed income and stock funds. The fixed income portion consists of short-and
intermediate-term mutual funds. The stock portion is diversified between value and growth,
large and small, and domestic and international companies.
The objective of the Conservative Portfolio is to balance capital appreciation and current income
in stock and fixed income funds. The interest rate and market value of the model will change in
reaction to interest rates, government policies and worldwide economic conditions. The
Balanced Model allocates its assets to 50% fixed income and 50% stocks. The asset classes are
high-quality fixed income and stock funds. The fixed income portion consists of short-and
intermediate-term mutual funds. The stock portion is diversified between value and growth,
large and small, and domestic and international companies.
The objective of the Moderate Portfolio is capital appreciation with current income
a secondary consideration. The interest rate and market value of the model will change in
reaction to interest rates, government policies and worldwide economic conditions. The
Moderate Growth Model allocates its assets to 25% fixed income and 75% stocks. The asset
classes are high-quality fixed income and stock funds. The fixed income portion consists of shortand intermediate-term mutual funds. The stock portion is diversified between value and growth,
large and small, and domestic and international companies.
The objective of the Aggressive Portfolio is capital (price) appreciation over the long-term with
dividend income as a limited consideration. The interest rate and market value of the model will
change in reaction to interest rates, government policies and worldwide economic conditions.
The Growth Model is exclusively a stock portfolio, utilizing mutual funds that could include both
domestic and international securities. The portfolio is diversified between value and growth,
large and small, and domestic and international companies.
The objective of the All Equity Portfolio is capital (price) appreciation over the long-term with
dividend income as a limited consideration. The interest rate and market value of the model will
change in reaction to interest rates, government policies and worldwide economic conditions.
The Growth Model is exclusively a stock portfolio, utilizing mutual funds that could include both
domestic and international securities. The portfolio is diversified between value and growth,
large and small, and domestic and international companies.
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Which sample portfolio is right for you?
Once you are eligible to participate in your retirement plan, you need to
develop an investment strategy. This questionnaire will help you consider
your outlook on risk and investing to determine which sample portfolio
may be best suited to your investment needs. Please circle your response
to each question, then tally up scores below. (Your total score should be
between 5 and 25).
To obtain above-average
returns on my investments, I
am willing to accept aboveaverage risk of investment
losses.
Staying ahead of inflation is
more important to me than
maintaining stable principal
values.
If an investment loses money
over the course of a year, I
can easily resist the
temptation to sell it.
I do not plan on withdrawing
my retirement money for
major expenses before I
retire.
I consider myself
knowledgeable about
economic issues and personal
investing.
Strongly
Disagree
Disagree
Undecided
Agree
Strongly
Agree
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
… Now tally up your total score: ___________
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Reviewing our sample portfolios
Our plan offers a diverse menu of no-load funds that have been carefully screened and are subject to an
ongoing fund monitoring process. Our sample portfolios are comprised of various mixes of these funds to
create a well rounded, diversified investment strategy. The makeup of each of the sample portfolios is outlined
below.
 DFA US Large Co Inst.
 DFA US Large Cap Value I
 DFA US Small Cap
 DFA Targeted Value
 DFA Real Estate
 DFA International Value
 MFS Small Cap Growth
 DFA Small Company
 DFA Emerging Markets I
 DFA Emerging Mkts Value
 Pru Global Real Estate
 PIMCO Commodity Real
Return
 Vanguard ShrtTm Federal
 Vanguard ShrtTm Bond
Index
 DFA TIPS Fund
 DFA Five Year Global
Total
Fixed
Income
(Score of
5 – 10)
Risk Averse
(Score of
11 – 14)
Conservative
(Score of
14 - 16)
Moderate
(Score of
17 - 19)
Aggressive
(Score of
20 – 22)
All Equity
(Score of
24 – 25)
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
3%
2%
2%
2%
1%
2%
2%
2%
1%
1%
1%
1%
5%
5%
5%
5%
2%
4%
4%
4%
2%
2%
1%
1%
8%
8%
8%
8%
2%
5%
5%
5%
5%
3%
3%
3%
11%
11%
11%
11%
2%
7%
7%
7%
4%
4%
2%
4%
13%
13%
14%
14%
3%
9%
9%
9%
5%
4%
2%
5%
25%
25%
20%
20%
15
15
10%
10%
5%
5%
0%
0%
25%
25%
100%
20%
20%
100%
15
15
100%
10%
10%
100%
5%
5%
100%
0%
0%
100%
What should I do now ?
After reading this communication entirely, please determine which sample portfolio best matches your needs,
while making any changes you feel are warranted. For example, if you scored an 20 on the questionnaire, but
feel that “moderate” best describes you, please move to the moderate portfolio. Once you have selected your
portfolio, please circle that column above.


If you are just enrolling in the plan, enter the indicated percentages for each fund on your enrollment
form, then check off each fund above until all funds have been entered.
If you are making investment changes via the website, we recommend that you make the changes
through the “automatic rebalancing screen”, selecting the ‘annual rebalancing’ option. Enter the
indicated percentages for each fund on your enrollment form, then check off each fund above until all
funds have been entered.
We hope that these suggested models are a helpful tool in your retirement planning process. For complete
information and research tools (including fund fact sheets, prospectuses, retirement planning calculators and
more), please see our participant website at www.bpas.com.
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