The available investment fund lineup lets you choose an allocation that best meets your unique needs, risk tolerance, and personal time horizon. You can choose a custom pre-mixed portfolio (Option A) or build your own (Option B). Your HRA balance is invested in the VEBA Conservative Portfolio (default) until you choose something else. Changes are allowed once per month.
Many investment advisors recommend using pre-mixed asset allocation portfolios like those under Option A. A pre-mix is great if you want a single portfolio with a mix of stocks and bonds chosen and managed for you by professionals. The pre-mixes are managed to maintain their respective target allocations.
If you’d rather build and manage your own portfolio, you can do that under Option B. You can choose quarterly or annual rebalancing.
For more details, read our Choosing Your Investment Allocation brochure. Also, the Investment Fund Overview (updated quarterly) contains historical performance and fund operating expenses, which vary by fund.
Direct links to fund fact sheets and prospectuses are listed below. You should consult with a professional financial advisor and carefully read the fund prospectuses and fact sheets before making investment decisions. The VEBA Board of Trustees and its agents do not give investment advice.
OPTION A: CHOOSE A PRE-MIX
Custom pre-mixed portfolios managed by professionals
VEBA Income Portfolio
VEBA Conservative Portfolio
VEBA Moderate Portfolio
VEBA Growth Portfolio
Fidelity US Bond Index
Fidelity International Bond Index
Fidelity Total Market Index
Fidelity Total International Stock Index
*The underlying funds used in the custom pre-mixed portfolios are these four low-cost Fidelity funds. Prospectuses for the custom portfolios are not available.
OPTION B: DO IT YOURSELF
Individual funds to build and manage your own portfolio
Metropolitan Total Return Bond
Vanguard Institutional Index Plus
American Funds EuroPacific Growth R6
*The VEBA Stable Value Fund is a custom portfolio (separate account) managed by Goldman Sachs Asset Management exclusively for VEBA Trust. Unlike a mutual fund, it is not publicly traded and is available only to VEBA Plan participants.
Stable Value: VEBA Stable Value Fund*
Total Return Bond: Metropolitan West Total Return Bond
Large Cap Equity: Vanguard Institutional Index
Mid Cap Equity: Carillon Scout Mid Cap
Small Cap Equity: Champlain Small Company
International Equity: American Funds EuroPacific Growth R6
VEBA Trust’s Board of Trustees meets regularly with its investment consultant, Hyas Group. Hyas Group is an independent investment consulting firm located in Portland, Oregon. Hyas Group provides professional advice and assists the Board of Trustees with selection, review, monitoring, and replacement (when warranted) of the various asset classes, individual fund options and managers, and pre-mixed portfolios. Hyas Group also determines and monitors appropriate market benchmarks and peer groups for each fund offering.
The VEBA Board of Trustees has adopted and maintains an Investment Policy Statement (IPS). The IPS defines the Trust’s investment policies, guidelines, and objectives with respect to Trust assets, which are invested as directed by participants. The IPS is designed to work in multiple types of market environments and not be reactive to what might be considered normal short-term events. The IPS is reviewed on a regular basis and is revised when necessary or appropriate.
Each selected fund is expected to consistently outperform its style benchmark and other funds within its respective asset class. An investment fund may be placed “on watch” and may ultimately be replaced for reasons such as underperforming its benchmark, experiencing personnel turnover or ownership changes, changes in investment philosophy, etc.