401(k) Select
AEAM's 401(k) offering reflects the company's investment methodology, and features a variety of investment options for both Traditional and Roth 401(k) plans, utilizing mutual funds as the underlying investment vehicles.
At the simplest level, AEAM has selected six single asset class mutual funds to allow plan participants to construct their own portfolios from a variety of investment options across the spectrum of stocks, bonds, stable principal and real estate. Participants simply choose percentages of fund weightings in their Investment Election forms, and their portfolios will be set.
Alternatively (or in addition), plan participants can choose to have AEAM manage their retirement portfolios based upon specific goals, risk tolerance, age and years to retirement, using one of four highly diversified, actively managed portfolios called 401(k) Select. 401(k) Select portfolios are designed as single, professionally managed investment vehicles that provide instantaneous diversification across more than 15 major asset classes through the purchase of mutual funds.
- 401(k) Select: Income Portfolio
- 401(k) Select: Growth & Income Portfolio
- 401(k) Select: Moderate Growth Portfolio
- 401(k) Select: Growth Portfolio
Professionally Managed Portfolios
- Stable Principal Income Fund
- Bond Fund
- REIT Fund
- Large Cap Fund
- Small Cap Fund
- International Stock Fund
Single Asset Class Funds
Investment Options Designed to Meet Varied Needs
Professionally Managed Portfolios
AEAM employs proprietary analytics and mathematical models to select the combination and weighting of more than 15 distinct asset classes, arriving at portfolios that seek to correspond to given levels of expected risk and return. Plan participants can then choose from one of four portfolio options that correspond to their financial goals, risk tolerance, age and/or years-to-retirement:
Portfolio Risk & Reward Characteristics
- Income: below average risk tolerance or approaching retirement age (e.g. 60+ years old)
- Growth & Income: slightly below average risk tolerance or between 50-60 years old
- Moderate Growth: slightly above average risk tolerance or between 40-50 years old
- Growth: above average risk tolerance or are far from retirement (e.g. 20-40 years old)
Risk Factors
Because the asset allocation relies on a dynamic market model to make periodic adjustments among different asset classes, performance may diverge from the results of various indices. This adjustment process is not intended to act as a precise market timing tool and does not eliminate market risk. In addition, AEAM's analysis of various market phases and conditions may, in fact, prove incorrect.
An investor should carefully consider investment objectives, risks, charges and expense before investing. This information and more complete information, including potential risks, is included in each mutual fund prospectus, which can be obtained from Advanced Equities Asset Management by calling (866) 299-4864. Read the prospectus carefully before investing. There is no certainty that any investment or strategy will be profitable or successful in achieving investment objectives.
Mutual funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.
There are unique potential risks associated with the specific asset classes that each mutual fund represents. Investments in smaller companies typically exhibit higher volatility. In addition to the normal risks associated with investing, narrowly focused investments typically exhibit higher volatility.
REIT investments are subject to changes in economic conditions, credit risk and interest rate fluctuations. Bonds and bond funds will decrease in value as interest rates rise. Commodities markets have historically been extremely volatile. Inverse funds should lose money when their benchmark indexes rise-a result that is opposite from traditional mutual funds. Inverse funds also entail certain risks, including inverse correlation, leverage, market price variance and short sale risks.
Investments in foreign investments do incur greater risks than domestic investments. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
Securities offered through First Allied Securities, Inc., a registered broker/dealer. Member: FINRA/SIPC.