Stable Income Fund & International Equity Funds
The purpose and structure of the Stable Income Fund (the Fund) is to provide a reasonable level of interest income with a low risk of principal loss. The Fund only holds fixed income and cash investments and does not own any stock market investments or auction rate securities.
The Fund's structure includes the following:
- A short-term cash management account that holds new contributions and proceeds from the maturity of Fund investments until allocated to other Fund investment sub-accounts. This account is managed to hold only very short-term investments that can normally be readily converted to cash.
- Guaranteed Investment Contracts (GICs) that are written with well capitalized insurance companies that pay a fixed rate and have a fixed maturity date.
- Managed bond portfolios that are well diversified portfolios of US Treasury bonds, government agency bonds, high quality mortgage and asset backed securities and investment grade corporate bonds. These portfolios are sometimes referred to as synthetic GICs.
The Board adopted an Guide to Investment Options (PDF) for the Fund that is conservative and available on the Plan Web site. The guidelines require diversification among many issuers, management styles, sectors and strict limits on maturities. These guidelines are continually monitored and any deviations to the diversification requirements or downgrades in investment quality are reviewed and corrected to maintain the safety of the Fund.
In addition, the Investment Guidelines govern the allocation of the types of securities and credit quality of the investments to assure safety and diversification.
The Plan offers two established market international investment options:
- International Equity Fund – Active Portfolio
- International Equity Fund – Index Portfolio
The International Equity Fund(s) net asset value (NAV) is provided for you, because these funds are not publicly traded. You can also learn more about the fund managers for the International Equity Fund.
Get the help you need
To see an overview of all Plan investment options, read the Guide to Investment Options (PDF), talk to the HELPLINE, or meet with your Account Executive.