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Welcome to Your New & Improved
Retirement Plan!
US-R
Presented by:Frank Gallo, CIMA® First Vice President – InvestmentsSenior Institutional ConsultantUBS Institutional ConsultingUBS Financial Services, Inc.800-905-5574
Retirement Education
vangurka [printed: April 19, 2011 1:52 PM] [saved: January 25, 2011 6:08 PM] S:\mfmarket\GPS Work Area- New Branded Conversion Files\Investor Insights\Investor Insights - Pictures Only.pptBristol Bay Native Corporation
Retirement Education
2
The information contained in this seminar presentation is intended to be general in nature.
Neither UBS Financial Services Inc. nor any of its employees provide legal or tax advice, or investment advice to retirement plan participants.
You must consult with your legal, tax and/or investment advisors regarding your personal circumstances.
Retirement Plan Changes Coming January 1,
2013
3
Retirement Education
vangurka [printed: April 19, 2011 1:52 PM] [saved: January 25, 2011 6:08 PM] S:\mfmarket\GPS Work Area- New Branded Conversion Files\Investor Insights\Investor Insights - Pictures Only.pptRetirement Plan Enhancements as of January 1,
2013
1) The core investment menu will shift to index funds where available to simplify investing and reduce participants’ costs
2) The current “Lifestyle/Strategy Portfolios“ will be replaced by similar models using index funds
Called “Conservative, Moderate & Aggressive,” they offer broadly diversified mixes built for less to more ambitious investment mixes
3) Vanguard Target Retirement Date Funds will be added These investing models have five year increments in their title (2015, 2020,
2025, etc.) and you pick the year closest to when you plan to retire The investment mix moves from aggressive (for those 30 or more years away
from retirement) to more conservative as retirement approaches “Investing automatically” across time (professionals do it for you)
4) Self-Directed Mutual Fund Window via TD Ameritrade will be added for experienced investors who want more investment flexibility
4
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Mutual Funds: “Passive” vs. “Active” Management
Index mutual funds try to reproduce an index’s returns less a small management fee – they are managed “passively”
Most of the plan’s existing funds are “actively-managed,” trying to outperform an index by buying & selling securities – No guarantee of outperforming, & the cost is higher (requiring significant attention
from management to monitor & evaluate performance)
Research shows that the largest part of investors’ returns comes from “asset allocation” – how one mixes stocks & bonds, US vs. International investments, etc. (see slide # 16) -- There will be two sets of investment models to help you:
1) Revised “Lifestyle Portfolios” with fixed investment allocations:
2) Vanguard Target Retirement Funds with moving allocations based on your age
5
vangurka [printed: April 19, 2011 1:52 PM] [saved: January 25, 2011 6:08 PM] S:\mfmarket\GPS Work Area- New Branded Conversion Files\Investor Insights\Investor Insights - Pictures Only.pptNew Core Fund Line-up: Index Funds & Three New
Categories
· The current funds will be replaced by index funds where available
· Three new investment categories will be added:– International bonds
– Global equity (mix of US & International stocks in one index fund)
– Emerging markets equity (developing countries)
6
Investment Category Current Fund New Fund
Stable Value Morley Stable Value Morley Stable Value
Bonds: US Dodge & Cox Income Vanguard Total Bond Market Index
International N/A Dreyfus International Bond
US Equity: Large Co. Allianz NFJ Dividend Value
Columbia Select Large Cap Growth
Medium Co. JP Morgan Mid Cap Value Ivy Mid Cap Growth
Small Co. Wells Fargo Adv Small Cap ValueColumbia Acorn Select
International Equity Amer Fds: Europacific Growth Vanguard Total International Stock Index
Global Equity N/A Vanguard Total World Stock Index
Emerging Markets N/A Aberdeen Emerging Markets
Vanguard Extended Market Index
Vanguard 500 Index
vangurka [printed: April 19, 2011 1:52 PM] [saved: January 25, 2011 6:08 PM] S:\mfmarket\GPS Work Area- New Branded Conversion Files\Investor Insights\Investor Insights - Pictures Only.pptNew Lifestyle/Strategy Portfolios > Similar to
Current Versions*
The current “Lifestyle/Strategy Portfolios“ will be replaced by similar models using index funds (* stock/bond mixes of Conservative & Moderate Models are slightly different as below)– The current investment models use a “risk-based” design: how much fluctuation
can you tolerate to reach for higher returns?
– Called “Conservative, Moderate & Aggressive,” they offer broadly diversified mixes built for those who prefer a static mix of investments (it doesn’t change on its own, you need to move your money when it’s appropriate for you)
7
Current Risk-Based Models New Risk-Based Models
Conservative Model Conservative Model
( 20% Stocks / 80% Bonds & Cash ) ( 22% Stocks / 78% Bonds & Cash )
Moderate Model Moderate Model
( 60% Stocks / 40% Bonds & Cash ) ( 52% Stocks / 48% Bonds & Cash )
Aggressive Model Aggressive Model
( 100% Stocks / 0% Bonds & Cash ) ( 100% Stocks / 0% Bonds & Cash )
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Vanguard Target Retirement Date Funds
Vanguard Target Retirement Date Funds have five year increments in their title (2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055)
You pick the year closest to when you plan to retire The investment mix moves from aggressive (for those 30 or more years
away from retirement) to more conservative as retirement approaches
8
Target Date (Assumed Retirement)
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Mutual Fund Window via TD Ameritrade Self-Directed Brokerage Account (SDBA)
A mutual window will be available through a TD Ameritrade SDBA for those wanting a broader range of investment options and able to manage the risk of selecting from more than 13,000 funds
You may move up to 50% of your vested balance to the mutual fund window -- minimum transfer of $2,500 (total account of at least $5,000)
There will be a $100 annual fee charged each December
-- There may be additional fees or commissions for transactions
You are responsible for your decisions -- to research, evaluate, and select investments consistent with your investment strategy and risk profile
9
vangurka [printed: April 19, 2011 1:52 PM] [saved: January 25, 2011 6:08 PM] S:\mfmarket\GPS Work Area- New Branded Conversion Files\Investor Insights\Investor Insights - Pictures Only.pptDeadlines: Your Contributions as of January 1, 2013
Your Current Balances as of March 31, 2013
To make changes you may do so online at www.401save.com or by completing a paper form which will be available for you shortly
For your ongoing contributions, if you don’t provide investment instructions by Jan. 1, 2013, than all future contributions will be invested in the Default Target Retirement Funds based on the year closest to your 65th birthday
For your current balances, if you don’t move your account current balances by March 31, 2013, than they will be transferred automatically on April 1 as follows:
1) Individual fund balances you selected transfer to Default Target Retirement Funds based on the year closest to your 65th birthday
-- Morley Stable Value assets will remain as is (will not be transferred)
2) “Lifestyle / Strategy Portfolios” or risk-based models transfer to the most similar model using index funds (may include actively-managed international bonds and emerging market equities – see Slide 24 for details)
10
Contributing to the BBNC Retirement Plan
11
Retirement Education
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Your 401(k) Contributions
Contribution limits (traditional = all pre-tax $’s, Roth = after-tax $s):
– 1-50% of your income to $17,500 in 2013
– ’50 & Over’ Catch-up of $5,500 more (for a total of $23,000)
Enter the plan the 1st of the month following or coincident with date of hire
– You can also change/stop your contributions at any time
– Try to increase your contribution by even 1% per year (or more!)
– It will make a big difference at retirement(and you probably won’t miss it in your check!)
Change investments at any time
12This data is taken from sources deemed to be reliable, but we cannot guarantee their accuracy nor completeness.
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Pre-Tax (Traditional) or After-Tax (Roth)?
How Are Contributions Taxed? (choose any combination of 1 and/or 2)
1) Pre-tax contributions (traditional)−grows tax-deferred
−pay taxes later when you take a distribution, or:
2) After-tax Roth 401k contributions −grows tax-free like a Roth IRA
−no income limitations like the Roth IRA
−tax-free growth if qualified(5 years since 1st contribution + 59 ½ yrs. old)
Which tax-status to choose?
−Pre-tax tax leaves more take-home pay today, taxes due later
−After-tax (Roth 401k) costs more now, hedge against higher future tax rates
Rollovers from another eligible retirement plan or rollover IRA
13This data is taken from sources deemed to be reliable, but we cannot guarantee their accuracy nor completeness.
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BBNC’s & Your Contributions
1) A safe harbor match of 100% of the first 5% of pay that participants defer
2) A discretionary profit-sharing contribution of 5% of eligible compensation (effective May 1, 2012)
Employees must be employed at December 31 (the last day of the plan year) and perform 1,000 hours of service to receive the contribution (restrictions waived due to death, disability or normal retirement).
Your 401(k) BBNC TotalTax-Deferred Matching ContributionContributions Contribution (You + BBNC)
1.0% 1.0% 2.0%2.0% 2.0% 4.0%3.0% 3.0% 6.0%4.0% 4.0% 8.0%
5.0% (or more) 5.0% 10.0% (or more)
This data is taken from sources deemed to be reliable, but we cannot guarantee their accuracy nor completeness.
14
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Vesting Schedule
♦ Participants are always vested in: − 401(k) payroll contributions − Rollover account − BBNC matching contribution
♦ Profit-sharing contributions vested* at:
- None for less than 2 years- 20% after 2 years of service- 40% after 3 years of service- 60% after 4 years of service- 100% after 5 years of service
Vesting is when BBNC’s contributions belong to you!
15This data is taken from sources deemed to be reliable, but we cannot guarantee their accuracy nor completeness.
* You become fully vested when you attain normal (65) or early retirement age (55 and 5 yrs of service) or if you terminate employment due to death or disability.
vangurka [printed: April 19, 2011 1:52 PM] [saved: January 25, 2011 6:08 PM] S:\mfmarket\GPS Work Area- New Branded Conversion Files\Investor Insights\Investor Insights - Pictures Only.pptMaximize Your Savings Today
Minimize Your Retirement Worries Tomorrow
Look at the impact of increasing contributions over the long term
How the “1% Solution” pays offAssumes $25,000 salary; 7% rate of return; investment time frame of 30 years.
Note: Sue’s contributions remain at 15% after year 10 and until year 30.
John Sue
$152,496
$307,387
Contributes 6% annually
Contributes 6% the first year;
increases it by 1% annually for 10 years until she reaches 15%
16
Investing in the BBNC Retirement
Plan
17
Retirement Education
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18
Asset allocation is essential
US-F, US-R
1 Gary P. Brinson, L. Randolph Hood and Gilbert L. Beebower, “Determinants of Portfolio Performance,” The Financial Analysts Journal, July/August 1986; and Gary P. Brinson, Brian D. Singer and Gilbert L.Beebower, “Determinants of Portfolio Performance, II: An Update,”The Financial Analysts Journal, May/June 1991.2Asset allocation, however, does not assure a profit or prevent against loss from occurring in an investment portfolio.
UBS asset allocation study
Bottom Line: According to this study, asset allocation—America’s most admired, but least practiced investment discipline—accounts for 91.5% of the variation in portfolio returns.1
Market Timing1.8%
Other2.1%
Security Selection
4.6%Asset Allocation
Policy91.5%
Conclusion: Strategic asset allocation can help manage portfolio risk while stabilizing returns2
vangurka [printed: April 21, 2011 9:50 AM] [saved: April 20, 2011 5:59 PM] S:\mfmarket\GPS Work Area- New Branded Conversion Files\Investor Insights\Investor Insights -Graphs only.pptEquities have protected purchasing power over time
Note: $1,000 may not be representative of a typical investment in 1925.
Source: Ned Davis Research; used with permission. The chart is shown for illustrative purposes only, and is not meant to show the returns of any particular UBS Global Asset Management investment. Stocks represented by Standard & Poor’s (S&P) 500 Index, long-term government bonds by 20-year US Treasury bonds, 90-day US Treasury bills and inflation by the Consumer Price Index (CPI through December 31, 2011). The S&P 500 Index is an unmanaged, weighted index comprising 500 widely held common stocks varying in composition. Returns consist of income, capital appreciation (or depreciation) and currency gains (or losses). Certain markets have experienced significant year-to-year fluctuations and negative returns from time to time. Stocks are more volatile and subject to greater risks than other asset classes. Indexes are not available for direct investment. Past performance is not a guarantee of future results.
$1,000
$10,000
$100,000
$1,000,000
$10,000,000
$100,000,000
1925
1927
1929
1931
1933
1935
1937
1939
1941
1943
1945
1947
1949
1951
1953
1955
1957
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
S&P 500 Index US LT Gov't 90-day US T bill US Inflation
$2,885,062 (9.59%
average)
$ 119,722 (5.65%
average)
$ 22,929 (3.67%averag
e)
$ 12,607 (2.96%
average)
Growth of $1,000 from 1925 – December 31, 2011
S&P 500
US Long-term Gov’t
90-day US T billUS Inflation
$10,000,000
$1,000,000
$100 000
$10,000
$1,000
$100
19
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Diversification and the Average Investor
20-year annualized returns by asset class (1992-2011)
Source: UBS Global Asset Management.Indexes used are as follows: REITS: FTSE NAREIT All REITs TR, EAFE: MSCI EAFE USD, Oil: W Texas Crude Int Oil BL, Bonds: Barclays U.S. Aggregate Index, Gold: S&P GSCI Gold TR, Inflation: CPI, Fund of Hedge Funds: HFRI Fund of Funds Composite Index (Net published) (USD), MSCI: MSCI World Free Index (net). * Source: Dalbar Inc. The average annual return of the Dalbar Average Equity Investor is based on all equity funds, represented by the Dalbar Equity Index, which was comprised of the S&P 500 Index and the Ibbotson Small Company stock Index. For illustrative purposes only.
20
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Asset Class Returns2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012YTD 2Q12 Cum. Ann..
DJ UBSCmdty
MSCIEME
REITsMSCIEME
REITsMSCIEME
Barclays Agg
MSCIEME
REITs REITs REITs REITsMSCIEME
MSCIEME
23.9% 56.3% 31.6% 34.5% 35.1% 39.8% 5.2% 79.0% 28.0% 8.3% 14.9% 4.0% 277.2% 14.2%
Barclays Agg
Russell 2000
MSCIEME
DJ UBSCmdty
MSCIEME
MSCI EAFE
Market Neutral
MSCI EAFE
Russell 2000
Barclays Agg
S&P500
Barclays Agg
REITs REITs
10.3% 47.3% 26.0% 17.6% 32.6% 11.6% 1.1%* 32.5% 26.9% 7.8% 9.5% 2.1% 164.2% 10.2%. .
Market Neutral
MSCI EAFE
MSCI EAFE
MSCI EAFE
MSCI EAFE
DJ UBSCmdty
Asset Alloc.
REITsMSCIEME
Market Neutral
Russell 2000
Asset Alloc.
Asset Alloc.
Asset Alloc.
7.4% 39.2% 20.7% 14.0% 26.9% 11.1% -23.8% 28.0% 19.2% 4.5% 8.5% -2.1% 86.3% 6.4%
REITs REITsRussell
2000REITs
Russell 2000
Market Neutral
Russell 2000
Russell 2000
DJ UBSCmdty
S&P500
Asset Alloc.
S&P500
Barclays Agg
Barclays Agg
3.8% 37.1% 18.3% 12.2% 18.4% 9.3% -33.8% 27.2% 16.7% 2.1% 5.1% -2.8% 75.4% 5.8%
Asset Alloc.
S&P500
Asset Alloc.
Asset Alloc.
S&P500
Asset Alloc.
DJ UBSCmdty
S&P500
S&P500
Asset Alloc.
MSCIEME
Russell 2000
Russell 2000
Russell 2000
-5.4% 28.7% 12.5% 8.0% 15.8% 7.3% -36.6% 26.5% 15.1% -0.2% 4.1% -3.5% 72.8% 5.6%
MSCIEME
Asset Alloc.
S&P500
Market Neutral
Asset Alloc.
Barclays Agg
S&P500
Asset Alloc.
Asset Alloc.
Russell 2000
MSCI EAFE
Market Neutral
Market Neutral
Market Neutral
-6.0% 25.2% 10.9% 6.1% 14.9% 7.0% -37.0% 22.5% 12.7% -4.2% 3.4% -3.6% 72.1% 5.6%
MSCI EAFE
DJ UBSCmdty
DJ UBSCmdty
S&P500
Market Neutral
S&P500
REITsDJ UBSCmdty
MSCI EAFE
MSCI EAFE
Barclays Agg
DJ UBSCmdty
MSCI EAFE
MSCI EAFE
-15.7% 22.7% 7.6% 4.9% 11.2% 5.5% -37.7% 18.7% 8.2% -11.7% 2.4% -4.6% 64.8% 5.1%
Russell 2000
Market Neutral
Market Neutral
Russell 2000
Barclays Agg
Russell 2000
MSCI EAFE
Barclays Agg
Barclays Agg
DJ UBSCmdty
Market Neutral
MSCI EAFE
DJ UBSCmdty
DJ UBSCmdty
-20.5% 7.1% 6.5% 4.6% 4.3% -1.6% -43.1% 5.9% 6.5% -13.4% -2.3% -6.9% 58.0% 4.7%
S&P500
Barclays Agg
Barclays Agg
Barclays Agg
DJ UBSCmdty
REITsMSCIEME
Market Neutral
Market Neutral
MSCIEME
DJ UBSCmdty
MSCIEME
S&P500
S&P500
-22.1% 4.1% 4.3% 2.4% -2.7% -15.7% -53.2% 4.1% -2.5% -18.2% -3.7% -8.8% 33.4% 2.9%
10-yrs '02 - '11
As
se
tCla
ss
Source: Russell, MSCI, Dow Jones, Standard & Poor’s, Credit Suisse, Barclays Capital, NAREIT, FactSet, J.P. Morgan Asset Management. The “Asset Allocation” portfolio assumes the following weights: 25% in the S&P 500, 10% in the Russell 2000, 15% in the MSCI EAFE, 5% in the MSCI EMI, 30% in the Barclays Capital Aggregate, 5% in the CS/Tremont Equity Market Neutral Index, 5% in the DJ UBS Commodity Index and 5% in the NAREIT Equity REIT Index. Balanced portfolio assumes annual rebalancing. All data except commodities represent total return for stated period. Past performance is not indicative of future returns. Data are as of 6/30/12, except for the CS/Tremont Equity Market Neutral Index, which reflects data through2/29/12. “10-yrs” returns represent annualized total return. These returns reflect the period from 1/1/02 – 12/31/11. Please see disclosure page at end for index definitions. *Market Neutral returns include estimates found in disclosures.Data are as of 6/30/12.
21
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-19.10%
-14.10%
Rebalancing Can Help to Manage Volatility
Source: UBS Global Asset Management. For illustrative purposes only. The example above is based on a hypothetical portfolio consisting of 60% S&P 500 Index and 40% Barclays Treasury Index. The indices are unmanaged and are not available for direct investment. The portfolio rebalanced annually was rebalanced every January during the 20-year period. Maximum loss is based on any rolling 12-month period during the 20-year period. Past performance is no guarantee of future results. Rebalancing alone does not ensure gains or prevent losses from occurring in a portfolio or account.
20 years through December 31, 2011
Without Rebalancing: More variability and downside risk
With Rebalancing: Less variability and downside risk
Annualized Returns (%)Maximum 12-month loss (%)
Portfolios that are rebalanced even once per year are significantly less volatile than portfolios that have not been rebalanced.
60 / 40 Portfolio Mix (Stocks / bonds)
22
7.6%
BBNC’s Investment Line-up
One-Step Mix(“diversify in a
static mix”)
Choose Your Own Mix(you’re the
expert)
(No sales charges on any BBNC retirement funds.)
23
Investment Category Mutual Fund
Stable Value Morley Stable Value
Bonds (Fixed Income) Dodge & Cox IncomeDreyfus International Bond
US Equity Large Company Vanguard 500 Index
Medium & Small Company Vanguard Extended Market Index
International/Global Equity
International Vanguard Total International Stock Index
Global (US & Int'l) Vanguard Total World Stock Index
Emerging Markets Aberdeen Emerging Markets
Lifetime Model(“investing
automatically”)
Income 2030Vanguard ------ 2035
Target Retirement 2010 2040Funds 2015 2045
2020 20502025 2055
Lifestyle/Strategy Funds
(22 / 78) ConservativeTarget Mix (52 / 48) Moderate
(98 / 2) Aggressive
Asset Allocation Models (“Lifestyle/Strategy Funds”) Each strategy or model is made up of several mutual funds, diversified using ”modern portfolio
theory”.
24This data is taken from sources deemed to be reliable, but we cannot guarantee their accuracy nor completeness. Past performance does not guarantee
future results.
Investment Category
(or Asset Class) 1) Conservative 2) Moderate 3) Aggressive
Target Mix* > (22 /78) (52 / 48) (98 / 0)Stable Value Morley Stable Value 69 20 2.0
Bonds (Fixed Income) Vanguard Total Bond Index 9 18Dreyfus International Bond - 10
US Equity Large Company Vanguard S&P 500 Index 14 25 37.0
Medium & Small Company Vanguard Extended Market Index 2.5 13 36.0 International Equity Vanguard Total Int'l Stock Index 5.5 11 16.0
Aberdeen Emerging Markets - 3 9.0 100 100 100.0
* Target mix is % of (stocks) vs. (bonds & stable value)
** Strategy funds are rebalanced regularly back to target mix
Mutual FundsStrategy Funds **
Target
Mix 3 Mo. YTD 12 Mo. 3 Yr. 5 Yr. 10 Yr.Conservative (22 / 78) 1.77 4.36 7.35 4.32 2.39 NA
Moderate (52 / 48) 4.62 10.15 16.32 8.56 3.92 NA
Aggressive (98 / 2) 6.08 14.73 26.75 11.55 1.39 NA
Hypothetical** Returns as of September 30, 2012
Strategy Funds (Asset Allocation Models)
Actual Returns Average Annual Returns
** These returns are hypothetical returns, averages of the underlying funds' returns, NOT actual returns.
25
Vanguard Target Retirement Funds
This data is taken from sources deemed to be reliable, but we cannot guarantee their accuracy nor completeness. Past performance does not guarantee
future results.
Vanguard Target Retirement Funds 3 Mo. YTD 12 Mo. 3 Yr. 5 Yr. 10 Yr.
Income VTINX 3.06 7.45 11.74 8.09 5.06 NA2010 VTENX 3.73 9.01 14.74 8.97 3.50 NA2015 VTXVX 4.31 10.08 16.76 9.18 2.88 NA2020 VTWNX 4.70 10.83 18.30 9.38 2.30 NA2025 VTTVX 5.06 11.65 19.89 9.66 1.70 NA2030 VTHRX 5.43 12.38 21.43 9.89 1.12 NA2035 VTTHX 5.76 13.11 22.98 10.10 0.84 NA2040 VFORX 5.97 13.46 23.43 10.11 0.90 NA2045 VTIVX 5.87 13.44 23.39 10.12 0.86 NA2050 VFIFX 5.95 13.47 23.46 10.13 0.88 NA2055 VFFVX 5.98 13.50 23.56 NA NA NA
SymbolActual Returns Average Annual Returns
26
Category Mutual Fund -- Share Class(Style) (Index below) 3 Mo. YTD 12 Mo. 3 Yr. 5 Yr. 10 Yr.
Stable Value Morley Stable Value N/A 0.32 1.07 1.54 2.06 2.66 3.38
Citi Treasury Bill 3 Month 0.02 0.05 0.05 0.09 0.64 1.73
Bonds (Fixed Income)Vanguard Total Bond Market Index -Signal VBTSX 1.55 4.02 5.03 6.11 6.53 5.28 BC Aggregate Bond 1.59 3.99 5.16 6.19 6.53 5.33
Dreyfus International Bond - I DIBRX 5.54 8.14 6.66 6.91 10.34 NA Barclays Global Aggregate Ex US 4.37 5.18 4.80 4.28 5.98 7.30
US Equity: Large Company (Blend) Vanguard 500 Index - Signal VIFSX 6.34 16.42 30.17 13.19 1.07 7.96
S&P 500 6.35 16.44 30.20 13.20 1.05 8.01
US Equity: Medium & Small Company (Blend) Vanguard Extended Market Index - Signal VEMSX 5.58 14.84 30.42 14.08 2.73 10.97
Russell 2500 5.57 14.33 30.93 14.07 2.80 10.86
International/ Global Equity (Int'l) Vanguard Total Intl Stock Index - Signal VTSGX 6.92 10.80 15.44 2.76 -4.51 9.44
MSCI AC World Index EX USA 7.49 10.86 15.04 3.63 -3.67 10.32
(Global: Vanguard Total World Stock Index Inv VTWSX 6.60 12.99 21.48 6.97 NA NAUS + Int'l) MSCI AC World Index 6.97 13.39 21.67 7.78 -1.54 9.16
(Emerging Aberdeen Emerging Markets Instl Svc AEMSX 6.80 17.39 23.72 12.40 7.54 NAMarkets) MSCI EMF 7.89 12.33 17.33 5.96 -0.98 17.37
BBNC Family of Companies -- Retirement Plan
Investment Performance as of September 30, 2012
SymbolActual Returns Average Annual Returns
This data is taken from sources deemed to be reliable, but we cannot guarantee their accuracy nor completeness. Past performance does not guarantee
future results.
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Retirement Savings Questionnaire
Determining Your Asset Allocation Strategy
When you choose to put a set amount of money in specific investments in your retirement plan, you are making an asset allocation decision. Rather than randomly allocate your assets among various alternatives, you may better served by taking a more strategic approach. Because each investment type (such as stocks, bonds, and stable value) generally has different risk and return characteristics a well thought out asset allocation strategy that places an appropriate portion of your money into each can help you effectively balance risk and return over the long term.
When making decisions about your asset allocation strategy, consider such factors as when you will need the money and your own personal risk tolerance. Also consider your other assets, sources of income and investments (e.g. equity in your home, IRA investments, savings accounts, and interests in other benefits) in addition to the assets in your retirement plan. This will help you determine how much to invest in each fund available in your plan.
To help you with your decision, UBS Financial Services as provided this Retirement Savings Assessment Questionnaire. This self-scoring Questionnaire takes your time horizon and risk tolerance into consideration. Your score then corresponds to one of the six asset allocation strategies. Each strategy shows a different combination of the investment types available in your plan, including various stock (domestic and international), bonds, and stable value investments as well as a blended stock and bond investment.
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Putting Your Retirement Strategy into Place
Once you have used the Questionnaire to identify a suggested asset allocation strategy, review the recommendation to decide if it’s right for you. If it is, select the asset allocation strategy that corresponds to your score. If you choose, you can determine you own asset allocation using the given strategies as a guideline.
Re-evaluating and Rebalancing Your Account
It is important to re-evaluate your personal circumstances and your asset allocation strategy periodically.
Because the value of each fund changes over time, your asset allocation strategy may become out of balance from your initial planning. To realign with your initial strategy, you will need to rebalance your account by reallocating your funds.
Retirement Savings Questionnaire
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Determining Your Asset Allocation Strategy
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Asset Allocation Strategies – Weighting Domestic Equities
· “Market neutral” weighting is:
– 70% large company (large > $10 billion*)
– 20% medium company (mid = $2-10 billion*)
– 10% small company (small < $2 billion*)
– each size category can be further diversified by growth versus value styles (50/50, where available)
* These size ranges are general in nature, and subject to change.
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Need Help?
Account Access/Website
(including investment changes, forms, fund information, etc.)
Trautmann, Maher & Associates (plan administrator)
888-700-0808 (live)
or via Internet
www.401save.com
Do you have questions regarding…?
Investments/Retirement Planning
UBS Institutional Consulting
800-905-5574 (no account access)
Identify yourself as a participant of the BBNC Family of Companies’
retirement plan
No cost to you
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