Fall 2005 - Halliburton

More documents

Recommendations

Info

Investment Know-How Choosing Your Investments Choosing the right investment vehicles is one of the most important investment decisions you can make. Lifestyle funds seek to make balancing your portfolio easier for you by investing in the various asset classes at weights within predetermined ranges to meet the fund’s investment strategies and goals. Halliburton’s Premixed Portfolios are lifestyle funds that base their asset allocation on targeted risk and return profiles, such as aggressive, moderate, conservative and stable value. The Halliburton Investment Committee creates a portfolio diversified across several asset classes, such as stocks, bonds and stable value funds designed to meet specific objectives as set out in an investment policy statement and implemented by the Trust Department. Participants can pick the portfolio that most closely matches their risk tolerance, investment style and/or return requirements for their investment goals and situation. Over time, participants can move from one fund to another as their circumstances or needs change. • Lack of Diversification – A recent Vanguard study showed that almost 50 percent of plan participants use only one or two investment options. Since only a small portion of retirement assets are in diversified lifestyle funds, most participant’s portfolios are likely under diversified. Each of Halliburton’s Premixed Portfolios invests in a variety of asset classes to provide the appropriate level of diversification for its targeted risk level and return goals. The portfolios offer the simplicity of a single investment while providing multiple asset class diversification. The Premixed Portfolios also help avoid many of the common mistakes participants make in their retirement portfolio. These mistakes include: • Risk Management – One of the most common investing errors is not taking enough risk. Participants who make this mistake may find themselves without adequate returns to meet their retirement goals. The Premixed Portfolios are designed to provide consistent risk exposure and provide the maximum return for the specified level of risk. Premixed Portfolios Stable Value Premixed Portfolio (formerly FIF) Conservative Premixed Portfolio (new offering) Moderate Premixed Portfolio (formerly GIF) Aggressive Premixed Portfolio (formerly EIF) Single Focus Funds Bond Index Fund Balanced Fund Large Cap Value Equity Fund S&P 500 Index Fund Large Cap Growth Equity Fund Non-U.S. Equity Fund Mid Cap Equity Index Fund Small Cap Equity Fund Halliburton Stock Fund 6
Investment Know-How • Portfolio Rebalance – Hewitt Associates’ recent survey of 500,000 savings plan participants found that only one in five participants adjust their investment portfolios. When portfolios are not rebalanced to reflect market changes, participants can end up with a very different level of risk than they were expecting when they first invested. For example, if you were to create a portfolio with a mix of assets including stocks and bonds, the stocks, at least in this current market, would likely grow more quickly than the bonds. This would create an allocation imbalance as a higher percentage of your portfolio would be in stocks. With more of your allocation in stocks, you would be exposed to a higher risk level than you initially anticipated. You would then need to reallocate your investments to bring your risk level back in line with your original goals. The Premixed Portfolios do this rebalancing for you. The Investment Committee actively monitors the investments to make sure the portfolios stay within the level of risk assigned to them. run the risk of over diversifying. Participants investing in both Premixed Portfolios and Single Focus Funds may want to consult a financial advisor who can help them understand their diversification and risk exposure for their choices. Since the Premixed Portfolios are professionally managed, self-balancing and well diversified, any one of them can be used as a complete investment strategy. Halliburton’s Savings Plan Options Participants who are looking for a diverse portfolio without having to create and maintain it themselves, can choose from the plan’s four Premixed Portfolios. The portfolios are actively managed and rebalanced to ensure they maintain the level of diversification and risk exposure as set out in their objectives. Participants who want to create their own portfolios can choose from the plan’s other nine funds, which cover a range of asset classes and are now being branded as Single Focus Funds. Our Single Focus Funds include actively managed and indexed funds. Financial advisors typically warn against investing in both premixed portfolios and individual funds since you 7
Page 1 and 2: Fall 2005 Summer 2004 Feature Stori
Page 3 and 4: Feature What’s in a Name? Hallibu
Page 5: Feature New Transfer Policy Impleme
Page 9 and 10: Focus on Funds Conservative Premixe
Page 11 and 12: Newsstand Market Update The third q
Page 13 and 14: Fund Performance Update Halliburton
Page 16: 10200 Bellaire Blvd. Houston, TX 77

Fall 2005 - Halliburton

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?