How Funds are Chosen
Duke has formed an Investment Advisory Committee (IAC) to ensure that you have access to high quality funds at the lowest cost for the Duke plan.
The IAC has chosen a group of funds they will continue to regularly monitor to ensure that they remain appropriate investment options for Duke's plan.
Your investment options are grouped in tiers to make it easier to navigate your investments. Funds in Tier 1 and Tier 2 have been specifically selected by the IAC for the Faculty and Staff Retirement Plan based on their suitability for use in a diversified retirement savings portfolio and their competitive expense level. These funds are benchmarked annually to ensure that their performance and cost remain competitive. Funds in Tier 1 and 2 are monitored regularly by the IAC. Tier 3 offers a self-directed brokerage account for investors who wish to use funds that are outside of the monitored options. Investments you select through the Tier 3 brokerage account are not monitored by the IAC.
Tier 1: Asset Allocation Funds - A Simplified Approach
This tier offers a way to make a single choice for your retirement needs: Vanguard Target Date Funds.
The Vanguard Retirement Target Date fund series are designed for investors expecting to retire around the year indicated in each fund's name. A Target Date Fund is invested in a portfolio of mutual funds that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed. These funds are chosen and monitored by the IAC. For more information about the Vanguard Target Date Funds, click here.
The Vanguard Target Date Funds have an asset allocation mix among stocks, bonds, and short-term instruments that is more aggressive when you're younger and more conservative as you near retirement. They are constructed from investments in different asset classes and will automatically adjust investment strategy according to the objectives described in the fund prospectus. All you need to do is select the fund that is closest to the year you plan on retiring or the year you’ll reach Social Security retirement age. Read more about the Vanguard Target Date Funds here.
Tier 2: Core Funds - Build Your Own Portfolio
These funds represent funds from various asset classes that have been chosen by the IAC based on their suitability for inclusion in a customized retirement portfolio. You can build your own diversified portfolio from these core funds. Contact Fidelity if you need assistance selecting funds.
Tier 3: Self-Directed Brokerage Account (BrokerageLink®)
Fidelity BrokerageLink®, a self-directed brokerage account, gives you access to additional mutual funds for your retirement savings beyond the target date funds and core funds available in Tiers 1 and 2. BrokerageLink® combines the convenience of your workplace retirement plan with the additional flexibility of a brokerage account. Note, though, that the IAC neither evaluates nor monitors the mutual funds available through BrokerageLink®. It is your responsibility to ensure the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance. Learn more about BrokerageLink here.
The investments available through BrokerageLink® are not monitored by the Duke Investment Advisory Committee. It is your responsibility to ensure the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance.
Additional fees may apply for a brokerage account, including transaction fees and brokerage commissions for some transactions.
Investment Performance and Fee Disclosure Information
The investment performance and fee disclosure information contains the list of the investment options available to employees who participate in the 403(b) Retirement Plan.