Ways to invest

Age-based funds, also known as target-date or lifecycle funds, are designed to automatically adjust their investment strategy based on an investor’s age and expected retirement date. The goal is to balance growth potential with risk reduction, ensuring financial stability as retirement nears.

Index funds passively track market indices like the S&P 500, offering broad diversification and low costs. With minimal management fees, they often outperform actively managed funds over time. Index funds can be a cost-effective choice for investors seeking to track the performance of the market.

Actively managed funds use professional portfolio managers to make decisions about how to allocate assets and aim to outperform a specific benchmark index (like the S&P 500). They typically charge higher fees than index funds. The PEP offers lower-cost institutional shares of actively managed funds. These funds can be used by members who prefer active management in general or as a complement to an index portfolio.

ESG funds focus on companies meeting environmental, social, and governance standards, promoting sustainability and ethical business practices. They aim for competitive returns while aligning investments with values like climate responsibility, social equity, and corporate transparency, appealing to investors seeking both financial growth and positive impact.

Target-risk portfolios are investment funds tailored to match an investor’s risk tolerance, ranging from conservative to aggressive. They maintain a fixed asset allocation, balancing stocks, bonds, and other investments to align with risk preferences, offering a structured, long-term strategy for portfolio stability and growth.

For participating members who prefer to hire an advisor to manage their portfolio, the PEP offers access to Certified Financial Planners® and a managed account service for ongoing professional management of your portfolio.