Individual Fund Portfolios

You can select any combination of the Individual Fund Portfolios Investment Options to design an investment portfolio that meets your needs, risk tolerance, and investment style. The Individual Fund Portfolios offer a wide range of investment options representing the major asset classes. The Individual Fund Portfolios are each invested in a single Underlying Investment and may be more volatile than the Age-Based and Target Portfolios.

You can lose money by investing in a portfolio. Each of the age-based, target, and individual fund portfolios involves investment risks, which are described in the Program Disclosure Statement and which should be considered before investing. For example, international investing, especially in emerging markets, has additional risks such as currency fluctuation, economic and political risks, and market volatility. Investing in small, medium, and international companies may increase the risk of fluctuations in the value of your investment and involves greater risks than investing in more established companies. The portfolios that invest in specific industries or sectors, such as real estate, have industry concentration risk. As an example, the portfolios that invest in real estate may perform poorly during a downturn in the real estate industry.

Portfolios that invest in bonds are subject to risks such as interest rate risk, credit risk, and inflation risk. In particular, as interest rates rise, the prices of bonds will generally fall, which can impact performance. It is important to note that the value of your account will fluctuate with market conditions. When you withdraw funds, you may have more or less than your actual investment. For more information on the portfolios and the underlying funds in which they invest, see the Program Disclosure Statement and each underlying fund’s prospectus.

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