Investment Options
Active or Passive Managed Investment Options
MSRP Investors who choose the traditional approach of determining their own investor profile and asset allocation plan may now implement their investment strategy using either active and/or passive investment managed options.
Active funds may appeal to investors who prefer to take an active role in their investment selection and enjoy picking and choosing individual funds and fund managers to create a diversified portfolio.
Passive funds may appeal to investors who are looking for mutual funds that normally carry lower than average investment fees and track the markets per their selected index to create a diversified portfolio. Of course, participants may mix and match active and passive investment options and the target-date retirement funds.
Responsible Investing Option
This option provides MSRP participants the opportunity to invest in a fund that weighs positive environmental, social and governance (ESG) performance of companies, and excludes certain sectors perceived to pose long-term risk or are deemed to have a negative impact on society. Follow this link for more information on Responsible Investment.
Bond Investments
About Bond Investing-- When you need money you might apply for a loan. When companies and governments need money they often issue bonds-loans that can be purchased for investment. Bond funds are mutual funds of bonds, a group of bonds purchased as one fund. Bond funds typically deliver higher returns than CDs, money market funds, and bank accounts, but may have higher expense ratios than a comparable stock mutual fund. As with any investment, bond funds are subject to a number of investment risks including credit risk, interest rate risk, and prepayment risk. Diversifying - or spreading - your risk across a broad range of asset classes can help reduce your overall risk of investment losses.
The Investment Contract Pool (ICP)
The ICP is a portfolio of investment contracts placed with qualified fixed income managers/underwriters and insurance companies. Some contracts have a fixed rate of interest for the length of the contract while others reset the rate of interest on a regular basis. The interest rate is based on earnings of underlying investments at that time. Accounts are credited with a monthly blended rate. The ICP is available for MSRP participants in the 457(b), 401(k) and 401(a) plans only.
For additional information about the ICP management, operation, interest rates, performance and background please select the ICP Information Page link.