* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download CIT Investment Discl..
Mark-to-market accounting wikipedia , lookup
Leveraged buyout wikipedia , lookup
History of private equity and venture capital wikipedia , lookup
Stock trader wikipedia , lookup
Interbank lending market wikipedia , lookup
Private equity in the 1980s wikipedia , lookup
Special-purpose acquisition company wikipedia , lookup
International investment agreement wikipedia , lookup
Corporate venture capital wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
Private equity in the 2000s wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Investment banking wikipedia , lookup
Private equity wikipedia , lookup
Early history of private equity wikipedia , lookup
Money market fund wikipedia , lookup
Private equity secondary market wikipedia , lookup
Socially responsible investing wikipedia , lookup
Private money investing wikipedia , lookup
Mutual fund wikipedia , lookup
Method Collective Investment Trust R-2 Share Class for Participating Pension and Profit Sharing Trusts EMPLOYEE BENEFIT PLAN FUNDS SUMMARY IMPORTANT INFORMATION Alta Trust Company, Trustee Investment Products: Not FDIC Insured ● No Bank Guarantee ● May Lose Value This document discloses information pertaining to the objectives and operations of collective investment funds (the “Funds”) comprising the Method Collective Investment Trust for Participating Pension and Profit Sharing Trusts (the “Trust”). Each Fund represents an option provided to you by your employer through your employer’s pension or profit sharing plan. It is important that you review this information prior to investing. PLAN COLLECTIVE INVESTMENT FUNDS FOR EMPLOYEE BENEFIT PLANS What are the Method Collective Investment Funds? The Funds are collective investment funds that are designed to serve the investment needs of tax-qualified, employer sponsored retirement plans. Alta Trust Company (“Alta Trust”) serves as Trustee of the Trust. Method Enterprises, LLC (“Method”) serves as the investment manager to each Fund, and PineBridge Investments LLC (“PineBridge”) serves as sub-adviser to Method with respect to each Fund. The Funds are not mutual funds, and thus, are not registered under the Investment Company Act of 1940, as amended. The Funds’ units are not securities registered under the Securities Act of 1933, as amended or applicable securities laws of any state or other jurisdiction. As a result, Fund unit holders do not have many of the legal protections provided to mutual fund shareholders and holders of registered securities. In addition, the Fund’s units are not publicly traded on any exchange or over-thecounter market and the unit values of each Fund are not published in newspapers and other media. The unit values of each Fund will fluctuate, and the market value of the Fund will decrease or increase in accordance with changes in value of the securities and other financial instruments held by the Fund. There is no guarantee that any Fund will achieve its investment objective. Units in the Funds are not deposits or obligations of, or endorsed or guaranteed by, Alta Trust, Method or PineBridge, or their affiliates, and Fund units are not insured by the Federal Deposit Insurance Corporation or any other organization. The Funds are also subject to investment risks, including possible loss of the principal amount invested. Fund Trustee Alta Trust is a South Dakota state chartered trust company that provides retirement plan services to plan sponsors throughout the USA. In its capacity as Trustee of the Trust, Alta Trust Company may provide investment management, trust and custody services for the Funds. Alta Trust does not provide investment advice or other services to employers, retirement plan participants or accountholders. Investment Manager & Sub-Adviser Each of Method and PineBridge is registered with the Securities and Exchange Commission as an investment adviser. With respect to the Trust and any plan participating in a Fund each of Method and PineBridge is an investment manager, as that term is defined in Section 3(38) of Employee Retirement Income Security Act of 1974 (“ERISA”). All of the assets of the Funds will be invested according to corresponding strategies and investment models developed and provided by Method and PineBridge. Who May Want to Invest The Funds may be an appropriate investment for investors seeking professional management of their retirement account assets. Fund Investments and Risks of Investing in the Funds Under normal market conditions, each Fund invests primarily in US and foreign stocks, bonds, private investment funds and cash equivalents primarily through a combination of direct investments, mutual funds, exchange-traded funds (ETFs), bonds, fixed income investments and money market vehicles that, taken as a whole, reflect the investment allocation strategy of the Fund. The Funds may also enter into repurchase and reverse repurchase agreements on securities authorized for purchase or sale by the Fund, as well as lend securities. An investment in a Fund is subject to various risks. For a Fund that invests in equities, the principal risk is stock market risk, that is, the risk that the price of the stocks in which the Fund invests may fluctuate or fall in response to economic events or trends. The prices of bonds in which a Fund may invest may fall because of a rise in interest rates. Investments in foreign securities are subject to certain special risks and considerations, including potentially less liquidity and greater price volatility than securities traded in the US markets. In addition, currency risk must also be considered. Foreign securities are denominated in foreign currencies, which may change in value in relation to the U.S. dollar. Investments in emerging markets may involve heightened risks relating to those same factors affecting foreign securities, as well as lower trading volume. Investments in smaller companies and narrowly focused investments, including many alternative investments, typically exhibit higher volatility. Investments in a collective investment pool, such as a mutual fund, ETF or private investment fund (e.g., a hedge fund, private equity fund or venture capital fund) are subject to the risks associated with the securities and other financial instruments held by the pool. In addition, any Fund that invests in a collective investment pool is responsible for the fees and expenses charged by that pool. Investments in private investment funds typically restrict investors’ redemption rights, which may limit which investments a Fund can sell from its portfolio in the event of unexpected redemption requests. Each Fund must maintain cash balances to meet redemption requests, which may lower overall fund performance. There is no assurance that the strategies used to manage any Fund will maximize returns or minimize risk. In addition to these risks mentioned above there may be other risks associated with each security type. Method Collective Investment Trust (continued) EMPLOYEE BENEFIT PLAN FUNDS SUMMARY IMPORTANT INFORMATION Objectives and Allocation Strategies of the Funds The investment objective and allocation strategy of each of the Funds are: Method Conservative Objective: This portfolio’s dual objectives are conservation of principal with potential appreciation. Allocation Strategy: It is a global strategy that invests primarily in corporate and government bonds of various countries, as well as cash instruments and has a modest exposure to global stocks for potential appreciation and to protect against inflation. It also may have limited investments in various alternative strategies, such as real estate, hedge funds, private equity, and commodities. Method Balanced Asset Class Method Conservative Range Target Equity 10-45% 30% Fixed Income 40-80% 60% Alternatives 0-16% 10% Cash 0-10% Asset Class Objective: This portfolio’s objective is a balance between growth and conservation of principal. Method Balanced Range Target Allocation Strategy: The portfolio invests primarily in global stocks as well as global corporate and government bonds and cash equivalents designed to stabilize the portfolio during large market swings and to provide diversification in down markets. It also may have limited investments in various alternative strategies, such as real estate, hedge funds, private equity, and commodities. Equity 25-65% 45% Fixed Income 20-60% 43% Alternatives 0-18% 12% Cash 0-10% Method Moderate Growth Asset Class Objective:This portfolio’s objective is to provide capital appreciation. Allocation Strategy: The portfolio invests primarily in global equities with a modest exposure to global bonds and cash equivalents to provide stability in a down market. It also may have limited investments in various alternative strategies, such as real estate, hedge funds, private equity, and commodities. Method Growth Objective: This portfolio’s objective is to provide long-term capital growth. Allocation Strategy: The portfolio invests primarily in global stocks and various alternatives strategies, such as real estate, hedge funds, private equity, and commodities. It will also invest in global corporate and government bonds and cash equivalents designed to stabilize the portfolio during large market swings and to provide diversification in down markets. Method Moderate Growth Range Target Equity 35-75% 58% Fixed Income 10-45% 28% Alternatives 0-20% 14% Cash 0-10% Asset Class Method Growth Range Target 42.5-85% 68% Fixed Income 5-30% 16% Alternatives 0-22% 16% Cash 0-10% Equity Method Aggressive Growth Objective: This portfolio’s objective is to provide long-term capital growth. Allocation Strategy: The portfolio invests primarily in global stocks and various alternatives strategies, such as real estate, hedge funds, private equity, and commodities. It may invest in global corporate and government bonds and cash equivalents designed to stabilize the portfolio during large market swings and to provide diversification in down markets. Asset Class Method Aggressive Range Target 50-100% 75% Fixed Income 0-20% 7% Alternatives 0-24% 18% Cash 0-10% Equity Method Collective Investment Trust (continued) EMPLOYEE BENEFIT PLAN FUNDS SUMMARY IMPORTANT INFORMATION Expenses of the Funds Each of the Trustee Fee and Service Fee with respect to each Fund and share class will be paid to the Trustee from the assets of such Fund. Each is calculated and accrued daily and paid monthly in arrears. Each of the Trustee Fee and Service Fee is calculated by multiplying the daily rate corresponding to the Fund and share class based on the annual rates in the chart below to the value of the assets held in each Fund and allocated to such share class as of such day. Trustee Fee and Fees payable to Method and PineBridge: The Trustee Fee will be paid to the Trustee as compensation for its management and administration of the Fund. From the Trustee Fee, the Trustee shall pay a fee to Method for the purpose of providing investment advisory services to the Trustee with respect to one or more Funds. The Trustee will pay Method between 0.50% and 0.62% of the assets of the Funds. From the fees that Method receives, Method shall pay a fee to PineBridge for providing sub-advisory services. Each of Method and PineBridge shall provide investment advice as a fiduciary to the participating plan solely with respect to the assets of the participating invested in such Fund or Funds. Service Fee: The Service Fee will be paid to the plan custodian. Fund Name Method Conservative R-2 Method Balanced R-2 Method Moderate Growth R-2 Method Growth R-2 Method Aggressive Growth R-2 Trustee Fee .70% .70% .70% .70% .70% Service Fee .25% .25% .25% .25% .25% Total Fund Fee .95% .95% .95% .95% .95% Sales Commissions and Redemption Fees There are no sales commissions or redemption fees charged for purchases and sales of units in the Funds. Other Expenses The Trustee shall pay from the assets of the Funds all other expenses of the Trust (“Other Expenses”). Other Expenses include fund accounting, audit, transfer agency, custody of Trust assets, legal services and annual report preparation and distribution, but do not include the Trustee Fee or the Service Fee. All Other Expenses shall be allocated to a Fund and share class as provided by the Declaration of Trust. Each Fund investing in a collective investment pool, such as a mutual fund, exchange traded fund, hedge fund, private equity fund or venture capital fund, will be responsible for the fees and expenses charged by that collective investment pool. Other Expenses with respect to each Fund, other than Fund portfolio transaction costs, are expected each year to be between 0.10% and 0.25% of Fund assets. If a mutual fund investment held in a Fund charges a 12b-1 fee, shareholder servicing fee, or other similar fee, as disclosed in the prospectus, and remits such fee to the Trustee, the Trustee will remit to the Fund, for the benefit of the Participating Trusts, the amount of such fees. Aggregate Fees Total expected aggregate fees for each fund are as follows: Share Class R-2 Total Estimated Expense Ratio 1.05% to 1.20% Effective on $1,000 Annually $10.05 to $12.00 Participant Notice and Disclosure The Declaration of Trust for the Trust describes the procedures for admission to and withdrawal from a Fund. The Declaration of Trust should be read in conjunction with this information statement and is hereby incorporated by reference. The information contained in this information statement is for informational purposes only and does not provide legal or tax advice. Any taxrelated discussion contained in this information statement is not intended or written to be used, and cannot be used, for the purpose of (a) avoiding tax penalties or (b) promoting, marketing or recommending to any other party any transaction or matter addressed in this information statement. Before investing in any Fund, please consider the Fund’s investment objective, strategies, risks, fees and expenses, and consult with your financial, legal and professional tax advisers. Each Fund is operated by a person who has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and therefore, is not subject to registration or regulation as a commodity pool operator under that act. May 31, 2012 2113434.1