THE CATHOLIC RETIREMENT SOLUTION IS HERE

Transcription

1 THE CATHOLIC RETIREMENT SOLUTION IS HERE IFC TARGET DATE AND RISK-BASED COLLECTIVE INVESTMENT FUNDS A division of Index Fund Advisors, Inc. IFC COLLECTIVE INVESTMENT FUNDS 25

2 About Investing for Catholics Investing for Catholics (IFC) is committed solving the unique needs of Catholic retirement plan sponsors and participants alike through fiduciary protection, excellent participant experiences and expected returns. These essential elements of a well-run plan are designed meet participant objectives, while incorporating the Catholic values intrinsic of the plan sponsor organization. As a division of Index Fund Advisors, Inc. (IFA), a fee-only registered investment advisor with over 2,100 clients and almost $2.56 billion in assets under management (as of September 30, 2015), IFC was launched in 2009 bring IFA s innovative thought leadership and diversified approach prudent investing in Catholic organizations. Today, IFC s socially responsible strategies have been embraced and implemented by (arch) dioceses and religious orders throughout the country. The IFC Target Date and Risk-Based Funds are available for investment by eligible qualified retirement plan trusts only. The Funds are collective investment funds (CIFs) created by the Hand Composite Employee Benefit Trust and sponsored by Hand Benefits & Trust Company, a Catholics which serves as the subadvisor the CIFs. The CIF is not a mutual fund. Its shares are not deposits of Hand Benefits & Trust Company, a BPAS company, or Investing for Catholics, a division of Index Fund Advisors, Inc., and are not insured by the Federal Deposit Insurance Corporation or any other agency. The CIF is a security which has not been registered under the Securities Act of 1933 and is exempt from investment company registration under the Investment Company Act of A division of Index Fund Advisors, Inc. V Index Fund Advisors, Inc. All Rights Reserved

3 C ATHOLIC WITHOUT COMPROMISE Faith-based investments Financial science Fiduciary prudence Finally. Investing for Catholics proudly announces its latest innovation in the Catholic retirement plan community: IFC Target Date and Risk-Based Collective Investment Funds. The CIFs are designed specifically meet the needs of Catholic retirement plans and plan sponsors by assisting plan participants in reaching their retirement goals through low-cost, diversified and risk-appropriate investments without compromising faith or expected returns. These single-fund investment solutions take the guesswork out of building and managing long-term investment strategies. Experienced & Innovative IFC, in collaboration with Hand Benefits & Trust, a BPAS Company, has developed 13 daily valued CIFs (ten Target Date and three Risk-Based), based on IFC s prudent and socially responsible investment strategies. Hand Benefits & Trust, a company founded in 1963, and a leading provider of CIFs, serves as the trustee and sponsor the CIFs. The new funds are scheduled go live January 1, 2016, and will be accessible Catholic organizations retirement plans through most recordkeeping platforms with information and quarterly holdings and monthly performance returns available via Morningstar. The IFC CIFs are an advancement in Catholic Retirement. They represent prudence, simplicity and fiduciary best practices. The CIFs incorporate time-tested investment strategies combined with a comprehensive social screening process, developed lead Catholic plan participants enhanced investment outcomes. The underlying investment vehicles IFC selects for its CIFs are built in consideration of Modern Portfolio Theory and the work of Nobel Prize winner Harry Markowitz, as well as the Efficient Market Hypothesis and the Multi Facr Model, which were both developed by Nobel Prize winner Eugene Fama. IFC currently selects socially screened sck index funds from the highly regarded Dimensional Fund Advisors, a leading mutual fund manager that provides a diversified, low-cost approach the world markets. IFC COLLECTIVE INVESTMENT FUNDS 1

4 I FC TARGET DATE FUNDS IFC s ten Target Date Funds invest in a blend of index-style mutual funds that collectively deliver a diversified and consistently age-appropriate exposure global sck and bond markets with a glide path, a buy and hold formula that creates an adjusting asset allocation become more conservative as the fund moves closer the targeted retirement date. This glide path incorporates IFC s time-tested strategy alongside the understanding of long-term expected risk and return as well as the need fuel long-term growth. The current fund offerings target invesr retirement dates in five-year increments, ranging from , with the ultimate fund landing point arriving at a static mix of 40% sck funds/60% bond funds within approximately five of retirement date. Participants can simply be matched and mapped in the Target Date Fund that most closely matches the year of retirement age, most normally at age 65 or 67. Target Date Fund Glide Path Guide % Sck Funds % Bond Funds Retirement Landing Point 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Target Date Suitable Age < >70 Allocation Years Retirement 41 or more Allocation 92/8 92/8 92/8 Sck/Bond Funds (%) (rounded) 92/8 92/8 92/ /8 90/ /11 87/ /14 83/ /18 75/ /26 66/34 5 or less 64/36 57/43 Newly Retired 55/45 43/57 Retired 40/60 2 IFC COLLECTIVE INVESTMENT FUNDS

5 I FC RISK-BASED FUNDS The three IFC Risk-Based CIFs are pre-built, designed and managed maintain an established level of diversified sck and bond indexstyle mutual funds for three distinct asset allocations: Aggressive (80% sck funds/20% bond funds), Moderate (60% sck funds/40% bond funds) and Conservative / Balanced Retirement (40% sck funds/60% bond funds). These Funds provide an easy and excellent alternative for defined benefit plans or do-it-yourself participants. % Sck Funds % Bond Funds IFC Aggressive Fund IFC Moderate Fund IFC Balanced Retirement Fund 20% 80% 40% 60% 60% 40% IFC COLLECTIVE INVESTMENT FUNDS 3

6 I FC ADVANTAGE: INDEX FUNDS, FINANCIAL SCIENCE & CATHOLIC VALUES Easy: A single fund strategy makes the IFC CIFs easy--use and a one-step solution for any retirement plan. Low-Cost: The CIFs are built with index funds, making them one of the lowest investment cost options available. Smart: The professionally managed CIFs incorporate Nobel Prize-winning research of the Fama/French Multifacr Model for expected returns and time-proven strategies for maximizing expected returns at a particular level of risk. The Multi-Facr Model identifies sources of risk and return and contributes the design of globally diversified portfolios, with a focus on exposures small, value and profitability facrs for scks, and term and default facrs for bonds. Prudent: IFC s CIFs are built in accordance with fiduciary best practices for diversification and fee transparency, while keeping costs low. Such high standards make the CIFs an excellent choice for Catholic retirement plans seeking uphold the utmost standard of care, while affording themselves a high level of fiduciary protection. Promote Good Invesr Behavior: Plan participants who are invested in professionally managed, single fund solutions are far less likely take action or worry during market volatility. The CIFs help participants rely on investing science instead of making investment decisions based on emotions. 4 IFC COLLECTIVE INVESTMENT FUNDS

7 Catholic Values: The sck funds included in the IFC Target Date and Risk-Based Fund Series closely match the guidelines for Bishops (USCCB). The funds adhere explicit and objective rules for implementing a Catholic-Values strategy. There is no ambiguity, no room for interpretation as what does or does not qualify for investment just a straightforward way screen companies by excluding investment in companies that: Directly participate in abortions, or develop or manufacture abortive agents or contraceptives; Earn at least 20% of their tal annual revenue through the production and/or sale of conventional or nuclear weapons, their weapon systems, or critical components of these products, or the provision of weapon systems support and service; Are engaged in certain for profit business activities in or with the Republic of the Sudan; Earn at least 15% of their tal annual revenue through the production and/or sale of bacco or alcohol products, or key products or raw materials necessary for their production; Earn at least 20% of their tal annual revenue from certain gambling activities, the production of goods used exclusively for gambling, or the provision of certain services in casinos that are fundamental gambling operations; Earn at least 15% of their tal annual revenue from the rental, sale, distribution or production of pornographic materials, or the ownership or operation of adult entertainment establishments; Are involved in the production or manufacture of landmines, cluster munitions, or the essential components of these products; Have had major recent controversies relating child labor infractions in the U.S. or abroad; and/or Conduct stem cell research with cells derived from human embryos or fetal tissue, use fetal cell lines in the development of vaccines and other biologics such as therapeutic proteins and gene therapy products, or develop products for scientific research specifically on embryonic or fetal stem cells, such as technology that isolates or regulates the growth and proliferation of stem cells. IFC COLLECTIVE INVESTMENT FUNDS 5

8 CUSIP: 41024C273 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 92% / 8% 0.66% (or $6.60 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2060 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2060 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date Index -7.43% -4.74% -2.77% 9.00% N/A N/A N/A Blended Benchmark -7.63% -6.04% -3.50% 7.88% 8.49% 5.70% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 54% S&P Global REIT NR USD: 10% MSCI World ex USA NR USD: 18% MSCI EM NR USD: 10% BofAML US Treasury Bill 6 Mon TR USD: 2% Citi WGBI 1-3 Yr Hdg USD: 2% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 2% Citi WGBI 1-5 Yr Hdg USD: 2% TARGET DATE FUND HOLDINGS U.S. Sck Funds 54.00% International Sck Funds 18.00% Emerging Markets Sck Funds 10.00% Global Real Estate Funds 10.00% Global Bond Funds 8.00% 6 IFC COLLECTIVE INVESTMENT FUNDS

9 CUSIP: 41024C299 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 92% / 8% 0.66% (or $6.60 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2055 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2055 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date Index -7.43% -4.74% -2.77% 9.00% N/A N/A N/A Blended Benchmark -7.63% -6.04% -3.50% 7.88% 8.49% 5.70% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 54% S&P Global REIT NR USD: 10% MSCI World ex USA NR USD: 18% MSCI EM NR USD: 10% BofAML US Treasury Bill 6 Mon TR USD: 2% Citi WGBI 1-3 Yr Hdg USD: 2% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 2% Citi WGBI 1-5 Yr Hdg USD: 2% TARGET DATE FUND HOLDINGS U.S. Sck Funds 54.00% International Sck Funds 18.00% Emerging Markets Sck Funds 10.00% Global Real Estate Funds 10.00% Global Bond Funds 8.00% IFC COLLECTIVE INVESTMENT FUNDS 7

10 CUSIP: 41024C323 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 92% / 8% 0.66% (or $6.60 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2050 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2050 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2050 Index -7.22% -4.58% -2.59% 8.80% N/A N/A N/A Blended Benchmark -7.63% -6.04% -3.50% 7.88% 8.49% 5.70% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 54% S&P Global REIT NR USD: 10% MSCI World ex USA NR USD: 18% MSCI EM NR USD: 10% BofAML US Treasury Bill 6 Mon TR USD: 2% Citi WGBI 1-3 Yr Hdg USD: 2% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 2% Citi WGBI 1-5 Yr Hdg USD: 2% TARGET DATE FUND HOLDINGS U.S. Sck Funds 54.00% International Sck Funds 18.00% Emerging Markets Sck Funds 10.00% Global Real Estate Funds 10.00% Global Bond Funds 8.00% 8 IFC COLLECTIVE INVESTMENT FUNDS

11 CUSIP: 41024C349 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 92% / 8% 0.65% (or $6.50 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2045 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2045 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2045 Index -6.93% -4.38% -2.42% 8.54% 8.83% 5.30% N/A Blended Benchmark -7.63% -6.04% -3.50% 7.88% 8.49% 5.70% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 54% S&P Global REIT NR USD: 10% MSCI World ex USA NR USD: 18% MSCI EM NR USD: 10% BofAML US Treasury Bill 6 Mon TR USD: 2% Citi WGBI 1-3 Yr Hdg USD: 2% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 2% Citi WGBI 1-5 Yr Hdg USD: 2% TARGET DATE FUND HOLDINGS U.S. Sck Funds 54.00% International Sck Funds 18.00% Emerging Markets Sck Funds 10.00% Global Real Estate Funds 10.00% Global Bond Funds 8.00% IFC COLLECTIVE INVESTMENT FUNDS 9

12 CUSIP: 41024C364 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 89% / 11% 0.65% (or $6.50 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2040 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2040 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2040 Index -6.60% -4.16% -2.20% 8.28% 8.67% 5.34% N/A Blended Benchmark -7.35% -5.75% -3.27% 7.85% 8.45% 5.71% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 53% S&P Global REIT NR USD: 9% MSCI World ex USA NR USD: 18% MSCI EM NR USD: 9% BofAML US Treasury Bill 6 Mon TR USD: 2% Citi WGBI 1-3 Yr Hdg USD: 3% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 3% Citi WGBI 1-5 Yr Hdg USD: 3% TARGET DATE FUND HOLDINGS U.S. Sck Funds 53.00% International Sck Funds 18.00% Emerging Markets Sck Funds 9.00% Global Real Estate Funds 9.00% Global Bond Funds 11.00% 10 IFC COLLECTIVE INVESTMENT FUNDS

13 CUSIP: 41024C380 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 86% / 14% 0.65% (or $6.50 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2035 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2035 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2035 Index -6.20% -3.90% -1.96% 7.96% 8.41% 5.30% N/A Blended Benchmark -7.09% -5.54% -3.12% 7.63% 8.25% 5.60% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 51% S&P Global REIT NR USD: 9% MSCI World ex USA NR USD: 17% MSCI EM NR USD: 9% BofAML US Treasury Bill 6 Mon TR USD: 3% Citi WGBI 1-3 Yr Hdg USD: 4% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 4% Citi WGBI 1-5 Yr Hdg USD: 3% TARGET DATE FUND HOLDINGS U.S. Sck Funds 51.00% International Sck Funds 17.00% Emerging Markets Sck Funds 9.00% Real Estate Funds 9.00% Bond Funds 14.00% IFC COLLECTIVE INVESTMENT FUNDS 11

14 CUSIP: 41024C414 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 82% / 18% 0.64% (or $6.40 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2030 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2030 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2030 Index -5.68% -3.56% -1.67% 7.50% 8.04% 5.27% N/A Blended Benchmark -6.82% -5.28% -2.98% 7.32% 7.96% 5.51% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 49% S&P Global REIT NR USD: 8% MSCI World ex USA NR USD: 16% MSCI EM NR USD: 9% BofAML US Treasury Bill 6 Mon TR USD: 4% Citi WGBI 1-3 Yr Hdg USD: 5% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 5% Citi WGBI 1-5 Yr Hdg USD: 4% TARGET DATE FUND HOLDINGS U.S. Sck Funds 49.00% International Sck Funds 16.00% Emerging Markets Sck Funds 9.00% Global Real Estate Funds 8.00% Global Bond Funds 18.00% 12 IFC COLLECTIVE INVESTMENT FUNDS

15 CUSIP: 41024C430 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 74% / 26% 0.63% (or $6.30 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2025 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2025 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2025 Index -5.11% -3.19% -1.36% 6.89% 7.59% 5.21% N/A Blended Benchmark -6.14% -4.67% -2.57% 6.86% 7.51% 5.38% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 44% S&P Global REIT NR USD: 7% MSCI World ex USA NR USD: 15% MSCI EM NR USD: 8% BofAML US Treasury Bill 6 Mon TR USD: 6% Citi WGBI 1-3 Yr Hdg USD: 7% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 7% Citi WGBI 1-5 Yr Hdg USD: 6% TARGET DATE FUND HOLDINGS U.S. Sck Funds 44.00% International Sck Funds 15.00% Emerging Markets Sck Funds 8.00% Global Real Estate Funds 7.00% Global Bond Funds 26.00% IFC COLLECTIVE INVESTMENT FUNDS 13

16 CUSIP: 41024C455 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 64% / 36% 0.62% (or $6.20 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2020 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2020 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2020 Index -4.47% -2.77% -0.86% 6.30% 7.09% 5.10% N/A Blended Benchmark -5.27% -3.91% -2.05% 6.17% 6.81% 5.15% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 38% S&P Global REIT NR USD: 6% MSCI World ex USA NR USD: 13% MSCI EM NR USD: 7% BofAML US Treasury Bill 6 Mon TR USD: 9% Citi WGBI 1-3 Yr Hdg USD: 9% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 9% Citi WGBI 1-5 Yr Hdg USD: 9% TARGET DATE FUND HOLDINGS U.S. Sck Funds 38.00% International Sck Funds 13.00% Emerging Markets Sck Funds 7.00% Global Real Estate Funds 6.00% Global Bond Funds 36.00% 14 IFC COLLECTIVE INVESTMENT FUNDS

17 CUSIP: 41024C471 Live Date: As of Landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. Current Sck/Bond Funds (%) 55% / 45% 0.60% (or $6.00 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Target Date Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The objective of the IFC Target Date Fund 2015 R1 (Fund) is systematically grow and protect retirement savings in a manner consistent with the Fund's current asset allocation. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. Invesrs are encouraged contribute regularly and remain in the Fund regardless of market conditions. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will incrementally increase exposure bond funds as the Fund s target date draws nearer. Within approximately ve after its target date, the Fund will reach its Landing Point, and shift a static IFC Balanced Retirement Fund with a xed allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Target Date Fund 2015 R1* N/A N/A N/A N/A N/A N/A N/A S&P Target Date 2015 Index -3.75% -2.32% -0.52% 5.50% 6.42% 4.90% N/A Blended Benchmark -4.40% -3.21% -1.52% 5.44% 6.06% 4.91% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 32% S&P Global REIT NR USD: 6% MSCI World ex USA NR USD: 11% MSCI EM NR USD: 6% BofAML US Treasury Bill 6 Mon TR USD: 11% Citi WGBI 1-3 Yr Hdg USD: 11% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 12% Citi WGBI 1-5 Yr Hdg USD: 11% TARGET DATE FUND HOLDINGS U.S. Sck Funds 32.00% International Sck Funds 11.00% Emerging Markets Sck Funds 6.00% Global Real Estate Funds 6.00% Global Bond Funds 45.00% IFC COLLECTIVE INVESTMENT FUNDS 15

18 CUSIP: 41024C216 Live Date: As of Current Sck/Bond Funds (%) 40% / 60% 0.58% (or $5.80 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Risk-based Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The investment objective of the IFC Balanced Retirement Fund R1 (Fund) is seek tal return consisting of capital appreciation and current income. It is suitable for invesrs who are willing accept a moderately conservative degree of market volatility commensurate with the fund's 40% allocation the global sck market in order achieve moderately conservative portfolio growth. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will remain static with a consistent allocation of 40% sck funds and 60% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Balanced Retirement Fund R1* N/A N/A N/A N/A N/A N/A N/A Morningstar Moderately Conservative Target Risk -3.00% -2.38% -1.43% 3.75% 5.27% 5.09% N/A Blended Benchmark -3.06% -1.97% -0.67% 4.03% 4.36% 4.29% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 24% S&P Global REIT NR USD: 4% MSCI World ex USA NR USD: 8% MSCI EM NR USD: 4% BofAML US Treasury Bill 6 Mon TR USD: 15% Citi WGBI 1-3 Yr Hdg USD: 15% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 15% Citi WGBI 1-5 Yr Hdg USD: 15% FUND HOLDINGS U.S. Sck Funds 24.00% International Sck Funds 8.00% Emerging Markets Sck Funds 4.00% Global Real Estate Funds 4.00% Global Bond Funds 60.00% 16 IFC COLLECTIVE INVESTMENT FUNDS

19 CUSIP: 41024C232 Live Date: As of Current Sck/Bond Funds (%) 60% / 40% 0.61% (or $6.10 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Risk-based Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The investment objective of the IFC Moderate R1 (Fund) is seek tal return consisting of capital appreciation and current income. It is suitable for invesrs who are willing accept a moderate degree of market volatility commensurate with the fund's 60% allocation the global sck market in order achieve moderate portfolio growth. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will remain static with a consistent allocation of 60% sck funds and 40% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Moderate Fund R1* N/A N/A N/A N/A N/A N/A N/A Morningstar Moderately Target Risk -5.12% -4.03% -2.91% 5.25% 6.61% 5.59% N/A Blended Benchmark -4.80% -3.46% -1.67% 5.60% 6.01% 4.96% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 32% S&P Global REIT NR USD: 6% MSCI World ex USA NR USD: 12% MSCI EM NR USD: 6% BofAML US Treasury Bill 6 Mon TR USD: 10% Citi WGBI 1-3 Yr Hdg USD: 10% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 10% Citi WGBI 1-5 Yr Hdg USD: 10% FUND HOLDINGS U.S. Sck Funds 36.00% International Sck Funds 12.00% Emerging Markets Sck Funds 6.00% Global Real Estate Funds 6.00% Global Bond Funds 40.00% IFC COLLECTIVE INVESTMENT FUNDS 17

20 CUSIP: 41024C257 Live Date: As of Current Sck/Bond Funds (%) 80% / 20% 0.64% (or $6.40 per *Total Expense Ratio (TER) includes 0 bps of service fees payable The IFC Risk-based Funds are collective investment funds Catholics (IFC) which serves as the sub-advisor the CIFs. The investment objective of the IFC Aggressive R1 (Fund) is seek tal return consisting of capital appreciation and current income. It is suitable for invesrs who are willing accept a relatively high degree of market volatility commensurate with the fund's 80% allocation the global sck market in order achieve a high level of expected portfolio growth over the long term. This Fund is a globally diversi ed investment ol. It is comprised of low-cost, index-style Multi-facr Model. The Fund is comprised of U.S., International and Emerging Markets sck funds, global bond funds and Real Estate Investment Trusts (REITs). The sck funds underlying asset mix will remain static with a consistent allocation of 80% sck funds and 20% bond funds. Fund / Benchmark Quarter Year Date One Year Three Years Five Years Ten Years IFC Aggressive Fund R1* N/A N/A N/A N/A N/A N/A N/A Morningstar Moderately Aggressive Target Risk -7.29% -5.42% -4.27% 6.27% 7.77% 5.79% N/A Blended Benchmark -6.55% -4.98% -2.72% 7.15% 7.64% 5.48% N/A * hisrical performance is limited, tal returns are currently unavailable. Blended Benchmark Composition: Russell 3000 TR USD: 48% S&P Global REIT NR USD: 8% MSCI World ex USA NR USD: 16% MSCI EM NR USD: 8% BofAML US Treasury Bill 6 Mon TR USD: 5% Citi WGBI 1-3 Yr Hdg USD: 5% BofAML US Trsy/Agcs AAA 1-5 Yr TR USD: 5% Citi WGBI 1-5 Yr Hdg USD: 5% FUND HOLDINGS U.S. Sck Funds 48.00% International Sck Funds 16.00% Emerging Markets Sck Funds 8.00% Global Real Estate Funds 8.00% Global Bond Funds 20.00% 18 IFC COLLECTIVE INVESTMENT FUNDS

21 GLIDE PATH A glide path refers a formula that de nes the asset allocation mix of a target date fund, based on the number of anticipated retirement or target date. As seen below, the Fund s glide path creates an asset allocation plan that becomes more conservative in its chosen securities as the Fund moves closer its target date. The landing point is the IFC Balanced Retirement Fund (40% sck funds & 60% bond funds) approximately ve in retirement. The Target Date Fund allocations are speci cally determined for each ve-year interval as denoted by the Fund labels, with glide path rebalancing occur annually. The glide path allocations are subject change in the future. This glide path is for illustrative purposes only and is not meant re ect an actual portfolio. This fund is designed for invesrs who will withdraw gradually from their investments upon retirement. MANAGER The Funds are built and managed by Investing for Catholics (IFC), a division of Index Fund Advisors, Inc. (IFA), a registered investment adviser with the United States Securities and Exchange Commission. Founded in 1999, IFA provides investment services individuals, trusts, corporations, non-pro ts, and public and private institutions. The IFC Target Date Fund Series is designed meet the unique needs of Catholic invesrs, providing prudent, diversi ed, low-cost sck funds that closely match the USCCB s guidelines for socially responsible investing. IFC builds each of its Funds with faith-consistent investments from the highly regarded Dimensional Fund Advisors (DFA). IFC's Target Date and Risk-Based Funds are suitable for de ned bene t and de ned contribution plan sponsors, including church plans, and quali ed retirement plans. To learn more, visit or Glide Path Guide 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Target Date Allocation % Sck Funds % Bond Funds Retirement Landing Point 2010 Suitable Age < >70 Years Retirement 41 or more or less Newly Retired Retired Allocation 92/8 92/8 92/8 Sck/Bond Funds (%) (rounded) 92/8 92/8 92/8 92/8 90/10 89/11 87/13 86/14 83/17 82/18 75/24 74/26 66/34 64/36 57/43 55/45 43/57 40/60 IFC'S CATHOLIC VALUES-BASED INVESTMENTS The Catholic Values-based funds exclude investment in companies that (1) directly participate in abortions, or develop or manufacture abortive agents or contraceptives; (2) earn at least 20% of their tal annual revenue through the production and/or sale of conventional or nuclear weapons, their weapon systems, or critical components of these products, or the provision of weapon systems support and service; (3) are engaged in certain for pro t business activities in or with the Republic of the Sudan; (4) earn at least 15% of their tal annual revenue through the production and/or sale of bacco or alcohol products, or key products or raw materials necessary for their production; (5) earn at least 20% of their tal annual revenue from certain gambling activities, the production of goods used exclusively for gambling, or the provision of certain services in casinos that are fundamental gambling operations; (6) earn at least 15% of their tal annual revenue from the rental, sale, distribution or production of pornographic materials, or the ownership or operation of adult entertainment establishments; (7) are involved in the production or manufacture of landmines, cluster munitions, or the essential components of these products; (8) have had major recent controversies relating child labor infractions in the U.S. or abroad; and/or (9) are involved in stem cell research. page 2 of 3 IFC COLLECTIVE INVESTMENT FUNDS 19

22 DISCLOSURES This investment fund is not a guaranteed investment. Participants or bene ciaries may lose money by investing in the Target Date Series, including losses near and following retirement, and there is no guarantee that the investment will provide adequate retirement income. Stated asset allocations may be subject change. The CIF is not a mutual fund. Its shares are not deposits of Hand Bene ts & Trust Company, a BPAS company, or Investing for Catholics, a division of Index Fund Advisors, Inc., and are not insured by the Federal Deposit Insurance Corporation or any other agency. The CIF is a security which has not been registered under the Securities Act of 1933 and is exempt from investment company registration under the Investment Company Act of For complete sources, disclosures and updates about IFC s method for calculating and reporting hisrical performance, please visit ifa.com/disclosures, or receive a printed version, call The performance quoted here does not guarantee future results. As market conditions uctuate, the investment return and principal value of any investment will change. Diversi cation may not protect against market risk. There are risks involved with investing, including possible loss of principal. DEFINITON OF TERMS Principal Risks: Any of the principal risks listed below may adversely affect the Fund s net asset value, performance and ability meet its investment objective. Suitability: Invesrs are expected select investments whose investment strategies are consistent with their nancial goals and risk lerance. Target Date: Targe date funds, also known as lifecycle funds, shift their asset allocation become more conservative as the target retirement year approaches. Still, investment in target date funds may lose value near, at, or after the target retirement date, and there is no guarantee they will provide adequate income at retirement. Long-Term Outlook and Projections: The investment is intended be held for a substantial period of time, and invesrs should lerate uctuations in their investment s value. Underlying Fund/Fund of Funds: A portfolio s risks are closely associated with the risks of the securities and other investments held by the underlying or subsidiary funds, and the ability of the portfolio meet its investment objective likewise depends on the ability of the underlying funds meet their objectives. Investment in other funds may subject the portfolio higher costs than owning the underlying securities directly because of their management fees. Foreign Securities: Investments in foreign securities may be subject increased volatility as the value of these securities can change more rapidly and extremely than can the value of U.S. securities. Foreign securities are subject increased issuer risk because foreign issuers may not experience the same degree of regulation as U.S. issuers do and are held different reporting, accounting, and auditing standards. In addition, foreign securities are subject increased costs because there are generally higher commission rates on transactions, transfer taxes, higher cusdial costs, and the potential for foreign tax charges on dividend and interest payments. Many foreign markets are relatively small, and securities issued in less-developed countries face the risks of nationalization, expropriation or con scary taxation, and adverse changes in investment or exchange control regulations, including suspension of the ability transfer currency from a country. Economic, political, social, or diplomatic developments can also negatively impact performance. Fixed-Income Securities: The value of xed-income or debt securities may be susceptible general movements in the bond market and are subject interest-rate and credit risk. New Fund: Investments with a limited hisry of operations may be subject the risk that they do not grow an economically viable size in order continue operations. Risk: Before investing in any investment portfolio, the client and the nancial professional should carefully consider facrs in addition age or retirement date including client investment objectives, time horizon, risk lerance, fees, personal circumstances and complete nancial situation. QDIA: Quali ed Default Investment Alternative (QDIA) provides duciary relief for sponsors of ERISA plans who aumatically place participants (who do not speci cally choose their investments) in alternatives such as target date funds or balanced fund investments. QDIAs are intended help ensure that plan participants who may not be comfortable or knowledgeable about making investment decisions are invested in well diversi ed investment portfolios with appropriate time horizons. The participant or bene ciaries on whose behalf assets are invested in a QDIA have the right direct the investment any other investment alternative under the plan, subject any fees or limitation that may apple such transfer under the plan. Fama/French Multi-Facr Model: The Fama/French Multi-Facr Model explains the sources of expected returns for both scks and bonds. It builds upon William Sharpe's Capital Asset Pricing Model which concludes a portfolio's expected return is determined by its sensitivity the tal market portfolio. Eugene Fama and Kenneth French, using long-term hisrical research gathered at the Center for Research in Security Prices at the University of Chicago, identi ed additional risk premiums Sharpe's market premium. The two concluded that a portfolio's sensitivity priced risk facrs such as company size and book--market ratio also impacted a portfolio's expected return. Fama and French continue re ne their research, having recently added an additional facr for explaining expected returns, gross pro tability. For bonds, Fama and French identi ed that expected return is explained by the term or duration of the debt instrument, as well as its quality or credit rating. Their ongoing research informs the development of investment strategies of Dimensional Fund Advisors (DFA), a highly regarded mutual fund company. Their ndings also inform the overall portfolio construction and implementation practices of Investing for Catholics, a division of Index Fund Advisors, Inc Von Karman Avenue, Suite 150 Irvine, CA Tel: Von Karman Avenue Fax: Toll Free: investingforcatholics.com ifa.com Suite 150 Phone: Irvine, CA A division of Index Fund Advisors, Inc. page 3 of 3 20 IFC COLLECTIVE INVESTMENT FUNDS

23 C ATHOLIC WITHOUT COMPROMISE Faith-based investments Financial science Fiduciary prudence Finally. IFC COLLECTIVE INVESTMENT FUNDS 21

24 A division of Index Fund Advisors, Inc Von Karman Avenue Suite 150 Irvine, CA Toll Free: Phone: IFC COLLECTIVE INVESTMENT FUNDS