TERADYNE 401K SAVINGS PLAN CHANGES

Transcription

1 Because Technology Never Stops TERADYNE 401K SAVINGS PLAN CHANGES The information contained in this presentation has been provided by Teradyne, Inc. and is solely the responsibility of Teradyne, Inc.

2 WHY ARE THESE 401K CHANGES GOOD FOR YOU? The upcoming 401k changes enhance the savings plan on behalf of the participants by reducing fees, increasing the potential returns and streamlining asset allocations. Furthermore, there is now increased transparency across transactions. All the while, maintaining full freedom of choice for individual investment preferences. 2

3 WHAT S HAPPENING? 1. We are streamlining the investment lineup Reducing Core Funds from 18 to 8 Strong emphasis on Target date funds Maintain full flexibility through the Brokerage window 2. New investment offerings have higher potential fund performance 3. Reduced fees to plan participants Increased fee transparency, now visible in quarterly statements Lower admin fees ~10% 4. SEI, an Institutional Money Manager, will select, manage and monitor the underlying fund managers and investments 3

4 WHO IS SEI? A large well established Fiduciary and Money Management firm that services mid to large institutional clients The Teradyne Fiduciary Committee looked at the other top asset management companies including: Mercer, Towers Watson, Aon Hewitt, Russell, JP Morgan These companies provide a form of delegated asset management/fiduciary responsibility They use their vast purchasing power and investment expertise to construct and manage custom funds made up of existing high performing mutual funds, and offer them at lower price points 4

5 WHAT DOES THIS MEAN TO YOU? Between November 5th to November 20th You will be able to update your current portfolio to designate how you want it allocated to the new fund line-up If you have Professional Management through Financial Engines, no action is needed on your part. Financial Engines will automatically redistribute funds. After the market closes on November 20th For any participant who has not taken any action or is not under Professional Management with Financial Engines, all existing and future investments will be allocated to the age appropriate Custom Target Date fund Fidelity Brokeragelink Accounts will continue to be offered without change 5

6 INVESTMENT MENU Asset Class Current Investment Product Menu New Investment Product Menu Fidelity Capital Appreciation Fund - Class K Large Cap Equity AllianzGI NFJ Dividend Value Fund Institutional Class Fidelity Contrafund - Class K Fidelity Equity Dividend Income Fund - Class K US Large Cap Equity Strategy Large Cap Equity Index Vanguard Institutional Index Fund Institutional Shares SSgA S&P 500 Index Fund K Fidelity Low-Priced Stock Fund - Class K Goldman Sachs Mid Cap Value Fund Institutional Class Small & Mid Cap Equity American Beacon Small Cap Value Fund Class Institutional Fidelity Mid-Cap Stock Fund - Class K Morgan Stanley Institutional Fund, Inc. Small Company Growth Portfolio Class I US Small Cap Equity Strategy Small & Mid Cap Equity Index Spartan Extended Market Index Fund - Fidelity Advantage Class SSgA Russell Small/Mid Cap Index Fund C 6

7 INVESTMENT MENU CONT Asset Class Current Investment Product Menu New Investment Product Menu International Equity Fidelity International Discovery Fund - Class K Invesco Developing Markets Fund R5 Class International Equity Strategy International Equity Index Spartan International Index Fund - Institutional Class State Street Global Equity Ex-US Index Fund K Fixed Income Fidelity Intermediate Bond Fund Core Plus Fixed income Strategy Fixed Income Index Vanguard Intermediate-Term Bond Index Fund Institutional Shares SSgA US Bond Index Fund C Cash Equivalent Managed Income Portfolio II Class 2 Vanguard Prime Money Market Fund Institutional Shares Managed Income Portfolio II Class 2 PIMCO Inflation Response Multi-Asset Fund Institutional will not have asuccessor asset class. 7

8 INVESTMENT MENU CONT Asset Class Current Investment Product Menu New Investment Product Menu Target Date Series Fidelity Freedom Index Income Fund Fidelity Freedom Index 2005 Fund Fidelity Freedom Index 2010 Fund Fidelity Freedom Index 2015 Fund Fidelity Freedom Index 2020 Fund Fidelity Freedom Index 2025 Fund Fidelity Freedom Index 2030 Fund Fidelity Freedom Index 2035 Fund Fidelity Freedom Index 2040 Fund Fidelity Freedom Index 2045 Fund Fidelity Freedom Index 2050 Fund Fidelity Freedom Index 2055 Fund Fidelity Freedom Index 2060 Fund Retirement Income Strategy Target Retirement 2005 Strategy Target Retirement 2010 Strategy Target Retirement 2015 Strategy Target Retirement 2020Strategy Target Retirement 2025Strategy Target Retirement 2030 Strategy Target Retirement 2035 Strategy Target Retirement 2040 Strategy Target Retirement 2045 Strategy Target Retirement 2050 Strategy Target Retirement 2055 Strategy Target Retirement 2060 Strategy 8

9 RISK & REWARD ACROSS INVESTMENT TIERS 5-year Annualized Return Range With Average Annual Return 27.7% 26.5% Annualized Return 13.9% 19.8% 8.5% 12.4% Participants in Target Date Funds Only -2.2% Participant Directed Investments -1.8% Participants in Brokerage Accounts 9 Source: J.P. Morgan Retirement Plan Services, Understanding Reenrollment, Above average Below average