Enhancements to UPAL Retirement Program Core Investment Platform

 Based on recommendations of the Strategic Investment Advisory Group, independent investment advisors to the UPAL Retirement Program, the UPAL Financial Management Committee and Board of Directors have voted to make certain enhancements to the Core Investment Platform which they believe will benefit Program participants in the future and over the long-term.  These enhancements are as follows:

  • Effective September 1, 2013, the UPAL Core Bond Fund will be diversified by adding an allocation to a high yield strategy and an allocation to an international bond strategy. 

To accommodate allocations to the high yield and international bond funds, the existing fund allocations will be decreased.

  • Effective September 1, 2013, the Alternative Investment Fund will be built-out further by adding additional investment manager components.  The investment advisors find that the current Fund structure subjects the Fund to a significant amount of interest rate risk.

The benefits of further Fund diversification, including additional managed strategies, should mitigate risk, reduce volatility and improve performance over the long-term.

  • Also, effective September 1, 2013, tactical asset allocation changes will be implemented in the Asset Allocation Models to shorten the duration of fixed income and increase the allocation to stocks.

Allocations to the Core Bond Fund will be reduced and allocations to the Short-Term Income Fund will be made within the Fixed Income and Conservative Models in order to decrease duration and help manage interest rate risk.

Underlying equity allocations will be increased and fixed income allocations reduced in the Conservative, Balanced and Aggressive Models, as there are more present return opportunities in stocks, given the potential for rising interest rates.