401(k) Investment OptionsSchwab 1000 Fund (Index Fund)
This index fund invests in the Schwab 1000 index, an index that is composed of the common stocks of the 1,000 largest publicly traded U.S. companies.
The fund normally invests at least 80% of its assets in index stocks, in proportion to their weighting in the index. The fund's portfolio turnover rate is expected to be low due to the fact that portfolio securities are not automatically bought and sold to reflect changes in the index.
Morningstar Rating = 4 stars
Morningstar Risk Rating = Below Average
Morningstar Return Rating = Average
To order a current prospectus, please call 800-266-5623
Strong Government Securities Fund (Objective = Government Bonds)
This fund seeks a high level of current income and preservation of capital by investing primarily in securities backed by the full faith and credit of the U.S. Government.
The fund normally invests 80% of its assets in U.S. Government securities. In addition to Treasury obligations, these may include securities issued by agencies such as the Federal Housing Administration, Government National Mortgage Association, Federal Home Loan Banks, and the Student Loan Marketing Association. The balance of assets may be invested in other investment-grade fixed-income securities. The fund maintains no restrictions on average maturity.
Morningstar Rating = 5 stars
Morningstar Risk Rating = Below Average
Morningstar Return Rating = High
To order a current prospectus, please call 800-368-1030
Janus Flexible Income Fund (Objective = Income)
This fund seeks high long-term total return consistent with prudent management by investing primarily in fixed income securities issued by major governments and corporations around the world and in the U.S.
The fund ordinarily invests at least 80% of its assets in income-producing securities. It may purchase domestic and foreign corporate or government securities of any rating and may deliberately vary the overall quality of its portfolio from time to time. Investments may also include mortgage- and asset-backed securities, preferred stocks, and income producing common stocks. The fund may also invest without limit in foreign securities.
Morningstar Rating = 5 stars
Morningstar Risk Rating = Low
Morningstar Return Rating = Above Average
Janus Balanced Fund (Objective = Growth and Income)
This fund seeks long-term growth of capital, consistent with capital preservation and balanced by current income.
The fund invests in both equity and debt securities, normally allocating 40% to 60% of assets to each type. Equity investments consist primarily of common stocks chosen for their growth potential and income-producing common and preferred stock. Fixed income investments consist primarily of investment- grade corporate and U.S. Government securities. At least 25% of assets are invested in fixed-income senior securities at all times. Up to 25% of assets may be invested in non-U.S. dollar denominated foreign securities.
Morningstar Rating = Not Rated (new fund)
Lexington Corporate Leaders (Objective = Growth & Income)
This fund seeks long-term growth of capital and income. It was established as a Grantor Trust in 1935. The stocks of 30 then- major U.S. companies were selected on the basis of being leaders in their respective industries. The fund's portfolio is share-weighted; it holds the same number of shares in each company in which it invests. Since the fund's inception, seven of its original 30 companies have been eliminated because they no longer meet its investment criteria and one spin-off name was added. The fund will cease operations on November 30th, 2100.
Morningstar Rating = 4 stars
Morningstar Risk Rating = Below Average
Morningstar Return Rating = Above Average
Janus Fund (Objective = Growth)
This fund seeks capital appreciation consistent with preservation of capital. It invests primarily in common stocks of companies and industries that experience increasing demand for their products and services, or operate in a favorable regulatory climate. The fund may invest in a large number of issuers of any size. It may also invest, without limit, in foreign securities. The fund may also invest in preferred stocks, warrants, government securities, and corporate debt.
Morningstar Rating = 4 stars
Morningstar Risk Rating = Below Average
Morningstar Return Rating = Above Average
Janus Worldwide (Objective = Growth)
This fund seeks long-term growth of capital consistent with preservation of capital. The fund normally invests nearly all of its assets in the common stocks of foreign and domestic issuers. Its portfolio is usually spread across at least five different countries, although it may at times invest in fewer than five countries. The fund may engage in futures and options strategies.
Morningstar Rating = 5 stars
Morningstar Risk Rating = Average
Morningstar Return Rating = High
Fund Companies
To order a current prospectus you may call the funds listed below.
Strong Capital Management 1-800-368-1030
Janus Capital 1-800-525-8983
Lexington Management 1-800-526-0056
Schwab 1-800-435-4000
Selection of Funds
All of the funds listed on this page were carefully researched and selected by Karen Glikman of Glikman Associates based on a review of the Morningstar Reports. They were chosen because they met the following criteria: below average risk, above average return, no sales charge, cost efficient, quality funds with a 4 or 5 Morningstar rating. For people who choose to participate in the market as a whole, Chancellor & Chancellor, Inc. provides the Schwab 1000 Index Fund.
Fees, Charges and Restrictions
Chancellor & Chancellor, Inc. will pay the administrative and bookkeeping charges incurred to maintain the 401 (k) plan.
The mutual funds selected by your 401 (k) Plan Trustee are offered to you without sales fees or brokerage charges.
Morningstar
Morningstar Risk Rating
The Morningstar Risk statistic evaluates the fund's downside volatility relative to that of other funds in its class. Morningstar uses a proprietary risk measure that operates differently from traditional risk measures, such as beta and standard deviation, which sees both greater- and less-than-expected returns as added volatility. Morningstar believes that most investors' greatest fear is of losing money --- defined as underperforming the risk-free rate of return an investor can earn from the three-month Treasury bill --- so their measures focuses only on that downside risk. The rating, expressed on a scale of 1 to 5 stars, brings both performance and risk together into one comprehensive evaluation.
Morningstar Return Rating
The Morningstar's Return rating figures a fund's performance relative to its class based on total returns.
For further information on the 401K plan, contact anthony(at)chancellor(dot)com
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