Buy-and-Hold Models
The Plan's DC (Dauphin County) Conservative through Aggressive Models, provide participants with porfolios that are designed for differing levels of risk and return. They utilize the Plan's individual investment options to build diversified portfolios based on given levels of risk and return. The portfolios are designed by Retirement Collaborative LLC and reviewed with the Voluntary Employee Benefits Committee. As needed, the models are updated to attempt to provide a high level of return for a given level of risk, as measured by the portfolios standard deviation.
Over long-periods of time, we would expect the more conservative models to have lower returns and volatility; while the more aggressive a portfolio becomes, we would expect its long-term returns to increase with a corresponding increase to its short-term volatility. Typically, those with a shorter time horizon or who are risk adverse would find the more conservative portfolios appropriate, while younger participants with a long time horizon or those with a high risk tolerance may find the more aggressive portfolios appropriate.