JRB Stable Value Interest Fund

State of Israel Bonds

Fidelity Puritan Fund

As you get older, and especially as you approach retirement, it makes sense to invest more conservatively. But how? For those invested in Target Date Funds, the work is done for you; fund managers gradually move from more aggressive investments to more conservative investments. For those who manage their own portfolio, the answer often involves moving from stock funds to bond funds.

This article looks at two other conservative investment options: the JRB Stable Value Interest Fund and Israel Bonds. The former offers a guaranteed rate of interest and the ability to transfer or withdraw funds whenever you want. Israel Bonds also offers a guaranteed rate of interest and supports the Israeli economy, but you do not have access to your funds until the bond matures (generally 3 or 5 years).

Finally, the Fidelity Puritan Fund is a hybrid investment that includes both stocks and bonds. Unlike Target Date Funds, asset allocation in the Fidelity Puritan Fund does not change as you approach retirement.

JRB Stable Value Interest Fund

The JRB Stable Value Interest Fund is designed to preserve principal and minimize the effect of volatility while providing a guaranteed rate of return. This strategy can insulate your retirement account from market volatility, especially in stocks.

The Fund is managed by Galliard Capital Management, one of the largest stable value and fixed income managers in the U.S. Each quarter Galliard sets the rate of return for the Stable Value Interest Fund. This rate of return is guaranteed for the quarter. The Fund invests primarily in high quality, short-term government, corporate and asset backed bonds. About 90% of the Fund’s investments are rated A or higher, with nearly 70% rated AAA. The effective duration of the bonds in the Stable Value Interest Fund portfolio is less than three years.

Your investment in the Stable Value Interest Fund, both principal and interest, is guaranteed through contracts with four highly rated insurance companies.

The Stable Value Interest Fund uses the three-year Constant Maturity Treasury Yield as its benchmark.

View JRB Investment Returns Sheet

JRB Stable Value Interest Fund Fact Sheet

JRB Stable Value Interest Fund Portfolio Review

Israel Bonds

Twice each year, in May and November, the JRB offers an opportunity to purchase Israel Bonds. Development Corporation for Israel/Israel Bonds underwrites the bonds issued by the State of Israel in the United States. Israel Bonds finance national infrastructure development in Israel. These are fixed interest bonds; the interest rate established when the bond is purchased remains in effect for the entire term of the bond. Interest on the bonds is paid semi-annually. Interest paid is credited directly to your JRB retirement account according to your contribution election. When the bond matures, the proceeds are credited to your Stable Value Interest Fund account.

Purchasing Israel Bonds through the JRB has several advantages. You can diversify the fixed income portion of your portfolio; you purchase the bonds on a tax-favored basis; and you can use the purchase to honor a fund drive pledge. Because the bonds offer a guaranteed rate of return, they can reduce the impact of market volatility.

Fidelity Puritan Fund

The Fidelity Puritan Fund is considered a “hybrid” investment option because it holds both stocks and bonds. This strategy is designed to achieve both income and capital growth with reasonable risk. The Fund invests approximately 60% of its assets in U.S. and international stocks and the remainder in bonds and other debt securities, including lower-quality debt instruments. This investment approach can offer some shelter from market volatility.

The Fidelity Puritan Fund uses a custom benchmark made up of 60% S&P 500 and 40% Bloomberg U.S. Aggregate Bond Index to reflect its mix of assets.

View JRB Investment Returns Sheet

Fidelity Puritan Fund Fact Sheet

Fidelity Puritan Fund Prospectus

January 2022