You decide where to invest your additional voluntary contributions (AVCs). You can pick from any of
five professionally managed portfolios. These include the three “core” portfolios available for basic contributions (i.e., the growth, balanced, and conservative portfolios), as well as two others:
- an ultra-conservative income portfolio made up almost entirely of bonds, (requires prior approval); and
- an aggressive growth portfolio made up almost entirely of equities.
This range of investment options is designed to help you select an asset mix that suits your investment objectives and comfort level.
You can invest your AVCs in more than one portfolio. You can also reallocate your AVCs between portfolios. Among the factors to consider when investing your AVCs are:
- your investment objectives;
- your comfort with investment risk;
- how long you have until retirement; and
- your overall financial position.
Keep in mind that you can use your AVCs to alter the overall risk-reward position of your Silver Thatch investments. This can be done by investing your AVCs to increase or decrease the overall percentage of your equity holdings.
FOR EXAMPLE:
- you can increase the overall percentage of your equity holdings by directing all of your AVCs to the aggressive portfolio; and
- you can decrease the overall percentage of your equity holdings by directing all of your AVCs to the income portfolio.
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The more equity-based investments you hold, the greater your potential for investment gains in a strong market, but the greater your potential for investment losses in a weak market.
For details on investing your AVCs, refer to the
Smart Investor Guide.
