Objective

The UMWA  401(k) Balanced Fund seeks to achieve capital growth comparable to the total return of the S&P 500 stock index but with lower risk than the stock market through actively managing a portfolio of stocks, bonds and money market instruments. The Fund will not invest in companies that do not meet certain standards for labor relations, occupational safety, and other social issues. 

Investment Type

The UMWA 401(k) Balanced Fund is a separate account managed by Boston Trust & Investment Management Company. The Fund's investments are balanced between stocks and fixed income securities.

Investment Risk and Return

The Fund balances risk and return expectations through ownership of both stocks and bonds. The Fund can be suitable for those willing to assume a moderate level of risk (associated with both the stock and bond market) in a search of long-term investment rewards.  

Strategy

The Fund follows a diversified and balanced program of investing in bonds and common stocks for both income and growth. The Fund allocates investments among asset classes and sectors in order to participate in rising markets and avoid losses in falling markets. 

Stocks                 

Bonds                  

Money Markets

TOTAL                 

   61%

   37%

     2%

 100%

1.  BP PLC ADR

2.  Johnson & Johnson

3.  Procter Gamble

4.  Apache

5.  PepsiCo

6.  Emerson Electric

7.  Microsoft

8.  T. Rowe Price

9.   Costco Wholesale

10.  Colgate Palmolive

Fund Manager

Boston Trust & Investment Management Company specializes in the management of balanced funds and is a leader in the management of socially responsible investment portfolios. Boston Trust & Investment Management Company has approximately $4 billion under management. 

Performance

The chart below shows the annual total return of the UMWA 401(k) Balanced Fund over each of the past 10 years. Total return is the combination of interest from bonds, dividends from stocks and changes in market value over time. 

Over the past 10 years, a hypothetical investment of $1,000 in the UMWA 401(k) Balanced Fund would have grown to approximately $2,104 assuming reinvestment of all distributions.  Future results, however, may be different than past performance.

Comparison To Other Plan Funds

The UMWA 401(k) Balanced Fund is considered to have a lower risk and return potential than the Fidelity Equity-Income Fund and the BGI Equity Index Fund but more risk and return potential than the Vanguard GNMA Fund, the J.P. Morgan Stable Value Fund, or the Calvert Social Investment Fund Money Market Portfolio.

Investment Costs

An investor in the Fund pays no commissions or sales load. The UMWA 401(k) Balanced Fund does incur investment management and expense fees based on the average assets of the Fund. For the year, ending December 31, 2007, total fund operating expenses were 0.44% of average assets or $4.40 per $1,000. Plan administrative expenses are not included in these fund expenses.