After careful review of the current offerings, BHGE’s Investment Committee has decided to make changes to the 401(k) fund lineup. On July 1, 2019, BHGE will add three new passive funds and will remove one fund from our investment lineup. See the Investment Option Overview Chart for the full fund lineup as of July 1, 2019.
With the addition of these three passive funds, you’ll have more flexibility and more opportunities for investing your dollars in the 401(k) Plan. Passive funds have lower investment fees than active funds because they hold securities that match the relevant market index and do not conduct investment research to hold amounts different from the index. Passive funds try to track the performance of a certain market index while active funds try to outperform the index.
No action is required but you should carefully read and review the mailer (also sent to your home) to determine if you need to make any decisions regarding the investment of your account balance under the Plan.
This is also a good opportunity to review your investment options. The Fund Fact Sheets for the new funds will be available on myRewards beginning on July 1, 2019. However, you can review detailed information regarding the indexes (the US Aggregate Bond, S&P 500, and MSCI EAFE) tracked by the three new funds.
Keep the following dates in mind:
Remember, you can make changes to your investment elections at any time. Any investment changes made after 3:00 p.m. CST will usually be effective on the next business day that markets are open. For example, any investment election change made after 3:00 p.m. CST on July 1 will be effective on July 2.
We will be making more changes to the investment lineup in 2020. We’ll add Target Date Funds, which are investment options that allocate among investments based on your anticipated retirement date. You will receive information later this year about these new investment options.
Amounts in the Passive Global Balanced Fund are being mapped into the three new passive funds: the S&P 500 Index Fund, International Equity Index Fund, and U.S. Bond Index Fund. Any existing account balances and future investments you have in the Passive Global Balanced Fund as of June 28, 2019, will be mapped at the end of the day on July 1, 2019. For more details, read the mailer (also sent to your home).
Up until 3:00 p.m. CST on June 28, 2019, you can invest in – or move investments out of – the Passive Global Balanced Fund.
If you have questions after you’ve read these FAQs, contact the BHGE Benefits Center at 1-866-244-3539.
BHGE has an Investment Committee, made up of BHGE senior executives, to oversee the BHGE 401(k) Plan’s assets. The Investment Committee generally meets quarterly and is responsible for:
Yes, BHGE offers Core Funds – including three new funds – across the major asset categories.
Core Funds give you more involvement in choosing and managing your investment mix. BHGE offers eight Core Funds from which you can choose to build your own portfolio. In choosing your own portfolio from the Core Funds, you should consider your retirement financial goals, risk tolerance and time horizon.
With greater control, comes greater responsibility. You’ll need to carefully monitor your investments so they continue to support your retirement goals.
BHGE offers eight Core Funds from which you can choose to build your own portfolio. To learn more about the funds, log in to myRewards.
Yes, a Style Fund might be right for you if you want a pre-mixed, diversified fund that has a quick and easy method for diversifying your investments with a single selection.
Style Funds are pre-mixed, diversified funds, which provide a quick and easy method for diversifying your investments with a single selection. A Style Fund may be the right choice for you if you want a simplified investment strategy, because each fund allows you to make a single choice for a specific investment objective and risk tolerance.
Yes, BHGE offers three Style Funds: Conservative, Moderate, and Aggressive. All three seek to provide a simplified investment strategy for investors by investing in a pre-mixed and diversified set of Core Funds in different asset classes. To learn more about the funds, log in to myRewards.
Core Funds give you more involvement in choosing and managing your investment mix. In choosing and managing your own portfolio from the Core Funds, you should consider your retirement financial goals, risk tolerance and time horizon.
A Style Fund may be the right choice for you if you want a simplified investment strategy, because each fund allows you to make a single choice for a specific investment objective and risk tolerance.
An actively managed investment fund is a fund in which a manager or a management team makes decisions about how to invest the fund’s money. An actively managed fund is attempting to earn more than the index it is measured against.
A passively managed fund, by contrast, simply follows a market index. It does not have a management team making investment decisions, and therefore has lower fees. It is trying to match the return of the index it is measured against.
You may want to consult a financial advisor before making any investment decisions. As a general rule of thumb, while you may choose one or more Style Funds and any combination of other 401(k) Plan funds (Core Funds), Style Funds are already diversified, so there is generally no need to invest in additional Style or Core Funds. Each Style Fund is constructed from Core Fund options.
Custom funds provide flexibility to select fund managers and establish specific investment objectives. Custom funds are maintained in a separate account only for the use of a single plan sponsor or investor.
The BHGE Investment Committee has chosen custom funds for the BHGE 401(k) Plan. Unlike mutual funds, which pool the funds of several plan sponsors and/or investors, custom funds are maintained in a separate account only for the use of a single plan sponsor or investor. Custom funds provide BHGE the flexibility to select fund managers and establish investment objectives specifically for BHGE’s employees.
Custom funds offer many advantages over retail mutual funds, including:
There are costs to providing, managing and administering a 401(k) plan, called plan fees. Employers choose to share the costs in several different ways. BHGE focuses our dollars on our match and base contribution of up to 9% of eligible pay. So, when you choose a fund, you need to be aware of the plan fees you’ll pay that are associated with the management of that fund and the Plan.
A total expense ratio (also called Estimated Total Expenses) is the sum of the investment fees and the administrative fees.
There are two transaction fees that occur in the 401(k) Plan: an origination fee for the processing of a participant loan in the amount of $50 and a redemption fee of 2% on amounts transferred out of the International Equity Fund within seven calendar days of being transferred into the fund.
You can find fee information in the Investment Option Overview Chart or on each Fund Fact Sheet on myRewards. Fees may change over time and will be reflected in the Fund Fact Sheets and fee disclosure notices.
To enroll in the BHGE 401(k), you need to access myRewards:
Once you’re enrolled, you can check your account balance, change contribution elections and change the investment of existing account balances and future contributions through myRewards.
You have several options:
Through myRewards, you can check your account balance, change contribution elections and change the investment of existing account balances and future contributions.