Empower Bond Index Fund Investor Class (MXBIX)

Overview

The fund is designed for investors looking to mirror the performance of the U.S. investment grade bond market. It commits at least 80% of its net assets, plus any borrowing for investment purposes, to securities that are part of its benchmark index. The benchmark encompasses a broad range of more than 12,000 U.S. investment grade bonds, including corporate bonds, government securities, and mortgage-backed securities. To achieve its investment objective, the fund employs a sampling strategy, constructing a portfolio meant to replicate the significant characteristics of the benchmark index comprehensively.

Products and Services

• Investment in Benchmark Index Securities

  The fund invests at least 80% of its assets in securities that are included in its benchmark index. This strategic approach aims to maintain a high correlation with the performance of the U.S. investment grade bond market, leveraging the broad diversity of the index which covers corporate bonds, government securities, and mortgage-backed securities among others.

• Sampling Techniques

  By employing sampling techniques, the fund selects a portfolio of securities that reflects the overall market composition and characteristics of the benchmark index. This method allows for efficient tracking of the index's performance while managing transaction costs and liquidity needs. The sampling technique is particularly useful in dealing with an index that contains a large number of securities, ensuring that the fund remains representative of the market sector it aims to mimic.