Empower Conservative Profile Fund - Institutional Class (MXKVX)

Overview

The fund serves as an investment vehicle aiming at optimizing the allocation of assets across a diverse spectrum of investment opportunities. It is structured to invest its assets in a range of funds, each covering a different segment of the global financial market. This includes various categories like equity international funds, emerging markets funds, small cap, mid cap, and large cap funds, as well as specific sectors such as real estate, alongside fixed income and short term bond funds. Despite its non-diversified nature, the fund maintains a diversified portfolio through its investments in these varied underlying holdings. The primary goal is to balance the investment to achieve potential growth, risk diversification, and income generation, depending on the prevailing economic conditions and market trends. This approach allows investors to tap into a broad array of assets, potentially mitigating risk while seeking growth and income.

Products and Services

• Equity International Funds:

  Invests 0% to 15% of assets in international markets, seeking to capitalize on the growth potential of companies located outside the United States. This option allows exposure to global economic trends and diversification beyond domestic equities.

• Emerging Markets Funds:

  Allocates 0% to 10% of assets in emerging market economies, aiming to harness the higher growth potential inherent in these rapidly developing regions. Despite higher risk due to market volatility, these investments can offer significant returns.

• Small Cap Funds:

  Invests 0% to 15% of assets in small capitalization companies, providing investors with the opportunity to benefit from the growth of these enterprises. Small caps are often nimble and can grow quickly, offering substantial rewards albeit with higher risk.

• Mid Cap Funds:

  Allocates 0% to 15% of assets in mid-sized companies, striking a balance between the growth potential of small caps and the stability of large caps. Mid caps often offer a blend of growth and resilience, making them an attractive option for diversified portfolios.

• Large Cap Funds:

  Holds 5% to 25% of assets in large capitalization companies, offering stability and steady growth prospects. Large caps are typically well-established firms with a solid presence in their respective industries, providing a foundation for portfolio stability.

• Real Estate:

  Invests 0-10% of assets in the real estate sector, providing an alternative investment that can serve as a hedge against inflation and a source of income via dividends from real estate investment trusts (REITs) or other property holdings.

• Fixed Income Bond Funds:

  Allocates 30% to 50% of assets in fixed income securities, offering a steady income stream and reducing overall portfolio risk. Bonds provide a counterbalance to the equities segment, mitigating volatility and enhancing stability.

• Short Term Bond Funds:

  Invests 20% to 40% of assets in short duration bonds, aiming for liquidity and preservation of capital with a lower risk profile compared to longer-term bonds. These are ideal for conservative investors prioritizing capital preservation.