HSA Asset Allocation

Asset Classes

Investment asset class	Description
Large Cap Value	Companies having a market capitalization of between $10 billion and $200 billion and companies that are considered cheap relative to other stocks by valuation measurements, such as price-to-earnings and price-to-book value ratios.
Large Cap Income	Companies having a market capitalization of between $10 billion and $200 billion that pay dividends and provide a steady stream of income. This typically includes well-established companies such as utilities and financial services firms.
Large Cap Growth and Income	Companies that have a market capitalization of between $10 billion and $200 billion whose sales and profits are expected to grow; that pay dividends and provide a steady stream of income. This typically includes well-established companies such as utilities and financial services firms.
Large Cap Growth	Companies having a market capitalization of between $10 billion and $200 billion, or whose sales and profits are expected to grow.
Mid Cap	Companies with a market capitalization of between $2 billion and $10 billion or whose sales and profits are expected to grow.
Small Cap	Companies with a market capitalization of between $300 million and $2 billion. Small cap funds invest in companies primarily in the securities of small and medium-sized companies. The risks associated with investments in small companies include less experienced management, limited product lines and financial resources, shorter operating histories, less publicly available information, reduced liquidity and increased price volatility.
International	These types of funds invest in companies and debt instruments throughout the world. Investing in these securities involves considerations and potential risks not typically associated with investments in domestic corporations and obligations issued by the U.S. government. These risks include risks associated with changes in currency values, economic, political and social unrest, the regulatory environment of the countries where the fund invests, as well as difficulties in receiving current and accurate information.
Index Fund	An index fund mirrors the holdings of a broad based market index such as the S&P 500. The goal of an index fund is to match the returns of the index.
Fixed Income	Fixed income funds generally invest in bonds and other debt instruments which pay a steady stream of income.
Lifestyle Funds	Lifestyle Funds are funds whose asset mix is determined according to the level of risk and return that is appropriate for an investor’s current life situation. Lifestyle funds may be conservative, moderate or aggressive.
Money Market	Money market funds invest in debt instruments with maturities of one year or less and are considered very liquid.

About our investment advisor

Devenir Investment Advisors LLC is a registered investment advisor that was chosen by Capital Blue Cross to research and select the HSA mutual fund investment options. Devenir’s investment selection methodology screens the plan’s mutual fund options on a number of criteria, which includes, but is not limited to, total fund performance, category ranking by Morningstar and track record. Devenir will periodically review and may recommend changes in the group of mutual funds available in the Basic Investment Account if a particular fund no longer meets Devenir’s investment selection criteria. You will not be given separate notice of these changes; however, if you access your Basic Investment Account at CapitalBlueCross.com, you can find a list of the current group of mutual funds and find access to the fund prospectuses. Any change in the group of mutual funds will not affect amounts you have previously invested, and you may continue to invest in funds that are no longer part of the group.

The HSA investment account mutual fund selections represent a variety of asset classes. This allows you to choose how you want to allocate your assets.

Historically, no one asset class outperforms any other. By diversifying your investments among various asset classes you have the potential for minimizing risk and maximizing returns in your account, but there is no guarantee. Diversification and asset allocation do not protect your account from market fluctuations and do not guarantee a gain or protect against a loss of principal in your account.

To determine your asset allocation you should consider factors such as your risk tolerance, investment objectives and time horizon for these assets. When considering your time horizon for any investment you choose to make in your HSA, keep in mind the role you expect your HSA to play in meeting your future health care needs and that you may need to liquidate investments to fund a withdrawal from your HSA. How do you determine an asset allocation that’s right for you?

Through the HSA investment account, you have access to a number of web-based educational and planning tools to help you make your investment selections. These tools include an easy-to-use asset allocation calculator, prospectuses and research reports. By completing a brief investor profile with the HSA asset allocation calculator, you will receive a custom, suggested portfolio allocation mix that you may wish to consider when you make your investment decisions.

Over time, your risk tolerance, investment objectives or time horizon for these assets may change. The asset allocation you choose today may not be appropriate in the future. It’s a good idea to re-evaluate these factors and rebalance your portfolio as necessary.

For questions about your investment account, call Capital Blue Cross toll free at 877.293.7041 between 8:00 AM to 9:00 PM ET, Monday through Friday - 9:00 AM to 5:00 PM ET, Saturday and Sunday. For questions or advice about the stability of investment options, please consult your financial advisor or accountant.

You can find the HSA asset allocation calculator.

HSA investment options disclosures

Devenir does not intend to provide personalized investment advice to participants of this self-directed HSA program. Information provided for the investment options herein are for informational purposes only and should not be mistaken as a recommendation from Devenir or its representatives. Devenir reserves the right to change investment options at any time. Information about asset classifications for investment options have been provided by Morningstar or the fund prospectus and the asset classifications are subject to change over time. Past performance is no guarantee of future results. Before you make any investment, you should carefully review the fund’s prospectus and consider its objectives, associated risks and any fees or expenses that may apply. Investing entails the risk of loss of principal.

The record keeper for the investment accounts may receive certain plan expense payments from Charles Schwab & Co. Inc. for administrative and record keeping services provided to the HSA investment accounts.

The plan expense payments may also be used to offset custodial fees charged by the Schwab Trust Company and investment advisory fees charged by Devenir for services provided to the investment accounts. These payments may be based on the market value of the fund or the number of participants that invest in it. The record keeper expects to receive the plan expense payments from Schwab with respect to these funds.

OneSource is a registered mark of Charles Schwab and Co. Inc. Morningstar is a registered mark of Morningstar, Inc. Capital Blue Cross and Devenir are unaffiliated companies. Capital Blue Cross and Devenir are not affiliated with The Charles Schwab Trust Company or its affiliated broker dealer, Charles Schwab & Co. Inc., member SIPC/NYSE.