Small Cap Fund Change

12-16-2011

The Investment Committee of PCA Retirement & Benefits, Inc. has approved a structural change to the Small Cap Fund.  This fund is one of our PCA Core Funds and a component of our PCA Target Retirement Funds as well.  On December 16, 2011 we closed the Small Cap Fund to new investments and divested ourselves from the fund (LSBYX), a mutual fund managed by Lord Abbett.  This change was due to the departure of a few key personnel over the last couple years.

 
All assets were automatically transferred to a new fund called the PCA Small Cap Fund.  While the investment vehicle changed, the overall strategy of the fund did not.  The old fund and the new fund are both Small Cap Core strategies.  However, there are some important enhancements we would like to note.  We replaced our mutual fund manager with two new separate account managers – Geneva Capital Management Ltd. (Geneva) and GW Capital, Inc. (GW).  Each of our new managers has specific expertise in their respective styles of investing, value and growth. The new fund will be morally screened (as are all the funds with the “PCA” designation in the title) by the Biblically Responsible Investment Institute. This means that the managers will refrain from investing in companies whose primary line of business includes alcohol, tobacco, abortion, stem cell research, encouragement and support of same sex lifestyles, and certain human rights violations.  Lastly, the move to Geneva and GW will lower the investment fees charged by Small Cap investment option.  This decrease in fees means that more of your dollars are invested and are building towards your retirement.
 
No action was required by our investors in making this change.  Our ministry partners invested in the Small Cap Fund were automatically redirected to the new PCA Small Cap Fund.  All existing balances and new contributions were directed to new PCA Small Cap Fund.