Understanding Your Investment Choices
Note: This page applies to the MERS Defined Contribution Plan, Hybrid Plan, and the 457 Program. Or visit the page for the Health Care Savings Program.
Investment Menu
The MERS Investment Menu is simplified into two categories to help you find the investment mix that best meets your investment style:
Understanding the MERS Investment Menu (pdf)
Fund Fees & Performance (pdf)
Policy Statement (pdf)
Brief: Excessive Fund Choice Undermines Performance (pdf)
“Help me do it“ LifePath Target Date Funds are a simplified way to invest. These options are fully diversified, professionally managed, and automatically adjust over time as you get closer to retirement. Learn about LifePath.
“I’ll do it myself“ These Additional Fund Options were actively chosen for you by MERS. Here you have access to pre-built portfolios that MERS helps you manage by monitoring the investment managers and rebalancing the portfolio quarterly. It also gives you access to selected funds to help you build your own portfolio. Learn about Additional Fund Options.
Self-Directed Brokerage Account (SDBA): This feature gives you access to funds outside of MERS investment menu. The available investments under this window have not been reviewed by MERS. You are solely responsible for determining the appropriateness of the investment options. You are eligible to open an SDBA once your account balance is above $5,000, which is the minimum amount that must continue to be invested in either the LifePath or Additional Fund Options. Once established, you may transfer any amount
beyond the $5,000 to the SDBA. Learn about Self-Directed Brokerage.
Brief: Excessive Fund Choice Undermines Performance
Investment Menu Oversight
The MERS Retirement Board and Office of Investments selects and monitors the investment choices that are available to you. They actively review the fund lineup, investment managers, and index funds available and make changes as needed, based on strict criteria.
The following are some examples of the criteria used to guide decisions:
- Comparative risk ratio against peers and benchmarks
- Comparative expense ratio against peers in its category
- Consistent investment style
- Stable investment management team
- Material legal, regulatory, or reputation changes
How Does This Benefit You?
You receive an experienced team that oversees the investment choices available to you. They do the necessary research, due diligence and monitoring of the various managers of the funds – ensuring you have quality options available.