MMC Benefits Handbook
Your Notional Investment Options
You can invest your account in any notional investment fund offered under the Plan, including notional investment funds and Marsh & McLennan Companies Stock Units. It is important to remember that you may not diversify any amounts that are credited to your account as Marsh & McLennan Companies Stock Units.
The notional funds available as of March 27, 2017 are listed below by category of investment. Generally, notional investment options based on stable value funds are considered to have the lowest risk and lowest potential returns. The remaining categories of notional investment options are generally believed to have increasing risk and potential returns in the following order: bond funds, balanced funds (bonds and stocks) and stock funds. The list below is not meant to suggest any ranking within a particular category of investment. One important element of investment risk is diversification of investments. Concentrated investments, like notional shares of Marsh & McLennan Companies stock, which are notionally invested solely or primarily in one investment, are generally considered to carry greater risk with the potential for greater return. However, you should remember that investment risk reflects factors in addition to diversification, such as creditworthiness of the issuer and investment term.
Understanding Investment Diversification
To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified investment portfolio. Diversification, or spreading your assets among different types of notional investments, can help you achieve a favorable rate of return, while helping to lower your overall risk of losing money. This is because at any given time, market or other economic conditions that cause one category of assets, or one particular security, to perform well may cause another asset category, or another particular security, to perform poorly. If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk.
In deciding how to invest your retirement savings, you should take into account all of your assets, including any retirement savings outside of the Supplemental Savings & Investment Plan. No single approach is right for everyone because, among other factors, individuals have different financial goals, different time horizons for meeting their goals, and different tolerances for risk.
It is also important to periodically review your investment portfolio, your investment objectives, and the notional investment options under the Supplemental Savings & Investment Plan to help ensure that your retirement savings will meet your retirement goals.
Notional Investment Options Offered in the Plan
Stocks
Employer Stock
  • MMC Stock
US Large-Cap Stocks
  • T. Rowe Price Blue Chip Growth Fund
  • Dodge & Cox Stock Fund
  • Putnam Equity Income Fund
  • S&P 500 Index Fund
US Mid-Cap Stocks
  • T. Rowe Price Institutional Mid-Cap Equity Growth Fund
  • Vanguard Selected Value Fund
US Small-Cap Stocks
  • Goldman Sachs Small-Cap Value Fund
US Small/Mid Cap Stocks
  • US Extended Equity Market Index Fund
International Stocks
  • American Funds EuroPacific Growth Fund
  • Mercer Emerging Markets Equity Fund
  • Non-US Equity Index Fund
Bonds
US Intermediate-Term Bonds
  • PIMCO Total Return Fund
  • US Bond Index Fund
Stable Value
Stable Value
  • Invesco Fixed Income Fund
Multi Asset
Balanced
  • Vanguard Wellington Fund Inflation Response
Inflation Response
  • PIMCO Inflation Response Multi-Asset Fund
Target Date
Target Date
  • BlackRock LifePath Dynamic Retirement Fund
  • BlackRock LifePath Dynamic 2020 Fund
  • BlackRock LifePath Dynamic 2030 Fund
  • BlackRock LifePath Dynamic 2040 Fund
  • BlackRock LifePath Dynamic 2050 Fund
Investors should carefully consider the investment objective, risks, charges, and expenses of an investment option or fund before investing. For a prospectus and, if available a summary prospectus or offering statement, if applicable for a fund or investment option, or for a fund fact sheet containing this and other information about any investment option or fund in the Plan, call the Plan's toll-free number at +1 866 374 2662 or if you are an active employee, go to Colleague Connect (https://colleagueconnect.mmc.com) and click Career & Rewards. Under Find a Document select 401(k)/SSIP Fund Fact Sheets. If you are a terminated employee, go to Connect (https://connect.mmc.com), select a region and click Transamerica for Supplemental Savings & Investment Plan fund/investment option information. Read the prospectus and, if available, summary prospectus or offering statement, if applicable for a fund or investment option, and fund fact sheet carefully before making any investment decisions. Investing involves risk, including the risk of loss.
Supplemental Savings & Investment Plan participants should carefully consider the investment objectives, risks, charges and expenses of an investment option or fund available for notional investment of your Plan book entry account before electing a notional investment option or fund. For a prospectus and, if available a summary prospectus or offering statement, if applicable for a fund or investment option, or for a fund fact sheet containing this and other information about any investment option or fund option that is available for notional investment in the Plan, please call +1 866 374 2662 or if you are an active employee, go to Colleague Connect (https://colleagueconnect.mmc.com) and click Career & Rewards. Under Find a Document select 401(k)/SSIP Fund Fact Sheets. If you are a terminated employee, go to Connect (https://connect.mmc.com), select a region and click Transamerica for Supplemental Savings & Investment Plan fund/investment option information. Read the prospectus and, if available, summary prospectus, or offering statement, if applicable for a fund or investment option and fund fact sheet carefully before making any notional investment decisions.
You assume the responsibility for the investment choices you make for your account with this type of plan.
The notional investment funds offered in the Plan can be classified a number of ways; the categories reflect the general composition of the funds. Alternative classification systems, such as by style (e.g., value, growth, blend) or market capitalization (e.g., large-cap, mid-cap, small-cap), can highlight different aspects of the funds. The following are investment categories and notional funds offered under the Plan. Each category has different risk and return characteristics. It is important that you read the fund prospectus and select the notional fund(s) that meet your investment goals before making your notional investment decision.
Keep in mind that Plan participation involves investment risk. If the value of the notional investment options you have elected for your deferrals decreases, the value of your account will decrease.
The notional investment options are generally similar as the funds available under the tax-qualified Marsh & McLennan Companies 401(k) Savings & Investment Plan, but your investment direction elections under this Plan are independent from those you make under the Marsh & McLennan Companies 401(k) Savings & Investment Plan. The Company may change the available choices from time to time.
Stocks/Employer Stock
Marsh & McLennan Companies Stock
Seeks a return that closely approximates the return of Marsh & McLennan Companies common stock. The fund consists of notional shares of Marsh & McLennan Companies common stock. Investing in a single-stock fund involves additional risk due to the fund's lack of diversification.
Stocks/US Large-Cap Stocks
T. Rowe Price Blue Chip Growth Fund
Seeks to provide long-term capital growth with income as a secondary objective. The fund invests primarily in common stocks of large blue chip companies that have the potential for above-average earnings growth and are well established in their respective industries. The fund may invest a portion of its assets in mid-size companies; such investments increase the risk of greater price fluctuations.
Dodge & Cox Stock Fund
Seeks long-term growth of principal and income, and as a secondary objective, seeks to achieve a reasonable current income. The fund invests primarily in a broadly diversified portfolio of common stocks that appear to be temporarily undervalued by the stock market, but have a favorable outlook for long-term growth.
Putnam Equity Income Fund
Seeks capital growth and current income by investing mainly in value stocks that have the potential to consistently pay above-average dividends as well as the potential to grow in value over time. The fund favors dividend-paying companies and is broadly diversified across market sectors. The fund may invest a portion of its assets in midsize companies. Such investments increase the risk of greater price fluctuations.
S&P 500 Index Fund
Seeks a return, before the assessment of fees, that closely approximates the return of the S&P 500® Index. The fund invests primarily in publicly traded common stocks of the S&P 500 Index. The fund invests some of its assets in small and/or midsize companies. Such investments increase the risk of greater price fluctuations.
The S&P 500 Index is an unmanaged index of common stocks frequently used as a general measure of US stock market performance. S&P 500 is a registered trademark of the Dow Jones Trademark Holdings LLC ("Dow Jones").
Stocks/US Mid-Cap Stocks
T. Rowe Price Institutional Mid-Cap Equity Growth Fund
Seeks long-term capital appreciation by investing primarily in the common stocks of companies with midsize market capitalizations and the potential for above-average growth. The investing focus is on companies with strong balance sheets and sufficient cash flow to fund growth internally. Investments in small and/or midsize companies increase the risk of greater price fluctuations.
Vanguard Selected Value Fund
Seeks long-term capital appreciation and income by investing mainly in the stocks of medium-size US companies, choosing stocks considered by the manager to be undervalued. Undervalued stocks are generally those that are out of favor with investors and are trading at prices that the manager feels are below-average in relation to such measures as earnings and book value. These stocks often have above-average dividend yields. The fund uses multiple investment managers. Investments in midsize companies increase the risk of greater price fluctuations.
Stocks/US Small-Cap Stocks
Goldman Sachs Small-Cap Value Fund
Seeks long-term growth of capital through investing in small-cap companies that the manager believes will outperform in a variety of market conditions. The fund strives to identify small companies that are undervalued relative to their long-term cash generation capability. Investments in small and/or midsize companies increase the risk of greater price fluctuations.
Stocks/US Small/Mid Cap Stocks
US Extended Equity Market Index Fund
Seeks a return, before the assessment of fees, that closely approximates the return of the Russell Small Cap Completeness Index. This index measures the performance of the Russell 3000 Index excluding S&P 500 constituents. The Russell 3000 Index is an index maintained by the Russell Investment Group that seeks to capture the entire US stock market and encompasses the 3,000 largest US-traded stocks of companies incorporated in the US.
Stocks/International Stocks
American Funds EuroPacific Growth Fund
Seeks to achieve long-term capital appreciation by investing in companies outside the US, primarily in Europe and the Asia/Pacific region. The fund invests primarily in common stocks (may also invest in preferred stocks), convertibles, American Depository Receipts, European Depository Receipts, bonds, and cash. The fund may invest a portion of its assets in emerging market equities; such investments increase the risk of greater price fluctuations.
Mercer Emerging Markets Equity Fund
Seeks to provide long-term total return, which includes capital appreciation and income. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings, in equity securities of companies that are located in emerging markets, as well as in American, European, and Global Depository Receipts. Emerging market countries include all countries represented by the MSCI Emerging Markets Index. In addition, the fund may invest in equity securities of companies that are located in "frontier markets", described as markets of smaller, less accessible, but still investable countries of the developing world. The securities of frontier market companies tend to be considered small and/or micro-cap. Smaller companies increase the risk of greater price fluctuations.
Non-US Equity Index Fund
Seeks a return, before the assessment of fees, that closely approximates the return of the MSCI All Country World (ACWI) ex-US Index. The MSCI ACWI ex-US Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging and developed markets, excluding the United States. The index includes large and mid-cap companies in 22 developed markets countries and 23 emerging markets countries. The index covers approximately 85% of the global equity opportunity set outside the US.
Bonds/US Intermediate-Term Bonds
PIMCO Total Return Fund
Seeks maximum total return, consistent with preservation of capital and prudent investment management. Investments are made primarily in a diversified portfolio of investment-grade fixed-income securities of varying maturities. The fund may invest in securities denominated in foreign currencies and high-yield securities rated B or higher. Lower-rated bonds may offer higher yields in return for more risk. International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks, including illiquidity and greater volatility, may be associated with emerging market securities. Agency securities are not explicitly guaranteed. Mortgage-backed securities are subject to prepayment risk. The fund may invest in derivatives, which can increase performance volatility.
US Bond Index Fund
Seeks a return, before the assessment of fees, that closely approximates the return of the Bloomberg Barclays Capital US Aggregate Bond Index. Investments typically include US Government and agency securities, investment-grade corporate and Yankee bonds, and mortgage-backed and asset-backed securities.
The Bloomberg Barclays Capital US Aggregate Bond Index is an indicator of US investment-grade bond market performance. Bloomberg is a trademark and service mark of Bloomberg Financial L.P. BARCLAYS is a trademark and service mark of Barclays Bank Plc, used under license by Bloomberg. Bloomberg Financial L.P. and its affiliates (collectively, "Bloomberg") or Bloomberg's licensors own all proprietary rights in the Bloomberg Barclays Capital US Aggregate Bond Index.
Stable Value
Invesco Fixed Income Fund
Seeks stability of principal (capital preservation) and interest income by investing in a diversified portfolio of marketable fixed income securities that are insulated from interest rate volatility by contracts (wraps) from banks and insurance companies. Also holds contracts issued by insurance companies, banks, or other financial institutions. The contract issuers agree to repay the amount invested plus interest at a specified rate. To provide liquidity, a small portion of the fund's assets is invested in high-quality money market instruments.
Multi Asset/Balanced
Vanguard Wellington Fund
Seeks capital growth and current income by investing in a well-diversified portfolio composed mostly of stocks and bonds. The fund invests 60-70% of its assets in dividend-paying common stocks of established large companies. The manager seeks stocks that appear to be undervalued but have prospects for improvement, commonly referred to as value stocks. The remaining 30-40% of the fund's assets are invested mainly in fixed-income securities, including investment-grade corporate bonds, with some exposure to US Treasury and government agency bonds, and mortgage-backed securities. Agency securities are not explicitly guaranteed. Mortgage-backed securities are subject to prepayment risk. Bond investing is subject to risks such as interest rate, credit, and inflation risk.
Multi Asset/Inflation Response
PIMCO Inflation Response Multi-Asset Fund
The Inflation Response Multi-Asset Fund is a comprehensive, real return asset allocation strategy designed to hedge inflation risks while targeting enhanced return opportunities that inflation dynamics may present. The fund seeks to achieve this objective by providing diversified exposure to a broad opportunity set of inflation factors - or assets that will likely respond to different types of inflation - including Treasury Inflation-Protected Securities (TIPS), commodities, emerging market currencies (EM), real estate investment trusts (REITs), and gold, as well as tactical use of floating rate securities in the event of deflation or an extreme market shock. In addition, tail risk hedging strategies are used to limit the impact of periodic market stresses that may affect inflation-related assets.
Target Date
BlackRock LifePath Dynamic Funds
Invest in various investment strategies (stocks, bonds, money market instruments, and other asset classes), and link the strategy mix to a target retirement year. Each BlackRock LifePath Dynamic Fund's objective is to maximize total return with a risk level considered appropriate for the particular BlackRock LifePath Dynamic Fund's time horizon. The fund's investment manager changes the strategy mix, making it more conservative, as the target retirement year approaches. Each BlackRock LifePath Dynamic Fund has a different level of risk.