Page 25 - DCAC February 2023 Files

Active management versus passive management

There are generally two types of mutual funds: Those that are actively managed and those that are passively
managed, such as index funds. Index funds follow an investment strategy in which a mutual fund seeks to match,
rather than outperform, a particular market benchmark – such as the Standard and Poor’s 500 Index – by holding
all the securities that make up that benchmark (or a statistically representative sample of it).

By contrast, an actively managed fund has a fund a fund manager or management team making decisions about
how to invest the money invested in the fund. Index funds do not have a management team making investment
decisions.

What do you need to do?

Although you do not need to do anything because of these changes, now may be a good time to review your
investments and decide if they still meet your retirement savings goals. Diversifying your investments to include
asset classes with different holdings, management styles, and risk factors may help to reduce your exposure to
any single investment type and potentially yield more consistent returns over time. Please be sure to regularly
monitor your retirement account(s) and investment options available to you.

Please consider your goals, needs, risk tolerance, and time horizon before making any investment
decisions – and consult with your financial professional if needed.

For more information

 Online tools and services – Go to empower.com/sanmateocounty, where you can manage
your account online with a multitude of resources and information.

 Contact the Empower Customer Care Center – Speak with a representative from Empower
at 833-SMD-PLAN (763-7526). They are available Monday through Friday, from 5:00 a.m. to
7:00 p.m. PT and on Saturday, from 6:00 a.m. until 2:00 p.m. PT.

 Schedule a meeting with your local representative – Your local representative can assist you
understand your investment options and other plan-related products and services. Schedule a
meeting today by visiting empower.com/sanmateocounty.

Carefully consider the investment option’s objectives, risks, fees and expenses. Contact Empower for a prospectus,
summary prospectus for SEC registered products or disclosure document for unregistered products, if available,
containing this information. Read each carefully before investing.
Fund changes may alter the risk exposure of an investment account. Some cash-alternative options (other than money market
funds), such as guaranteed interest funds or stable value funds, may have withdrawal and transfer restrictions. Carefully
consider the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income and
investments. Adjustments may be needed to realign the account with its desired investment strategy. Asset allocation,
diversification, and/or rebalancing do not ensure a profit or protect against loss.

Securities, when presented, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC.
EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser, Empower Advisory
Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal or tax
recommendations or advice.
“EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of
America.
©2022 Empower Retirement, LLC. All rights reserved. RO2585135-1122