More About Our New Model Portfolios
What is happening?
In October 2017, Honest Dollar will aim to transition from your existing portfolio to model portfolios developed and managed by Goldman Sachs Asset Management, L.P. (GSAM). The new portfolios will continue to invest in exchange traded funds (ETFs) across multiple unaffiliated providers and asset classes while maintaining the risk profile of your existing selected portfolio.
The investment portfolios managed by GSAM will include a larger selection of unaffiliated exchange traded funds (ETFs) that will provide additional diversification across asset classes, which we believe can help our clients better achieve their objective in saving for retirement.
What will be in the GSAM model portfolio?
The investment portfolio managed by GSAM will maintain the same weighting of equity and bond exposure as your current portfolio but will consist of a larger selection of unaffiliated exchange traded funds (ETFs) that will provide additional diversification across asset classes, which we believe can help our clients achieve their objective in building wealth for retirement. The exact composition of that portfolio will be available to you at the time we transition to the GSAM portfolios.
What should you do?
You do not need to take any action with respect to this transition to model portfolios developed and managed by GSAM. We will contact you again when the transition to the GSAM model portfolios occurs.
If you wish to change your current portfolio selection, please update your profile by completing our updated suitability questions here.
If you do not wish to remain at Honest Dollar in light of this change, please contact us at firstname.lastname@example.org.
How will the transition work?
In October, we intend to sell the ETFs currently held in your portfolio and purchase new ETFs in accordance with the model portfolios developed by GSAM. You will see these transactions reflected on your October statement. You will not incur any transaction costs associated with these changes.
Will I incur any fees as a result of this transition?
Honest Dollar will not impose any transaction costs on your account in connection with these changes. The ETFs that make up the portfolios have their own expenses to cover and the fund fees vary and are subject to periodic changes. You can find the current expense ratios for each of the funds in their prospectus. The current expenses for the ETFs in your portfolio can be found here and the prospectuses for the ETFs in the new model portfolios will be available at the time we transition to the GSAM portfolios.