Utah Retirement Systems(URS)
PCRA
A Schwab Personal Choice Retirement Account® (PCRA) is one of the investment options offered by Utah Retirement Systems (URS). The PCRA provides investors with more alternatives.
URS Traditional Allocation options
URS provides the basic fund selections of traditional investing such as; Large-cap, Mid-cap, Small-cap, Income, Target date, etc..
These choices work well in positive market conditions.
However, in times like 2008 & 2022, they follow the markets down & become highly correlated, therefore not providing real diversification benefits as expected.
PCRA Alternative Allocation options
PCRA gives you the ability to invest in alternative funds which have the potential to make money when traditional investments don’t.
Institutions have been investing like this for decades, and now you have the same opportunity.
Potential benefits of adding alternative investments
Timeframe shown: January 2019 - Dec 2023
Green line:Strategy is comprised of 38% stock index exposure, 43% Alternative investments, 19% Income strategies.
Red line: 60/40 portfolio is comprised of 60% VT, Vanguard Total Stock Market Index ETF, 40% AGG, iShares Core US Aggregate Bond ETF. Past performance is no guarantee of future results. Results shown are a model that doesn’t represent actual account performance since no management fees were assessed and some data is represented with historical backtesting. All details should be obtained before making investment decisions. Securities offered through Connect Financial, LLC, Registered Investment Advisor.
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Minimum account size - $30,000
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Quarterly fee of $12 per PCRA
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Advisor management fee charged in addition if applicable
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Contributions continue into core 401k plan
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$1,000 minimum balance needs to remain in Core plan