SIP Summary Plan Description - Vought Aircraft Division

one investment fund, you can lower the impact that periodic losses from any one investment
option may have on your overall account balance. Spreading your investments across several
different funds with different risk characteristics is called “diversifying” your account.
Dollar Cost Averaging
Even investment experts can’t predict how an investment will perform in the future. However, by
investing the same amount in the SIP each week, you can take advantage of an investment
strategy called “dollar cost averaging.” When you invest a fixed amount in investment funds on a
regular basis, you tend to buy more units of the funds when prices are low and fewer units when
prices are high. This way, the price of the units you buy averages out over time, regardless of
what happens in the investment market.
Tax-Deferred Compounding
Compounding means your investment earnings are reinvested and may also generate earnings.
The SIP allows you to defer paying income taxes on any earnings – including compound
earnings – until you withdraw them. This means that your account may grow faster than a
regular investment account because the earnings aren’t reduced each year for taxes.
Risk and Return: No Guarantee of Performance
When deciding how to invest your SIP account, you should consider the potential risk and return
of each of the available investment options. All investments involve some degree of risk. The
value of some investments may grow over the long term but may decline in the short term.
Others will remain relatively stable in value over the long term and can be expected to grow at a
much slower rate. In general, higher-risk investments, over time, have shown the potential to
earn more than low-risk investments. The trade-off, however, is that the value of riskier
investments may rise and fall dramatically, especially in the short term. It is important to keep
in mind that the SIP offers no investment guarantees.
Investment Options
The Plan offers you different investment funds and lets you choose how to invest your
contributions. You decide what percentage of your contributions you want to direct into each
fund, in multiples of 1%. You may elect to put 100% of your contributions into one fund or
spread out your contributions among several different funds. Your elections for your own
contributions are separate from the Company Matching Contributions, but your elections for
Company Matching Contributions also apply to Company Retirement Contributions, if any.
The SIP offers you a wide range of investment fund options, each with a different degree of
potential risk and return.
The following funds are available for investment:
Target Date Retirement Funds:
– Vought Retirement Fund
– Vought 2010 Fund
– Vought 2020 Fund
– Vought 2030 Fund
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