PROSPERITY BANCSHARES INC. 401K PROFIT SHARING PLAN Investment Model Portfolios

Investment options of PROSPERITY BANCSHARES INC. 401K PROFIT SHARING PLAN

Total Available Funds: 19

Asset Class

Ticker

Description

Others
ROOT	CASH	TD Bank USA MMDA Money Mkt Fund
ROOT	CASH	Prosperity Bank Money Mkt Fund
Moderate Allocation	ABALX	American Balanced A Mutual Fund
World Allocation	CAIBX	American Funds Capital Income Builder A
Moderate Allocation	AMECX	American Funds Income Fund of Amer A

US EQUITY
MID-CAP BLEND	GTAGX	AIM Mid Cap Core Equity Fund A
LARGE VALUE	PNEAX	Allianz NFJ SmallCap Value Fund A
LARGE VALUE	AWSHX	Am. Funds Wash. Mutual Fund A
LARGE GROWTH	AMCPX	American Funds AMCAP Fund A
LARGE VALUE	AMRMX	American Mutual Fund A
LARGE BLEND	ANCFX	American Funds Funda. Investors A
LARGE GROWTH	AGTHX	American Funds Growth Fund of Amer A
LARGE BLEND	RICFX	American Funds Invest. Co. of Amer
LARGE GROWTH	CSIEX	Calvert Social Investment Equity A

FIXED INCOME
WORLD BOND	RCWFX	Am. Funds Cap.World Gro. & Inc. Fund
Short-Term Bond	RBOFX	American Funds interm Bond Fund A
Intermediate-Term Bond	PTTRX	Pacific Investment Management Company Total Return Fund A

INTERNATIONAL EQUITY
Foreign Large Blend	AEPGX	American Funds EuroPacific Growth A
WORLD STOCK	ANWPX	American Funds New Perspective A

Investment model portfolios

We provide two types of investment model portfolios for PROSPERITY BANCSHARES INC. 401K PROFIT SHARING PLAN participants. You can customize and follow a model portfolio in your plan account.

Types of portfolio strategies

Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
  - Less error-prone
  - Infrequent rebalancing or transactions
  - Tax efficient for taxable brokerage investments
- Cons:
  - Interim loss or drawdown can be substantial
  - Possible low returns for an extended period, such as 10 years or longer
Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
  - Reduce large interim loss or drawdown
  - Less sensitive to investment entry point
  - Likely to improve returns
- Cons
  - Demand more frequent rebalancing or transactions
  - Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
  - Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets

These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.

Let us know (Email us) if you need help to create a custom model portfolio for your plan.

Customize a model portfolio now

Retirement Plan (401(k)) Info for PROSPERITY BANCSHARES INC. 401K PROFIT SHARING PLAN

PROSPERITY BANCSHARES, INC. 401(K) PROFIT SHARING PLAN

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