FUND TYPE

529 Plan
A United States program to help parents finance education expenses. Most states sponsor Section 529 plans.
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AVC
Additional Voluntary Contributions.
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Annuity Fund
A fund set up to provide annuities to beneficiaries.
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Bank
Any lender or credit union.
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Corporate Defined Benefit (DB)
A company pension plan to which contributions are usually made by the employee, the employer, or both, which pays retired employees an amount based on salary history and years of service. The employer bears the investment risk.
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Corporate Defined Contribution (DC)
A company retirement plan for employees who choose to pay a small proportion of their salary into an investment fund to be used to purchase an annuity on retirement. The sponsoring company usually contributes to the plan but the employee bears the investment risk. In the United States plans are sometimes know as a 401(k) or 403(b).
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Endowment
A permanent fund bestowed upon an individual or institution, such as a university, museum, hospital, or foundation, to be used for a specific purpose.
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Foundation
An entity which exists to support a charitable institution, and which is funded by an endowment or donations.
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Health Plan
A private health insurance plan funded by employee contributions.
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Hospital Plan
A non-profit entity that manages a hospital or similar healthcare facility. Refers only to endowment/foundation portion of operations.
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Hybrid DB-DC/Cash Balance
A cash-balance plan that exists alongside either a DB or DC plan (or both).
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Insurance
Insurer (referring to an insurer’s general account portfolio).
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Liability Fund
Insurance fund that sets aside assets in case of loss-causing event, such as an oil spill or lawsuit.
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Manager of Managers
A fund that invests in a portfolio of asset managers. A manager-of-managers will monitor, hire and fire, specialists, typically around 15 to 20 investment managers.
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Money Purchase Plan
A defined contribution plan in which employer’s contributions are proportional to each employee’s wages.
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Non-Profit Organization
An incorporated organization which exists for educational or charitable reasons, also known as not-for-profit organizations. Shareholders or trustees do not benefit financially.
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Nuclear Decommissioning Trust
Entity set up to oversee assets to fund decommissioning of nuclear power plants.
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Operating Fund
Fund that oversees assets earmarked for specific purpose, such as a capital project.
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Permanent Fund
Fund set up to pay make regular payments to beneficiaries in perpetuity. See Alaska Permanent Fund, which uses oil revenues and pays an annual benefit to all Alaska residents.
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Profit-Sharing Plan
A DC-type plan in which an employer offers to share profits with employees by contributing a portion of them to a qualified retirement plan.
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Public Defined Benefit (DB)
A state-sponsored or local authority pension plan to which contributions are usually made by the employee, the employer, or both, which pays retired employees an amount based on salary history and years of service. The employer bears the investment risk.
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Public Defined Contribution (DC)
A state-sponsored or local authority retirement plan for employees who choose to pay a small proportion of their salary into an investment fund to be used to purchase an annuity on retirement. The sponsoring company usually contributes to the plan but the employee bears the investment risk. In the United States plans are sometimes know as a 401(k) or 403(b).
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Settlement Fund
Entity funded by legal settlement. See U.S. Tobacco Settlement.~
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Stakeholder
Entity created to encourage employees without access to a corporate retirement plan to invest in a pension. Use to supplement Social Security or other government savings plans.
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Surplus Fund
Entity (usually governmental) that manages assets in excess of expenditures.
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Trust Fund
Assets held in a trust.
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Union/Multi-employer Defined Benefit (DB)
Union defined benefit plan.
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Union/Multi-employer Defined Contribution (DC)
Union defined contribution plan.
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