Tier I Investment Options – Pre-Mixed Diversified Funds

Retirement Date Funds

The Collective Trust offers the following five Retirement Date Funds, a group of diversified investment funds each of which makes investments among different asset classes and is designed to correspond to a particular time horizon to retirement: Lifetime Income Retirement Date Fund, 2020 Retirement Date Fund, 2030 Retirement Date Fund, 2040 Retirement Date Fund, and 2050 Retirement Date Fund. With the exception of the Lifetime Income Retirement Date Fund, which is designed for those currently in retirement or who otherwise have initiated withdrawals from their investments, each Retirement Date Fund’s asset mix will, over time, become progressively more conservative. The target retirement date or the year of a participant’s intended commencement of withdrawal, for each Retirement Date Fund, other than the Lifetime Income Retirement Date Fund, is the year specified in the Fund’s name. The Retirement Date Funds utilize a broad range of asset classes and a periodic rebalancing process that results in the most conservative asset mix five years after the stated target retirement date. This most conservative asset mix will be consistent with the asset mix of the Lifetime Income Retirement Date Fund. Investment in each asset class is obtained by investing in index strategies or other pooled strategies designed for low tracking error relative to the market being replicated. Each Retirement Date Fund, with the exception of the Lifetime Income Retirement Date Fund, has an investment strategy representing specific risk and reward characteristics that take into account the remaining time horizon to the Fund reaching its most conservative investment mix. The longer the remaining time horizon to the year in which a Retirement Date Fund will reach its most conservative investment mix, the greater is the Retirement Date Fund’s current risk and potential reward profile. The manner in which the Funds become more conservative as they near the target date is known as a “glide path” (2020 Retirement Date Fund shown below). Read More


allocationofstocksandbonds

As you near retirement and move left to right along the glide path, the Fund’s investment mix automatically shifts to a greater allocation of more conservative investments such as bonds. For a complete description of these Funds, including their specific objectives, investment strategy, investment managers, and associated risks please refer to the Program Annual Disclosure Document (April 2016).

Retirement Date Funds

Type Expenses1 Strategy Risk Morningstar Fund Profile
Lifetime Income Retirement Date Fund: 0.693% Strategy Risk pdf Download
2020 Retirement Date Fund: 0.693% Strategy Risk pdf Download
2030 Retirement Date Fund: 0.693% Strategy Risk pdf Download
2040 Retirement Date Fund: 0.693% Strategy Risk pdf Download
2050 Retirement Date Fund: 0.693% Strategy Risk pdf Download

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1For additional details on fund expenses click here.

 

There can be no assurance that the Funds will achieve their investment objective. Furthermore, the Funds do not guarantee participants will meet their income needs for retirement.

Target Risk Funds

The Collective Trust offers the following three Target Risk Funds, each of which allocates its investments among different asset classes and is designed to represent risk and potential reward characteristics that reflect a particular level of investment risk: Conservative Risk Fund, Moderate Risk Fund and Aggressive Risk Fund.

Type Expenses1 Strategy Risk Morningstar Fund Profile
Conservative Risk Fund: 0.719% Strategy Risk pdf Download
Moderate Risk Fund: 0.746% Strategy Risk pdf Download
Aggressive Risk Fund: 0.771% Strategy Risk pdf Download

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1For additional details on fund expenses click here.

For additional details, including investment objectives, fees and expenses of the fund, portfolio turnover, principal investment strategies, primary risks, and total and average annual returns, please read the Program Annual Disclosure Document (April 2016). This Disclosure Document contains important information about the Program and investment options. For e-mail inquiries, contact us at: joinus@abaretirement.com.

The risk factors that pertain to investment in the Funds are described in detail in the description of each Fund included in the Program Annual Disclosure Document (April 2016). These risk factors may include, but are not limited to, risks of investing in equity securities, risks of investing in equity securities of non-U.S. companies and smaller companies, interest rate risk applicable to investment in fixed-income securities, credit risk applicable to investment in fixed-income securities, including those of lower credit quality, risks of investing in REITs, risk of reliance on industry research, risks of investing in U.S. Government obligations, risks related to securities lending, risk of TBA commitments, risk of “when-issued” securities, risks related to market disruptions and governmental interventions, risks associated with structure of collective trust, and risks associated with commodity investments and derivatives.

The Collective Trust and the Funds are not Regulated Investment Companies or subject to SEC Disclosure Requirements. The Collective Trust and the Funds are not registered as investment companies under the Investment Company Act of 1940 and, therefore, are not subject to compliance with the requirements of that Act.

Disclosure Document

Request the Program Annual Disclosure Document (April 2016). This Disclosure Document contains important information about the Program and investment options.
800.826.8901 For email inquiries, contact us at: joinus@abaretirement.com.

For additional information on the Program’s investment options, please contact us at 800.826.8901.