The Program is committed to providing full fee transparency. For illustration purposes, the table to the right breaks down program fees based on a weighted average across all core Funds available through the Program. The tables below provide a summary of the various costs and expenses of the Collective Trust with respect to an investment in each of the Funds. These estimated annual expenses are stated as a percentage of the assets of each Fund. The expenses are calculated based on amounts incurred by the Collective Trust for the year ended December 31, 2017 adjusted to reflect estimated reductions relating to operational and contractual changes. An explanation of the manner in which certain expenses are calculated and the portions of these expenses paid to certain parties in connection with the Program can be found by consulting the Annual Disclosure Document. Each Fund pays transaction costs, such as commissions, when it buys and sells securities (“portfolio turnover”). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Total Annual Fund Operating Expenses, affect Fund performance.
Fees are displayed as weighted averages across all core Funds available through the Program. These averages were calculated by taking the investment expense ratio of each Program fund as of April 30, 2018, and multiplying it by its weight percentage based on the amount of assets held in each fund as of 12/31/2017. Each investment has its own expense ratio and a participant will bear the cost of the expense ratios of the funds they choose in their accounts.
These fees are based on weighted averages but may vary depending on investment option.
The rates of Investment Advisor Fees payable to certain Investment Advisors to several Funds changed during 2017. For purposes of this table, for the Funds with changes in Investment Advisors during 2017, Investment Advisor Fees are based on the contractual rates of Investment Advisor Fees and target allocations to Investment Advisors as of December 31, 2017. In addition, Investment Advisor Fees shown for the Large Cap Equity Fund reflect a change in the rate paid to an Investment Advisor to the Large Cap Equity Fund that became effective March 2018, and Investment Advisor Fees shown for the Real Asset Return Fund reflect a change to that Fund’s Investment Advisors, which is anticipated to occur in the third quarter of 2018.
During the year ended December 31, 2017, the ABA Retirement Funds agreed to waive a portion of the Program expense fee payable to ABA Retirement Funds. All but a de minimis portion of such fee waiver will be discontinued as of April 30, 2018. The fee rate disclosed in this column reflects the full Program expense fee to which ABA Retirement Funds was entitled in 2017, and does not reflect any waived amounts in 2017.
Other Expenses include fees relating to recurring operating expenses such as printing, legal, consulting and auditing expenses.
Each Fund invests at least some of its assets through other commingled investment vehicles. Certain Funds also invest in other Funds in the Program. As a result, investors in such Funds indirectly bear expenses of those underlying commingled investment vehicles and other Program Funds, which may include, among other things, Investment Advisor Fees, Trust, Management and Administration Fees, Program Expense Fees, and audit and legal fees. Certain commingled investment vehicles or other Program Funds in which a Fund may invest, and/or the operating expenses thereof, may have changed during 2017, or are expected to change during 2018. For purposes of this table, Acquired Fund Fees and Expenses are based on estimated operating expenses of and target allocations to underlying commingled investment vehicles or other Program Funds as of December 31, 2017, except in the case of the Conservative Risk Fund, Moderate Risk Fund, Aggressive Risk Fund and Real Asset Return Fund, where Acquired Fund Fees and Expenses are based on estimated operating expenses of and target allocations to underlying commingled investment vehicles expected to be in effect in July 2018.
Total Annual Fund Operating Expenses numbers may not sum due to rounding.
Total Annual Fund Operating Expenses for the Conservative Risk Fund, Moderate Risk Fund, and Aggressive Risk Fund are based on estimated fees and expenses and estimated assets for 2018.
Assets reported include the assets of other Program Funds in which the Fund was invested as of December 31, 2017.
The Conservative Risk Fund, Moderate Risk Fund and Aggressive Risk Fund invest a portion of their assets in other Funds in the Program. Only the Investment Advisor Fees, Program Expense Fees, Trust, Management and Administration Fees and Other Expenses borne directly by these Funds are included in the appropriate columns. Any fees and expenses borne indirectly through investment in other Funds in the Program are included as Acquired Fund Fees and Expenses of these Funds.
The Global All Cap Equity Fund invests all of its assets in other Funds in the Program. The Global All Cap Equity Fund does not pay any Investment Advisor Fees, Program Expense Fees, Trust, Management and Administration Fees or Other Expenses directly. These fees and expenses are borne indirectly through investment in other Funds in the Program and are included as Acquired Fund Fees and Expenses of the Global All Cap Equity Fund.
From time to time, the Funds may hold investments in business development companies, or BDCs. BDCs are a specialized type of closed-end investment company that invest in, and often provide managerial advice and support to, smaller, developing, often privately-held companies. The acquired fund fees and expenses of the Fund’s investments in BDCs, if any, are not included in the table above. Such fees and expenses, if included in the table above, would have increased Total Annual Fund Operating Expenses of the Small-Mid Cap Equity Fund and Bond Core Plus Fund by 0.003% and 0.011%, respectively, as of December 31, 2017.
Total Annual Fund Operating Expenses for the Stable Asset Return Fund do not include 0.202% (as of December 31, 2017) in annual wrap contract fees; these fees are charged against the crediting rate of the Fund.
The Alternative Alpha Fund pays no Investment Advisor fees directly (independent of the Trust, Management and Administration fee payable to MTC, which is shown under that heading). The investment management fees and other fees and expenses payable by the commingled investment vehicles in which the Alternative Alpha Fund invests are included as Acquired Fund Fees and Expenses of the Alternative Alpha Fund.
Please read the Program Annual Disclosure Document (April 2018) carefully before investing. This Disclosure Document contains important information about the Program and investment options. Contact us at: email@example.com.
Voya Financial Partners and Voya Retirement Advisors are members of the Voya family of companies ("Voya"). Voya, the ABA Retirement Funds, Mercer Trust Company, TD Ameritrade, and state and local bar associations are separate, unaffiliated entities, and not responsible for one another’s products and services.