For participants who understand the need to participate in a retirement plan but have little time or desire to invest funds personally, we provide ASC Select Target Date Funds (TDP). These funds are age-weighted strategies that create an allocation that is based on a participant’s age and years to retirement (the Target).
What Is It?
A Select TDP differs from a Core Fund or Dynamic Trust Fund, which invest all funds within the profile at the same degree of risk. The Select TDP recognizes that a successful retirement strategy needs to be designed for a retirement that could last several decades. In the early years of accumulation—those farthest away from retirement, the profile may be more aggressive, but will invest more conservatively as retirement approaches.
Unlike saving for a house or college, retirement is something that will take place over multiple decades for the average participant. With this, not all funds will be needed on the first day of retirement. Since the need for funds and liquidity will be over an extended period of time for most retirees, ASC does not think all funds should be invested with the same amount of risk.
Select Target Date 2035-2065
Investors in this fund can tolerate a fair level of fluctuations in the value of their investments in the short-term in anticipation of possible higher returns. Investment management is focused on long-term capital appreciation. This fund is designed for investors expecting to retire around the years 2035+ or who have a time horizon of 20+ years before retiring (or Date of Birth: 1973+). The ASC Select Target Date 2035-2065 Fund is a hybrid strategy allocated 50% to passively managed Fidelity Funds and 50% to actively managed American Funds. The underlying glideslope allocation is a mirror allocation of Fidelity and American Funds Target Date funds which invests in a portfolio of equity, fixed income, and short term securities, and is reallocated over time to become more conservative as the fund approaches its target year.
Select Target Date 2030
Investors in this fund can tolerate some level of fluctuations in the value of their investments in the short-term in anticipation of possible higher returns. Investment management is focused on stable growth. This fund is designed for investors expecting to retire in the years 2030-2034 or who have a time horizon of 15-19 years before retiring (or Date of Birth: 1964-1968). The ASC Select Target Date 2030 Fund is a hybrid strategy allocated 50% to passively managed Fidelity Funds and 50% to actively managed American Funds. The underlying glideslope allocation is a mirror allocation of
Fidelity and American Funds Target Date 2030 funds which invests in a portfolio of equity, fixed income, and short term securities, and is reallocated over time to become more conservative as the fund approaches its target year.
Select Target Date 2025
Investors in this fund are able to tolerate some volatility. Investment management is focused on stable growth. This fund is designed for investors expecting to retire in the years 2025-2029 or who have a time horizon of 10-14 years before retiring (or Date of Birth: 1959-1963). The ASC Select Target Date 2025 Fund is a hybrid strategy allocated 50% to passively managed Fidelity Funds and 50% to actively managed American Funds. The underlying glideslope allocation is a mirror allocation of Fidelity and American Funds Target Date 2025 funds which invests in a portfolio of equity, fixed income, and short term securities, and is reallocated over time to become more conservative as the fund approaches its target year.
Select Target Date 2020
Investors in this fund require access to their investments within ten years. Investment management is focused on balancing asset stability and income. This fund is designed for investors expecting to retire in the years 2020-2024 or who have a time horizon of 5-9 years before retiring (or Date of Birth: 1954-1958). The ASC Select Target Date 2020 Fund is a hybrid strategy allocated 50% to passively managed Fidelity Funds and 50% to actively managed American Funds. The underlying glideslope allocation is a mirror allocation of Fidelity and American Funds Target Date 2020 funds which invests in a portfolio of equity, fixed income, and short term securities, and is reallocated over time to become more conservative as the fund approaches its target year.
Select Target Date 2015
Investors in this fund are retiring within five years and are balancing the need for retirement income with their concerns of outliving their retirement years. This fund is designed for investors expecting to retire in the years 2015-2019 or who have a time horizon of 4 years or less before retiring (or Date of Birth: 1949-1953). The ASC Select Target Date 2015 Fund is a hybrid strategy allocated 50% to passively managed Fidelity Funds and 50% to actively managed American Funds. The underlying glideslope allocation is a mirror allocation of Fidelity and American Funds Target Date 2015 funds which invests in a portfolio of equity, fixed income, and short term securities, and is reallocated over time to become more conservative as the fund approaches its target year.
Select Target Date 2010
Investors in this fund are currently in retirement and are balancing the need for current income with their concerns of outliving their retirement years. This fund is designed for investors who are currently in their retirement years (or Date of Birth: 1948 or earlier). The ASC Select Target Date 2010 Fund is a hybrid strategy allocated 50% to passively managed Fidelity Funds and 50% to actively managed American Funds. The underlying glideslope allocation is a mirror allocation of Fidelity and American Funds Target Date 2010 funds which invests in a portfolio of equity, fixed income, and short term securities.
Passive vs. Active
There is a lot of talk these days about what type of investment strategy works best. Passive – low cost investment strategies which attempt to mirror indexes such as the S&P 500, and Active – where managers attempt to outperform the index. ASC believes both strategies have merit depending on where the markets are trading. Instead of choosing one over the other, our DRT Funds are hybrid strategies that allocate 50% to passively managed Vanguard Funds and 50% to actively managed American Funds. Likewise, the underlying Target Date Fund glideslope allocations mirror the allocation of Fidelity and American Funds Target Date Funds.
