Sophisticated portfolio asset allocation made simple

Target date portfolios are the fastest growing option in defined contribution retirement plans, and have generally become the default option of choice for fiduciaries in large part due to their simplicity and general suitability. To select a suitable portfolio, the only knowledge an investor must have is the year in which they plan to retire. Knights of Columbus Asset Advisors uses modern portfolio theory, as well as industry and internal asset class return projections to build customized portfolios to pursue the highest anticipated risk adjusted returns given an investor’s time horizon. Many target date offerings use a fund of funds approach, but the “model portfolio” approach used by Knights of Columbus Asset Advisors avoids layering on any additional fees to better support investors’ returns. Allocations are made to Knights of Columbus mutual funds that rely on many of the strategies the Knights of Columbus use to invest proprietary capital for our $24 billion investment portfolio. All Knights of Columbus mutual funds are fully compliant with the United States Conference of Catholic Bishops guidelines on socially responsible investments (USCCB Guidelines).

Asset Allocations and Total Expenses

Year of Retirement
(approximate retirement age)
Limited Duration Fund 19.0% 14.0% 9.5% 7.0% 4.8% 3.8% 3.0% 3.0% 3.0%
Core Bond Fund 39.0% 34.0% 29.0% 24.0% 19.2% 15.2% 12.0% 12.0% 12.0%
Total Bond Allocation 58.0% 48.0% 38.5% 31.0% 24.0% 19.0% 15.0% 15.0% 15.0%
Large Cap Growth Fund 12.8% 16.8% 20.5% 23.0% 25.2% 26.2% 27.0% 27.0% 27.0%
Large Cap Value Fund 12.8% 16.8% 20.5% 23.0% 25.2% 26.2% 27.0% 27.0% 27.0%
Small Cap Equity Fund 8.2% 9.2% 10.2% 11.2% 12.3% 13.8% 15.0% 15.0% 15.0%
International Equity Fund 8.2% 9.2% 10.3% 11.8% 13.3% 14.8% 16.0% 16.0% 16.0%
Total Equity Allocation 42.0% 52.0% 61.5% 69.0% 76.0% 81.0% 85.0% 85.0% 85.0%
Blended Mutual Fund Expenses* 0.70% 0.74% 0.78% 0.82% 0.85% 0.87% 0.89% 0.89% 0.89%

Catholic Target Date Portfolios with greater than 30 years to retirement are anticipated to have identical asset allocation structures

*As of March 2019 "Blended Mutual Fund Expenses" assumes average asset allocations over the full year equal to the target allocation. Actual results may be higher or lower depending on the relative performance of each of the underlying mutual funds. Knights of Columbus Asset Advisors LLC has contractually agreed to waive fees and/or to reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses (collectively, “excluded expenses”)) from exceeding this level on the Fund’s Institutional Shares’ average daily net assets, respectively, until February 28, 2020. Expense ratios change over time and may be more or less than the target date models project.

Reduced Risk Over Time

Asset Allocation Glide Path

Knights of Columbus Catholic Target Date Portfolios are rebalanced to a sliding allocation that generally takes on less risk as an investor moves toward and through retirement. Re-balancing generally occurs once annually, but may be more frequent if substantial market movements justify more frequent activity.

Have Investment Questions?

Please contact me for support and guidance.

Joseph Novak
Client Service Manager
(203) 800-4868

SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA, 19456) is the distributor for the Catholic Investor Funds. Check the background of SIDCO on BrokerCheck.

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