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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 $25 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 current age) |
2060 (25) |
2055 (30) |
2050 (35) |
2045 (40) |
2040 (45) |
2035 (50) |
2030 (55) |
2025 (60) |
2020 (65) |
2015 (70) |
2010 (75) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Limited Duration Fund | 3.0% | 3.0% | 3.0% | 4.0% | 5.0% | 7.5% | 10.0% | 15.0% | 20.0% | 38.0% | 50.0% |
| Core Bond Fund | 12.0% | 12.0% | 12.0% | 16.0% | 20.0% | 25.0% | 30.0% | 35.0% | 40.0% | 31.0% | 25.0% |
| Total Bond Allocation | 15.0% | 15.0% | 15.0% | 20.0% | 25.0% | 32.5% | 40.0% | 50.0% | 60.0% | 69.0% | 75.0% |
| Large Cap Growth Fund | 27.0% | 27.0% | 27.0% | 26.0% | 25.0% | 22.5% | 20.0% | 16.0% | 12.0% | 9.6% | 8.0% |
| Large Cap Value Fund | 27.0% | 27.0% | 27.0% | 26.0% | 25.0% | 22.5% | 20.0% | 16.0% | 12.0% | 9.6% | 8.0% |
| Small Cap Equity Fund | 15.0% | 15.0% | 15.0% | 13.5% | 12.0% | 11.0% | 10.0% | 9.0% | 8.0% | 5.6% | 4.0% |
| International Equity Fund | 16.0% | 16.0% | 16.0% | 14.5% | 13.0% | 11.5% | 10.0% | 9.0% | 8.0% | 6.2% | 5.0% |
| Total Equity Allocation | 85.0% | 85.0% | 85.0% | 80.0% | 75.0% | 67.5% | 60.0% | 50.0% | 40.0% | 31.0% | 25.0% |
| Total Shareholder Expense | 0.89% | 0.89% | 0.89% | 0.87% | 0.84% | 0.81% | 0.78% | 0.73% | 0.69% | 0.64% | 0.62% |
Catholic Target Date Portfolios with greater than 30 years to retirement are anticipated to have identical asset allocation structures
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.
FINANCIAL PRODUCTS
Have Investment Questions?
Please contact me for support and guidance.
Joseph Novak
Client Service Manager
(203) 800-4868
joseph.novak@kofc.org
SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA, 19456) is the distributor for the Knights of Columbus mutual funds. Check the background of SIDCO on BrokerCheck.
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