Catholic Target Date Investment Portfolio & Funds | KoCAA

INVESTING SIMPLIFIED: TARGET DATE SOLUTIONS

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).

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%	3.8%	4.8%	7.0%	9.5%	14.0%	19.0%	32.0%	47.0%	60.0%
Core Bond Fund	12.0%	12.0%	15.2%	19.2%	24.0%	29.0%	34.0%	39.0%	34.0%	26.5%	20.0%
Total Bond Allocation	15.0%	15.0%	19.0%	24.0%	31.0%	38.5%	48.0%	58.0%	66.0%	73.5%	80.0%
Large Cap Growth Fund	27.0%	27.0%	26.2%	25.2%	23.0%	20.5%	16.8%	12.8%	10.4%	8.4%	6.4%
Large Cap Value Fund	27.0%	27.0%	26.2%	25.2%	23.0%	20.5%	16.8%	12.8%	10.4%	8.4%	6.4%
Small Cap Equity Fund	15.0%	15.0%	13.8%	12.3%	11.2%	10.2%	9.2%	8.2%	6.4%	4.4%	3.2%
International Equity Fund	16.0%	16.0%	14.8%	13.3%	11.8%	10.3%	9.2%	8.2%	6.8%	5.3%	4.0%
Total Equity Allocation	85.0%	85.0%	81.0%	76.0%	69.0%	61.5%	52.0%	42.0%	34.0%	26.5%	20.0%

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

Please see the Mutual Fund tab on the right side of the page to view the gross and net expense ratios of each underlying fund shown in the above chart.

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.

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Interested in streamlining your investments? You can choose to invest with a particular retirement date in mind, then sit back and relax, knowing that your target date fund will endeavor to help you pursue growth while also working to reduce your exposure to historically risky assets over time.

Knights of Columbus Asset Advisors target date solutions offer a strategic portfolio asset allocation and investment strategy customized to your timeframe and risk profile. Utilizing our extensive industry expertise, our investment professionals will create a model portfolio of mutual funds designed to pursue the best risk-adjusted returns given your time horizon.

FREQUENTLY ASKED QUESTIONS

What is a target date model portfolio?
A target-date model portfolio is a group of mutual funds that are designed to work together to optimize investment portfolio returns for a specific timeframe. This all-in-one investment strategy provides a diversified portfolio asset allocation that evolves with your financial needs and [pursues/seeks] results on your timeline.

How do target date model portfolios work?
Typically used for long-term investments, target date solutions are aimed at a particular time horizon. Portfolio allocation changes over the investing period, typically moving from assets with higher growth potential (which often means higher risk) to historically safer, lower-risk assets as the target date approaches. This investment strategy is called a “glide path.”

What happens to target date model portfolios after the target date?
Target date solutions fall into two broad groups. While both approaches result in a static portfolio for all remaining investors, one type uses a glide path that takes you to the date identified as the target. At that time, your investment manager stops adjusting the fund’s allocation. The other type takes you through your target date, as your investment manager continues to shift the asset allocation for as long as another 20 years. Given that investors at age 65 have a materially different time horizon than those who are age 85, many investors prefer an account that manages through retirement.

Modern Portfolio Theory (MPT) is a theory on how risk-averse investors can construct portfolios to maximize expected return based on a given level of market risk. MPT can also be used to construct a portfolio that minimizes risk for a given level of expected return.

A PORTFOLIO TARGETING YOUR RETIREMENT DATE

INVESTING SIMPLIFIED: TARGET DATE SOLUTIONS

REDUCED RISK OVER TIME

FREQUENTLY ASKED QUESTIONS

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