What if there’s a better target-date fund for your employees?
Morningstar® Lifetime Index FundsSM
The Morningstar Lifetime Index Funds are a series of diversified, low-cost1 target-date funds2 designed to support your employees’ investing needs—both up to and through their retirement.
Created in collaboration with UBS Asset Management, the Morningstar Lifetime Index Funds include growth, moderate, and conservative series. With help from Morningstar Investment Management's complimentary workforce analysis, you can select the series that best aligns with the needs of your employees.
Why Choose Morningstar® Lifetime Index FundsSM
The funds track the Morningstar® Lifetime Allocation IndexesSM, a series of indexes offered by Morningstar, Inc., Morningstar Investment Management's parent company, which some plan sponsors have used as a benchmark for their retirement plans since the Morningstar Lifetime Index Funds were established in 2009.
Support Through Retirement
The Morningstar Lifetime Index Funds are designed to provide your employees with an appropriate investment strategy, not just while they save for retirement, but once they’re in retirement, too. The Funds will continue to have their asset allocation rebalanced even after your employees reach their target retirement date.
Diversification at a Low-Cost1
The Morningstar Lifetime Index Funds cost eight basis points—a fraction of the industry average cost of 62 basis points.3 They use a set of 21 asset classes that provide global diversification, leveraging decades of thought leadership and research from Morningstar, Inc. and its subsidiaries.
One size doesn’t necessarily fit all when it comes to workplace retirement plans. The investment needs of a retail store, for example, might be totally different from those of a law firm. Morningstar Investment Management's three glide paths allow you to select the one that best suits the unique needs of your employees.
Get a Side-By-Side Look of Your Options
Choosing the right qualified default investment alternative for your employees is a big decision, but it doesn't have to be a complicated one. Our complimentary glide path analysis is designed to make it easier to compare your options.
Morningstar Investment Management starts by evaluating a range of participant demographic data obtained through your plan's recordkeeper to help you visualize the unique needs of your employees.
Then, the findings can help you pinpoint which investment product—whether your current one or a Morningstar Lifetime Index Fund series—best aligns with the needs of your plan.
Take the Next Step
Get in touch to receive a complimentary glide path analysis and explore whether the Morningstar Lifetime Index Funds can help your workforce reach their retirement goals.
About Morningstar Investment Management
Our parent company, Morningstar, Inc., was founded on the simple idea that when people have good investment information, they can make better choices that help them achieve their financial goals. In the retirement solutions group at Morningstar Investment Management LLC, a subsidiary of Morningstar, Inc. and a registered investment adviser, our advocacy for the individual investor extends to the workplace retirement market where the responsibility for investing and saving now rests with employees. We are committed to helping those individuals save for the retirement they want by providing products and services that range from a managed accounts service to custom models to target-date products and fiduciary services.
1 Morningstar Lifetime Index Funds cost eight basis points—significantly less than the industry average cost of 62 basis points according to Morningstar, Inc.’s 2019 Target-Date Fund Landscape report.
2 The Morningstar Lifetime Index Funds are organized as a series of collective investment trusts.
3 According to Morningstar, Inc.’s 2019 Target-Date Fund Landscape report.
Morningstar Investment Management LLC offers the Morningstar Glide Path Selection Tool to assist plan sponsors in the determination of an appropriate glide path for their plan. Estimated plan participant asset allocations are determined using basic data provided by the plan sponsor, which Morningstar Investment Management does not independently verify. Particular investment options may not be appropriate investments for your plan, and there may be other investment options that are more suitable. The information, data, and opinions that are part of the tool and any related output generated includes proprietary information of Morningstar Investment Management and may not be copied or redistributed for any purpose. Morningstar Investment Management does not warrant this information to be accurate, complete, or timely and is not responsible for any damages or losses arising from the use of this information. The Morningstar Glide Path Selection Tool should not be the only method by which an investment or a particular investment option is chosen for a plan. Morningstar Investment Management does not guarantee the results of the Glide Path Selection analysis, their advice, recommendations, or the objectives of a glide path selected based on this analysis will be achieved.
The Morningstar Lifetime Index Funds (the "Funds") are collective investment funds under the UBS (US) Group Trust (the "Group Trust"). The Funds were created for the collective investment and reinvestment of assets of certain eligible corporate and governmental employee benefit plans pursuant to the Group Trust's Declaration of Trust, as amended and restated from time to time.
UBS Asset Management Trust Company ("UBS-AM"), an Illinois-chartered trust company, is the trustee of the Group Trust and the investment manager of the Funds. UBS-AM is a member of the UBS Asset Management division of UBS Group AG. It has retained Morningstar Investment Management LLC ("Sub-Adviser"), a registered investment adviser and subsidiary of Morningstar, Inc., to act as its investment subadviser for the Funds. Morningstar Investment Management acts as a non-discretionary subadviser for the Funds by monitoring performance and tracking error of the Funds, and providing recommendations on the ongoing management of the Funds. Morningstar Investment Management is not acting in the capacity of adviser to individual investors. Morningstar Investment Management also assists UBS-AM with the marketing and promotion of the Funds.
The Morningstar Lifetime Allocation Indexes (the “Indexes”) are service marks of Morningstar, Inc. and have been licensed for use for certain purposes by UBS-AM. The Funds are not sponsored, endorsed, sold or promoted by Morningstar, Inc. and Morningstar, Inc. makes no representation regarding the advisability of investing in the Funds. The Morningstar name and logo are registered trademarks of Morningstar, Inc. Morningstar, Inc. and its subsidiaries are not affiliated with UBS-AM or its affiliates. There is no guarantee that a Fund will actually achieve any objectives, performance expectations, risk or return targets set forth in this document, the Fund’s disclosure document or elsewhere. Before selecting the Funds as an investment option, plan sponsors should carefully consider the Funds' investment objectives, risk factors, and charges and expenses. Plan sponsors should carefully read the Group Trust's Declaration of Trust and the Funds' disclosure documents before selecting the Funds. Risks associated with an investment in a Fund, include, without limitation: new fund risk, target date fund risk, management risk, index tracking risk, risk of loss, market risk, equity risks, fixed income risks, foreign country and emerging markets risks, inflation-linked instruments risk, high yield bond risk, currency risk, commodities risk, and derivatives risk.
The values of the Funds will fluctuate up to and after their target dates. There is no guarantee the Funds will provide adequate income at or through retirement. There is no guarantee that the Funds will actually achieve any objectives, performance expectations, risk or return targets. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Units of a Fund are not deposits or obligations of UBS-AM, its affiliates or any bank. The units and the value of a Fund are not guaranteed by the Federal Deposit Insurance Corporation or by any other governmental agency.
The information contained in this document does not constitute a distribution, nor should it be considered a recommendation to purchase or sell any particular security or fund. The Funds are not mutual funds and are not registered as investment companies under the Investment Company Act of 1940, as amended. In addition, the offering of participation units in the Funds is not registered under the Securities Act of 1933, as amended, or any state securities laws. The offering and sale of the participations in certain jurisdictions may be restricted by law. The Funds may, in addition to other investments, invest in futures contracts, securities futures contracts or products, derivatives, and other similar investments. UBS-AM has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act of 1936, as amended, pursuant to Regulation 4.5 of the Commodity Futures Trading Commission (CFTC); therefore, UBS-AM is not subject to registration or regulation as a “commodity pool operator”. The views and opinions of Morningstar, Inc. or its affiliates are not necessarily those of UBS-AM or its affiliates. All information and opinions are subject to change without notice.