There’s a smarter target-date fund.
Morningstar® Lifetime Index FundsSM
Smarter Target-Date Funds
Target-date funds grew so popular because of their convenience and ability to put retirement investing on “auto-pilot.” The problem is, if an investor’s needs change, their retirement investments may not be able to change with them.
The Morningstar Lifetime Index Funds are designed to alleviate this problem through an expert methodology built by Morningstar Investment Management LLC. The funds use a set of 21 asset classes to help create diversified portfolios that address the unique risks investors face at different points in their retirement journeys.
They can follow three equity glide paths: conservative, moderate, and growth. Each takes a slightly different approach to asset allocation allowing you to select the best path that aligns with the risk profile and investment needs of your employees, providing a greater level of customization than many other target-date options on the market.
Backed by Trusted Leaders in the Target-Date Space
The Morningstar Lifetime Index Funds were designed using decades of research from Morningstar, Inc., the parent company of Morningstar Investment Management. Morningstar Investment Management has leveraged its investment management and asset allocation expertise to provide a full suite of target-date offerings, marking them as robust players in the target-date space.
These offerings include custom target-date models and personal target-date fund services, each of which provides greater customization than a traditional target-date offering.
The Funds are offered and managed by Benefit Trust Company and created in collaboration with Morningstar Investment Management, who provides recommendations to Benefit Trust as a sub-adviser.
Complimentary Support Options
Morningstar Investment Management’s advice team is available for support. For instance, we offer a complimentary workforce analysis to help you select the glide path series that aligns best with the needs of your employees. Additionally, we are here for onboarding support with documentation and walkthroughs, and we can have representatives available to help answer any questions you may have about the Morningstar Lifetime Index Funds.
Diversification at a Low Cost1
Target-date funds are popular and convenient, but they often come with a price. The Morningstar Lifetime Index Funds are competitively priced at eight basis points—compared to an industry average of 62 basis points.3 This way, you can consider providing your workforce with investment options without having to break the bank.
One Step Closer to a Smarter Target-Date Fund Option
Get in touch to explore whether the Morningstar Lifetime Index Funds can help your workforce reach their retirement goals.
About Morningstar Investment Management LLC's Retirement Solutions Group
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. Our products and services—which range from a managed accounts service to target-date products to custom models and fiduciary services—are not only designed to help people save for the retirement they want, but to help them make their money last once they get there.
1Morningstar 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.
2The Morningstar Lifetime Index Funds are organized as a series of collective investment trusts.
3According 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. 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 fund is a Collective Investment Trust (CIT) created by Benefit Trust Company and is administered by Benefit Trust Company, as trustee. Its shares are not deposits of Benefit Trust Company and are not insured by the FDIC or any other agency. The CIT is not a mutual fund. The CIT is a security which has not been registered under the Securities Act of 1933 and is exempt from investment company registration under the Investment Company Act of 1940, as amended. The performance quoted here does not guarantee future results. As market conditions fluctuate, the investment return and principal value of any investment will change. Diversification may not protect against market risk. There are risks involved with investing, including possible loss of principal. Complete information regarding the indices used and allocation to each is available upon request. This material should not be viewed as advice or recommendations with respect to asset allocation or any particular investment. Before investing in any investment portfolio, the client and financial professional should carefully consider the client's investment objective, time horizon, risk tolerance, and fees.
Benefit Trust Company (BTC) is a non-depositary trust company with operations in Overland Park, Kansas. As an independent fiduciary and fund sponsor, BTC maintains the CIT and oversees all compliance related functions for the CIT including trade monitoring, pricing, performance, annual reporting and investor eligibility.
BTC has retained Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., to act as its investment sub-adviser for the Funds. Morningstar Investment Management acts as a non-discretionary sub-adviser for the CIT by monitoring performance and tracking error of the CIT, and providing recommendations on the ongoing management of the CIT. Morningstar Investment Management is not acting in the capacity of adviser to individual investors.
The Morningstar Lifetime Allocation Indexes (the “Indexes”) are service marks of Morningstar, Inc. The CIT is not sponsored, endorsed, sold or promoted by Morningstar, Inc. and Morningstar, Inc. makes no representation regarding the advisability of investing in the CIT. The Morningstar name and logo are registered trademarks of Morningstar, Inc. Morningstar, Inc. and its subsidiaries are not affiliated with Benefit Trust or its affiliates. There is no guarantee that a CIT will achieve any objectives, performance expectations, risk or return targets set forth in this document, the CIT’s disclosure document or elsewhere. Before selecting the CIT as an investment option, plan sponsors should carefully consider the CIT’s investment objectives, risk factors, and charges and expenses. Plan sponsors should carefully read the Group Trust's Declaration of Trust and the CIT’s disclosure documents before selecting the CIT. Risks associated with an investment in a CIT, 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 CIT will fluctuate up to and after its target dates. There is no guarantee the CIT will provide adequate income at or through retirement. There is no guarantee that the CIT will 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.
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 offering and sale of the participation units in a CIT in certain jurisdictions may be restricted by law. The CIT may, in addition to other investments, invest in futures contracts, securities futures contracts or products, derivatives, and other similar investments. The views and opinions of Morningstar, Inc. or its affiliates are not necessarily those of Benefit Trust or its affiliates. All information and opinions are subject to change without notice.