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Strategy: Pursued by investing in underlying funds
Emphasizes stock and bond investments equally, with an indexing approach being used to choose individual securities. Seeks to maintain a specific asset allocation.
Net Asset Value (NAV) and
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Daily NAV |
Change |
% Change |
YTD |
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|---|---|---|---|---|
| $10.05 | -0.08 | -0.78% | 18.07% | |
| As of date: November 19, 2009 | ||||
The AARP Moderate Fund was ranked 65th for the three-year period ending October 31, 2009 out of 950 funds in Morningstar's Moderate Allocation category.
Learn more >
Past performance cannot guarantee future results. The Overall Morningstar Rating™ is derived from a weighted average of the funds' performance figures for three year Morningstar Rating™ metrics. Ratings are based on risk adjusted performance. During the ranking period, AARP Financial Inc. waived fees and reimbursed expenses for the Fund.
Total Returns |
Average Annual Total Returns |
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|---|---|---|---|---|---|---|
| Pre-tax | Post-tax | Pre-tax | Post-tax | |||
| Last 3 months | 3.96% | 3.96% | 1-year | 5.22% | 4.05% | |
| Year to date | 14.19% | 13.60% | 3-year | 1.67% | 0.67% | |
| 5-year | Not yet available | |||||
| As of month end: October 31, 2009 | 10-year | Not yet available | ||||
| Since inception (12/30/05) | 2.78% | 1.90% | ||||
| As of quarter end: September 30, 2009 | ||||||
Includes reinvested dividends and capital gains.
Two important things to remember when judging any mutual fund: 1) individual fund performance should always be compared to market performance as a whole; and 2) past performance is not an indicator of future success.
What does this mean? Simply that while a fund boasting a 10% gain may sound impressive, if other, comparable mutual funds grew 15%, the fund isn't as good as its peer group. Likewise, if the fund posted a 10% gain at a time when others shrank 10%, it could be viewed as outperforming similar funds. So context matters. And secondly, just because a fund has done well in the past doesn't mean that it will continue to perform well in the future.
A benefit of AARP Funds is that they are index-based, instead of actively managed mutual funds. Index-based funds, historically, have outperformed managed mutual funds and typically they cost less in management fees.*
Pre-tax performance numbers are for tax-deferred (IRA) accounts, while post-tax performance numbers are for taxable (non-IRA) accounts.
Total annual fund operating fees and expenses are 1.18%.
Net annual fund operating fees and expenses (after waivers and/or reimbursements) are 0.50%.
Learn more about the fund's fees and expenses.
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted. Please read the prospectus carefully to learn about the risks of investing in the AARP Funds. Call 1-866-218-6142 for current performance.
When investing in bonds, you are subject, but not limited to, the same interest rate, inflation, and credit risk associated with the underlying bonds owned by the Fund. The Income Fund's prospectus allows for investment in non-investment grade securities.
All investments involve some risk, including the AARP Funds. Each of the three funds, Conservative, Moderate, and Aggressive, invest in a mix of domestic and international stocks and U.S. bonds.
*Standard & Poor's Indices Versus Active Funds Scorecard (SPIVA), Mid-Year 2008
Total annual fund operating fees and expenses for the AARP Funds are 1.59% for the Aggressive Fund, 1.18% for the Moderate Fund, 1.84% for the Conservative Fund, 4.88% for the Income Fund and 0.83% for the Money Market Fund. Net annual fund operating fees and expenses (after waivers and/or reimbursements) are 0.30% for the AARP Money Market Fund and 0.50% for the other AARP Funds. The Money Market Fund's yield is based on a 30 basis point contractual expense cap that is currently in effect through November 1, 2009.
AARP Financial has agreed contractually to waive fees and/or reimburse expenses to keep the Net Annual Fund Operating Expenses of the Aggressive, Moderate, Conservative, and Income Funds, including Acquired Fund Fees and Expenses at 0.50% of average daily net assets through November 1, 2009. AARP Financial has agreed contractually to waive fees and/or reimburse expenses to keep the Net Annual Fund Operating Expenses of the Money Market Fund (including the expenses of the Underlying Money Market Fund) at 0.30% of average daily net assets through November 1, 2009.
**For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The top 10% of the funds in an investment category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.
2009 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
The fund invests in a diversified mix of stocks, bonds, and other securities through three underlying portfolios which seek to match the performance of market indexes for U.S. stocks, international stocks and U.S. bonds. Professional managers rebalance each fund regularly to keep it close to its target mix.
Learn more about the fund's portfolio construction
Indexes are not available for investment and do not reflect fees, brokerage commissions or other expenses of investing.
Please note that if an investment is sold for rebalancing purposes, it may be subject to taxes. Rebalancing in the AARP Funds means changing the mix of the underlying portfolios to return to a fund's target asset mix. This will usually mean that securities will be bought and sold in the underlying portfolios.
Target Allocation |
Actual Allocation |
Top 10 Holdings of underlying Portfolio |
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45% U.S. Bonds |
50% 
AARP Portfolios Annual Report (PDF 552k)
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40% U.S. Stocks |
39.6%
AARP Portfolios Annual Report (PDF 552k)
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15% International Stocks |
10.5%
AARP Portfolios Annual Report (PDF 552k)
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Holdings are subject to change. |
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The dividends paid by the fund's underlying investments are passed on to the investor. Many investors have the distributions reinvested in their account to purchase additional shares, but it is your option to have them paid to you directly.
The same is true for the portfolio's capital gains. These are accrued when underlying investments are sold for rebalancing^ purposes or other considerations. Check the chart below for the most recent fund distribution data.
These figures are for informational purposes only and are not intended to be used as tax advice. Please consult with a tax professional about the tax consequences of this information.
Distributed two times a year
Ex. Dividend Date |
Income Distribution |
Long Term |
Total Distributions |
Reinvest Price |
|---|---|---|---|---|
| 6/29/2009 | $0.1340 | $0.0000 | $0.1340 | $8.91 |
| 12/30/2008 | $0.1491 | $0.0655 | $0.2146 | $8.59 |
| 6/27/2008 | $0.1595 | $0.0000 | $0.1595 | $10.32 |
^ The sale of an investment for the purpose of rebalancing may be subject to taxes.
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted. Please read the prospectus carefully to learn about the risks of investing in the AARP Funds. Call 1-866-218-6142 for current performance.
When investing in bonds, you are subject, but not limited to, the same interest rate, inflation, and credit risk associated with the underlying bonds owned by the Fund. The Income Fund's prospectus allows for investment in non-investment grade securities.
All investments involve some risk, including the AARP Funds. Each of the three funds, Conservative, Moderate, and Aggressive, invest in a mix of domestic and international stocks and U.S. bonds.
The date on which a shareholder must officially own shares to be entitled to a dividend payment.
The date on which the share price of the fund will be reduced by the amount of the dividend.
The date on which a declared dividend is scheduled to be paid.
The dollar amount per share paid to shareholders of record.
If dividends are reinvested, this is the purchase price of the Fund's shares.
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Who manages the Funds?
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The Prospectus for the AARP Funds provides complete information about the funds' investment objectives, portfolio managers, historical performance, risk, fees and expenses.
The Statement of Additional Information (or SAI) provides more information about the portfolio managers' compensation, other accounts managed by the portfolio managers, and the portfolio managers' ownership of securities of the Funds.
Balance of growth and income
If you decide the AARP Moderate Fund is right for you, buying shares in it is simple. Open an account with as little as $100, or $25 per period with an automatic investment plan.*
Or, if you prefer, call and speak to one of our Financial Advisors at
1-866-218-6142.
To find out more information about which account type or fund may be right for you, call
1-866-218-6142.
Representatives are available to talk with you 8:00 am to 6:00 pm ET, every business day.
Please read the prospectus carefully before buying a fund.
The mutual funds described in this site are sold only to U.S. residents.
An Investment in the Funds involves risk, including possible loss of principal. Please consider the investment objectives, risks, charges and expenses of the AARP Funds carefully before investing. The prospectus contains this and other important information about the Funds. To get a prospectus containing this and other information, click here (PDF) or call 1-866-218-6142. Read it carefully before you invest.
While AARP has licensed the use of its name to AARP Funds and endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is an investment adviser and a subsidiary of AARP.
The Financial Advisors are registered representatives of ALPS Distributors, Inc., a registered broker-dealer, and as investment adviser representatives of AARP Financial Inc., an investment adviser. AARP Financial Inc. offers investment advisory services and is not affiliated with ALPS Distributors, Inc.
AARP Funds are distributed by ALPS Distributors, Inc.
