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The AARP Aggressive Fund, AARP Moderate Fund, and AARP Conservative Fund invest in a diversified mix of stocks, bonds, and other securities through a "funds-of-funds" structure. In this structure, each Fund invests its assets in a mix of three Underlying Funds, the AARP Portfolios. The Underlying Funds seek to match the performance of market indexes for U.S. stocks, international stocks and U.S. bonds, before deducting expenses.
The AARP Income Fund normally invests at least 75% of its assets in the U.S. Bond Market Portfolio (Underlying Bond Fund). To a lesser extent, the Fund may invest in other types of income-producing securities, including individual securities.
The underlying investments of the AARP Income Fund are primarily in taxable bonds; your investment in the fund is subject, but not limited to the same interest rate, inflation and credit risk associated with the underlying bonds.
The AARP Money Market Fund does not buy money market instruments directly. Rather, it invests all of its assets in another fund that buys them, using a "master-feeder" structure. The Fund is a feeder fund, buying shares of a master fund, the State Street Money Market Portfolio.
An investment in the AARP Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
| AARP Underlying Funds | Target Index |
|---|---|
| Stock Fund | MSCI U.S. Investable Market 2500 Index* |
| International Fund | MSCI All Country World Index ex U.S. |
| Bond Fund | Barclays U.S. Capital Aggregate Bond Index |
| State Street Money Market Portfolio | N/A |
The Underlying Stock Fund seeks to match the return of the MSCI U.S. Investable Market 2500 Index* as closely as possible, before deduction of expenses of the Underlying Fund. The index includes about 2,500 securities listed on the New York and American Stock Exchanges and the Nasdaq over-the-counter market. The stocks represent companies of all types and sizes. The index is the aggregation of the MSCI US Large Cap 300, Mid Cap 450 and Small Cap 1750 Indexes.
See the holdings of the Underlying Stock Fund:
Effective January 1, 2009, the Underlying International Fund changed its index to the MSCI All Country World Index, excluding the U.S. Index (MSCI ACWI® ex US Index). This index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of November 2008, the MSCI ACWI® ex US Index consisted of 46 country indexes comprising 22 developed and 24 emerging market country indexes. Prior to this date, the index for this fund was the MSCI Europe, Australasia and the Far East Index (MSCI EAFE® Index). This index includes about 1,000 securities listed on the stock exchanges of 21 developed countries, excluding the United States and Canada.
See the holdings of the Underlying International Fund:
The Underlying Bond Fund seeks to produce the return of the Barclays U.S. Capital Aggregate Bond Index as closely as possible, before deduction of expenses of the Underlying Fund. The index includes a large variety of U.S. and foreign bonds that are investment grade and taxable, covering three major types of bonds: government and corporate bonds, mortgage-backed securities, and asset-backed securities. Mortgage-backed securities include securitized mortgage pools of the Government National Mortgage Association, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation. Asset-backed securities include securities that are backed by credit card, auto, and home equity loans. The index may also include certain U.S. dollar denominated foreign corporate and government bonds. This Underlying Fund will only invest in fixed income securities that are considered "investment grade" — i.e., fixed income securities rated Baa or higher by Moody's Investors Services, Inc. or BBB or higher by Standard & Poor's Rating Group or are deemed by SSgA FM to be of comparable quality.
See the holdings of the Underlying Bond Fund:
Normally invests more than 25% of its total assets in bank obligations. The Portfolio may invest in the following types of investments:
See the Portfolio of Investments for the State Street Money Market Portfolio:
An investor bears a proportionate level of the Underlying Funds' risks in addition to the risks of the Funds, but the amount of exposure each Fund has to the risks of each Underlying Fund will vary depending on the amount each Fund has invested in each Underlying Fund.
Holdings are subject to change.
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.
