The company said in a news release that each fund’s investment mix will vary with the number of years remaining to the determined year. As that year approaches, the allocation to equities will decrease and the allocation to fixed income and money markets will increase, the company said. The objective of the funds is the highest total return consistent with an investment mix appropriate for the number of years remaining to the targeted year, American Century said. Each dated My Retirement Portfolio’s asset mix will be reallocated annually.
The funds invest in a combination of American Century mutual funds representing various asset classes and sectors. The fifteen underlying funds are selected for their risk-reward profile, return correlations and other factors, according to the announcement.
The American Century My Retirement Portfolio use a funds of funds structure and total expenses are based on a pro-rata share of the expenses of the underlying funds. The company said the expense rations for the funds will be Income (0.75%), 2015 (0.84%), 2025 (0.89%), 2035 (0.95%), and 2045 (0.97%). The fund minimum is $2,500.
For more information about the My Retirement Portfolios, call American Century at 1-800-345-2021.