Missouri Target Date Funds

Save Money and Retire Tomorrow

simple to invest

Each Missouri Target Date Fund has a date in its name. We call this the "target date," the approximate year when you expect to retire and begin withdrawing from your account.

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a mix that changes with your needs

As you move closer to, and eventually into, retirement, your fund automatically adjusts to a more conservative mix of investments.

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built-in diversification

With a Missouri Target Date Fund, you're spreading your dollars across the many different investment options that make up the fund.

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professional management

The target date portfolios are custom designed and managed for the MO Deferred Comp Plan by AllianceBernstein L.P., an investment management firm that designs, implements and monitors the asset allocation for the Missouri Target Date Funds. The investment portfolios underlying the Missouri Target Date Funds are managed by several investment providers and were selected by the State of Missouri Deferred Compensation Plan.

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What Are Target Date Funds?

A target date fund typically has a date in its name; this is called the fund’s target date. The target date is the approximate year when you expect to retire (assuming a retirement age of 65) and begin withdrawing from your account. A target date fund adjusts its investments over time. If you’re in your early working years, the emphasis of the fund is on growth to build savings. As you move toward retirement, the investments of the fund gradually evolve, becoming more conservative to help protect against market fluctuations—and it all happens automatically.

target date funds provide an investment strategy that lasts a lifetime

1

Choose the date you expect to retire.

Person thinking about the future

2

The funds will invest in a mix of investments, including bonds, stocks and diversifiers, and automatically adjust them over time.

Recycling a mix of investments

3

You have reached retirement. You may now start to withdraw cash to live on while your remaining savings continue to be invested throughout your retirement.

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A Simple Way to Invest for Retirement

Missouri Target Date Funds make it simple for you to invest for retirement. Each fund has a date in its name; we call this the fund's "target date." The target date is the approximate year when you expect to retire and begin withdrawing from your account.

it's easy to pick your retirement date

First, take the year you were born. Then add the age you expect to retire, and you'll have an estimate of your target retirement date. Just select the Missouri Target Date Fund closest to that date, and invest for your future. If you change your expected retirement date, you can always transfer your money to a Missouri Target Date Fund that's a closer match to your revised retirement date.

the year you were born

+

age you think you'll retire

=

your estimated retirement date

Missouri Target Date Fund

Investments in Missouri Target Date Funds are not guaranteed against loss of principal: at any time, your account value can be more or less than the original amount you contributed, including at the time of the fund's target date. Also, investing in a Missouri Target Date Fund does not guarantee sufficient income in retirement.
*Missouri Retirement Allocation Fund (formerly the Missouri 1995 and 2000 Target Date Funds). This Fund is intended for retired investors whose original Missouri Target Date Fund has reached its final asset allocation of 20% stocks, 15% diversifiers and 65% bonds, 15 years after its target date.
Quarterly target allocations in effect as of the first quarter of 2018
 

Missouri Target Date Fund

Investments in Missouri Target Date Funds are not guaranteed against loss of principal: at any time, your account value can be more or less than the original amount you contributed, including at the time of the fund's target date. Also, investing in a Missouri Target Date Fund does not guarantee sufficient income in retirement.

*Missouri Retirement Allocation Fund (formerly the Missouri 1995 and 2000 Target Date Funds). This Fund is intended for retired investors whose original Missouri Target Date Fund has reached its final asset allocation of 20% stocks, 15% diversifiers and 65% bonds, 15 years after its target date.

Quarterly target allocations in effect as of the first quarter of 2018

A Mix That Changes over Time

Investments Graph
Investments Graph
Investments Graph Legend
While diversification and shifting to a more conservative investment mix over time may help to manage risk, it does not guarantee earnings growth. There is the potential to lose money in any investment program.

Asset Allocations
over Time by Age

Young Saver Midlife Saver New Retiree Senior Retiree
20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
US Large-Cap Stocks 32.50% 32.50% 32.50% 32.50% 32.50% 30.00% 27.50% 24.50% 22.25% 20.00% 16.50% 12.50% 8.50% 8.50% 8.50%
US Small/Mid-Cap Stocks 10.00 10.00 10.00 10.00 10.00 9.00 8.00 7.50 6.25 5.00 3.50 2.50 1.50 1.50 1.50
Emerging-Market Stocks 8.50 8.50 8.50 8.50 8.50 8.00 7.00 6.50 5.75 5.00 4.00 3.00 2.00 2.00 2.00
International Stocks 34.00 34.00 34.00 34.00 34.00 31.00 28.50 25.50 22.75 20.00 16.00 12.00 8.00 8.00 8.00
REITs 5.00 5.00 5.00 5.00 5.00 7.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
Commodities 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
High-Yield Bonds 0.00 0.00 0.00 0.00 0.00 5.00 7.00 7.00 7.00 7.00 5.00 2.50 0.00 0.00 0.00
Core Intermediate Bonds 5.00 5.00 5.00 5.00 5.00 5.00 7.00 7.00 7.00 9.00 11.00 14.50 17.50 17.50 17.50
Inflation-Protected Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.00 14.00 19.00 20.00 20.00 20.00 20.00 20.00
Short-Duration Bonds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.00 18.00 27.50 27.50 27.50

Please swipe to view the complete data.

† This chart does not represent any particular Target Date Fund. It is meant to show how the investment mix of any of the Missouri Target Date Funds changes over a lifetime.

Built-In Diversification

You've heard about the importance of diversification when saving for retirement. Each Missouri Target Date Fund includes a diversified blend of investments that spreads your money across the many different investment options that make up the fund, including stock, bond and diversifier funds. By spreading your money across these different investment types, you get access to a broad range of investments that help manage the portfolio's overall risk. While diversification is important, it doesn't ensure that your investments will grow or protect you against a market downturn.

Missouri Target Date Funds change with you over time. You don't have to constantly monitor your account and make changes to your investment mix as you get closer to retirement because each fund gradually shifts to a more conservative approach—automatically. The funds start out focused on long-term growth, invested primarily in stocks. As the retirement date gets closer, and continuing for 15 years beyond the date, they gradually adjust their investment mix. By the time you move into retirement, your fund will be more focused on protecting principal and generating income.

Investments in Missouri Target Date Funds are not guaranteed against loss of principal. At any time, your account value can be more or less than the original amount you contributed, including at the time of the fund's target date. Also, investing in a Missouri Target Date Fund does not guarantee sufficient income in retirement.
Diversification Infographic

Professional Management

The target date portfolios are custom designed and managed for the MO Deferred Comp Plan by AllianceBernstein L.P., an investment management firm that designs, implements and monitors the asset allocation for the Missouri Target Date Funds. The investment portfolios underlying the Missouri Target Date Funds are managed by several investment providers and were selected by the State of Missouri Deferred Compensation Plan.
UNDERLYING INVESTMENT COMPONENT Investment Manager Management Style
US Large-Cap Stocks State Street Global Advisors (SSGA) Passive
US Small/Mid-Cap Stocks State Street Global Advisors (SSGA) Passive
International Stocks State Street Global Advisors (SSGA) Passive
Emerging-Market Stocks State Street Global Advisors (SSGA) Passive
REITs State Street Global Advisors (SSGA) Passive
Commodities State Street Global Advisors (SSGA) Passive
Core Intermediate Bonds State Street Global Advisors (SSGA) Passive
Inflation-Protected Securities State Street Global Advisors (SSGA) Passive
High-Yield Bonds Vanguard Active
Short-Duration Bonds BlackRock Institutional Trust
Company (BTC)
Passive

Please swipe to view the complete data

Start Now

Not yet saving in the plan icon

If you're not yet saving
in MO Deferred Comp

If you think a Missouri Target Date Fund
is right for you, simply:

  1. Visit www.modeferredcomp.org to enroll in the MO Deferred Comp Plan.
  2. Pick your retirement date and select the Missouri Target Date Fund closest to that date.
  3. Direct your investment elections to your Missouri Target Date Fund.
  4. Relax, knowing your investments will automatically evolve over time.
Already saving in the plan icon

If you're already saving
in MO Deferred Comp

To take advantage of a Missouri Target Date Fund,
simply:

  1. Pick your retirement date and select the Missouri Target Date Fund closest to that date.
  2. Direct your investment elections to your Missouri Target Date Fund.
  3. Transfer your current balances into your Missouri Target Date Fund.
  4. Relax, knowing your investments will automatically evolve over time.
Before investing for retirement, there are many factors to consider, including your time horizon, retirement needs, goals and assets (income and investments outside of those in your employer-sponsored retirement plan).

Missouri Target Date Funds' underlying investments include international companies, which involve such risks as currency fluctuations, economic instability and political developments. The strategies also invest some of their assets in small and midsize companies. Such investments increase the risk of greater price fluctuations. In addition, the strategies have a portion of their assets in bonds. Investments in bonds are subject to interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds have more exposure to interest-rate risk than short-term bonds. Lower-rated bonds may offer higher yields in return for more risk. As with all investments, there is a risk of not meeting your retirement income needs. Because the Missouri Target Date Funds are managed to specific retirement dates, you may be taking on greater risk if your actual year of retirement differs dramatically from what you estimated.

Each Target Date Fund is a daily-priced separate account that invests in a set of underlying investment options. Separate accounts are not registered mutual funds, and interests in the Missouri Target Date Funds are not deposits of AllianceBernstein Trust Company, LLC or AllianceBernstein Investments and are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other agency. The Missouri Target Date Funds have not been registered under the Securities Act of 1933 and are exempted from investment company registration under the Investment Company Act of 1940. Therefore, participating plans and their participants will not be entitled to the protections under these Acts. Management of the Missouri Target Date Funds, however, is generally subject to the fiduciary duty and prohibited transaction rules under the Employee Retirement Income Security Act of 1974, as amended (ERISA). AllianceBernstein L.P. is the asset allocation provider and manager. The investment portfolios underlying the Missouri Target Date Funds are managed by a number of investment providers selected by the State of Missouri Deferred Compensation Plan.

Past performance does not guarantee future results. You should consider the investment objectives, risks, charges and expenses of the Missouri Target Date Funds carefully before investing.

© 2018 AllianceBernstein L.P.