AARP Financial, a new subsidiary of AARP Services, Inc., is simplifying the investment process with the introduction of the AARP Funds. Consisting of three asset allocation mutual funds, each fund is designed to serve as a complete mid- to long-term investment portfolio for the 50-plus investor. By making the investment process easier, AARP Financial hopes to encourage people to increase the amounts they invest for their retirement years.
"AARP Financial and the AARP Funds were created to assist AARP members and Baby Boomers prepare financially for retirement," said Larry Renfro, President of AARP Financial. "It is no secret that individuals are not saving enough for retirement. We believe investors are overwhelmed by the numerous investment choices available in the marketplace and the difficulty of assembling and managing a retirement portfolio on their own. Our goal at AARP Financial is to simplify the investment process, by offering products and services aimed to help people achieve a financially secure retirement."
AARP Financial believes that while saving money is often difficult, investing shouldn't be. The AARP Funds are based on a simple, no-nonsense approach to investing that incorporates five basic principles of sound investing: low fees, indexing, diversification, rebalancing and simple choices.
"The AARP Funds allow investors easy access to low-cost mutual funds," added Nancy M. Smith, Vice President, Investment Services for AARP Financial. "The AARP Funds provide diversification and professional rebalancing. Many investors find it difficult to construct a diversified portfolio and rebalance it on a regular basis, which is why those important features are already built into the AARP Funds. Our approach takes much of the work out of investing for individuals, and reduces the chance that investors will stumble when it comes to diversification and rebalancing."
The three AARP Funds include: AARP Conservative Fund, AARP Moderate Fund, and AARP Aggressive Fund. Each of the Funds invests in a diversified mix of stocks, bonds and other securities through a "fund of funds" structure. Each fund allocates its assets across three underlying portfolios. The portfolios seek to match the performance of market indexes for U.S. stocks (MSCI U.S. Investable Market 2500 Index), international stocks (MSCI EAFE Index); and U.S. bonds (Lehman Brothers Aggregate Bond Index).
AARP Financial is the investment adviser to AARP Funds and AARP Portfolios, and oversees the sub-adviser to AARP Funds and AARP Portfolios, SSgA Funds Management, Inc., one of the State Street Global Advisors' companies. The Funds are distributed by ALPS Distributors, Inc.
About AARP Financial
AARP Financial, founded in 2005, is a wholly owned subsidiary of AARP Services, Inc. Based in Tewksbury, Massachusetts, AARP Financial is dedicated to helping people age 50 and over build a more secure financial future by offering products and services designed to meet their retirement needs. AARP Financial offers a carefully chosen array of investment products and guidance, including the AARP Funds, a group of three index-based mutual funds; auto and home insurance through The Hartford; credit cards through Chase; life insurance through New York Life, and mobile home and motorcycle insurance through Foremost.
While AARP has licensed the use of its name to AARP Funds and endorses the services provided by AARP Financial Incorporated, AARP cannot recommend that any specific individual should purchase shares of a particular fund. AARP is not a registered investment adviser or broker-dealer.
An investor should consider the investment objectives, risks, charges and expenses of AARP Funds carefully before investing. To get a prospectus containing this and other information, please visit www.aarpfunds.com or call (888) 778-6184. Read the prospectus carefully before you invest.
AARP Funds are advised by AARP Financial Incorporated, a registered investment adviser, and distributed by ALPS Distributors, Inc., a registered broker/dealer.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with AARP Financial and any related funds.
Diversification cannot assure a profit or protect against a loss. The sale of an investment for the purpose of rebalancing may be subject to taxes.
An investment in the Funds is subject to risks, including the possible loss of principle.