flexPATH™ PARTICIPANT EDUCATION
june2015
What is a TDF?
A simple investment solution in which a
portfolio’s asset allocation becomes more conservative
(less exposure to equity) as the retirement target date
approaches.
What are the benefits?
– Professional management
– Diversification*
– Low maintenance
What are the challenges?
– Does not account for individual
investor risk tolerance or savings
needs.
*Diversification does not protect against loss of principal.
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What is a Risk-Based Fund?
A fund featuring an asset mix determined by the level of risk
and return that is appropriate for an individual investor.
What are the benefits?
– Professional management
– Diversification*
– Participant choice
What are the challenges?
– Does not automatically adjust risk
as investor approaches retirement.
*Diversification does not protect against loss of principal.
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How Useful are Averages?
Manute Bol
7’7”
200 lbs.
Shoe size: 23
Spud Webb
5’7”
133 lbs.
Shoe size: 8
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Are you part of a homogenous or
diverse workforce?
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Homogeneous
Diverse
Single Glidepath
Multiple Glidepaths
flexPATH Strategies™ Glidepaths
Conservative
Aggressive
Moderate
Equity Exposure %
100
80
60
50%
40%
30%
40
20
0
50
45
40
35
30
25
20
For illustrative purposes only. Actual allocations may vary.
5
15
10
5
0
-5
Retirement
-10
-15
-20
-25
-30
flexPATH™
Conservative
• Risk is limited compared to
Moderate and Aggressive
because the savings, and
savings rate toward retirement is
greater.
• Goal is to achieve a more
consistent income throughout
retirement.
• Conservative PATH
Characteristics
• Retirement savings deferral
rate greater than 12 percent.
• High account balance.
• Emphasis on stability in
retirement.
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flexPATH™
Moderate
• Risk is more moderate than
Conservative and Aggressive
because current savings, and
savings rate, will achieve most
retirement goals.
• Additional risk may be necessary
to fully achieve all retirement
goals.
• Moderate PATH Characteristics
• Retirement savings deferral
rate between 6-12 percent.
• Average account balance.
• Balance of stability and longterm return in retirement.
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flexPATH™
Aggressive
• Risk is higher compared to
Conservative and Moderate
because current savings, and
savings rate, may not be enough to
achieve most retirement goals.
• Goal is to generate greater
expected return through riskier
investments in order to supply
adequate income at and throughout
retirement.
• Aggressive PATH Characteristics
• Retirement savings deferral rate
less than 6 percent.
• Low account balance.
• Emphasis on long-term return in
retirement.
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Choose Your Target Date
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If you expect to retire between
Then you might consider
2050 or later
flexPATH 2055
2040-2049
flexPATH 2045
2030-2039
flexPATH 2035
2020-2029
flexPATH 2025
2019 or earlier
flexPATH Retirement
flexPATH Index+ Underlying Funds
Asset Class
U.S. Large Cap Equity
U.S. Small Cap Equity
International Equity
U.S. Fixed Income
Commodities
REIT
TIPS
Fund
BlackRock Russell 1000 Index Fund F
American Beacon Bridgeway Lg Cp Val Inst
T. Rowe Price Instl Large Cap Growth
JPMorgan Disciplined Equity
Principal SmallCap Value II Instl
DFA US Micro Cap I
BlackRock Russell 2000 Index Fund F
Pyrford International Equity Composite (BMO)
Oakmark International I
Artisan International Institutional
Goldman Sachs Intl Sm Cap Insights Inst
Fidelity International Small Cap Opp
BlackRock MSCI ACWI ex-U.S. IMI Index Fund F
Neuberger Berman Strategic Income R6
Prudential Total Return Bond Q
Janus Flexible Bond N
BlackRock U.S. Debt Index Fund F
Deutsche Enhanced Commodity Strat Instl
Commodity Index Daily Fund F
Principal Global Real Estate Sec Instl
Developed Real Estate Index Fund E
BlackRock U.S. TIPS Index Fund F
As of 3/31/2015
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flexPATH Index Underlying Funds
Asset Class
Fund
U.S. Large Cap Equity
BlackRock Index Equity Fund F
U.S. Small Cap Equity
Extended Equity Market Fund F
International Equity
BlackRock MSCI ACWI ex-U.S. IMI Index
Fund F
U.S. Fixed Income
BlackRock U.S. Debt Index Fund F
Commodities
Commodity Index Daily Fund F
REIT
Developed Real Estate Index Fund E
TIPS
BlackRock U.S. TIPS Index Fund F
As of 3/31/2015
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flexpathstrategies.com
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Disclosures
This presentation is furnished on a confidential basis exclusively to the recipient of this presentation (the “Recipient”) and is not for redistribution or public use. The data
and information presented are for informational purposes only. The data and information contained herein should be treated in a confidential manner and may not be
transmitted, reproduced or used in whole or in part for any other purpose, nor may it be disclosed without the prior written consent of NFP Retirement. By accepting this
material, the Recipient agrees not to distribute or provide this information to any other person.
This material is qualified in its entirety by the flexPATH Target Date Funds (“the Funds”) offering memoranda and any supplements thereto, which may be obtained from
NFP Retirement by calling 800.974.0188 Please refer to the offering documentation and Fund documents for further important information regarding the Funds,
including the risks and costs associated with making investments in the Funds.
No representation regarding the suitability of these instruments and strategies for a particular investor or plan participant is made. These strategies may be offered by
NFP Retirement through other vehicles. Separately managed account and bank collective fund guidelines and strategies may differ and may involve different asset
classes and different degrees and types of risks. Eligible plans should consider whether an investment in one or more of the Funds satisfies the diversification
requirements and prudence requirements of ERISA and/or other applicable law and regulations thereunder applied to the plans’ own circumstances and should inform
themselves as to any other applicable legal requirements, and taxation and exchange control regulations in the countries of their sponsors’ or participants’ citizenship,
residence or domicile which might be relevant.
Predictions, opinions, and other information contained in this material are subject to change continually and without notice of any kind and may no longer be true after
the date indicated. Any forward-looking statements speak only as of the date they are made, and NFP Retirement assumes no duty to and does not undertake to update
forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Actual results may
differ materially from those projected in these materials due to factors including, without limitation, economic and market conditions, political events and investor
sentiments, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, and competitive conditions.
NO SECURITIES REGISTRATION: THE UNITS OFFERED BY THE FUNDS (“UNITS”) HAVE NOT BEEN REGISTERED WITH, AND THE MERITS OF THE
OFFERING OF UNITS HAVE NOT BEEN PASSED UPON BY, THE SECURITIES AND EXCHANGE COMMISSION OR ANY OTHER FEDERAL OR STATE
REGULATORY AGENCY IN RELIANCE ON EXEMPTIONS FROM REGISTRATION UNDER FEDERAL AND STATE SECURITIES LAWS.
The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any
security or to participate in any trading strategy. This document was produced by and the opinions expressed are those of NFP Retirement as of the date of writing and
are subject to change. This research is based on NFP Retirement proprietary research and analysis of global markets and investing. The information and/or analysis
contained in this material have been compiled or arrived at from sources believed to be reliable, however NFP Retirement does not make any representation as their
accuracy or completeness and does not accept liability for any loss arising from the use hereof. Past performance is no guarantee of future results. The use of tools
cannot guarantee performance. Any decision to invest according to investment advice provided by NFP Retirement should be made after conducting such investigations
as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax advisors in order to make an independent determination of the
suitability and consequences of an investment.
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Disclosures
NFP Retirement and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended
or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with NFP Retirement of any of the
matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
Market indexes are included in this report only as context reflecting general market results during the period. NFP Retirement may provide research on funds that are
not represented by such market indexes. Accordingly, no representations are made that the performance or volatility of any fund where NFP Retirement provides
research will track or reflect any particular index. Market index performance calculations are gross of management and performance incentive fees.
Scorecard System evaluates funds based proprietary research. Scorecard System results may vary with each use and over time. The use of the Scorecard System
does not guarantee results. It is an investment analysis tool intended to aid in the investment decision making process. Any decision to invest in a fund should be made
in consultation with qualified tax, legal or investment professional advice.
The performance data used in this material represents past performance. Past performance does not guarantee future results.
A mutual fund's investment return and principal value will fluctuate. Upon redemption, shares may be worth more or less than their original cost.
This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is
not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
Neither NFP nor its subsidiaries or affiliates offer tax or legal advice.
Mutual funds are sold by prospectus only. Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of
a mutual fund. The fund prospectus provides this and other important information. Please contact your representative or the Company to obtain a
prospectus. Please read the prospectus carefully before investing or sending money.
Investing involves risk, including possible loss of principal. The funds are not FDIC insured and there is no bank or other financial institution guarantee. The principal
value of the funds is not guaranteed at any time including at and after the target date. Asset allocation models and diversification do not promise any level of
performance or guarantee against loss of principal. Investment in the funds is subject to the risks of the underlying funds.
flexPATH Strategies are Collective Investment Trusts available only to qualified plans and governmental 457(b) plans. They are not mutual funds and are not registered
with the Securities and Exchange Commission. Wilmington Trust Retirement and Institutional Services Company serves as Trustee and is responsible for maintaining
and administering the funds.
Investment Advisory Services offered through flexPATH Strategies, LLC.
©2015 flexPATH Strategies, LLC. All Rights Reserved. The flexPATH Strategies name and logo are registered trademarks of flexPATH Strategies, LLC or its
subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners. FLEX-2015-4 ACR#147653
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