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flexPATH™ PARTICIPANT EDUCATION june2015

FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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Page 1: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

flexPATH™ PARTICIPANT EDUCATION june2015

Page 2: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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What is a TDF?

What are the benefits?– Professional management– Diversification*– Low maintenance

What are the challenges?– Does not account for individual

investor risk tolerance or savings needs.

A simple investment solution in which a portfolio’s asset allocation becomes more conservative (less exposure to equity) as the retirement target date approaches.

*Diversification does not protect against loss of principal.

Page 3: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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What is a Risk-Based Fund?

What are the benefits?– Professional management– Diversification*– Participant choice

What are the challenges?– Does not automatically adjust risk

as investor approaches retirement.

A fund featuring an asset mix determined by the level of risk and return that is appropriate for an individual investor.

*Diversification does not protect against loss of principal.

Page 4: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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How Useful are Averages?

Manute Bol7’7”200 lbs.Shoe size: 23

Spud Webb5’7”133 lbs.Shoe size: 8

Page 5: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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Are you part of a homogenous or diverse workforce?

Diverse

Single Glidepath

Homogeneous

Multiple Glidepaths

Page 6: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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flexPATH Strategies™ Glidepaths

50 45 40 35 30 25 20 15 10 5 0 -5 -10 -15 -20 -25 -300

20

40

60

80

100

Retirement

Eq

uit

y E

xp

os

ure

%

ModerateConservative Aggressive

50%40%

30%

For illustrative purposes only. Actual allocations may vary.

Page 7: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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.7

Page 8: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

flexPATH™Moderate

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• 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 long-

term return in retirement.

Page 9: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

flexPATH™Aggressive

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• 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.

Page 10: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

Choose Your Target Date

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If you expect to retire between

2050 or later

2040-2049

2030-2039

2020-2029

2019 or earlier

Then you might consider

flexPATH 2055

flexPATH 2045

flexPATH 2035

flexPATH 2025

flexPATH Retirement

Page 11: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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flexPATH Index+ Underlying FundsAsset Class Fund

U.S. Large Cap Equity

BlackRock Russell 1000 Index Fund FAmerican Beacon Bridgeway Lg Cp Val InstT. Rowe Price Instl Large Cap GrowthJPMorgan Disciplined Equity

U.S. Small Cap Equity Principal SmallCap Value II InstlDFA US Micro Cap IBlackRock Russell 2000 Index Fund F

International Equity

Pyrford International Equity Composite (BMO)Oakmark International IArtisan International InstitutionalGoldman Sachs Intl Sm Cap Insights InstFidelity International Small Cap OppBlackRock MSCI ACWI ex-U.S. IMI Index Fund F

U.S. Fixed Income

Neuberger Berman Strategic Income R6Prudential Total Return Bond QJanus Flexible Bond NBlackRock U.S. Debt Index Fund F

Commodities Deutsche Enhanced Commodity Strat InstlCommodity Index Daily Fund F

REIT Principal Global Real Estate Sec InstlDeveloped Real Estate Index Fund E

TIPS BlackRock U.S. TIPS Index Fund F

As of 3/31/2015

Page 12: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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flexPATH Index Underlying FundsAsset 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

Page 13: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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flexpathstrategies.com

Page 14: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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flexpathstrategies.com

Page 15: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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DisclosuresThis 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.

Page 16: FlexPATH ™ PARTICIPANT EDUCATION june2015. What is a TDF? 1 What are the benefits? –Professional management –Diversification* –Low maintenance What are

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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