The market’s ups and downs over the last five years has many investors questioning if they will be able to retire when planned. The American Century Livestrong 2025 Investor Shares (MUTF: ARWIX) may help those who still hope to retire in the next 15 years by setting a firm finish line.
The Livestrong Portfolio funds give investors a straightforward way to save for retirement based on the year they plan to retire. The fund’s target date, in this case 2025, is the approximate year in which investors plan to start withdrawing their money. However, the principal value of the fund is not guaranteed at any time, so investors with specific needs may want to include the fund as part of a diversified investment strategy.
Here are the specifics for the American Century Livestrong 2025 Investor Share Fund for today’s mutual fund spotlight:
Investing Strategy: The fund invests mostly in other American Century mutual funds that represent a variety of asset classes and investment styles suitable for the fund’s targeted withdrawal date. Currently, 56% of the fund is in stocks, 33% is in bonds, with the remainder in cash and cash equivalents.
Expense Ratio: With a .84% expense ratio and no transaction fee, the fund is one of the lower cost funds in the large blend category and has a Morningstar Rating of five stars.
Top 5 Holdings: The top fund holdings in the American Century Livestrong 2025 Investor Share Fund include American Century NT Diversified Bond I (MUTF: ACLDX) at 22.40%, American Century NT Equity Growth Institutional Shares (MUTF: ACLEX) at 12.37%, American Century NT Large Company Val I (MUTF: ACLLX) at 11.70%, American Century NT Growth Institutional Shares (MUTF: ACLTX) at 10.23%, and American Century NT Intl Growth I (MUTF: ACLNX) at 7.85%.
Returns: The one-year return of 22.3% underperformed the Dow Jones Industrial Average’s return of 29.8% and the S&P 500, which returned 30.8% over the same period. Its 5-year return of 7.8% also underperformed the Dow’s 12.8% return, but beat the S&P 500’s 5.3% return.
Other Fund Statistics
- Total Assets: $1.01 billion (as of 7/5/11)
- Minimum Investment: $2,500
- Fund manager: Irina Torelli, Scott Wilson, Enrique Chang, Scott Wittman and Richard Weiss
- Fund Originated: December, 2004, December 2006, January 2009, June 2009, and May 2010, respectively.