The KP Retirement Path 2025 Fund (the “Fund”) seeks to achieve a balance of long-term capital growth, inflation protection, and current income by investing in a diversified mix of asset classes and investment strategies that become increasingly conservative over the life of the Fund.
The KP Retirement Path 2025 Fund pursues its investment objective by investing in a diversified combination of underlying mutual funds. Because it invests in other mutual funds, it is considered a “fund of funds.” The underlying mutual funds are invested in a wide range of asset classes including stocks, bonds, real assets, and short-term investments. The fund is also diversified across a wide range of strategies managed by a total of 21 different sub-advisors – all selected by Callan LLC (“Callan”), the fund’s investment advisor. Finally, Callan automatically adjusts the fund’s asset allocation over time to achieve a balance between long-term growth, inflation protection, and current income.
SEI Investments Global Fund ServicesAsset Class
Target Date Funds
KPRCXGross Expense Ratio
0.37%Net Expense Ratio
as of September 30, 2020
|Underlying Fund||Ticker||Asset Class||Percentage|
|KP Large Cap Equity Fund||KPLCX||Large Cap Equity||28.3%|
|KP Small Cap Equity Fund||KPSCX||Small Cap Equity||6.7%|
|KP International Equity Fund||KPIEX||International Equity||14.3%|
|KP Fixed Income Fund||KPFIX||Fixed Income||30.4%|
|DFA International Real Estate Securities Fund||DFITX||Real Assets||1.0%|
|DFA Real Estate Securities||DFREX||Real Assets||1.9%|
|Lazard Global Listed Infrastructure Fund||GLIFX||Real Assets||0.9%|
|T. Rowe Price New Era Fund||TRNEX||Real Assets||1.0%|
|DFA Commodity Strategy Fund||DCMSX||Real Assets||0.9%|
|T. Rowe Price Institutional Floating Rate Fund||RPIFX||Real Assets||1.0%|
|Vanguard Inflation-Protected Securities Fund||VIPIX||Real Assets||2.8%|
|Vanguard Short-Term Bond Index Fund||VBIPX||Short-Term Fixed Income||6.1%|
|Vanguard Short-Term Inflation Protected Securities Fund||VTSPX||Inflation Protection||4.5%|
as of September 30, 2020
Average Annual Total Return
|Name||Last Quarter||Last |
|KP Retirement Path 2025 Fund||4.45%||7.62%||6.18%||7.66%||6.20%||5.85%|
|S&P 500 Index||8.93%||15.15%||12.28%||14.15%||12.26%||11.61%|
|2025 Fund Benchmark||4.34%||7.23%||6.05%||7.50%||6.01%||5.70%|
1 The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. For performance data current to the most recent month end, please call 855-4-KPFNDS.
2 Participants in the Kaiser Permanente retirement plans could invest in the Fund beginning on January 31, 2014. The Fund's performance before January 31, 2014 did not impact those participants.
3 The inception date for the KP Retirement Path 2025 Fund is January 10, 2014.
The S&P 500 Index is a free float-adjusted capitalization-weighted index comprised of equity securities issued by 500 of the largest U.S. companies.
The 2025 Fund Benchmark is a weighted-average of the returns for various market indices appropriate for each asset class in the KP Retirement Path 2025 Fund. The weight of each of these indices is equal to the currently targeted weight for the corresponding asset class in the fund.
To determine if one of these funds is an appropriate investment for you, carefully consider the fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information may be found in the fund’s summary and full prospectuses, which may be obtained from this website or by calling (855) 4-KPFNDS. Please read the prospectus carefully before investing.
The KP Retirement Path Funds are mutual funds. They are part of The KP Funds Series Trust, an open-end management investment company that offers shares of diversified portfolios. The funds are advised by Callan LLC, a registered investment advisor. They are administered by SEI Investments Global Funds Services and distributed by SEI Investments Distribution Co., which are not affiliated with Callan.
Only participants in the Kaiser Permanente defined contribution plans can invest in the funds.
There can be no assurance that the funds will achieve their stated objectives. An investor may experience losses, at any time, including near, at, or after a fund’s target retirement year. In addition, there is no guarantee that an investor’s investment in the fund will provide any income at or through the years following the fund’s target retirement year in amounts adequate to meet the investor’s goals or retirement needs.
The funds invest in a diversified combination of underlying mutual funds, thus are subject to the risks associated with their underlying funds, although each fund’s exposure to a particular risk will be proportionate to the fund’s overall asset allocation. In addition, diversification is not guaranteed to protect against market loss. Some of these risks are outlined below:
- The prices of common stocks may fall over short or extended periods of time. In particular, growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty;
- Small and medium capitalization stocks may be more volatile than those of larger companies;
- Bonds are subject to interest rate risk and will decline in value as interest rates rise;
- Mortgage-backed securities are subject to pre-payment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities;
- Non-investment grade bonds involve greater risks of default and are more volatile than investment grade securities, due to the speculative nature of the investment;
- International investments involve risk of capital loss from differences in generally accepted accounting principles or from social, economic, or political instability in other nations. These risks are heightened when investing in emerging markets or in a single country;
- International investments are also subject to the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the underlying fund would be adversely affected;
- The use of leverage by underlying fund managers may accelerate the velocity of potential losses;
- The use of derivatives are often more volatile than other investments and magnify the fund’s gains or losses.