2040 Fund

Investment Objective

The KP Retirement Path 2040 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.

Investment Strategy

The KP Retirement Path 2040 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.


Fund Advisor

Callan

Fund Administrator

SEI Investments Global Fund Services

Asset Class

Target Date Funds

Ticker

KPRFX

Gross Expense Ratio

0.43%

Net Expense Ratio

0.43%


Fund Characteristics

as of June 30, 2020

Current Allocation
Current Allocation Graph
Portfolio Holdings
Underlying FundTickerAsset ClassPercentage
KP Large Cap Equity FundKPLCXLarge Cap Equity 36.2%
KP Small Cap Equity FundKPSCXSmall Cap Equity12.6%
KP International Equity FundKPIEXInternational Equity 26.9%
KP Fixed Income FundKPFIXFixed Income16.8%
DFA International Real Estate Securities FundDFITXReal Assets0.8%
DFA Real Estate SecuritiesDFREXReal Assets1.5%
Lazard Global Listed Infrastructure FundGLIFXReal Assets0.8%
T. Rowe Price New Era FundTRNEXReal Assets0.8%
DFA Commodity Strategy FundDCMSXReal Assets0.8%
T. Rowe Price Institutional Floating Rate FundRPIFXReal Assets0.7%
Vanguard Inflation-Protected Securities FundVIPIXReal Assets2.2%
Ticker
KPLCX
Asset Class
Large Cap Equity
Percentage
36.2%
Ticker
KPSCX
Asset Class
Small Cap Equity
Percentage
12.6%
Ticker
KPIEX
Asset Class
International Equity
Percentage
26.9%
Ticker
KPFIX
Asset Class
Fixed Income
Percentage
16.8%
Ticker
DFITX
Asset Class
Real Assets
Percentage
0.8%
Ticker
DFREX
Asset Class
Real Assets
Percentage
1.5%
Ticker
GLIFX
Asset Class
Real Assets
Percentage
0.8%
Ticker
TRNEX
Asset Class
Real Assets
Percentage
0.8%
Ticker
DCMSX
Asset Class
Real Assets
Percentage
0.8%
Ticker
RPIFX
Asset Class
Real Assets
Percentage
0.7%
Ticker
VIPIX
Asset Class
Real Assets
Percentage
2.2%

Performance1

as of June 30, 2020

Average Annual Total Return
NameLast QuarterLast
Year
Last 3
Years
Last 5
Years
Since
1/31/142
Since
Inception3
KP Retirement Path 2040 Fund17.07%1.60%5.85%6.16%6.46%5.94%
S&P 500 Index20.54%7.51%10.73%10.73%11.27%10.61%
2040 Fund Benchmark16.55%1.90%5.66%5.99%6.36%5.86%
Last Quarter
17.07%
Last Year
1.60%
Last 3 Years
5.85%
Last 5 Years
6.16%
Since 1/31/142
6.46%
Since Inception
5.94%
Last Quarter
20.54%
Last Year
7.51%
Last 3 Years
10.73%
Last 5 Years
10.73%
Since 1/31/143
11.27%
Since Inception
10.61%
Last Quarter
16.55%
Last Year
1.90%
Last 3 Years
5.66%
Last 5 Years
5.99%
Since 1/31/144
6.36%
Since Inception
5.86%

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 2040 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 2040 Fund Benchmark is a weighted-average of the returns for various market indices appropriate for each asset class in the KP Retirement Path 2040 Fund. The weight of each of these indices is equal to the currently targeted weight for the corresponding asset class in the fund.

Fund Risks

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.

SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456) is the distributor for the KP Funds. Check the background of SIDCO on FINRA’s BrokerCheck.