CHANGE COMING TO FIDELITY FREEDOM FUNDS:
LOWER EXPENSES AND MORE TARGET DATE OPTIONS
We are pleased to announce that the JRB Board of Trustees, acting on the recommendation of the JRB’s Investment Review Committee and the research of Cammack Retirement Group, our investment consultant, approved a change to the Fidelity Freedom Funds which will:
- Lower the expense ratios resulting in higher returns
- Offer more target date fund options
There will be a “blackout period” beginning on March 8, 2021 at 4:00 PM ET to update the system. The blackout should be for one day, but it could take up to three days for our recordkeeper to make the change. During the blackout, you will be not be able to make any investment changes or initiate loans and withdrawals.
Lower Expense Ratios Result in Higher Returns
The expense ratio, the percentage of a fund's assets spent on management and operating expenses, will decline for each of the Freedom Funds. The decline in expense ratio varies by fund and ranges from 10 basis points (0.10%) to 25 basis points (0.25%). Reducing the expense ratio Fidelity charges increases your return on investment in the fund.
More Target Date Investment Options
With this change, the JRB will offer an expanded list of target date funds. Plan participants can now choose 5-year options – 2030, 2035, 2040, 2045, etc. These expanded options allow you to choose a target date fund that more closely approximates the year you plan to retire.
What Do You Need to Do?
No action is required on your part. Current Freedom Fund investors will be automatically updated. Your target date will not change. If you want to change your target date, you can do so when the blackout period ends.
Should you have any questions about the changes to the Freedom Funds or need assistance in updating your account, please contact us via email or call 888-JRB-FREE (572-3733).