Retirement income funds are designed for retirees who want professional management of their portfolios and portfolio distributions without the expense of an investment adviser.
All of the funds within this category as defined by Lipper have been around less than five years. Information under the “Fund overview” tab shows the funds’ one- and three-year performance compared to that of the Standard & Poor’s 500 index and the category average. Under the “Fund details” tab are the current targeted distribution rates (hover your mouse over the column at right) and each fund’s general asset allocation. The asset allocation indicates how aggressive or conservative the fund will be, which in turn will impact the performance of the fund relative to the S&P 500. For instance, a higher allocation to bonds over stocks will typically result in less volatility, but lower returns over time.
Lipper divides the category into two subsets. Nonperpetuity funds pay distributions for a finite, stated amount of time. They will have paid investors all of their principal and earnings by the time the fund is shuttered. Perpetuity funds, on the other hand, will attempt to preserve capital for as long as possible while making payments forever or until the capital is depleted.
| Category average | 15.77 | 3.15 | 1161.7 | 0.94 |
| Standard & Poor’s 500 total return | 25.95 | 0.91 | ||
| Schwab Monthly Income — Maximum Payout | 7.65 | 4.55 | 66.9 | 0.6 |
| Schwab Monthly Income — Enhanced Payout | 11.16 | 4.38 | 81.6 | 0.67 |
| Schwab Monthly Income — Moderate Payout | 14.88 | 4.06 | 21.8 | 0.75 |
| John Hancock II Retirement
Distribution – A Shares |
12.79 | 3.44 | 6.2 | 1.3 |
| John Hancock II Retirement
Rising Distribution – A |
12.3 | 2.8 | 5.6 | 1.23 |
| Vanguard Managed Payout
Distribution Focus – Investor |
21.88 | 2.61 | 432.7 | 0.38 |
| Vanguard Managed Payout
Growth and Distribution – Investor |
23.75 | 2.15 | 311.2 | 0.37 |
| Vanguard Managed Payout
Growth Focus – Investor |
26.17 | 1.27 | 70.8 | 0.36 |
| ING Global Target Payment Fund – A | 22.76 | 50.3 | 1.3 | |
| Russell 2017 Accelerated
Distribution Fund – S Shares |
16 | 6.69 | 1.5 | 0.95 |
| Russell 2017 Accelerated
Distribution Fund – A |
16.26 | 4.93 | 1.2 | 1.21 |
| Fidelity Advisor Income
Replacement 2022 – A |
15.33 | 3.57 | 0.1 | 0.83 |
| Fidelity Advisor Income
Replacement 2024 – A |
16.09 | 3.56 | 0.2 | 0.84 |
| Fidelity Income Replacement 2042 | 20.9 | 3.56 | 5.7 | 0.68 |
| Fidelity Advisor Income
Replacement 2026 – A |
16.67 | 3.52 | 0.1 | 0.85 |
| Fidelity Income Replacement 2040 | 20.61 | 3.49 | 1.3 | 0.67 |
| Fidelity Advisor Income
Replacement 2028 – A |
17.19 | 3.49 | 0.4 | 0.86 |
| Fidelity Advisor Income
Replacement 2030 – A |
17.65 | 3.48 | 0.1 | 0.87 |
| Fidelity Advisor Income
Replacement 2020 – A |
14.17 | 3.47 | 0.6 | 0.81 |
| Fidelity Advisor Income
Replacement 2018 – A |
12.7 | 3.39 | 0.8 | 0.79 |
| Fidelity Advisor Income
Replacement 2032 – A |
18.05 | 3.37 | 0.2 | 0.88 |
| Fidelity Income Replacement 2038 | 19.9 | 3.33 | 1.4 | 0.66 |
| Fidelity Advisor Income
Replacement 2034 – A |
18.48 | 3.23 | 0.1 | 0.89 |
| Fidelity Advisor Income
Replacement 2016 – A |
10.72 | 3.13 | 2 | 0.76 |
| Fidelity Advisor Income
Replacement 2036 – A |
18.96 | 3.12 | 0.1 | 0.9 |
| Russell 2027 Extended
Distribution – S |
3.2 | 3.04 | 1.7 | 0.68 |
| Russell 2027 Extended
Distribution – A |
4.71 | 1.27 | 2 | 1.04 |
| Russell 2017 Retirement
Distribution – S |
16.92 | -1.97 | 3 | 1.05 |
| Russell 2017 Retirement
Distribution – A |
17.05 | -2.43 | 1.8 | 1.33 |
| PIMCO Real Income 2019 – A | 7.03 | 6.3 | 0.79 | |
| PIMCO Real Income 2029 – A | 8.13 | 1 | 0.79 |
*Performance through May 31, 2011
Source: Lipper, a Thomson Reuters company.
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