Stadion Flex Target Date CIT Series

(Sponsored by Benefit Trust Company)

Goal: Manage "to" a given retirement date seeking to reduce point in retirement risk

Underlying Holdings: ETFs, cash/cash equivalents

Target date funds are a popular choice for retirement plans. The fund structure is designed to automatically decrease equities and increase fixed income positions as it approaches the retirement date, giving participants less equity exposure as they have fewer and fewer years to make up any losses. At Stadion, we’ve taken target date funds one step further by actively managing the asset allocation within the glide path.

Drag to see table
FundTickerCUSIP
Stadion Flex 2050 FundBST51461646473.0
Stadion Flex 2040 FundBST41461646523.0
Stadion Flex 2030 FundBST31461646564.0
Stadion Flex 2020 FundBST21461646614.0
Stadion Flex Income FundBSTR1461646655.0
Stadion Flex 2050 FundBST52461646465.0
Stadion Flex 2040 FundBST42461646515.0
Stadion Flex 2030 FundBST32461646556.0
Stadion Flex 2020 FundBST22461646598.0
Stadion Flex Income FundBSTR2461646648.0
Stadion Flex 2050 FundBST53461646457.0
Stadion Flex 2040 FundBST43461646499.0
Stadion Flex 2030 FundBST33461646549.0
Stadion Flex 2020 FundBST23461646580.0
Stadion Flex Income FundBSTR3461646630.0
Stadion Flex 2050 FundBST54461646440.0
Stadion Flex 2040 FundBST44461646481.0
Stadion Flex 2030 FundBST34461646531.0
Stadion Flex 2020 FundBST24461646572.0
Stadion Flex Income FundBSTR4461646622.0

Stadion reacts to market movements instead of predict them.

We believe evaluating and managing risk in the market is fundamental. That’s why within the Stadion Flex Target Date CIT Series portfolios, there are three key components: equity, fixed income and “Flex”—the portion that we actively manage.

Portfolio components

Equity:

  • Persistent equity exposure
  • Provides broad market exposure (large cap, mid cap, small cap and international)
  • Periodically adjusts holdings based on shifts within the markets

Example: Can add exposure to emerging markets

Flex:

  • Tactical asset allocation strategy drives portfolio allocation
  • Dynamic sell criteria
  • Adjusts equity exposure as determined by our model

Example: This portion can be invested in 100% equity positions or 100% cash/cash equivalent positions

Fixed Income:

  • Persistent fixed income exposure
  • Generally high-quality, low-duration positions
  • Periodically adjusts holdings based on shifts within the market

Example: Can shorten duration should interest rates start to rise

The glide path

As the investor nears retirement, the equity component allocations decrease while the fixed income allocation increases. In the early years, Stadion manages the Flex component with an emphasis on aggressive market exposure. Over time, we manage the Flex portion with an increasingly conservative emphasis on market exposure.


The allocated percentages above are approximate, may change based on market conditions, and may vary based on retirement plan provider.

*Low-Risk Environment and High-Risk Environment refer to risk levels in equity markets as determined by Stadion's model.

Target Date Funds

Photo of Brad Thompson, CFA

Brad Thompson, CFA,

Chief Investment Officer, Investment Committee member

  • 21 years as a Portfolio Manager
  • 30 years trading experience

Brad Thompson joined Stadion in 2006, bringing 20+ years of financial analysis, investment management, and fund management experience with him to Stadion, where he manages the Stadion Portfolio Management team. Prior to joining Stadion, Brad served as the Chief Investment Officer and Chief Financial Analyst for Global Capital Advisors. Brad has a Bachelor of Business Administration Degree in Finance from the University of Georgia, and also holds the Chartered Financial Analyst designation. Brad is a member of the CFA Institute and the Bermuda Society of Financial Analysts and also holds the Chartered Retirement Plan Specialist Designation. Brad has served on the board of the Executive Leadership Council for the American Cancer Society and on the Board of Trustees for the University of Georgia Terry College of Business Student Managed Investment Fund. Brad enjoys watching UGA football and spending time with his family.

Photo of Will McGough, CFA

Will McGough, CFA,

Senior Vice President, Portfolio Manager

  • 6 years as a Portfolio Manager
  • 14 years as a Portfolio Analyst

Will McGough joined Stadion Money Management in 2003. He leads the implementation of model-driven investment decisions and investment/market analysis to fulfill Stadion's investment products’ mandates. Will also helps guide the development of systems and processes critical to achieving scalable growth. A key interface with Stadion's institutional partners, Will is responsible for Stadion's best execution efforts and has played a pivotal role in managing Stadion's operational on-boarding of new products and the Portfolio Management team's launch or integration of them. Will received his BBA in Finance from the University of Georgia and also holds the Chartered Financial Analyst designation. Will is a member of the CFA Institute, the CFA Society of Atlanta, the American Association of Professional Technical Analysts, National Association of Active Investment Managers, the UGA Alumni Association and National Eagle Scout Association. Outside of the office, Will and his wife Casey lead an active community life and stay busy keeping up with their two young daughters and a houseful of dogs.

Photo of Clayton Fresk, CFA

Clayton Fresk, CFA,

Portfolio Manager

  • 4 years as a Portfolio Manager
  • 11 years trading experience

Clayton is a portfolio manager on several of Stadion’s portfolios, including the Alternative Income portfolio. He is responsible for managing the fixed income and cash allocations across Stadion’s suite of products. He conducts in-depth model, market, product, and performance analysis and is a key liaison between the department and Sales and Marketing. He is also a regular contributor to etf.com and was named an "ETF Rockstar" in 2013 by ETF Report. Clayton joined Stadion in 2009, before which he was most recently a Sr. Business Analyst at RiverSource Investments, LLC in Minneapolis, MN. Clayton holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Minnesota. He also received an MBA degree and a Bachelor's degree in Finance & Marketing from the University of Minnesota. Outside of work, Clayton enjoys traveling, golfing, and playing & watching sports.

Some of the principal risks associated with investing in this Fund include:
Loss of Money
Since the investment’s market value may fluctuate up and down, an investor may lose money when he or she buys or sells the investment, including part of the principal.
Market/Market Volatility
The market value of the portfolio’s securities may fall rapidly or unpredictably due to changing economic, political or market conditions, which may reduce the value of the portfolio.
Inflation/Deflation
Inflation may cause the present value of future payments to decrease, causing a decline in the future value of assets or income. Deflation causes prices to decline throughout the economy over time, impacting issuers’ creditworthiness and increasing their risk for default, which may reduce the value of the portfolio.
Active Management
Performance is subject to the risk that the advisor’s investment strategies are not suited to achieving the investment objective or do not perform as expected, which may cause the portfolio to lose value or underperform investments with similar objectives and strategies.
Portfolio Turnover
Engaging in active trading may create high portfolio turnover, or a turnover of 100% or more, resulting in increased transaction costs.
Exchange Traded Funds
Assets invested in ETFs generally reflect the risks of owning the underlying securities they are designed to track, although they may be subject to greater liquidity risks and higher costs than owning the underlying securities directly due to their management fees.
Underlying Fund (also known as Fund of Funds, or Subsidiary)
A portfolio’s risks are closely associated with the risks of the securities and other investments held by the underlying funds, and the ability of the portfolio to meet its investment objective likewise depends on the ability of the underlying funds to meet their objectives.
Fixed Income Securities
The value of assets invested in fixed-income or debt securities may be susceptible to general movements in the bond market and are subject to increased interest rate and credit risk.
Equity Securities
The value of equity securities, which include common, preferred and convertible preferred stocks, will fluctuate based on changes in their issuers’ financial conditions as well as overall market and economic conditions, and can decline in the event of deteriorating issuer, market or economic conditions.
Foreign Securities
Assets invested in foreign securities may be subject to increased volatility as the value of these securities changes more rapidly and extremely than the value of U.S. securities. Foreign securities are subject to increased issuer risk, since foreign issuers may not experience the same degree of regulation as U.S. issuers, and are held to different reporting, accounting and auditing standards. In addition, foreign securities are subject to increased costs, since there are generally higher commission rates on transactions, transfer taxes, higher custodial costs and the potential for foreign tax charges on dividend and interest payments. Many foreign markets are relatively small, and securities issued in less developed countries face the risks of nationalization, expropriation or confiscatory taxation, and adverse changes in investment or exchange control regulations, including suspension of the ability to transfer currency from a country. Political changes or diplomatic developments can also negatively impact performance.
Emerging Markets
Assets invested in emerging market securities may be subject to a greater extent to market, credit, currency, liquidity, legal, political and other risks compared to assets invested in developed foreign countries.
Other
The investment’s performance may be impacted by its concentration in a certain type of security, adherence to a particular investing strategy or unique aspect of its structure and costs.

The Stadion Flex Target Date Collective Investment Trust Series are funds that are Collective Investment Trusts (CIT) created by Benefit Trust Company and administered by Benefit Trust Company, as trustee. Its shares are not deposits of Benefit Trust Company and are not insured by the FDIC or any other agency. The CIT is not a mutual fund. The CIT is a security which has not been registered under the Securities Act of 1933 and is exempt from investment company registration under the Investment Company Act of 1940. As market conditions fluctuate, the investment return and principal value of any investment will change. Diversification may not protect against market risk. There are risks involved with investing, including possible loss of principal. Stadion utilizes ETFs as the primary underlying investment vehicle in the CITs. There are additional costs and potential risks associated with investing in domestic and international Exchange-traded Funds (ETFs). Investment in the funds is subject to investment risks, including, without limitation, market risk, management style risk, risks related to “fund of funds” structure, sector risk, fixed income risk, tracking risk, risks related to ETF net asset value and market price, foreign securities risk, risks related to portfolio turnover and small capitalization companies risk. Since each Stadion CIT is a “fund of funds” an investor will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which a Stadion CIT invests in addition to the Stadion CIT’s direct fees and expenses. This material should not be viewed as advice or recommendations with respect to asset allocation or any particular investment. Before investing in any investment portfolio, the client and financial professional should carefully consider client investment objective, time horizon, risk tolerance, and fees.

Performance results shown are net of each Fund’s fees and the fees and expenses of the underlying ETFs and CIFs. Certain fees may not be immediately reflected in the performance figures due to a limited number of assets in a particular Fund. Such fees will be accrued and ultimately included  in the performance results. Performance results include reinvestment of all dividends and distributions. Performance results include changes in principal value and assume reinvestment of all dividends and capital gain distributions. For periods of less than 1 year, return figures are not annualized and represent aggregate total return. The comparative performance results shown for the S&P 500 Index and the S&P Target Date Index Series demonstrate how the U.S. stock and bond markets performed generally during the same periods, and how a hypothetical investment in either market alone or the asset mixes shown would have performed during such periods. 

The S&P Target Date Index Series is composed of eleven multi-asset class indices, each corresponding to a particular target retirement date. The asset class mix for each index is determined once a year through a process designed to reflect the overall investment opportunity of the represented markets.  Each index is fully investable, with varying levels of exposure to equities and fixed income. To create its target date benchmark, S&P Indices conducts an annual survey of target date funds each year in April. Funds are required by the SEC to report their holdings quarterly. At the time of the annual index review, it was the most recent quarterly holdings data for each fund in its survey. The overall process is as follows: Funds are identified as Target Date funds from the Morningstar or Lipper databases and sorted by asset size. Fund families not meeting the minimum asset threshold of US  $100 million are removed from consideration. Fund holdings are drawn from the latest period available using commercial databases and the SEC’s Edgar web site. Asset class exposures for the funds are derived by mapping the fund holdings to their corresponding asset class category. In cases where surveyed funds hold balanced or other multi-asset class funds, S&P Indices look through to the underlying asset allocation of these funds to determine their net effect on the asset allocation of the surveyed fund.

It is not possible to invest directly in indexes which are unmanaged and do not incur fees or charges. Asset classes currently represented in the series are: Large-, mid-, and small-cap US equities; Developed International Equities; Emerging Market Equities; US REITs; Core Fixed Income; Short-Term US Treasuries; TIPS; US High Yield; and Commodities.

Each target date allocation is created and retired according to a pre-determined schedule related to the relevant target date.

The Statistics presented are defined as follows. Standard Deviation measures the average deviations of a return series from its mean, and is often used as a measure of risk. Downside Risk is calculated in the same manner as Standard Deviation, but only those observations below the mean are used in the calculation. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager’s return series to match that of the benchmark used to measure beta. Maximum Drawdown measures the largest percentage decline from a peak to a trough.

The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visit the Department of Labor’s Web site for an example showing the long-term effect of fees and expenses at http://www.dol.gov/ebsa/publications/401k employee.html. Fees and expenses are only one of the many factors to consider when you decide to invest in an option. You may also want to think about whether an investment in a particular option, along with your other investments, will help you achieve your financial goals.

Past Performance is no guarantee of future results. Investments are subject to risk, and any of Stadion's investment strategies may lose money.