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First Trust Target Date Fund 2040
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Closing Prices Chart (04/06/2010 to 08/05/2020)
Price Chart
Pricing
Trade Date: 08/05/2020
NAV: $21.6400
Prev NAV: $21.4700
NAV Change:
  0.7918%  $0.1700
Prev NAV Date: 08/04/2020 Close
Historical Highs/Lows
(Trade Dates 04/06/2010 to 08/05/2020)
  Price Date
NAV High: $21.7800 01/17/2020
NAV Low: $8.8000 07/02/2010
Fund Performance
  Cumulative Total Return Average Annual Total Return
As of 08/05/2020 YTD Since
Inception*
3 mo 6 mo 1 yr 3 yr 5 yr 10 yr Since
Inception*
First Trust Target Date Fund 2040 1.07% 116.40% 15.17% 0.74% 9.63% 5.24% 6.38% 8.37% 7.75%
FIRST TRUST 2040 TARGET DATE CUSTOM IDX 2.76% 168.32% 16.02% 0.62% 15.32% 9.28% 8.99% 10.76% 10.02%
RUSSELL 3000 (RAY) 4.05% 239.10% 18.00% 0.72% 18.73% 12.03% 11.34% 13.57% 12.54%
*Inception Date is 04/06/2010.
Total Return Performance Calculator
From:   To:   
  Cumulative
Total Return
Average Annual
Total Return
First Trust Target Date Fund 2040 116.40% 7.75%
FIRST TRUST 2040 TARGET DATE CUSTOM IDX 168.32% 10.02%
RUSSELL 3000 (RAY) 239.10% 12.54%
Total Expense Ratio: 1.00%. The effect of the Total Expense Ratio per $1000 investment for the Fund is $10.00 per year. The expense ratio includes 0.40% of service fees payable to the plan's service providers.

The Trustee and the Sub-Advisor have agreed to reimburse the First Trust Target Date Series ("Series") for certain fund expenses so that operating expenses of each CIF does not exceed 0.50% (excluding service fees and managed product cost within the portfolio). Expense reimbursements may be terminated or modified only by approval of the Trustee and after a 60-day notice has been provided to each Participating Trust.

Past performance is no guarantee of future results. Investment return and principal value of the portfolio will fluctuate causing units of the Fund, when redeemed, to be worth more or less than their original cost. Returns are net of all estimated expenses and assume that all dividends received during a year are reinvested monthly. It is important to note that the Fund's investment methodology may produce negative results. Indexes are for illustrative purposes only. Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown.

All index returns assume that dividends are reinvested when they are received.
Indexes are unmanaged and an investor cannot invest directly in an index.

The First Trust Target Date 2040 Custom Index is currently comprised of the following: 63.0% Russell 3000® Index, 25.5% MSCI World ex US Index, and 11.5% Bloomberg Barclays U.S. Aggregate Bond Index TR. The percentage allocated to each underlying index is updated annually.

Russell 3000® Index - An unmanaged index comprised of the 3000 largest and most liquid stocks based and traded in the U.S.

ABOUT THE FUND

The First Trust Target Date Fund is a collective investment fund that invests according to a strategy determined by First Trust Advisors L.P., which serves as the Fund's Sub-Advisor. This Fund was created by Hand Composite Employee Benefit Trust and is sponsored by Hand Benefits & Trust Company, a BPAS Company.

RISK FACTORS

Plan sponsors and participants should consider the Fund's investment objective, time horizon, risks, charges and expenses carefully before investing. Contact your financial professional or call First Trust Portfolios L.P. at 877.937.4015 to request an Information Statement, which contains this and other information about the Fund. Read it carefully before you invest.

The First Trust Collective Investment Funds are not mutual funds and their units are not deposits of the Trustee, Hand Benefits & Trust Company, or the Sub-Advisor, and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other agency. The units are securities which have not been registered under the Securities Act of 1933 and the Fund is exempted from investment company registration under the Investment Company Act of 1940. Therefore, participating plans and their participants will not be entitled to the protections under these Acts. Management of the Trust, however, is generally subject to the fiduciary duty and prohibited transaction rules under the Employee Retirement Income Security Act of 1974 (ERISA).

As with any investment, you can lose money by investing in a Fund. The mix of assets in a Fund is intended to diminish the risk of loss, but sometimes stocks, bonds, and other assets in a Fund's portfolio may lose value simultaneously. While the Funds are managed to reduce equity market exposure and, therefore, equity market risk over time, investment in a Fund is exposed to market risk and other certain risks. For more information regarding the following risks, please consult the Fund's Information Statement.

The Fund is subject to market risk which is the risk that a particular security owned by the Fund or shares of the Fund in general may fall in value. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of this COVID-19 pandemic may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.

An investment in a fund containing securities of non-U.S. issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries.

Changes in currency exchange rates and the relative value of non-U.S. currencies may affect the value of the Fund's investments and the value of the Fund's shares.

The Fund invests in small and/or mid-capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

Certain securities held by the Fund are subject to credit risk, income risk, interest rate risk and prepayment risk. Credit risk is the risk that an issuer may default on its obligation to make principal and/or interest payments when due. Credit risk is heightened for senior loan securities. Income risk is the risk that income from the Fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of debt securities will decline because of rising interest rates. Prepayment risk is the risk that, during periods of falling interest rates, an issuer may exercise its right to pay principal on an obligation earlier than expected. This may result in a decline in a fund's income. Each of these risks may have an adverse effect on the Fund's total return.

Companies that issue loans tend to be highly leveraged and thus are more susceptible to the risk of interest deferral, default and/or bankruptcy. Senior floating rate loans, in which the Fund may invest, are usually rated below investment grade but may also be unrated. As a result, the risks associated with these senior floating rate loans are similar to the risks of high-yield fixed income instruments.

High-yield securities or "junk" bonds are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered to be highly speculative. These securities are issued by companies that may have limited operating history, narrowly focused operations, and/or other impediments to the timely payment of periodic interest and principal at maturity. The market for high-yield securities is smaller and less liquid than that for investment-grade securities.

The Fund may invest in securities of other investment companies, including ETFs or other PIVs which involves additional expenses that would not be present in a direct investment in the underlying funds. In addition, a fund's investment performance and risks may be related to the investment performance and risks of the underlying funds.

The Fund may invest in Treasury Inflation-Protected Securities (TIPS), which are securities issued by the U.S. Government but differ from nominal rate Treasury securities in certain respects. TIPS are issued at fixed coupon rates lower than those of nominal rate Treasury securities, but the principal amount of TIPS fluctuates daily based on a pro-rata portion of the change in the Consumer Price Index as reported three months earlier. Coupon payments are made based on the adjusted principal value of the TIPS. In a falling inflationary environment, both the coupon payments and the value of TIPS will decline. Foreign governments may issue securities with features similar to TIPS.

The value of commodities and commodity-linked instruments typically is based upon the price movements of a physical commodity or an economic variable linked to such price movements. The prices of commodities and commodities-linked instruments may fluctuate quickly and dramatically and may not correlate to price movements in other asset classes. Each of these factors and events could have a significant negative impact on the Fund.

Real estate investment trusts and other real estate related companies are subject to certain risks, including changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

Not FDIC Insured  •  Not Bank Guaranteed  •  May Lose Value
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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