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While the AARP Funds have achieved competitive investment performance, their small size has resulted in relatively high total expense ratios, even though the net expenses to shareholders were low. Consequently, AARP Financial Inc. determined that keeping expenses low to investors was not possible.
Therefore, after a robust consideration process, the AARP Funds Board of Trustees determined, given that reasonable investment alternatives exist currently in the mutual fund marketplace, shareholders' interests would best be served by liquidating the AARP Funds.
As a result, the AARP Aggressive Fund (AAGSX), the AARP Moderate Fund (AAMDX), the AARP Conservative Fund (AACNX), the AARP Income Fund (AANCX) and the AARP Money Market Fund (AARXX) will be liquidated on or about October 1, 2010 (Liquidation Date).
On the Liquidation Date, shares will be converted automatically to cash and shareholders will receive a check for the value of their shares. Payment will be determined by the value of the shares on the date of redemption. Any shareholder has the option to voluntarily redeem their shares prior to the liquidation.
The AARP Funds (and the underlying AARP Portfolios) are expected to continue to be managed according to their investment objectives, until the Liquidation Date. However, they will likely maintain higher cash positions to meet anticipated redemption requests. Additionally, AARP has significant investments in each of the underlying AARP Portfolios in which the AARP Funds invest and has committed to remain invested until the Liquidation Date.
Shareholders are advised that there may be tax implications associated with any redemption or liquidation and are encouraged to consult with their tax advisor.
We are committed to helping shareholders understand the liquidation process and providing the assistance needed.
For more information, please call our Financial Center at 1-888-242-8412 Monday through Friday 8 a.m. to 6 p.m. to receive guidance from one of our Financial Advisors.
Click here for additional info (PDF 22k)
The mutual funds described in this site are sold only to U.S. residents.
An Investment in the Funds involves risk, including possible loss of principal. Please consider the investment objectives, risks, charges and expenses of the AARP Funds carefully before investing. The prospectus contains this and other important information about the Funds. To get a prospectus containing this and other information, click here (PDF) or call 1-866-218-6142. Read it carefully before you invest.
While AARP has licensed the use of its name to AARP Funds and endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is an investment adviser and a subsidiary of AARP.
The Financial Advisors are registered representatives of ALPS Distributors, Inc., a registered broker-dealer, and as investment adviser representatives of AARP Financial Inc., an investment adviser. AARP Financial Inc. offers investment advisory services and is not affiliated with ALPS Distributors, Inc.
AARP Funds are distributed by ALPS Distributors, Inc.