Top Performer Retirement Income Mutual FundsRetirement income mutual funds can provide great income for retiree or near retirement investors. Typically, they are actively managed by fund manager(s) to be able to pay regular income. The funds offer more flexibility than annuities, however they are less guarantees. The funds may consist of bonds, stocks, short term investment, and cash or money market. It typically has higher bond or cash portion than stock portion.
You can buy these funds from various fund companies. Each fund companies may provide different fund objective. Some of the family funds are Fidelity, Vanguard, John Hancock, Charles Schwab, etc.
From this best performing funds list, you may find each individual fund review. You can find the fund performance, expense ratio, and yield or dividend from the table below. The list is sorted based on its year to date performance in 2012 (up to October 1, 2012).
The 12 best performing retirement income mutual funds 2012 are:
- Fidelity Income Replacement 2042
- Fidelity Income Replacement 2040
- Vanguard Managed Payout Growth Focus Inv
- Fidelity Income Replacement 2038
- Fidelity Income Replacement 2036
- Fidelity Income Replacement 2034
- Fidelity Income Replacement 2032
- Fidelity Income Replacement 2030
- Fidelity Income Replacement 2028
- Fidelity Income Replacement 2026
- Vanguard Managed Payout Gr & Dis Inv
- ING Global Target Payment A
Fidelity Income Replacement 2042 (FIXRX)
Fidelity Income Replacement 2042 fund objective is to provide total return from current income and capital appreciation. It mainly invests in other Fidelity funds: Fidelity equity funds, bond funds, and short term funds using asset allocation method. This fund will try to provide payment strategy through the fund horizon date, December 31, 2042. The fund managers are Andrew Dierdorf and Chris Sharpe.This top performer retirement income fund has total net assets of $7.53 million. Its expense ratio is 0.68% per year. The 12-month dividend yield is 1.82%. The most current dividend is distributed in August 2012 ($0.03). The annual holdings turnover as of September 17, 2012 is 15.00%. This turnover rate is lower than the category average (33.28%).
You can buy this balanced fund with minimum initial investment of $25,000. This is a no load fund, so there is no management fee and no front end sales load fee.
The fund performance since its inception is as follow:
- Year 2008: -30.02%
- Year 2009: 28.91%
- Year 2010: 13.75%
Fidelity Income Replacement 2040 (FIRWX)
Fidelity Income Replacement 2040 fund utilizes its assets to purchase Fidelity equity funds, bond funds, and short-term funds using an asset allocation strategy. This FIRWX fund has 4-stars rating from Morningstar. It is also managed by Andrew Dierdorf and Chris Sharpe. It has 1.80% dividend yield. The expense ratio is 0.68%. The fund shares price is $49.92 (Nov 4, 2012).
This best performing fund has YTD return of 10.14%. Its best 1-year total return was occurred in 2009 with 28.44%.
The asset allocation as of August 2012 is Equity Funds (60.96%), Bond Funds (32.41%) and MM/ Short-Term Funds & Net Other Assets (6.63%). The top holdings as of August 2012 are Fidelity Total Bond (15.74%), Fidelity Advisor International Discovery I (11.75%) and Fidelity Series Broad Market Opportunities (11.34%).
Vanguard Managed Payout Growth Focus Investor (VPGFX)
Vanguard Managed Payout Growth Focus fund aim is to provide monthly distributions of cash while providing inflation protection and long term capital growth. Michael H. Buek has managed it since May 2, 2008. The total net assets are $67.43 million. It also has yield of 2.56%. The recent distribution was given in September 18, 2012 ($0.04).This best performing retirement income fund also has 4-stars and Bronze rating. The annual expense ratio is 0.22%, lower than the average in the category (0.50%).
The fund has uses MP Growth Focus Composite Index as its benchmark. There is no purchase and redemption fee. The asset allocation as of August 2012 is 84.62% in Stock, 10.39% in Commodities and 4.99% in Bond. Based on the load adjusted returns, the fund has returned 8.85% over the past 1-year and 10.62% over the past 3-year.
Vanguard Managed Payout Growth & Distribution Investor (VPGDX)
The investment objective of Vanguard Managed Payout Growth & Distribution fund is seeking to make monthly distributions of cash by providing inflation protection and capital preservation. It uses its assets to buy Vanguard mutual funds based on asset allocation strategy. It may invest in diversified assets such as stocks, bonds, cash, inflation-linked investments, etc. The fund manager is Michael H. Buek. The fund’s NAV is $17.45 (November 4th, 2012).
Top Performer Target Date Mutual Funds 2011
This Vanguard fund was introduced to the market in May 2008. It has 4.48% dividend yield to its investor with the recent distribution in September 18, 2012 ($0.07). It has total net assets of $349.72 million. Morningstar analysts rated this fund with 5-stars rating and Bronze rating. The annual holdings turnover as of September 28, 2012 is 33%.
This best performing retirement income fund has returned 10.42% over the past 3-year and 7.79% over the past 1-year. The best 1-year total return was in 2009 with 23.51%. The YTD return of this fund is 8.80%. The top allocation to underlying funds as of August 2012 are Vanguard Total Stock Market Index Fund Investor Shares (35.1%), Vanguard Market Neutral Fund Investor Shares (15.0%) and Vanguard Total International Stock Index Fund Investor Shares (14.9%).
ING Global Target Payment A (IGPAX)
The ING Global Target Payment fund has expense ratio of 1.3%. Heather Hackett is the current fund manager. There is 0.25% management fee and 5.75% front-end sales load fee for investing in this fund. It has $86.66 million of total net assets. The dividend yield is 6.44%.
This top mutual fund can be purchased with minimum initial investment of $10,000. There are 54 brokerages that provide the sale of this fund. This fund is part of fund of funds. The fund’s NAV is $8.47.
The year to date return is 8.1%. Based on the load adjusted returns, it has returned 6.33% over the past 3-year and 1.30% over the past 1-year. The top portfolio compositions as of August 2012 are Bonds (40.73%), Global International (21.60%), Mid/Small/ Specialty (12.88%) and Large Cap Value (10.86%). The top 3 funds out of 17 total holdings are ING Intermediate Bond Fund Class I (19.59%), ING Index Plus International Equity Fund Class I (14.75%) and ING Large Cap Value Fund Class I (10.86%).
Disclosure: No Position
Fund Performance
| No | Fund Description | Ticker | MS | 1 Year Return % | 3 Year Return % | 5 Year Return % | 10 Year Return % | Expense Ratio |
|---|---|---|---|---|---|---|---|---|
| 1 | Fidelity Income Replacement 2042 | FIXRX | 4 | 9.56% | 9.92% | N/A | N/A | 0.68% |
| 2 | Fidelity Income Replacement 2040 | FIRWX | 4 | 9.39% | 9.86% | N/A | N/A | 0.67% |
| 3 | Vanguard Managed Payout Gr Focus Inv | VPGFX | 4 | 8.85% | 10.62% | N/A | N/A | 0.22% |
| 4 | Fidelity Income Replacement 2038 | FIRVX | 4 | 9.17% | 9.63% | N/A | N/A | 0.66% |
| 5 | Fidelity Income Replacement 2036 | FIRUX | 3 | 9.07% | 9.48% | 2.62% | N/A | 0.65% |
| 6 | Fidelity Income Replacement 2034 | FIRSX | 3 | 9.01% | 0.39% | 2.70% | N/A | 0.64% |
| 7 | Fidelity Income Replacement 2032 | FIRRX | 3 | 8.91% | 9.29% | 2.84% | N/A | 0.63% |
| 8 | Fidelity Income Replacement 2030 | FIRQX | 3 | 8.88% | 9.23% | 2.93% | N/A | 0.62% |
| 9 | Fidelity Income Replacement 2028 | FIRPX | 4 | 8.72% | 9.11% | 2.97% | N/A | 0.61% |
| 10 | Fidelity Income Replacement 2026 | FIROX | 3 | 8.60% | 9.00% | 3.03% | N/A | 0.60% |
| 11 | Vanguard Managed Payout Gr & Dis Inv | VPGDX | 5 | 7.79% | 10.42% | N/A | N/A | 0.21% |
| 12 | ING Global Target Payment A | IGPAX | 1 | 1.30% | 6.33% | N/A | N/A | 1.30% |
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