In Practice July 23, 2010

AARP to Liquidate Mutual Funds

AARP said it will liquidate its lineup of stock and bond funds.

Reported by

The termination of the group’s funds, which have a total of about $160 million in assets, is expected to occur around October 1, said Richard “Mack” Hisey, AARP Funds’ president, in a telephone interview with MarketWatch. “Liquidation was the best option for shareholders,” Hisey said. “There are a number of reasonable alternatives to these funds in the marketplace.”   

MarketWatch reports that Hisey said the funds’ directors had discussed the possibility of another fund family acquiring the assets. Shareholders can find alternatives with help from an AARP Funds financial adviser, or they can receive a check for the proceeds of their account once the funds are shuttered.   

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The funds to be liquidated include: 

  • AARP Aggressive Fund,  
  • AARP Income Fund,  
  • AARP Moderate Fund,  
  • AARP Conservative Fund, and 
  • AARP Money Market Fund. 

Hisey said, “we just didn’t make the impact in the marketplace in terms of size and assets that we had hoped,” according to the news report.

«