Fund Evaluator:
Empower Lifetime 2040 Svc (MXBEX)
Follow This Fund
Best Performing in Target-Date 2040 Over the Last Year
| 28.5% | SP Funds 2040 Target Date Investor (SPTBX) |
| 21.0% | Fidelity Advisor Freedom Blend 2040 Z (FHHFX) |
| 20.4% | Fidelity Advisor Sust Trgt Dt 2040 Z (FSYDX) |
| 20.3% | Victory Target Retirement 2040 (URFRX) |
| 20.3% | Fidelity Advisor Sust Trgt Dt 2040 I (FSYBX) |
Fund Details
Empower Lifetime 2040 Svc Overview
Empower Lifetime 2040 Svc (MXBEX) is an actively managed Allocation Target-Date 2040 fund. Empower Funds launched the fund in 2016.
The investment seeks capital appreciation and income consistent with its current asset allocation; after 2040, it seeks income and secondarily, capital growth. The fund seeks to achieve its objective by investing in a professionally selected mix of underlying funds that is tailored for investors planning to retire in (or otherwise begin using the invested funds on), or close to, 2040 (which is assumed to be at age 65). It is designed for investors who plan to withdraw the value of their account in the fund gradually after retirement. While the fund is non-diversified, it invests in diversified underlying holdings.
About Empower Lifetime 2040 Svc (MXBEX)
There are 2 members of the management team with an average tenure of 9.26 years: Andrew Corwin (2016), Maria Mendelsberg (2018). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100% and Morningstar Lifetime Mod 2040 TR USD index with a weighting of 100%. Empower Lifetime 2040 Svc has 22 securities in its portfolio. The top 10 holdings constitute 74.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Empower Lifetime 2040 Svc is part of the Allocation global asset class and is within the Allocation fund group. Empower Lifetime 2040 Svc has 26.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 54.4%. There is 23.9% allocated to foreign stock, and 0.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 17.4% (14.8% domestic bond, 2.6% foreign bond and 0.4% convertible bond). Empower Lifetime 2040 Svc has 1.3% of the portfolio in cash.
Assets Under Management
The fund has $24 million in total assets, which is below the $1 billion average for the Target-Date 2040 category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
MXBEX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Empower Lifetime 2040 Svc expense ratio is high compared to funds in the Target-Date 2040 category. Empower Lifetime 2040 Svc has an expense ratio of 0.95%, which is 41% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Empower Lifetime 2040 Svc has a portfolio turnover rate of 31%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2040 category.
Recently, in the month of July 2026, Empower Lifetime 2040 Svc returned -0.4%, which earned it a grade of B, as the Target-Date 2040 category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Empower Lifetime 2040 Svc has a trailing yield of 1.73%, which is below the 1.91% category average. The fund normally distributes its income annually and its capital gains semi-monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Empower Lifetime 2040 Svc Grades
Year to date, the fund has returned 8.9%, 0.1 percentage points better than the category, which translates into a grade of C. The fund has returned 16.6% over the past year (grade of D), 12.5% over the past three years (grade of F) and 6.7% per year over the past five years (grade of F) and 9.1% per year over the past 10 years (grade of F).
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MXBEX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| MXBEX Return (NAV) | -0.4% | 3.2% | 16.6% | 12.5% | 6.7% | 9.1% |
| MXBEX Grade | B | A | D | F | F | F |
| +/- Category | 0.4% | 0.4% | -0.5% | -1.7% | -1.0% | -0.8% |
| Target-Date 2040 Avg | -0.8% | 2.8% | 17.2% | 14.2% | 7.7% | 10.0% |
| MXBEX Tax Cost Ratio | na | na | 1.4% | 1.5% | 2.0% | 1.9% |
MXBEX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MXBEX Return (NAV) | 8.9% | 15.7% | 10.1% | 15.6% | -16.4% | 15.0% | 13.5% | 23.6% | -8.9% | 19.3% | na |
| MXBEX Grade | C | F | F | F | B | D | D | D | F | D | na |
| +/- Category | 0.1% | -1.8% | -2.8% | -2.3% | 0.9% | -0.7% | -1.7% | -0.2% | -0.9% | -0.7% | na |
| Target-Date 2040 Avg | 8.8% | 17.4% | 12.8% | 17.9% | -17.4% | 15.7% | 15.3% | 23.8% | -7.9% | 20.1% | 7.8% |
| Risk Measures | |
| Standard Deviation: | 10.7% |
| Total Risk Index: | 0.87 - Average |
| Category Risk Index: | 1.00 - Average |
| Category Risk Grade: | C (52% Rank) |
| Beta: | 1.12 |
| R-Squared: | 96% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 1.7% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Semi-Monthly |
| Total Assets: | $1099 Mil |
| Fund Total Assets: | $ 24 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 31% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 10.3 years | |||
| Average Tenure: 9.3 years | |||
| Managers (Year): Corwin Andrew (2016), Mendelsberg Maria (2018) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 22 |
| % in Top 10 Holdings: | 74.9% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 26.5% |
Portfolio Allocation |
|
| Domestic Stock: | 54.4% |
| Foreign Stock: | 23.9% |
| Preferred Stock: | 0.1% |
| Domestic Bond: | 14.8% |
| Foreign Bond: | 2.6% |
| Convertible Bond: | 0.4% |
| Other: | 2.6% |
| Cash: | 1.3% |
Purchase Information
| Fund Family: | Empower Funds |
| Phone Number: | 866-831-7129 |
| Website: | www.greatwestfunds.com |
| Status: | Open |
| Inception Date: | April 28, 2016 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.10% |
Expenses and Fees | |
| Expense Ratio (%): | 0.95% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.67% |
| Share Class: | Empower Lifetime 2040 Instl |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
