Fund Evaluator:

MoA Clear Passage 2040 Fund Overview

MoA Clear Passage 2040 Fund (MURLX) is an actively managed Allocation Target-Date 2040 fund. Mutual of America launched the fund in 2007.

The investment seeks to achieve current income and capital appreciation appropriate for the asset allocation associated with its approximate year of retirement which is included in the fund's name ("Target Retirement Date"). The fund invests in shares of other series of the Investment Company in proportions that the Adviser selects to seek to meet the objective of the fund, which will move toward preservation of capital and production of income as the Target Retirement Date.

About MoA Clear Passage 2040 Fund (MURLX)

There are 2 members of the management team with an average tenure of 8.67 years: Joseph Gaffoglio (2014), Jamie Zendel (2021). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. MoA Clear Passage 2040 Fund has 12 securities in its portfolio. The top 10 holdings constitute 99.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

MoA Clear Passage 2040 Fund is part of the Allocation global asset class and is within the Allocation fund group. MoA Clear Passage 2040 Fund has 21.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 53.5%. There is 21.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 21.2% (21.2% domestic bond, 0.1% foreign bond and 0.0% convertible bond). MoA Clear Passage 2040 Fund has 3.5% of the portfolio in cash.

Assets Under Management

The fund has $1 billion 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.

MURLX 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 MoA Clear Passage 2040 Fund expense ratio is below average compared to funds in the Target-Date 2040 category. MoA Clear Passage 2040 Fund has an expense ratio of 0.37%, which is 45% lower than its category average, making the fund expense ratio grade a A. 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. MoA Clear Passage 2040 Fund has a portfolio turnover rate of 17%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2040 category.

Recently, in the month of June 2026, MoA Clear Passage 2040 Fund returned 0.5%, which earned it a grade of B, as the Target-Date 2040 category had an average return of 0.3%. 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.

MoA Clear Passage 2040 Fund has a trailing yield of 1.99%, which is above the 1.91% category average. The fund normally distributes its income semi-annually.

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.

MoA Clear Passage 2040 Fund Grades

Year to date, the fund has returned 8.8%, 0.8 percentage points worse than the category, which translates into a grade of D. The fund has returned 18.1% over the past year (grade of D), 15.8% over the past three years (grade of C) and 9.2% per year over the past five years (grade of A) and 11.1% per year over the past 10 years (grade of B).

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