Class, the annualized returns ranked in the fourth, second and third quintiles of its performance universe for the one-, three- and five-year periods ended December 31, 2023, respectively, which exceeded the performance universe median for the three- and five-year periods ended December 31, 2023, and ranked specifically in the 71st percentile for the one-year period ended December 31, 2023. The Fund outperformed the Morningstar index for each period reviewed with the exception of the Investor Class for the one-year period ended December 31, 2023.
Empower Lifetime 2035 Fund: The annualized returns of the Investor Class for the one-, three-, five- and ten-year periods ended December 31, 2023, were in the fifth, fourth, fourth and third quintiles, respectively, of its performance universe, with specific rankings in the 66th, 74th and 53rd percentiles for the three-, five- and ten-year periods, respectively. The annualized returns of the Institutional Class exceeded its performance universe median for the three-year period ended December 31, 2023, equaled its performance universe median for the five-year period ended December 31, 2023, and ranked in the fourth quintile of its performance universe (79th percentile) for the one-year period ended December 31, 2023. The Fund outperformed the Morningstar index for each period reviewed with the exception of the Investor Class for the one-year period ended December 31, 2023.
Empower Lifetime 2040 Fund: The annualized returns of the Investor Class ranked in the fifth, fourth and fourth quintiles of its performance universe for the one-, three- and five-year periods ended December 31, 2023, respectively, with specific rankings in the 71st and 75th percentiles for the three- and five-year periods, respectively. As to the Institutional Class, the annualized returns ranked in the fifth, third and third quintiles of its performance universe for the one-, three- and five-year periods ended December 31, 2023, respectively, with specific rankings in the 55th and 56th percentiles for the three- and five-year periods, respectively. The Fund outperformed the Morningstar index for each period reviewed with the exception of the one-year period ended December 31, 2023.
Empower Lifetime 2045 Fund: The annualized returns of the Investor Class for each of the three-, five- and ten-year periods ended December 31, 2023 were in the fourth quintile of its performance universe, specifically ranking in the 65th percentile for the ten-year period, while the annualized returns for the one-year period ended December 31, 2023 were in the fifth quintile of its performance universe. For the Institutional Class, the annualized returns were in the fifth, fourth and fourth quintiles of its performance universe for the one-, three- and five-year periods ended December 31, 2023, respectively, and specifically ranked in the 62nd percentile for each of the three- and five-year periods ended December 31, 2023. Although the Investor Class underperformed the Morningstar index for each period reviewed, its performance for the five-year period ended December 31, 2023 was one basis point below the Morningstar index. The Institutional Class exceeded the Morningstar index for the three- and five-year periods ended December 31, 2023, and underperformed the index for the one-year period ended December 31, 2023.
Empower Lifetime 2050 Fund: For the Investor Class, the annualized returns were in the fifth, fourth and fifth quintiles of its performance universe for the one-, three- and five-year periods ended December 31, 2023, respectively. As to the Institutional Class, its annualized returns were in the fifth, fourth and fourth quintiles of its performance universe for the one-, three- and five-year periods ended December 31, 2023, with specific rankings for the three- and five-year periods in the 61st and 69th percentiles, respectively. The Institutional Class exceeded the Morningstar index for the five-year period ended December 31, 2023, and the Fund underperformed or approximated the index for each other period reviewed.
Empower Lifetime 2055 Fund: For the Investor Class, the annualized returns were in the fifth quintile of its performance universe for each of the one-, three and five-year periods ended December 31, 2023, and in the fourth quintile of its performance universe for the ten-year period ended December 31, 2023. As to the Institutional Class, the annualized returns were in the fifth, fourth and fourth quintiles of its performance universe for the one, three- and five-year periods ended December 31, 2023. The Fund underperformed or approximated the Morningstar index for each period reviewed with the exception of the Institutional Class for the five-year period ended December 31, 2023.
Empower Lifetime 2060 Fund: The annualized returns of each class of the Fund for the one-year period ended December 31, 2023 ranked in the fifth quintile of its respective performance universe. The annualized returns of the Fund’s Investor Class and Institutional Class for the three-year period ended December 31, 2023 ranked in the fifth and fourth quintiles, respectively, of its performance universe. The Fund underperformed or approximated the Morningstar index for each period reviewed.
In evaluating the comparative performance data, the Board considered that the Funds are “target date” funds, which have an asset allocation strategy designed to meet certain investment goals based on an investor’s investment horizon (such as projected retirement date) and personal objectives. As the Funds approach their respective target year (i.e., the presumed
