Morningstar weighs in on American Funds Portfolio Series
Several of our model portfolios and Portfolio Series funds recently received analyst ratings from Morningstar.
Portfolios composed to help you focus on what matters
Years of fundamental research, a long-term track record and skilled investment experience are brought together to create the American Funds Portfolio Series. Our turnkey portfolios help balance your offerings so you can focus on expanding your practice while helping you meet the targeted needs of your clients, without missing a beat.
Objective-based
Pursue a wide range of goals based on time frame, risk tolerance and clients' needs.
Trusted
Invest in a blend of funds with proven track records carefully selected by senior investment professionals.
Monitored
Benefit from regular reviews by the Portfolio Solutions Committee to ensure underlying funds and allocations are aligned with fund objectives.
Portfolio series funds
The allocations shown are actual allocations as of March 31, 2023, and are subject to the oversight committee’s discretion.
Access to global opportunities
Seeks long-term growth of capital through exposure to global companies with strong growth potential.
May be appropriate for clients who:
- Want an investment that seeks to take advantage of changes in the global economy.
- Want to invest a portion of their portfolios for longer term goals.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
Built for long-term growth
Seeks long-term growth of capital through exposure to companies primarily in the U.S. with strong growth potential.
May be appropriate for clients who:
- Tend to buy individual stocks and could benefit from more diversification.
- Want to invest a portion of their portfolios for longer term goals.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
Seeking growth and income
Seeks long-term growth of capital through exposure to equities with a secondary objective of current income through dividend-paying equities and fixed income securities.
May be appropriate for clients who:
- Want an investment that seeks both growth and income.
- Want a core investment for their retirement or long-term savings plans.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
Balancing growth potential and volatility
Seeks a combination of long-term growth of capital and current income primarily through a balanced exposure to growth- and income-oriented equities and fixed income securities.
May be appropriate for clients who:
- Want a single investment with exposure to global stocks and bonds.
- Want a core investment for their retirement or long-term savings plans.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
A focus on income
Seeks primarily to provide high current income and, secondarily, long-term growth of capital through dividend-paying equities and fixed income securities.
May be appropriate for investors who:
- Want to pursue income growth with the potential for lower volatility than the S&P 500.
- Seek a single, broadly diversified fund with exposure to stocks and bonds all over the world.
- Have significant assets in cash and want an investment managed for volatility.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
Seeking tax-exempt income
Seeks primarily to provide high current income and, secondarily, long-term growth of capital through dividend-paying equities and tax-exempt fixed income securities.
May be appropriate for clients who:
- Are making regular withdrawals to help cover expenses or supplement income.
- Need a place to invest their required minimum distributions (RMDs).
- Are high net worth and want to add a tax-exempt investment to their portfolios.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
Seeking income and preservation
Seeks preservation of capital primarily and current income secondarily through a diversified portfolio of high-quality fixed income securities.
May be appropriate for clients who:
- Want savings to cover daily and emergency expenses.
- Have significant holdings in cash but are willing to accept some volatility.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
A tax-exempt foundation
Seeks preservation of capital and current income through a diversified portfolio of high-quality tax-exempt fixed income securities.
May be appropriate for clients who:
- Want savings to cover daily and emergency expenses.
- Need a place to invest their required minimum distributions (RMDs).
- Are high net worth and want to add a tax-exempt investment to their portfolios.
The Portfolio Solutions Committee monitors the funds and may change allocations. For current holdings and actual allocations, refer to fund details.
Target allocation:
Create balance in your practice with turnkey portfolios.
The American Funds Portfolio Series is designed to help investors pursue long‐term investment success.
Consider what these funds offer:
Flexibility
Easily incorporate the funds into your client's investment portfolio based on common objectives.
Choice
Portfolios are designed to meet distinct objectives, ranging from growth to preservation, for near-term and long-term goals.
Convenience
Purchase a diversified portfolio of American Funds in a single transaction.
Share classes
Case studies
Here are examples of how you can use the funds to address real-life investor needs that you may encounter in your practice.
Portfolio oversight
Your investment, our priority
A group of senior investment professionals with varied backgrounds and investment approaches and decades of industry experience regularly review the funds' results and holdings.
Active management of funds
The Portfolio Solutions Committee may add or remove underlying funds or change the current underlying fund weightings to help the funds meet their objectives.
Staying aligned with your objectives
Investors should meet regularly with their financial professional to determine if their investments continue to meet their needs.
S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds.
Allocations may not achieve investment objectives. The portfolios' risks are related to the risks of the underlying funds as described herein, in proportion to their allocations.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
Income from municipal bonds may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable.
While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.
There may have been periods when the results lagged the index(es). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
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This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.