The Capital Group Portfolio Oversight Committee developed these model portfolios on 5/9/11. Results and data for the model portfolios shown are based on the current underlying fund allocations rebalanced monthly. For model portfolio results that reflect changes to the underlying fund allocations over its lifetime, see details in A model portfolio for every investor.
Source: Capital Group. These four model portfolios were selected because all of their underlying funds had at least 20-year lifetimes. Volatility is calculated at net asset value using annualized standard deviation (based on monthly returns), a measure of how returns over time have varied from the mean; a lower number signifies lower volatility. Standard deviation and average annual total returns are weighted averages for the underlying funds in the model allocations or indexes in the index blends.
*Rolling 10-year success rates are a percentage of the time the model outpaced its index/index blend over rolling periods, on a monthly basis, since 2/19/88, the inception date of American High-Income Trust, the model's youngest underlying fund. Volatility comparisons are based on the standard deviations for the models versus the appropriate index/index blend. Rolling 10-year standard deviations are annualized measuring the standard deviation of monthly returns (also annualized).