Seven of the Morningstar "Thrilling" 37 are building blocks of our target date series
Out of more than 8,000 funds, only 37 were deemed "Thrilling" by Morningstar — and 7 of those are American Funds.*
Funds were selected based on what Morningstar believes are "the data points most closely linked with strong performance," 8 tests assessing returns, expenses, risk, analyst ratings and more. Less than half of 1% made the final cut.
More "Thrilling 37" underlying strategies than any other target date series
Eight of the "Thrilling 37" funds are also underlying funds among the 4 largest target date series. Seven of these 8 funds are in American Funds Target Date Retirement Series®.†
In evaluating target date funds, investors should consider how the various features of each fund, including the underlying funds, investment results, expenses and glide path construction, apply to their personal situation.
Passive funds are not managed to generate returns that exceed their benchmarks, so target date funds that have only passive underlying investments likely will not have funds on the Morningstar “Thrilling” list.
Source: Morningstar, as defined by mutual fund assets under management as of June, 30, 2021.
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Morningstar-selected underlying strategies in each American Funds Target Date Retirement Series® vintage.†
As of June 30, 2021.
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*Source: Morningstar, "The Thrilling 37," by Russel Kinnel, July 2021. Morningstar’s screening took into consideration expense ratios, manager ownership, returns over manager’s tenure, and Morningstar Risk, Analyst and Parent ratings. The universe was limited to share classes accessible to individual investors with a minimum investment no greater than $50,000 and did not include funds of funds. Class A shares were evaluated for American Funds. American Funds Target Date Retirement Series invests in Class R-6 shares of the underlying American Funds. Not all seven American Funds strategies are in each target date fund. Underlying funds may change over time. Visit www.morningstar.com for more details.
†Not all seven funds listed in the “The Thrilling 37” list are in each target date fund. Underlying funds may change over time.
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.
Each target date portfolio is composed of a mix of underlying funds and is subject to the risks and returns of those funds. Underlying funds may be added or removed during the year. Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
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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.
©2022 Morningstar, Inc. All Rights Reserved. Except for Lipper rating information, the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.