The building blocks of retirement plan success

DEFINED CONTRIBUTION FOCUS FUNDS

A successful track record

Compare the results of a hypothetical $10,000 investment in our three U.S. Equity Focus Funds when the first S&P 500 tracking fund began on August 31, 1976, through 2019.

Chart illustrates the changing values over time with the following ending amounts as of December 31,2019: The Growth Fund of America, $3,436,438; AMCAP Fund, $2,608,700; Washington Mutual Investors Fund, $1,543,222; S&P 500, $1,081,499.
U.S. EQUITY FOCUS FUNDS
INSIGHTS & RESOURCES

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1. Based on assets under management as of December 31, 2019.

2. Rolling monthly 10-year periods from the first month-end after the fund’s inception date (May 1, 1967, for AMCAP Fund; December 1, 1973, for The Growth Fund of America) through December 31, 2019. Fund peers are represented by the Morningstar U.S. Fund Large Growth category, which represents the averages of stocks in the top 70% of the capitalization of the U.S. equity market that are defined as large cap. Growth is based on fast growth (high growth rates for earnings, sales, book value and cash flow) and high valuations (high price ratios and low dividend yields). Most of these portfolios focus on companies in rapidly expanding industries.

3. The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by Morningstar's manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group's conviction in a fund's prospects for outperformance. Analyst Ratings ultimately reflect the Manager Research Group's overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/. The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group's expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

4. Source: Morningstar Global Fund Report for American Funds AMCAP R6, November 25, 2019.

5. Source: "The mutual funds most used by DC plans, by asset class — Domestic equity." Pensions & Investments. October 28. 2019, based on assets as of June 30. 2019.

6. Source: Momingstar, "Fund Spy: The Thrilling 34" by Russel Kinnel. December 2019. 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.

7. Source: Morningstar Global Fund Report for American Funds The Growth Fund of America Class R-6, May 31, 2019.

8. Source: Morningstar Global Fund Report for American Funds Washington Mutual R6, October 25, 2019.

 

Read important investment disclosures.

Figures shown are past results for Class R-6 shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns

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.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

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.

We offer a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of advisor compensation and service provider payments.

Because Class R-6 shares do not include any recordkeeping payments, expenses are lower and results are higher. Other share classes that include recordkeeping costs have higher expenses and lower results than Class R-6.

Class R-6 shares were first offered on May 1, 2009. Class R-6 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Please see each fund’s prospectus for more information on specific expenses.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.

© 2020 Morningstar, Inc. All rights reserved. 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 nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Copyright © 2020 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.

Standard & Poor’s 500 Composite Index (“Index”) is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. 

There have been periods when the fund has lagged the index.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

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