The Target Date Landscape and Glide Path Construction | Capital Group

Investment Insights

January 2018

Video: The Target Date Landscape and Glide Path Construction

For over 10 years, target date funds have been a Qualified Default Investment Alternative (QDIA) for defined contribution plans. Brad Vogt, American Funds portfolio manager and principal investment officer for American Funds Target Date Retirement Series® joined other investment professionals in an Asset TV Masterclass video to discuss target date funds, including:

  • Key trends and developments over the past 10 years.
  • How a dynamic glide path within a glide path can help investors at each stage of life.
  • Why there is no passive choice in target date funds.

Watch the Masterclass video on Asset TV

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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. 

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. 

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. 

Past results are not predictive of results in future periods.

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