Ten Years on Target: What’s Worked in Target Date Funds | Capital Group

Investment Insights

June 2017

Ten Years on Target: What’s Worked in Target Date Funds

What have we learned about target date funds in the 10 years since the Pension Protection Act took effect, driving a surge in target date assets? Brad Vogt, principal investment officer of American Funds Target Date Retirement Series®, provides some insights to help plan sponsors and advisors evaluate target date funds. He discusses:

• The shift toward greater equity among many target date

• Why an excessive focus on low fees can potentially be
detrimental to participant outcomes.

• The benefits of having flexible global and multi-asset funds.

• Managing risk in the years leading up to retirement.

• What makes American Funds Target Date Series different and successful in the 10 years since its launch.

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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. 

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. 

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.