American Funds 2040 Target Date Retirement Fund - R-3 | American Funds

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RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1, 2 OR 754

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

RETIREMENT TARGET DATE FUNDS

®

Share Class
Purchase Restrictions: Class R-3 shares are available in certain employer-sponsored retirement plans. See the prospectus for details.

Summary

Internal Prompt
Price at NAV $16.41 as of 7/01/2022 (updated daily)
Fund Assets (millions) $28,461.5
Target Date Solutions Committee Members
7
Expense Ratio
1.01%

Asset Mix

U.S. Equities57.9%
Non-U.S. Equities22.4%
U.S. Bonds12.1%
Non-U.S. Bonds1.4%
Cash & Equivalents
6.2%
U.S. Equities57.9%
Non-U.S. Equities22.4%
U.S. Bonds12.1%
Non-U.S. Bonds1.4%
Cash & Equivalents
6.2%
As of 5/31/2022 (updated monthly)

Fund Statistics

6.8 years
Effective Duration
2.7%
Average Yield
to Worst
1.9%
Average Coupon
% of net assets as of 3/31/2022 (updated quarterly)

Market Capitalization

78.0%
Large
17.7%
Medium
4.4%
Small
$94,048.49 Million
Weighted Average


As of 3/31/2022 (updated quarterly). Morningstar data as of 3/31/2022 (updated quarterly).

Growth of 10K

High & Low Prices

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Returns at NAV

Returns with Sales Charge

Description

Fund Objective
Depending on the proximity to its target date, which we define as the year that corresponds roughly to the year in which the investor expects to retire, the fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital. The fund will increasingly emphasize income and conservation of capital by investing a greater portion of its assets in fixed income, equity-income and balanced funds as it approaches and passes its target date. In this way, the fund seeks to balance total return and stability over time.

Fund Facts

Fund Inception 2/01/2007
Fund Assets (millions)
As of 5/31/2022
$28,461.5
Shareholder Accounts
Shareholder accounts are as of 5/31/2022
28,623
Regular Dividends Paid
Dec
Minimum Initial Investment $0
Capital Gains Paid
Dec
Portfolio Turnover (2021) 17%
Fiscal Year-End Oct
Prospectus Date 01/01/2022
CUSIP 02630T 54 8
Fund Number 2367

Returns

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Month-End Returns as of 5/31/22

Quarter-End Returns as of 3/31/22

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Volatility & Return

Read important investment disclosures

Equities

For Class R-3 Shares, this chart tracks the 10-year standard deviation
and 10-year annualized return of the equity funds
RCKTX
S&P Target Date 2040 Index
Other AF Funds
Standard Deviation as of 05/31/2022 (updated monthly) . Annualized return as of 05/31/2022 (updated monthly) .
VIEW LARGER CHART
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Yield

12-month
Distribution Rates
30-day SEC Yield
Fund at NAV 0.49% 0.70%
Fund at MOP N/A N/A
As of 5/31/2022 (updated monthly)

Valuation

Price/ Price/ Price/
Book Cash Flow Earnings
Fund 3.20 11.31 17.84
S&P Target Date 2040 Index
-- -- --
Fund as of 3/31/22. Index as of --.

Target Date Solutions Committee

Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
Michelle J. Black 2 20 27
David A. Hoag 2 30 34
Joanna F. Jonsson 7 31 33
Samir Mathur 2 9 29
Wesley K. Phoa 10 23 28
Bradley J. Vogt 10 34
Shannon Ward 1 5 30
A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

Ratings & Risk

Morningstar Rating TM


Overall Morningstar RatingTM
Funds rated(200)
3-yr. Morningstar RatingTM
(200 funds rated)
5-yr. Morningstar RatingTM
(170 funds rated)
10-yr. Morningstar RatingTM
(94 funds rated)
Overall Morningstar Risk Average
HIGH
LOW
Category Target-Date 2040
Ratings are based on risk-adjusted returns as of 5/31/2022 (updated monthly).

Risk Measures

Fund
Standard Deviation
11.29
Sharpe Ratio
0.87
For the 10 Years ending 5/31/22 (updated monthly).
American Funds
Benchmark
Morningstar
Benchmark
S&P Target Date 2040 Index
Morningstar Mod Tgt Risk TR USD
R-squared 98 97
Beta 0.99 1.35
Capture Ratio (Downside/Upside) 99/104 135/138
American Funds Benchmark for the 10 Years ending 3/31/22 (updated quarterly).
Morningstar Benchmark for the 10 Years ending 5/31/22 (updated monthly).
U.S. Treasuries/Agencies
7.0%
AAA/Aaa
2.7%
AA/Aa
0.3%
A
0.8%
BBB/Baa
1.0%
BB/Ba
0.4%
B
0.1%
CCC & Below
0.0%
Unrated
0.1%
Cash & equivalents
5.4%
% of net assets as of 3/31/2022 (updated quarterly)

Average Life Breakdown

0-4.9 Years
6.1%
5-9.9 Years
4.4%
10-19.9 Years
0.7%
20-29.9 Years
1.3%
30+ Years
0.0%
% of net assets as of 3/31/2022 (updated quarterly)

Holdings

Equities Breakdown

Equity Fund Holdings
Information technology 17.8%
Health care 12.1%
Financials 10.3%
Consumer discretionary 10.0%
Industrials 8.5%
Communication services 6.5%
Consumer staples 5.4%
Energy 3.9%
Materials 3.5%
Utilities 2.3%
Real estate 1.7%

% of net assets as of 3/31/2022 (updated quarterly)

Geographic Breakdown

United States
70.6%
Europe
11.9%
Asia & Pacific Basin
7.5%
Other (Including Canada & Latin America)
4.5%
Cash & equivalents
5.5%
% of net assets as of 3/31/2022 (updated quarterly)

Prices & Distributions

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Historical Prices Month-End

Historical Prices Year-End

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Historical Distributions as of 01/26/22

2021
Record
Date
Calculated
Date
Pay Date
Income Dividend Regular
Income Dividend Special
Cap. Gains Long-Term
Cap. Gains Short-Term
Reinvest NAV
12/27/21 12/27/21 12/28/21 $0.091 $0.00 $0.8595 $0.00 $20.41
2021 Year-to-Date: Dividends Subtotal: $0.091 Cap Gains Subtotal: $0.8595
Total Distributions: $0.9505

Fees & Expenses

Internal Prompt

Fees

Annual Management Fees 0.00%
Other Expenses 0.16%
Acquired (Underlying) Fund Fees and Expenses 0.35%
Service 12b-1 0.50%
As of each fund's most recent prospectus.
Internal Prompt

Expense Ratio

RCKTX 1.01%
Lipper Mixed-Asset Target 2040 Funds Average
--%
Fund as of most recent prospectus. Lipper Category as of -- (updated quarterly).

Resources

Prospectuses & Reports for RCKTX