American Funds Insurance Series®
Variable annuities are among the fastest growing retirement investments. Despite their popularity, many people still don’t know much about them.
An annuity is a contract issued by an insurance company that can include an option to turn your assets into an income you can’t outlive.*
Annuities can be good for retirement because taxes aren’t due on variable annuity earnings until they are withdrawn. Variable annuities are designed to be retirement investments, and because of this tax-deferral feature, there is typically a 10% federal tax penalty on earnings withdrawn before age 59½.
When you buy a variable annuity contract, your money is invested in funds — similar to mutual funds — that are managed by investment professionals. Returns on your investment fluctuate as the prices of the stocks and bonds in the funds rise and fall. That’s why the annuity is called “variable.”
The five funds in the Portfolio Series are designed to help investors address specific needs such as:
The funds are aligned with two broad objectives — capital growth, or a balance of capital growth with income — to provide investors with a structured approach to pursuing specific goals as well as broad diversification.
The series includes three managed risk options that seek to manage volatility and help preserve capital during significant market declines.
Each Portfolio Series fund is a blend of individual funds within American Funds Insurance Series, which has been helping investors pursue retirement goals for more than 30 years.
Portfolio Series funds are actively monitored by a group of senior investment professionals with varied backgrounds and approaches, and decades of industry experience. They regularly review the funds’ results and holdings to keep them aligned with their objectives.
On January 1, 2020, Capital Research and Management Company will be making changes to the Portfolio Oversight Committee (POC), which oversees our multi-asset solutions. The POC will become two distinct teams:
The Portfolio Solutions Committee members will include existing POC members Alan Berro, Wesley Phoa and Andrew Suzman and additional portfolio managers Michelle Black, Samir Mathur, John Queen and Will Robbins.
The Target Date Solutions Committee members will include existing POC members Joanna F. Jonsson, James B. Lovelace, Wesley Phoa and Brad Vogt and additional portfolio managers Michelle Black, David Hoag and Samir Mathur.
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.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.
The return of principal for bond portfolios and for portfolios with significant underlying bond holdings is not guaranteed. Investments are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Investments in mortgage-related securities involve additional risks, such as prepayment risk.
Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness.
Allocations may not achieve investment objectives. There are expenses associated with the underlying funds in addition to portfolio expenses. The portfolios' risks are directly related to the risks of the underlying funds.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
The Portfolio Series funds are monitored; allocations and funds may change.
Futures may not provide an effective hedge of the underlying securities because changes in the prices of futures may not track those of the securities they are intended to hedge. In addition, the managed risk strategy may not effectively protect the portfolio from market declines and will limit participation in market gains. The use of the managed risk strategy could cause the portfolio's return to lag those of the underlying funds in certain market conditions.
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.
Past results are not predictive of results in future periods.