American Funds Insurance Series | Capital Group

American Funds Insurance Series®

Capital Group established the American Funds Insurance Series in 1984. With more than $130 billion in assets, it is one of the largest managers1 of assets for variable annuities and offers a suite of 28 insurance-dedicated funds. We believe in the value that protected lifetime income can play in an overall retirement strategy.

 

A variable annuity is a contract between you and an insurance company that can turn your assets into a protected retirement income that lasts your lifetime. It may help:

  • Provide a reliable income stream that you won't outlive. 
  • Defer taxes on earnings — enabling your money to grow at a faster rate. 
  • Diversify your portfolio with a range of investment options underlying the annuity — typically mutual funds that invest in stocks, bonds, money market or a combination of all three.
  • Leave a financial legacy to your beneficiaries through a guaranteed death benefit.

Talk with a financial professional today about the important role that a variable annuity could play to protect your income as part of your retirement strategy. 

Benefits

  • Aligned with investor success — We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. American Funds Insurance Series portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.2
  • The Capital System℠ — The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of The Capital System.
  • Superior outcomes — American Funds Insurance Series equity funds have beaten their comparable Lipper indexes in 91% of 10-year periods and 100% of 20-year periods.3 Our fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.4 We strive to keep management fees competitive. Over the past 20 years, most funds’ fees have been below industry averages.5

Availability

  • When selecting long-term investments for variable annuity and variable life insurance products, many investors choose contracts that offer American Funds Insurance Series funds.
  • American Funds Insurance Series funds are only available in insurance company products. For more information, please see the provider information below or contact your financial professional.

American Funds Insurance Series Funds


American Funds Insurance Series – Managed Risk Funds

 


American Funds Insurance Series — Portfolio Series℠

The five funds in the Portfolio Series are designed to help investors address specific needs such as:

  • Building retirement savings
  • Planning for retirement distributions
  • Preserving long-term assets

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, which will oversee American Funds Portfolio Series, American Funds Retirement Income Portfolio Series and other solutions, including model portfolios; and 
  • The Target Date Solutions Committee, which will oversee American Funds Target Date Retirement Series and American Funds College Target Date Series. 

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.


Trusted providers

American Funds Insurance Series funds are available in variable annuities through the following insurance companies:

Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge. The annuity's value fluctuates with the market value of the underlying investment options, and all assets accumulate tax deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value. Guarantees, including optional benefits, are subject to the claims-paying ability of the issuing insurance company.

1 Simfund VA, Capital Group. As of 12/31/18.

2 Portfolio manager experience as of the American Funds Insurance Series prospectus dated May 1, 2019.

3 Based on Class 1 share results for rolling periods through December 31, 2018. Periods covered are the shorter of the fund’s lifetime or since the inception date of the comparable Lipper index or average. The comparable Lipper indexes are: Global Funds Index (Global Growth Fund, Global Growth and Income Fund), Growth Funds Index (Growth Fund), International Funds Index (International Fund), Emerging Markets Funds Index (New World Fund), Growth & Income Funds Index (Blue Chip Income and Growth Fund, Growth-Income Fund), Balanced Funds Index (Asset Allocation Fund), Core Bond Funds Index (Bond Fund), Global Income Funds Index (Global Bond Fund), High Yield Funds Index (High-Income Bond Fund), Ultra-Short Obligation Funds Index (Ultra-Short Bond Fund) and General U.S. Government Funds Index (U.S. Government/AAA-Rated Securities Fund). The Lipper Global Small-/Mid-Cap Funds Average was used for Global Small Capitalization Fund. Lipper source: Thomson Reuters Lipper. There have been periods when the fund has lagged the index.

4 Based on Class 1 share results as of December 31, 2018. Four of our five fixed income funds showed a three-year correlation below 0.1. Standard & Poor’s 500 Composite Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction.

5 Based on management fees for the 20-year period ended December 31, 2018, versus comparable Lipper categories, excluding funds of funds.


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.

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.

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.

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.