A glide path is a visual representation of how the investments in each of our funds change over time based on the target retirement date. Depending on the proximity to its target date, the fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital. Learn more about the benefits of our glide path.
The target allocations shown are as of March 31, 2022 and are subject to the oversight committee's discretion. The investment adviser anticipates assets will be invested within a range that deviates no more than 10% above or below the allocations shown in the prospectus/characteristics statement. Underlying funds may be added or removed during the year. Visit capitalgroup.com for current allocations.
The asset mix seeks to balance risk and return over time by diversifying investments across asset types such as stocks and bonds. Stocks have the highest long-term return potential while bonds can help manage the risk of market declines.
As of 4/30/2022
One fund. Many benefits. (Brochure)
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. 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. 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 continue to manage each portfolio for approximately 30 years after it reaches its target date.
The following identifies allocation by investment objective and the underlying funds for each.
AMCAP Fund®
6.8%
American Funds Global Insight Fund℠
3.9%
EuroPacific Growth Fund®
1.1%
The Growth Fund of America®
6.8%
The New Economy Fund®
3.8%
New Perspective Fund®
6.8%
New World Fund®
2.4%
SMALLCAP World Fund®
6.3%
American Mutual Fund®
7.6%
Capital World Growth and Income Fund®
7.1%
Fundamental Investors®
7.4%
International Growth and Income Fund℠
0.7%
The Investment Company of America®
3.9%
Washington Mutual Investors Fund℠
7.1%
Capital Income Builder®
3.2%
The Income Fund of America®
4.3%
American Balanced Fund®
8.1%
American Funds Global Balanced Fund℠
4.9%
American Funds Inflation Linked Bond Fund®
1.0%
U.S. Government Securities Fund®
6.8%
As of 4/30/2022
(2:31)
See how target date funds work and why they may be the right choice for you.
For fund results or for information about your retirement plan, talk with your plan provider or employer, or visit your plan’s website.
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.
Investments in mortgage-related securities involve additional risks, such as prepayment risk.
Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.
Allocations may not achieve investment objectives. The portfolios' risks are related to the risks of the underlying funds as described herein, in proportion to their allocations.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.
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. 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. 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 continue to manage each portfolio for approximately 30 years after it reaches its target date.
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.
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.
Portfolios are managed, so holdings will change.
Totals may not reconcile due to rounding.
Use of this website is intended for U.S. residents only.
American Funds Distributors, Inc.
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.