AMERICAN FUNDS TARGET DATE RETIREMENT SERIES®

Participants work hard for their dreams. So do we.


A history of strong results

Our Series has outpaced its peers over the long haul.


Our philosophy: Build and preserve wealth

Our Series is designed to evolve alongside participants, seeking appropriate levels of market exposure and wealth preservation for each stage of life.

Our Series is designed to evolve alongside participants, seeking appropriate levels of market exposure and wealth preservation for each stage of life (early career, transition, and in retirement).

This chart illustrates our strategic glide path shifting from a higher equity to a higher fixed income allocation over time while also explaining the shift in philosophy from wealth creation to wealth preservation.

The allocations shown are as of the funds’ most recent prospectuses. The funds’ investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below the allocations set forth above. Allocation percentages and underlying funds are subject to the Target Date Solutions Committee’s discretion and will evolve over time. Underlying funds may be added or removed during the year. Changes in the equity allocation within the underlying equity-income and balanced funds may affect the overall equity exposure in the target date funds. For quarterly updates of fund allocations, click here

The asset allocations shown are the average of the underlying fund equity and fixed income exposures based on the fund allocations as disclosed in the most recent target date series prospectus. The funds' investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below the allocations set forth in the prospectus. Underlying fund allocations are subject to the Target Date Solutions Committee's discretion and will evolve over time. Underlying funds may be added or removed during the year. For quarterly updates of fund allocations, click here


Active at every step

Our Series takes a fully active approach, mixing asset allocation decisions with bottom-up flexibility and a focus on individual security selection.

The three elements of our approach:

Security selection

The additional return generated from the decisions of individual investment managers of the underlying funds

Flexibility

The additional return generated by the bottom-up asset allocation and geographic exposure decisions of our global and multi-asset fund managers

Glide path

The additional return generated by the Series’ strategic asset allocation decisions vs. the index

Working for participants at every stage of life

The simulation below illustrates how the elements of our active approach would have contributed to market-beating results.


Three factors driving our success

UNDERLYING FUNDS

Solid building blocks

Our funds have delivered peer-beating results and held up well in down markets.

LOW FEES

Delivering value at a low cost

We encourage a focus not just on expenses but on value delivered to participants.

GLIDE PATH

A distinctive approach

Our glide path is different. While our Series changes the mix between stocks and bonds, it also changes the types of assets held. This is designed to better align with participant needs over time.

Making a difference

Our Target Date Solutions Committee brings a diversity of experience and draws on the fundamental research and quantitative resources of the global Capital Group team. 

Global research offices

 

About Capital Group

Capital Group has a distinctive, long-term global investment approach that relies on fundamental research. Privately held since its founding in 1931 and with more than $1.7 trillion under management, the firm has more than 400 investment professionals worldwide.*

*As of March 31, 2020.
 
This is a chart of Capital Group's 12 global research offices: San Francisco, Los Angeles, Toronto, New York, Washington D.C., London, Geneva, Mumbai, Singapore, Hong Kong, Tokyo and Beijing.

Global research offices 

Global research offices:

Los Angeles

Geneva

San Francisco

Mumbai

New York

Beijing

Washington, D.C.

Hong Kong

Toronto

Tokyo

London

Singapore

 

 

Compare us to the competition

View our funds

Contact us

Our team is ready to help you help participants.

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 are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investments in mortgage-related securities involve additional risks, such as prepayment risk.

Each target date portfolio is composed of a mix of underlying funds and is subject to the risks and returns of those funds. Underlying funds may be added or removed during the year. 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. 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 manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.

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 directly related to the risks of the underlying funds.

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.

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.

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.

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.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

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.

©2021 Morningstar, Inc. All Rights Reserved. Except for Lipper rating information, the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.

Important investment disclosures

Figures shown are past results for Class R–6 shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns. Returns shown at net asset value (NAV) have all distributions reinvested. For current information and month–end results, visit americanfundsretirement.com.

Capital Group offers a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of advisor compensation and service provider payments. Because Class R-6 shares do not include any recordkeeping payments, expenses are lower and results are higher. Other share classes that include recordkeeping costs have higher expenses and lower results than Class R-6.

For the American Funds 2065 Target Date Retirement Fund share class(es) listed below, the investment adviser is currently reimbursing a portion of other expenses, without which the results would have been lower and net expense ratios higher if shown.

  • Class R-6 (through 01/31/21)

 

The investment adviser may elect at its discretion to extend, modify or terminate these reimbursements at that time. Please see the fund's most recent prospectus for details.

When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower and net expense ratios higher if shown. This information is provided in detail in the shareholder reports. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.

Certain share classes were offered after the inception dates of some funds. Results for these shares prior to the dates of first sale are hypothetical based on the original share class results without a sales charge, adjusted for typical estimated expenses.

  • Class R-6 were first offered on 5/1/2009.

 

Results for certain funds with an inception date after the share class inception also include hypothetical returns because those funds' shares sold after the funds' date of first offering. View dates of first sale and specific expense adjustment information.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. Please see capitalgroup.com for more information.

Morningstar categories
 

American Funds Target Date 2010

Morningstar Target Date 2000–2010

American Funds Target Date 2015

Morningstar Target Date 2015

American Funds Target Date 2020

Morningstar Target Date 2020

American Funds Target Date 2025

Morningstar Target Date 2025

American Funds Target Date 2030

Morningstar Target Date 2030

American Funds Target Date 2035

Morningstar Target Date 2035

American Funds Target Date 2040

Morningstar Target Date 2040

American Funds Target Date 2045

Morningstar Target Date 2045

American Funds Target Date 2050

Morningstar Target Date 2050

American Funds Target Date 2055

Morningstar Target Date 2055

American Funds Target Date 2060

Morningstar Target Date 2060+

 

Index definitions

Custom indexes for the American Funds Target Date Retirement Series were established by Capital Group. They are based on a combination of the S&P 500 Index (representing U.S. equity), MSCI ACWI ex USA (representing non-U.S. equity) and Bloomberg Barclays U.S. Aggregate Index (representing bonds). The custom index weights were calculated based on an analysis of the 10-year monthly average asset class exposure (as of December 31, 2014) of the underlying American Funds that comprise the target date series. (For underlying funds with less than 10 years of history, lifetime asset-allocation averages were used.) Custom index returns were based on the weighted returns of the three indexes.

The Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

The MSCI All Country World Index (ACWI) ex USA Index is a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed and emerging market country indexes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or taxes.

The S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

The S&P Target Date Series comprises eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date.

Source attribution 

Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. 

The MSCI ACWI ex USA is a product of MSCI. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. 

The S&P 500® and the S&P Target Date® Series are products of of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2020 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC. 

For quarterly updates of fund allocations, click here