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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 OR 2

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

AMERICAN FUNDS TARGET DATE RETIREMENT SERIES®

Solid building blocks

Our Series is built from strong underlying funds

Percentage of rolling 20-year periods in which the Series’ underlying American Funds outpaced peers

The Series' underlying American Funds have outpaced their peers in 95% of rolling 20-year periods.

“The series boasts one of the target-date industry’s best rosters of underlying managers.”

MORNINGSTAR TARGET-DATE FUND SERIES REPORT
DECEMBER 31, 2018

Based on Class R-6 share results versus Lipper indexes for rolling periods through December 31, 2019. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Equity funds outpaced Lipper indexes in 99% of rolling periods. Fixed income funds outpaced in 72%.


Equity that has excelled

Our funds have a long history of beating the market while limiting downside risk, helping participants by both building and preserving wealth.


Bond funds that have diversified

Our bond funds stress low correlation to equities, which can help cushion equity downturns.

Fixed income funds that have had low equity correlation

Three-year correlation to S&P 500 index: American Funds vs. peer group average

This chart shows that the Series' underlying fixed income funds tend to be more defensive than their respective peer-group average, with all except the American Funds Mortgage Fund delivering lower three-year correlation to the S&P 500.

Source: Morningstar. Data as of December 31, 2019. Results based on Class R-6 shares. The funds’ Morningstar categories are: U.S. Open-End Intermediate Government for U.S. Government Securities Fund and American Funds Mortgage Fund; U.S. Open-End Short-Term Bond for Intermediate Bond Fund of America and Short-Term Bond Fund of America; U.S. Open-End Intermediate-Term Bond for The Bond Fund of America; U.S. Open-End Inflation-Protected Bond for American Funds Inflation Linked Bond Fund; U.S. Open-End World Bond for Capital World Bond Fund; and U.S. Open-End High Yield Bond for American High-Income Trust.


Each building block plays a role

Each underlying fund offers a different risk, return and income profile — building a series that more closely aligns with participant needs for every stage of life.

Interact with the visualization below to explore the differentiated return, risk and income characteristics of each component. 

Source: Capital Group. Data as of December 31, 2019. 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.

Based on the 30-day SEC yield, annualized standard deviation and average annual return of the underlying funds for Class R-6 shares for the three years ending December 31, 2019. Values rounded to tenths. Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. The 30-day SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities calculated in accordance with the SEC formula.

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.

OVERVIEW

What sets the American Funds Target Date Retirement Series apart?

We take an an active approach, focusing on building and preserving the wealth it takes a lifetime to earn.

Compare us to the competition

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Contact us

Our team is ready to help you help participants.

Figures shown are past results 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.

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.

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.

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.

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. Returns shown at net asset value (NAV) have all distributions reinvested. For current information and month–end results, visit americanfundsretirement.com.

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.

 

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.

Lifetime results methodology 

The 17 American Funds equity-focused funds used in our analysis (and the relevant indexes/index blends with which they were compared) are as follows: AMCAP Fund, American Mutual Fund, Fundamental Investors, The Growth Fund of America, The Investment Company of America, The New Economy Fund and Washington Mutual Investors Fund (Standard & Poor’s 500 Index); American Balanced Fund (60% Standard & Poor’s 500 and 40% Bloomberg Barclays U.S. Aggregate indexes); American Funds Global Balanced Fund (60% MSCI All Country World and 40% Bloomberg Barclays Global Aggregate indexes); Capital Income Builder (70% MSCI All Country World and 30% Bloomberg Barclays U.S. Aggregate indexes); The Income Fund of America (65% Standard & Poor’s 500 and 35% Bloomberg Barclays U.S. Aggregate indexes); Capital World Growth and Income Fund, New Perspective Fund and New World Fund (MSCI All Country World Index); EuroPacific Growth Fund and International Growth and Income Fund (MSCI All Country World ex USA Index); SMALLCAP World Fund (MSCI All Country World Small Cap Index). All relevant indexes listed are funds’ primary benchmark with the exception of Capital Income Builder, The Income Fund of America, American Balanced Fund and American Funds Global Balanced Fund. Each of these funds have two primary benchmarks, which are the indexes included in the funds’ index blend as described, rebalanced monthly.

Some of these indexes lack sufficient history to have covered the lifetime of certain funds; therefore, comparable indexes were used for those periods. For American Balanced Fund, 60% Standard & Poor’s 500 and 40% Bloomberg Barclays U.S. Government/Credit indexes were used for the period July 26, 1975 (the fund’s inception), through December 31, 1975. Results for this index blend were rebalanced monthly. For EuroPacific Growth Fund, the MSCI EAFE (Europe, Australasia, Far East) Index was used for the period April 16, 1984 (the fund’s inception), through December 31, 1987. The MSCI All Country World ex USA Index was subsequently used. For New Perspective Fund, the MSCI World Index was used for the period March 13, 1973 (the fund’s inception), through December 31, 1987. The MSCI All Country World Index was subsequently used. For SMALLCAP World Fund, the S&P Global <$3 Billion Index (formerly the S&P Global <$1.2 Billion Index) was used for the period April 30, 1990 (the fund’s inception), through May 31, 1994. The MSCI All Country World Small Cap Index was subsequently used. For Capital Income Builder, 70% MSCI World and 30% Bloomberg Barclays U.S. Aggregate indexes were used for the period July 30, 1987 (the fund’s inception), through December 31, 1987. From January 1, 1988, through December 31, 2000, and thereafter, 70% MSCI All Country World and 30% Bloomberg Barclays U.S. Aggregate indexes were used. For The Income Fund of America, 65% Standard & Poor’s 500 and 35% Bloomberg Barclays U.S. Government/Credit indexes were used for the period November 30, 1973 (the fund’s inception), through December 31, 1975.

Index definitions

The Bloomberg Barclays Global Aggregate Index is a measure of global investment grade debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

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.

Bloomberg Barclays U.S. Credit Index comprises the U.S. Corporate Index, which is a broad-based benchmark that measures the investment-grade, fixed-rate, taxable, corporate bond market. It includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers that meet specified maturity, liquidity and quality requirements.

Bloomberg Barclays U.S. Government Index includes Treasuries and U.S. agency debentures.

MSCI All Country World 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, consisting of more than 40 developed and emerging market country indexes. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. 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.

MSCI All Country World Small Cap Index is a free float-adjusted market capitalization-weighted index that is designed to measure equity market results of smaller capitalization companies in both developed and emerging markets. 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.

MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization-weighted index that is designed to measure developed equity market results, excluding the United States and Canada.

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.

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.

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.

Standard & Poor’s 500 Composite Index℠ and S&P 500® are products 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.