Our Target Date Retirement Blend Series seeks to preserve the design principles of our all-active approach while thoughtfully integrating passive vehicles to obtain market exposures with the potential to lower tracking error and overall costs. It is designed to build and preserve wealth, using our established glide path for strategic asset allocation direction, as well as dynamic bottom-up flexibility and security selection via active underlying funds.
Design principles
A focus on participant objectives
Our Series focuses on the complex and evolving mix of objectives (such as growth and capital preservation) that participants want.
Combination of active and passive
Passive funds are integrated with actively managed Capital Group funds across major asset classes including U.S. and non-U.S. equities and fixed income.
Research-driven allocations
Capital Group’s multidimensional portfolio construction methodologies seek to deliver better outcomes through strategic asset allocation research and by harnessing underlying portfolio flexibility, where applicable, among other techniques.
Our glide path within a glide path
Our target date blend Series adjusts both the proportion and types of fixed income and equities over time as it seeks to generate returns and manage risk
Allocation by objective and asset type
Source: Capital Group. The target allocations shown are as of June 30, 2025, 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 characteristics statement. Underlying funds may be added or removed during the year. Passive funds are managed to deliver a pattern of results consistent with an index, unlike Capital Group funds, which are managed to specific objectives, as illustrated. For that reason, within our investment process we do not categorize passive funds to Capital Group’s investment framework.
Our Blend approach
A target date blend solution that gives participants access to an objective-based glide path that aligns with their goals and has the potential to outpace markets with a focus on lower costs
Active oversight and funds
Capital Group’s active portfolio construction and underlying funds seek to deliver superior outcomes relative to benchmarks with lower risk
Security selection
The ability to pursue excess return from active investment decisions
Glide path
A strategic asset allocation that evolves over time
Flexibility
The ability to tactically deviate from strategic asset allocations
Passive complement
Passive funds seek to efficiently increase investors’ breadth of holdings at a low cost
Reduce tracking error
Seeks to minimize differences in returns versus the benchmark
Lower overall costs
Seeks to lower total expense ratios while providing broad market exposure
Broad exposure
Exposure across market caps, geography, ratings and subsectors complement active holdings
A focus on maximizing active exposure for higher return potential
Active allocation as a % of vintage: Capital Group Target Date Retirement Blend Series and four significant peers
Source: Capital Group, using Morningstar data as of December 31, 2024. Peers included in the analysis are the CIT vehicles of the JPMorgan SmartRetirement Blend, T.Rowe Price Retirement Blend and Principal LifeTime Hybrid series. Mutual fund vehicle was used for Fidelity Freedom Blend due to more complete data availability. These peers were selected because they are the four largest blend/hybrid target date series by assets under management as of December 31, 2024, according to SWAY Research. To calculate the range and average datapoints, the allocation data for the Capital Group Target Date Retirement Blend Series plus the four peers was combined and the minimum, maximum and average values were plotted. The area between the minimum and maximum values is shaded. Data shown reflects all existing vintages for the series presented, with notable exceptions being the lack of 2015 and 2010 vintages for JPMorgan SmartRetirement Blend and the lack of a 2010 vintage for Principal LifeTime Hybrid.
Our Series emphasizes active exposure along the glide path relative to peers and the difference is especially noticeable in further-dated vintages with a growth orientation. We believe that a higher allocation to actively managed, equity-focused funds can seek to maximize the capital appreciation potential that is so critical to younger participants.
Rigorous passive selection process
Qualitative metrics
Established providers track desired exposures with strong operational resources, research capabilities and deep experience.
Qualitative screening
Metrics include fees, returns, tracking error and relative drawdown.
Target Date Solutions Committee
Our Target Date Solutions Committee, which oversees the Series, brings a diversity of experience and draws on the fundamental research and quantitative resources of the global Capital Group team.
Portfolio Manager
Portfolio Manager
Portfolio Manager
Solutions Portfolio Manager
Solutions portfolio manager at Capital Group
Portfolio Manager
Equity portfolio manager at Capital Group
Portfolio Manager
Learn more about how our Blend approach is differentiated in the industry
