At Capital Group, we understand that investors have different goals and face different financial risks before and during retirement. This is why we offer retirement solutions that focus on what matters most to investors on their retirement journey. As a global leader in asset management we are dedicated to achieving superior, long-term results, enabling investors to achieve their goals throughout retirement.
Retirement changes everything
Solving for retirement means addressing a continuum of different needs over the long term. At Capital Group, we believe in managing assets to optimize outcomes for investors as their needs change over the different stages of life.
For illustrative purposes only. The information provided is not intended to be comprehensive or to provide advice.
Focus on investor goals when we build portfolio solutions
At Capital Group, our investment strategy begins by aligning investors’ assets to their goals throughout retirement. These goals translate into investment objectives to match investors’ risk tolerance and return requirements at each life stage, with a careful balance of growth, income generation and preservation of capital.
Building a retirement target date series for Korean investors
Drawing on the investment strategy and characteristics of our American Funds Target Date Retirement Series (AFTD), Capital Group designed a retirement solution for a major Korean institutional client to meet the unique needs of their investors.
Investments in Korea retirement target date funds are allocated among a diversified portfolio of stocks and bonds. Investors select a target date fund, typically the one nearest their anticipated retirement date. Over time, that fund's mix of stocks and bonds will shift toward more conservative investments. This gradual shift over time is called a "glide path."
Capital Group Korea retirement target date series glide path
Here’s how it works:
Significant stock investments throughout the lifetime of the target date fund can help manage the risk of investors outliving their savings in retirement.
An increased emphasis on bonds as the investors near their retirement date can help manage the risk of market declines.
The fund is managed beyond retirement, so the investors could feasibly use a single fund for decades.
Past results are not a guarantee of future results. The Korean Retirement Income Fund Series are not registered for sale outside of Korea. American Funds are not registered for sale outside of the United States. This information has been provided to illustrate how Capital Group delivers multi-asset solutions.
As at 31 December 2019. Fund category target allocations shown are as of the Korean Target Date Retirement Series glide path, subject to the Global Solutions Committee’s discretion and will evolve over time.
This material is not intended to provide investment advice or be considered a personal recommendation.
The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
Past results are not a guide to future results.
If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease.
Depending on the strategy, risks may be associated with investing in fixed income, derivatives, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
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