We believe in taking a long-term view. 

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LONG-TERM APPROACH

Because time matters more than timing.

At Capital Group, home of American Funds, we follow a long-term approach because we believe it’s the best way to help investors achieve their financial goals.    


Building retirement savings takes time. Our commitment to long-term investing takes many forms, and our culture and system reinforce them all.


Long term means it pays to put in the time.

Our investment professionals’ compensation is tied to short, medium and long-term results, with a greater focus on the long term.   


Why is that important? Because longer measurement periods mean more time for well-researched, high-conviction investments to perform well. Because they have time to build results, our investment professionals seek to avoid taking outsized risks in pursuit of short-term results. 

As of December 31, 2018.

On average, the equity-focused American Funds hold their investments for 3.14 years, whereas their peers hold their investments for 1.82 years, based on the equal-weighted blended averages across each of the 18 equity-focused American Funds’ respective Morningstar categories. Please see the bottom of the page for a list of each fund’s respective Morningstar category.


Long term means experience.

All of our portfolio managers have more than 10 years of industry experience. 


Almost nine out of 10 have at least 20 years in the industry, and more than a third have over three decades of experience.

As of December 31, 2018. 

Many of our portfolio managers have experienced multiple market crises and have kept cool heads during bumpy rides.

As of March 31, 2019.


Long term means there is power in being private. 

At public companies, quarterly profits often drive short-term thinking.        


Capital Group is a privately held firm. So rather than being distracted by what’s good for "the Street," we can focus on what’s best for long-term investors. We believe that being privately held for more than 85 years has helped maintain our investor-focused culture.


Long term means prioritizing long-term superior results.

Our long-term thinking has gotten results for our investors for almost nine decades.


For over 85 years, we have managed multiple investment strategies through various investment vehicles. And while investment results vary, the equity-focused American Funds have beaten their Lipper peer indexes in 89% of 10-year periods and 95% of 20-year periods.1

Click for more information on the results of the American Funds equity, fixed income and multi-asset funds.

1Based on Class R-6 share results for rolling periods through December 31, 2018. 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). Expenses differ for each share class, so results will vary. 

Our target date series' return rankings vs. competitors (Class R-6 shares)

As of June 30, 2019

Source: Morningstar and Capital Group, using data obtained from Morningstar.

Percentile rankings for one-, three- and five-year periods calculated by Morningstar. Ten-year rankings calculated by Capital Group, using data obtained from Morningstar. Rankings are based on the funds' average annual total returns (Class R-6 shares at net asset value) within the applicable Morningstar categories. The Morningstar rankings do not reflect the effects of sales charges, account fees or taxes. Past results are not predictive of results in future periods. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The Morningstar category average includes all share classes for the funds in the category. While American Funds R-6 shares do not include fees for advisor compensation and service provider payments, the share classes represented in the Morningstar category have varying fee structures and can include these and other fees and charges resulting in higher expenses and lower results. The category includes both active and passive target date funds, as well as those that are managed both "to" and "through" retirement. Approximately one-third of the funds within the 2000 -2010 category have a target date of 2005. All target date funds began on February 1, 2007, except for the 2055 fund, which began on February 1, 2010, and the 2060 fund, which began on March 27, 2015.

Our beliefs

Your goals power ours.

We have four core beliefs central to helping you succeed.

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Find your solution. 

Your company is just as unique as the people who work there. We offer an array of innovative client solutions designed to meet your employees’ needs.

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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely.

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 mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants’ plan provider or employer.

American Funds 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.

Although the target date funds are managed for investors on a projected retirement date time frame, the funds' allocation strategy does not guarantee that investors' retirement goals will be met. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. American Funds investment professionals manage the target date fund's portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date.

Each target date fund is composed of a mix of the American Funds and is subject to the risks and returns of the underlying funds. Underlying funds may be added or removed during the year. Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. 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. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 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. Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government. 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.

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.

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.

All Capital Group trademarks are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

American Funds Distributors, Inc., member FINRA.

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