Target Date Funds
Building a best-in-class target date retirement series.
Superior long-term results
Ranking among the highest in the category.1
Morningstar category percentile return rankings
1 Results as of September 30, 2019. 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. 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. When applicable, investment results reflect expense reimbursements, without which results would have been lower.
All 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.
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The allocations shown reflect the funds' target allocations as of the most recent 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 above. Changes in the equity allocation of the underlying equity-income and balanced funds may affect the overall equity exposure in the target date funds. Allocation percentages and underlying funds are subject to the oversight committee's discretion and will evolve over time. Underlying funds may be added or removed during the year. For quarterly updates of fund allocations, visit americanfundsretirement.com.
A different approach for better outcomes.
1.Meaningful equity exposure throughout retirement to deliver capital growth potential.
2.Emphasizes dividend income to manage volatility while maintaining equity exposure.
3.Fixed income strategies seek income, capital preservation and inflation protection.
2 shown reflect the funds’ target allocations for January 1, 2018. 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 shown. Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee's discretion and may change over time. Changes in the equity allocation of the underlying equity-income and balanced funds may affect the overall equity exposure in the target date funds. For quarterly updates of fund allocations, visit americanfundsretirement.com.
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Source: Capital Group. As of December 31, 2018. For funds of funds, figures are based on holdings of the underlying funds as of date shown.
2Cash & equivalents includes short-term securities, accrued income and other assets less liabilities. It may also include investments in money market or similar
funds managed by the investment adviser or its affiliates that are not offered to the public.
Source: Capital Group.
As of September 30, 2018.
"The series boasts one of the target-date industry's best rosters of underlying managers."
— STRONG MANAGERS BENEATH THE SURFACE AND LOW FEES MAKE THIS SERIES A GOOD PICK, MORNINGSTAR, FEBRUARY 4, 2019
Our strong underlying funds have consistently outpaced their peers.3
Recognized for our results.
Morningstar: Our target date series has "Terrific" strategies
Six of the underlying equity strategies in the American Funds Target Date Retirement Series were recognized on the Morningstar® “The Terrific 28” list.
Source: Morningstar, “FundInvestor: The Terrific 28,” by Russel Kinnel, May 2019. Morningstar’s criteria for the “Terrific” list include: expense ratio in cheapest quintile, manager investment of more than $1 million in the fund, Morningstar Risk rating below the High level, Morningstar Analyst Rating of Bronze or higher, Parent rating of Positive, returns above the fund’s benchmark over the manager’s tenure for a minimum of five years, must be a share class accessible to individual investors, and no funds of funds. Each fund’s results were evaluated based on share classes that were accessible to individual investors. Morningstar evaluated American Funds’ Class A shares because they are most widely held by individual investors. American Funds Target Date Retirement Series invests in Class R-6 shares of the underlying American Funds. According to Kinnel’s report, American Funds’ “institutional and clean share classes would have gotten more funds through the tests.” Not all six American Funds strategies in the list are each in each target date fund. Underlying funds may change over time. The list’s criteria have changed over the years.
Lipper: Our target date series earns multiple awards
Seven American Funds target date funds won Lipper Fund Awards from Refinitiv for five-year periods. Read more about the awards.
From Refinitiv Lipper Awards, ©2019 Refinitiv. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. Based on Refinitiv’s definition of consistently strong risk-adjusted returns compared with peers. The 2019 Lipper Fund Awards from Refinitiv were awarded on March 7, 2019 and were based on Class R-6 shares for the five-year period ended November 30, 2018.
Cogent: Plan advisors recommend our target date funds most often
American Funds was the #1 choice of retirement plan advisors as the most recommended target date solution, according to a recent Cogent Syndicated report.
Cogent Syndicated Retirement Plan Advisor Trends, October 2019. Methodology: There were over 500 respondents to a web survey conducted in August 2019. The respondents consisted of financial advisors managing defined contribution plans. Learn more about Cogent Syndicated Retirement Plan Advisor Trends.
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