American Funds swept the Lipper Awards for three- and five-year periods for all 10 target date categories.2
All 17 of the underlying equity funds in our series had better-than-benchmark lifetime average annual returns as of December 31, 2016.4
American Funds Target Date Retirement Series has more underlying funds on Morningstar’s “Fantastic 45” list than any other series.
Our underlying funds have outpaced their respective Lipper peer indexes in 91% of rolling 10-year periods.6
A static equity approach treats all equities the same. This simplistic practice may not always align with investor goals.
We distinguish growth- and income-oriented equities and adjust them to better address market and longevity risk.
Class R-6 Shares as of March 31, 2017
American Funds’ John Doyle discusses fees, glide paths and evaluation tools.
Choose the Target Date Series That’s Best for Participants — this brochure highlights a five-point evaluation process and shows how our series stands up.
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. Share prices and/or returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns.
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.
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.
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. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Funds of funds' bond ratings relate to the securities held by the portfolios' underlying mutual funds; if agency ratings of those holdings differ, the security will be considered to have received the highest of those ratings.
For more information about the risks associated with each fund or underlying fund, go to its detailed fund information page or read the prospectus. Investment allocations for funds of funds may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds' risks are directly related to the risks of the underlying funds, as described herein.
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.
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.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
For the funds listed below, the investment adviser is currently reimbursing a portion of the funds' fees or expenses, without which the results would have been lower and net expenses higher.
- American Funds Corporate Bond Fund (through at least August 1, 2019)
- American Funds Retirement Income Portfolio - Moderate and American Funds Retirement Income Portfolio - Enhanced (through at least January 1, 2020)
- American Funds Emerging Markets Bond Fund and American Funds Strategic Bond Fund (through at least March 1, 2020)
The investment adviser may elect at its discretion to extend, modify or terminate the reimbursements at that time. Please see each fund's most recent prospectus for details.Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.
The Capital Group companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
Fund results for periods before a share class was sold are hypothetical. These hypothetical returns were calculated by adjusting Class A share results without a sales charge for the difference between the Class A share expense ratio and the estimated expense ratio for the share class as of the date of first sale.