Investment insights from Capital Group
Funds were vetted with 8 tests assessing returns, expenses, risk, analyst ratings and more. Less than half of 1% made the final cut.
Of the four largest target date series, American Funds offers the most "Thrilling" funds as underlying strategies in its target date vintages.†
*Source: Morningstar, "Fund Spy: The Thrilling 34," by Russel Kinnel, December 2019. Morningstar’s screening took into consideration expense ratios, manager ownership, returns over manager’s tenure, and Morningstar Risk, Analyst and Parent ratings. The universe was limited to share classes accessible to individual investors with a minimum investment no greater than $50,000 and did not include funds of funds. Class A shares were evaluated for American Funds. American Funds Target Date Retirement Series invests in Class R-6 shares of the underlying American Funds. Not all eight American Funds strategies are in each target date fund. Underlying funds may change over time. The list's criteria have changed over the years. Visit www.morningstar.com for more details.
†Not all eight funds listed in the “The Thrilling 34” list are in each target date fund. Underlying funds may change over time.
Each target date fund is composed of a mix of American Funds and is subject to the risks and returns of the underlying funds. Underlying funds may be added or removed during the year. 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 that corresponds roughly to 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 approximately 30 years after it reaches its target date.
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.
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