Defined Contribution | American Funds

Defined Contribution

Capital Group, provider of the American Funds, is a leader in Defined Contribution (DC) investment solutions designed to optimize participant outcomes.

American Funds Target Date Retirement Series®: Voted Best in Class

American Funds was the #1 choice of retirement plan advisors as the best-in-class target date solution, according to a recent Cogent report*.


401(k) and 403(b) Retirement Plans

American Funds offers the benefits of large-plan pricing to smaller plans with fee- and commission-based share classes.


The Core Asset Categories of Defined Contribution Plans

These funds are highlighted for their alignment with prevailing defined contribution fund menu construction approaches.


Defined Contribution Insights to Drive Better Outcomes

*Cogent Wealth Reports, Retirement Plan Advisor Trends, September 2017, Market Strategies International. Methodology: There were 514 respondents to a web survey conducted July 21 to August 11, 2017. The respondents consisted of financial advisors managing defined contribution plans. Learn more about Cogent Wealth Reports, Retirement Plan Advisor Trends.

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 fund prospectuses, summary prospectusesCollegeAmerica Program Description and ABLEAmerica Program Description which can be obtained from a financial professional and should be read carefully before investing. 

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. 

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. 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. 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. 

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. 

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.