American Funds Model Portfolios | American Funds

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Focus on the goals
that matter most.

Why Capital Group?

I can deliver better outcomes for different goals.

A client preparing for retirement in 30 years has different needs than one reaching the end of her career. Our 13 model portfolios can help you align their investments with their individual goals.

Client Goals

Align investor goals with portfolio objectives.

Find objective-based portfolios that match your clients’ goals.

investor goals

build wealth

build wealth

spend wealth

build wealth

conserve wealth

build wealth

Investment Objectives

Growth

Long-term growth of capital

Growth and income

Long-term growth of capital and income

Distribution income

Current income, long-term growth of capital and conservation of capital

Preservation and income

Current income and capital preservation

Our Results

Better long-term outcomes at different risk levels.

For the latest 20-year period, each of our model portfolios whose underlying funds were in existence for the entire period would have delivered better returns, often with less volatility than hypothetical active and passive index portfolios. Read important investment disclosure.

Click the blue dots to see portfolio results

Return
Volatility
Average
annual
return (%)
Volatility (%)

Class F-2 shares for the 20 years ended 12/31/17

Global Growth Model Portfolio

  • American Funds model portfolios
  • Index Blends for American Funds Model Portfolios1
  • Active Models2
Return Volatility
9.7% 15.4%
7.4% 16.3%
7.4% 16.3%

American Funds Model Portfolios results

The Capital Group Portfolio Oversight Committee developed these model portfolios on 5/9/11. Results and data for the model portfolios shown are based on the current underlying fund allocations rebalanced monthly. For model portfolio results that reflect changes to the underlying fund allocations over its lifetime, see details in a model portfolio for every investor.

Source: Capital Group. These four model portfolios were selected because all of their underlying funds had at least 20-year lifetimes. Volatility is calculated at net asset value using annualized standard deviation (based on monthly returns), a measure of how returns over time have varied from the mean; a lower number signifies lower volatility. Standard deviation and average annual total returns are weighted averages for the underlying funds in the model allocations or indexes in the index blends.
*Rolling 10-year success rates are a percentage of the time the model outpaced its index/index blend over rolling periods, on a monthly basis, since 2/19/88, the inception date of American High-Income Trust, the model's youngest underlying fund. Volatility comparisons are based on the standard deviations for the models versus the appropriate index/index blend. Rolling 10-year standard deviations are annualized measuring the standard deviation of monthly returns (also annualized).
1Index/Index blends for American Funds Model Portfolios are those that the Portfolio Oversight Committee believes most closely approximate the investment universe of a given model portfolio. Global Growth: MSCI ACWI; Growth: 70% S&P 500/30% MSCI ACWI ex USA; Growth and Income: 50% S&P 500/30% MSCI ACWI ex USA/20% Bloomberg Barclays U.S. Aggregate; Conservative Growth and Income: 40% S&P 500/15% MSCI ACWI ex USA/30% Bloomberg Barclays U.S. Aggregate/15% Bloomberg Barclays Corporate High Yield 2% Issuer Capped Index. These indexes are unmanaged, and their results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. For more information and the underlying funds' primary benchmarks see the the fund details pages.
2Active models are based on Morningstar Fee Level Groupings, which only include funds with no loads and exclude American Funds. The asset categories selected were categories advisors typically use to build portfolios — U.S. equity: All U.S. Large Cap; Non-U.S. equity: All Foreign Large Cap; and U.S. fixed income: All Intermediate Bond. For each category, we took the assets of each fund in a given month and constructed a weighted average of their returns based on how many dollars in the fund relative to the category as a whole. To build the hypothetical active portfolios, we weighted the fund categories to create mixes of fixed income and equity — in 10% increments — that are comparable to the four American Funds Model Portfolios shown. The equity percentage of the hypothetical active portfolios are 2/3 U.S. equity and 1/3 non-U.S. equity and the bond percentage is 100% U.S. fixed income. Results shown for these hypothetical active portfolios reflect fund changes within each category over the 20-year period.

Our portfolios

A model portfolio for every investor.®

Click on your client’s objective to learn more about our 13 model portfolios. For more information on the series, download our brochure.

Our Value

We aim to deliver more to your clients.

5.6x

more value than their benchmark indexes.*

$0

in overlay fees for our model portfolios; just the underlying fund fees.

*Based on Class F-2 excess returns over cumulative expenses for a hypothetical investment for the 20-year period ended 3/31/18. Index/index blends for American Funds Model Portfolios are those that the Portfolio Oversight Committee believes most closely approximate the investment universe of a given model portfolio. The excess returns over cumulative expenses for each of the individual model portfolios compared with the index/index blends were – Global Growth: 7.9x; Growth: 7.2x, Growth and Income: 5.9x; and Conservative Growth and Income: 1.5x. Click here for index/index blend descriptions.


Our Team

Built by experienced and proven portfolio managers.

The seven members of our Portfolio Oversight Committee are experienced senior portfolio managers who have managed many of the model portfolios’ underlying funds.

$146.4B

in multifund portfolio construction and monitoring.

30 years

average investment experience, including underlying fund management.

$387.9B

in multi-asset fund management by the largest U.S. multi-asset manager.*

*As of 12/31/17. Source: Morningstar

Learn more about our approach

Unless otherwise indicated, data is as of 6/30/18. All values are U.S. dollars. Largest multi-asset manager calculated by Capital Group is based on data (total net assets of U.S. open-end mutual funds in all U.S. Fund Allocation categories, excluding funds of funds) from Morningstar.

Stay in the know.

Keep up-to-date on the results and allocations of your clients’ model portfolios so they know what’s happening to their investments with our quarterly commentary.


See our other 11 portfolios of funds with similar allocations:

American Funds Portfolio Series SM

American Funds Retirement Income Portfolio Series SM

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Contact us

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(800) 421-9900, EXT 2

Figures shown are past results for Class F-2 shares with all distributions reinvested 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. View returns for the American Funds Model Portfolios.


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 funds’ prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.


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.


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.


The funds are actively managed so holdings will change. Cash and equivalents includes short-term securities, accrued income and other assets less liabilities.


Investment allocations may not achieve model objectives and actual underlying fund allocations may vary. There are expenses associated with the underlying funds in addition to any fees charged by the intermediary. Additionally, the intermediary includes cash allocations in the model, which are not reflected here. The model’s risks are directly related to the risks of the underlying funds as described below.


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 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. Bond prices and a bond fund's share price will generally move in the opposite direction of interest rates. Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government. 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 results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. Expense ratios are as of fund prospectuses available at the time of publication.


Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for estimated annual expenses. Results for certain funds with an inception date after 8/1/08, also include hypothetical returns because those funds' Class F-2 shares sold after the funds' date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.