Detailed Fund Information
American Funds 2010 Target Date Retirement Fund® (retirement target date fund)
Updated March 7, 2014, 3:16PM Pacific time
|Net Asset Value (NAV)||$10.31|
|Maximum Offering Price (MOP)||$10.94|
(All prices are subject to revision.)
Historical Prices & Distributions
Ticker Symbols & Fund Numbers
|CUSIP Number||02630T 10 0|
|Fund Objective||Depending on the proximity to its target date, the fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital.|
January 1, 2014 (updated annually, at minimum)
The investment adviser anticipates the fund will invest its assets within a range that deviates no more than 10% above or below the allocation set forth above.
|Minimum Initial Investment||$250|
|Shareholder Accounts (aggregated for all share classes; updated monthly)||20,700|
|Regular Dividends Paid||December|
|Capital Gains Paid||December|
|Fund Inception||February 1, 2007|
The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
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. Results shown at net asset value have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Share price and return will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Returns with sales charge for Class A shares reflect payment of the 5.75% maximum sales charge at the beginning of the stated periods. Definitions and other important legal information about these prices and returns are shown below.
Rates of Return*
|Average Annual Total Returns|
|1 yr||3 yrs||5 yrs||10 yrs||Fund Lifetime|
|February 28, 2014 (most recent month-end)|
|With sales charge||4.71%||6.04%||13.16%||||3.58%|
|December 31, 2013 (most recent quarter-end)|
|With sales charge||5.74%||6.36%||10.20%||||3.43%|
|American Funds 2010 Target Date Retirement Fund (net)||0.71%|
|American Funds 2010 Target Date Retirement Fund (gross)||0.81%|
|Lipper Mixed-Asset Target 2010 Funds Average||0.99%|
12-Month Distribution Rates‡
As of January 31, 2014 (updated monthly)
|With sales charge||2.00%|
Annualized 30-Day SEC Yield‡
As of January 31, 2014 (updated monthly)
|With sales charge||1.85%|
Assets and Portfolio Turnover (for fiscal years)
|Fiscal Year||Fund Assets (millions)||Portfolio Turnover|
Assets shown are for combined share classes.
Underlying Fund Allocation
as of December 31, 2013 (updated quarterly)
|Underlying Fund Allocation**|
|Growth Funds: 5.0%|
|The Growth Fund of America®||1.0%|
|New Perspective Fund®||2.0%|
|Growth-and-Income Funds: 25.0%|
|American Mutual Fund®||6.0%|
|Capital World Growth and Income Fund®||4.0%|
|International Growth and Income FundSM||1.0%|
|The Investment Company of America®||5.0%|
|Washington Mutual Investors FundSM||5.0%|
|Equity-Income/Balanced Funds: 25.0%|
|American Balanced Fund®||7.0%|
|Capital Income Builder®||9.0%|
|The Income Fund of America®||9.0%|
|Bond Funds: 45.0%|
|American Funds Inflation Linked Bond FundSM||4.0%|
|American Funds Mortgage Fund®||8.0%|
|American High-Income Trust®||5.0%|
|The Bond Fund of America®||9.0%|
|Capital World Bond Fund®||5.0%|
|Intermediate Bond Fund of America®||9.0%|
|U.S. Government Securities Fund®||5.0%|
American Funds Inflation Linked Bond Fund is not available for direct investment by the public. Please review the following literature for additional information about American Funds Inflation Linked Bond Fund:
ILBF Prospectus ILBF Fund Fact sheet ILBF Portfolio Holdings
View Portfolio holdings
as of December 31, 2013 (updated quarterly, upon availability)
|Number of years with American Funds or affiliates|
|Alan N. Berro||23|
|James B. Lovelace||32|
|Wesley K.-S. Phoa||15|
|John H. Smet||30|
|Andrew B. Suzman||21|
|Bradley J. Vogt||26|
(as of the prospectus dated January 1, 2014)
The investment professionals shown are reflected in the fund’s most recent prospectus. Investment professional responsibilities may have changed since that 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. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal in bond funds and in a fund's bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks that are associated with the bonds owned by the underlying fund. Fund shares of the U.S. Government Securities Fund are not guaranteed by the U.S. government. For more information about the risks associated with each underlying fund, go to its detailed fund information page or read its prospectus.
The return of principal for the underlying funds in this target date fund is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness.
While not directly correlated to changes in interest rates, the values of inflation linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.
Although the target date funds are managed for investors on a projected retirement date time frame, the fund's 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 actively 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.
* Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Lifetime returns are from the fund's inception on February 1, 2007, through the most recent month- or quarter-end. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently waiving its management fee of 0.10%. After December 31, 2014, the adviser may modify or terminate the waiver, but only with fund board approval. In addition, the investment adviser has in the past reimbursed certain expenses for all share classes. Investment results reflect the waiver and reimbursements, without which the results would have been lower.
Read details about how waivers and/or reimbursements affect the results for each fund.
Source for Lipper expense ratio comparison: Lipper, based on front-end load funds of funds, including the weighted average expenses of the underlying funds. The industry expense ratio is for the most recent fiscal year-ends available as of December 31, 2013. The expense ratios do not reflect sales charges.
The investment adviser is currently waiving its management fee of 0.10%. After December 31, 2014, the adviser may modify or terminate the waiver, but only with fund board approval. In addition, the investment adviser has in the past reimbursed certain expenses for all share classes. Net expense ratios reflect the waiver and reimbursements, without which the expenses would have been higher. The expense ratios are as of each fund's prospectus and include the weighted average expenses of the underlying funds. Please see the funds most recent prospectus for details.
The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities, while the distribution rate reflects the fund's past dividends paid to shareholders. Accordingly, the fund's SEC yield and distribution rate may differ.
** Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee's discretion and will evolve over time. Underlying funds may be added or removed during the year.