Detailed Fund Information
American Funds College 2027 FundSM (college target date fund)
Updated March 7, 2014, 3:16PM Pacific time
|Net Asset Value (NAV)||$12.08|
|Maximum Offering Price (MOP)||$12.62|
(All prices are subject to revision.)
Historical Prices & Distributions
Ticker Symbols & Fund Numbers
|CUSIP Number||02629M 60 3|
|Fund Objective||The fund will seek to achieve the following objectives to varying degrees: growth, income and preservation of capital, depending on the proximity to its target date.|
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)||16,717|
|Regular Dividends Paid||December|
|Capital Gains Paid||December|
|Fund Inception||September 14, 2012|
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 529-A shares reflect payment of the 4.25% 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||13.29%||||||||11.96%|
|December 31, 2013 (most recent quarter-end)|
|With sales charge||14.72%||||||||12.02%|
|American Funds College 2027 Fund (net)||0.82%|
|American Funds College 2027 Fund (gross)||0.92%|
|Lipper Mixed-Asset Target 2030 Funds Average||1.12%|
12-Month Distribution Rates‡
As of January 31, 2014 (updated monthly)
|With sales charge||1.07%|
Annualized 30-Day SEC Yield‡
As of January 31, 2014 (updated monthly)
|With sales charge||1.19%|
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: 15.0%|
|EuroPacific Growth Fund®||5.0%|
|The Growth Fund of America®||10.0%|
|Growth-and-Income Funds: 55.0%|
|Capital World Growth and Income Fund®||15.0%|
|International Growth and Income FundSM||10.0%|
|The Investment Company of America®||15.0%|
|Equity-Income/Balanced Funds: 10.0%|
|American Funds Global Balanced FundSM||10.0%|
|Bond Funds: 20.0%|
|Capital World Bond Fund®||5.0%|
|U.S. Government Securities Fund®||15.0%|
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 portfolio managers shown are reflected in the fund’s most recent prospectus.
CollegeAmerica is sponsored by Virginia529. But you can invest no matter where you live, and your beneficiary can go to school in any state. However, if you reside in a state other than Virginia, there may be an in-state plan that offers tax and other benefits not available in CollegeAmerica. Before investing in any states 529 plan, you should consult your tax adviser.
For fund of funds, investment allocations may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund of funds expenses. The fund'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. 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 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. Fund shares 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 target date is the year in which the beneficiary is expected to begin taking withdrawals. Investment professionals gradually adjust the portfolio over time so that it becomes more preservation-oriented. The funds' allocation strategy does not guarantee that investors' education savings goals will be met. Investors and their advisers should periodically evaluate their investment to determine whether it continues to meet their needs.
* 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% and reimbursing a portion of other expenses. Investment results shown reflect the waiver and reimbursements, without which the results would have been lower. After December 31, 2014, the adviser may modify or terminate the waiver, but only with fund board approval. The adviser has committed to retain any reimbursements only through December 31, 2014. 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 funds expense ratio is as of the fund's prospectus. The expense ratios do not reflect sales charges.
The investment adviser is currently waiving its management fee of 0.10% and reimbursing a portion of other expenses. Net expense ratios shown reflect the waiver and reimbursements, without which the expenses would have been higher. After December 31, 2014, the adviser may modify or terminate the waiver, but only with fund board approval. The adviser has committed to retain any reimbursements only through December 31, 2014. Expense ratios are estimated as of each funds prospectus and include the weighted average expenses of the underlying funds.
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.