2045 Target Date Retirement Fund | American Funds

American Funds
2045 Target Date
Retirement Fund®

Set Your Sights on Retirement and Beyond.


Select a Different Fund:      2060   |   2055   |   2050   |   2045   |   2040   |  2035   |   2030   |   2025   |   2020   |   2015   |   2010



American Funds 2045 Glide Path

This fund is designed for individuals who plan to retire and begin taking retirement withdrawals in 2045.

A glide path is a visual representation of how the investments in each of our funds change over time based on the target retirement date. Depending on the proximity to its target date, the fund will seek to achieve the following objective to varying degrees: growth, income and conservation of capital. Learn more about the benefits of our glide path.

The target allocations are shown as of January 1, 2016, and are subject to the Portfolio Oversight Committees discretion. The funds investment advisor anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below these allocations. Underlying funds may be added or removed during the year.

 


Asset Mix

The asset mix seeks to balance risk and return over time by diversifying investments across asset types such as stocks and bonds. Stocks have the highest long-term return potential while bonds can help manage the risk of market declines.

 U.S. Stocks

55.5%

 Non-U.S. Stocks

26.8%

 U.S. Bonds

7.9%

 Non-U.S. Bonds

1.5%

 Cash & Equivalents

8.3%

As of 6/30/2016 (updated annually)

For most recent fund statistics, visit americanfunds.com.

A list of underlying funds that make up the target date fund. These funds can be broken down by investment objective, which is shown in the current allocation.

 Growth

40%

AMCAP Fund®

7%

EuroPacific Growth Fund®

4%

The Growth Fund of America®

7%

The New Economy Fund®

4%

New Perspective Fund®

7%

New World Fund®

4%

SMALLCAP World Fund®

7%

 Growth-and-Income

43.4%

American Mutual Fund®

7.8%

Capital World Growth and Income Fund®

6.6%

Fundamental Investors®

7.7%

International Growth and Income Fund℠

3.9%

The Investment Company of America®

8.7%

Washington Mutual Investors Fund℠

8.7%

 Equity-Income/Balanced

11.5%

Capital Income Builder®

0.6%

The Income Fund of America®

0.6%

American Balanced Fund®

5.3%

American Funds Global Balanced Fund℠

5%

 Bond

5.1%

U.S. Government Securities Fund®

5.1%

As of 6/30/2016 (updated annually).

For most recent fund statistics, visit americanfunds.com.

A breakdown of the underlying funds by investment objective.

 Growth

40%

 Growth and Income

44%

 Equity Income/Balanced

12%

 Bond

5%

As of 6/30/2016 (updated annually)

For most recent fund statistics, visit americanfunds.com.

 

“Few other target-date series have as many highly regarded underlying holdings.”

-Morningstar®1


Lipper Awards

Eight of our American Funds target date funds have won 2016 Lipper Fund Awards for achieving consistently strong results.2

Accolades from Morningstar

More than half of the underlying funds made Morningstar’s list of 50 “fantastic” funds - more than any other target date fund family.3




Why Target Date Funds Can Be a Good Choice

(2:49)

See how target date funds work and why they may be the right choice for you. 

Superior Fund Results Can Lead to Better Outcomes

(1:51)

American Funds’ consistent approach, in combination with our proprietary investment process, The Capital System℠, has resulted in a superior long-term track record.4

 For fund results or for information about your retirement plan, talk with your plan provider or employer, or visit your plan’s website.

Morningstar Target-Date Fund Landscape Report, April 2015 

2 The 2016 Lipper Fund Awards were awarded on March 22, 2016. Seven funds in the American Funds Target Date Retirement Series (R-6 share class) were cited as Best Mixed-Asset Target Funds for multiple time frames, and one for a single period, based on the Consistent Return as defined by superior consistency and risk-adjusted return when compared to Lipper Mixed-Asset Target Date Fund peer groups.

From Thomson Reuters Lipper Awards, © 2016 Thomson Reuters. All rights reserved. www.lipperweb.com for additional information.

Source: Morningstar, FundInvestor, June 2015. Morningstar evaluated funds based on eight criteria that included manager tenure, fund track record and investment results, as well as Morningstar’s own ratings. Not all 11 funds listed in the “Fantastic 50” are in each target date fund. Underlying funds may change over time.

Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 95% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 58% of 20-year periods. Based on Class A share results for rolling periods through December 31, 2015. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Our fund management fees have been among the lowest in the industry. On average, our management fees were in the lowest quintile 68% of the time, based on the 20-year period ended December 31, 2015, versus comparable Lipper categories, excluding funds of funds.


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

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 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. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. 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. 

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. 

Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.

For funds of funds, figures are based on holdings of the underlying funds as of date shown.

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 at any time.