Cash & Equivalents
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 Committee’s 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.
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.
As of 6/30/2016 (updated annually)
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.
EuroPacific Growth Fund®
The Growth Fund of America®
The New Economy Fund®
New Perspective Fund®
New World Fund®
SMALLCAP World Fund®
American Mutual Fund®
Capital World Growth and Income Fund®
International Growth and Income Fund℠
American Funds Global Balanced Fund℠
U.S. Government Securities Fund®
As of 6/30/2016 (updated annually).
A breakdown of the underlying funds by investment objective.
As of 6/30/2016 (updated annually)
Eight of our American Funds target date funds have won 2016 Lipper Fund Awards for achieving consistently strong results.2
More than half of the underlying funds made Morningstar’s list of 50 “fantastic” funds - more than any other target date fund family.3
See how target date funds work and why they may be the right choice for you.
American Funds’ consistent approach, in combination with our proprietary investment process, The Capital System℠, has resulted in a superior long-term track record.4
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.