American Funds College Target Date Series®
Our seven target date funds were designed to address the key challenges of saving for the rising cost of education. A single investment provides diversification and a glide path matched to each client’s investing time horizon, making saving for education easier than ever.
The Glide Path
A glide path aligned with college investors’ needs
- We offer seven target date funds in three-year increments. The target date is meant to roughly correspond to the year the beneficiary will start withdrawing funds to meet education expenses.
- Our target date funds were built by the Portfolio Oversight Committee, a seasoned group of investment professionals. They conducted a rigorous process to determine the glide path for the Series and the combinations of American Funds in each “fund of funds.”
- As the fund moves along the glide path toward the enrollment date, managers modify the investment mix so that each fund’s portfolio gradually shifts from helping the assets grow to being more preservation-oriented.
American Funds College Target Date Glide Path
* The nearest dated fund merges with the College Enrollment Fund when it reaches its target enrollment date.
The target allocations shown are as of January 1, 2018, and are subject to the Portfolio Oversight Committee’s discretion. The funds’ investment adviser 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. For quarterly updates of fund allocations, visit americanfunds.com.
Features and Benefits
- Convenience – Our target date funds provide diversification in a single, easy-to-use, low-cost investment.
- Designed for educational savings – The funds are designed specifically for educational savings, with two needs in mind:
- Keeping pace with, if not exceeding, the rising cost of education.
- Preserving capital as the enrollment date approaches.
- Automatic asset reallocation – Each fund’s portfolio becomes heavily oriented toward bonds as the expected target enrollment date nears, and grows even more preservation-oriented when the date arrives.
- Time-tested American Funds investments – The American Funds College Target Date Series is the only 529 college savings plan target date option to solely feature the American Funds.
- Experienced oversight – Members of the Portfolio Oversight Committee average more than two decades of experience managing our funds. They monitor the Series, reviewing results and asset allocations to keep them aligned with each fund’s time horizon.
Availability and Management
- Anyone can invest in the American Funds College Target Date Series. Investors generally choose the fund with the target date closest to the year the student is expected to enroll in college but are not precluded from investing in other funds in the same CollegeAmerica® account.
- CollegeAmerica is available in 529-A, 529-C, 529-E and 529-F share classes.
- The underlying American Funds in the American Funds College Target Date Series are managed using The Capital System℠. The allocation percentages and underlying mutual funds within each Series fund are subject to the Portfolio Oversight Committee’s discretion and may evolve over time. Underlying funds may be added or removed at any time.