American Funds Target Date Retirement Series | American Funds

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Our Target Date Funds Dominate Lipper Awards

American Funds swept the Lipper Awards for three- and five-year periods for all 10 target date categories.2

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From Thomson Reuters Lipper Awards, ©2017 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.


Quality Underlying Funds Power Our Series

Underlying Funds Have Beaten Benchmarks Over Their Lifetimes4

All 17 of the underlying equity funds in our series had better-than-benchmark lifetime average annual returns as of December 31, 2016.5

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Our Series Has the Most “Fantastic” Funds6

American Funds Target Date Retirement Series has more underlying funds on Morningstar’s “Fantastic 43” list than any other series.

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 READ


An Exceptional Foundation of Underlying Funds

Our underlying funds have outpaced their respective Lipper peer indexes in 91% of rolling 10-year periods.7

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A Key to Our Success

Portfolio manager Brad Vogt shares his thoughts about the strength of our underlying funds.

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A Unique Glide Path to Address Market and Longevity Risk

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What Distinguishes Our Glide Path?8
  • We continue to manage our glide path 30 years past retirement.
  • Our funds have meaningful equity exposure throughout retirement.
  • We emphasize dividends to provide equity exposure while managing volatility.

Our Glide Path Within a Glide Path

A static equity approach treats all equities the same. This simplistic practice may not always align with investor goals.

We distinguish growth- and income-oriented equities and adjust them to better address market and longevity risk.


A Dynamic Approach to Managing Volatility

Glide Path Within a Glide Path — This white paper explains the details and benefits of our re-characterization of equity exposure.


Our Series Has Delivered Superior Long-Term Results

Percentile Rankings of American Funds Target Date Funds9

Class R-6 Shares as of March 31, 2017

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Tools to Help You Evaluate

Target Date ProView℠

Creates a client-ready, DOL-aligned report comparing glide paths, risk, returns, expenses and more.10

 TRY THE TOOL

 

Target Date Peer Analysis

Provides key Morningstar data on results, portfolios and risk-adjusted metrics for leading target date funds.

 GET THE PEER ANALYSIS


What to Know About Evaluating Target Date Funds

American Funds’ John Doyle discusses fees, glide paths and evaluation tools.


Align With DOL Evaluation Guidelines

Choose the Target Date Series That’s Best for Participants — this brochure highlights a five-point evaluation process and shows how our series stands up.


 

Target Date Fund Details:      2060   |   2055   |   2050   |   2045   |   2040   |   2035   |   2030   |   2025   |   2020   |   2015   |   2010

 


 

How to Strengthen Your Business With Target Date Funds


1
Recommend
Recommend our target date series to plan sponsors.

2
Re-Enroll
Help sponsors conduct a target date fund re-enrollment.

3
Educate
Educate participants on the value of target date funds.
X
Target Date ProView

This tool creates a report you can show clients with easy-to-understand graphs and tables comparing different series’ glide paths, returns, expenses and more.

Choose the Target Date Series That’s Best for Participants

This brochure is designed to show why the American Funds series should be included as an investment option in retirement plans.

Availability of the American Funds series

This single sheet lists the retirement plan platforms that offer our series.

X
Investment Re-enrollment Can Improve Retirement Outcomes

Share this video with plan sponsors to show how a target date re-enrollment works.

Why Investment Re-enrollment Matters

This brochure includes case studies of successful re-enrollments, along with step-by-step implementation tips.

Why and When to Consider a Re-enrollment for Your Plan

This brochure is designed to encourage clients to consider a re-enrollment event to help improve participants’ investment allocations.

X
Participant Target Date Fund Education Site

Direct participants to this site to help them understand the benefits of investing in target date funds.

Why Target Date Funds Can Be a Good Choice

Share this video with participants for an easy-to-understand introduction to target date funds.

Diversification: Using a Target Date Fund

Use this PowerPoint presentation and related brochure to explain to participants the benefits of investing in a target date fund and how it can serve as a well-diversified portfolio.

1
Recommend
Recommend our target date series to plan sponsors.
Target Date ProView

This tool creates a report you can show clients with easy-to-understand graphs and tables comparing different series’ glide paths, returns, expenses and more.

Choose the Target Date Series That’s Best for Participants

This brochure is designed to show why the American Funds series should be included as an investment option in retirement plans.

Availability of the American Funds series

This single sheet lists the retirement plan platforms that offer our series.

2
Re-Enroll
Help sponsors conduct a target date fund re-enrollment.
Investment Re-enrollment Can Improve Retirement Outcomes

Share this video with plan sponsors to show how a target date re-enrollment works.

Why Investment Re-enrollment Matters

This brochure includes case studies of successful re-enrollments, along with step-by-step implementation tips.

Why and When to Consider a Re-enrollment for Your Plan

This brochure is designed to encourage clients to consider a re-enrollment event to help improve participants’ investment allocations.

3
Educate
Educate participants on the value of target date funds.
Participant Target Date Fund Education Site

Direct participants to this site to help them understand the benefits of investing in target date funds.

Why Target Date Funds Can Be a Good Choice

Share this video with participants for an easy-to-understand introduction to target date funds.

Diversification: Using a Target Date Fund

Use this PowerPoint presentation and related brochure to explain to participants the benefits of investing in a target date fund and how it can serve as a well-diversified portfolio.

1Cogent Wealth Reports, Retirement Plan Advisor Trends, September 2016, Market Strategies International. Methodology: There were 508 respondents to a web survey conducted August 16–24, 2016. The respondents consisted of financial advisors managing defined contribution plans. Learn more about Cogent Wealth Reports, Retirement Plan Advisor Trends.

2The 2017 Lipper Fund Awards were awarded on March 23, 2017, and based on risk-adjusted returns as of November 30, 2016.

3Based on one-year net asset growth as of February 28, 2017.

4The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. There have been periods when the fund has lagged the index.

Returns shown have all distributions reinvested. If a sales charge had been deducted, the results would have been lower.

Returns are average annual total returns for benchmark indexes and average annual excess total returns for funds’ Class R-6 shares from fund inception through 12/31/16. The 17 American Funds equity-focused underlying funds and the relevant index/index blends with which they were compared are as follows: AMCAP, GFA, NEF, AMF, FI, ICA and WMIF (Standard & Poor’s 500 Index); NPF (MSCI All Country World Index. Prior to 10/1/11, the fund was compared to the MSCI World Index); IFA (65% Standard & Poor’s 500 and 35% Bloomberg Barclays U.S. Aggregate indexes); AMBAL (60% Standard & Poor’s 500 and 40% Bloomberg Barclays U.S. Aggregate indexes); EUPAC (MSCI All Country World ex USA Index. Prior to 4/1/06, the fund was compared to the MSCI EAFE Index); CIB (70% MSCI All Country World and 30% Bloomberg Barclays U.S. Aggregate indexes); SCWF (MSCI ACWI Small Cap Index. Prior to 10/1/09, the fund was compared to the S&P Global < $3 Billion Index); WGI (MSCI All Country World. Prior to 12/1/11, the fund was compared to the MSCI World Index); NWF (MSCI All Country World Index); IGI (MSCI All Country World ex USA Index. Prior to 7/1/11, the fund was compared to the MSCI EAFE Index); and GBAL (60% MSCI All Country World and 40% Bloomberg Barclays Global Aggregate indexes). All relevant indexes and index blends listed are or include funds’ primary benchmarks.

Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

The S&P indexes are products of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2017 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.

5Not all 17 funds are in each target date fund.

6Source: Morningstar, Fund Spy article, September 18, 2017. Morningstar evaluated funds based on criteria including manager ownership, fund results and expense ratios, as well as Morningstar risk, analyst and parent ratings. Not all 13 funds listed in the “Fantastic 43” are in each target date fund. Underlying funds may change over time.

7Based on Class R-6 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used).

8Allocations shown reflect the funds’ target allocations for January 1, 2017. The funds’ investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below the allocations shown. Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee’s discretion and may change over time. For quarterly updates of fund allocations, visit americanfundsretirement.com.

9Results as of March 31, 2017. Percentile rankings for one-, three- and five-year periods calculated by Morningstar. Ten-year rankings calculated by Capital Group, using data obtained from Morningstar.

Rankings are based on the funds’ average annual total returns (Class R-6 shares at net asset value) within the applicable Morningstar categories. The Morningstar rankings do not reflect the effects of sales charges, account fees or taxes. Past results are not predictive of results in future periods. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The Morningstar category average includes all share classes for the funds in the category. While American Funds R-6 shares do not include fees for advisor compensation and service provider payments, the share classes represented in the Morningstar category have varying fee structures and can include these and other fees and charges resulting in higher expenses.

10Use of Target Date ProView may be subject to approval by your home office.

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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

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.

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.

Bond ratings for funds of funds relate to the securities held by the portfolios’ underlying mutual funds, and if agency ratings of those holdings differ, the security will be considered to have received the highest of those ratings.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.

For more information about the risks associated with each fund or underlying fund, go to its detailed fund information page or read the prospectus.

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.

Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.

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.

Class R-6 shares were first offered on May 1, 2009. Class R-6 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Please see each fund’s prospectus for more information on specific expenses.

The investment adviser is currently reimbursing a portion of other expenses for each share class of American Funds 2060 Target Date Retirement Fund. The reimbursement will be in effect through at least April 7, 2018. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Investment results and net expense ratios for the 2060 Fund reflect the reimbursement, without which the results would have been lower and the expenses would have been higher.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

When applicable, investment results reflect expense reimbursements, without which results would have been lower.

Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.

We offer a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of advisor compensation and service provider payments.

Because Class R-6 shares do not include any recordkeeping payments, expenses are lower and results are higher. Other share classes that include recordkeeping costs have higher expenses and lower results than Class R-6.

Investment allocations for funds of funds may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds' risks are directly related to the risks of the underlying funds, as described herein.