Target Date Funds
Building a best-in-class target date retirement series.
"Few other target-date series have as many highly regarded underlying holdings."
— Morningstar Target-Date Fund Series Report June 30,2016
Our strong underlying funds have consistently outpaced their peers.1
Recognized for our results.
Morningstar: Our target date series has "Terrific" funds
Eight of the underlying equity funds in the American Funds Target Date Retirement Series were recognized on the Morningstar® "28 Terrific Funds" list.
Source: Morningstar, September 4, 2018, "Fund Spy: 28 Terrific Funds," by Russel Kinnel. Morningstar's criteria for the “Terrific” list include: cheapest quintile of broad level category groupings, manager investment of more than $1 million in the fund, Morningstar Risk rating below the High level, Morningstar Analyst Rating of Bronze or higher, Parent rating of Positive, returns above the fund's benchmark over the manager's tenure. The criteria have changed over the years. Not all eight funds listed in the "28 Terrific Funds" list are in each target date fund. Underlying funds may change over time.
Lipper: Our target date series earns multiple awards
Six American Funds target date funds won Lipper Awards for five-year periods.
From Thomson Reuters Lipper Awards © 2018 Thomson Reuters. All rights reserved. Based on Thomas Reuters Lipper's definitions of superior consistency and risk-adjusted return when compared to the Lipper Mixed-Asset Target Date Fund peer groups. The 2018 Lipper Fund Awards were awarded on February 27, 2018, and were based on Class R-6 shares for the five-year period ended November 30, 2017.
Cogent: Plan advisors vote our target date funds "best in class"
American Funds was the #1 choice of retirement plan advisors as the best-in-class target date solution, according to a recent Cogent report.
Cogent Wealth Reports, Retirement Plan Advisor Trends, September 2017, Market Strategies International. Methodology: There were 514 respondents to a web survey conducted July 21 to August 11, 2017. The respondents consisted of financial advisors managing defined contribution plans. Learn more about Cogent Wealth Reports, Retirement Plan Advisor Trends.
WELL-DESIGNED GLIDE PATH
Shifting to meet participants' needs.
The allocations shown reflect the funds' target allocations as of the most recent prospectus. 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 set forth above. Changes in the equity allocation of the underlying equity-income and balanced funds may affect the overall equity exposure in the target date funds. 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. For quarterly updates of fund allocations, visit americanfundsretirement.com.
A different approach for better outcomes.
1.Meaningful equity exposure throughout retirement to deliver capital growth potential.
2.Emphasizes dividend income to manage volatility while maintaining equity exposure.
3.Fixed income strategies seek income, capital preservation and inflation protection.
2 shown reflect the funds’ target allocations for January 1, 2018. 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. Changes in the equity allocation of the underlying equity-income and balanced funds may affect the overall equity exposure in the target date funds. For quarterly updates of fund allocations, visit americanfundsretirement.com.
Superior long-term results
Ranking among the highest in the category.2
Morningstar category percentile return rankings
2 Results as of September 30, 2018. 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. The category includes both active and passive target date funds, as well as those that are managed both "to" and "through"retirement. Approximately one-third of the funds within the 2000-2010 category have a target date of 2005. When applicable, investment results reflect expense reimbursements, without which results would have been lower.
All funds began on February 1, 2007, except for the 2055 fund, which began on February 1, 2010, and the 2060 fund, which began on March 27, 2015.
Get a closer look at our Target Date Series.
Source: Capital Group. As of September 30, 2018. Updated monthly. For funds of funds, figures are based on holdings of the underlying funds as of date shown.
3Cash & equivalents includes short-term securities, accrued income and other assets less liabilities.
Source: Capital Group.
As of September 30, 2018.
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