AMERICAN FUNDS TARGET DATE RETIREMENT SERIES®

Solid building blocks

FACTORS DRIVING OUR SUCCESS
Series overview
Distinctive glide path
Delivering value at a low cost
Research and insights

Our Series is built from strong underlying funds

Percentage of rolling 10-year periods in which the Series’ underlying American Funds outpaced peers

This is a pie chart in which most of the pie is shaded green, with the small remainder grey. At the center of the chart is "86%," corresponding to the percentage of rolling 10-year periods in which the Series' underlying American Funds outpaced peers.

“Morningstar Medalists account for more than 90% of the series’ assets, a remarkable feat considering it consists entirely of actively managed funds.”

Morningstar Target-Date Fund Series Report
January 25, 2023

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Based on Class R-6 share results versus Lipper indexes for rolling calendar-year periods starting the first full calendar year after each fund's inception through December 31, 2022. Periods covered are 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). This analysis excludes American Funds Multi-Sector Income Fund and American Funds Strategic Bond Fund, which began on March 22, 2019, and March 1, 2016, respectively. Equity funds outpaced Lipper indexes in 91% of rolling periods. Fixed income funds outpaced in 69% of rolling periods.

Equity that has excelled

Our funds have a long history of beating the market while limiting downside risk, helping participants pursue their goals of both building and preserving wealth.

Bond funds that have diversified

Many of our bond funds stress low correlation* to equities, which can help cushion equity downturns.

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Fixed income funds that have had low equity correlation

Three-year correlation to S&P 500 Index: American Funds vs. peer group average

In this bar chart, two horizontal bars correspond to each underlying fixed income fund. A light blue bar depicts the fund's three-year correlation to the S&P 500 Index, while a dark blue bar illustrates the average correlation for that fund's Morningstar peer group. For U.S. Government Securities Fund®, the correlation is 0.23 vs. 0.36 for the peer group average. For American Funds Mortgage Fund®, the correlation is 0.35 vs. 0.36 for the peer group average. For Intermediate Bond Fund of America®, the correlation is 0.42 vs. 0.69 for the peer group average. For Short-Term Bond Fund of America®, the correlation is 0.29 vs. 0.69 for the peer group average. For The Bond Fund of America®, the correlation is 0.54 vs. 0.57 for the peer group average. For American Funds Inflation Linked Bond Fund®, the correlation is 0.60 vs. 0.74 for the peer group average. For Capital World Bond Fund®, the correlation is 0.68 vs. 0.75 for the peer group average. For American High-Income Trust®, the correlation is 0.83 vs. 0.84 for the peer group average. For American Funds® Multi-Sector Income Fund, the correlation is 0.82 vs. 0.78 for the peer group average. For American Funds® Strategic Bond Fund, the correlation is 0.38 vs. 0.67 for the peer group average.

Source: Morningstar. Data as of December 31, 2022. Results based on Class R-6 shares. The funds’ Morningstar categories are: U.S. Intermediate Government for U.S. Government Securities Fund and American Funds Mortgage Fund; U.S. Short-Term Bond for Intermediate Bond Fund of America and Short-Term Bond Fund of America; U.S. Intermediate Core Bond for The Bond Fund of America; U.S. Inflation-Protected Bond for American Funds Inflation Linked Bond Fund; U.S. World Bond for Capital World Bond Fund; U.S. High Yield Bond for American High-Income Trust; U.S. Fund Intermediate Core-Plus Bond for American Funds Strategic Bond Fund; and U.S. Fund Multisector Bond for American Funds Multi-Sector Income Fund.

*Correlation is a statistical measure of how a security and an index move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one moves, either up or down, the other will move in “lockstep” in the same direction. A negative correlation close to –1 indicates the two have moved in the opposite direction.

Each building block plays a role

Each underlying fund offers a different risk, return and income profile — building a series that more closely aligns with participant needs for every stage of life.

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Interact with the visualization below to explore the differentiated return, risk and income characteristics of each component. 

American Mutual Fund®, 2% is allocated to Capital Income Builder®, 2% is allocated to The Income Fund of America®, 5% is allocated to American Funds® Global Balanced Fund, 7% is allocated to American Balanced Fund®, and 5% is allocated to U.S. Government Securities Fund®. For the participant 20 years from retirement, 7% is allocated to SMALLCAP World Fund®, 3% is allocated to New World Fund®, 4% is allocated to The New Economy Fund®, 2% is allocated to EuroPacific Growth Fund®, 7% is allocated to The Growth Fund of America®, 7% is allocated to New Perspective Fund®, 7% is allocated to AMCAP Fund®, 4% is allocated to American Funds® Global Insight Fund, 8% is allocated to Fundamental Investors®, 8% is allocated to Capital World Growth and Income Fund®, 4% is allocated to The Investment Company of America®, 7% is allocated to Washington Mutual Investors Fund, 7% is allocated to American Mutual Fund®, 3% is allocated to Capital Income Builder®, 4% is allocated to The Income Fund of America®, 5% is allocated to American Funds® Global Balanced Fund, 8% is allocated to American Balanced Fund®, and 5% is allocated to U.S. Government Securities Fund®. For the participant 15 years from retirement, 6% is allocated to SMALLCAP World Fund®, 2% is allocated to New World Fund®, 4% is allocated to The New Economy Fund®, 7% is allocated to The Growth Fund of America®, 7% is allocated to New Perspective Fund®, 7% is allocated to AMCAP Fund®, 4% is allocated to American Funds® Global Insight Fund, 2% is allocated to International Growth and Income Fund, 7% is allocated to Fundamental Investors®, 7% is allocated to Capital World Growth and Income Fund®, 4% is allocated to The Investment Company of America®, 6% is allocated to Washington Mutual Investors Fund, 7% is allocated to American Mutual Fund®, 3% is allocated to Capital Income Builder®, 4% is allocated to The Income Fund of America®, 5% is allocated to American Funds® Global Balanced Fund, 8% is allocated to American Balanced Fund®, 2% is allocated to American Funds® Multi-Sector Income Fund, 3% is allocated to American Funds Inflation Linked Bond Fund®, and 5% is allocated to U.S. Government Securities Fund®. For the participant 10 years from retirement, 4% is allocated to SMALLCAP World Fund®, 6% is allocated to The Growth Fund of America®, 3% is allocated to New Perspective Fund®, 6% is allocated to AMCAP Fund®, 4% is allocated to American Funds® Global Insight Fund, 2% is allocated to International Growth and Income Fund, 6% is allocated to Fundamental Investors®, 7% is allocated to Capital World Growth and Income Fund®, 4% is allocated to The Investment Company of America®, 5% is allocated to Washington Mutual Investors Fund, 7% is allocated to American Mutual Fund®, 4% is allocated to Capital Income Builder®, 4% is allocated to The Income Fund of America®, 5% is allocated to American Funds® Global Balanced Fund, 8% is allocated to American Balanced Fund®, 3% is allocated to American Funds® Multi-Sector Income Fund, 2% is allocated to Capital World Bond Fund®, 5% is allocated to American Funds Inflation Linked Bond Fund®, 5% is allocated to U.S. Government Securities Fund®, 5% is allocated to American Funds Mortgage Fund®, 2% is allocated to American Funds® Strategic Bond Fund, and 3% is allocated to Intermediate Bond Fund of America®. For the participant 5 years from retirement, 2% is allocated to SMALLCAP World Fund®, 4% is allocated to The Growth Fund of America®, 2% is allocated to
New Perspective Fund®, 6% is allocated to AMCAP Fund®, 3% is allocated to American Funds® Global Insight Fund, 2% is allocated to International Growth and Income Fund, 3% is allocated to Fundamental Investors®, 7% is allocated to Capital World Growth and Income Fund®, 3% is allocated to The Investment Company of America®, 5% is allocated to Washington Mutual Investors Fund, 7% is allocated to American Mutual Fund®, 4% is allocated to Capital Income Builder®, 4% is allocated to The Income Fund of America®, 5% is allocated to American Funds® Global Balanced Fund, 8% is allocated to American Balanced Fund®, 3% is allocated to American Funds® Multi-Sector Income Fund, 2% is allocated to Capital World Bond Fund®, 7% is allocated to The Bond Fund of America®, 6% is allocated to American Funds Inflation Linked Bond Fund®, 5% is allocated to U.S. Government Securities Fund®, 5% is allocated to American Funds Mortgage Fund®, 2% is allocated to American Funds® Strategic Bond Fund, and 5% is allocated to Intermediate Bond Fund of America®. For the participant in retirement, 3% is allocated to AMCAP Fund®, 3% is allocated to American Funds® Global Insight Fund, 1% is allocated to International Growth and Income Fund, 3% is allocated to Fundamental Investors®, 6% is allocated to Capital World Growth and Income Fund®, 3% is allocated to The Investment Company of America®, 5% is allocated to Washington Mutual Investors Fund, 6% is allocated to American Mutual Fund®, 5% is allocated to Capital Income Builder®, 8% is allocated to The Income Fund of America®, 4% is allocated to American Funds® Global Balanced Fund, 8% is allocated to American Balanced Fund®, 4% is allocated to American Funds® Multi-Sector Income Fund, 2% is allocated to Capital World Bond Fund®, 8% is allocated to The Bond Fund of America®, 3% is allocated to American High-Income Trust®, 8% is allocated to American Funds Inflation Linked Bond Fund®, 5% is allocated to U.S. Government Securities Fund®, 6% is allocated to American Funds Mortgage Fund®, 3% is allocated to American Funds® Strategic Bond Fund, and 6% is allocated to Intermediate Bond Fund of America®. For the participant 5 years into retirement, 1% is allocated to AMCAP Fund®, 2% is allocated to American Funds® Global Insight Fund, 3% is allocated to Fundamental Investors®, 5% is allocated to Capital World Growth and Income Fund®, 3% is allocated to The Investment Company of America®, 5% is allocated to Washington Mutual Investors Fund, 6% is allocated to American Mutual Fund®, 6% is allocated to Capital Income Builder®, 12% is allocated to The Income Fund of America®, 4% is allocated to American Funds® Global Balanced Fund, 8% is allocated to American Balanced Fund®, 4% is allocated to American Funds® Multi-Sector Income Fund, 2% is allocated to Capital World Bond Fund®, 8% is allocated to The Bond Fund of America®, 3% is allocated to American High-Income Trust®, 8% is allocated to American Funds Inflation Linked Bond Fund®, 5% is allocated to U.S. Government Securities Fund®, 6% is allocated to American Funds Mortgage Fund®, 3% is allocated to American Funds® Strategic Bond Fund, and 6% is allocated to Intermediate Bond Fund of America®. For the participant 10 years into retirement, 2% is allocated to Fundamental Investors®, 5% is allocated to Capital World Growth and Income Fund®, 3% is allocated to The Investment Company of America®, 4% is allocated to Washington Mutual Investors Fund, 6% is allocated to American Mutual Fund®, 6% is allocated to Capital Income Builder®, 13% is allocated to The Income Fund of America®, 4% is allocated to American Funds® Global Balanced Fund, 7% is allocated to American Balanced Fund®, 4% is allocated to American Funds® Multi-Sector Income Fund, 2% is allocated to
This stacked area chart illustrates how the combinations of underlying funds making up the overall target date portfolio shifts along the Series' glide path. Risk, return and income metrics for each fund are also presented in callout boxes. The y-axis is scaled 0% to 100%. the x-axis begins 45 years to retirement and continues for 30 years following retirement. For the participant 45 years from retirement, 10% is allocated to SMALLCAP World Fund®, 4% is allocated to New World Fund®, 5% is allocated to The New Economy Fund®, 2% is allocated to EuroPacific Growth Fund®, 7% is allocated to The Growth Fund of America®, 10% is allocated to New Perspective Fund®, 7% is allocated to AMCAP Fund®, 9% is allocated to Fundamental Investors®, 9% is allocated to Capital World Growth and Income Fund®, 7% is allocated to The Investment Company of America®, 8% is allocated to Washington Mutual Investors Fund, 5% is allocated to American Mutual Fund®, 6% is allocated to American Funds® Global Balanced Fund, 6% is allocated to American Balanced Fund®, and 5% is allocated to U.S. Government Securities Fund®. For the participant 40 years from retirement, 10% is allocated to SMALLCAP World Fund®, 4% is allocated to New World Fund®, 5% is allocated to The New Economy Fund®, 2% is allocated to EuroPacific Growth Fund®, 7% is allocated to The Growth Fund of America®, 10% is allocated to New Perspective Fund®, 7% is allocated to AMCAP Fund®, 9% is allocated to Fundamental Investors®, 9% is allocated to Capital World Growth and Income Fund®, 7% is allocated to The Investment Company of America®, 8% is allocated to Washington Mutual Investors Fund, 5% is allocated to American Mutual Fund®, 6% is allocated to American Funds® Global Balanced Fund, 6% is allocated to American Balanced Fund®, and 5% is allocated to U.S. Government Securities Fund®. For the participant 35 years from retirement, 10% is allocated to SMALLCAP World Fund®, 4% is allocated to New World Fund®, 5% is allocated to The New Economy Fund®, 2% is allocated to EuroPacific Growth Fund®, 7% is allocated to The Growth Fund of America®, 10% is allocated to New Perspective Fund®, 7% is allocated to AMCAP Fund®, 9% is allocated to Fundamental Investors®, 9% is allocated to Capital World Growth and Income Fund®, 7% is allocated to The Investment Company of America®, 8% is allocated to Washington Mutual Investors Fund, 5% is allocated to American Mutual Fund®, 6% is allocated to American Funds® Global Balanced Fund, 6% is allocated to American Balanced Fund®, and 5% is allocated to U.S. Government Securities Fund®. For the participant 30 years from retirement, 9% is allocated to SMALLCAP World Fund®, 4% is allocated to New World Fund®, 5% is allocated to The New Economy Fund®, 2% is allocated to EuroPacific Growth Fund®, 7% is allocated to The Growth Fund of America®, 9% is allocated to New Perspective Fund®, 7% is allocated to AMCAP Fund®, 2% is allocated to American Funds® Global Insight Fund, 9% is allocated to Fundamental Investors®, 9% is allocated to Capital World Growth and Income Fund®, 6% is allocated to The Investment Company of America®, 8% is allocated to Washington Mutual Investors Fund, 6% is allocated to American Mutual Fund®, 6% is allocated to American Funds® Global Balanced Fund, 6% is allocated to American Balanced Fund®, and 5% is allocated to U.S. Government Securities Fund®. For the participant 25 years from retirement, 8% is allocated to SMALLCAP World Fund®, 3% is allocated to New World Fund®, 4% is allocated to The New Economy Fund®, 2% is allocated to EuroPacific Growth Fund®, 7% is allocated to The Growth Fund of America®, 9% is allocated to New Perspective Fund®, 7% is allocated to AMCAP Fund®, 3% is allocated to American Funds® Global Insight Fund, 8% is allocated to Fundamental Investors®, 8% is allocated to Capital World Growth and Income Fund®, 5% is allocated to The Investment Company of America®, 8% is allocated to Washington Mutual Investors Fund, 7% is allocated to
Capital World Bond Fund®, 9% is allocated to The Bond Fund of America®, 3% is allocated to American High-Income Trust®, 8% is allocated to American Funds Inflation Linked Bond Fund®, 6% is allocated to American Funds Mortgage Fund®, 4% is allocated to American Funds® Strategic Bond Fund, 9% is allocated to Intermediate Bond Fund of America®, and 5% is allocated to Short-Term Bond Fund of America®. For the participant 10 years into retirement, 2% is allocated to Fundamental Investors®, 5% is allocated to Capital World Growth and Income Fund®, 3% is allocated to The Investment Company of America®, 4% is allocated to Washington Mutual Investors Fund, 6% is allocated to American Mutual Fund®, 6% is allocated to Capital Income Builder®, 13% is allocated to The Income Fund of America®, 4% is allocated to American Funds® Global Balanced Fund, 7% is allocated to American Balanced Fund®, 4% is allocated to American Funds® Multi-Sector Income Fund, 2% is allocated to Capital World Bond Fund®, 9% is allocated to The Bond Fund of America®, 3% is allocated to American High-Income Trust®, 8% is allocated to American Funds Inflation Linked Bond Fund®, 6% is allocated to American Funds Mortgage Fund®, 4% is allocated to American Funds® Strategic Bond Fund, 9% is allocated to Intermediate Bond Fund of America®, and 5% is allocated to Short-Term Bond Fund of America®. For the participant 15 years into retirement, 1% is allocated to Fundamental Investors®, 3% is allocated to Capital World Growth and Income Fund®, 3% is allocated to The Investment Company of America®, 4% is allocated to Washington Mutual Investors Fund, 5% is allocated to American Mutual Fund®, 7% is allocated to Capital Income Builder®, 18% is allocated to The Income Fund of America®, 2% is allocated to American Funds® Global Balanced Fund, 7% is allocated to American Balanced Fund®, 3% is allocated to American Funds® Multi-Sector Income Fund, 10% is allocated to The Bond Fund of America®, 7% is allocated to American Funds Inflation Linked Bond Fund®, 7% is allocated to American Funds Mortgage Fund®, 4% is allocated to American Funds® Strategic Bond Fund, 11% is allocated to Intermediate Bond Fund of America®, and 8% is allocated to Short-Term Bond Fund of America®. For the participant 20 years into retirement, 2% is allocated to Capital World Growth and Income Fund®, 2% is allocated to The Investment Company of America®, 4% is allocated to Washington Mutual Investors Fund, 4% is allocated to American Mutual Fund®, 7% is allocated to Capital Income Builder®, 19% is allocated to The Income Fund of America®, 7% is allocated to American Balanced Fund®, 11% is allocated to The Bond Fund of America®, 6% is allocated to American Funds Inflation Linked Bond Fund®, 9% is allocated to American Funds Mortgage Fund®, 5% is allocated to American Funds® Strategic Bond Fund, 13% is allocated to Intermediate Bond Fund of America®, and 11% is allocated to Short-Term Bond Fund of America®. For the participant 25 years into retirement, 2% is allocated to Washington Mutual Investors Fund, 4% is allocated to American Mutual Fund®, 7% is allocated to Capital Income Builder®, 20% is allocated to The Income Fund of America®, 7% is allocated to
American Balanced Fund®, 11% is allocated to The Bond Fund of America®, 5% is allocated to American Funds Inflation Linked Bond Fund®, 13% is allocated to American Funds Mortgage Fund®, 3% is allocated to American Funds® Strategic Bond Fund, 15% is allocated to Intermediate Bond Fund of America®, and 13% is allocated to Short-Term Bond Fund of America®. For the participant 30 years into retirement, 1% is allocated to Washington Mutual Investors Fund, 4% is allocated to American Mutual Fund®, 7% is allocated to Capital Income Builder®, 21% is allocated to The Income Fund of America®, 7% is allocated to American Balanced Fund®, 9% is allocated to The Bond Fund of America®, 5% is allocated to American Funds Inflation Linked Bond Fund®, 13% is allocated to American Funds Mortgage Fund®, 17% is allocated to Intermediate Bond Fund of America®, and 16% is allocated to Short-Term Bond Fund of America®. As of June 30, 2023, Short-Term Bond Fund of America® had a three-year average annual return of -0.9%, a three-year annualized standard deviation is 1.9%, and a 30-day gross SEC yield is 4.7%. As of June 30, 2023, Intermediate Bond Fund of America® had a three-year average annual return of -1.8%, a three-year annualized standard deviation is 3.9%, and a 30-day gross SEC yield is 4.8%. As of June 30, 2023, American Funds® Strategic Bond Fund had a three-year average annual return of -3.6%, a three-year annualized standard deviation is 6.9%, and a 30-day gross SEC yield is 5.5%. As of June 30, 2023, American Funds Mortgage Fund® had a three-year average annual return of -2.8%, a three-year annualized standard deviation is 5.6%, and a 30-day gross SEC yield is 4.6%. As of June 30, 2023, U.S. Government Securities Fund® had a three-year average annual return of -3.5%, a three-year annualized standard deviation is 5.6%, and a 30-day gross SEC yield is 4.9%. As of June 30, 2023, American Funds Inflation Linked Bond Fund® had a three-year average annual return of -1.2%, a three-year annualized standard deviation is 7.2%, and a 30-day gross SEC yield is 8.3%. As of June 30, 2023, American High-Income Trust® had a three-year average annual return of 5.4%, a three-year annualized standard deviation is 8%, and a 30-day gross SEC yield is 7.8%. As of June 30, 2023, The Bond Fund of America® had a three-year average annual return of -3.2%, a three-year annualized standard deviation is 6.3%, and a 30-day gross SEC yield is 4.9%. As of June 30, 2023, Capital World Bond Fund® had a three-year average annual return of -4.8%, a three-year annualized standard deviation is 9.2%, and a 30-day gross SEC yield is 4.3%. As of June 30, 2023, American Funds® Multi-Sector Income Fund had a three-year average annual return of 1.1%, a three-year annualized standard deviation is 7.2%, and a 30-day gross SEC yield is 6.7%. As of June 30, 2023, American Balanced Fund® had a three-year average annual return of 7.1%, a three-year annualized standard deviation is 11.8%, and a 30-day gross SEC yield is 2.9%. As of June 30, 2023, American Funds® Global Balanced Fund had a three-year average annual return of 5%, a three-year annualized standard deviation is 12.5%, and a 30-day gross SEC yield is 3.2%. As of June 30, 2023, The Income Fund of America® had a three-year average annual return of 9%, a three-year annualized standard deviation is 12%, and a 30-day gross SEC yield is 4.1%. As of June 30, 2023, Capital Income Builder® had a three-year average annual return of 7.7%, a three-year annualized standard deviation is 12.6%, and a 30-day gross SEC yield is 3.9%.
As of June 30, 2023, American Mutual Fund® had a three-year average annual return of 12.2%, a three-year annualized standard deviation is 14.1%, and a 30-day gross SEC yield is 2.5%. As of June 30, 2023, Washington Mutual Investors Fund℠ had a three-year average annual return of 14.6%, a three-year annualized standard deviation is 15.8%, and a 30-day gross SEC yield is 2.1%. As of June 30, 2023, The Investment Company of America® had a three-year average annual return of 13.6%, a three-year annualized standard deviation is 16.7%, and a 30-day gross SEC yield is 1.7%. As of June 30, 2023, Capital World Growth and Income Fund® had a three-year average annual return of 9.7%, a three-year annualized standard deviation is 17.3%, and a 30-day gross SEC yield is 2.1%. As of June 30, 2023, Fundamental Investors® had a three-year average annual return of 12.8%, a three-year annualized standard deviation is 17.6%, and a 30-day gross SEC yield is 1.5%. As of June 30, 2023, International Growth and Income Fund had a three-year average annual return of 9%, a three-year annualized standard deviation is 18.6%, and a 30-day gross SEC yield is 2.8%. As of June 30, 2023, American Funds® Global Insight Fund had a three-year average annual return of 9.3%, a three-year annualized standard deviation is 16.8%, and a 30-day gross SEC yield is 1.6%. As of June 30, 2023, AMCAP Fund® had a three-year average annual return of 8.2%, a three-year annualized standard deviation is 18.7%, and a 30-day gross SEC yield is 0.7%. As of June 30, 2023, New Perspective Fund® had a three-year average annual return of 10.8%, a three-year annualized standard deviation is 20.1%, and a 30-day gross SEC yield is 1.3%. As of June 30, 2023, The Growth Fund of America® had a three-year average annual return of 9.8%, a three-year annualized standard deviation is 20.7%, and a 30-day gross SEC yield is 0.8%. As of June 30, 2023, EuroPacific Growth Fund® had a three-year average annual return of 5.5%, a three-year annualized standard deviation is 19.1%, and a 30-day gross SEC yield is 1.6%. As of June 30, 2023, The New Economy Fund® had a three-year average annual return of 6.2%, a three-year annualized standard deviation is 18.4%, and a 30-day gross SEC yield is 0.7%. As of June 30, 2023, New World Fund® had a three-year average annual return of 6%, a three-year annualized standard deviation is 17.2%, and a 30-day gross SEC yield is 1.6%. As of June 30, 2023, SMALLCAP World Fund® had a three-year average annual return of 5.6%, a three-year annualized standard deviation is 19.9%, and a 30-day gross SEC yield is 0.8%.

Source: Capital Group. The target allocations shown are as of June 30, 2023, and are subject to the oversight committee’s discretion. The investment adviser anticipates assets will be invested within a range that deviates no more than 10% above or below the allocations shown in the prospectus/characteristics statement. Underlying funds may be added or removed during the year. Visit capitalgroup.com for current allocations.

Based on the 30-day SEC yield, annualized standard deviation and average annual return of the underlying funds for Class R-6 shares for the three years ending June 30, 2023. Values rounded to tenths. Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. The 30-day SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities calculated in accordance with the SEC formula. View current mutual fund SEC yield.

LOW FEES

Delivering value at a low cost

We encourage a focus not just on expenses but on value delivered to participants.

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GLIDE PATH

A distinctive approach

Our glide path is different. While our Series changes the mix between stocks and bonds, it also changes the types of assets held. This is designed to better align with participant needs over time.

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HOMEPAGE

Discover what sets our Series apart

Target date funds have a lot in common. But the American Funds Target Date Series takes a distinctive approach that has delivered uncommon investment outcomes and helped thousands of participants come closer to achieving their financial goals.

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Important investment disclosures

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. Investing for short periods makes losses more likely. Prices and returns will vary, so investors may lose money. View mutual 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.
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 use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.
The return of principal for bond portfolios and for portfolios with significant underlying bond holdings is not guaranteed. Investments are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
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.
Frequent and active trading of American Funds Strategic Bond Fund's portfolio securities may occur, which may involve correspondingly greater transaction costs, adversely affecting the results.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
Smaller company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.
Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
Capital Group offers a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of financial professional 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.
There have been periods when the results lagged the index(es) and/or average(s). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
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.
Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg's licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
Each S&P Index ("Index") shown is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2024 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 is prohibited without written permission of S&P Dow Jones Indices LLC.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
Certain share classes were offered after the inception dates of some funds. Results for these shares prior to the dates of first sale are hypothetical based on the original share class results without a sales charge, adjusted for typical estimated expenses. 
  • Class R-6 shares were first offered on 5/1/2009.
Results for certain funds with an inception date after the share class inception also include hypothetical returns because those funds' shares sold after the funds' date of first offering. View dates of first sale and specific expense adjustment information.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
© 2024 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.

Lifetime results methodology 

The 18 American Funds equity-focused funds used in our analysis (and the relevant indexes/index blends to which they were compared) are: AMCAP Fund, American Mutual Fund, Fundamental Investors, The Growth Fund of America, The Investment Company of America and Washington Mutual Investors Fund (S&P 500); American Balanced Fund (60% S&P 500/40% Bloomberg U.S. Aggregate); American Funds Global Balanced Fund (60% MSCI All Country World/40% Bloomberg Global Aggregate); Capital Income Builder (70% MSCI All Country World/30% Bloomberg U.S. Aggregate); The Income Fund of America (65% S&P 500/35% Bloomberg U.S. Aggregate); Capital World Growth and Income Fund, New Perspective Fund, New World Fund, and The New Economy Fund (MSCI All Country World); EuroPacific Growth Fund and International Growth and Income Fund (MSCI All Country World ex USA); SMALLCAP World Fund (MSCI All Country World Small Cap); and American Funds Global Insight Fund (MSCI World). Each listed index is the funds' primary benchmark, with the exception of American Balanced Fund, American Funds Global Balanced Fund, Capital Income Builder and The Income Fund of America. Each of these funds has two primary benchmarks (the indexes listed above, which are rebalanced monthly).

Some of these indexes lack sufficient history to cover the lifetime of certain funds. Comparable indexes were used for those periods. For American Balanced Fund, a 60% S&P 500/40% Bloomberg U.S. Government/Credit index blend was used for the period between July 26, 1975 (the fund's inception) and December 31, 1975. For Capital Income Builder, a 70% MSCI World/30% Bloomberg U.S. Aggregate index blend was used for the period between July 30, 1987 (the fund's inception) and December 31, 1987. For The Income Fund of America, a 65% S&P 500/35% Bloomberg U.S. Government/Credit index blend was used for the period between November 30, 1973 (the fund's inception) and December 31, 1975. For EuroPacific Growth Fund, the MSCI EAFE (Europe, Australasia, Far East) Index was used for the period between April 16, 1984 (the fund's inception) and March 31, 2007. For New Perspective Fund, the MSCI World Index was used for the period between March 13, 1973 (the fund's inception) and September 30, 2011. For SMALLCAP World Fund, the S&P Global <$3 Billion Index (formerly the S&P Global <$1.2 Billion Index) was used for the period between April 30, 1990 (the fund's inception) and September 30, 2009. For Capital World Growth and Income Fund, the MSCI World Index was used for the period between January 1, 1970 (the fund's inception) and November 30, 2011. For International Growth and Income Fund, the MSCI World Index ex USA was used for the period between January 1, 1970 (the fund's inception) and June 30, 2011.

Index definitions

The Bloomberg U.S. Aggregate Index represents the U.S. investment-grade, fixed-rate bond market.

The Bloomberg U.S. Credit Index is a market-value-weighted index that tracks the total return results of publicly issued U.S. corporate and specified foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements.

The Bloomberg U.S. Government Index measures the performance of the U.S. Treasury and U.S. Agency indexes, including Treasuries and U.S. agency debentures. 

The Bloomberg U.S. Government/Credit Index measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury.

The MSCI All Country World Index (ACWI) is a free-float-adjusted, market-capitalization-weighted index that measures equity market results in global developed and emerging markets. It consists of more than 40 indexes in developed and emerging markets.

The MSCI All Country World Index (ACWI) ex USA is a free-float-adjusted, market-capitalization-weighted index that measures equity market results in global developed and emerging markets, excluding the United States. It consists of more than 40 indexes in developed and emerging markets.

The MSCI All Country World Small Cap Index is a free-float-adjusted, market-capitalization-weighted index that measures equity market results of smaller capitalization companies in developed and emerging markets. 

The MSCI EAFE (Europe, Australasia, Far East) Index is a free-float-adjusted, market-capitalization-weighted index that measures developed equity market results, excluding the United States and Canada.

The MSCI World Index is a free-float-adjusted, market-capitalization-weighted index that measures equity results in developed markets. It consists of more than 20 indexes in developed markets.

The MSCI World Index ex USA is a free-float-adjusted, market-capitalization-weighted index that measures equity results in developed markets, excluding the United States. It consists of more than 20 indexes in developed markets.

The S&P 500 Index is a market-capitalization-weighted index that represents approximately 500 widely held common stocks.

The S&P Target Date indexes are a series of indexes composed of different allocations to stocks, bonds and short-term investments that reflect reductions in potential risk over time.