RETIREMENT PLANS

Seven American Funds among Morningstar’s “Thrilling 30”

All seven are building blocks of our target date series

Out of 15,000 fund share classes, only 30 were deemed “Thrilling” by Morningstar —

Graphic shows that out of 15,000 fund share classes surveyed, only 30 made Morningstar’s “Thrilling” list, with 7 from American Funds.

And 7 of those are American Funds*

Funds were selected based on what Morningstar believes are “high standards on the most important factors,” 9 tests assessing returns, expenses, risk, analyst ratings and more. Less than a quarter of 1% made the final cut.

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More “Thrilling 30” underlying strategies than any other target date series

Eight of the “Thrilling 30” are also underlying strategies among the 4 largest target date series providers.

Seven of these 8 are in American Funds Target Date Retirement Series®*

Graph shows American Funds’ target date series has 7 Morningstar “Thrilling” strategies. T. Rowe Price’s has 1, and Fidelity’s and Vanguard’s have 0.

In evaluating target date funds, investors should consider how the various features of each fund, including the underlying funds, investment results, expenses and glide path construction, apply to their personal situation.

Passive funds are not managed to generate returns that exceed their benchmarks, so target date funds that have only passive underlying investments likely will not have funds on the Morningstar “Thrilling” list.

Source for largest target date series: Morningstar, as defined by mutual fund assets as of September 30, 2023.

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“Thrilling” underlying strategies

“Thrilling” strategies in each American Funds Target Date Retirement Series vintage.*

For more information, click on the individual target date vintage or fund name.

2065

2060

2055

2050

2045

2040

2035

2030

2025

2020

2015

2010

The Growth Fund of America is in every American Funds Target Date Retirement Series vintage except the 2010, 2015 and 2020 funds
New Perspective Fund is in every American Funds Target Date Retirement Series vintage except the 2010, 2015 and 2020 funds
American Mutual Fund is in every vintage (2010 through 2065)
The New Economy Fund is in every vintage except 2010, 2015, 2020, 2025 and 2030
American Balanced Fund is in every vintage (2010 through 2065)
The Income Fund of America is in every vintage except the 2055, 2060 and 2065 funds
Capital Income Builder is in every vintage except the 2055, 2060 and 2065 funds.

As of September 30, 2023.

American Funds Target Date Retirement Series

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*Source: Morningstar, “The Thrilling 30” by Russel Kinnel, September 29, 2023. Morningstar’s screening took into consideration expense ratios, manager ownership, returns over manager’s tenure, and Morningstar Risk, Medalist and Parent ratings. The universe was limited to share classes accessible to individual investors with a minimum investment no greater than $50,000,  did not include funds of funds and had been rated by Morningstar analysts. Class A shares were evaluated for American Funds. American Funds Target Date Retirement Series invests in Class R-6 shares of the underlying American Funds. Not all “Thrilling” American Funds strategies are in each target date fund. Underlying funds may change over time. Visit morningstar.com for more details.

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.
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.
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.
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