New addition to firm’s target date suite combines Capital Group’s active management with passive exposure from other firms
LOS ANGELES, September 9, 2024 – Capital Group, one of the world’s largest active investment managers with over 90 years of experience1, has launched the Capital Group Target Date Retirement Blend Series. The offering combines the firm’s decades-long experience in active management with passive indexing from BlackRock and State Street, providing investors a diversified solution to pursue their retirement goals. As the glide path manager, Capital Group selects the passive exposures and manages the allocations.
“We’re aware that plan sponsors have a range of preferences for either active or passive management in their portfolios, or a combination of both, and may also differ in their prioritization of fees versus potential excess returns,” said Kelly Campbell, Multi-Asset Solutions Lead at Capital Group. “Introducing a blended target date strategy alongside our all-active series enables us to engage a broader spectrum of plan sponsors and participants. The new strategy leverages our robust research capabilities and seasoned multi-asset solutions team to accommodate a range of needs within the larger end of the institutional market.”
The Capital Group Target Date Retirement Blend Strategy is structured as a CIT series and intended for larger retirement plans. Currently, the firm sources passive exposures from BlackRock and State Street through a combination of CITs and ETFs. The series leverages objective-based equity, fixed income and balanced strategies alongside these passive equity and fixed income exposures and is guided by four core principles:
“As one of the active managers with some of the lowest cost active management fees2, plan sponsors and consultants were asking us to leverage our strong target date capabilities to bring more choice to the market, including developing a blended strategy,” said Campbell. “We will continue to evolve our solutions to be a partner of choice for our clients and remain focused on our mission of improving people’s lives through successful investing, as well as making retirement accessible for more people,” she continued.
For more information on Capital Group’s investment solutions, please visit capitalgroup.com.
1 Capital Group as of September 1, 2024.
2 On average, our mutual fund management fees were in the lowest quintile 55% of the time, based on the 20-year period ended December 31, 2023, versus comparable Lipper categories, excluding funds of funds.
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability since 1931.
As of June 30, 2024, Capital Group manages more than $2.7 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Important information about objectives, risks, charges and expenses for collective investment trusts is contained in the Characteristics Statement, which can be obtained from Capital Group or participants’ plan provider or employer.
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.
Collective Investment Trusts (CITs) are available for investment only to certain qualified retirement plans. Capital Group CITs are maintained by Capital Bank and Trust Company (“trustee”), which has retained an affiliate to serve as investment adviser to the trustee.
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.
On average, our mutual fund management fees were in the lowest quintile 55% of the time, based on the 20-year period ended December 31, 2023, versus comparable Lipper categories, excluding funds of funds.
Capital Client Group, Inc.