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Investments / Capital Group Active-Passive Retirement Income Model - Conservative
 

Capital Group Active-Passive Retirement Income Model - Conservative

Capital Group Active-Passive Retirement Income Model - Conservative Composite
Summary
 

Capital Group Active-Passive Retirement Income Model - Conservative

Capital Group Active-Passive Retirement Income Model - Conservative Composite

Summary

Seeks the accomplishment of three investment objectives: current income, long-term growth of capital and conservation of capital, with an emphasis on income and conservation of capital utilizing both active and passive investments.

  • Portfolio Solutions Committee Members 7
  • WAERMP_WAERG
    Weighted Average Expense Ratio (%) 0.27

Underlying Funds

Growth and income
24%
Capital Group Conservative Equity ETF7%
Capital Group Dividend Growers ETF17%
Balanced
11%
Capital Group Core Balanced ETF11%
Income
38%
Capital Group Core Bond ETF13%
Capital Group Core Plus Income ETF8%
Capital Group Short Duration Income ETF6%
Capital Group U.S. Multi-Sector Income ETF11%
Passive ETFs
27%
iShares Core Dividend Growth ETF2%
iShares Core U.S. Aggregate Bond ETF2%
iShares MBS ETF3%
iShares U.S. Treasury Bond ETF3%
Schwab U.S. Dividend Equity ETF™2%
Vanguard Developed Markets ETF2%
Vanguard High Dividend Yield ETF3%
Vanguard Short-Term Inflation-Protected Securities ETF5%
Vanguard Short-Term Treasury ETF2%
Vanguard Total International Bond ETF3%
As of 12/09/2025 (updated daily).
MODEL HISTORICAL ALLOCATIONS
assetMix, UNDFUNDHAFMP

Asset Mix

U.S. Equities
27.7%
Non-U.S. Equities
12.0%
U.S. Bonds
51.3%
Non-U.S. Bonds
6.6%
assetMixCE
Cash Equivalents 1
2.5%
As of 11/30/2025 (updated monthly)

Market Capitalization

$157,059.88 Mil
Average
mktCapitalizationAvg
78.1%
Large
17.8%
Medium
3.1%
Small
As of 09/30/2025 (updated quarterly).

Description

Objective
Seeks to support sustained, inflation-adjusted withdrawals and the accomplishment of three investment objectives: current income, long-term growth of capital and conservation of capital, with an emphasis on income and conservation of capital, through allocation to generally higher quality fixed income as well as income-focused equities utilizing both active and passive investments.
Distinguishing Characteristics
Will attempt to achieve its investment objectives by investing in a mix of American Funds and passive third party ETFs in varying combinations and weightings over time. The Conservative Portfolio is designed to produce current income with somewhat less volatility than the other two portfolios in the Capital Group Active-Passive Retirement Income Model Portfolios. This approach is likely to lead to less downside risk, but also currently offers investors a lower level of current income and long-term growth potential.
Types of Investments
The underlying funds are weighted more towards funds investing in fixed income securities and will primarily consist of American Funds representing a variety of fund categories such as bond, equity-income, balanced, and growth-and-income funds as well as third-party ETFs. Through its investments in the underlying funds, the portfolio will have significant exposure to fixed-income securities and to dividend-paying common stocks.

Facts

ID
Model Composite Inception
11/30/2022
Companies/Issuers
7576
Holdings are as of 11/30/2025 (updated monthly).
Active/Passive
73% / 27%
RSG_YTD, RSG_1YR, RSGA_3YR, RSGA_5YR, RSGA_10YR, RSGA_LT, RSNF_YTD, RSNF_1YR, RSNFA_3YR, RSNFA_5YR, RSNFA_10YR, RSNFA_LT

Returns 2

  • Month-End Returns as of 11/30/2025
  • Quarter-End Returns as of 09/30/2025
    • Read important investment disclosures
    • ●Composite Gross
    • ●Composite Net
    • ●Index
    Returns table
    STRATEGYYear-to-date1 Year3 YearSince inception

    Index data refers to the Custom Index Retirement Income - Conservative.tooltip: The Custom Index Retirement Income - Conservative is a composite of the cumulative total returns for the following indexes with their respective weightings: 60% Bloomberg U.S. Aggregate Index, 30% S&P 500 Index and 10% MSCI All Country World Index ex USA. The blend is rebalanced monthly. Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. S&P 500 Index is a market-capitalization-weighted index based on the results of approximately 500 widely held common stocks. MSCI All Country World Index ex USA is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed- and emerging-market country indexes. When applicable, results through December 31, 2000, reflect dividends gross of withholding taxes, and dividends net of withholding taxes thereafter. The indexes are unmanaged, and results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

    Model composite inception: 11/30/2022.

    Returns greater than one year are annualized.

    Valuation

    Price/ Book tooltip: Price-to-book ratio compares a stock's market value to the value of total assets less total liabilities (book value). Adjusted for stock splits. Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund. Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting. Price/ Cash Flow tooltip: Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund/model. Price/ Earnings tooltip: Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.
    Model
    		3.012.817.6
    Custom Index Retirement Income - Conservative tooltip: The Custom Index Retirement Income - Conservative is a composite of the cumulative total returns for the following indexes with their respective weightings: 60% Bloomberg U.S. Aggregate Index, 30% S&P 500 Index and 10% MSCI All Country World Index ex USA. The blend is rebalanced monthly. Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. S&P 500 Index is a market-capitalization-weighted index based on the results of approximately 500 widely held common stocks. MSCI All Country World Index ex USA is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed- and emerging-market country indexes. When applicable, results through December 31, 2000, reflect dividends gross of withholding taxes, and dividends net of withholding taxes thereafter. The indexes are unmanaged, and results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
    		———
    Model as of 09/30/2025. Index as of 09/30/2025.

    Portfolio Solutions Committee

    • Years of Experience with Capital Group
    • Years of Experience with Investment Industry
    Michelle Black
    23
    30
    Brittain Ezzes
    3
    27
    Samir Mathur
    12
    32
    Damien McCann
    25
    Wesley Phoa
    26
    32
    John Queen
    23
    35
    Andrew Suzman
    31

    A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

    Portfolio managers as of 12/23/2025. Portfolio managers' years of experience are as of the previous calendar year end.

    Risk

    10YRLifetime

    Risk Measures

    Model
    stdDeviation
    Standard Deviation tooltip: 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.
    		—
    sharpe
    Sharpe Ratio (gross/net) tooltip: Sharpe ratios use standard deviation and excess return to determine reward per unit of risk. The higher the number, the better the portfolio's historical risk-adjusted performance.
    		—/—
    rSquared
    R-squared tooltip: R-squared is a measure of the correlation between a particular return and that of a benchmark index. A measure of 100 indicates that all of the return can be explained by movements in the benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be.
    		—
    Tracking Error tooltip: The tracking error is the standard deviation of the difference between the returns of an investment and its benchmark.
    		—
    beta
    Beta tooltip: Beta relatively measures sensitivity to market movements over a specified period of time. The beta of the market (represented by the benchmark index) is equal to 1; a beta higher than 1 implies that a return was more volatile than the market. A beta lower than 1 suggests that a return was less volatile than the market. Generally the higher the R-squared measure, the more reliable the beta measurement will be.
    		—
    captureDown
    Upside Capture Ratio (gross/net) tooltip: Ratio of a portfolio/composite's return during periods when the index was up, divided by the return of the index during those periods. For example, an up-capture ratio greater than 100 indicates the portfolio/composite produced a higher return than the index during periods when the index was up.
    		—/—
    captureUp
    Downside Capture Ratio (gross/net) tooltip: Ratio of a portfolio/composite's return during periods when the index was down, divided by the return of the index during those periods. For example, during periods when the index was down, a down-capture ratio greater than 100 indicates the portfolio/composite produced a lower return than the index.
    		—/—
    For the 10 Years ending 11/30/2025 (updated monthly). Beta and Capture Ratio calculated using the Custom Index Retirement Income - Conservative.tooltip: The Custom Index Retirement Income - Conservative is a composite of the cumulative total returns for the following indexes with their respective weightings: 60% Bloomberg U.S. Aggregate Index, 30% S&P 500 Index and 10% MSCI All Country World Index ex USA. The blend is rebalanced monthly. Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. S&P 500 Index is a market-capitalization-weighted index based on the results of approximately 500 widely held common stocks. MSCI All Country World Index ex USA is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed- and emerging-market country indexes. When applicable, results through December 31, 2000, reflect dividends gross of withholding taxes, and dividends net of withholding taxes thereafter. The indexes are unmanaged, and results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

    Maturity Breakdown

    Read important investment disclosures

    0-4.9 Years
    		26.9%
    5-9.9 Years
    		10.3%
    10-19.9 Years
    		5.5%
    20-29.9 Years
    		13.4%
    30+ Years
    		1.9%
    % of net assets as of 09/30/2025 (updated quarterly)

    qualitySummary
    Quality Summary

    Read important investment disclosures

    AAA/Aaa
    		15.8%
    AA/Aa
    		41.5%
    A
    		15.8%
    BBB/Baa
    		12.8%
    BB/Ba
    		5.8%
    B
    		3.2%
    CCC & Below
    		0.8%
    Unrated
    		4.3%
    % of net assets as of 11/30/2025 (updated monthly)
    TTLHLD

    Holdings

    Total Bond Holdings

    Corporate bonds & notes
    		34.0%
    Mortgage-backed obligations
    		28.7%
    U.S. government & government agency bonds & notes
    		24.8%
    Asset-backed obligations
    		7.7%
    Non-U.S. government/agency securities
    		4.7%
    Municipal securities
    		0.0%
    Other bonds & notes
    		0.0%
    % of net assets as of 09/30/2025 (updated quarterly).

    Go to the underlying fund pages to see detailed holdings information

    Geographic Breakdown

    Regions
    |
    Top Countries
     
    United States
    		78.9%
    Europe
    		11.0%
    Asia & Pacific Basin
    		5.0%
    Other (Including Canada & Latin America)
    		2.5%
    ALLCTRY_CECTRY
    Cash & equivalents 1
    		2.5%
    % of net assets as of 11/30/2025 (updated monthly)

    Expenses

    Weighted Average Expense Ratio

    WAERMP_WAERG
    Capital Group Active-Passive Retirement Income Model - Conservative
    		0.27
    WAERLC_AER
    Lipper Category Weighted Average
    		0.29
    Model as of the underlying funds' most recent prospectuses. Lipper Category as of 09/30/2025 (updated quarterly). The Lipper averages for the underlying funds are CGCV, CGDG, CGBL, CGCB, CGCP, CGSD, CGMS, DGRO, AGG, MBB, GOVT, SCHD, VEA, VYM, VTIP, VGSH and BNDX.

    Resources

    Literature for Capital Group Active-Passive Retirement Income Model - Conservative
    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.
    Totals may not reconcile due to rounding.
    Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
    Results and results-based figures shown are preliminary and subject to change.
    1
    Includes cash, short-term securities, other assets less liabilities, accruals, derivatives and forwards. It may also include investments in money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public.
    2
    Returns are in USD, are asset weighted, and reflect the reinvestment of dividends, interest and other earnings (net of withholding taxes).
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    Advisory services offered through Capital Research and Management Company (CRMC) and its RIA affiliates.
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