Capital Group 
2040 Target Date
Retirement Trust

Set your sights on retirement and beyond.

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Capital Group 2040 glide path

This fund is designed for individuals who plan to retire and begin taking retirement withdrawals in 2040.

A glide path is a visual representation of how the investments in each of our funds change over time based on the target retirement date. Depending on the proximity to its target date, the fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital. Learn more about the benefits of our glide path.

This layer chart shows the glide path — the allocation of the mix of underlying funds over time — from age 20 to age 95. The five categories of underlying funds are: growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The chart shows that at age 20, the greatest allocation is to growth and growth-and-income funds (together, consisting of 85% of total assets), followed by balanced funds (10%) and fixed income funds (5%). As investors age and approach retirement, the allocation to growth and growth-and-income funds declines, and the allocations to equity-income funds, balanced funds and fixed income funds increase. After retirement, the growth and growth-and-income funds continue to decline, while allocations to fixed income funds grow substantially. At retirement, growth funds have 6% of assets, growth-and-income funds have 24% of assets, equity-income funds have 13% of assets, balanced funds have 12% of assets and fixed income funds have 45%. The allocation to equity-income funds also grows gradually over the course of retirement. At age 95, there are no allocations to growth funds. Growth-and-income funds have 5% of assets, equity-income funds have 28% of assets, balanced funds have 7% of assets and fixed income funds have 60% of assets.

Target allocations are as of December 31, 2023, and are subject to the oversight committee’s discretion. Over the course of the year, the investment will be implementing changes such as increasing exposure to New World Fund, decreasing American Funds Global Balanced Fund and adding an allocation to American Funds Emerging Markets Bond Fund. For current allocations to the underlying investments as of March 31, 2024, visit capitalgroup.com. New target allocations are expected to be reached by December 31, 2024. 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 characteristics statement. Underlying funds may be added or removed during the year.

Target allocation*

The following identifies allocation by investment objective. The asset mix seeks to balance risk and return over time by diversifying investments across asset types such as stocks and bonds. Stocks have the highest long-term return potential while bonds can help manage the risk of market declines.

This donut chart shows the percentage of assets allocated to each fund as a percentage of the whole.

 Growth

38%

 Growth-and-income

33%

 Equity-income

7%

 Balanced

12%

 Bond

10%

As of 3/31/2024

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.
* The total target allocations may not reconcile to 100% due to rounding.

One fund. Many benefits.

One fund. Many benefits. (Brochure)

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 For fund results or for information about your retirement plan, talk with your plan provider or employer, or visit your plan’s website.

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.
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.
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.
Use of this website is intended for U.S. residents only.
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.
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