American Funds 2040 Target Date Retirement Fund®

Retirement Target Date

Overview

American Funds 2040 Target Date Retirement Fund may be appropriate for investors seeking:

A prudent way to save for retirement in a single fund
An investment that adjusts over time to meet their changing needs
A portfolio of American Funds designed for someone retiring around 2040

Objective

Depending on the proximity to its target date, which we define as the year that corresponds roughly to the year in which the investor expects to retire, the fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital. The fund will increasingly emphasize income and conservation of capital by investing a greater portion of its assets in fixed income, equity-income and balanced funds as it approaches and passes its target date. In this way, the fund seeks to balance total return and stability over time.

Manager

The fund is managed by Capital Research and Management Company, one of the nation’s oldest, largest investment management firms. Since 1931, Capital Research has invested with a long-term focus based on thorough research and attention to risk.

Fund information

Began operations: 2/01/07
Expense ratio:* 0.73%
Investment expenses paid annually:† $7.30 for a $1,000 balance

Ticker symbol: FAUTX

*The expense ratios are as of each fund’s prospectus and include the weighted average expenses of the underlying funds. The expense ratios do not reflect sales charges or fees charged by financial intermediaries. Please see the fund’s most recent prospectus for details.
†You can estimate the investment expenses you’re paying annually by multiplying your balance in the fund by the net expense ratio.

Underlying funds

(as of 6/30/24; percentage of net assets; holdings are subject to change)

American Funds Global Balanced Fund^SM will be added to the glide path effective January 2, 2015.

Past results

The bar graph below shows the fund’s annual results and illustrates the fund’s fluctuations over the past 10 years.

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 here. For more current information and month-end results, click here. Share price and return will vary, so you may lose money. Investing for short periods makes losses more likely. Unless otherwise indicated, all results are calculated at net asset value.

Average annual total returns through 6/30/24

Class F-1 Shares

	Latest10 years	Latest5 years	Latest3 years	Latestyear
At net asset value	8.49%	9.63%	3.86%	16.62%

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which the results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund.

Class F-1 shares were first offered on March 15, 2001. Class F-1 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for estimated additional annual expenses. Results for certain funds with an inception date after March 15, 2001, also include hypothetical returns because those funds’ Class F-1 shares sold after the funds’ date of first offering. View dates of first sale and specific expense adjustment information for Class F-1 shares.

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