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American Funds 2025 Target Date Retirement Fund®
![Retirement Target Date
fund](/retirement/participant/img/fund-colors/fund-target-date.gif)
Overview
American Funds 2025 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 2025
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:* 0.47%
- Investment expenses paid annually: $4.70 for a $1,000 balance
- Ticker symbol: RHDTX
*The expense ratios are as of each fund’s prospectus and include the weighted average expenses of the underlying funds. 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 FundSM will be added to the glide path effective January 2, 2015.
Growth
7.3%
- AMCAP Fund® 3.3%
- American Funds® Global Insight Fund 3.0%
- The Growth Fund of America® 0.4%
- New Perspective Fund® 0.2%
- SMALLCAP World Fund® 0.2%
Growth-and-income
24.5%
- American Mutual Fund® 6.1%
- Capital World Growth and Income Fund® 6.1%
- Fundamental Investors® 3.0%
- International Growth and Income Fund 1.1%
- The Investment Company of America® 3.0%
- Washington Mutual Investors Fund 5.0%
Equity-income/Balanced
24.9%
- American Balanced Fund® 8.1%
- American Funds® Global Balanced Fund 4.2%
- Capital Income Builder® 5.0%
- The Income Fund of America® 7.6%
Bond
43.3%
- American Funds Inflation Linked Bond Fund® 7.7%
- American Funds Mortgage Fund® 5.8%
- American Funds® Multi-Sector Income Fund 3.9%
- American Funds® Strategic Bond Fund 2.8%
- American High-Income Trust® 2.6%
- The Bond Fund of America® 7.8%
- Capital World Bond Fund® 1.9%
- Intermediate Bond Fund of America® 5.8%
- U.S. Government Securities Fund® 4.9%
Past results
The bar graph below shows the fund’s annual results and illustrates the fund’s fluctuations over the past 10 years. (These percentages are based on Class R-5E shares at net asset value after the share class inception date of May 15, 2002. All Class R-5E share results prior to this date, or prior to the date of first sale, are hypothetical based on Class A share results, adjusted for typical additional estimated expenses, and are calculated without a sales charge. These results are updated annually as of 12/31. Other share class results will vary.)
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.
Average annual total returns through 6/30/24
Class R-5E Shares
Latest10 years | Latest5 years | Latest3 years | Latestyear | |
---|---|---|---|---|
At net asset value | 6.17% | 6.45% | 2.10% | 10.76% |
With CDSC | 6.17% | 6.45% | 2.10% | 10.76% |
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. See results without waivers and/or reimbursements. Read details about how waivers and/or reimbursements affect the results for each fund.
Class R-5E shares were first offered on November 20, 2015. Class R-5E share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. View dates of first sale and specific expense adjustment information for Class R-5E shares.