American Funds 2025 Target Date Retirement Fund®
Retirement Target Date
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
- Variable investment inception date: 2/28/12
- Net and gross expense ratios:* 1.11% / 1.11%
- Investment expenses paid annually:† $11.10 for a $1,000 balance
*Each expense ratio is the sum of the program charges and the operating expenses of the underlying mutual fund. The operating expenses of the underlying mutual funds are for institutional share classes (for example, Class R-6 for the American Funds). The expense ratios are as of the fund’s prospectus and include the weighted average expenses of the underlying funds. Please see the funds’ 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 11/30/24; 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
6.2%
Growth-and-income
24.2%
- American Mutual Fund® 6.0%
- Capital World Growth and Income Fund® 6.0%
- Fundamental Investors® 3.0%
- International Growth and Income Fund 1.0%
- The Investment Company of America® 3.0%
- Washington Mutual Investors Fund 5.0%
Equity-income/Balanced
25.5%
- American Balanced Fund® 8.1%
- American Funds® Global Balanced Fund 4.1%
- Capital Income Builder® 5.1%
- The Income Fund of America® 8.1%
Bond
44.1%
- American Funds Inflation Linked Bond Fund® 7.9%
- American Funds Mortgage Fund® 5.9%
- American Funds® Multi-Sector Income Fund 4.0%
- American Funds® Strategic Bond Fund 2.9%
- American High-Income Trust® 2.9%
- The Bond Fund of America® 7.9%
- Capital World Bond Fund® 1.9%
- Intermediate Bond Fund of America® 5.9%
- U.S. Government Securities Fund® 4.9%
Past results
The bar graph below shows the investment’s annual results and illustrates the fluctuations over the past 10 years. (The percentages are shown at unit value, updated annually as of 12/31.) If the results reflected deduction of the maximum sales charge of 5.75%, they would have been lower. Variable investment results are based upon a single investment at the beginning of the period being reported and retained throughout the period.
Investments are offered through a group annuity issued by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY. The investment above is an account under the annuity that invest solely in shares of an underlying mutual fund (“variable investments”). The name of the variable investment reflects the underlying mutual fund. Results for each variable investment are stated after deduction of a variable asset charge of 0.79% for administrative, service and other fees (the “program charge”). The expense ratio for each variable investment is the sum of the program charge and the operating expense of the underlying mutual fund.
The investment does not require an up-front or deferred sales charge. Results of the variable investment prior to its inception date are hypothetical based on the underlying fund’s oldest share class without a sales charge, adjusted for typical additional expenses; results are hypothetical because the variable investment’s underlying fund was not offered in the group annuity prior to the variable investment’s inception date.
Figures shown are past results and are not predictive of future results. Current and future results may be lower or higher than those shown here. For more current information and month-end results, click here. Prices and results will vary, so you may lose money. However, assets in the Fixed Account are guaranteed by Great-West Life & Annuity Insurance Company, and payments on investments are subject to the insurer’s claims paying ability. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Unit Class 5
| Average annual total returns | ||||||||
|---|---|---|---|---|---|---|---|---|
| As of month-end November 30, 2024 | As of quarter-end September 30, 2024 | |||||||
| Underlying fund inception date | Variable investment inception date | Year to date return | 10 year | 5 year | 3 year | 1 year | Variable investment lifetime | |
| At unit value | 2/01/07 | 2/28/12 | 10.59% | 6.23% | 6.96% | 3.57% | 20.43% | 7.45% |
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 American Fund.
Important information
In applying any particular asset allocation model to your own individual situation, you should consider your other assets, income and investments. For example, in addition to your retirement plan investments, you should consider any investments (including those in an Individual Retirement Account) and savings accounts.
Allocations may not achieve investment objectives. The portfolios’ risks are related to the risks of the underlying funds as described herein, in proportion to their allocations.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Investing in smaller companies also involves additional risks, and small-company stocks can fluctuate in price more than larger company stocks.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.
Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.
While not directly correlated to changes in interest rates, the values of inflation linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.
Although the fund is managed for investors on a projected retirement date time frame, the fund’s allocation strategy does not guarantee that their retirement goals will be met. American Funds investment professionals actively manage the fund’s portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date.
The target date is the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each fund for 30 years after it reaches its target date.
Underlying funds and their allocation percentages are subject to the oversight committee’s discretion and will evolve over time. Underlying funds may be added or removed during the year.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing. You can find a link to the prospectus at the top of the page.
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All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names are the property of their respective companies.
Capital Client Group, Inc.
Use of this website is intended for U.S. residents only.
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