American Funds 2065 Target Date Retirement Fund

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.

The fund invests in a portfolio of other American Funds, which the investment adviser periodically rebalances and modifies to shift the asset mix progressively toward greater fixed income and equity-income exposure as the fund approaches its target retirement date and beyond. The underlying funds span growth, growth-and-income, equity-income, balanced, and fixed income categories, allowing the adviser to adjust the combination to balance total return before retirement with income and capital preservation after. Because the fund's returns depend on the performance and allocation decisions of the underlying funds it holds, divergence from the fund's intended glide path may occur if the underlying funds do not perform as expected or if market movements cause the actual allocation to drift more than 10 percentage points from the target in any category.