American Funds
Target Date Retirement Series®

Prospectus

January 1, 2022

 

 

               
Class A C T F-1 F-2 F-3 R-1
American Funds 2065 Target Date Retirement FundSM AAOTX CCLTX TDTTX FAXTX FBMTX FCQTX RAQTX
American Funds 2060 Target Date Retirement Fund® AANTX CCKTX TDSSX FAWTX FBKTX FCKTX RANTX
American Funds 2055 Target Date Retirement Fund® AAMTX CCJTX TDFWX FAJTX FBJTX FCJTX RAMTX
American Funds 2050 Target Date Retirement Fund® AALTX CCITX TDFYX FAITX FBITX DITFX RAITX
American Funds 2045 Target Date Retirement Fund® AAHTX CCHTX TDFUX FATTX FBHTX FCHTX RAHTX
American Funds 2040 Target Date Retirement Fund® AAGTX CCGTX TDFOX FAUTX FBGTX FCGTX RAKTX
American Funds 2035 Target Date Retirement Fund® AAFTX CCFTX TDFHX FAQTX FBFTX FDFTX RAFTX
American Funds 2030 Target Date Retirement Fund® AAETX CCETX TDFMX FAETX FBETX FCETX RAETX
American Funds 2025 Target Date Retirement Fund® AADTX CCDTX TDLMX FAPTX FBDTX FDDTX RADTX
American Funds 2020 Target Date Retirement Fund® AACTX CCCTX TDAMX FAOTX FBCTX FCCTX RACTX
American Funds 2015 Target Date Retirement Fund® AABTX CCBTX TDQMX FAKTX FBBTX FDBTX RAJTX
American Funds 2010 Target Date Retirement Fund® AAATX CCATX TDMMX FAATX FBATX DJTFX RAATX
Class R-2 R-2E R-3 R-4 R-5E R-5 R-6
American Funds 2065 Target Date Retirement FundSM RBOTX RBEOX RCPTX RDLTX RHLTX REOTX RFVTX
American Funds 2060 Target Date Retirement Fund® RBNTX RBENX RCNTX RDKTX RHKTX REMTX RFUTX
American Funds 2055 Target Date Retirement Fund® RBMTX RBEMX RCMTX RDJTX RHJTX REKTX RFKTX
American Funds 2050 Target Date Retirement Fund® RBITX RBHEX RCITX RDITX RHITX REITX RFITX
American Funds 2045 Target Date Retirement Fund® RBHTX RBHHX RCHTX RDHTX RHHTX REHTX RFHTX
American Funds 2040 Target Date Retirement Fund® RBKTX RBEKX RCKTX RDGTX RHGTX REGTX RFGTX
American Funds 2035 Target Date Retirement Fund® RBFTX RBEFX RCFTX RDFTX RHFTX REFTX RFFTX
American Funds 2030 Target Date Retirement Fund® RBETX RBEEX RCETX RDETX RHETX REETX RFETX
American Funds 2025 Target Date Retirement Fund® RBDTX RBEDX RCDTX RDDTX RHDTX REDTX RFDTX
American Funds 2020 Target Date Retirement Fund® RBCTX RBEHX RCCTX RDCTX RHCTX RECTX RRCTX
American Funds 2015 Target Date Retirement Fund® RBJTX RBEJX RCJTX RDBTX RHBTX REJTX RFJTX
American Funds 2010 Target Date Retirement Fund® RBATX RBEAX RCATX RDATX RHATX REATX RFTTX

 

 

Table of contents

 

     

Summaries:

American Funds 2065 Target Date Retirement Fund 1

American Funds 2060 Target Date Retirement Fund 7

American Funds 2055 Target Date Retirement Fund 13

American Funds 2050 Target Date Retirement Fund 19

American Funds 2045 Target Date Retirement Fund 25

American Funds 2040 Target Date Retirement Fund 31

American Funds 2035 Target Date Retirement Fund 37

American Funds 2030 Target Date Retirement Fund 43

American Funds 2025 Target Date Retirement Fund 50

American Funds 2020 Target Date Retirement Fund 57

American Funds 2015 Target Date Retirement Fund 64

American Funds 2010 Target Date Retirement Fund 71

Investment objectives, strategies and risks 78

Information regarding the underlying funds 85

Management and organization 91

 

Shareholder information 93

Purchase, exchange and sale of shares 94

How to sell shares 96

Distributions and taxes 98

Choosing a share class 99

Sales charges 99

Sales charge reductions and waivers 101

Rollovers from retirement plans to IRAs 105

Plans of distribution 106

Other compensation to dealers 107

Fund expenses 108

Financial highlights 109

Appendix 132

 
The U.S. Securities and Exchange Commission has not approved or disapproved of these securities. Further, it has not determined that this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.


 

 
 

 

American Funds 2065 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.30% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.14 0.14 0.21 0.17 0.14% 0.07% 0.17
Acquired (underlying) fund fees and expenses 0.37 0.37 0.37 0.37 0.37 0.37 0.37
Total annual fund operating expenses 0.81 1.51 0.83 0.79 0.51 0.44 1.54
Expense reimbursement2 0.06 0.06 0.06 0.06 0.06 0.06 0.06
Total annual fund operating expenses after expense reimbursement 0.75 1.45 0.77 0.73 0.45 0.38 1.48
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.41 0.26 0.22 0.17 0.22% 0.12% 0.07%
Acquired (underlying) fund fees and expenses 0.37 0.37 0.37 0.37 0.37 0.37 0.37
Total annual fund operating expenses 1.53 1.23 1.09 0.79 0.59 0.49 0.44
Expense reimbursement2 0.06 0.06 0.06 0.06 0.06 0.06 0.06
Total annual fund operating expenses after expense reimbursement 1.47 1.17 1.03 0.73 0.53 0.43 0.38

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

2 The investment adviser is currently reimbursing a portion of the other expenses. This reimbursement will be in effect through at least January 1, 2023. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time.

 

1     American Funds Target Date Retirement Series / Prospectus


 
 

 

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The example reflects the expense reimbursement described above through the expiration date of such reimbursement and total annual fund operating expenses thereafter. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $647 $248 $327 $75 $46 $39 $151 $150 $119
3 years 813 471 502 246 158 135 481 477 384
5 years 993 818 693 433 279 240 834 829 670
10 years 1,514 1,607 1,244 972 635 549 1,829 1,818 1,483
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $105 $75 $54 $44 $39 1 year $148
3 years 341 246 183 151 135 3 years 471
5 years 595 433 323 268 240 5 years 818
10 years 1,323 972 732 610 549 10 years 1,607

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 13% of the average value of its portfolio.

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

American Funds Target Date Retirement Series / Prospectus     2


 
 

 

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

3     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

American Funds Target Date Retirement Series / Prospectus     4


 
 

 

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

5     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investment results Because the fund began operations on March 27, 2020, information regarding investment results for a full calendar year is not available as of the date of this prospectus.

Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 2 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 2 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 2 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

American Funds Target Date Retirement Series / Prospectus     6


 
 

 

American Funds 2060 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.26% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.09 0.15 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.37 0.37 0.37 0.37 0.37 0.37 0.37
Total annual fund operating expenses 0.71 1.46 0.77 0.74 0.46 0.38 1.48
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.36 0.21 0.16 0.11 0.16% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.37 0.37 0.37 0.37 0.37 0.37 0.37
Total annual fund operating expenses 1.48 1.18 1.03 0.73 0.53 0.43 0.38

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $643 $249 $327 $76 $47 $39 $151 $151 $120
3 years 789 462 490 237 148 122 468 468 375
5 years 947 797 667 411 258 213 808 808 649
10 years 1,407 1,543 1,180 918 579 480 1,768 1,768 1,432
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $105 $75 $54 $44 $39 1 year $149
3 years 328 233 170 138 122 3 years 462
5 years 569 406 296 241 213 5 years 797
10 years 1,259 906 665 542 480 10 years 1,543

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 12% of the average value of its portfolio.

7     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

American Funds Target Date Retirement Series / Prospectus     8


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

9     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

American Funds Target Date Retirement Series / Prospectus     10


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has experienced substantial growth in net assets.

         
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years Lifetime
R-6 – Before taxes 3/27/2015 19.44% 13.35% 11.17%
A – Before taxes 3/27/2015 12.07 11.64 9.66
– After taxes on distributions 11.40 10.98 9.06
– After taxes on distributions and sale of fund shares 7.62 9.18 7.61
         
Share classes (before taxes) Inception date 1 year 5 years Lifetime
C 3/27/2015 17.10% 12.11% 9.96%
F-1 3/27/2015 18.95 12.95 10.80
F-2 3/27/2015 19.34 13.22 11.06
F-3 1/27/2017 19.37 N/A 13.88
R-1 3/27/2015 18.01 12.12 10.07
R-2 3/27/2015 18.10 12.11 9.97
R-2E 3/27/2015 18.44 12.46 10.38
R-3 3/27/2015 18.61 12.61 10.44
R-4 3/27/2015 19.02 12.95 10.79
R-5E 11/20/2015 19.20 13.17 12.41
R-5 3/27/2015 19.32 13.29 11.11
       
Indexes 1 year 5 years Lifetime
(from Class R-6 inception)
S&P Target Date 2060 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 13.99% 11.71% 9.40%
S&P Target Date Through 2060 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 14.37 11.86 9.51
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.23
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 5.90
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.67

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

11     American Funds Target Date Retirement Series / Prospectus


 
 

 

Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 7 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 7 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

American Funds Target Date Retirement Series / Prospectus     12


 
 

 

American Funds 2055 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.25% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.14 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.37 0.37 0.37 0.37 0.37 0.37 0.37
Total annual fund operating expenses 0.70 1.45 0.76 0.74 0.46 0.38 1.48
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.21 0.16 0.11 0.16% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.37 0.37 0.37 0.37 0.37 0.37 0.37
Total annual fund operating expenses 1.47 1.18 1.03 0.73 0.53 0.43 0.38

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

$

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $642 $248 $326 $76 $47 $39 $151 $150 $120
3 years 786 459 487 237 148 122 468 465 375
5 years 942 792 662 411 258 213 808 803 649
10 years 1,395 1,531 1,169 918 579 480 1,768 1,757 1,432
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $105 $75 $54 $44 $39 1 year $148
3 years 328 233 170 138 122 3 years 459
5 years 569 406 296 241 213 5 years 792
10 years 1,259 906 665 542 480 10 years 1,531

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 14% of the average value of its portfolio.

13     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

American Funds Target Date Retirement Series / Prospectus     14


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

15     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

American Funds Target Date Retirement Series / Prospectus     16


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 2/1/2010 19.39% 13.35% 11.27% 11.79%
A – Before taxes 2/1/2010 12.19 11.65 10.27 10.83
– After taxes on distributions 11.41 10.81 9.41 N/A
– After taxes on distributions and sale of fund shares 7.76 9.15 8.19 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 17.14% 12.12% N/A 9.44%
F-1 2/21/2014 19.02 12.96 N/A 10.27
F-2 2/21/2014 19.29 13.25 N/A 10.54
F-3 1/27/2017 19.45 N/A N/A 13.90
R-1 2/1/2010 18.07 12.09 10.04% 10.55
R-2 2/1/2010 18.12 12.13 10.10 10.61
R-2E 8/29/2014 18.48 12.48 N/A 9.71
R-3 2/1/2010 18.62 12.62 10.53 11.05
R-4 2/1/2010 19.00 12.96 10.88 11.40
R-5E 11/20/2015 19.25 13.19 N/A 12.43
R-5 2/1/2010 19.42 13.31 11.22 11.74
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2055 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 13.86% 11.55% 9.82% 10.64%
S&P Target Date Through 2055 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 14.31 11.82 10.06 10.81
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 14.35
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 5.97
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 3.99

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

17     American Funds Target Date Retirement Series / Prospectus


 
 

 

Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

American Funds Target Date Retirement Series / Prospectus     18


 
 

 

American Funds 2050 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.25% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.14 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.36 0.36 0.36 0.36 0.36 0.36 0.36
Total annual fund operating expenses 0.69 1.44 0.75 0.73 0.45 0.37 1.47
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.21 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.36 0.36 0.36 0.36 0.36 0.36 0.36
Total annual fund operating expenses 1.46 1.17 1.02 0.72 0.51 0.42 0.37

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $641 $247 $325 $75 $46 $38 $150 $149 $119
3 years 783 456 484 233 144 119 465 462 372
5 years 937 787 657 406 252 208 803 797 644
10 years 1,384 1,520 1,157 906 567 468 1,757 1,746 1,420
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $104 $74 $52 $43 $38 1 year $147
3 years 325 230 164 135 119 3 years 456
5 years 563 401 285 235 208 5 years 787
10 years 1,248 894 640 530 468 10 years 1,520

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 14% of the average value of its portfolio.

19     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

American Funds Target Date Retirement Series / Prospectus     20


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

21     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

American Funds Target Date Retirement Series / Prospectus     22


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 19.42% 13.36% 11.29% 13.03%
A – Before taxes 2/1/2007 12.21 11.66 10.27 7.59
– After taxes on distributions 11.39 10.77 9.39 N/A
– After taxes on distributions and sale of fund shares 7.80 9.15 8.21 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 17.23% 12.14% N/A 9.47%
F-1 2/21/2014 19.01 12.97 N/A 10.27
F-2 2/21/2014 19.40 13.27 N/A 10.56
F-3 1/27/2017 19.51 N/A N/A 13.91
R-1 2/1/2007 18.18 12.10 10.05% 7.21
R-2 2/1/2007 18.21 12.14 10.11 7.25
R-2E 8/29/2014 18.53 12.49 N/A 9.71
R-3 2/1/2007 18.71 12.62 10.55 7.68
R-4 2/1/2007 19.03 12.98 10.90 8.03
R-5E 11/20/2015 19.33 13.21 N/A 12.44
R-5 2/1/2007 19.43 13.31 11.23 8.35
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2050 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 13.86% 11.44% 9.67% 11.81%
S&P Target Date Through 2050 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 14.31 11.79 10.03 12.09
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

23     American Funds Target Date Retirement Series / Prospectus


 
 

 

Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

American Funds Target Date Retirement Series / Prospectus     24


 
 

 

American Funds 2045 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.24% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.14 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.36 0.36 0.36 0.36 0.36 0.36 0.36
Total annual fund operating expenses 0.68 1.44 0.75 0.73 0.45 0.37 1.47
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.21 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.36 0.36 0.36 0.36 0.36 0.36 0.36
Total annual fund operating expenses 1.46 1.17 1.02 0.72 0.51 0.42 0.37

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $640 $247 $325 $75 $46 $38 $150 $149 $119
3 years 780 456 484 233 144 119 465 462 372
5 years 932 787 657 406 252 208 803 797 644
10 years 1,373 1,517 1,157 906 567 468 1,757 1,746 1,420
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $104 $74 $52 $43 $38 1 year $147
3 years 325 230 164 135 119 3 years 456
5 years 563 401 285 235 208 5 years 787
10 years 1,248 894 640 530 468 10 years 1,517

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 15% of the average value of its portfolio.

25     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

American Funds Target Date Retirement Series / Prospectus     26


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

27     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

American Funds Target Date Retirement Series / Prospectus     28


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 19.21% 13.22% 11.21% 12.96%
A – Before taxes 2/1/2007 11.93 11.51 10.19 7.54
– After taxes on distributions 11.10 10.61 9.32 N/A
– After taxes on distributions and sale of fund shares 7.64 9.03 8.14 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 16.91% 12.00% N/A 9.35%
F-1 2/21/2014 18.79 12.81 N/A 10.17
F-2 2/21/2014 19.10 13.11 N/A 10.45
F-3 1/27/2017 19.17 N/A N/A 13.74
R-1 2/1/2007 17.87 11.95 9.97% 7.16
R-2 2/1/2007 17.91 11.98 10.03 7.19
R-2E 8/29/2014 18.24 12.33 N/A 9.59
R-3 2/1/2007 18.44 12.48 10.48 7.63
R-4 2/1/2007 18.80 12.83 10.83 7.98
R-5E 11/20/2015 18.99 13.05 N/A 12.30
R-5 2/1/2007 19.14 13.15 11.16 8.30
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2045 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 13.66% 11.24% 9.49% 11.64%
S&P Target Date Through 2045 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 14.15 11.66 9.91 11.99
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

29     American Funds Target Date Retirement Series / Prospectus


 
 

 

Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

American Funds Target Date Retirement Series / Prospectus     30


 
 

 

American Funds 2040 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.25% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.14 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.35 0.35 0.35 0.35 0.35 0.35 0.35
Total annual fund operating expenses 0.68 1.43 0.74 0.72 0.44 0.36 1.46
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.20 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.35 0.35 0.35 0.35 0.35 0.35 0.35
Total annual fund operating expenses 1.45 1.15 1.01 0.71 0.50 0.41 0.36

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $640 $246 $324 $74 $45 $37 $149 $148 $117
3 years 780 452 481 230 141 116 462 459 365
5 years 932 782 651 401 246 202 797 792 633
10 years 1,373 1,509 1,145 894 555 456 1,746 1,735 1,398
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $103 $73 $51 $42 $37 1 year $146
3 years 322 227 160 132 116 3 years 452
5 years 558 395 280 230 202 5 years 782
10 years 1,236 883 628 518 456 10 years 1,509

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 17% of the average value of its portfolio.

31     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

American Funds Target Date Retirement Series / Prospectus     32


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

33     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

American Funds Target Date Retirement Series / Prospectus     34


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/27/2009 18.77% 12.99% 11.09% 12.12%
A – Before taxes 2/1/2007 11.58 11.29 10.08 7.45
– After taxes on distributions 10.73 10.37 9.17 N/A
– After taxes on distributions and sale of fund shares 7.44 8.84 8.03 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 16.50% 11.76% N/A 9.18%
F-1 2/21/2014 18.34 12.59 N/A 9.98
F-2 2/21/2014 18.67 12.88 N/A 10.27
F-3 1/27/2017 18.78 N/A N/A 13.51
R-1 2/1/2007 17.43 11.73 9.84% 7.07
R-2 2/1/2007 17.53 11.76 9.91 7.11
R-2E 8/29/2014 17.88 12.12 N/A 9.40
R-3 2/1/2007 18.07 12.26 10.36 7.55
R-4 2/1/2007 18.37 12.61 10.70 7.89
R-5E 11/20/2015 18.66 12.85 N/A 12.10
R-5 2/1/2007 18.77 12.95 11.04 8.22
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2040 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 13.37% 10.95% 9.26% 10.63%
S&P Target Date Through 2040 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 13.46 11.36 9.74 11.05
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 14.79
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 6.56
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.22

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

35     American Funds Target Date Retirement Series / Prospectus


 
 

 

Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

American Funds Target Date Retirement Series / Prospectus     36


 
 

 

American Funds 2035 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.25% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.14 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.34 0.34 0.34 0.34 0.34 0.34 0.34
Total annual fund operating expenses 0.67 1.42 0.73 0.71 0.43 0.35 1.45
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.20 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.34 0.34 0.34 0.34 0.34 0.34 0.34
Total annual fund operating expenses 1.44 1.14 1.00 0.70 0.49 0.40 0.35

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $640 $245 $323 $73 $44 $36 $148 $147 $116
3 years 777 449 478 227 138 113 459 456 362
5 years 927 776 646 395 241 197 792 787 628
10 years 1,362 1,497 1,134 883 542 443 1,735 1,724 1,386
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $102 $72 $50 $41 $36 1 year $145
3 years 318 224 157 128 113 3 years 449
5 years 552 390 274 224 197 5 years 776
10 years 1,225 871 616 505 443 10 years 1,497

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 17% of the average value of its portfolio.

37     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

American Funds Target Date Retirement Series / Prospectus     38


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

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Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

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Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 17.55% 12.44% 10.77% 12.56%
A – Before taxes 2/1/2007 10.49 10.76 9.76 7.23
– After taxes on distributions 9.55 9.83 8.84 N/A
– After taxes on distributions and sale of fund shares 6.80 8.40 7.75 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 15.33% 11.23% N/A 8.80%
F-1 2/21/2014 17.14 12.04 N/A 9.59
F-2 2/21/2014 17.49 12.33 N/A 9.88
F-3 1/27/2017 17.61 N/A N/A 12.89
R-1 2/1/2007 16.30 11.20 9.55% 6.85
R-2 2/1/2007 16.29 11.22 9.60 6.89
R-2E 8/29/2014 16.57 11.55 N/A 8.98
R-3 2/1/2007 16.81 11.71 10.05 7.33
R-4 2/1/2007 17.11 12.04 10.39 7.67
R-5E 11/20/2015 17.41 12.29 N/A 11.57
R-5 2/1/2007 17.55 12.39 10.72 7.99
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2035 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 12.79% 10.47% 8.91% 11.02%
S&P Target Date Through 2035 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 12.76 10.89 9.44 11.53
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

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Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

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American Funds 2030 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.26% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.14 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.32 0.32 0.32 0.32 0.32 0.32 0.32
Total annual fund operating expenses 0.66 1.40 0.71 0.69 0.41 0.33 1.43
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.20 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.32 0.32 0.32 0.32 0.32 0.32 0.32
Total annual fund operating expenses 1.42 1.12 0.98 0.68 0.47 0.38 0.33

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $639 $243 $321 $70 $42 $34 $146 $145 $114
3 years 774 443 471 221 132 106 452 449 356
5 years 922 766 635 384 230 185 782 776 617
10 years 1,350 1,477 1,110 859 518 418 1,713 1,702 1,363
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $100 $69 $48 $39 $34 1 year $143
3 years 312 218 151 122 106 3 years 443
5 years 542 379 263 213 185 5 years 766
10 years 1,201 847 591 480 418 10 years 1,477

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 21% of the average value of its portfolio.

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Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

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Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

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Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and an underlying fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in an underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the underlying fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing an underlying fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.

Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation-linked bonds may also reduce an underlying fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the underlying fund.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the underlying fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the underlying fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The underlying fund’s use of derivatives may result in losses to the underlying fund, and investing in derivatives may reduce the underlying fund’s returns and increase the underlying fund’s price volatility. The underlying fund’s counterparty to a derivative transaction (including, if applicable, the underlying fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the underlying fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as

American Funds Target Date Retirement Series / Prospectus     46


 
 

 

market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Liquidity risk — Certain underlying fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the underlying fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

47     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 15.16% 11.06% 10.08% 11.92%
A – Before taxes 2/1/2007 8.23 9.38 9.06 6.74
– After taxes on distributions 7.25 8.46 8.12 N/A
– After taxes on distributions and sale of fund shares 5.42 7.26 7.14 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 12.91% 9.84% N/A 7.80%
F-1 2/21/2014 14.73 10.67 N/A 8.60
F-2 2/21/2014 15.08 10.96 N/A 8.89
F-3 1/27/2017 15.21 N/A N/A 11.32
R-1 2/1/2007 13.92 9.83 8.85% 6.38
R-2 2/1/2007 13.92 9.85 8.92 6.41
R-2E 8/29/2014 14.23 10.20 N/A 7.91
R-3 2/1/2007 14.43 10.33 9.36 6.84
R-4 2/1/2007 14.77 10.68 9.70 7.19
R-5E 11/20/2015 14.98 10.89 N/A 10.25
R-5 2/1/2007 15.10 11.00 10.03 7.51
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2030 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 11.91% 9.78% 8.41% 10.45%
S&P Target Date Through 2030 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 11.82 10.26 9.01 11.06
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or
U.S. federal income taxes)
7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

American Funds Target Date Retirement Series / Prospectus     48


 
 

 

Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

49     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2025 Target Date Retirement Fund

Investment objectives 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.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.26% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.14 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Total annual fund operating expenses 0.64 1.38 0.69 0.67 0.39 0.31 1.41
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.21 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Total annual fund operating expenses 1.40 1.11 0.96 0.66 0.45 0.36 0.31

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $637 $240 $319 $68 $40 $32 $144 $143 $113
3 years 768 437 465 214 125 100 446 443 353
5 years 911 755 625 373 219 174 771 766 612
10 years 1,327 1,455 1,087 835 493 393 1,691 1,680 1,352
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $98 $67 $46 $37 $32 1 year $140
3 years 306 211 144 116 100 3 years 437
5 years 531 368 252 202 174 5 years 755
10 years 1,178 822 567 456 393 10 years 1,455

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 18% of the average value of its portfolio.

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Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

51     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

American Funds Target Date Retirement Series / Prospectus     52


 
 

 

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in lower quality, higher yielding debt securities rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined by the investment adviser to be of equivalent quality, which securities are sometimes referred to as “junk bonds.”

Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation-linked bonds may also reduce an underlying fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the underlying fund.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and an underlying fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in an underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the underlying fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing an underlying fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the underlying fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the underlying fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The underlying fund’s use of derivatives may result in losses to the underlying fund, and investing in derivatives may reduce the underlying fund’s returns and increase the underlying fund’s price volatility. The underlying fund’s counterparty to a derivative transaction (including, if applicable, the underlying fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the underlying fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Liquidity risk — Certain underlying fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the underlying fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

53     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

American Funds Target Date Retirement Series / Prospectus     54


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 13.67% 9.87% 9.25% 11.05%
A – Before taxes 2/1/2007 6.79 8.21 8.24 6.09
– After taxes on distributions 5.78 7.33 7.31 N/A
– After taxes on distributions and sale of fund shares 4.52 6.31 6.44 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 11.52% 8.68% N/A 6.86%
F-1 2/21/2014 13.38 9.48 N/A 7.65
F-2 2/21/2014 13.68 9.76 N/A 7.93
F-3 1/27/2017 13.73 N/A N/A 10.04
R-1 2/1/2007 12.49 8.65 8.04% 5.72
R-2 2/1/2007 12.50 8.68 8.10 5.76
R-2E 8/29/2014 12.82 9.00 N/A 6.94
R-3 2/1/2007 13.06 9.15 8.54 6.19
R-4 2/1/2007 13.35 9.48 8.88 6.53
R-5E 11/20/2015 13.57 9.71 N/A 9.15
R-5 2/1/2007 13.65 9.80 9.20 6.85
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2025 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 11.22% 9.08% 7.88% 9.80%
S&P Target Date Through 2025 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 11.59 9.60 8.54 10.49
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

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Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

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American Funds 2020 Target Date Retirement Fund

Investment objectives 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 continues past its target date. In this way, the fund seeks to balance total return and stability over time.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.27% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.13 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.29 0.29 0.29 0.29 0.29 0.29 0.29
Total annual fund operating expenses 0.64 1.37 0.67 0.66 0.38 0.30 1.40
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.21 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.29 0.29 0.29 0.29 0.29 0.29 0.29
Total annual fund operating expenses 1.39 1.10 0.95 0.65 0.44 0.35 0.30

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $637 $239 $317 $67 $39 $31 $143 $142 $112
3 years 768 434 459 211 122 97 443 440 350
5 years 911 750 614 368 213 169 766 761 606
10 years 1,327 1,446 1,064 822 480 381 1,680 1,669 1,340
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $97 $66 $45 $36 $31 1 year $139
3 years 303 208 141 113 97 3 years 434
5 years 525 362 246 197 169 5 years 750
10 years 1,166 810 555 443 381 10 years 1,446

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 20% of the average value of its portfolio.

57     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

American Funds Target Date Retirement Series / Prospectus     58


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

59     American Funds Target Date Retirement Series / Prospectus


 
 

 

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in lower quality, higher yielding debt securities rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined by the investment adviser to be of equivalent quality, which securities are sometimes referred to as “junk bonds.”

Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation-linked bonds may also reduce an underlying fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the underlying fund.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and an underlying fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in an underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the underlying fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing an underlying fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the underlying fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the underlying fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The underlying fund’s use of derivatives may result in losses to the underlying fund, and investing in derivatives may reduce the underlying fund’s returns and increase the underlying fund’s price volatility. The underlying fund’s counterparty to a derivative transaction (including, if applicable, the underlying fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the underlying fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Liquidity risk — Certain underlying fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the underlying fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

American Funds Target Date Retirement Series / Prospectus     60


 
 

 

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

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Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 10.99% 8.57% 8.14% 9.81%
A – Before taxes 2/1/2007 4.24 6.94 7.14 5.30
– After taxes on distributions 3.04 5.96 6.18 N/A
– After taxes on distributions and sale of fund shares 3.03 5.24 5.48 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 8.86% 7.39% N/A 5.96%
F-1 2/21/2014 10.58 8.19 N/A 6.73
F-2 2/21/2014 10.89 8.47 N/A 7.01
F-3 1/27/2017 11.03 N/A N/A 8.58
R-1 2/1/2007 9.74 7.37 6.94% 4.94
R-2 2/1/2007 9.81 7.40 7.00 4.99
R-2E 8/29/2014 10.10 7.72 N/A 5.98
R-3 2/1/2007 10.25 7.87 7.44 5.41
R-4 2/1/2007 10.55 8.19 7.76 5.74
R-5E 11/20/2015 10.85 8.42 N/A 7.94
R-5 2/1/2007 10.89 8.52 8.09 6.06
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2020 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.24% 8.29% 7.29% 9.05%
S&P Target Date Through 2020 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 11.04 8.94 7.95 9.79
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.04 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

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Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

63     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2015 Target Date Retirement Fund

Investment objectives 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 continues past its target date. In this way, the fund seeks to balance total return and stability over time.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.26% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.13 0.12 0.09% 0.01% 0.11
Acquired (underlying) fund fees and expenses 0.28 0.28 0.28 0.28 0.28 0.28 0.28
Total annual fund operating expenses 0.62 1.36 0.66 0.65 0.37 0.29 1.39
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.21 0.16 0.11 0.15% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.28 0.28 0.28 0.28 0.28 0.28 0.28
Total annual fund operating expenses 1.38 1.09 0.94 0.64 0.43 0.34 0.29

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $635 $238 $316 $66 $38 $30 $142 $140 $111
3 years 762 431 456 208 119 93 440 437 347
5 years 901 745 609 362 208 163 761 755 601
10 years 1,305 1,432 1,052 810 468 368 1,669 1,657 1,329
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $96 $65 $44 $35 $30 1 year $138
3 years 300 205 138 109 93 3 years 431
5 years 520 357 241 191 163 5 years 745
10 years 1,155 798 542 431 368 10 years 1,432

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 21% of the average value of its portfolio.

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Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

65     American Funds Target Date Retirement Series / Prospectus


 
 

 

Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

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Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in lower quality, higher yielding debt securities rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined by the investment adviser to be of equivalent quality, which securities are sometimes referred to as “junk bonds.”

Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation-linked bonds may also reduce an underlying fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the underlying fund.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and an underlying fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in an underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the underlying fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing an underlying fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the underlying fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the underlying fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The underlying fund’s use of derivatives may result in losses to the underlying fund, and investing in derivatives may reduce the underlying fund’s returns and increase the underlying fund’s price volatility. The underlying fund’s counterparty to a derivative transaction (including, if applicable, the underlying fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the underlying fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Liquidity risk — Certain underlying fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the underlying fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

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Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

American Funds Target Date Retirement Series / Prospectus     68


 
 

 

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 9.96% 8.01% 7.49% 9.03%
A – Before taxes 2/1/2007 3.35 6.38 6.48 4.96
– After taxes on distributions 2.17 5.37 5.41 N/A
– After taxes on distributions and sale of fund shares 2.46 4.77 4.89 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 7.76% 6.84% N/A 5.41%
F-1 2/21/2014 9.49 7.61 N/A 6.18
F-2 2/21/2014 9.82 7.92 N/A 6.47
F-3 1/27/2017 9.97 N/A N/A 7.84
R-1 2/1/2007 8.69 6.80 6.28% 4.60
R-2 2/1/2007 8.66 6.84 6.34 4.65
R-2E 8/29/2014 8.98 7.16 N/A 5.44
R-3 2/1/2007 9.27 7.32 6.79 5.07
R-4 2/1/2007 9.47 7.63 7.11 5.40
R-5E 11/20/2015 9.79 7.86 N/A 7.41
R-5 2/1/2007 9.85 7.96 7.43 5.72
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2015 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.28% 7.79% 6.77% 8.32%
S&P Target Date Through 2015 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.62 8.25 7.34 9.06
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

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Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

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American Funds 2010 Target Date Retirement Fund

Investment objectives 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 continues past its target date. In this way, the fund seeks to balance total return and stability over time.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. For example, in addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 101 of the prospectus and on page 105 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

           
Shareholder fees (fees paid directly from your investment)
Share class: A C T All F share
classes
All R share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none
Redemption or exchange fees none none none none none
               
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 R-1
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.26% 1.00% 0.25% 0.25% none none 1.00%
Other expenses 0.08 0.08 0.13 0.12 0.09% 0.01% 0.12
Acquired (underlying) fund fees and expenses 0.27 0.27 0.27 0.27 0.27 0.27 0.27
Total annual fund operating expenses 0.61 1.35 0.65 0.64 0.36 0.28 1.39
               
Share class: R-2 R-2E R-3 R-4 R-5E R-5 R-6
Management fees none none none none none none none
Distribution and/or service (12b-1) fees 0.75% 0.60% 0.50% 0.25% none none none
Other expenses 0.35 0.21 0.16 0.11 0.16% 0.06% 0.01%
Acquired (underlying) fund fees and expenses 0.27 0.27 0.27 0.27 0.27 0.27 0.27
Total annual fund operating expenses 1.37 1.08 0.93 0.63 0.43 0.33 0.28

1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                   
Share class: A C T F-1 F-2 F-3 R-1 R-2 R-2E
1 year $634 $237 $315 $65 $37 $29 $142 $139 $110
3 years 759 428 453 205 116 90 440 434 343
5 years 896 739 603 357 202 157 761 750 595
10 years 1,293 1,421 1,040 798 456 356 1,669 1,646 1,317
                 
Share class: R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C
1 year $95 $64 $44 $34 $29 1 year $137
3 years 296 202 138 106 90 3 years 428
$5 years 515 351 241 185 157 5 years 739
10 years 1,143 786 542 418 356 10 years 1,421

Portfolio turnover The fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 20% of the average value of its portfolio.

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Principal investment strategies The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies. For example, growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income instruments.

The fund is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed.

The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth-and-income funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the fund on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

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Principal risks This section describes the principal risks associated with investing in the fund and its underlying funds. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

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Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in lower quality, higher yielding debt securities rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined by the investment adviser to be of equivalent quality, which securities are sometimes referred to as “junk bonds.”

Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation-linked bonds may also reduce an underlying fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the underlying fund.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and an underlying fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in an underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the underlying fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing an underlying fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the underlying fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the underlying fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The underlying fund’s use of derivatives may result in losses to the underlying fund, and investing in derivatives may reduce the underlying fund’s returns and increase the underlying fund’s price volatility. The underlying fund’s counterparty to a derivative transaction (including, if applicable, the underlying fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the underlying fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Liquidity risk — Certain underlying fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the underlying fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

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Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

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Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. Going forward, the fund will be using the S&P Target Date Index (as opposed to the S&P Target Date Through Index) as its primary prospectus benchmark index because the S&P Target Date Index is more similar to how the fund is managed. The S&P 500 Index represents a portion of the equity securities in the U.S. in which certain underlying funds may invest. The MSCI® All Country World ex USA Index represents a portion of the equity securities outside the U.S. in which certain underlying funds may invest. The Bloomberg U.S. Aggregate Index represents a portion of the fixed-income securities in which certain underlying funds may invest. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

*We have elected to show Class R-6 shares because the share class has 10 years of history and has experienced substantial growth in net assets.

           
Average annual total returns For the periods ended December 31, 2020 (with maximum sales charge for Class A):
Share class Inception date 1 year 5 years 10 years Lifetime
R-6 – Before taxes 7/13/2009 9.25% 7.55% 6.99% 8.48%
A – Before taxes 2/1/2007 2.60 5.93 5.99 4.63
– After taxes on distributions 1.50 5.00 4.85 N/A
– After taxes on distributions and sale of fund shares 1.94 4.41 4.43 N/A
           
Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 2/21/2014 7.07% 6.39% N/A 5.05%
F-1 2/21/2014 8.86 7.17 N/A 5.81
F-2 2/21/2014 9.12 7.45 N/A 6.09
F-3 1/27/2017 9.28 N/A N/A 7.32
R-1 2/1/2007 8.14 6.37 5.80% 4.29
R-2 2/1/2007 8.06 6.39 5.86 4.32
R-2E 8/29/2014 8.40 6.70 N/A 5.05
R-3 2/1/2007 8.54 6.84 6.28 4.75
R-4 2/1/2007 8.83 7.17 6.61 5.08
R-5E 11/20/2015 9.09 7.40 N/A 6.97
R-5 2/1/2007 9.16 7.49 6.94 5.39
         
Indexes 1 year 5 years 10 years Lifetime
(from Class R-6 inception)
S&P Target Date 2010 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 9.95% 7.22% 6.15% 7.45%
S&P Target Date Through 2010 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.24 7.55 6.68 8.22
S&P 500 Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 18.40 15.22 13.88 15.61
MSCI All Country World ex USA Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 10.65 8.93 4.92 7.64
Bloomberg U.S. Aggregate Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 7.51 4.44 3.84 4.16

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account (IRA).

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Management

Investment adviser Capital Research and Management CompanySM

Target Date Solutions Committee The investment adviser’s Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which the fund invests. The members of the Target Date Solutions Committee, who are jointly and primarily responsible for the portfolio management of the fund, are:

     
Investment professional/
Series title (if applicable)
Investment professional
experience in this fund
Primary title with investment adviser
Bradley J. Vogt President and Trustee 10 years Partner – Capital Research Global Investors
Michelle J. Black Senior Vice President 2 years Partner – Capital Solutions Group
David A. Hoag Senior Vice President 2 years Partner – Capital Fixed Income Investors
Joanna F. Jonsson Senior Vice President 7 years Partner – Capital World Investors
Samir Mathur Senior Vice President 2 years Partner – Capital Solutions Group
Wesley K. Phoa Senior Vice President 10 years Partner – Capital Solutions Group
Shannon Ward Senior Vice President 1 year Partner – Capital Fixed Income Investors
 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account or payroll deduction savings plan account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial professional or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may be subject to state and local taxes unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend the fund over another investment. Ask your individual financial professional or visit your financial intermediary’s website for more information.

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Investment objectives, strategies and risks

Except where the context indicates otherwise, all references herein to the “fund” apply to each of the funds in the series.

The investment objectives, strategies and risks of each fund are summarized below:

Each fund in the series is designed for investors who plan to retire in, or close to, the fund’s target date – that is, the year designated in the fund’s name. However, investors may purchase shares of the fund throughout the life of the fund, including after the target date. In an effort to achieve the fund’s overall investment objective, the fund will continue to provide equity exposure after the target date has passed. Depending on its proximity to its target date, each fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital. For example, the 2065 Fund, a fund with more years before its target date, will emphasize growth more than a fund closer to (or past) its target date, such as the 2010 Fund. As each fund approaches and passes its target date, it will increasingly emphasize income and conservation of capital by investing a greater portion of its assets in fixed income, equity-income and balanced funds. In this way, each fund seeks to balance total return and stability over time.

The investment adviser periodically reviews the investment strategies and asset mix of the underlying funds and may, from time to time, rebalance or modify the asset mix of the funds and change the underlying fund investments. The investment adviser may also determine not to change the underlying fund allocations, particularly in response to short-term market movements, if in its opinion the combination of underlying funds is appropriate to meet the fund’s investment objective.

According to its current investment approach, the investment adviser will continue to manage the fund for approximately thirty years after the fund reaches its target date. As reflected in the glide path below, the fund’s asset allocations will change throughout this period. Thirty years after its target date, the fund may be combined with other funds in a single portfolio with an investment allocation that will not evolve beyond that which is in effect at that time.

The following glide path chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes relatively more conservative – both prior to and after retirement – as time elapses. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund’s asset allocation strategy promotes asset accumulation prior to retirement, but it is also intended to provide equity exposure throughout retirement to deliver capital growth potential. The fund will seek dividend income to help dampen risk while maintaining equity exposure, and will invest in fixed income securities to help provide current income, capital preservation and inflation protection. The allocations shown reflect the target allocations as of January 1, 2022.

Investment approach

The investment adviser anticipates that each fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above. For example, a 40% target allocation to growth funds is not expected to be greater than 50% nor less than 30%. The investment adviser will monitor the funds on an ongoing basis and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.

Each fund may, from time to time, take temporary defensive positions by holding all, or a significant portion, of its assets in cash, cash equivalents or other securities that may be deemed appropriate by the fund’s investment adviser. The investment adviser may determine

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that it is appropriate to take such action in response to certain circumstances, such as periods of market turmoil. A larger percentage of such holdings could negatively affect the fund's investment results in a period of rising market prices. A larger percentage of cash or cash equivalents could reduce the fund's magnitude of loss in the event of falling market prices and provide liquidity to make additional investments or to meet redemptions.

While it has no present intention to do so, the series’ board may change the fund’s investment objectives without shareholder approval upon 60 days’ written notice to shareholders. Each fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. Further, the fund categories represent differing investment objectives and strategies. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the United States (including, where applicable, in emerging markets). Growth-and-income funds seek long-term growth and income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or fixed income investments, while fixed income funds seek current income through investments in bonds or in other fixed income investments.

When a fund invests in one or more underlying American Funds, it will invest in Class R-6 shares of such underlying funds. Class R-6 shares have relatively low expenses, which reduce overall fund expenses. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. In addition to investing in a mix of American Funds, each fund may also invest in funds in the American Funds Insurance Series or other funds managed by Capital Research and Management Company and its affiliates, subject to obtaining any necessary regulatory approvals and notifying shareholders in advance.

Investments in each fund are subject to risks related to the investment adviser's allocation choices. The selection of the underlying funds and the allocation of the fund's assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. For investors who are close to, or in retirement, each fund's equity exposure may result in investment volatility that could reduce an investor's available retirement assets at a time when the investor has a need to withdraw funds. For investors who are further from retirement, there is a risk a fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

The success of each fund will be impacted by the results of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds. For more information, please refer to “Information regarding the underlying funds” section of this prospectus.

Through the underlying funds in which it invests, the fund will, over time, have significant exposure to a range of different security types, including growth-oriented and dividend-paying common stocks and a variety of fixed income investments. Through its underlying fund investments, the fund will typically have exposure to issuers domiciled outside the United States, including issuers domiciled in emerging markets. The fund will also have exposure to issuers with a broad range of market capitalizations, including smaller capitalization issuers.

In terms of fixed income exposure, the underlying funds in which the fund invests may hold debt securities with a wide range of qualities and maturities. Through these underlying funds, the fund may have significant exposure to bonds rated BB+ or below and Ba1 or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser, or unrated but determined by the fund’s investment adviser to be of equivalent quality. Such securities are sometimes referred to as “junk bonds.” Certain of the underlying funds may also hold securities issued and guaranteed by the U.S. government, securities issued by federal agencies and instrumentalities and securities backed by mortgages or other assets. Those underlying funds may also invest in the debt securities of governments, agencies, corporations and other entities domiciled outside the United States.

An underlying fund may also hold cash or cash equivalents. The percentage of an underlying fund invested in such holdings varies and depends on various factors, including market conditions and purchases and redemptions of fund shares. For temporary defensive purposes, an underlying fund may hold all, or a significant portion, of its assets in cash, cash equivalents or other similar securities that may be deemed appropriate by the underlying fund’s investment adviser. The investment adviser may determine that it is appropriate to take such action in response to certain circumstances, such as periods of market turmoil. A larger percentage of such holdings could negatively affect an underlying fund’s investment results in a period of rising market prices. A larger percentage of cash or cash equivalents could reduce an underlying fund’s magnitude of loss in the event of falling market prices and provide liquidity to make additional investments or to meet redemptions.

An underlying fund may invest in other funds managed by the investment adviser or its affiliates to more effectively invest in a diversified set of securities in a specific asset class such as money market instruments, bonds and other securities (“Central Funds”). Shares of Central Funds are only offered for purchase to the fund’s investment adviser and its affiliates and other funds, investment vehicles and accounts managed by the fund’s investment adviser and its affiliates. When an underlying fund invests in Central Funds, the fund bears its proportionate share of the expenses of the Central Funds in which the underlying fund invests but does not bear additional management fees through the underlying fund’s investment in such Central Funds. The investment results of the portions of an underlying fund’s assets invested in the Central Funds will be based upon the investment results of the Central Funds.

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The following are principal risks associated with investing in the fund.

Allocation risk — Investments in the fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. The American Funds 2030 Target Date Retirement Fund, American Funds 2025 Target Date Retirement Fund, American Funds 2020 Target Date Retirement Fund and American Funds 2015 Target Date Retirement Fund may invest in an underlying fixed income fund that is a nondiversified investment company under the Investment Company Act of 1940. To the extent that the fund invests a larger percentage of its assets in securities of one or more issuers, poor performance by these securities could have a greater adverse impact on the fund’s investment results. For investors who are close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor has a need to withdraw funds. For investors who are farther from retirement, there is a risk the fund may invest too much in investments designed to ensure capital conservation and current income, which may prevent the investor from meeting his or her retirement goals.

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds, as described below.

The following are principal risks associated with investing in the underlying funds. Each fund will invest in some of the underlying funds for which underlying risks are listed below, but may not invest in all of them. Accordingly, not all of the principal risks listed below necessarily apply to each fund's underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the underlying funds invest in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the underlying funds’ investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests. These risks may be even greater in the case of smaller capitalization stocks. As the fund nears its target date, a decreasing proportion of the fund’s assets will be invested in underlying funds that invest primarily in stocks. Accordingly, these risks are expected to be more significant the further the fund is removed from its target date and are expected to lessen as the fund approaches its target date.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting and auditing practices and standards and different regulatory, legal and reporting requirements, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased

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risks of delayed settlement of securities purchased or sold by an underlying fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by factors such as the interest rates, maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The underlying funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks. These risks will be more significant as the fund approaches and passes its target date because a greater proportion of the fund’s assets will consist of underlying funds that primarily invest in bonds.

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in lower quality, higher yielding debt securities rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined by the investment adviser to be of equivalent quality, which securities are sometimes referred to as “junk bonds.”

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation-linked bonds may also reduce an underlying fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the underlying fund.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as residential mortgage loans, home equity loans, mortgages on commercial buildings, consumer loans and equipment leases. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and an underlying fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in an underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the underlying fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing an underlying fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks, as well as additional risks associated with the assets underlying those securities.

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Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the underlying fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the underlying fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The underlying fund’s use of derivatives may result in losses to the underlying fund, and investing in derivatives may reduce the underlying fund’s returns and increase the underlying fund’s price volatility. The underlying fund’s counterparty to a derivative transaction (including, if applicable, the underlying fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the underlying fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Interest rate risk — The values and liquidity of the securities held by the underlying fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The underlying fund may invest in variable and floating rate securities. When the underlying fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the underlying fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Liquidity risk — Certain underlying fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the underlying fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

Management — The investment adviser to the fund and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

The following are additional risks associated with investing in the underlying funds and are not principal risks associated with the fund’s investment strategies. Each fund will invest in some of the underlying funds for which additional risks are listed below, but may not invest in all of them. Accordingly, not all of the additional risks listed below necessarily apply to each fund's underlying funds.

Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies, particularly during times of market turmoil.

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries tend to have less developed political, economic and legal systems and accounting and auditing practices and standards than those in developed countries. Accordingly, the governments of these countries may be less stable and more likely to intervene in the market economy, for example, by imposing capital controls, nationalizing a company or industry, placing restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or imposing punitive taxes that could adversely affect the prices of securities. Information regarding issuers in emerging markets may be limited, incomplete or inaccurate, and there may be fewer rights and remedies available to the fund and its shareholders. In addition, the economies of these countries may be dependent on relatively few industries, may have limited access to capital and may be more susceptible to changes in local and global trade conditions and downturns in the world economy. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the underlying fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.

Investing in future delivery contracts — An underlying fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve an underlying fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the underlying fund’s market exposure, and the market price of the securities that the underlying fund contracts to repurchase could drop below their purchase price. While an underlying fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the underlying fund may be reduced by engaging in such transactions. In addition, these transactions increase the turnover rate of the underlying fund.

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Investing in futures contracts — In addition to the risks generally associated with investing in derivative instruments, futures contracts are subject to the creditworthiness of the clearing organizations, exchanges and futures commission merchants with which the underlying fund transacts. Additionally, although futures require only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a futures contract could greatly exceed the initial amount invested. While futures contracts are generally liquid instruments, under certain market conditions futures may be deemed to be illiquid. For example, the underlying fund may be temporarily prohibited from closing out its position in a futures contract if intraday price change limits or limits on trading volume imposed by the applicable futures exchange are triggered. If the underlying fund is unable to close out a position on a futures contract, the underlying fund would remain subject to the risk of adverse price movements until the underlying fund is able to close out the futures position. The ability of the underlying fund to successfully utilize futures contracts may depend in part upon the ability of the underlying fund’s investment adviser to accurately forecast interest rates and other economic factors and to assess and predict the impact of such economic factors on the futures in which the underlying fund invests. If the investment adviser incorrectly forecasts economic developments or incorrectly predicts the impact of such developments on the futures in which it invests, the underlying fund could be exposed to the risk of loss.

Investing in swaps — Swaps, including interest rate swaps and credit default swap indices, or CDSI, are subject to many of the risks generally associated with investing in derivative instruments. Additionally, although swaps require no or only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a swap contract could greatly exceed the initial amount invested. The use of swaps involves the risk that the investment adviser will not accurately predict anticipated changes in interest rates or other economic factors, which may result in losses to the underlying fund. If the underlying fund enters into a bilaterally negotiated swap transaction, the counterparty may fail to perform in accordance with the terms of the swap agreement. If a counterparty defaults on its obligations under a swap agreement, the underlying fund may lose any amount it expected to receive from the counterparty, potentially including amounts in excess of the underlying fund’s initial investment. Certain swap transactions are subject to mandatory central clearing or may be eligible for voluntary central clearing. Although clearing interposes a central clearinghouse as the ultimate counterparty to each participant’s swap, central clearing will not eliminate (but may decrease) counterparty risk relative to uncleared bilateral swaps. Some swaps, such as CDSI, may be dependent on both the individual credit of the underlying fund’s counterparty and on the credit of one or more issuers of any underlying assets. If the underlying fund does not correctly evaluate the creditworthiness of its counterparty and, where applicable, of issuers of any underlying reference assets, the underlying fund’s investment in a swap may result in losses to the underlying fund.

Currency transactions — In addition to the risks generally associated with investing in derivative instruments, the use of forward currency contracts involves the risk that currency movements will not be accurately predicted by the investment adviser, which could result in losses to the underlying fund. While entering into forward currency contracts could minimize the risk of loss due to a decline in the value of the hedged currency, it could also limit any potential gain that may result from an increase in the value of the currency. Additionally, the adviser may use forward currency contracts to increase exposure to a certain currency or to shift exposure to currency fluctuations from one country to another. Forward currency contracts may expose the underlying fund to potential gains and losses in excess of the initial amount invested.

Portfolio turnover — The underlying fund may engage in frequent and active trading of its portfolio securities. Higher portfolio turnover may involve correspondingly greater transaction costs in the form of dealer spreads, brokerage commissions and other transaction costs on the sale of securities and on reinvestment in other securities. The sale of portfolio securities may also result in the realization of net capital gains, which are taxable when distributed to shareholders, unless the shareholder is exempt from taxation or his or her account is tax-favored. These costs and tax effects may adversely affect the underlying fund’s returns to shareholders. The fund’s portfolio turnover rate may vary from year to year, as well as within a year.

Exposure to country, region, industry or sector — Subject to the fund’s investment limitations, the underlying fund may have significant exposure to a particular country, region, industry or sector. Such exposure may cause the underlying fund to be more impacted by risks relating to and developments affecting the country, region, industry or sector, and thus its net asset value may be more volatile, than a fund without such levels of exposure. For example, if the underlying fund has significant exposure in a particular country, then social, economic, regulatory or other issues that negatively affect that country may have a greater impact on the underlying fund than on a fund that is more geographically diversified.

Lending of portfolio securities — Securities lending involves risks, including the risk that the loaned securities may not be returned in a timely manner or at all and/or the risk of a loss of rights in the collateral if a borrower or the lending agent defaults. These risks could be greater for non-U.S. securities. Additionally, the fund may lose money from the reinvestment of collateral received on loaned securities in investments that decline in value, default or do not perform as expected.

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Fund comparative indexes The investment results tables in this prospectus show how the fund’s average annual total returns compare with various broad measures of market results. The S&P Target Date Indexes are a series of unmanaged indexes composed of different allocations to stocks, bonds, and short-term investments that reflect reductions in potential risk over time. The S&P Target Date Style Index series (“Through” variant), a subset of the S&P Target Date Index series, comprises a set of multi-asset-class indexes, each corresponding to a particular target date. The Through variant indexes are based on funds with an asset allocation and glide path that aim to be more sensitive to longevity risk at, and beyond, the retirement date. The S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. The MSCI All Country World ex USA Index is a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed and emerging market country indexes. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. The Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

Fund results All fund results in this prospectus reflect the reinvestment of dividends and capital gain distributions, if any. Unless otherwise noted, fund results reflect any fee waivers and/or expense reimbursements in effect during the periods presented.

Portfolio holdings Portfolio holdings information for each fund in the series is available on our website at capitalgroup.com. A description of the funds’ policies and procedures regarding disclosure of information about their portfolio holdings is available in the statement of additional information.

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Information regarding the underlying funds The investment objectives and principal investment strategies of the underlying funds are summarized below and on the following pages. They should not be construed as an offer to purchase or sell the underlying funds. For additional and more current information regarding the underlying funds, investors should read the current prospectuses and statements of additional information of the underlying funds.

Each fund will invest in some, but not all, of the underlying funds listed below. Some underlying funds may not be underlying investments for any fund, while others may serve as underlying investments for multiple funds

The fund relies on the professional judgment of the investment adviser to the fund and to the underlying funds to make decisions about the underlying fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

Underlying funds – Growth funds

AMCAP Fund® The fund’s investment objective is to provide you with long-term growth of capital.

The fund invests primarily in common stocks of U.S. companies that have solid long-term growth records and the potential for good future growth. The fund may invest in common stocks and other securities of issuers domiciled outside the United States to a limited extent.

American Funds Global Insight FundSM The fund’s investment objective is to provide prudent growth of capital and conservation of principal.

The fund invests primarily in common stocks of issuers around the world that the investment adviser believes have the potential for growth, many of which have the potential to pay dividends. Under normal market conditions, the fund will invest at least 80% of its net assets in equity-type securities. The fund will allocate its assets among various countries, including the United States (but in no fewer than three countries). Under normal market conditions, the fund will invest significantly in issuers outside the United States (at least 40% of its net assets – unless market conditions are not deemed favorable by the fund’s investment adviser, in which case the fund would invest at least 30% of its net assets). The fund may invest up to 10% of its net assets in the securities of issuers based in emerging markets.

In pursuing the fund’s objective, the fund’s investment adviser focuses primarily on companies with attributes that are associated with long-term growth and resilience to market declines, such as strong management, participation in a growing market, strong balance sheets, payment of dividends and the potential for above average growth in earnings, revenues, book value, cash flow and/or return on assets.

EuroPacific Growth Fund® The fund’s investment objective is to provide you with long-term growth of capital.

The fund invests primarily in common stocks of issuers in Europe and the Pacific Basin that the investment adviser believes have the potential for growth. Growth stocks are stocks that the investment adviser believes have the potential for above-average capital appreciation.

Normally the fund will invest at least 80% of its net assets in securities of issuers in Europe and the Pacific Basin. A country will be considered part of Europe if it is part of the MSCI European indexes, and part of the Pacific Basin if any of its borders touches the Pacific Ocean. In determining the domicile of an issuer, the fund’s investment adviser will consider the domicile determination of a leading provider of global indexes, such as Morgan Stanley Capital International, and may also take into account such factors as where the company’s securities are listed and where the company is legally organized, maintains principal corporate offices, conducts its principal operations and/or generates revenues. The fund may invest a portion of its assets in common stocks and other securities of companies in emerging markets.

The Growth Fund of America® The fund’s investment objective is to provide you with growth of capital.

The fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. The fund invests primarily in common stocks of large and mid-capitalization issuers. The fund may invest up to 25% of its assets in securities of issuers domiciled outside the United States.

The New Economy Fund® The investment objective of the fund is long-term growth of capital.

The fund seeks to achieve its objective by investing in securities of companies that can benefit from innovation, exploit new technologies or provide products and services that meet the demands of an evolving global economy.

In pursuing its investment objective, the fund invests primarily in common stocks that the investment adviser believes have the potential for growth. The fund also invests in common stocks with the potential to pay dividends. However, current income is not expected to be significant, particularly in low yield environments. The fund may invest up to 50% of its assets in issuers based outside the United States, including those based in developing countries. The fund may also invest in the stocks of smaller capitalization companies.

New Perspective Fund® The fund’s investment objective is to provide you with long-term growth of capital.

The fund seeks to take advantage of investment opportunities generated by changes in international trade patterns and economic and political relationships by investing in common stocks of companies located around the world.

In pursuing its investment objective, the fund invests primarily in common stocks that the investment adviser believes have the potential for growth.

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New World Fund® The fund’s investment objective is long-term capital appreciation.

The fund invests primarily in common stocks of companies with significant exposure to countries with developing economies and/or markets. The securities markets of these countries may be referred to as emerging markets. The fund may invest in equity securities of any company, regardless of where it is based (including developed countries), if the fund’s investment adviser determines that a significant portion of the company’s assets or revenues (generally 20% or more) is attributable to developing countries.

Under normal market conditions, the fund invests at least 35% of its assets in equity and debt securities of issuers primarily based in qualified countries that have developing economies and/or markets. The fund may also, to a limited extent, invest in securities of issuers based in nonqualified developing countries.

In determining whether a country is qualified, the fund’s investment adviser considers such factors as the country’s per capita gross domestic product, the percentage of the country’s economy that is industrialized, market capital as a percentage of gross domestic product, the overall regulatory environment, the presence of government regulation limiting or banning foreign ownership, and restrictions on repatriation of initial capital, dividends, interest and/or capital gains.

The fund may also invest in debt securities of issuers, including issuers of lower rated bonds (rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser), with exposure to these countries. Bonds rated Ba1 or BB+ or below are sometimes referred to as “junk bonds.”

In addition, the fund may invest in nonconvertible debt securities of issuers, including issuers of lower rated bonds and government bonds, that are primarily based in qualified countries or that have a significant portion of their assets or revenues attributable to developing countries.

SMALLCAP World Fund® The fund’s investment objective is to provide you with long-term growth of capital.

Normally the fund invests at least 80% of its net assets in growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) of companies with small market capitalizations. The investment adviser currently defines “small market capitalization” companies to be companies with market capitalizations of $6.0 billion or less. The investment adviser has periodically re-evaluated and adjusted this definition and may continue to do so in the future. The fund may continue to hold securities of a portfolio company that subsequently appreciates above the small market capitalization threshold. Because of this, the fund may have less than 80% of its net assets in small market capitalization stocks at any given time. Under normal circumstances, the fund will invest a significant portion of its assets outside the United States, including in emerging markets.

Underlying funds – Growth-and-income funds

American Mutual Fund® The fund strives for the balanced accomplishment of three objectives: current income, growth of capital and conservation of principal.

The fund seeks to invest primarily in common stocks of companies that are likely to participate in the growth of the American economy and whose dividends appear to be sustainable. The fund invests primarily in securities of issuers domiciled in the United States and Canada.

The fund’s equity investments are limited to securities of companies that are included on its eligible list. Securities are added to, or deleted from, the eligible list based upon a number of factors, such as the fund’s investment objectives and policies, whether a company is deemed to be an established company of sufficient quality and a company’s dividend payment prospects. Although the fund focuses on investments in medium to larger capitalization companies, the fund’s investments are not limited to a particular capitalization size.

The fund may also invest in bonds and other debt securities, including those issued by the U.S. government and by federal agencies and instrumentalities. Debt securities purchased by the fund are rated investment grade or better or determined by the fund’s investment adviser to be of equivalent quality.

Capital World Growth and Income Fund® The fund’s investment objective is to provide you with long-term growth of capital while providing current income.

The fund invests primarily in common stocks of well-established companies located around the world, many of which have the potential to pay dividends. The fund invests, on a global basis, in common stocks that are denominated in U.S. dollars or other currencies. Under normal market circumstances the fund will invest a significant portion of its assets in securities of issuers domiciled in a number of countries outside the United States, and such investments may include securities domiciled in developing countries.

The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund tends to invest in stocks that the investment adviser believes to be relatively resilient to market declines.

Fundamental Investors® The fund’s investment objective is to achieve long-term growth of capital and income.

The fund seeks to invest primarily in common stocks of companies that appear to offer superior opportunities for capital growth and most of which have a history of paying dividends. In addition, the fund may invest significantly in securities of issuers domiciled outside the United States.

International Growth and Income FundSM The fund’s investment objective is to provide you with long-term growth of capital while providing current income.

The fund invests primarily in stocks of larger, well-established companies domiciled outside the United States, including in emerging markets and developing countries, that the investment adviser believes have the potential for growth and/or to pay dividends. The fund

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currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States whose securities are listed primarily on exchanges outside the United States, cash, cash equivalents (including shares of money market or similar funds managed by the investment adviser or its affiliates) and securities held as collateral issued by U.S. issuers. The fund therefore expects to be invested in numerous countries outside the United States.

The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund focuses on stocks of companies with strong earnings that pay dividends.

The Investment Company of America® The fund’s investment objectives are to achieve long-term growth of capital and income.

The fund invests primarily in common stocks, most of which have a history of paying dividends. The fund’s equity investments are generally limited to securities of companies that are included on its eligible list. Securities are added to, or deleted from, the eligible list based upon a number of factors, such as the fund’s investment objectives and policies, whether a company is deemed to be an established company of sufficient quality and a company’s dividend payment prospects. Although the fund focuses on investments in medium to larger capitalization companies, the fund’s investments are not limited to a particular capitalization size. In the selection of common stocks and other securities for investment, potential for capital appreciation and future dividends are given more weight than current yield.

The fund may invest up to 15% of its assets, at the time of purchase, in securities of issuers domiciled outside the United States.

Washington Mutual Investors FundSM The fund’s investment objective is to produce income and to provide an opportunity for growth of principal consistent with sound common stock investing.

The fund invests primarily in common stocks of established companies that are listed on, or meet the financial listing requirements of, the New York Stock Exchange and have a strong record of earnings and dividends. The fund strives to accomplish its objective through fundamental research, careful selection and broad diversification. In the selection of common stocks and other securities for investment, current and potential income as well as the potential for long-term capital appreciation are considered. The fund seeks to provide an above-average yield in its quarterly income distribution in relation to the S&P 500 Index (a broad, unmanaged index). The fund strives to maintain a fully invested, diversified portfolio, consisting primarily of high-quality common stocks.

The fund has Investment Standards originally based upon criteria established by the United States District Court for the District of Columbia for determining eligibility under the Court’s Legal List procedure, which was in effect for many years. The fund has an “Eligible List” — based on the Investment Standards — of investments considered appropriate for a prudent investor seeking opportunities for income and growth of principal consistent with common stock investing. The investment adviser generates and maintains the Eligible List in compliance with the fund’s Investment Standards and selects the fund’s investments exclusively from the issuers on the Eligible List.

Underlying funds – Equity-income funds

Capital Income Builder® The fund has two primary investment objectives. It seeks (1) to provide a level of current income that exceeds the average yield on U.S. stocks generally and (2) to provide a growing stream of income over the years. The fund’s secondary objective is to provide growth of capital.

The fund normally invests at least 90% of its assets in income-producing securities (with at least 50% of its assets in common stocks and other equity securities). The fund invests primarily in a broad range of income-producing securities, including common stocks and bonds. In seeking to provide a level of current income that exceeds the average yield on U.S. stocks, the fund generally looks to the average yield on stocks of companies listed on the S&P 500 Index. The fund may also invest significantly in common stocks, bonds and other securities of issuers domiciled outside the United States.

The Income Fund of America® The fund’s investment objectives are to provide you with current income while secondarily striving for capital growth.

Normally the fund invests primarily in income-producing securities. These include equity securities, such as dividend-paying common stocks, and debt securities, such as interest-paying bonds.

Generally at least 60% of the fund’s assets will be invested in common stocks and other equity-type securities. However, the composition of the fund’s investments in equity, debt and cash or money market instruments may vary substantially depending on various factors, including market conditions. The fund may also invest up to 30% of its assets in equity securities of issuers domiciled outside the United States, including issuers in developing countries. In addition, the fund may invest up to 20% of its assets in lower quality, higher yielding nonconvertible debt securities (rated Ba1 and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser); such securities are sometimes referred to as “junk bonds.” The fund may also invest up to 10% of its assets in debt securities of issuers domiciled outside the United States; however, these securities must be denominated in U.S. dollars.

Underlying funds – Balanced funds

American Balanced Fund® The investment objectives of the fund are: (1) conservation of capital, (2) current income and (3) long-term growth of capital and income.

The fund uses a balanced approach to invest in a broad range of securities, including common stocks and investment-grade bonds (rated Baa3 or better or BBB- or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality). The fund also invests in securities issued and guaranteed by the U.S. government and by federal agencies and instrumentalities. In addition, the fund may invest a portion of its assets in common stocks, most of which have a history of paying dividends, bonds and other securities of issuers domiciled outside the United States.

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Normally the fund will maintain at least 50% of the value of its assets in common stocks and at least 25% of the value of its assets in debt securities, including money market securities. Although the fund focuses on investments in medium to larger capitalization companies, the fund’s investments are not limited to a particular capitalization size.

American Funds Global Balanced FundSM This fund seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.

As a balanced fund with global scope, the fund seeks to invest in equity and debt securities around the world that offer the opportunity for growth and/or provide dividend income, while also constructing the portfolio to protect principal and limit volatility.

Normally the fund will maintain at least 45% of the value of its assets in common stocks and other equity investments. Although the fund’s equity investments focus on medium to larger capitalization companies, the fund’s investments are not limited to a particular capitalization size.

Normally the fund will invest at least 25% of the value of its assets in bonds and other debt securities (including money market instruments). These will consist of investment-grade securities (rated Baa3 or better or BBB– or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser).

The fund will allocate its assets among various countries, including the United States (but in no fewer than three countries). Under normal market conditions, the fund will invest at least 40% of its net assets in issuers outside the United States, unless market conditions are not deemed favorable by the fund’s investment adviser, in which case the fund would invest at least 30% of its net assets in issuers outside the United States.

The fund’s ability to invest in issuers outside the United States includes investing in emerging markets.

The fund may invest in bonds and other debt securities, including securities issued and guaranteed by the U.S. government, securities issued by federal agencies and instrumentalities and securities backed by mortgages or other assets. The fund may also invest in securities of governments, agencies, corporations and other entities domiciled outside the United States. These investments will typically be denominated in currencies other than U.S. dollars.

Underlying funds – Fixed income funds

American Funds Inflation Linked Bond Fund® The fund’s investment objective is to provide inflation protection and income consistent with investment in inflation-linked securities.

The fund seeks to provide inflation protection and income by investing primarily in inflation-linked securities. Normally, at least 80% of the fund’s assets will be invested in inflation-linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Inflation-linked bonds are structured to protect against inflation by linking the bond’s principal and interest payments to an inflation index so that principal and interest adjust to reflect changes in the index. For example, U.S. Treasury Inflation-Protected Securities (TIPS) are linked to the Consumer Price Index for Urban Consumers (CPURNSA). Other sovereign governments and corporations also issue inflation-linked securities that are tied to their own local consumer price index or the CPURNSA.

The fund will invest at least 80% of its assets in securities guaranteed or sponsored by the U.S. government without regard to the quality rating assigned to the U.S. government by a Nationally Recognized Statistical Rating Organization (NRSRO). To the extent the fund invests in other debt securities, the fund will invest in debt securities with quality ratings of Baa3 or better or BBB- or better by NRSROs designated by the fund’s investment adviser or in debt securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may invest in debt securities with a wide range of maturities.

The fund may also invest in futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

American Funds Mortgage Fund® The fund’s investment objective is to provide current income and preservation of capital.

Normally at least 80% of the fund’s assets is invested in mortgage-related securities, including securities collateralized by mortgage loans and contracts for future delivery of such securities (such as to be announced contracts and mortgage dollar rolls). The fund invests primarily in mortgage-related securities that are sponsored or guaranteed by the U.S. government, such as securities issued by government-sponsored entities that are not backed by the full faith and credit of the U.S. government, and nongovernment mortgage-related securities that are rated in the Aaa or AAA rating category (by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser) or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may also invest in debt issued by federal agencies. In the case of to be announced contracts, each contract for future delivery is normally of short duration.

The fund may also invest in futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

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American High-Income Trust® The fund’s primary investment objective is to provide you with a high level of current income. Its secondary investment objective is capital appreciation.

The fund invests primarily in higher yielding and generally lower quality debt securities (rated Ba1 / BB+ or below by Nationally Recognized Statistical Rating Organizations or unrated but determined by the fund’s investment adviser to be of equivalent quality), including corporate loan obligations. Such securities are sometimes referred to as “junk bonds.” The fund may also invest a portion of its assets in securities of issuers domiciled outside the United States.

The fund may also invest in futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objectives and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

The fund is designed for investors seeking a high level of current income and who are able to tolerate greater credit risk and price fluctuations than those that exist in funds investing in higher quality debt securities.

The Bond Fund of America® The fund’s investment objective is to provide as high a level of current income as is consistent with the preservation of capital.

The fund seeks to maximize your level of current income and preserve your capital by investing primarily in bonds. Normally the fund invests at least 80% of its assets in bonds and other debt securities, which may be represented by derivatives. The fund invests at least 60% of its assets in debt securities (excluding derivatives) rated A3 or better or A- or better by Nationally Recognized Statistical Ratings Organizations designated by the fund’s investment adviser, or in debt securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser, and in U.S. government securities, money market instruments, cash or cash equivalents.

The fund may invest in debt securities and mortgage-backed securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government.

The fund may invest in inflation-linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Inflation-linked bonds are structured to protect against inflation by linking the bond’s principal and interest payments to an inflation index, such as the Consumer Price Index for Urban Consumers, so that principal and interest adjust to reflect changes in the index.

The fund may invest in futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

The fund may invest up to 10% of its assets in debt securities rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Ratings Organizations designated by the fund’s investment adviser, or in debt securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser. Securities rated Ba1 or below and BB+ or below are sometimes referred to as “junk bonds.”

Capital World Bond Fund® The fund’s investment objective is to provide you, over the long term, with a high level of total return consistent with prudent investment management. Total return comprises the income generated by the fund and the changes in the market value of the fund’s investments.

Under normal market circumstances, the fund invests at least 80% of its assets in bonds and other debt securities, which may be represented by derivatives. The fund invests primarily in debt securities, including asset-backed and mortgage-backed securities and securities of governmental, supranational and corporate issuers denominated in various currencies, including U.S. dollars. The fund will invest substantially in securities of issuers domiciled in a number of countries outside the United States, and such investments may include securities of issuers domiciled in developing countries. Normally, the fund invests substantially in investment-grade bonds (rated Baa3 or better or BBB– or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser). The fund may also invest up to 25% of its assets in lower quality, higher yielding debt securities (rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser). Such securities are sometimes referred to as “junk bonds.” The total return of the fund will be the result of interest income, changes in the market value of the fund’s investments and changes in the values of other currencies relative to the U.S. dollar.

The fund may invest in forward currency contracts, futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

The fund is nondiversified, which allows it to invest a greater percentage of its assets in any one issuer than would otherwise be the case. However, the fund intends to limit its investments in the securities of any single issuer.

Intermediate Bond Fund of America® The fund’s investment objective is to provide you with current income consistent with the maturity and quality standards described in its prospectus and preservation of capital.

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The fund will invest at least 80% of its assets in bonds (bonds include any debt instrument and money market instrument) which may be represented by derivatives. The fund maintains a portfolio of bonds, other debt securities and money market instruments having a dollar-weighted average effective maturity of no less than three years and no greater than five years under normal market conditions. The fund invests primarily in bonds and other debt securities with quality ratings of A– or better or A3 or better (by a Nationally Recognized Statistical Rating Organization designated by the fund’s investment adviser) or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may invest up to 10% of its assets in bonds and other debt securities rated in the BBB or Baa rating category (by a Nationally Recognized Statistical Rating Organization designated by the fund’s investment adviser) or unrated but determined to be of equivalent quality by the fund’s investment adviser.

The fund primarily invests in debt securities denominated in U.S. dollars. These include securities issued and guaranteed by the U.S. government, debt securities and mortgage-backed securities issued by government-sponsored entities and federal agencies, and instrumentalities that are not backed by the full faith and credit of the U.S. government. In addition, the fund may invest in mortgage-backed securities issued by private issuers and asset-backed securities (securities backed by assets such as auto loans, credit card receivables or other providers of credit).

The fund may invest in inflation-linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Inflation-linked bonds are structured to protect against inflation by linking the bond’s principal and interest payments to an inflation index, such as the Consumer Price Index for Urban Consumers, so that principal and interest adjust to reflect changes in the index.

The fund may also invest in futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

Short-Term Bond Fund of America® The fund’s investment objective is to provide you with current income, consistent with the maturity and quality standards described in its prospectus, and preservation of capital.

The fund will invest at least 80% of its assets in bonds (bonds include any debt instrument and cash equivalents, and may be represented by derivatives). The fund maintains a portfolio of bonds, other debt securities and money market instruments having a dollar-weighted average effective maturity no greater than three years and consisting primarily of debt securities rated AA– or Aa3 or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may invest up to 10% of its assets in debt securities in the A rating category or in unrated securities determined by the fund’s investment adviser to be of equivalent quality.

The fund primarily invests in debt securities denominated in U.S. dollars, including securities issued and guaranteed by the U.S. government, securities of corporate issuers, mortgage-backed securities and debt securities and mortgage-backed securities issued by government sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government. In addition, the fund may invest in asset-backed securities (securities backed by assets such as auto loans, credit card receivables or other providers of credit).

The fund may invest in inflation-linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Inflation-linked bonds are structured to protect against inflation by linking the bond’s principal and interest payments to an inflation index, such as the Consumer Price Index for Urban Consumers, so that principal and interest adjust to reflect changes in the index.

The fund may also invest in futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

U.S. Government Securities Fund® The fund’s investment objective is to provide a high level of current income consistent with prudent investment risk and preservation of capital.

Normally at least 80% of the fund’s assets will be invested in securities that are guaranteed or sponsored by the U.S. government, its agencies and instrumentalities, including bonds and other debt securities denominated in U.S. dollars, which may be represented by derivatives. The fund may also invest in mortgage-backed securities issued by federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government.

The fund may invest in inflation-linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Inflation-linked bonds are structured to protect against inflation by linking the bond’s principal and interest payments to an inflation index, such as the Consumer Price Index for Urban Consumers, so that principal and interest adjust to reflect changes in the index.

The fund may invest in futures contracts and swaps, which are types of derivatives. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

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Management and organization

Investment adviser Capital Research and Management Company, an experienced investment management organization founded in 1931, serves as the investment adviser to the funds and other funds, including the underlying American Funds. Capital Research and Management Company is a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at 333 South Hope Street, Los Angeles, California 90071. Capital Research and Management Company manages the investment portfolio and business affairs of the funds. Effective January 1, 2016, the investment adviser eliminated the management fee payable by each fund to it. Accordingly, as reflected in the "Annual fund operating expenses" table for each fund under "Fees and expenses of the fund," no management fees are paid by each fund to the investment adviser. Please see the statement of additional information for further details. A discussion regarding the basis for the approval of the series’ Investment Advisory and Service Agreement by the series' board of trustees is contained in the series' semi-annual report to shareholders for the fiscal period ended April 30, 2021.

Capital Research and Management Company manages equity assets through three equity investment divisions and fixed income assets through its fixed income investment division, Capital Fixed Income Investors. The three equity investment divisions — Capital International Investors, Capital Research Global Investors and Capital World Investors — make investment decisions independently of one another.

The equity investment divisions may, in the future, be incorporated as wholly owned subsidiaries of Capital Research and Management Company. In that event, Capital Research and Management Company would continue to be the investment adviser, and day-to-day investment management of equity assets would continue to be carried out through one or more of these subsidiaries. Although not currently contemplated, Capital Research and Management Company could incorporate its fixed income investment division in the future and engage it to provide day-to-day investment management of fixed income assets. Capital Research and Management Company and each of the funds it advises have received an exemptive order from the U.S. Securities and Exchange Commission that allows Capital Research and Management Company to use, upon approval of the fund’s board, its management subsidiaries and affiliates to provide day-to-day investment management services to the fund, including making changes to the management subsidiaries and affiliates providing such services. The fund’s shareholders have approved this arrangement; however, there is no assurance that Capital Research and Management Company will incorporate its investment divisions or exercise any authority granted to it under the exemptive order.

The Capital SystemSM for the underlying funds Capital Research and Management Company uses a system of multiple portfolio managers in managing mutual fund assets for the underlying funds. Under this approach, the portfolio of each underlying fund is divided into segments managed by individual managers. In addition, Capital Research and Management Company’s investment analysts may make investment decisions with respect to a portion of an underlying fund’s portfolio. Investment decisions are subject to the underlying fund’s objective(s), policies and restrictions and the oversight of the appropriate investment-related committees of Capital Research and Management Company and its investment divisions.

Certain senior members of Capital Fixed Income Investors, the investment adviser’s fixed income investment division, serve on the Portfolio Strategy Group. The group utilizes a research-driven process with input from the investment adviser’s analysts, portfolio managers and economists to define investment themes on a range of macroeconomic factors, including duration, yield curve and sector allocation. Where applicable, the investment decisions made by an underlying fund’s fixed income portfolio managers are informed by the investment themes discussed by the group.

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Portfolio management for the series Capital Research and Management Company is the investment adviser to the series. For each fund in the series, the Target Date Solutions Committee develops the allocation approach and selects the underlying funds in which each fund invests.

The table below shows the investment industry experience and role in management for each of the series’ investment professionals.

       
Investment professional Investment industry experience Experience in this series Role in management of the series
Bradley J. Vogt 34 years, all with Capital Research and Management Company or affiliate 10 years Serves as a member of the Target Date Solutions Committee
Michelle J. Black 27 years in total; 20 years with Capital Research and Management Company or affiliate 2 years Serves as a member of the Target Date Solutions Committee
David A. Hoag 34 years in total; 30 years with Capital Research and Management Company or affiliate 2 years Serves as a member of the Target Date Solutions Committee
Joanna F. Jonsson 33 years in total; 31 years with Capital Research and Management Company or affiliate 7 years Serves as a member of the Target Date Solutions Committee
Samir Mathur 29 years in total; 9 years with Capital Research and Management Company or affiliate 2 years Serves as a member of the Target Date Solutions Committee
Wesley K. Phoa 28 years in total; 23 years with Capital Research and Management Company or affiliate 10 years Serves as a member of the Target Date Solutions Committee
Shannon Ward 30 years in total; 5 years with Capital Research and Management Company or affiliate 1 year Serves as a member of the Target Date Solutions Committee
 

Information regarding the investment professionals’ compensation, their ownership of securities in the series and other accounts they manage is in the statement of additional information.

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Certain privileges and/or services described on the following pages of this prospectus and in the statement of additional information may not be available to you, depending on your investment dealer or retirement plan recordkeeper. Please see your financial professional or retirement plan recordkeeper for more information.

Shareholder information

Shareholder services American Funds Service Company, the fund’s transfer agent, offers a wide range of services that you can use to alter your investment program should your needs or circumstances change. These services may be terminated or modified at any time upon 60 days’ written notice.

A more detailed description of policies and services is included in the series’ statement of additional information and the owner’s guide sent to new American Funds shareholders entitled Welcome. These documents are available by writing to or calling American Funds Service Company.

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Unless otherwise noted or unless the context requires otherwise, references on the following pages to (i) Class F shares refer to Class F-1, F-2 and F-3 shares and (ii) Class R shares refer to Class R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 shares.

Purchase, exchange and sale of shares The series’ transfer agent, on behalf of the series and American Funds Distributors,® the series’ distributor, is required by law to obtain certain personal information from you or any other person(s) acting on your behalf in order to verify your or such person’s identity. If you do not provide the information, the transfer agent may not be able to open your account. If the transfer agent is unable to verify your identity or that of any other person(s) authorized to act on your behalf, or believes it has identified potentially criminal activity, the series and American Funds Distributors reserve the right to close your account or take such other action they deem reasonable or required by law.

When purchasing shares, you should designate the fund or funds in which you wish to invest. Subject to the exception below, if no fund is designated, your money will be held uninvested (without liability to the transfer agent for loss of income or appreciation pending receipt of proper instructions) until investment instructions are received, but for no more than three business days. Your investment will be made at the net asset value (plus any applicable sales charge, in the case of Class A or Class T shares) next determined after investment instructions are received and accepted by the transfer agent. If investment instructions are not received, your money will be invested in Class A shares (or, if you are investing through a financial intermediary who offers only Class T shares, in Class T shares) of American Funds U.S. Government Money Market FundSM on the third business day after receipt of your investment.

If the amount of your cash investment is $10,000 or less, no fund is designated, and you made a cash investment (excluding exchanges) within the last 16 months, your money will be invested in the same proportion and in the same fund or funds and in the same class of shares in which your last cash investment was made. If you only have one open fund, the money will be invested into such fund on the day received if the investment is otherwise in good order.

Different procedures may apply to certain employer-sponsored arrangements, including, but not limited to, SEPs and SIMPLE IRAs.

Valuing shares The net asset value of each share class of each fund in the series is calculated based upon the net asset values of the underlying funds in which each fund invests. The prospectuses for the underlying funds explain the circumstances under which the underlying funds will use fair value pricing and the effects of using fair value pricing. The net asset value of each share class of the fund is the value of a single share of that class. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. If the New York Stock Exchange makes a scheduled (e.g. the day after Thanksgiving) or an unscheduled close prior to 4 p.m. New York time, the net asset value of the fund will be determined at approximately the time the New York Stock Exchange closes on that day. If on such a day market quotations and prices from third-party pricing services are not based as of the time of the early close of the New York Stock Exchange but are as of a later time (up to approximately 4 p.m. New York time), for example because the market remains open after the close of the New York Stock Exchange, those later market quotations and prices will be used in determining the fund’s net asset value.

Equity securities are valued primarily on the basis of market quotations, and debt securities are valued primarily on the basis of prices from third-party pricing services. Futures contracts are valued primarily on the basis of settlement prices. The underlying fund has adopted procedures for making fair value determinations if market quotations or prices from third-party pricing services, as applicable, are not readily available or are not considered reliable. For example, if events occur between the close of markets outside the United States and the close of regular trading on the New York Stock Exchange that, in the opinion of the investment adviser, materially affect the value of any of the underlying fund’s equity securities that trade principally in those international markets, those securities will be valued in accordance with fair value procedures. Similarly, fair value procedures may be employed if an issuer defaults on its debt securities and there is no market for its securities. Use of these procedures is intended to result in more appropriate net asset values and, where applicable, to reduce potential arbitrage opportunities otherwise available to short-term investors.

Because the underlying funds may hold securities that are listed primarily on foreign exchanges that trade on weekends or days when the fund does not price its shares, the values of securities held in the fund may change on days when you will not be able to purchase or redeem fund shares.

Your shares will be purchased at the net asset value (plus any applicable sales charge, in the case of Class A or Class T shares) or sold at the net asset value next determined after American Funds Service Company receives your request, provided that your request contains all information and legal documentation necessary to process the transaction. Orders in good order received after the New York Stock Exchange closes (scheduled or unscheduled) will be processed at the net asset value (plus any applicable sales charge) calculated on the following business day. A contingent deferred sales charge may apply at the time you sell certain Class A and C shares.

Purchase of Class A and C shares You may generally open an account and purchase Class A and C shares by contacting any financial professional (who may impose transaction charges in addition to those described in this prospectus) authorized to sell the fund’s shares. You may purchase additional shares in various ways, including through your financial professional and by mail, telephone, the Internet and bank wire.

Automatic conversion of C shares Class C shares automatically convert to Class A shares in the month of the 8-year anniversary of the purchase date. The Internal Revenue Service currently takes the position that such automatic conversions are not taxable. Should its position change, the automatic conversion feature may be suspended. If this were to happen, you would have the option of converting your Class C shares to Class A shares at the anniversary date described above. This exchange would be based on the relative net asset values of the two classes in question, without the imposition of a sales charge or fee, but you might face certain tax consequences as a result.

Purchase of Class F shares You may generally open an account and purchase Class F shares only through fee-based programs of investment dealers that have special agreements with the fund’s distributor, through financial intermediaries that have been approved by,

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and that have special agreements with, the fund’s distributor to offer Class F shares to self-directed investment brokerage accounts that may charge a transaction fee, through certain registered investment advisors and through other intermediaries approved by the fund’s distributor. These intermediaries typically charge ongoing fees for services they provide. Intermediary fees are not paid by the fund and normally range from .75% to 1.50% of assets annually, depending on the services offered.

Class F-2 and F-3 shares may also be available on brokerage platforms of firms that have agreements with the fund’s distributor to offer such shares solely when acting as an agent for the investor. An investor transacting in Class F-2 or F-3 shares in these programs may be required to pay a commission and/or other forms of compensation to the broker. Shares of the fund are available in other share classes that have different fees and expenses.

In addition, upon approval by an officer of the fund’s investment adviser, Class F-3 shares are available to institutional investors, which include, but are not limited to, charitable organizations, governmental institutions and corporations. For accounts held and serviced by the fund’s transfer agent the minimum investment amount is $1 million.

Purchase of Class R shares Class R shares are generally available only to retirement plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, and to nonqualified deferred compensation plans and certain voluntary employee benefit association and post-retirement benefit plans. Class R shares also are generally available only to retirement plans for which plan level or omnibus accounts are held on the books of the fund. Class R-5E, R-5 and R-6 shares are generally available only to fee-based programs or through retirement plan intermediaries. Class R-3 and Class R-5E shares are available through the American Funds SIMPLE IRA Plus Program and other similar programs. In addition, Class R-5 and R-6 shares are available for investment by other registered investment companies and collective investment trusts approved by the fund’s investment adviser or distributor. Except as otherwise provided in this prospectus, Class R shares are generally not available for purchase to retail nonretirement accounts; traditional and Roth individual retirement accounts (IRAs); Coverdell Education Savings Accounts; SEPs, SARSEPs and SIMPLE IRAs held in brokerage accounts; and 529 college savings plans. Class R-6 shares are available to employer-sponsored SEPs, SARSEPs and Simple IRAs held in fee-based programs that are serviced through retirement plan recordkeepers.

Purchases by employer-sponsored retirement plans Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer (who may impose transaction charges in addition to those described in this prospectus) authorized to sell these classes of the fund’s shares. Some or all R share classes may not be available through certain investment dealers. Additional shares may be purchased through a plan’s administrator or recordkeeper.

Class A shares are generally not available for retirement plans using the PlanPremier® or Recordkeeper Direct® recordkeeping programs. These programs are proprietary recordkeeping solutions for small retirement plans.

Employer-sponsored retirement plans that are eligible to purchase Class R shares may instead purchase Class A shares and pay the applicable Class A sales charge, provided that their recordkeepers can properly apply a sales charge on plan investments. These plans are not eligible to make initial purchases of $1 million or more in Class A shares and thereby invest in Class A shares without a sales charge, nor are they eligible to establish a statement of intention that qualifies them to purchase Class A shares without a sales charge. More information about statements of intention can be found under “Sales charge reductions and waivers” in this prospectus. Plans investing in Class A shares with a sales charge may purchase additional Class A shares in accordance with the sales charge table in this prospectus.

Employer-sponsored retirement plans that invested in American Funds Class A shares without any sales charge before April 1, 2004, and that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value, may continue to purchase American Funds Class A shares without any initial or contingent deferred sales charge.

A 403(b) plan may not invest in Class A or C shares of any of the American Funds unless it was invested in Class A or C shares before January 1, 2009.

Purchase minimums and maximums Purchase minimums described in this prospectus may be waived in certain cases. Minimums are currently waived for purchases of Class F-2 and F-3 shares. In addition, the fund reserves the right to redeem the shares of any shareholder for their then current net asset value per share if the shareholder’s aggregate investment in the fund falls below the fund’s minimum initial investment amount. See the statement of additional information for details.

For accounts established with an automatic investment plan, the initial purchase minimum of $250 may be waived if the purchases (including purchases through exchanges from another fund) made under the plan are sufficient to reach $250 within five months of account establishment.

The purchase maximum for Class C shares is $500,000 per transaction. In addition, if you have significant American Funds holdings, you may not be eligible to invest in Class C shares. Specifically, you may not purchase Class C shares if you are eligible to purchase Class A shares at the $1 million or more sales charge discount rate (that is, at net asset value). See “Sales charge reductions and waivers” in this prospectus and the statement of additional information for more details regarding sales charge discounts.

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Exchange Except for Class T shares or as otherwise described in this prospectus, you may exchange your shares for shares of the same class of other American Funds without a sales charge. Class A, C, T or F shares of any American Fund (other than American Funds U.S. Government Money Market Fund, as described below) may be exchanged for the corresponding 529 share class without a sales charge. Exchanges from Class A, C, T or F shares to the corresponding 529 share class, particularly in the case of Uniform Gifts to Minors Act or Uniform Transfers to Minors Act custodial accounts, may result in significant legal and tax consequences, as described in the applicable program description. Please consult your financial professional before making such an exchange.

Except as indicated above, Class T shares are not eligible for exchange privileges. Accordingly, an exchange of your Class T shares for Class T shares of any other American Funds will normally be subject to any applicable sales charges.

Exchanges of shares from American Funds U.S. Government Money Market Fund initially purchased without a sales charge to shares of other American Funds will be subject to the appropriate sales charge applicable to the other fund, unless the American Funds U.S. Government Money Market Fund shares were acquired by an exchange from a fund having a sales charge or by reinvestment or cross-reinvestment of dividends or capital gain distributions. For purposes of computing the contingent deferred sales charge on Class C shares, the length of time you have owned your shares will be measured from the first day of the month in which shares were purchased and will not be affected by any permitted exchange.

Exchanges have the same tax consequences as ordinary sales and purchases. For example, to the extent you exchange shares held in a taxable account that are worth more now than what you paid for them, the gain will be subject to taxation.

See “Transactions by telephone, fax or the Internet” in the section “How to sell shares” of this prospectus for information regarding electronic exchanges.

Please see the statement of additional information for details and limitations on moving investments in certain share classes to different share classes and on moving investments held in certain accounts to different accounts.

How to sell shares

You may sell (redeem) shares in any of the following ways:

Employer-sponsored retirement plans

Shares held in eligible retirement plans may be sold through the plan’s administrator or recordkeeper.

Through your dealer or financial advisor (certain charges may apply)

· Shares held for you in your dealer’s name must be sold through the dealer.

· Class F shares must be sold through intermediaries such as dealers or financial advisors.

Writing to American Funds Service Company

· Requests must be signed by the registered shareholder(s).

· A signature guarantee is required if the redemption is:

 more than $125,000;

 made payable to someone other than the registered shareholder(s); or

 sent to an address other than the address of record or to an address of record that has been changed within the previous 10 days.

· American Funds Service Company reserves the right to require signature guarantee(s) on any redemption.

· Additional documentation may be required for redemptions of shares held in corporate, partnership or fiduciary accounts.

Telephoning or faxing American Funds Service Company or using the Internet

· Redemptions by telephone, fax or the Internet (capitalgroup.com) are limited to $125,000 per American Funds shareholder each day.

· Checks must be made payable to the registered shareholder.

· Checks must be mailed to an address of record that has been used with the account for at least 10 days.

The fund typically expects to remit redemption proceeds one business day following receipt and acceptance of a redemption order, regardless of the method the fund uses to make such payment (e.g., check, wire or automated clearing house transfer). However, payment may take longer than one business day and may take up to seven days as generally permitted by the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the fund may be permitted to pay redemption proceeds beyond seven days under certain limited circumstances. In addition, if you recently purchased shares and subsequently request a redemption of those shares, the fund will pay the available redemption proceeds once a sufficient period of time has passed to reasonably ensure that checks or drafts, including certified or cashier’s checks, for the shares purchased have cleared (normally seven business days from the purchase date).

Under normal conditions, the fund typically expects to meet shareholder redemptions by monitoring the fund’s portfolio and redemption activities and by regularly holding a reserve of highly liquid assets, such as cash or cash equivalents. The fund may use additional methods to meet shareholder redemptions, if they become necessary. These methods may include, but are not limited to, the sale of portfolio assets, the use of overdraft protection afforded by the fund’s custodian bank, borrowing from a line of credit or from other funds advised by the investment adviser or its affiliates, and making payment with fund securities or other fund assets rather than in cash (as further discussed in the following paragraph).

Although payment of redemptions normally will be in cash, the series’ declaration of trust permits payment of the redemption price wholly or partly with portfolio securities or other fund assets under conditions and circumstances determined by the series’ board of trustees. On the same redemption date, some shareholders may be paid in whole or in part in securities (which may differ among those shareholders),

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while other shareholders may be paid entirely in cash. In general, in-kind redemptions to affiliated shareholders will as closely as practicable represent the affiliated shareholder’s pro rata share of the fund’s securities, subject to certain exceptions. Securities distributed in-kind to unaffiliated shareholders will be selected by the investment adviser in a manner the investment adviser deems to be fair and reasonable to the fund’s shareholders. The disposal of the securities received in-kind may be subject to brokerage costs and, until sold, such securities remain subject to market risk and liquidity risk, including the risk that such securities are or become difficult to sell. If the fund pays your redemption with illiquid or less liquid securities, you will bear the risk of not being able to sell such securities.

Transactions by telephone, fax or the Internet Generally, you are automatically eligible to redeem or exchange shares by telephone, fax or the Internet, unless you notify us in writing that you do not want any or all of these services. You may reinstate these services at any time.

Unless you decide not to have telephone, fax or Internet services on your account(s), you agree to hold the series, American Funds Service Company, any of its affiliates or mutual funds managed by such affiliates, and each of their respective directors, trustees, officers, employees and agents harmless from any losses, expenses, costs or liabilities (including attorney fees) that may be incurred in connection with the exercise of these privileges, provided that American Funds Service Company employs reasonable procedures to confirm that the instructions received from any person with appropriate account information are genuine. If reasonable procedures are not employed, American Funds Service Company and/or the series may be liable for losses due to unauthorized or fraudulent instructions.

Frequent trading of fund shares The series and American Funds Distributors reserve the right to reject any purchase order for any reason. The funds in the series are not designed to serve as vehicles for frequent trading. Frequent trading of fund shares may lead to increased costs to one or more of the funds and less efficient management of one or more funds’ portfolios, potentially resulting in dilution of the value of the shares held by long-term shareholders. Accordingly, purchases, including those that are part of exchange activity, that the series or American Funds Distributors has determined could involve actual or potential harm to one or more of the funds, may be rejected.

American Funds Service Company will monitor for frequent trading in the funds’ shares, and all transactions in fund shares are subject to the right of the series, American Funds Distributors and American Funds Service Company to restrict potentially abusive trading. See the statement of additional information for more information about how American Funds Service Company may address other potentially abusive trading activity in American Funds.

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Distributions and taxes

Dividends and distributions The fund intends to distribute dividends, usually in December. In the event the fund's distribution of net investment income exceeds its earnings and profits for tax purposes, a portion of such distribution may be classified as return of capital.

Capital gains, if any, are usually distributed in December. When a dividend or a capital gain is distributed, the net asset value per share is reduced by the amount of the payment.

You may elect to reinvest dividends and/or capital gain distributions to purchase additional shares of the applicable fund or other American Funds, or you may elect to receive them in cash. Dividends and capital gain distributions for retirement plan shareholders will be reinvested automatically.

Taxes on dividends and distributions For federal tax purposes, dividends and distributions of short-term capital gains are taxable as ordinary income. If you are an individual and meet certain holding period requirements with respect to your fund shares, you may be eligible for reduced tax rates on “qualified dividend income,” if any, distributed by the fund to you. A fund’s distributions of net long-term capital gains are taxable as long-term capital gains. Returns of capital distributions decrease your cost basis and are not taxable until your cost basis has been reduced to zero. If your cost basis is zero, returns of capital distributions are treated as capital gains. Any taxable dividends and capital gain distributions you receive from a fund will normally be taxable to you when made, regardless of whether you reinvest dividends or capital gain distributions or receive them in cash.

Dividends and capital gain distributions that are automatically reinvested in a tax-favored retirement account do not result in federal or state income tax at the time of reinvestment.

Taxes on transactions Your redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment is the difference between the cost of your shares, including any sales charges, and the amount you receive when you sell them.

Exchanges within a tax-favored retirement plan account will not result in a capital gain or loss for federal or state income tax purposes. With limited exceptions, distributions from a retirement plan account are taxable as ordinary income.

Shareholder fees Fees borne directly by a fund normally have the effect of reducing a shareholder’s taxable income on distributions.

Please see your tax advisor for more information.

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Choosing a share class The funds offer different classes of shares through this prospectus. The services or share classes available to you may vary depending upon how you wish to purchase shares of the fund.

Each share class represents an investment in the same portfolio of securities, but each class has its own sales charge and expense structure, allowing you to choose the class that best fits your situation. For example, while Class F-1 shares are subject to 12b-1 fees and subtransfer agency fees payable to third-party service providers, Class F-2 shares are subject only to subtransfer agency fees payable to third-party service providers (and not 12b-1 fees) and Class F-3 shares are not subject to any such additional fees. The different fee structures allow the investor to choose how to pay for advisory platform expenses. Class R shares offer different levels of 12b-1 and recordkeeping fees so that a plan can choose the class that best meets the cost associated with obtaining investment related services and participant level recordkeeping for the plan. When you purchase shares of a fund for an individual-type account, you should choose a share class. If none is chosen, your investment will be made in Class A shares (or, if you are investing through a financial intermediary who offers only Class T shares, your investment will be made in Class T shares).

Factors you should consider when choosing a class of shares include:

· how long you expect to own the shares;

· how much you intend to invest;

· total expenses associated with owning shares of each class;

· whether you qualify for any reduction or waiver of sales charges (for example, Class A or Class T shares may be a less expensive option over time, particularly if you qualify for a sales charge reduction or waiver);

· whether you want or need the flexibility to effect exchanges among American Funds without the imposition of a sales charge (for example, while Class A shares offer such exchange privileges, Class T shares do not);

· whether you plan to take any distributions in the near future; and

· availability of share classes:

 Class C shares are not available to retirement plans that do not currently invest in such shares and that are eligible to invest in Class R shares, including retirement plans established under Internal Revenue Code Sections 401(a) (including 401(k) plans), 403(b) or 457;

 Class F shares are available, as applicable, (i) to fee-based programs of investment dealers that have special agreements with the fund’s distributor, (ii) to financial intermediaries that have been approved by, and that have special agreements with, the fund’s distributor to offer Class F shares to self-directed investment brokerage accounts that may charge a transaction fee, (iii) to certain registered investment advisors and (iv) to other intermediaries approved by the fund’s distributor;

 Class F-3 shares are also available to institutional investors, which include, but are not limited to, charitable organizations, governmental institutions and corporations. For accounts held and serviced by the fund’s transfer agent the minimum investment amount is $1 million; and

 Class R shares are available (i) to retirement plans established under Internal Revenue Code Sections 401(a) (including 401(k) plans), 403(b) or 457, and (ii) to nonqualified deferred compensation plans and certain voluntary employee benefit association and post-retirement benefit plans, (iii) to certain institutional investors (including, but not limited to, certain charitable organizations), (iv) to certain registered investment companies approved by the fund’s investment adviser or distributor and (v) to other institutional-type accounts.

Each investor’s financial considerations are different. You should speak with your financial professional to help you decide which share class is best for you.

Sales charges

Class A shares The initial sales charge you pay each time you buy Class A shares differs depending upon the fund in which you invest and the amount you invest and may be reduced or eliminated for larger purchases as indicated below. The “offering price,” the price you pay to buy shares, includes any applicable sales charge, which will be deducted directly from your investment. Shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge.

       
  Sales charge as a percentage of:  
Investment Offering price Net amount
invested
Dealer commission
as a percentage
of offering price
Less than $25,000 5.75% 6.10% 5.00%
$25,000 but less than $50,000 5.00 5.26 4.25
$50,000 but less than $100,000 4.50 4.71 3.75
$100,000 but less than $250,000 3.50 3.63 2.75
$250,000 but less than $500,000 2.50 2.56 2.00
$500,000 but less than $750,000 2.00 2.04 1.60
$750,000 but less than $1 million 1.50 1.52 1.20
$1 million or more and certain other investments described below none none see below

The sales charge, expressed as a percentage of the offering price or the net amount invested, may be higher or lower than the percentages described in the table above due to rounding. This is because the dollar amount of the sales charge is determined by subtracting the net asset value of the shares purchased from the offering price, which is calculated to two decimal places using standard rounding criteria. The impact of rounding will vary with the size of the investment and the net asset value of the shares. Similarly, any

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contingent deferred sales charge paid by you on investments in Class A shares may be higher or lower than the 1% charge described below due to rounding.

Except as provided below, investments in Class A shares of $1 million or more will be subject to a 1% contingent deferred sales charge if the shares are sold within 18 months of purchase. The contingent deferred sales charge is based on the original purchase cost or the current market value of the shares being sold, whichever is less.

Class A share purchases not subject to sales charges The following investments are not subject to any initial or contingent deferred sales charge if American Funds Service Company is properly notified of the nature of the investment:

· investments made by accounts that are part of qualified fee-based programs that purchased Class A shares before the discontinuation of the relevant investment dealer’s load-waived Class A share program with American Funds and that continue to be held through fee-based programs;

· rollover investments from retirement plans to IRAs that are described in the “Rollovers from retirement plans to IRAs” section of this prospectus; and

· investments made by accounts held at American Funds Service Company that are no longer associated with a financial professional may invest in Class A shares without a sales charge. This includes retirement plans investing in Class A shares, where the plan is no longer associated with a financial professional. SIMPLE IRAs and 403(b) custodial accounts that are aggregated at the plan level for Class A sales charge purposes are not eligible to invest without a sales charge under this policy.

The distributor may pay dealers a commission of up to 1% on investments made in Class A shares with no initial sales charge. The fund may reimburse the distributor for these payments through its plans of distribution (see “Plans of distribution” in this prospectus).

If requested, American Funds Class A shares will be sold at net asset value to:

(1) currently registered representatives and assistants directly employed by such representatives, retired registered representatives with respect to accounts established while active, or full-time employees (collectively, “Eligible Persons”) (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law, and (c) parents-in-law, if the Eligible Persons or the spouses, children or parents of the Eligible Persons are listed in the account registration with the parents-in-law) of dealers who have sales agreements with American Funds Distributors (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their spouses, parents and/or children;

(2) the supervised persons of currently registered investment advisory firms (“RIAs”) and assistants directly employed by such RIAs, retired supervised persons of RIAs with respect to accounts established while a supervised person (collectively, “Eligible Persons”) (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law and (c) parents-in-law, if the Eligible Persons or the spouses, children or parents of the Eligible Persons are listed in the account registration with the parents-in-law) of RIA firms that are authorized to sell shares of the funds, plans for the RIA firms, and plans that include as participants only the Eligible Persons, their spouses, parents and/or children;

(3) insurance company separate accounts;

(4) accounts managed by subsidiaries of The Capital Group Companies, Inc.;

(5) an individual or entity with a substantial business relationship with The Capital Group Companies, Inc. or its affiliates, or an individual or entity related or relating to such individual or entity;

(6) wholesalers and full-time employees directly supporting wholesalers involved in the distribution of insurance company separate accounts whose underlying investments are managed by any affiliate of The Capital Group Companies, Inc.;

(7) full-time employees of banks that have sales agreements with American Funds Distributors who are solely dedicated to directly supporting the sale of mutual funds; and

(8) current or former clients of Capital Group Private Client Services and their family members who purchase their shares through Capital Group Private Client Services or American Funds Service Company.

Shares are offered at net asset value to these persons and organizations due to anticipated economies in sales effort and expense. Once an account is established under this net asset value privilege, additional investments can be made at net asset value for the life of the account. Depending on the financial intermediary holding your account, these privileges may be unavailable. Investors should consult their financial intermediary for further information.

Certain other investors may qualify to purchase shares without a sales charge, such as employees of The Capital Group Companies, Inc. and its affiliates. Please see the statement of additional information for further details.

Class C shares Class C shares are sold without any initial sales charge. American Funds Distributors pays 1% of the amount invested to dealers who sell Class C shares. A contingent deferred sales charge of 1% applies if Class C shares are sold within one year of purchase. The contingent deferred sales charge is eliminated one year after purchase.

Any contingent deferred sales charge paid by you on sales of Class C shares, expressed as a percentage of the applicable redemption amount, may be higher or lower than the percentages described above due to rounding.

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Class T shares The initial sales charge you pay each time you buy Class T shares differs depending upon the amount you invest and may be reduced for larger purchases as indicated below. The “offering price,” the price you pay to buy shares, includes any applicable sales charge, which will be deducted directly from your investment. Shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge.

     
  Sales charge as a
percentage of:
Investment Offering price Net amount
invested
Less than $250,000 2.50% 2.56%
$250,000 but less than $500,000 2.00 2.04
$500,000 but less than $1 million 1.50 1.52
$1 million or more 1.00 1.01

The sales charge, expressed as a percentage of the offering price or the net amount invested, may be higher or lower than the percentages described in the table above due to rounding. This is because the dollar amount of the sales charge is determined by subtracting the net asset value of the shares purchased from the offering price, which is calculated to two decimal places using standard rounding criteria. The impact of rounding will vary with the size of the investment and the net asset value of the shares.

Class F shares Class F shares are sold without any initial or contingent deferred sales charge.

Class R shares Class R shares are sold without any initial or contingent deferred sales charge. The distributor will pay dealers annually asset-based compensation of up to 1.00% for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .60% for Class R-2E shares, up to .50% for Class R-3 shares and up to .25% for Class R-4 shares. No dealer compensation is paid from fund assets on sales of Class R-5E, R-5 or R-6 shares. The fund may reimburse the distributor for these payments through its plans of distribution.

See “Plans of distribution” in this prospectus for ongoing compensation paid to your financial professional for all share classes.

Contingent deferred sales charges Shares acquired through reinvestment of dividends or capital gain distributions are not subject to a contingent deferred sales charge. In addition, the contingent deferred sales charge may be waived in certain circumstances. See “Contingent deferred sales charge waivers” in the “Sales charge reductions and waivers” section of this prospectus. For purposes of determining the contingent deferred sales charge, if you sell only some of your shares, shares that are not subject to any contingent deferred sales charge will be sold first, followed by shares that you have owned the longest.

Sales charge reductions and waivers To receive a reduction in your Class A initial sales charge, you must let your financial professional or American Funds Service Company know at the time you purchase shares that you qualify for such a reduction. If you do not let your financial professional or American Funds Service Company know that you are eligible for a reduction, you may not receive the sales charge discount to which you are otherwise entitled. In order to determine your eligibility to receive a sales charge discount, it may be necessary for you to provide your financial professional or American Funds Service Company with information and records (including account statements) of all relevant accounts invested in American Funds. You may need to invest directly through American Funds Service Company in order to receive the sales charge waivers described in this prospectus. Investors should consult their financial intermediary for further information. Certain financial intermediaries that distribute shares of American Funds may impose different sales charge waivers than those described in this prospectus. Such variations in sales charge waivers are described in an appendix to this prospectus titled “Sales charge waivers.” Note that such sales charge waivers and discounts offered through a particular intermediary, as set forth in the appendix to this prospectus, are implemented and administered solely by that intermediary. Please contact the applicable intermediary to ensure that you understand the steps you must take in order to qualify for any available waivers or discounts.

In addition to the information in this prospectus, you may obtain more information about share classes, sales charges and sales charge reductions and waivers through a link on the home page of our website at capitalgroup.com, from the statement of additional information or from your financial professional.

Reducing your Class A initial sales charge Consistent with the policies described in this prospectus, you and your “immediate family” (your spouse — or equivalent, if recognized under local law, your children under the age of 21 or disabled adult dependents covered by ABLE accounts) may combine all of your American Funds investments to reduce Class A sales charges. In addition, two or more retirement plans of an employer or an employer’s affiliates may combine all of their American Funds investments to reduce Class A sales charges. However, for this purpose, investments representing direct purchases of American Funds U.S. Government Money Market Fund Class A shares are excluded. Following are different ways that you may qualify for a reduced Class A sales charge:

Aggregating accounts To receive a reduced Class A sales charge, investments made by you and your immediate family (see above) may be aggregated if made for your own account(s) and/or certain other accounts, such as:

· individual-type employee benefit plans, such as an IRA, single-participant Keogh-type plan, or a participant account of a 403(b) plan that is treated as an individual-type plan for sales charge purposes (see “Purchases by certain 403(b) plans” under “Rollovers from retirement plans to IRAs” below);

· SEP plans and SIMPLE IRA plans established after November 15, 2004, by an employer adopting any plan document other than a prototype plan produced by American Funds Distributors;

· business accounts solely controlled by you or your immediate family (for example, you own the entire business);

· trust accounts established by you or your immediate family (for trusts with only one primary beneficiary, upon the trustor’s death the trust account may be aggregated with such beneficiary’s own accounts; for trusts with multiple primary beneficiaries, upon the

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trustor’s death the trustees of the trust may instruct American Funds Service Company to establish separate trust accounts for each primary beneficiary; each primary beneficiary’s separate trust account may then be aggregated with such beneficiary’s own accounts);

· endowments or foundations established and controlled by you or your immediate family; or

· 529 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an eligible employer plan).

Individual purchases by a trustee(s) or other fiduciary(ies) may also be aggregated if the investments are:

· for a single trust estate or fiduciary account, including employee benefit plans other than the individual-type employee benefit plans described above;

· made for two or more employee benefit plans of a single employer or of affiliated employers as defined in the 1940 Act, excluding the individual-type employee benefit plans described above;

· for a diversified common trust fund or other diversified pooled account not specifically formed for the purpose of accumulating fund shares;

· for nonprofit, charitable or educational organizations, or any endowments or foundations established and controlled by such organizations, or any employer-sponsored retirement plans established for the benefit of the employees of such organizations, their endowments, or their foundations;

· for participant accounts of a 403(b) plan that is treated as an employer-sponsored plan for sales charge purposes (see “Purchases by certain 403(b) plans” under “Rollovers from retirement plans to IRAs” below), or made for participant accounts of two or more such plans, in each case of a single employer or affiliated employers as defined in the 1940 Act; or

· for a SEP or SIMPLE IRA plan established after November 15, 2004, by an employer adopting a prototype plan produced by American Funds Distributors.

Purchases made for nominee or street name accounts (securities held in the name of an investment dealer or another nominee such as a bank trust department instead of the customer) may not be aggregated with those made for other accounts and may not be aggregated with other nominee or street name accounts unless otherwise qualified as described above.

Joint accounts may be aggregated with other accounts belonging to the primary owner and/or his or her immediate family. The primary owner of a joint account is the individual responsible for taxes on the account.

Investments made through employer-sponsored retirement plan accounts will not be aggregated with individual-type accounts.

Concurrent purchases You may reduce your Class A sales charge by combining simultaneous purchases (including, upon your request, purchases for gifts) of all classes of shares in American Funds. Shares of American Funds U.S. Government Money Market Fund purchased through an exchange, reinvestment or cross-reinvestment from a fund having a sales charge also qualify. However, direct purchases of American Funds U.S. Government Money Market Fund Class A shares are excluded. If you currently have individual holdings in American Legacy variable annuity contracts or variable life insurance policies that were established on or before March 31, 2007, you may continue to combine purchases made under such contracts and policies to reduce your Class A sales charge.

Rights of accumulation Subject to the limitations described in the aggregation policy, you may take into account your accumulated holdings in all share classes of American Funds to determine your sales charge on investments in accounts eligible to be aggregated. Direct purchases of American Funds U.S. Government Money Market Fund Class A shares are excluded. Subject to your investment dealer’s or recordkeeper’s capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings (the “market value”) as of the day prior to your American Funds investment or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals (the “cost value”). Depending on the entity on whose books your account is held, the value of your holdings in that account may not be eligible for calculation at cost value. For example, accounts held in nominee or street name may not be eligible for calculation at cost value and instead may be calculated at market value for purposes of rights of accumulation.

The value of all of your holdings in accounts established in calendar year 2005 or earlier will be assigned an initial cost value equal to the market value of those holdings as of the last business day of 2005. Thereafter, the cost value of such accounts will increase or decrease according to actual investments or withdrawals. You must contact your financial professional or American Funds Service Company if you have additional information that is relevant to the calculation of the value of your holdings.

When determining your American Funds Class A sales charge, if your investment is not in an employer-sponsored retirement plan, you may also continue to take into account the market value (as of the day prior to your American Funds investment) of your individual holdings in various American Legacy variable annuity contracts and variable life insurance policies that were established on or before March 31, 2007. An employer-sponsored retirement plan may also continue to take into account the market value of its investments in American Legacy Retirement Investment Plans that were established on or before March 31, 2007.

You may not purchase Class C or 529-C shares if such combined holdings cause you to be eligible to purchase Class A or 529-A shares at the $1 million or more sales charge discount rate (i.e., at net asset value).

If you make a gift of American Funds Class A shares, upon your request, you may purchase the shares at the sales charge discount allowed under rights of accumulation of all of your American Funds and applicable American Legacy accounts.

You should retain any records necessary to substantiate the historical amounts you have invested.

Statement of intention You may reduce your Class A sales charge by establishing a statement of intention. A statement of intention is a nonbinding commitment that allows you to combine all purchases of all American Funds share classes (excluding American Funds U.S.

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Government Money Market Fund) that you intend to make over a 13-month period to determine the applicable sales charge; however, purchases made under a right of reinvestment, appreciation of your holdings, and reinvested dividends and capital gains do not count as purchases made during the statement period. Your accumulated holdings (as described and calculated under “Rights of accumulation” above) eligible to be aggregated as of the day immediately before the start of the statement period may be credited toward satisfying the statement. A portion of your account may be held in escrow to cover additional Class A sales charges that may be due if your total purchases over the statement period do not qualify you for the applicable sales charge reduction. Employer-sponsored retirement plans are restricted from establishing statements of intention. See the discussion regarding employer-sponsored retirement plans under “Purchase, exchange and sale of shares” in this prospectus for more information.

The statement of intention period starts on the date on which your first purchase made toward satisfying the statement of intention is processed. Your accumulated holdings (as described above under “Rights of accumulation”) eligible to be aggregated as of the day immediately before the start of the statement of intention period may be credited toward satisfying the statement of intention.

You may revise the commitment you have made in your statement of intention upward at any time during the statement of intention period. If your prior commitment has not been met by the time of the revision, the statement of intention period during which purchases must be made will remain unchanged. Purchases made from the date of the revision will receive the reduced sales charge, if any, resulting from the revised statement of intention. If your prior commitment has been met by the time of the revision, your original statement of intention will be considered met and a new statement of intention will be established.

The statement of intention will be considered completed if the shareholder dies within the 13-month statement of intention period. Commissions to dealers will not be adjusted or paid on the difference between the statement of intention amount and the amount actually invested before the shareholder’s death.

When a shareholder elects to use a statement of intention, shares equal to 5% of the dollar amount specified in the statement of intention may be held in escrow in the shareholder’s account out of the initial purchase (or subsequent purchases, if necessary) by American Funds Service Company. All dividends and any capital gain distributions on shares held in escrow will be credited to the shareholder’s account in shares (or paid in cash, if requested). If the intended investment is not completed within the specified statement of intention period the investments made during the statement period will be adjusted to reflect the difference between the sales charge actually paid and the sales charge which would have been paid if the total of such purchases had been made at a single time. Any dealers assigned to the shareholder’s account at the time a purchase was made during the statement period will receive a corresponding commission adjustment if appropriate.

In addition, if you currently have individual holdings in American Legacy variable annuity contracts or variable life insurance policies that were established on or before March 31, 2007, you may continue to apply purchases under such contracts and policies to a statement of intention.

Shareholders purchasing shares at a reduced sales charge under a statement of intention indicate their acceptance of these terms and those in the prospectus with their first purchase.

Reducing your Class T initial sales charge Consistent with the policies described in this prospectus, the initial sales charge you pay each time you buy Class T shares may differ depending upon the amount you invest and may be reduced for larger purchases. Additionally, Class T shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge. Sales charges on Class T shares are applied on a transaction-by-transaction basis, and, accordingly, Class T shares are not eligible for any other sales charge waivers or reductions, including through the aggregation of Class T shares concurrently purchased by other related accounts or in other American Funds. The sales charge applicable to Class T shares may not be reduced by establishing a statement of intention, and rights of accumulation are not available for Class T shares.

Right of reinvestment If you notify American Funds Service Company prior to the time of reinvestment, you may reinvest proceeds from a redemption, dividend payment or capital gain distribution without a sales charge in the same fund or other American Funds, provided that the reinvestment occurs within 90 days after the date of the redemption, dividend payment or distribution and is made into the same account from which you redeemed the shares or received the dividend payment or distribution. If the account has been closed, you may reinvest without a sales charge if the new receiving account has the same registration as the closed account and the reinvestment is made within 90 days after the date of redemption, dividend payment or distribution.

Proceeds from a redemption and all dividend payments and capital gain distributions will be reinvested in the same share class from which the original redemption, dividend payment or distribution was made. Any contingent deferred sales charge on Class A or C shares will be credited to your account. Redemption proceeds of Class A shares representing direct purchases in American Funds U.S. Government Money Market Fund that are reinvested in other American Funds will be subject to a sales charge.

Proceeds will be reinvested at the next calculated net asset value after your request is received by American Funds Service Company, provided that your request contains all information and legal documentation necessary to process the transaction. For purposes of this “right of reinvestment policy,” automatic transactions (including, for example, automatic purchases, withdrawals and payroll deductions) and ongoing retirement plan contributions are not eligible for investment without a sales charge. This paragraph does not apply to certain rollover investments as described under “Rollovers from retirement plans to IRAs” in this prospectus. Depending on the financial intermediary holding your account, your reinvestment privileges may be unavailable or differ from those described in this prospectus. Investors should consult their financial intermediary for further information.

Contingent deferred sales charge waivers The contingent deferred sales charge on Class A and C shares will be waived in the following cases:

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· permitted exchanges of shares, except if shares acquired by exchange are then redeemed within the period during which a contingent deferred sales charge would apply to the initial shares purchased;

· tax-free returns of excess contributions to IRAs;

· redemptions due to death or postpurchase disability of the shareholder (this generally excludes accounts registered in the names of trusts and other entities);

· in the case of joint tenant accounts, if one joint tenant dies, a surviving joint tenant, at the time he or she notifies American Funds Service Company of the other joint tenant’s death and removes the decedent’s name from the account, may redeem shares from the account without incurring a contingent deferred sales charge; however, redemptions made after American Funds Service Company is notified of the death of a joint tenant will be subject to a contingent deferred sales charge;

· redemptions due to the complete termination of a trust upon the death of the trustor/grantor or beneficiary, but only if such termination is specifically provided for in the trust document;

· shares redeemed at the discretion of American Funds Service Company for accounts that do not meet the fund’s minimum investment requirements, as described in this prospectus; and

· the following types of transactions, if they do not exceed 12% of the value of an account annually:

 required minimum distributions taken from retirement accounts in accordance with IRS regulations; and

 redemptions through an automatic withdrawal plan (“AWP”) (see “Automatic withdrawals” under “Shareholder account services and privileges” in the statement of additional information). For each AWP payment, assets that are not subject to a contingent deferred sales charge, such as shares acquired through reinvestment of dividends and/or capital gain distributions, will be redeemed first and will count toward the 12% limit. If there is an insufficient amount of assets not subject to a contingent deferred sales charge to cover a particular AWP payment, shares subject to the lowest contingent deferred sales charge will be redeemed next until the 12% limit is reached. Any dividends and/or capital gain distributions taken in cash by a shareholder who receives payments through an AWP will also count toward the 12% limit. In the case of an AWP, the 12% limit is calculated at the time an automatic redemption is first made, and is recalculated at the time each additional automatic redemption is made. Shareholders who establish an AWP should be aware that the amount of a payment not subject to a contingent deferred sales charge may vary over time depending on fluctuations in the value of their accounts. This privilege may be revised or terminated at any time.

For purposes of this paragraph, “account” means your investment in the applicable class of shares of the particular fund from which you are making the redemption.

The contingent deferred sales charge on American Funds Class A shares may be waived in cases where the fund’s transfer agent determines the benefit to the fund of collecting the contingent deferred sales charge would be outweighed by the cost of applying it.

Contingent deferred sales charge waivers are allowed only in the cases listed here and in the statement of additional information. For example, contingent deferred sales charge waivers will not be allowed on redemptions of Class 529-C shares due to termination of CollegeAmerica; a determination by the Internal Revenue Service that CollegeAmerica does not qualify as a qualified tuition program under the Code; proposal or enactment of law that eliminates or limits the tax-favored status of CollegeAmerica; or elimination of the fund by Virginia529 as an option for additional investment within CollegeAmerica.

To have your Class A or C contingent deferred sales charge waived, you must inform your financial professional or American Funds Service Company at the time you redeem shares that you qualify for such a waiver.

Other sales charge waivers Purchases of Class A shares through a self-clearing broker-dealer firm generally incur a sales charge. However, self-clearing broker-dealer firms may extend the 90 day right of reinvestment to allow reinvestment in Class A shares without a sales charge in cases where fund shareholders request reinvestment of a required minimum distribution from an Individual Retirement Account if such requirement is waived by regulation or legislation (“waived RMD reinvestment”), provided that the self-clearing broker-dealer firm has specific language in this prospectus to such effect. If a self-clearing firm does not have their own policies listed in the prospectus waived RMD reinvestments are not available without a sales charge. Firm specific language is located in the Appendix to the prospectus. A self-clearing broker-dealer firm is a firm that holds some or all of the assets in your account, executes trades for the assets held on its platform internally rather than through the fund’s transfer agent or a third-party clearing firm and provides account statements and tax reporting to you. The largest broker-dealer firms are typically self-clearing. For all other broker-dealer firms, shares purchased through a waived RMD reinvestment are available at net asset value.

For accounts held with the fund’s transfer agent, purchases of Class A shares through waived RMD reinvestments are not subject to sales charges. If you have any questions, ask your financial professional whether Class A shares purchased through these policies are available without a sales charge. 

Waived RMD investments distributed from Class C shares will be reinvested in C shares. In addition, any contingent deferred sales change paid on Class A and Class C share distributions under this policy will be credited to your account when reinvested.

Waivers of all or a portion of the contingent deferred sales charge on Class C shares and the sales charge on Class A shares will be granted for transactions requested by financial intermediaries as a result of (i) pending or anticipated regulatory matters that require investor accounts to be moved to a different share class or (ii) conversions of IRAs from brokerage to advisory accounts investing in Class F shares in cases where new investments in brokerage IRA accounts have been restricted by the intermediary.

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Rollovers from retirement plans to IRAs Assets from retirement plans may be invested in Class A, C or F shares through an IRA rollover, subject to the other provisions of this prospectus. Class C shares are not available if the assets are being rolled over from investments held in American Funds Recordkeeper Direct and PlanPremier retirement plan recordkeeping programs.

Rollovers to IRAs from retirement plans that are rolled into Class A shares will be subject to applicable sales charges. The following rollovers to Class A shares will be made without a sales charge:

· rollovers to Capital Bank and Trust CompanySM IRAs if the assets were invested in any fund managed by the investment adviser or its affiliates at the time of distribution;

· rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as custodian; and

· rollovers to Capital Bank and Trust Company IRAs from investments held in American Funds Recordkeeper Direct and PlanPremier retirement plan recordkeeping programs.

IRA rollover assets that roll over without a sales charge as described above will not be subject to a contingent deferred sales charge, and investment dealers will be compensated solely with an annual service fee that begins to accrue immediately. All other rollovers invested in Class A shares, as well as future contributions to the IRA, will be subject to sales charges and to the terms and conditions generally applicable to Class A share investments as described in this prospectus and in the statement of additional information.

Purchases by SEP plans and SIMPLE IRA plans Participant accounts in a Simplified Employee Pension (SEP) plan or a Savings Incentive Match Plan for Employees of Small Employers IRA (SIMPLE IRA) will be aggregated at the plan level for Class A sales charge purposes if an employer adopts a prototype plan produced by American Funds Distributors or (a) the employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal or the contributions are identified as related to the same plan; (b) each transmittal is accompanied by checks or wire transfers and generally must be submitted through the transfer agent’s automated contribution system if held on the fund’s books; and (c) if the fund is expected to carry separate accounts in the name of each plan participant and (i) the employer or plan sponsor notifies the funds’ transfer agent or the intermediary holding the account that the separate accounts of all plan participants should be linked and (ii) all new participant accounts are established by submitting the appropriate documentation on behalf of each new participant. Participant accounts in a SEP or SIMPLE plan that are eligible to aggregate their assets at the plan level may not also aggregate the assets with their individual accounts.

Purchases by certain 403(b) plans A 403(b) plan may not invest in American Funds Class A or C unless such plan was invested in Class A or C shares before January 1, 2009.

Participant accounts of a 403(b) plan that invested in American Funds Class A or C shares and were treated as an individual-type plan for sales charge purposes before January 1, 2009, may continue to be treated as accounts of an individual-type plan for sales charge purposes. Participant accounts of a 403(b) plan that invested in American Funds Class A or C shares and were treated as an employer-sponsored plan for sales charge purposes before January 1, 2009, may continue to be treated as accounts of an employer-sponsored plan for sales charge purposes. Participant accounts of a 403(b) plan that was established on or after January 1, 2009, are treated as accounts of an employer-sponsored plan for sales charge purposes.

Moving between accounts American Funds investments by certain account types may be moved to other account types without incurring additional Class A sales charges. These transactions include:

·   redemption proceeds from a non-retirement account (for example, a joint tenant account) used to purchase fund shares in an IRA or other individual-type retirement account;

·   required minimum distributions from an IRA or other individual-type retirement account used to purchase fund shares in a non-retirement account; and

·   death distributions paid to a beneficiary’s account that are used by the beneficiary to purchase fund shares in a different account.

These privileges are generally available only if your account is held directly with the fund’s transfer agent or if the financial intermediary holding your account has the systems, policies and procedures to support providing the privileges on its systems. Investors should consult their financial intermediary for further information.

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Plans of distribution Each fund has plans of distribution, or “12b-1 plans,” for certain share classes under which it may finance activities intended primarily to sell shares, provided that the categories of expenses are approved in advance by the series’ board of trustees. The plans provide for payments, based on annualized percentages of average daily net assets, of:

   
Up to: Share class(es)
0.30% Class A shares
0.50% Class T, F-1 and R-4 shares
0.75% Class R-3 shares
0.85% Class R-2E shares
1.00% Class C, R-1 and R-2 shares

For all share classes indicated above, up to .25% may be used to pay service fees to qualified dealers for providing certain shareholder services. The amount remaining for each share class, if any, may be used for distribution expenses.

The 12b-1 fees paid by each applicable share class of the fund, as a percentage of average net assets for the most recent fiscal year, are indicated in the Annual Fund Operating Expenses table under “Fees and expenses of the fund” in this prospectus. Since these fees are paid out of the fund’s assets on an ongoing basis, over time they may cost you more than paying other types of sales charges or service fees and reduce the return on your investment. The higher fees for Class C shares may cost you more over time than paying the initial sales charge for Class A or T shares.

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Other compensation to dealers American Funds Distributors, at its expense, provides additional compensation to investment dealers. These payments may be made, at the discretion of American Funds Distributors, to no more than the top 60 dealers (or their affiliates) with which it has a substantive distribution relationship involving the sale of American Funds. The amount will be determined using a formula applied consistently to dealers based on their assets under management. The level of payments made to a qualifying firm under the formula will not exceed .035% of eligible American Funds assets attributable to that dealer. Eligible assets are all American Funds assets other than Class R shares, Class F-3 shares, Class F shares held in IRAs and shares held in certain retirement accounts. Dealers may direct American Funds Distributors to exclude additional assets. In addition to the asset-based payment, American Funds Distributors provides $5 million to certain firms based on their engagement with American Funds Distributors and the level of American Funds assets under management at each such firm to recognize the commitment each of those firms has made to collaborating with American Funds Distributors on achieving advisor training and education objectives. In 2020, American Funds Distributors paid this amount to the following firms:

   
Edward Jones Morgan Stanley Wealth Management
LPL Financial LLC Raymond James Group
Merrill Lynch, Pierce, Fenner & Smith Wells Fargo Advisors

American Funds Distributors compensates the firms to support various efforts, including, among other things, to:

· help defray the costs incurred by qualifying dealers in connection with efforts to educate financial professionals about American Funds so that they can make recommendations and provide services that are suitable and meet shareholder needs;

· help defray the costs associated with the dealer firms’ provision of account related services and activities and support the dealer firms’ distribution activities; and

· support meetings, conferences or other training and educational events hosted by the firm, and obtain relevant data regarding financial professional activities to facilitate American Funds Distributors’ training and education activities.

American Funds Distributors will, on an annual basis, determine the advisability of continuing these payments. Firms receiving additional compensation payments must sign a letter acknowledging the purpose of the payment and generally requiring the firms to (1) perform the due diligence necessary to include American Funds on their platform, (2) not provide financial professionals, branch managers or associated persons with any financial incentives to promote the sales of one approved fund group over another approved group, (3) provide opportunities for their clients to obtain individualized advice, (4) provide American Funds Distributors broad access to their financial professionals and product platforms and work together on mutual business objectives, and (5) work with the fund’s transfer agent to promote operational efficiencies and to facilitate necessary communication between American Funds and the firm’s clients who own shares of American Funds.

Separately, American Funds Distributors has identified certain firms that provide a self-directed platform for the public as well as clearing, custody and recordkeeping services for certain other intermediaries. In lieu of the formula described above, these firms receive up to .018% of assets under administration (excluding assets where the firm acts as a fiduciary and Class R shares). Firms may direct American Funds Distributors to exclude additional assets.

In addition to compensation through the formulas described above, American Funds Distributors provides compensation for, among other things, data (including fees to obtain information on financial professionals to better tailor training and education opportunities), account-related services, and operational improvements. American Funds Distributors estimates that in 2020 for the firms listed below, the compensation for such information and services was approximately:

   
Cetera $120,000
Commonwealth Financial Network $50,000
Fidelity Investments $6,700,000
LPL Financial LLC $1,800,000
Morgan Stanley Wealth Management $4,300,000
Northwestern Mutual Investment Services LLC $75,000
OneAmerica $35,000
UBS Financial Services Inc. $300,000
Wells Fargo Advisors $450,000

American Funds Distributors also pays expenses associated with meetings and other training and educational opportunities conducted by selling dealers, advisory platform providers and other intermediaries to facilitate educating financial professionals and shareholders about American Funds.

American Funds Distributors pays the recordkeepers listed below up to $1 million annually for product services, platform consideration, participation at recordkeeper-sponsored events and co-branding and other marketing services. The amount of the payment is based on the level of services and the access provided by the recordkeeper.

   
 
Empower (Great West Life & Annuity Insurance Company) MML Investors Services
John Hancock Transamerica
 

If investment advisers, distributors or other affiliates of mutual funds pay additional compensation or other incentives to investment dealers in differing amounts, dealer firms and their financial professionals may have financial incentives for recommending a particular mutual fund

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over other mutual funds or investments, creating a potential conflict of interest. You should consult with your financial professional and review carefully any disclosure by your financial professional’s firm as to compensation received.

Fund expenses To the extent a fund invests in underlying American Funds, it will invest in Class R-6 shares of the underlying funds. Accordingly, fees and expenses of the underlying funds reflect current expenses of the Class R-6 shares of the underlying funds.

In periods of market volatility, assets of the funds may decline significantly, causing total annual fund operating expenses (as a percentage of the value of your investment) to become higher than the numbers shown in the Annual Fund Operating Expenses table under “Fees and expenses of the fund” in this prospectus.

The “Other expenses” items in the Annual Fund Operating Expenses tables in this prospectus also include custodial, legal and transfer agent (and, if applicable, subtransfer agent/recordkeeping) payments and various other expenses applicable to all share classes.

Subtransfer agency and recordkeeping fees Subtransfer agent/recordkeeping payments may be made to third parties (including affiliates of the fund’s investment adviser) that provide subtransfer agent, recordkeeping and/or shareholder services with respect to certain shareholder accounts in lieu of the transfer agent providing such services. The amount paid for subtransfer agent/recordkeeping services varies depending on the share class and services provided, and typically ranges from $3 to $18 per account. Although Class F-3 shares are not subject to any subtransfer agency or recordkeeping fees, Class F-1 and F-2 shares are subject to subtransfer agency fees of up to .12% of fund assets.

For employer-sponsored retirement plans, the amount paid for subtransfer agent/ recordkeeping services varies depending on the share class selected. The table below shows the maximum payments to entities providing these services to retirement plans.

   
  Payments
Class A 0.10% of assets
Class R-1 0.10% of assets
Class R-2 0.35% of assets
Class R-2E 0.20% of assets
Class R-3 0.15% of assets
Class R-4 0.10% of assets
Class R-5E 0.15% of assets
Class R-5 0.05% of assets
Class R-6 none

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Financial highlights The Financial Highlights table is intended to help you understand each fund’s results for the past five fiscal years. Certain information reflects financial results for a single share of a particular class. The total returns in the table represent the rate that an investor would have earned or lost on an investment in each fund (assuming reinvestment of all dividends and capital gain distributions). Where indicated, figures in the tables reflect the impact, if any, of certain reimbursements from Capital Research and Management Company. For more information about these reimbursements, see the fund’s statement of additional information and annual report. The information in the Financial Highlights table has been audited by Deloitte & Touche LLP, whose current report, along with the series’ financial statements, is included in the statement of additional information, which is available upon request.

American Funds 2065 Target Date Retirement Fund

                                                         
    Income from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
(loss)
Net gains
on securities
(both realized
and unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
(loss)
to average
net assets3
Class A:                                                         
10/31/2021 $12.66   $.10   $4.27   $4.37   $(.08 ) $(.01 ) $(.09 ) $16.94   34.61 % $54   .44 % .40 % .77 % .60 %
10/31/20207,8 10.00   .05   2.61   2.66         12.66   26.60 9 7   .60 10 .38 10 .75 10 .67 10
Class C:                                                         
10/31/2021 12.63   (.01 ) 4.25   4.24   (.06 ) (.01 ) (.07 ) 16.80   33.63   4   1.12   1.09   1.46   (.09 )
10/31/20207,8 10.00   11 2.63   2.63         12.63   26.30 9 12 1.17 10 1.00 10 1.37 10 10,13
Class T:                                                         
10/31/2021 12.69   .16   4.27   4.43   (.10 ) (.01 ) (.11 ) 17.01   35.01 14 12 .24 14 .11 14 .48 14 1.02 14
10/31/20207,8 10.00   .07   2.62   2.69         12.69   26.90 9,14 12 .48 10,14 .02 10,14 .39 10,14 .94 10,14
Class F-1:                                                         
10/31/2021 12.68   .11   4.27   4.38   (.09 ) (.01 ) (.10 ) 16.96   34.73   1   .42   .37   .74   .67  
10/31/20207,8 10.00   .06   2.62   2.68         12.68   26.70 9 12 .47 10 .28 10 .65 10 .77 10
Class F-2:                                                         
10/31/2021 12.69   .15   4.27   4.42   (.09 ) (.01 ) (.10 ) 17.01   34.99   3   .12   .10   .47   .91  
10/31/20207,8 10.00   .07   2.62   2.69         12.69   26.90 9 12 .27 10 .03 10 .40 10 .86 10
Class F-3:                                                         
10/31/2021 12.69   .17   4.27   4.44   (.10 ) (.01 ) (.11 ) 17.02   35.09   12 .10   .03   .40   1.08  
10/31/20207,8 10.00   .07   2.62   2.69         12.69   26.90 9 12 .30 10 10,13 .37 10 .99 10
Class R-1:                                                         
10/31/2021 12.69   (.04 ) 4.36   4.32   (.09 ) (.01 ) (.10 ) 16.91   34.17   1   1.06   1.06   1.43   (.22 )
10/31/20207,8 10.00   .07   2.62   2.69         12.69   26.90 9,14 12 .45 10,14 .06 10,14 .43 10,14 .90 10,14
Class R-2:                                                         
10/31/2021 12.61   (.01 ) 4.24   4.23   (.05 ) (.01 ) (.06 ) 16.78   33.62   38   1.17   1.12   1.49   (.05 )
10/31/20207,8 10.00   11 2.61   2.61         12.61   26.10 9 7   1.31 10 1.11 10 1.48 10 (.04 )10
Class R-2E:                                                         
10/31/2021 12.64   .04   4.25   4.29   (.05 ) (.01 ) (.06 ) 16.87   34.02   3   .87   .82   1.19   .25  
10/31/20207,8 10.00   .02   2.62   2.64         12.64   26.40 9 1   1.01 10 .79 10 1.16 10 .27 10
Class R-3:                                                         
10/31/2021 12.64   .05   4.27   4.32   (.06 ) (.01 ) (.07 ) 16.89   34.29   39   .72   .67   1.04   .34  
10/31/20207,8 10.00   .03   2.61   2.64         12.64   26.40 9 8   .91 10 .66 10 1.03 10 .45 10
Class R-4:                                                         
10/31/2021 12.67   .10   4.27   4.37   (.08 ) (.01 ) (.09 ) 16.95   34.63   24   .42   .38   .75   .65  
10/31/20207,8 10.00   .05   2.62   2.67         12.67   26.70 9 3   .57 10 .36 10 .73 10 .71 10
Class R-5E:                                                         
10/31/2021 12.68   .14   4.27   4.41   (.09 ) (.01 ) (.10 ) 16.99   34.90   16   .22   .17   .54   .85  
10/31/20207,8 10.00   .07   2.61   2.68         12.68   26.80 9 3   .35 10 .17 10 .54 10 .99 10
Class R-5:                                                         
10/31/2021 12.69   .16   4.26   4.42   (.09 ) (.01 ) (.10 ) 17.01   34.99   7   .12   .08   .45   .98  
10/31/20207,8 10.00   .08   2.61   2.69         12.69   26.90 9 1   .33 10 .07 10 .44 10 1.03 10
Class R-6:                                                         
10/31/2021 12.69   .15   4.29   4.44   (.10 ) (.01 ) (.11 ) 17.02   35.09   194   .07   .03   .40   .95  
10/31/20207,8 10.00   .09   2.60   2.69         12.69   26.90 9 14   .18 10 .04 10 .41 10 1.16 10

109     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2060 Target Date Retirement Fund

                                                         
    Income from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
(loss)
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
(loss)
to average
net assets3
Class A:                                                         
10/31/2021 $13.92   $.13   $4.62   $4.75   $(.09 ) $(.31 ) $(.40 ) $18.27   34.65 % $619   .34 % .34 % .71 % .77 %
10/31/2020 13.16   .15   1.05   1.20   (.10 ) (.34 ) (.44 ) 13.92   9.25   363   .38   .38   .76   1.15  
10/31/2019 12.14   .16   1.26   1.42   (.09 ) (.31 ) (.40 ) 13.16   12.22   232   .40   .40   .79   1.27  
10/31/2018 12.20   .14   (.01 ) .13   (.08 ) (.11 ) (.19 ) 12.14   1.06   130   .37   .37   .77   1.10  
10/31/2017 10.27   .13   2.04   2.17   (.11 ) (.13 ) (.24 ) 12.20   21.55   78   .40   .36   .76   1.19  
Class C:                                                         
10/31/2021 13.68   .01   4.54   4.55     (.31 ) (.31 ) 17.92   33.66   75   1.08   1.08   1.45   .04  
10/31/2020 12.96   .06   1.02   1.08   (.02 ) (.34 ) (.36 ) 13.68   8.43   49   1.11   1.11   1.49   .44  
10/31/2019 11.96   .06   1.26   1.32   (.01 ) (.31 ) (.32 ) 12.96   11.46   34   1.12   1.12   1.51   .51  
10/31/2018 12.05   .04   11 .04   (.02 ) (.11 ) (.13 ) 11.96   .25   20   1.13   1.13   1.53   .34  
10/31/2017 10.18   .04   2.03   2.07   (.07 ) (.13 ) (.20 ) 12.05   20.63   13   1.20   1.16   1.56   .36  
Class T:                                                         
10/31/2021 13.97   .17   4.62   4.79   (.11 ) (.31 ) (.42 ) 18.34   34.86 14 12 .15 14 .15 14 .52 14 .99 14
10/31/2020 13.20   .19   1.05   1.24   (.13 ) (.34 ) (.47 ) 13.97   9.48 14 12 .16 14 .16 14 .54 14 1.45 14
10/31/2019 12.16   .20   1.25   1.45   (.10 ) (.31 ) (.41 ) 13.20   12.54 14 12 .16 14 .16 14 .55 14 1.58 14
10/31/2018 12.22   .17   (.02 ) .15   (.10 ) (.11 ) (.21 ) 12.16   1.20 14 12 .17 14 .17 14 .57 14 1.36 14
10/31/20177,15 10.94   .06   1.22   1.28         12.22   11.70 9,14 12 .18 10,14 .14 10,14 .54 10,14 .95 10,14
Class F-1:                                                         
10/31/2021 13.93   .12   4.62   4.74   (.09 ) (.31 ) (.40 ) 18.27   34.57   31   .37   .37   .74   .73  
10/31/2020 13.17   .15   1.05   1.20   (.10 ) (.34 ) (.44 ) 13.93   9.24   15   .38   .38   .76   1.15  
10/31/2019 12.15   .15   1.27   1.42   (.09 ) (.31 ) (.40 ) 13.17   12.26   9   .39   .39   .78   1.23  
10/31/2018 12.21   .13   11 .13   (.08 ) (.11 ) (.19 ) 12.15   1.04   5   .39   .39   .79   .99  
10/31/2017 10.29   .12   2.05   2.17   (.12 ) (.13 ) (.25 ) 12.21   21.55   1   .45   .41   .81   1.02  
Class F-2:                                                         
10/31/2021 14.00   .17   4.65   4.82   (.12 ) (.31 ) (.43 ) 18.39   35.02   55   .09   .09   .46   1.00  
10/31/2020 13.23   .19   1.05   1.24   (.13 ) (.34 ) (.47 ) 14.00   9.52   29   .10   .10   .48   1.41  
10/31/2019 12.20   .18   1.27   1.45   (.11 ) (.31 ) (.42 ) 13.23   12.50   17   .12   .12   .51   1.46  
10/31/2018 12.25   .16   .01   .17   (.11 ) (.11 ) (.22 ) 12.20   1.32   9   .13   .13   .53   1.27  
10/31/2017 10.30   .15   2.05   2.20   (.12 ) (.13 ) (.25 ) 12.25   21.82   2   .19   .15   .55   1.33  
Class F-3:                                                         
10/31/2021 13.98   .18   4.64   4.82   (.13 ) (.31 ) (.44 ) 18.36   35.08   3   .01   .01   .38   1.07  
10/31/2020 13.21   .17   1.08   1.25   (.14 ) (.34 ) (.48 ) 13.98   9.59   1   .02   .02   .40   1.27  
10/31/2019 12.17   .22   1.25   1.47   (.12 ) (.31 ) (.43 ) 13.21   12.69   6   .03   .03   .42   1.77  
10/31/2018 12.23   .19   (.03 ) .16   (.11 ) (.11 ) (.22 ) 12.17   1.28   7   .04   .04   .44   1.47  
10/31/20177,16 10.65   .09   1.49   1.58         12.23   14.84 9 6   .06 10 .02 10 .42 10 1.06 10
Class R-1:                                                         
10/31/2021 13.74   11 4.56   4.56   (.01 ) (.31 ) (.32 ) 17.98   33.60   6   1.11   1.11   1.48   (.01 )
10/31/2020 13.01   .04   1.04   1.08   (.01 ) (.34 ) (.35 ) 13.74   8.40   3   1.14   1.14   1.52   .28  
10/31/2019 12.01   .07   1.26   1.33   (.02 ) (.31 ) (.33 ) 13.01   11.47   1   1.10   1.10   1.49   .60  
10/31/2018 12.10   .04   11 .04   (.02 ) (.11 ) (.13 ) 12.01   .27   1   1.10   1.10   1.50   .33  
10/31/2017 10.21   .04   2.04   2.08   (.06 ) (.13 ) (.19 ) 12.10   20.68   1   1.17   1.14   1.54   .32  
Class R-2:                                                         
10/31/2021 13.68   11 4.54   4.54     (.31 ) (.31 ) 17.91   33.58   304   1.11   1.11   1.48   .02  
10/31/2020 12.96   .06   1.02   1.08   (.02 ) (.34 ) (.36 ) 13.68   8.42   204   1.12   1.12   1.50   .44  
10/31/2019 11.96   .07   1.25   1.32   (.01 ) (.31 ) (.32 ) 12.96   11.44   148   1.13   1.13   1.52   .53  
10/31/2018 12.06   .04   (.01 ) .03   (.02 ) (.11 ) (.13 ) 11.96   .22   92   1.14   1.14   1.54   .35  
10/31/2017 10.18   .04   2.04   2.08   (.07 ) (.13 ) (.20 ) 12.06   20.71   58   1.19   1.15   1.55   .36  
Class R-2E:                                                         
10/31/2021 13.77   .05   4.58   4.63   (.04 ) (.31 ) (.35 ) 18.05   34.05   68   .81   .81   1.18   .30  
10/31/2020 13.04   .09   1.04   1.13   (.06 ) (.34 ) (.40 ) 13.77   8.74   40   .82   .82   1.20   .71  
10/31/2019 12.04   .10   1.26   1.36   (.05 ) (.31 ) (.36 ) 13.04   11.75   27   .83   .83   1.22   .79  
10/31/2018 12.14   .07   .01   .08   (.07 ) (.11 ) (.18 ) 12.04   .57   14   .84   .84   1.24   .58  
10/31/2017 10.25   .06   2.05   2.11   (.09 ) (.13 ) (.22 ) 12.14   20.94   5   .85   .82   1.22   .52  
Class R-3:                                                         
10/31/2021 13.82   .08   4.58   4.66   (.05 ) (.31 ) (.36 ) 18.12   34.22   383   .66   .66   1.03   .45  
10/31/2020 13.08   .11   1.04   1.15   (.07 ) (.34 ) (.41 ) 13.82   8.91   236   .67   .67   1.05   .86  
10/31/2019 12.07   .12   1.26   1.38   (.06 ) (.31 ) (.37 ) 13.08   11.91   158   .68   .68   1.07   .96  
10/31/2018 12.15   .10   (.01 ) .09   (.06 ) (.11 ) (.17 ) 12.07   .69   91   .69   .69   1.09   .77  
10/31/2017 10.23   .09   2.05   2.14   (.09 ) (.13 ) (.22 ) 12.15   21.25   49   .74   .70   1.10   .79  
Class R-4:                                                         
10/31/2021 13.92   .12   4.62   4.74   (.08 ) (.31 ) (.39 ) 18.27   34.57   381   .36   .36   .73   .73  
10/31/2020 13.16   .16   1.04   1.20   (.10 ) (.34 ) (.44 ) 13.92   9.27   285   .37   .37   .75   1.17  
10/31/2019 12.13   .16   1.27   1.43   (.09 ) (.31 ) (.40 ) 13.16   12.30   190   .38   .38   .77   1.25  
10/31/2018 12.20   .14   (.01 ) .13   (.09 ) (.11 ) (.20 ) 12.13   .98   105   .39   .39   .79   1.07  
10/31/2017 10.27   .12   2.05   2.17   (.11 ) (.13 ) (.24 ) 12.20   21.57   57   .43   .40   .80   1.04  

American Funds Target Date Retirement Series / Prospectus     110


 
 

 

                                                         
    Income from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
(loss)
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
(loss)
to average
net assets3
Class R-5E:                                                         
10/31/2021 $13.95   $.16   $4.63   $4.79   $(.12 ) $(.31 ) $(.43 ) $18.31   34.87 % $187   .16 % .16 % .53 % .95 %
10/31/2020 13.18   .19   1.05   1.24   (.13 ) (.34 ) (.47 ) 13.95   9.50   116   .17   .17   .55   1.41  
10/31/2019 12.16   .18   1.26   1.44   (.11 ) (.31 ) (.42 ) 13.18   12.43   75   .17   .17   .56   1.39  
10/31/2018 12.22   .15   .01   .16   (.11 ) (.11 ) (.22 ) 12.16   1.22   27   .18   .18   .58   1.21  
10/31/2017 10.28   .13   2.06   2.19   (.12 ) (.13 ) (.25 ) 12.22   21.79   7   .22   .19   .59   1.13  
Class R-5:                                                         
10/31/2021 14.03   .18   4.65   4.83   (.13 ) (.31 ) (.44 ) 18.42   34.97   106   .06   .06   .43   1.05  
10/31/2020 13.25   .20   1.06   1.26   (.14 ) (.34 ) (.48 ) 14.03   9.60   66   .07   .07   .45   1.51  
10/31/2019 12.21   .20   1.26   1.46   (.11 ) (.31 ) (.42 ) 13.25   12.59   48   .08   .08   .47   1.61  
10/31/2018 12.26   .18   (.01 ) .17   (.11 ) (.11 ) (.22 ) 12.21   1.31   35   .10   .10   .50   1.38  
10/31/2017 10.31   .14   2.07   2.21   (.13 ) (.13 ) (.26 ) 12.26   21.90   47   .13   .09   .49   1.25  
Class R-6:                                                         
10/31/2021 14.04   .19   4.65   4.84   (.13 ) (.31 ) (.44 ) 18.44   35.07   3,763   .01   .01   .38   1.09  
10/31/2020 13.26   .20   1.06   1.26   (.14 ) (.34 ) (.48 ) 14.04   9.64   1,888   .02   .02   .40   1.48  
10/31/2019 12.22   .20   1.27   1.47   (.12 ) (.31 ) (.43 ) 13.26   12.64   1,069   .03   .03   .42   1.57  
10/31/2018 12.27   .18   (.01 ) .17   (.11 ) (.11 ) (.22 ) 12.22   1.36   477   .04   .04   .44   1.41  
10/31/2017 10.32   .15   2.06   2.21   (.13 ) (.13 ) (.26 ) 12.27   21.90   186   .08   .05   .45   1.29  

111     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2055 Target Date Retirement Fund

                                                     
    Income from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class A:                                                     
10/31/2021 $20.85   $.20   $6.90   $7.10   $(.15 ) $(.55 ) $(.70 ) $27.25   34.62 % $1,143   .33 % .70 % .79 %
10/31/2020 19.83   .24   1.58   1.82   (.17 ) (.63 ) (.80 ) 20.85   9.27   752   .35   .73   1.21  
10/31/2019 18.45   .25   1.88   2.13   (.15 ) (.60 ) (.75 ) 19.83   12.31   581   .36   .75   1.33  
10/31/2018 18.66   .22   (.02 ) .20   (.14 ) (.27 ) (.41 ) 18.45   1.02   431   .34   .74   1.16  
10/31/2017 15.82   .22   3.12   3.34   (.13 ) (.37 ) (.50 ) 18.66   21.70   369   .34   .74   1.28  
Class C:                                                     
10/31/2021 20.39   .01   6.75   6.76   (.01 ) (.55 ) (.56 ) 26.59   33.59   103   1.07   1.44   .05  
10/31/2020 19.42   .09   1.55   1.64   (.04 ) (.63 ) (.67 ) 20.39   8.51   71   1.09   1.47   .48  
10/31/2019 18.09   .11   1.85   1.96   (.03 ) (.60 ) (.63 ) 19.42   11.43   57   1.11   1.50   .58  
10/31/2018 18.32   .07   (.01 ) .06   (.02 ) (.27 ) (.29 ) 18.09   .29   42   1.11   1.51   .39  
10/31/2017 15.58   .08   3.07   3.15   (.04 ) (.37 ) (.41 ) 18.32   20.66   35   1.13   1.53   .45  
Class T:                                                     
10/31/2021 20.89   .25   6.89   7.14   (.18 ) (.55 ) (.73 ) 27.30   34.80 14 12 .14 14 .51 14 1.00 14
10/31/2020 19.85   .29   1.58   1.87   (.20 ) (.63 ) (.83 ) 20.89   9.56 14 12 .15 14 .53 14 1.46 14
10/31/2019 18.47   .30   1.87   2.17   (.19 ) (.60 ) (.79 ) 19.85   12.52 14 12 .14 14 .53 14 1.60 14
10/31/2018 18.68   .27   (.04 ) .23   (.17 ) (.27 ) (.44 ) 18.47   1.21 14 12 .14 14 .54 14 1.39 14
10/31/20177,15 16.72   .10   1.86   1.96         18.68   11.72 9,14 12 .14 10,14 .54 10,14 .95 10,14
Class F-1:                                                     
10/31/2021 20.73   .19   6.84   7.03   (.15 ) (.55 ) (.70 ) 27.06   34.49   56   .37   .74   .74  
10/31/2020 19.71   .23   1.58   1.81   (.16 ) (.63 ) (.79 ) 20.73   9.30   34   .37   .75   1.17  
10/31/2019 18.36   .25   1.86   2.11   (.16 ) (.60 ) (.76 ) 19.71   12.24   22   .38   .77   1.33  
10/31/2018 18.58   .21   (.01 ) .20   (.15 ) (.27 ) (.42 ) 18.36   1.02   18   .37   .77   1.07  
10/31/2017 15.78   .17   3.15   3.32   (.15 ) (.37 ) (.52 ) 18.58   21.64   9   .37   .77   .98  
Class F-2:                                                     
10/31/2021 20.89   .26   6.90   7.16   (.20 ) (.55 ) (.75 ) 27.30   34.89   58   .09   .46   1.02  
10/31/2020 19.85   .29   1.59   1.88   (.21 ) (.63 ) (.84 ) 20.89   9.61   33   .10   .48   1.47  
10/31/2019 18.48   .29   1.88   2.17   (.20 ) (.60 ) (.80 ) 19.85   12.55   24   .10   .49   1.55  
10/31/2018 18.69   .25   (.01 ) .24   (.18 ) (.27 ) (.45 ) 18.48   1.24   14   .11   .51   1.28  
10/31/2017 15.85   .24   3.14   3.38   (.17 ) (.37 ) (.54 ) 18.69   21.92   4   .12   .52   1.40  
Class F-3:                                                     
10/31/2021 20.93   .28   6.91   7.19   (.21 ) (.55 ) (.76 ) 27.36   35.00   12   .01   .38   1.10  
10/31/2020 19.89   .31   1.59   1.90   (.23 ) (.63 ) (.86 ) 20.93   9.67   7   .01   .39   1.57  
10/31/2019 18.51   .32   1.87   2.19   (.21 ) (.60 ) (.81 ) 19.89   12.65   6   .02   .41   1.70  
10/31/2018 18.70   .28   (.01 ) .27   (.19 ) (.27 ) (.46 ) 18.51   1.41   5   .01   .41   1.44  
10/31/20177,16 16.29   .06   2.35   2.41         18.70   14.79 9 1   .02 10 .42 10 .45 10
Class R-1:                                                     
10/31/2021 20.31   11 6.72   6.72   (.05 ) (.55 ) (.60 ) 26.43   33.58   11   1.11   1.48   .01  
10/31/2020 19.34   .08   1.54   1.62   (.02 ) (.63 ) (.65 ) 20.31   8.44   5   1.14   1.52   .42  
10/31/2019 18.03   .10   1.84   1.94   (.03 ) (.60 ) (.63 ) 19.34   11.36   4   1.14   1.53   .57  
10/31/2018 18.25   .07   (.01 ) .06   (.01 ) (.27 ) (.28 ) 18.03   .27   4   1.14   1.54   .35  
10/31/2017 15.49   .08   3.05   3.13   11 (.37 ) (.37 ) 18.25   20.63   2   1.15   1.55   .46  
Class R-2:                                                     
10/31/2021 20.32   .01   6.71   6.72     (.55 ) (.55 ) 26.49   33.53   601   1.10   1.47   .03  
10/31/2020 19.35   .09   1.54   1.63   (.03 ) (.63 ) (.66 ) 20.32   8.49   438   1.12   1.50   .48  
10/31/2019 18.02   .11   1.84   1.95   (.02 ) (.60 ) (.62 ) 19.35   11.42   379   1.11   1.50   .60  
10/31/2018 18.25   .08   (.02 ) .06   (.02 ) (.27 ) (.29 ) 18.02   .29   306   1.12   1.52   .41  
10/31/2017 15.51   .08   3.06   3.14   (.03 ) (.37 ) (.40 ) 18.25   20.69   267   1.12   1.52   .48  
Class R-2E:                                                     
10/31/2021 20.47   .08   6.77   6.85   (.06 ) (.55 ) (.61 ) 26.71   33.96   144   .81   1.18   .32  
10/31/2020 19.50   .15   1.55   1.70   (.10 ) (.63 ) (.73 ) 20.47   8.79   98   .81   1.19   .75  
10/31/2019 18.17   .15   1.87   2.02   (.09 ) (.60 ) (.69 ) 19.50   11.81   74   .81   1.20   .83  
10/31/2018 18.44   .12   (.01 ) .11   (.11 ) (.27 ) (.38 ) 18.17   .52   44   .81   1.21   .63  
10/31/2017 15.69   .09   3.14   3.23   (.11 ) (.37 ) (.48 ) 18.44   21.10   22   .81   1.21   .51  
Class R-3:                                                     
10/31/2021 20.59   .12   6.79   6.91   (.08 ) (.55 ) (.63 ) 26.87   34.11   823   .66   1.03   .47  
10/31/2020 19.59   .18   1.56   1.74   (.11 ) (.63 ) (.74 ) 20.59   8.98   578   .67   1.05   .91  
10/31/2019 18.24   .19   1.86   2.05   (.10 ) (.60 ) (.70 ) 19.59   11.92   478   .67   1.06   1.03  
10/31/2018 18.46   .16   (.02 ) .14   (.09 ) (.27 ) (.36 ) 18.24   .70   367   .67   1.07   .83  
10/31/2017 15.67   .16   3.09   3.25   (.09 ) (.37 ) (.46 ) 18.46   21.27   304   .67   1.07   .92  
Class R-4:                                                     
10/31/2021 20.81   .19   6.87   7.06   (.13 ) (.55 ) (.68 ) 27.19   34.50   925   .36   .73   .75  
10/31/2020 19.78   .24   1.59   1.83   (.17 ) (.63 ) (.80 ) 20.81   9.34   804   .36   .74   1.22  
10/31/2019 18.41   .25   1.87   2.12   (.15 ) (.60 ) (.75 ) 19.78   12.27   653   .36   .75   1.30  
10/31/2018 18.62   .22   (.02 ) .20   (.14 ) (.27 ) (.41 ) 18.41   1.01   444   .37   .77   1.12  
10/31/2017 15.80   .20   3.12   3.32   (.13 ) (.37 ) (.50 ) 18.62   21.60   353   .36   .76   1.16  

American Funds Target Date Retirement Series / Prospectus     112


 
 

 

                                                     
    Income from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class R-5E:                                                     
10/31/2021 $20.81   $.24   $6.88   $7.12   $(.19 ) $(.55 ) $(.74 ) $27.19   34.81 % $403   .16 % .53 % .96 %
10/31/2020 19.78   .29   1.57   1.86   (.20 ) (.63 ) (.83 ) 20.81   9.53   291   .16   .54   1.46  
10/31/2019 18.42   .28   1.87   2.15   (.19 ) (.60 ) (.79 ) 19.78   12.48   228   .16   .55   1.50  
10/31/2018 18.63   .25   (.01 ) .24   (.18 ) (.27 ) (.45 ) 18.42   1.23   131   .16   .56   1.29  
10/31/2017 15.81   .23   3.13   3.36   (.17 ) (.37 ) (.54 ) 18.63   21.85   40   .16   .56   1.33  
Class R-5:                                                     
10/31/2021 21.06   .27   6.96   7.23   (.20 ) (.55 ) (.75 ) 27.54   34.97   294   .06   .43   1.07  
10/31/2020 20.00   .32   1.59   1.91   (.22 ) (.63 ) (.85 ) 21.06   9.66   203   .06   .44   1.60  
10/31/2019 18.61   .32   1.87   2.19   (.20 ) (.60 ) (.80 ) 20.00   12.58   209   .07   .46   1.67  
10/31/2018 18.81   .28   (.03 ) .25   (.18 ) (.27 ) (.45 ) 18.61   1.30   193   .07   .47   1.44  
10/31/2017 15.94   .25   3.16   3.41   (.17 ) (.37 ) (.54 ) 18.81   22.02   228   .07   .47   1.41  
Class R-6:                                                     
10/31/2021 21.09   .28   6.97   7.25   (.21 ) (.55 ) (.76 ) 27.58   35.03   8,209   .01   .38   1.10  
10/31/2020 20.03   .31   1.61   1.92   (.23 ) (.63 ) (.86 ) 21.09   9.70   4,709   .01   .39   1.51  
10/31/2019 18.64   .31   1.89   2.20   (.21 ) (.60 ) (.81 ) 20.03   12.62   3,140   .02   .41   1.62  
10/31/2018 18.83   .28   (.01 ) .27   (.19 ) (.27 ) (.46 ) 18.64   1.39   1,711   .02   .42   1.44  
10/31/2017 15.96   .26   3.16   3.42   (.18 ) (.37 ) (.55 ) 18.83   22.04   822   .02   .42   1.47  

113     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2050 Target Date Retirement Fund

                                                         
    Income from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class A:                                                         
10/31/2021 $16.67   $.16   $5.48   $5.64   $(.12 ) $(.47 ) $(.59 ) $21.72   34.41 % $1,931   .33 % .33 % .69 % .82 %
10/31/2020 15.88   .20   1.27   1.47   (.14 ) (.54 ) (.68 ) 16.67   9.36   1,334   .34   .34   .72   1.24  
10/31/2019 14.83   .20   1.50   1.70   (.13 ) (.52 ) (.65 ) 15.88   12.23   1,109   .36   .36   .75   1.34  
10/31/2018 15.02   .18   (.01 ) .17   (.12 ) (.24 ) (.36 ) 14.83   1.06   872   .34   .34   .74   1.17  
10/31/2017 12.78   .18   2.51   2.69   (.12 ) (.33 ) (.45 ) 15.02   21.66   773   .34   .34   .74   1.29  
Class C:                                                         
10/31/2021 16.25   .01   5.33   5.34   11 (.47 ) (.47 ) 21.12   33.36   160   1.07   1.07   1.43   .07  
10/31/2020 15.51   .08   1.24   1.32   (.04 ) (.54 ) (.58 ) 16.25   8.57   113   1.09   1.09   1.47   .48  
10/31/2019 14.49   .09   1.48   1.57   (.03 ) (.52 ) (.55 ) 15.51   11.47   91   1.10   1.10   1.49   .59  
10/31/2018 14.71   .06   (.02 ) .04   (.02 ) (.24 ) (.26 ) 14.49   .23   68   1.11   1.11   1.51   .39  
10/31/2017 12.55   .06   2.48   2.54   (.05 ) (.33 ) (.38 ) 14.71   20.77   54   1.12   1.12   1.52   .45  
Class T:                                                         
10/31/2021 16.70   .20   5.48   5.68   (.15 ) (.47 ) (.62 ) 21.76   34.61 14 12 .14 14 .14 14 .50 14 1.02 14
10/31/2020 15.90   .23   1.28   1.51   (.17 ) (.54 ) (.71 ) 16.70   9.62 14 12 .15 14 .15 14 .53 14 1.46 14
10/31/2019 14.84   .24   1.50   1.74   (.16 ) (.52 ) (.68 ) 15.90   12.52 14 12 .14 14 .14 14 .53 14 1.60 14
10/31/2018 15.04   .22   (.03 ) .19   (.15 ) (.24 ) (.39 ) 14.84   1.19 14 12 .14 14 .14 14 .54 14 1.39 14
10/31/20177,15 13.46   .08   1.50   1.58         15.04   11.74 9,14 12 .14 10,14 .14 10,14 .54 10,14 .95 10,14
Class F-1:                                                         
10/31/2021 16.56   .15   5.43   5.58   (.12 ) (.47 ) (.59 ) 21.55   34.28   86   .37   .37   .73   .76  
10/31/2020 15.78   .19   1.27   1.46   (.14 ) (.54 ) (.68 ) 16.56   9.35   49   .37   .37   .75   1.18  
10/31/2019 14.74   .19   1.50   1.69   (.13 ) (.52 ) (.65 ) 15.78   12.27   34   .38   .38   .77   1.30  
10/31/2018 14.94   .17   (.01 ) .16   (.12 ) (.24 ) (.36 ) 14.74   1.02   25   .37   .37   .77   1.08  
10/31/2017 12.74   .14   2.52   2.66   (.13 ) (.33 ) (.46 ) 14.94   21.58   14   .37   .37   .77   1.04  
Class F-2:                                                         
10/31/2021 16.68   .21   5.48   5.69   (.16 ) (.47 ) (.63 ) 21.74   34.74   97   .09   .09   .45   1.05  
10/31/2020 15.89   .23   1.28   1.51   (.18 ) (.54 ) (.72 ) 16.68   9.61   60   .09   .09   .47   1.46  
10/31/2019 14.83   .23   1.51   1.74   (.16 ) (.52 ) (.68 ) 15.89   12.60   44   .10   .10   .49   1.52  
10/31/2018 15.03   .21   (.02 ) .19   (.15 ) (.24 ) (.39 ) 14.83   1.22   30   .11   .11   .51   1.34  
10/31/2017 12.79   .20   2.52   2.72   (.15 ) (.33 ) (.48 ) 15.03   21.94   12   .11   .11   .51   1.42  
Class F-3:                                                         
10/31/2021 16.73   .22   5.49   5.71   (.17 ) (.47 ) (.64 ) 21.80   34.78   12   .01   .01   .37   1.07  
10/31/2020 15.93   .30   1.23   1.53   (.19 ) (.54 ) (.73 ) 16.73   9.74   4   .01   .01   .39   1.87  
10/31/2019 14.87   .24   1.52   1.76   (.18 ) (.52 ) (.70 ) 15.93   12.66   9   .01   .01   .40   1.56  
10/31/2018 15.05   .21   .01   .22   (.16 ) (.24 ) (.40 ) 14.87   1.41   3   .01   .01   .41   1.32  
10/31/20177,16 13.11   .12   1.82   1.94         15.05   14.80 9 12 .02 10 .01 10 .41 10 1.09 10
Class R-1:                                                         
10/31/2021 16.24   .01   5.34   5.35   (.01 ) (.47 ) (.48 ) 21.11   33.40   21   1.11   1.11   1.47   .05  
10/31/2020 15.49   .07   1.23   1.30   (.01 ) (.54 ) (.55 ) 16.24   8.46   14   1.14   1.14   1.52   .44  
10/31/2019 14.46   .09   1.48   1.57   (.02 ) (.52 ) (.54 ) 15.49   11.46   12   1.13   1.13   1.52   .58  
10/31/2018 14.67   .06   (.02 ) .04   (.01 ) (.24 ) (.25 ) 14.46   .18   11   1.14   1.14   1.54   .37  
10/31/2017 12.49   .07   2.46   2.53   (.02 ) (.33 ) (.35 ) 14.67   20.75   10   1.14   1.14   1.54   .50  
Class R-2:                                                         
10/31/2021 16.23   .01   5.33   5.34     (.47 ) (.47 ) 21.10   33.36   902   1.10   1.10   1.46   .06  
10/31/2020 15.49   .07   1.24   1.31   (.03 ) (.54 ) (.57 ) 16.23   8.52   680   1.11   1.11   1.49   .48  
10/31/2019 14.47   .09   1.47   1.56   (.02 ) (.52 ) (.54 ) 15.49   11.40   598   1.11   1.11   1.50   .61  
10/31/2018 14.68   .06   (.01 ) .05   (.02 ) (.24 ) (.26 ) 14.47   .26   498   1.11   1.11   1.51   .41  
10/31/2017 12.51   .07   2.46   2.53   (.03 ) (.33 ) (.36 ) 14.68   20.74   460   1.10   1.10   1.50   .51  
Class R-2E:                                                         
10/31/2021 16.34   .07   5.36   5.43   (.04 ) (.47 ) (.51 ) 21.26   33.77   229   .81   .81   1.17   .34  
10/31/2020 15.59   .12   1.25   1.37   (.08 ) (.54 ) (.62 ) 16.34   8.85   163   .81   .81   1.19   .77  
10/31/2019 14.58   .13   1.47   1.60   (.07 ) (.52 ) (.59 ) 15.59   11.70   136   .81   .81   1.20   .86  
10/31/2018 14.81   .10   11 .10   (.09 ) (.24 ) (.33 ) 14.58   .59   94   .81   .81   1.21   .64  
10/31/2017 12.64   .08   2.52   2.60   (.10 ) (.33 ) (.43 ) 14.81   21.15   54   .80   .80   1.20   .55  
Class R-3:                                                         
10/31/2021 16.44   .10   5.40   5.50   (.07 ) (.47 ) (.54 ) 21.40   33.97   1,362   .66   .66   1.02   .50  
10/31/2020 15.68   .15   1.24   1.39   (.09 ) (.54 ) (.63 ) 16.44   8.98   1,017   .66   .66   1.04   .93  
10/31/2019 14.64   .16   1.48   1.64   (.08 ) (.52 ) (.60 ) 15.68   11.93   896   .66   .66   1.05   1.04  
10/31/2018 14.84   .13   (.01 ) .12   (.08 ) (.24 ) (.32 ) 14.64   .73   727   .67   .67   1.07   .85  
10/31/2017 12.64   .13   2.48   2.61   (.08 ) (.33 ) (.41 ) 14.84   21.24   650   .66   .66   1.06   .94  
Class R-4:                                                         
10/31/2021 16.62   .15   5.46   5.61   (.10 ) (.47 ) (.57 ) 21.66   34.35   1,482   .36   .36   .72   .77  
10/31/2020 15.84   .20   1.26   1.46   (.14 ) (.54 ) (.68 ) 16.62   9.32   1,306   .36   .36   .74   1.23  
10/31/2019 14.78   .20   1.50   1.70   (.12 ) (.52 ) (.64 ) 15.84   12.31   1,113   .36   .36   .75   1.32  
10/31/2018 14.98   .18   (.02 ) .16   (.12 ) (.24 ) (.36 ) 14.78   1.00   842   .37   .37   .77   1.14  
10/31/2017 12.75   .16   2.52   2.68   (.12 ) (.33 ) (.45 ) 14.98   21.64   747   .36   .36   .76   1.19  

American Funds Target Date Retirement Series / Prospectus     114


 
 

 

                                                         
    Income from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class R-5E:                                                         
10/31/2021 $16.63   $.20   $5.46   $5.66   $(.15 ) $(.47 ) $(.62 ) $21.67   34.65 % $635   .15 % .15 % .51 % .99 %
10/31/2020 15.84   .23   1.27   1.50   (.17 ) (.54 ) (.71 ) 16.63   9.58   500   .16   .16   .54   1.47  
10/31/2019 14.80   .22   1.50   1.72   (.16 ) (.52 ) (.68 ) 15.84   12.45   423   .16   .16   .55   1.46  
10/31/2018 14.99   .20   11 .20   (.15 ) (.24 ) (.39 ) 14.80   1.26   227   .15   .15   .55   1.26  
10/31/2017 12.76   .19   2.51   2.70   (.14 ) (.33 ) (.47 ) 14.99   21.89   80   .15   .15   .55   1.35  
Class R-5:                                                         
10/31/2021 16.84   .22   5.53   5.75   (.16 ) (.47 ) (.63 ) 21.96   34.79   434   .06   .06   .42   1.10  
10/31/2020 16.03   .26   1.27   1.53   (.18 ) (.54 ) (.72 ) 16.84   9.68   317   .06   .06   .44   1.61  
10/31/2019 14.96   .26   1.50   1.76   (.17 ) (.52 ) (.69 ) 16.03   12.58   351   .06   .06   .45   1.69  
10/31/2018 15.14   .23   (.01 ) .22   (.16 ) (.24 ) (.40 ) 14.96   1.36   357   .07   .07   .47   1.48  
10/31/2017 12.88   .20   2.54   2.74   (.15 ) (.33 ) (.48 ) 15.14   21.96   487   .06   .06   .46   1.45  
Class R-6:                                                         
10/31/2021 16.79   .23   5.51   5.74   (.17 ) (.47 ) (.64 ) 21.89   34.84   13,630   .01   .01   .37   1.12  
10/31/2020 15.98   .25   1.29   1.54   (.19 ) (.54 ) (.73 ) 16.79   9.76   8,138   .01   .01   .39   1.53  
10/31/2019 14.92   .25   1.51   1.76   (.18 ) (.52 ) (.70 ) 15.98   12.61   5,959   .01   .01   .40   1.63  
10/31/2018 15.10   .23   (.01 ) .22   (.16 ) (.24 ) (.40 ) 14.92   1.41   3,578   .01   .01   .41   1.45  
10/31/2017 12.85   .21   2.52   2.73   (.15 ) (.33 ) (.48 ) 15.10   21.98   2,004   .02   .02   .42   1.49  

115     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2045 Target Date Retirement Fund

                                                         
    Income from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class A:                                                         
10/31/2021 $16.96   $.18   $5.46   $5.64   $(.14 ) $(.47 ) $(.61 ) $21.99   33.82 % $2,142   .32 % .32 % .68 % .89 %
10/31/2020 16.20   .21   1.25   1.46   (.16 ) (.54 ) (.70 ) 16.96   9.14   1,507   .34   .34   .72   1.29  
10/31/2019 15.13   .21   1.53   1.74   (.14 ) (.53 ) (.67 ) 16.20   12.30   1,254   .35   .35   .74   1.40  
10/31/2018 15.34   .19   (.05 ) .14   (.12 ) (.23 ) (.35 ) 15.13   .92   998   .33   .33   .72   1.22  
10/31/2017 13.07   .18   2.54   2.72   (.12 ) (.33 ) (.45 ) 15.34   21.46   908   .33   .33   .73   1.31  
Class C:                                                         
10/31/2021 16.55   .03   5.32   5.35   (.02 ) (.47 ) (.49 ) 21.41   32.80   166   1.07   1.07   1.43   .15  
10/31/2020 15.83   .09   1.22   1.31   (.05 ) (.54 ) (.59 ) 16.55   8.39   117   1.09   1.09   1.47   .55  
10/31/2019 14.80   .10   1.50   1.60   (.04 ) (.53 ) (.57 ) 15.83   11.43   98   1.10   1.10   1.49   .63  
10/31/2018 15.04   .07   (.05 ) .02   (.03 ) (.23 ) (.26 ) 14.80   .10   74   1.10   1.10   1.49   .44  
10/31/2017 12.85   .07   2.50   2.57   (.05 ) (.33 ) (.38 ) 15.04   20.53   63   1.12   1.12   1.52   .48  
Class T:                                                         
10/31/2021 16.98   .22   5.47   5.69   (.17 ) (.47 ) (.64 ) 22.03   34.12 14 12 .14 14 .14 14 .50 14 1.09 14
10/31/2020 16.21   .25   1.25   1.50   (.19 ) (.54 ) (.73 ) 16.98   9.39 14 12 .15 14 .15 14 .53 14 1.52 14
10/31/2019 15.15   .25   1.51   1.76   (.17 ) (.53 ) (.70 ) 16.21   12.45 14 12 .14 14 .14 14 .53 14 1.65 14
10/31/2018 15.36   .23   (.06 ) .17   (.15 ) (.23 ) (.38 ) 15.15   1.12 14 12 .14 14 .14 14 .53 14 1.43 14
10/31/20177,15 13.76   .08   1.52   1.60         15.36   11.63 9,14 12 .14 10,14 .14 10,14 .54 10,14 .98 10,14
Class F-1:                                                         
10/31/2021 16.85   .17   5.42   5.59   (.14 ) (.47 ) (.61 ) 21.83   33.76   99   .37   .37   .73   .83  
10/31/2020 16.09   .20   1.25   1.45   (.15 ) (.54 ) (.69 ) 16.85   9.18   57   .37   .37   .75   1.24  
10/31/2019 15.05   .20   1.52   1.72   (.15 ) (.53 ) (.68 ) 16.09   12.19   43   .38   .38   .77   1.34  
10/31/2018 15.27   .18   (.04 ) .14   (.13 ) (.23 ) (.36 ) 15.05   .89   30   .37   .37   .76   1.12  
10/31/2017 13.04   .15   2.55   2.70   (.14 ) (.33 ) (.47 ) 15.27   21.38   16   .37   .37   .77   1.02  
Class F-2:                                                         
10/31/2021 16.99   .23   5.46   5.69   (.18 ) (.47 ) (.65 ) 22.03   34.11   127   .09   .09   .45   1.11  
10/31/2020 16.22   .25   1.26   1.51   (.20 ) (.54 ) (.74 ) 16.99   9.44   77   .10   .10   .48   1.54  
10/31/2019 15.16   .25   1.52   1.77   (.18 ) (.53 ) (.71 ) 16.22   12.55   58   .10   .10   .49   1.59  
10/31/2018 15.37   .21   (.03 ) .18   (.16 ) (.23 ) (.39 ) 15.16   1.16   32   .10   .10   .49   1.33  
10/31/2017 13.10   .20   2.55   2.75   (.15 ) (.33 ) (.48 ) 15.37   21.70   9   .11   .11   .51   1.40  
Class F-3:                                                         
10/31/2021 17.01   .24   5.47   5.71   (.19 ) (.47 ) (.66 ) 22.06   34.22   11   .01   .01   .37   1.17  
10/31/2020 16.23   .25   1.28   1.53   (.21 ) (.54 ) (.75 ) 17.01   9.57   5   .01   .01   .39   1.54  
10/31/2019 15.17   .27   1.51   1.78   (.19 ) (.53 ) (.72 ) 16.23   12.59   3   .01   .01   .40   1.73  
10/31/2018 15.37   .24   (.04 ) .20   (.17 ) (.23 ) (.40 ) 15.17   1.27   2   .01   .01   .40   1.51  
10/31/20177,16 13.40   .13   1.84   1.97         15.37   14.70 9 1   .02 10 .01 10 .41 10 1.14 10
Class R-1:                                                         
10/31/2021 16.53   .02   5.32   5.34   (.03 ) (.47 ) (.50 ) 21.37   32.79   28   1.11   1.11   1.47   .11  
10/31/2020 15.81   .07   1.23   1.30   (.04 ) (.54 ) (.58 ) 16.53   8.30   17   1.13   1.13   1.51   .47  
10/31/2019 14.78   .09   1.49   1.58   (.02 ) (.53 ) (.55 ) 15.81   11.34   13   1.13   1.13   1.52   .62  
10/31/2018 15.01   .06   (.04 ) .02   (.02 ) (.23 ) (.25 ) 14.78   .13   11   1.13   1.13   1.52   .41  
10/31/2017 12.79   .08   2.48   2.56   (.01 ) (.33 ) (.34 ) 15.01   20.46   9   1.14   1.14   1.54   .55  
Class R-2:                                                         
10/31/2021 16.46   .02   5.29   5.31   (.01 ) (.47 ) (.48 ) 21.29   32.75   1,130   1.10   1.10   1.46   .12  
10/31/2020 15.75   .09   1.20   1.29   (.04 ) (.54 ) (.58 ) 16.46   8.30   859   1.11   1.11   1.49   .55  
10/31/2019 14.72   .10   1.49   1.59   (.03 ) (.53 ) (.56 ) 15.75   11.43   784   1.11   1.11   1.50   .66  
10/31/2018 14.95   .07   (.05 ) .02   (.02 ) (.23 ) (.25 ) 14.72   .13   665   1.11   1.11   1.50   .45  
10/31/2017 12.76   .07   2.49   2.56   (.04 ) (.33 ) (.37 ) 14.95   20.53   622   1.10   1.10   1.50   .53  
Class R-2E:                                                         
10/31/2021 16.63   .08   5.35   5.43   (.06 ) (.47 ) (.53 ) 21.53   33.16   339   .81   .81   1.17   .41  
10/31/2020 15.90   .13   1.23   1.36   (.09 ) (.54 ) (.63 ) 16.63   8.68   241   .81   .81   1.19   .83  
10/31/2019 14.87   .14   1.50   1.64   (.08 ) (.53 ) (.61 ) 15.90   11.73   212   .81   .81   1.20   .91  
10/31/2018 15.14   .11   (.04 ) .07   (.11 ) (.23 ) (.34 ) 14.87   .43   151   .81   .81   1.20   .71  
10/31/2017 12.94   .08   2.55   2.63   (.10 ) (.33 ) (.43 ) 15.14   20.92   103   .80   .80   1.20   .59  
Class R-3:                                                         
10/31/2021 16.71   .11   5.38   5.49   (.08 ) (.47 ) (.55 ) 21.65   33.41   1,546   .66   .66   1.02   .56  
10/31/2020 15.97   .16   1.23   1.39   (.11 ) (.54 ) (.65 ) 16.71   8.83   1,143   .66   .66   1.04   .99  
10/31/2019 14.93   .17   1.49   1.66   (.09 ) (.53 ) (.62 ) 15.97   11.86   1,027   .66   .66   1.05   1.10  
10/31/2018 15.15   .14   (.05 ) .09   (.08 ) (.23 ) (.31 ) 14.93   .59   857   .66   .66   1.05   .89  
10/31/2017 12.92   .13   2.52   2.65   (.09 ) (.33 ) (.42 ) 15.15   21.06   794   .66   .66   1.06   .97  
Class R-4:                                                         
10/31/2021 16.91   .17   5.45   5.62   (.12 ) (.47 ) (.59 ) 21.94   33.82   1,623   .36   .36   .72   .84  
10/31/2020 16.15   .21   1.24   1.45   (.15 ) (.54 ) (.69 ) 16.91   9.15   1,544   .36   .36   .74   1.29  
10/31/2019 15.09   .21   1.52   1.73   (.14 ) (.53 ) (.67 ) 16.15   12.23   1,363   .36   .36   .75   1.37  
10/31/2018 15.31   .19   (.06 ) .13   (.12 ) (.23 ) (.35 ) 15.09   .86   1,020   .36   .36   .75   1.18  
10/31/2017 13.05   .17   2.54   2.71   (.12 ) (.33 ) (.45 ) 15.31   21.42   930   .36   .36   .76   1.21  

American Funds Target Date Retirement Series / Prospectus     116


 
 

 

                                                         
    Income from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class R-5E:                                                         
10/31/2021 $16.91   $.21   $5.45   $5.66   $(.17 ) $(.47 ) $(.64 ) $21.93   34.09 % $779   .15 % .15 % .51 % 1.06 %
10/31/2020 16.15   .25   1.23   1.48   (.18 ) (.54 ) (.72 ) 16.91   9.34   602   .16   .16   .54   1.55  
10/31/2019 15.10   .23   1.53   1.76   (.18 ) (.53 ) (.71 ) 16.15   12.46   531   .16   .16   .55   1.52  
10/31/2018 15.31   .20   (.02 ) .18   (.16 ) (.23 ) (.39 ) 15.10   1.14   301   .15   .15   .54   1.28  
10/31/2017 13.05   .20   2.54   2.74   (.15 ) (.33 ) (.48 ) 15.31   21.67   79   .15   .15   .55   1.39  
Class R-5:                                                         
10/31/2021 17.15   .24   5.51   5.75   (.18 ) (.47 ) (.65 ) 22.25   34.17   486   .06   .06   .42   1.17  
10/31/2020 16.36   .27   1.26   1.53   (.20 ) (.54 ) (.74 ) 17.15   9.50   361   .06   .06   .44   1.67  
10/31/2019 15.28   .27   1.52   1.79   (.18 ) (.53 ) (.71 ) 16.36   12.57   395   .06   .06   .45   1.75  
10/31/2018 15.48   .24   (.05 ) .19   (.16 ) (.23 ) (.39 ) 15.28   1.21   417   .07   .07   .46   1.49  
10/31/2017 13.18   .21   2.58   2.79   (.16 ) (.33 ) (.49 ) 15.48   21.82   614   .06   .06   .46   1.47  
Class R-6:                                                         
10/31/2021 17.08   .25   5.49   5.74   (.19 ) (.47 ) (.66 ) 22.16   34.26   15,677   .01   .01   .37   1.20  
10/31/2020 16.30   .26   1.27   1.53   (.21 ) (.54 ) (.75 ) 17.08   9.53   9,561   .01   .01   .39   1.59  
10/31/2019 15.23   .26   1.53   1.79   (.19 ) (.53 ) (.72 ) 16.30   12.61   7,082   .01   .01   .40   1.69  
10/31/2018 15.43   .24   (.04 ) .20   (.17 ) (.23 ) (.40 ) 15.23   1.27   4,328   .01   .01   .40   1.50  
10/31/2017 13.14   .22   2.56   2.78   (.16 ) (.33 ) (.49 ) 15.43   21.85   2,392   .01   .01   .41   1.54  

117     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2040 Target Date Retirement Fund

                                                     
    Income from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class A:                                                     
10/31/2021 $16.64   $.19   $5.18   $5.37   $(.14 ) $(.46 ) $(.60 ) $21.41   32.90 % $2,845   .33 % .68 % .96 %
10/31/2020 15.92   .22   1.19   1.41   (.16 ) (.53 ) (.69 ) 16.64   9.02   2,039   .34   .71   1.36  
10/31/2019 14.90   .22   1.47   1.69   (.15 ) (.52 ) (.67 ) 15.92   12.15   1,735   .36   .74   1.44  
10/31/2018 15.13   .20   (.07 ) .13   (.13 ) (.23 ) (.36 ) 14.90   .86   1,399   .34   .73   1.27  
10/31/2017 12.95   .19   2.45   2.64   (.13 ) (.33 ) (.46 ) 15.13   21.02   1,296   .34   .74   1.36  
Class C:                                                     
10/31/2021 16.24   .04   5.07   5.11   (.03 ) (.46 ) (.49 ) 20.86   31.94   200   1.07   1.42   .21  
10/31/2020 15.57   .10   1.16   1.26   (.06 ) (.53 ) (.59 ) 16.24   8.19   142   1.09   1.46   .61  
10/31/2019 14.59   .10   1.45   1.55   (.05 ) (.52 ) (.57 ) 15.57   11.30   124   1.10   1.48   .69  
10/31/2018 14.85   .07   (.06 ) .01   (.04 ) (.23 ) (.27 ) 14.59   .05   95   1.10   1.49   .49  
10/31/2017 12.74   .07   2.43   2.50   (.06 ) (.33 ) (.39 ) 14.85   20.14   78   1.11   1.51   .54  
Class T:                                                     
10/31/2021 16.66   .23   5.19   5.42   (.17 ) (.46 ) (.63 ) 21.45   33.19 14 12 .14 14 .49 14 1.16 14
10/31/2020 15.94   .25   1.19   1.44   (.19 ) (.53 ) (.72 ) 16.66   9.21 14 12 .15 14 .52 14 1.58 14
10/31/2019 14.92   .26   1.46   1.72   (.18 ) (.52 ) (.70 ) 15.94   12.39 14 12 .14 14 .52 14 1.70 14
10/31/2018 15.15   .23   (.06 ) .17   (.17 ) (.23 ) (.40 ) 14.92   1.06 14 12 .14 14 .53 14 1.49 14
10/31/20177,15 13.60   .08   1.47   1.55         15.15   11.40 9,14 12 .14 10,14 .54 10,14 1.03 10,14
Class F-1:                                                     
10/31/2021 16.53   .18   5.15   5.33   (.15 ) (.46 ) (.61 ) 21.25   32.82   163   .37   .72   .90  
10/31/2020 15.82   .21   1.19   1.40   (.16 ) (.53 ) (.69 ) 16.53   9.01   102   .37   .74   1.30  
10/31/2019 14.82   .21   1.46   1.67   (.15 ) (.52 ) (.67 ) 15.82   12.11   71   .37   .75   1.39  
10/31/2018 15.07   .19   (.07 ) .12   (.14 ) (.23 ) (.37 ) 14.82   .78   50   .37   .76   1.20  
10/31/2017 12.92   .16   2.47   2.63   (.15 ) (.33 ) (.48 ) 15.07   21.02   30   .37   .77   1.11  
Class F-2:                                                     
10/31/2021 16.65   .23   5.19   5.42   (.18 ) (.46 ) (.64 ) 21.43   33.23   160   .09   .44   1.18  
10/31/2020 15.93   .25   1.20   1.45   (.20 ) (.53 ) (.73 ) 16.65   9.28   98   .09   .46   1.59  
10/31/2019 14.91   .25   1.48   1.73   (.19 ) (.52 ) (.71 ) 15.93   12.48   76   .10   .48   1.67  
10/31/2018 15.15   .22   (.06 ) .16   (.17 ) (.23 ) (.40 ) 14.91   1.03   49   .10   .49   1.40  
10/31/2017 12.97   .20   2.47   2.67   (.16 ) (.33 ) (.49 ) 15.15   21.28   13   .11   .51   1.46  
Class F-3:                                                     
10/31/2021 16.69   .25   5.21   5.46   (.20 ) (.46 ) (.66 ) 21.49   33.36   17   .01   .36   1.27  
10/31/2020 15.97   .26   1.20   1.46   (.21 ) (.53 ) (.74 ) 16.69   9.33   8   .01   .38   1.59  
10/31/2019 14.94   .28   1.47   1.75   (.20 ) (.52 ) (.72 ) 15.97   12.60   4   .01   .39   1.84  
10/31/2018 15.17   .23   (.05 ) .18   (.18 ) (.23 ) (.41 ) 14.94   1.15   3   .01   .40   1.48  
10/31/20177,16 13.25   .14   1.78   1.92         15.17   14.49 9 1   .01 10 .41 10 1.25 10
Class R-1:                                                     
10/31/2021 16.25   .03   5.07   5.10   (.03 ) (.46 ) (.49 ) 20.86   31.87   33   1.11   1.46   .17  
10/31/2020 15.56   .09   1.16   1.25   (.03 ) (.53 ) (.56 ) 16.25   8.16   22   1.14   1.51   .58  
10/31/2019 14.57   .10   1.45   1.55   (.04 ) (.52 ) (.56 ) 15.56   11.29   21   1.13   1.51   .68  
10/31/2018 14.80   .07   (.06 ) .01   (.01 ) (.23 ) (.24 ) 14.57   .04   19   1.13   1.52   .46  
10/31/2017 12.67   .08   2.40   2.48   (.02 ) (.33 ) (.35 ) 14.80   20.07   17   1.14   1.54   .60  
Class R-2:                                                     
10/31/2021 16.19   .04   5.03   5.07   (.02 ) (.46 ) (.48 ) 20.78   31.82   1,355   1.10   1.45   .20  
10/31/2020 15.51   .09   1.17   1.26   (.05 ) (.53 ) (.58 ) 16.19   8.21   1,040   1.11   1.48   .60  
10/31/2019 14.52   .11   1.44   1.55   (.04 ) (.52 ) (.56 ) 15.51   11.34   962   1.11   1.49   .72  
10/31/2018 14.77   .08   (.07 ) .01   (.03 ) (.23 ) (.26 ) 14.52   .05   856   1.11   1.50   .51  
10/31/2017 12.66   .08   2.40   2.48   (.04 ) (.33 ) (.37 ) 14.77   20.10   819   1.10   1.50   .59  
Class R-2E:                                                     
10/31/2021 16.32   .09   5.10   5.19   (.07 ) (.46 ) (.53 ) 20.98   32.31   330   .80   1.15   .49  
10/31/2020 15.65   .14   1.16   1.30   (.10 ) (.53 ) (.63 ) 16.32   8.42   240   .81   1.18   .89  
10/31/2019 14.65   .14   1.47   1.61   (.09 ) (.52 ) (.61 ) 15.65   11.75   219   .81   1.19   .96  
10/31/2018 14.93   .11   (.06 ) .05   (.10 ) (.23 ) (.33 ) 14.65   .29   155   .81   1.20   .73  
10/31/2017 12.82   .10   2.45   2.55   (.11 ) (.33 ) (.44 ) 14.93   20.47   94   .80   1.20   .70  
Class R-3:                                                     
10/31/2021 16.43   .12   5.12   5.24   (.09 ) (.46 ) (.55 ) 21.12   32.45   1,981   .66   1.01   .64  
10/31/2020 15.74   .17   1.17   1.34   (.12 ) (.53 ) (.65 ) 16.43   8.61   1,518   .66   1.03   1.05  
10/31/2019 14.72   .17   1.47   1.64   (.10 ) (.52 ) (.62 ) 15.74   11.91   1,377   .66   1.04   1.15  
10/31/2018 14.97   .15   (.08 ) .07   (.09 ) (.23 ) (.32 ) 14.72   .45   1,183   .66   1.05   .94  
10/31/2017 12.82   .14   2.43   2.57   (.09 ) (.33 ) (.42 ) 14.97   20.65   1,117   .65   1.05   1.02  
Class R-4:                                                     
10/31/2021 16.59   .18   5.17   5.35   (.13 ) (.46 ) (.59 ) 21.35   32.85   2,168   .36   .71   .91  
10/31/2020 15.88   .22   1.18   1.40   (.16 ) (.53 ) (.69 ) 16.59   8.96   1,930   .36   .73   1.35  
10/31/2019 14.85   .22   1.48   1.70   (.15 ) (.52 ) (.67 ) 15.88   12.23   1,756   .36   .74   1.44  
10/31/2018 15.10   .19   (.08 ) .11   (.13 ) (.23 ) (.36 ) 14.85   .73   1,419   .36   .75   1.24  
10/31/2017 12.93   .18   2.45   2.63   (.13 ) (.33 ) (.46 ) 15.10   20.99   1,364   .35   .75   1.28  

American Funds Target Date Retirement Series / Prospectus     118


 
 

 

                                                     
    Income from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class R-5E:                                                     
10/31/2021 $16.60   $.22   $5.18   $5.40   $(.18 ) $(.46 ) $(.64 ) $21.36   33.14 % $965   .15 % .50 % 1.13 %
10/31/2020 15.88   .26   1.18   1.44   (.19 ) (.53 ) (.72 ) 16.60   9.22   783   .16   .53   1.64  
10/31/2019 14.87   .23   1.48   1.71   (.18 ) (.52 ) (.70 ) 15.88   12.38   770   .16   .54   1.55  
10/31/2018 15.11   .20   (.04 ) .16   (.17 ) (.23 ) (.40 ) 14.87   1.00   424   .15   .54   1.31  
10/31/2017 12.94   .19   2.47   2.66   (.16 ) (.33 ) (.49 ) 15.11   21.21   131   .14   .54   1.38  
Class R-5:                                                     
10/31/2021 16.81   .25   5.23   5.48   (.19 ) (.46 ) (.65 ) 21.64   33.24   585   .06   .41   1.24  
10/31/2020 16.08   .28   1.19   1.47   (.21 ) (.53 ) (.74 ) 16.81   9.27   454   .06   .43   1.73  
10/31/2019 15.03   .27   1.49   1.76   (.19 ) (.52 ) (.71 ) 16.08   12.59   510   .06   .44   1.80  
10/31/2018 15.27   .25   (.09 ) .16   (.17 ) (.23 ) (.40 ) 15.03   1.03   541   .06   .45   1.56  
10/31/2017 13.06   .22   2.48   2.70   (.16 ) (.33 ) (.49 ) 15.27   21.39   791   .06   .46   1.53  
Class R-6:                                                     
10/31/2021 16.75   .25   5.23   5.48   (.20 ) (.46 ) (.66 ) 21.57   33.36   19,892   .01   .36   1.27  
10/31/2020 16.02   .27   1.20   1.47   (.21 ) (.53 ) (.74 ) 16.75   9.36   12,454   .01   .38   1.65  
10/31/2019 14.99   .27   1.48   1.75   (.20 ) (.52 ) (.72 ) 16.02   12.56   9,766   .01   .39   1.75  
10/31/2018 15.22   .24   (.06 ) .18   (.18 ) (.23 ) (.41 ) 14.99   1.15   6,262   .01   .40   1.56  
10/31/2017 13.02   .22   2.48   2.70   (.17 ) (.33 ) (.50 ) 15.22   21.43   3,997   .01   .41   1.59  

119     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2035 Target Date Retirement Fund

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class A:                                                     
10/31/2021 $16.21   $.20   $4.54   $4.74   $(.18 ) $(.45 ) $(.63 ) $20.32   29.81 % $3,281   .33 % .67 % 1.05 %
10/31/2020 15.54   .22   1.12   1.34   (.18 ) (.49 ) (.67 ) 16.21   8.72   2,364   .35   .71   1.41  
10/31/2019 14.55   .23   1.40   1.63   (.16 ) (.48 ) (.64 ) 15.54   11.96   2,036   .36   .73   1.52  
10/31/2018 14.79   .20   (.09 ) .11   (.14 ) (.21 ) (.35 ) 14.55   .71   1,638   .34   .72   1.33  
10/31/2017 12.75   .19   2.29   2.48   (.13 ) (.31 ) (.44 ) 14.79   20.07   1,504   .33   .72   1.40  
Class C:                                                     
10/31/2021 15.84   .06   4.44   4.50   (.06 ) (.45 ) (.51 ) 19.83   28.92   232   1.07   1.41   .31  
10/31/2020 15.22   .10   1.08   1.18   (.07 ) (.49 ) (.56 ) 15.84   7.84   168   1.09   1.45   .66  
10/31/2019 14.26   .11   1.39   1.50   (.06 ) (.48 ) (.54 ) 15.22   11.13   148   1.10   1.47   .77  
10/31/2018 14.52   .08   (.08 ) 11 (.05 ) (.21 ) (.26 ) 14.26   (.05 ) 118   1.10   1.48   .55  
10/31/2017 12.54   .08   2.27   2.35   (.06 ) (.31 ) (.37 ) 14.52   19.22   97   1.11   1.50   .59  
Class T:                                                     
10/31/2021 16.23   .24   4.55   4.79   (.21 ) (.45 ) (.66 ) 20.36   30.12 14 12 .14 14 .48 14 1.26 14
10/31/2020 15.57   .26   1.10   1.36   (.21 ) (.49 ) (.70 ) 16.23   8.84 14 12 .15 14 .51 14 1.64 14
10/31/2019 14.57   .26   1.41   1.67   (.19 ) (.48 ) (.67 ) 15.57   12.26 14 12 .14 14 .51 14 1.78 14
10/31/2018 14.81   .23   (.09 ) .14   (.17 ) (.21 ) (.38 ) 14.57   .91 14 12 .14 14 .52 14 1.55 14
10/31/20177,15 13.35   .09   1.37   1.46         14.81   10.94 9,14 12 .13 10,14 .52 10,14 1.07 10,14
Class F-1:                                                     
10/31/2021 16.11   .19   4.52   4.71   (.18 ) (.45 ) (.63 ) 20.19   29.83   203   .37   .71   1.00  
10/31/2020 15.46   .21   1.10   1.31   (.17 ) (.49 ) (.66 ) 16.11   8.62   124   .37   .73   1.36  
10/31/2019 14.48   .22   1.40   1.62   (.16 ) (.48 ) (.64 ) 15.46   11.95   90   .37   .74   1.47  
10/31/2018 14.73   .19   (.09 ) .10   (.14 ) (.21 ) (.35 ) 14.48   .69   66   .37   .75   1.26  
10/31/2017 12.72   .17   2.31   2.48   (.16 ) (.31 ) (.47 ) 14.73   20.11   44   .37   .76   1.20  
Class F-2:                                                     
10/31/2021 16.22   .24   4.56   4.80   (.22 ) (.45 ) (.67 ) 20.35   30.21   222   .09   .43   1.28  
10/31/2020 15.56   .26   1.10   1.36   (.21 ) (.49 ) (.70 ) 16.22   8.90   135   .09   .45   1.65  
10/31/2019 14.57   .26   1.41   1.67   (.20 ) (.48 ) (.68 ) 15.56   12.29   107   .10   .47   1.74  
10/31/2018 14.81   .22   (.08 ) .14   (.17 ) (.21 ) (.38 ) 14.57   .94   75   .10   .48   1.43  
10/31/2017 12.76   .21   2.31   2.52   (.16 ) (.31 ) (.47 ) 14.81   20.44   20   .11   .50   1.50  
Class F-3:                                                     
10/31/2021 16.25   .26   4.56   4.82   (.23 ) (.45 ) (.68 ) 20.39   30.31   32   .01   .35   1.35  
10/31/2020 15.58   .27   1.11   1.38   (.22 ) (.49 ) (.71 ) 16.25   9.03   16   .01   .37   1.74  
10/31/2019 14.59   .23   1.45   1.68   (.21 ) (.48 ) (.69 ) 15.58   12.33   14   .01   .38   1.52  
10/31/2018 14.82   .22   (.06 ) .16   (.18 ) (.21 ) (.39 ) 14.59   1.06   10   .01   .39   1.42  
10/31/20177,16 13.01   .13   1.68   1.81         14.82   13.91 9 2   .01 10 .40 10 1.17 10
Class R-1:                                                     
10/31/2021 15.76   .05   4.43   4.48   (.08 ) (.45 ) (.53 ) 19.71   28.91   35   1.11   1.45   .28  
10/31/2020 15.14   .10   1.07   1.17   (.06 ) (.49 ) (.55 ) 15.76   7.80   22   1.13   1.49   .63  
10/31/2019 14.18   .11   1.38   1.49   (.05 ) (.48 ) (.53 ) 15.14   11.14   21   1.13   1.50   .75  
10/31/2018 14.42   .08   (.09 ) (.01 ) (.02 ) (.21 ) (.23 ) 14.18   (.11 ) 17   1.13   1.51   .54  
10/31/2017 12.43   .09   2.24   2.33   (.03 ) (.31 ) (.34 ) 14.42   19.19   16   1.13   1.52   .66  
Class R-2:                                                     
10/31/2021 15.78   .05   4.43   4.48   (.06 ) (.45 ) (.51 ) 19.75   28.86   1,618   1.10   1.44   .30  
10/31/2020 15.16   .10   1.08   1.18   (.07 ) (.49 ) (.56 ) 15.78   7.83   1,287   1.11   1.47   .66  
10/31/2019 14.20   .11   1.38   1.49   (.05 ) (.48 ) (.53 ) 15.16   11.12   1,216   1.11   1.48   .79  
10/31/2018 14.45   .08   (.08 ) 11 (.04 ) (.21 ) (.25 ) 14.20   (.04 ) 1,051   1.11   1.49   .57  
10/31/2017 12.47   .08   2.25   2.33   (.04 ) (.31 ) (.35 ) 14.45   19.20   1,009   1.10   1.49   .64  
Class R-2E:                                                     
10/31/2021 15.88   .11   4.45   4.56   (.10 ) (.45 ) (.55 ) 19.89   29.27   445   .80   1.14   .59  
10/31/2020 15.25   .15   1.08   1.23   (.11 ) (.49 ) (.60 ) 15.88   8.19   331   .81   1.17   .95  
10/31/2019 14.30   .15   1.38   1.53   (.10 ) (.48 ) (.58 ) 15.25   11.41   293   .81   1.18   1.04  
10/31/2018 14.58   .12   (.08 ) .04   (.11 ) (.21 ) (.32 ) 14.30   .24   214   .81   1.19   .80  
10/31/2017 12.61   .10   2.30   2.40   (.12 ) (.31 ) (.43 ) 14.58   19.58   141   .80   1.19   .76  
Class R-3:                                                     
10/31/2021 16.00   .14   4.48   4.62   (.13 ) (.45 ) (.58 ) 20.04   29.40   2,363   .66   1.00   .73  
10/31/2020 15.36   .17   1.09   1.26   (.13 ) (.49 ) (.62 ) 16.00   8.31   1,811   .66   1.02   1.10  
10/31/2019 14.38   .18   1.39   1.57   (.11 ) (.48 ) (.59 ) 15.36   11.65   1,661   .66   1.03   1.23  
10/31/2018 14.62   .15   (.09 ) .06   (.09 ) (.21 ) (.30 ) 14.38   .42   1,416   .66   1.04   1.00  
10/31/2017 12.61   .14   2.28   2.42   (.10 ) (.31 ) (.41 ) 14.62   19.73   1,303   .65   1.04   1.06  
Class R-4:                                                     
10/31/2021 16.16   .19   4.53   4.72   (.16 ) (.45 ) (.61 ) 20.27   29.82   2,372   .36   .70   1.01  
10/31/2020 15.50   .22   1.10   1.32   (.17 ) (.49 ) (.66 ) 16.16   8.66   2,204   .36   .72   1.41  
10/31/2019 14.51   .22   1.41   1.63   (.16 ) (.48 ) (.64 ) 15.50   11.97   2,035   .36   .73   1.51  
10/31/2018 14.75   .20   (.09 ) .11   (.14 ) (.21 ) (.35 ) 14.51   .71   1,609   .36   .74   1.30  
10/31/2017 12.72   .18   2.29   2.47   (.13 ) (.31 ) (.44 ) 14.75   20.06   1,509   .35   .74   1.31  

American Funds Target Date Retirement Series / Prospectus     120


 
 

 

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class R-5E:                                                     
10/31/2021 $16.18   $.23   $4.54   $4.77   $(.21 ) $(.45 ) $(.66 ) $20.29   30.10 % $1,044   .15 % .49 % 1.22 %
10/31/2020 15.51   .27   1.09   1.36   (.20 ) (.49 ) (.69 ) 16.18   8.89   835   .16   .52   1.74  
10/31/2019 14.53   .24   1.41   1.65   (.19 ) (.48 ) (.67 ) 15.51   12.17   886   .16   .53   1.65  
10/31/2018 14.77   .20   (.06 ) .14   (.17 ) (.21 ) (.38 ) 14.53   .92   540   .15   .53   1.33  
10/31/2017 12.73   .20   2.31   2.51   (.16 ) (.31 ) (.47 ) 14.77   20.36   144   .14   .53   1.43  
Class R-5:                                                     
10/31/2021 16.37   .26   4.58   4.84   (.22 ) (.45 ) (.67 ) 20.54   30.21   667   .06   .40   1.34  
10/31/2020 15.69   .28   1.11   1.39   (.22 ) (.49 ) (.71 ) 16.37   8.98   515   .06   .42   1.77  
10/31/2019 14.68   .28   1.41   1.69   (.20 ) (.48 ) (.68 ) 15.69   12.33   564   .06   .43   1.88  
10/31/2018 14.91   .25   (.10 ) .15   (.17 ) (.21 ) (.38 ) 14.68   1.00   590   .06   .44   1.62  
10/31/2017 12.85   .22   2.32   2.54   (.17 ) (.31 ) (.48 ) 14.91   20.39   918   .06   .45   1.58  
Class R-6:                                                     
10/31/2021 16.31   .26   4.57   4.83   (.23 ) (.45 ) (.68 ) 20.46   30.26   22,055   .01   .35   1.36  
10/31/2020 15.63   .27   1.12   1.39   (.22 ) (.49 ) (.71 ) 16.31   9.07   14,062   .01   .37   1.71  
10/31/2019 14.63   .27   1.42   1.69   (.21 ) (.48 ) (.69 ) 15.63   12.37   10,860   .01   .38   1.83  
10/31/2018 14.87   .25   (.10 ) .15   (.18 ) (.21 ) (.39 ) 14.63   .99   7,024   .01   .39   1.62  
10/31/2017 12.81   .23   2.31   2.54   (.17 ) (.31 ) (.48 ) 14.87   20.50   4,107   .01   .40   1.64  

121     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2030 Target Date Retirement Fund

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class A:                                                     
10/31/2021 $15.58   $.21   $3.52   $3.73   $(.23 ) $(.37 ) $(.60 ) $18.71   24.40 % $4,118   .34 % .66 % 1.19 %
10/31/2020 15.05   .23   .90   1.13   (.20 ) (.40 ) (.60 ) 15.58   7.61   3,083   .35   .69   1.53  
10/31/2019 14.15   .25   1.24   1.49   (.18 ) (.41 ) (.59 ) 15.05   11.13   2,686   .37   .73   1.75  
10/31/2018 14.42   .21   (.12 ) .09   (.15 ) (.21 ) (.36 ) 14.15   .54   2,186   .35   .72   1.45  
10/31/2017 12.70   .20   1.95   2.15   (.14 ) (.29 ) (.43 ) 14.42   17.46   1,968   .34   .72   1.47  
Class C:                                                     
10/31/2021 15.22   .08   3.43   3.51   (.12 ) (.37 ) (.49 ) 18.24   23.43   272   1.07   1.39   .46  
10/31/2020 14.73   .12   .87   .99   (.10 ) (.40 ) (.50 ) 15.22   6.80   208   1.09   1.43   .80  
10/31/2019 13.86   .14   1.22   1.36   (.08 ) (.41 ) (.49 ) 14.73   10.34   187   1.10   1.46   1.01  
10/31/2018 14.14   .10   (.11 ) (.01 ) (.06 ) (.21 ) (.27 ) 13.86   (.17 ) 148   1.10   1.47   .70  
10/31/2017 12.49   .09   1.92   2.01   (.07 ) (.29 ) (.36 ) 14.14   16.52   122   1.11   1.49   .67  
Class T:                                                     
10/31/2021 15.60   .25   3.51   3.76   (.26 ) (.37 ) (.63 ) 18.73   24.59 14 12 .14 14 .46 14 1.41 14
10/31/2020 15.07   .27   .89   1.16   (.23 ) (.40 ) (.63 ) 15.60   7.82 14 12 .14 14 .48 14 1.77 14
10/31/2019 14.17   .29   1.23   1.52   (.21 ) (.41 ) (.62 ) 15.07   11.37 14 12 .14 14 .50 14 2.02 14
10/31/2018 14.43   .25   (.12 ) .13   (.18 ) (.21 ) (.39 ) 14.17   .82 14 12 .14 14 .51 14 1.68 14
10/31/20177,15 13.18   .09   1.16   1.25         14.43   9.48 9,14 12 .14 10,14 .52 10,14 1.20 10,14
Class F-1:                                                     
10/31/2021 15.46   .20   3.49   3.69   (.23 ) (.37 ) (.60 ) 18.55   24.36   185   .37   .69   1.17  
10/31/2020 14.95   .22   .89   1.11   (.20 ) (.40 ) (.60 ) 15.46   7.53   130   .37   .71   1.49  
10/31/2019 14.06   .25   1.23   1.48   (.18 ) (.41 ) (.59 ) 14.95   11.14   98   .37   .73   1.74  
10/31/2018 14.33   .21   (.12 ) .09   (.15 ) (.21 ) (.36 ) 14.06   .57   77   .37   .74   1.42  
10/31/2017 12.65   .18   1.95   2.13   (.16 ) (.29 ) (.45 ) 14.33   17.40   57   .37   .75   1.31  
Class F-2:                                                     
10/31/2021 15.59   .25   3.52   3.77   (.27 ) (.37 ) (.64 ) 18.72   24.68   310   .09   .41   1.43  
10/31/2020 15.06   .27   .90   1.17   (.24 ) (.40 ) (.64 ) 15.59   7.88   204   .09   .43   1.77  
10/31/2019 14.17   .29   1.23   1.52   (.22 ) (.41 ) (.63 ) 15.06   11.38   154   .10   .46   2.00  
10/31/2018 14.43   .24   (.11 ) .13   (.18 ) (.21 ) (.39 ) 14.17   .84   107   .10   .47   1.64  
10/31/2017 12.71   .22   1.96   2.18   (.17 ) (.29 ) (.46 ) 14.43   17.75   42   .11   .49   1.59  
Class F-3:                                                     
10/31/2021 15.63   .27   3.52   3.79   (.28 ) (.37 ) (.65 ) 18.77   24.77   33   .01   .33   1.49  
10/31/2020 15.10   .29   .89   1.18   (.25 ) (.40 ) (.65 ) 15.63   7.94   18   .01   .35   1.91  
10/31/2019 14.19   .30   1.25   1.55   (.23 ) (.41 ) (.64 ) 15.10   11.58   15   .01   .37   2.07  
10/31/2018 14.45   .26   (.12 ) .14   (.19 ) (.21 ) (.40 ) 14.19   .91   8   .01   .38   1.78  
10/31/20177,16 12.88   .16   1.41   1.57         14.45   12.19 9 5   .01 10 .39 10 1.46 10
Class R-1:                                                     
10/31/2021 15.30   .07   3.47   3.54   (.13 ) (.37 ) (.50 ) 18.34   23.46   49   1.11   1.43   .42  
10/31/2020 14.80   .11   .87   .98   (.08 ) (.40 ) (.48 ) 15.30   6.70   31   1.14   1.48   .76  
10/31/2019 13.91   .14   1.22   1.36   (.06 ) (.41 ) (.47 ) 14.80   10.29   31   1.13   1.49   1.00  
10/31/2018 14.16   .10   (.11 ) (.01 ) (.03 ) (.21 ) (.24 ) 13.91   (.17 ) 29   1.13   1.50   .67  
10/31/2017 12.48   .09   1.92   2.01   (.04 ) (.29 ) (.33 ) 14.16   16.50   28   1.13   1.51   .71  
Class R-2:                                                     
10/31/2021 15.18   .08   3.43   3.51   (.12 ) (.37 ) (.49 ) 18.20   23.46   1,600   1.10   1.42   .45  
10/31/2020 14.69   .12   .87   .99   (.10 ) (.40 ) (.50 ) 15.18   6.77   1,365   1.11   1.45   .80  
10/31/2019 13.81   .15   1.21   1.36   (.07 ) (.41 ) (.48 ) 14.69   10.36   1,311   1.11   1.47   1.03  
10/31/2018 14.09   .10   (.12 ) (.02 ) (.05 ) (.21 ) (.26 ) 13.81   (.23 ) 1,167   1.11   1.48   .71  
10/31/2017 12.43   .09   1.91   2.00   (.05 ) (.29 ) (.34 ) 14.09   16.53   1,134   1.10   1.48   .72  
Class R-2E:                                                     
10/31/2021 15.29   .13   3.44   3.57   (.16 ) (.37 ) (.53 ) 18.33   23.78   483   .80   1.12   .73  
10/31/2020 14.80   .16   .88   1.04   (.15 ) (.40 ) (.55 ) 15.29   7.06   364   .81   1.15   1.08  
10/31/2019 13.92   .18   1.23   1.41   (.12 ) (.41 ) (.53 ) 14.80   10.71   325   .81   1.17   1.28  
10/31/2018 14.22   .14   (.11 ) .03   (.12 ) (.21 ) (.33 ) 13.92   .11   240   .81   1.18   .95  
10/31/2017 12.58   .11   1.94   2.05   (.12 ) (.29 ) (.41 ) 14.22   16.84   149   .80   1.18   .83  
Class R-3:                                                     
10/31/2021 15.39   .15   3.47   3.62   (.18 ) (.37 ) (.55 ) 18.46   23.96   2,722   .66   .98   .89  
10/31/2020 14.88   .18   .89   1.07   (.16 ) (.40 ) (.56 ) 15.39   7.26   2,229   .66   1.00   1.24  
10/31/2019 13.99   .21   1.22   1.43   (.13 ) (.41 ) (.54 ) 14.88   10.82   2,087   .66   1.02   1.47  
10/31/2018 14.26   .17   (.12 ) .05   (.11 ) (.21 ) (.32 ) 13.99   .26   1,823   .66   1.03   1.14  
10/31/2017 12.57   .15   1.93   2.08   (.10 ) (.29 ) (.39 ) 14.26   17.06   1,720   .65   1.03   1.15  
Class R-4:                                                     
10/31/2021 15.54   .20   3.52   3.72   (.22 ) (.37 ) (.59 ) 18.67   24.40   2,924   .36   .68   1.16  
10/31/2020 15.02   .23   .89   1.12   (.20 ) (.40 ) (.60 ) 15.54   7.56   2,680   .36   .70   1.54  
10/31/2019 14.12   .25   1.24   1.49   (.18 ) (.41 ) (.59 ) 15.02   11.14   2,550   .36   .72   1.76  
10/31/2018 14.39   .21   (.12 ) .09   (.15 ) (.21 ) (.36 ) 14.12   .54   2,106   .36   .73   1.45  
10/31/2017 12.68   .19   1.95   2.14   (.14 ) (.29 ) (.43 ) 14.39   17.43   2,030   .35   .73   1.41  

American Funds Target Date Retirement Series / Prospectus     122


 
 

 

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class R-5E:                                                     
10/31/2021 $15.55   $.24   $3.51   $3.75   $(.26 ) $(.37 ) $(.63 ) $18.67   24.61 % $1,241   .15 % .47 % 1.38 %
10/31/2020 15.02   .28   .88   1.16   (.23 ) (.40 ) (.63 ) 15.55   7.81   1,083   .16   .50   1.86  
10/31/2019 14.13   .27   1.24   1.51   (.21 ) (.41 ) (.62 ) 15.02   11.34   1,169   .16   .52   1.88  
10/31/2018 14.39   .22   (.09 ) .13   (.18 ) (.21 ) (.39 ) 14.13   .82   692   .15   .52   1.48  
10/31/2017 12.68   .20   1.97   2.17   (.17 ) (.29 ) (.46 ) 14.39   17.67   191   .14   .52   1.51  
Class R-5:                                                     
10/31/2021 15.74   .27   3.54   3.81   (.27 ) (.37 ) (.64 ) 18.91   24.73   754   .06   .38   1.49  
10/31/2020 15.20   .29   .89   1.18   (.24 ) (.40 ) (.64 ) 15.74   7.90   627   .06   .40   1.89  
10/31/2019 14.28   .31   1.24   1.55   (.22 ) (.41 ) (.63 ) 15.20   11.51   668   .06   .42   2.12  
10/31/2018 14.54   .26   (.13 ) .13   (.18 ) (.21 ) (.39 ) 14.28   .84   720   .06   .43   1.75  
10/31/2017 12.80   .23   1.97   2.20   (.17 ) (.29 ) (.46 ) 14.54   17.81   1,097   .06   .44   1.67  
Class R-6:                                                     
10/31/2021 15.68   .27   3.53   3.80   (.28 ) (.37 ) (.65 ) 18.83   24.76   25,045   .01   .33   1.51  
10/31/2020 15.14   .28   .91   1.19   (.25 ) (.40 ) (.65 ) 15.68   7.99   17,000   .01   .35   1.85  
10/31/2019 14.23   .30   1.25   1.55   (.23 ) (.41 ) (.64 ) 15.14   11.54   13,616   .01   .37   2.07  
10/31/2018 14.49   .26   (.12 ) .14   (.19 ) (.21 ) (.40 ) 14.23   .91   9,046   .01   .38   1.77  
10/31/2017 12.76   .23   1.97   2.20   (.18 ) (.29 ) (.47 ) 14.49   17.83   5,747   .01   .39   1.73  

123     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2025 Target Date Retirement Fund

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class A:                                                     
10/31/2021 $14.51   $.22   $2.68   $2.90   $(.26 ) $(.29 ) $(.55 ) $16.86   20.37 % $4,067   .34 % .64 % 1.35 %
10/31/2020 14.03   .23   .77   1.00   (.21 ) (.31 ) (.52 ) 14.51   7.23   3,172   .35   .67   1.64  
10/31/2019 13.20   .25   1.08   1.33   (.18 ) (.32 ) (.50 ) 14.03   10.62   2,784   .37   .71   1.88  
10/31/2018 13.48   .21   (.17 ) .04   (.15 ) (.17 ) (.32 ) 13.20   .25   2,315   .34   .69   1.56  
10/31/2017 12.17   .20   1.48   1.68   (.14 ) (.23 ) (.37 ) 13.48   14.21   2,127   .34   .70   1.54  
Class C:                                                     
10/31/2021 14.18   .10   2.62   2.72   (.16 ) (.29 ) (.45 ) 16.45   19.47   262   1.08   1.38   .62  
10/31/2020 13.73   .12   .76   .88   (.12 ) (.31 ) (.43 ) 14.18   6.46   211   1.09   1.41   .90  
10/31/2019 12.93   .15   1.06   1.21   (.09 ) (.32 ) (.41 ) 13.73   9.78   191   1.10   1.44   1.14  
10/31/2018 13.22   .11   (.17 ) (.06 ) (.06 ) (.17 ) (.23 ) 12.93   (.49 ) 157   1.10   1.45   .80  
10/31/2017 11.97   .09   1.47   1.56   (.08 ) (.23 ) (.31 ) 13.22   13.31   138   1.11   1.47   .75  
Class T:                                                     
10/31/2021 14.53   .25   2.69   2.94   (.29 ) (.29 ) (.58 ) 16.89   20.64 14 12 .14 14 .44 14 1.57 14
10/31/2020 14.05   .26   .77   1.03   (.24 ) (.31 ) (.55 ) 14.53   7.44 14 12 .14 14 .46 14 1.87 14
10/31/2019 13.22   .29   1.07   1.36   (.21 ) (.32 ) (.53 ) 14.05   10.84 14 12 .14 14 .48 14 2.14 14
10/31/2018 13.50   .24   (.17 ) .07   (.18 ) (.17 ) (.35 ) 13.22   .46 14 12 .14 14 .49 14 1.78 14
10/31/20177,15 12.51   .10   .89   .99         13.50   7.91 9,14 12 .14 10,14 .50 10,14 1.34 10,14
Class F-1:                                                     
10/31/2021 14.41   .21   2.66   2.87   (.26 ) (.29 ) (.55 ) 16.73   20.35   118   .37   .67   1.34  
10/31/2020 13.93   .22   .78   1.00   (.21 ) (.31 ) (.52 ) 14.41   7.27   95   .37   .69   1.58  
10/31/2019 13.12   .25   1.06   1.31   (.18 ) (.32 ) (.50 ) 13.93   10.52   64   .38   .72   1.87  
10/31/2018 13.40   .21   (.17 ) .04   (.15 ) (.17 ) (.32 ) 13.12   .26   55   .37   .72   1.53  
10/31/2017 12.12   .18   1.49   1.67   (.16 ) (.23 ) (.39 ) 13.40   14.20   42   .37   .73   1.43  
Class F-2:                                                     
10/31/2021 14.52   .26   2.67   2.93   (.29 ) (.29 ) (.58 ) 16.87   20.65   268   .09   .39   1.60  
10/31/2020 14.03   .27   .77   1.04   (.24 ) (.31 ) (.55 ) 14.52   7.59   201   .09   .41   1.89  
10/31/2019 13.21   .29   1.07   1.36   (.22 ) (.32 ) (.54 ) 14.03   10.85   164   .10   .44   2.13  
10/31/2018 13.48   .24   (.16 ) .08   (.18 ) (.17 ) (.35 ) 13.21   .56   114   .11   .46   1.76  
10/31/2017 12.18   .22   1.49   1.71   (.18 ) (.23 ) (.41 ) 13.48   14.42   53   .11   .47   1.72  
Class F-3:                                                     
10/31/2021 14.56   .26   2.70   2.96   (.31 ) (.29 ) (.60 ) 16.92   20.75   35   .01   .31   1.63  
10/31/2020 14.07   .28   .78   1.06   (.26 ) (.31 ) (.57 ) 14.56   7.64   17   .01   .33   1.96  
10/31/2019 13.24   .31   1.07   1.38   (.23 ) (.32 ) (.55 ) 14.07   10.98   12   .01   .35   2.28  
10/31/2018 13.51   .25   (.16 ) .09   (.19 ) (.17 ) (.36 ) 13.24   .63   11   .01   .36   1.86  
10/31/20177,16 12.26   .15   1.10   1.25         13.51   10.20 9 10   .01 10 .37 10 1.50 10
Class R-1:                                                     
10/31/2021 14.21   .10   2.63   2.73   (.16 ) (.29 ) (.45 ) 16.49   19.50   35   1.10   1.40   .60  
10/31/2020 13.75   .12   .75   .87   (.10 ) (.31 ) (.41 ) 14.21   6.41   27   1.12   1.44   .89  
10/31/2019 12.94   .15   1.06   1.21   (.08 ) (.32 ) (.40 ) 13.75   9.78   29   1.13   1.47   1.12  
10/31/2018 13.22   .10   (.16 ) (.06 ) (.05 ) (.17 ) (.22 ) 12.94   (.49 ) 25   1.13   1.48   .76  
10/31/2017 11.95   .10   1.45   1.55   (.05 ) (.23 ) (.28 ) 13.22   13.26   24   1.13   1.49   .77  
Class R-2:                                                     
10/31/2021 14.14   .10   2.61   2.71   (.15 ) (.29 ) (.44 ) 16.41   19.48   1,364   1.10   1.40   .61  
10/31/2020 13.69   .12   .75   .87   (.11 ) (.31 ) (.42 ) 14.14   6.42   1,206   1.11   1.43   .90  
10/31/2019 12.88   .15   1.06   1.21   (.08 ) (.32 ) (.40 ) 13.69   9.81   1,188   1.11   1.45   1.17  
10/31/2018 13.17   .11   (.17 ) (.06 ) (.06 ) (.17 ) (.23 ) 12.88   (.53 ) 1,096   1.11   1.46   .82  
10/31/2017 11.91   .10   1.45   1.55   (.06 ) (.23 ) (.29 ) 13.17   13.30   1,116   1.10   1.46   .79  
Class R-2E:                                                     
10/31/2021 14.23   .14   2.63   2.77   (.19 ) (.29 ) (.48 ) 16.52   19.82   470   .81   1.11   .90  
10/31/2020 13.78   .16   .75   .91   (.15 ) (.31 ) (.46 ) 14.23   6.71   407   .81   1.13   1.19  
10/31/2019 12.98   .19   1.06   1.25   (.13 ) (.32 ) (.45 ) 13.78   10.11   387   .81   1.15   1.43  
10/31/2018 13.29   .14   (.15 ) (.01 ) (.13 ) (.17 ) (.30 ) 12.98   (.14 ) 300   .81   1.16   1.07  
10/31/2017 12.05   .12   1.49   1.61   (.14 ) (.23 ) (.37 ) 13.29   13.68   203   .80   1.16   .94  
Class R-3:                                                     
10/31/2021 14.33   .17   2.64   2.81   (.21 ) (.29 ) (.50 ) 16.64   20.00   2,285   .66   .96   1.05  
10/31/2020 13.87   .19   .75   .94   (.17 ) (.31 ) (.48 ) 14.33   6.87   2,000   .66   .98   1.34  
10/31/2019 13.05   .21   1.07   1.28   (.14 ) (.32 ) (.46 ) 13.87   10.29   1,897   .66   1.00   1.60  
10/31/2018 13.33   .17   (.17 ) 11 (.11 ) (.17 ) (.28 ) 13.05   (.04 ) 1,692   .66   1.01   1.24  
10/31/2017 12.05   .15   1.47   1.62   (.11 ) (.23 ) (.34 ) 13.33   13.80   1,623   .65   1.01   1.22  
Class R-4:                                                     
10/31/2021 14.48   .21   2.68   2.89   (.25 ) (.29 ) (.54 ) 16.83   20.35   2,399   .36   .66   1.33  
10/31/2020 14.00   .23   .77   1.00   (.21 ) (.31 ) (.52 ) 14.48   7.25   2,437   .36   .68   1.65  
10/31/2019 13.17   .25   1.08   1.33   (.18 ) (.32 ) (.50 ) 14.00   10.62   2,390   .36   .70   1.89  
10/31/2018 13.45   .21   (.17 ) .04   (.15 ) (.17 ) (.32 ) 13.17   .26   1,968   .36   .71   1.55  
10/31/2017 12.15   .19   1.49   1.68   (.15 ) (.23 ) (.38 ) 13.45   14.19   1,847   .35   .71   1.48  

American Funds Target Date Retirement Series / Prospectus     124


 
 

 

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class R-5E:                                                     
10/31/2021 $14.48   $.25   $2.68   $2.93   $(.29 ) $(.29 ) $(.58 ) $16.83   20.64 % $1,093   .15 % .45 % 1.53 %
10/31/2020 14.00   .28   .74   1.02   (.23 ) (.31 ) (.54 ) 14.48   7.42   970   .16   .48   1.98  
10/31/2019 13.18   .27   1.08   1.35   (.21 ) (.32 ) (.53 ) 14.00   10.82   1,132   .16   .50   2.02  
10/31/2018 13.46   .21   (.14 ) .07   (.18 ) (.17 ) (.35 ) 13.18   .46   705   .15   .50   1.57  
10/31/2017 12.16   .21   1.49   1.70   (.17 ) (.23 ) (.40 ) 13.46   14.41   169   .14   .50   1.65  
Class R-5:                                                     
10/31/2021 14.65   .27   2.70   2.97   (.30 ) (.29 ) (.59 ) 17.03   20.70   651   .06   .36   1.66  
10/31/2020 14.16   .28   .77   1.05   (.25 ) (.31 ) (.56 ) 14.65   7.53   575   .06   .38   1.98  
10/31/2019 13.31   .30   1.09   1.39   (.22 ) (.32 ) (.54 ) 14.16   11.02   637   .06   .40   2.24  
10/31/2018 13.59   .25   (.18 ) .07   (.18 ) (.17 ) (.35 ) 13.31   .49   656   .06   .41   1.85  
10/31/2017 12.27   .23   1.50   1.73   (.18 ) (.23 ) (.41 ) 13.59   14.51   1,054   .06   .42   1.76  
Class R-6:                                                     
10/31/2021 14.61   .27   2.71   2.98   (.31 ) (.29 ) (.60 ) 16.99   20.81   20,701   .01   .31   1.68  
10/31/2020 14.12   .28   .78   1.06   (.26 ) (.31 ) (.57 ) 14.61   7.62   14,909   .01   .33   1.95  
10/31/2019 13.28   .30   1.09   1.39   (.23 ) (.32 ) (.55 ) 14.12   11.03   11,967   .01   .35   2.21  
10/31/2018 13.56   .26   (.18 ) .08   (.19 ) (.17 ) (.36 ) 13.28   .55   8,004   .01   .36   1.88  
10/31/2017 12.24   .23   1.50   1.73   (.18 ) (.23 ) (.41 ) 13.56   14.58   4,715   .01   .37   1.82  

125     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2020 Target Date Retirement Fund

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class A:                                                     
10/31/2021 $13.22   $.24   $2.04   $2.28   $(.31 ) $(.27 ) $(.58 ) $14.92   17.65 % $2,707   .35 % .64 % 1.70 %
10/31/2020 13.04   .27   .42   .69   (.24 ) (.27 ) (.51 ) 13.22   5.41   2,362   .35   .65   2.10  
10/31/2019 12.37   .29   .87   1.16   (.21 ) (.28 ) (.49 ) 13.04   9.82   2,218   .36   .67   2.34  
10/31/2018 12.66   .24   (.21 ) .03   (.17 ) (.15 ) (.32 ) 12.37   .17   1,985   .35   .68   1.89  
10/31/2017 11.66   .21   1.13   1.34   (.15 ) (.19 ) (.34 ) 12.66   11.82   1,977   .36   .70   1.74  
Class C:                                                     
10/31/2021 12.94   .14   1.99   2.13   (.22 ) (.27 ) (.49 ) 14.58   16.74   170   1.08   1.37   .97  
10/31/2020 12.78   .17   .41   .58   (.15 ) (.27 ) (.42 ) 12.94   4.62   147   1.09   1.39   1.37  
10/31/2019 12.13   .20   .85   1.05   (.12 ) (.28 ) (.40 ) 12.78   9.01   146   1.10   1.41   1.59  
10/31/2018 12.43   .14   (.20 ) (.06 ) (.09 ) (.15 ) (.24 ) 12.13   (.58 ) 126   1.10   1.43   1.14  
10/31/2017 11.48   .11   1.12   1.23   (.09 ) (.19 ) (.28 ) 12.43   10.94   118   1.11   1.45   .96  
Class T:                                                     
10/31/2021 13.24   .28   2.03   2.31   (.34 ) (.27 ) (.61 ) 14.94   17.86 14 12 .13 14 .42 14 1.93 14
10/31/2020 13.06   .30   .42   .72   (.27 ) (.27 ) (.54 ) 13.24   5.61 14 12 .14 14 .44 14 2.33 14
10/31/2019 12.38   .32   .88   1.20   (.24 ) (.28 ) (.52 ) 13.06   10.13 14 12 .15 14 .46 14 2.58 14
10/31/2018 12.67   .27   (.21 ) .06   (.20 ) (.15 ) (.35 ) 12.38   .40 14 12 .14 14 .47 14 2.10 14
10/31/20177,15 11.89   .11   .67   .78         12.67   6.56 9,14 12 .14 10,14 .48 10,14 1.61 10,14
Class F-1:                                                     
10/31/2021 13.14   .24   2.01   2.25   (.31 ) (.27 ) (.58 ) 14.81   17.52   61   .37   .66   1.70  
10/31/2020 12.97   .27   .41   .68   (.24 ) (.27 ) (.51 ) 13.14   5.35   57   .37   .67   2.08  
10/31/2019 12.29   .29   .88   1.17   (.21 ) (.28 ) (.49 ) 12.97   9.96   49   .38   .69   2.34  
10/31/2018 12.59   .23   (.21 ) .02   (.17 ) (.15 ) (.32 ) 12.29   .11   45   .37   .70   1.87  
10/31/2017 11.62   .20   1.13   1.33   (.17 ) (.19 ) (.36 ) 12.59   11.73   37   .37   .71   1.66  
Class F-2:                                                     
10/31/2021 13.22   .28   2.04   2.32   (.35 ) (.27 ) (.62 ) 14.92   17.94   176   .09   .38   1.94  
10/31/2020 13.04   .31   .42   .73   (.28 ) (.27 ) (.55 ) 13.22   5.68   134   .09   .39   2.36  
10/31/2019 12.37   .32   .87   1.19   (.24 ) (.28 ) (.52 ) 13.04   10.14   119   .10   .41   2.59  
10/31/2018 12.66   .26   (.20 ) .06   (.20 ) (.15 ) (.35 ) 12.37   .42   93   .11   .44   2.10  
10/31/2017 11.67   .23   1.14   1.37   (.19 ) (.19 ) (.38 ) 12.66   12.04   46   .11   .45   1.93  
Class F-3:                                                     
10/31/2021 13.26   .29   2.04   2.33   (.36 ) (.27 ) (.63 ) 14.96   17.98   18   .01   .30   2.00  
10/31/2020 13.08   .32   .42   .74   (.29 ) (.27 ) (.56 ) 13.26   5.74   11   .01   .31   2.43  
10/31/2019 12.40   .34   .87   1.21   (.25 ) (.28 ) (.53 ) 13.08   10.27   8   .01   .32   2.72  
10/31/2018 12.69   .28   (.21 ) .07   (.21 ) (.15 ) (.36 ) 12.40   .49   6   .01   .34   2.19  
10/31/20177,16 11.68   .16   .85   1.01         12.69   8.65 9 1   .01 10 .35 10 1.72 10
Class R-1:                                                     
10/31/2021 12.99   .14   2.00   2.14   (.20 ) (.27 ) (.47 ) 14.66   16.74   15   1.11   1.40   .96  
10/31/2020 12.83   .17   .40   .57   (.14 ) (.27 ) (.41 ) 12.99   4.51   15   1.13   1.43   1.34  
10/31/2019 12.15   .19   .88   1.07   (.11 ) (.28 ) (.39 ) 12.83   9.13   18   1.13   1.44   1.57  
10/31/2018 12.43   .14   (.21 ) (.07 ) (.06 ) (.15 ) (.21 ) 12.15   (.62 ) 17   1.13   1.46   1.11  
10/31/2017 11.46   .12   1.10   1.22   (.06 ) (.19 ) (.25 ) 12.43   10.87   18   1.13   1.47   .99  
Class R-2:                                                     
10/31/2021 12.94   .14   1.98   2.12   (.21 ) (.27 ) (.48 ) 14.58   16.68   678   1.10   1.39   .97  
10/31/2020 12.77   .17   .41   .58   (.14 ) (.27 ) (.41 ) 12.94   4.63   680   1.11   1.41   1.37  
10/31/2019 12.11   .20   .85   1.05   (.11 ) (.28 ) (.39 ) 12.77   9.02   731   1.11   1.42   1.62  
10/31/2018 12.40   .14   (.20 ) (.06 ) (.08 ) (.15 ) (.23 ) 12.11   (.57 ) 728   1.11   1.44   1.14  
10/31/2017 11.43   .12   1.11   1.23   (.07 ) (.19 ) (.26 ) 12.40   10.97   784   1.09   1.43   1.01  
Class R-2E:                                                     
10/31/2021 12.97   .18   1.99   2.17   (.25 ) (.27 ) (.52 ) 14.62   17.05   227   .81   1.10   1.26  
10/31/2020 12.81   .21   .41   .62   (.19 ) (.27 ) (.46 ) 12.97   4.93   222   .81   1.11   1.65  
10/31/2019 12.16   .23   .86   1.09   (.16 ) (.28 ) (.44 ) 12.81   9.38   230   .81   1.12   1.87  
10/31/2018 12.48   .17   (.20 ) (.03 ) (.14 ) (.15 ) (.29 ) 12.16   (.30 ) 173   .81   1.14   1.40  
10/31/2017 11.55   .14   1.12   1.26   (.14 ) (.19 ) (.33 ) 12.48   11.22   122   .80   1.14   1.17  
Class R-3:                                                     
10/31/2021 13.08   .20   2.02   2.22   (.27 ) (.27 ) (.54 ) 14.76   17.30   1,236   .66   .95   1.41  
10/31/2020 12.92   .23   .40   .63   (.20 ) (.27 ) (.47 ) 13.08   4.97   1,248   .66   .96   1.81  
10/31/2019 12.24   .25   .88   1.13   (.17 ) (.28 ) (.45 ) 12.92   9.61   1,342   .66   .97   2.05  
10/31/2018 12.53   .20   (.21 ) (.01 ) (.13 ) (.15 ) (.28 ) 12.24   (.13 ) 1,284   .66   .99   1.58  
10/31/2017 11.55   .17   1.12   1.29   (.12 ) (.19 ) (.31 ) 12.53   11.45   1,358   .65   .99   1.44  
Class R-4:                                                     
10/31/2021 13.20   .24   2.03   2.27   (.30 ) (.27 ) (.57 ) 14.90   17.61   1,420   .36   .65   1.69  
10/31/2020 13.02   .27   .42   .69   (.24 ) (.27 ) (.51 ) 13.20   5.40   1,554   .36   .66   2.12  
10/31/2019 12.34   .29   .88   1.17   (.21 ) (.28 ) (.49 ) 13.02   9.88   1,692   .36   .67   2.36  
10/31/2018 12.63   .24   (.21 ) .03   (.17 ) (.15 ) (.32 ) 12.34   .19   1,633   .36   .69   1.88  
10/31/2017 11.65   .21   1.12   1.33   (.16 ) (.19 ) (.35 ) 12.63   11.69   1,703   .35   .69   1.71  

American Funds Target Date Retirement Series / Prospectus     126


 
 

 

                                                     
    Income (loss) from
investment operations1
Dividends and distributions            
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2 Net assets,
end of period
(in millions)
Ratio of
expenses to
average
net assets
Net
effective
expense
ratio5,6
Ratio of
net income
to average
net assets
Class R-5E:                                                     
10/31/2021 $13.19   $.27   $2.03   $2.30   $(.34 ) $(.27 ) $(.61 ) $14.88   17.84 % $635   .15 % .44 % 1.90 %
10/31/2020 13.01   .32   .39   .71   (.26 ) (.27 ) (.53 ) 13.19   5.57   659   .15   .45   2.46  
10/31/2019 12.34   .31   .88   1.19   (.24 ) (.28 ) (.52 ) 13.01   10.10   886   .16   .47   2.46  
10/31/2018 12.63   .24   (.18 ) .06   (.20 ) (.15 ) (.35 ) 12.34   .39   590   .15   .48   1.91  
10/31/2017 11.64   .23   1.13   1.36   (.18 ) (.19 ) (.37 ) 12.63   12.03   169   .14   .48   1.88  
Class R-5:                                                     
10/31/2021 13.34   .29   2.05   2.34   (.35 ) (.27 ) (.62 ) 15.06   17.96   347   .06   .35   2.02  
10/31/2020 13.16   .32   .41   .73   (.28 ) (.27 ) (.55 ) 13.34   5.65   350   .06   .36   2.44  
10/31/2019 12.47   .34   .88   1.22   (.25 ) (.28 ) (.53 ) 13.16   10.24   428   .06   .37   2.69  
10/31/2018 12.76   .28   (.22 ) .06   (.20 ) (.15 ) (.35 ) 12.47   .43   505   .06   .39   2.19  
10/31/2017 11.75   .24   1.15   1.39   (.19 ) (.19 ) (.38 ) 12.76   12.15   808   .06   .40   1.99  
Class R-6:                                                     
10/31/2021 13.30   .29   2.05   2.34   (.36 ) (.27 ) (.63 ) 15.01   18.00   11,579   .01   .30   2.03  
10/31/2020 13.12   .32   .42   .74   (.29 ) (.27 ) (.56 ) 13.30   5.73   9,367   .01   .31   2.43  
10/31/2019 12.44   .34   .87   1.21   (.25 ) (.28 ) (.53 ) 13.12   10.24   8,414   .01   .32   2.66  
10/31/2018 12.72   .28   (.20 ) .08   (.21 ) (.15 ) (.36 ) 12.44   .57   6,238   .01   .34   2.21  
10/31/2017 11.72   .25   1.13   1.38   (.19 ) (.19 ) (.38 ) 12.72   12.14   4,408   .01   .35   2.04  

127     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2015 Target Date Retirement Fund

                                                         
    Income (loss) from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class A:                                                         
10/31/2021 $12.02   $.23   $1.76   $1.99   $(.31 ) $(.20 ) $(.51 ) $13.50   16.91 % $1,046   .35 % .35 % .63 % 1.80 %
10/31/2020 11.98   .27   .25   .52   (.24 ) (.24 ) (.48 ) 12.02   4.40   968   .34   .34   .63   2.28  
10/31/2019 11.38   .29   .77   1.06   (.22 ) (.24 ) (.46 ) 11.98   9.80   978   .36   .36   .67   2.54  
10/31/2018 11.71   .25   (.26 ) (.01 ) (.19 ) (.13 ) (.32 ) 11.38   (.19 ) 935   .34   .34   .66   2.16  
10/31/2017 10.95   .23   .85   1.08   (.18 ) (.14 ) (.32 ) 11.71   10.17   1,021   .37   .37   .69   2.01  
Class C:                                                         
10/31/2021 11.79   .14   1.72   1.86   (.21 ) (.20 ) (.41 ) 13.24   16.09   46   1.08   1.08   1.36   1.07  
10/31/2020 11.76   .18   .25   .43   (.16 ) (.24 ) (.40 ) 11.79   3.63   43   1.10   1.10   1.39   1.53  
10/31/2019 11.18   .20   .75   .95   (.13 ) (.24 ) (.37 ) 11.76   8.91   47   1.11   1.11   1.42   1.80  
10/31/2018 11.51   .16   (.25 ) (.09 ) (.11 ) (.13 ) (.24 ) 11.18   (.90 ) 45   1.11   1.11   1.43   1.38  
10/31/2017 10.79   .14   .83   .97   (.11 ) (.14 ) (.25 ) 11.51   9.25   45   1.12   1.12   1.44   1.25  
Class T:                                                         
10/31/2021 12.03   .26   1.75   2.01   (.33 ) (.20 ) (.53 ) 13.51   17.14 14 12 .13 14 .13 14 .41 14 2.02 14
10/31/2020 11.99   .29   .26   .55   (.27 ) (.24 ) (.51 ) 12.03   4.62 14 12 .14 14 .14 14 .43 14 2.48 14
10/31/2019 11.39   .32   .77   1.09   (.25 ) (.24 ) (.49 ) 11.99   10.04 14 12 .15 14 .15 14 .46 14 2.77 14
10/31/2018 11.73   .27   (.26 ) .01   (.22 ) (.13 ) (.35 ) 11.39   (.03 )14 12 .15 14 .15 14 .47 14 2.35 14
10/31/20177,15 11.10   .12   .51   .63         11.73   5.68 9,14 12 .14 10,14 .14 10,14 .46 10,14 1.90 10,14
Class F-1:                                                         
10/31/2021 11.94   .23   1.74   1.97   (.31 ) (.20 ) (.51 ) 13.40   16.83   15   .37   .37   .65   1.79  
10/31/2020 11.91   .26   .25   .51   (.24 ) (.24 ) (.48 ) 11.94   4.33   16   .37   .37   .66   2.24  
10/31/2019 11.32   .29   .76   1.05   (.22 ) (.24 ) (.46 ) 11.91   9.74   14   .38   .38   .69   2.52  
10/31/2018 11.65   .25   (.26 ) (.01 ) (.19 ) (.13 ) (.32 ) 11.32   (.19 ) 13   .37   .37   .69   2.13  
10/31/2017 10.91   .22   .85   1.07   (.19 ) (.14 ) (.33 ) 11.65   10.17   14   .37   .37   .69   1.96  
Class F-2:                                                         
10/31/2021 12.02   .27   1.75   2.02   (.34 ) (.20 ) (.54 ) 13.50   17.21   57   .09   .09   .37   2.04  
10/31/2020 11.98   .30   .25   .55   (.27 ) (.24 ) (.51 ) 12.02   4.68   48   .10   .10   .39   2.51  
10/31/2019 11.39   .32   .76   1.08   (.25 ) (.24 ) (.49 ) 11.98   10.04   44   .10   .10   .41   2.81  
10/31/2018 11.72   .27   (.25 ) .02   (.22 ) (.13 ) (.35 ) 11.39   .06   38   .11   .11   .43   2.33  
10/31/2017 10.96   .25   .86   1.11   (.21 ) (.14 ) (.35 ) 11.72   10.45   19   .12   .12   .44   2.21  
Class F-3:                                                         
10/31/2021 12.05   .27   1.77   2.04   (.35 ) (.20 ) (.55 ) 13.54   17.34   8   .01   .01   .29   2.02  
10/31/2020 12.01   .32   .24   .56   (.28 ) (.24 ) (.52 ) 12.05   4.75   3   .01   .01   .30   2.71  
10/31/2019 11.42   .34   .75   1.09   (.26 ) (.24 ) (.50 ) 12.01   10.08   4   .01   .01   .32   2.91  
10/31/2018 11.74   .28   (.24 ) .04   (.23 ) (.13 ) (.36 ) 11.42   .22   4   .01   .01   .33   2.45  
10/31/20177,16 10.92   .20   .62   .82         11.74   7.51 9 12 .05 10 .04 10 .36 10 2.32 10
Class R-1:                                                         
10/31/2021 11.77   .14   1.72   1.86   (.21 ) (.20 ) (.41 ) 13.22   16.03   7   1.11   1.11   1.39   1.07  
10/31/2020 11.75   .18   .23   .41   (.15 ) (.24 ) (.39 ) 11.77   3.51   8   1.14   1.14   1.43   1.51  
10/31/2019 11.15   .20   .76   .96   (.12 ) (.24 ) (.36 ) 11.75   8.95   9   1.13   1.13   1.44   1.76  
10/31/2018 11.47   .15   (.25 ) (.10 ) (.09 ) (.13 ) (.22 ) 11.15   (.94 ) 10   1.14   1.14   1.46   1.35  
10/31/2017 10.73   .14   .83   .97   (.09 ) (.14 ) (.23 ) 11.47   9.31   11   1.14   1.14   1.46   1.25  
Class R-2:                                                         
10/31/2021 11.78   .14   1.71   1.85   (.21 ) (.20 ) (.41 ) 13.22   16.00   223   1.10   1.10   1.38   1.06  
10/31/2020 11.75   .18   .24   .42   (.15 ) (.24 ) (.39 ) 11.78   3.58   222   1.12   1.12   1.41   1.53  
10/31/2019 11.16   .20   .76   .96   (.13 ) (.24 ) (.37 ) 11.75   8.93   255   1.11   1.11   1.42   1.81  
10/31/2018 11.49   .16   (.26 ) (.10 ) (.10 ) (.13 ) (.23 ) 11.16   (.96 ) 274   1.11   1.11   1.43   1.39  
10/31/2017 10.74   .14   .85   .99   (.10 ) (.14 ) (.24 ) 11.49   9.40   311   1.09   1.09   1.41   1.29  
Class R-2E:                                                         
10/31/2021 11.79   .17   1.72   1.89   (.25 ) (.20 ) (.45 ) 13.23   16.32   81   .81   .81   1.09   1.35  
10/31/2020 11.76   .21   .25   .46   (.19 ) (.24 ) (.43 ) 11.79   3.91   80   .82   .82   1.11   1.81  
10/31/2019 11.18   .23   .76   .99   (.17 ) (.24 ) (.41 ) 11.76   9.28   87   .81   .81   1.12   2.07  
10/31/2018 11.54   .19   (.26 ) (.07 ) (.16 ) (.13 ) (.29 ) 11.18   (.67 ) 84   .81   .81   1.13   1.63  
10/31/2017 10.84   .16   .85   1.01   (.17 ) (.14 ) (.31 ) 11.54   9.62   62   .80   .80   1.12   1.47  
Class R-3:                                                         
10/31/2021 11.90   .19   1.75   1.94   (.27 ) (.20 ) (.47 ) 13.37   16.63   415   .66   .66   .94   1.51  
10/31/2020 11.87   .23   .24   .47   (.20 ) (.24 ) (.44 ) 11.90   4.01   426   .66   .66   .95   1.96  
10/31/2019 11.28   .26   .75   1.01   (.18 ) (.24 ) (.42 ) 11.87   9.39   457   .66   .66   .97   2.25  
10/31/2018 11.60   .21   (.25 ) (.04 ) (.15 ) (.13 ) (.28 ) 11.28   (.41 ) 483   .66   .66   .98   1.83  
10/31/2017 10.86   .19   .84   1.03   (.15 ) (.14 ) (.29 ) 11.60   9.73   546   .65   .65   .97   1.71  
Class R-4:                                                         
10/31/2021 12.00   .23   1.75   1.98   (.30 ) (.20 ) (.50 ) 13.48   16.86   348   .36   .36   .64   1.77  
10/31/2020 11.96   .27   .25   .52   (.24 ) (.24 ) (.48 ) 12.00   4.39   398   .36   .36   .65   2.27  
10/31/2019 11.36   .29   .77   1.06   (.22 ) (.24 ) (.46 ) 11.96   9.77   442   .36   .36   .67   2.55  
10/31/2018 11.69   .25   (.26 ) (.01 ) (.19 ) (.13 ) (.32 ) 11.36   (.17 ) 453   .36   .36   .68   2.14  
10/31/2017 10.94   .22   .85   1.07   (.18 ) (.14 ) (.32 ) 11.69   10.10   534   .35   .35   .67   1.99  

American Funds Target Date Retirement Series / Prospectus     128


 
 

 

                                                         
    Income (loss) from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class R-5E:                                                         
10/31/2021 $11.98   $.26   $1.74   $2.00   $(.33 ) $(.20 ) $(.53 ) $13.45   17.12 % $181   .15 % .15 % .43 % 2.00 %
10/31/2020 11.94   .31   .23   .54   (.26 ) (.24 ) (.50 ) 11.98   4.55   192   .16   .16   .45   2.64  
10/31/2019 11.35   .31   .77   1.08   (.25 ) (.24 ) (.49 ) 11.94   9.99   251   .16   .16   .47   2.69  
10/31/2018 11.68   .25   (.23 ) .02   (.22 ) (.13 ) (.35 ) 11.35   .05   200   .15   .15   .47   2.14  
10/31/2017 10.93   .24   .86   1.10   (.21 ) (.14 ) (.35 ) 11.68   10.37   52   .15   .15   .47   2.15  
Class R-5:                                                         
10/31/2021 12.11   .28   1.76   2.04   (.34 ) (.20 ) (.54 ) 13.61   17.27   90   .06   .06   .34   2.11  
10/31/2020 12.07   .31   .25   .56   (.28 ) (.24 ) (.52 ) 12.11   4.66   93   .06   .06   .35   2.58  
10/31/2019 11.47   .33   .76   1.09   (.25 ) (.24 ) (.49 ) 12.07   10.06   119   .06   .06   .37   2.88  
10/31/2018 11.80   .29   (.27 ) .02   (.22 ) (.13 ) (.35 ) 11.47   .09   140   .07   .07   .39   2.44  
10/31/2017 11.03   .26   .86   1.12   (.21 ) (.14 ) (.35 ) 11.80   10.51   259   .06   .06   .38   2.28  
Class R-6:                                                         
10/31/2021 12.07   .28   1.76   2.04   (.35 ) (.20 ) (.55 ) 13.56   17.31   3,480   .01   .01   .29   2.11  
10/31/2020 12.03   .31   .25   .56   (.28 ) (.24 ) (.52 ) 12.07   4.74   2,801   .01   .01   .30   2.59  
10/31/2019 11.43   .33   .77   1.10   (.26 ) (.24 ) (.50 ) 12.03   10.16   2,564   .01   .01   .32   2.86  
10/31/2018 11.76   .29   (.26 ) .03   (.23 ) (.13 ) (.36 ) 11.43   .16   1,996   .01   .01   .33   2.47  
10/31/2017 11.00   .26   .86   1.12   (.22 ) (.14 ) (.36 ) 11.76   10.50   1,448   .01   .01   .33   2.33  

129     American Funds Target Date Retirement Series / Prospectus


 
 

 

American Funds 2010 Target Date Retirement Fund

                                                         
    Income (loss) from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class A:                                                         
10/31/2021 $11.37   $.21   $1.46   $1.67   $(.28 ) $(.16 ) $(.44 ) $12.60   14.96 % $660   .34 % .34 % .61 % 1.73 %
10/31/2020 11.28   .25   .23   .48   (.23 ) (.16 ) (.39 ) 11.37   4.31   604   .35   .35   .79   2.22  
10/31/2019 10.71   .28   .67   .95   (.21 ) (.17 ) (.38 ) 11.28   9.32   559   .37   .37   .68   2.54  
10/31/2018 11.01   .24   (.26 ) (.02 ) (.19 ) (.09 ) (.28 ) 10.71   (.28 ) 528   .36   .36   .68   2.18  
10/31/2017 10.34   .22   .72   .94   (.18 ) (.09 ) (.27 ) 11.01   9.32   598   .35   .35   .67   2.08  
Class C:                                                         
10/31/2021 11.16   .12   1.44   1.56   (.20 ) (.16 ) (.36 ) 12.36   14.11   32   1.07   1.07   1.34   .99  
10/31/2020 11.09   .17   .22   .39   (.16 ) (.16 ) (.32 ) 11.16   3.52   26   1.09   1.09   1.53   1.51  
10/31/2019 10.53   .19   .67   .86   (.13 ) (.17 ) (.30 ) 11.09   8.48   28   1.10   1.10   1.41   1.80  
10/31/2018 10.83   .15   (.25 ) (.10 ) (.11 ) (.09 ) (.20 ) 10.53   (1.01 ) 25   1.10   1.10   1.42   1.42  
10/31/2017 10.19   .14   .71   .85   (.12 ) (.09 ) (.21 ) 10.83   8.52   26   1.11   1.11   1.43   1.31  
Class T:                                                         
10/31/2021 11.38   .24   1.46   1.70   (.31 ) (.16 ) (.47 ) 12.61   15.18 14 12 .13 14 .13 14 .40 14 1.95 14
10/31/2020 11.29   .27   .23   .50   (.25 ) (.16 ) (.41 ) 11.38   4.53 14 12 .15 14 .15 14 .59 14 2.44 14
10/31/2019 10.72   .30   .68   .98   (.24 ) (.17 ) (.41 ) 11.29   9.57 14 12 .15 14 .15 14 .46 14 2.77 14
10/31/2018 11.03   .26   (.27 ) (.01 ) (.21 ) (.09 ) (.30 ) 10.72   (.14 )14 12 .15 14 .15 14 .47 14 2.38 14
10/31/20177,15 10.48   .12   .43   .55         11.03   5.25 9,14 12 .14 10,14 .14 10,14 .46 10,14 1.96 10,14
Class F-1:                                                         
10/31/2021 11.31   .21   1.45   1.66   (.28 ) (.16 ) (.44 ) 12.53   14.93   10   .37   .37   .64   1.69  
10/31/2020 11.22   .24   .24   .48   (.23 ) (.16 ) (.39 ) 11.31   4.34   9   .38   .38   .82   2.17  
10/31/2019 10.66   .28   .66   .94   (.21 ) (.17 ) (.38 ) 11.22   9.26   8   .38   .38   .69   2.61  
10/31/2018 10.97   .23   (.26 ) (.03 ) (.19 ) (.09 ) (.28 ) 10.66   (.36 ) 8   .38   .38   .70   2.16  
10/31/2017 10.31   .22   .72   .94   (.19 ) (.09 ) (.28 ) 10.97   9.42   8   .38   .38   .70   2.04  
Class F-2:                                                         
10/31/2021 11.36   .24   1.46   1.70   (.31 ) (.16 ) (.47 ) 12.59   15.26   40   .09   .09   .36   1.96  
10/31/2020 11.27   .28   .23   .51   (.26 ) (.16 ) (.42 ) 11.36   4.60   29   .10   .10   .54   2.48  
10/31/2019 10.71   .30   .67   .97   (.24 ) (.17 ) (.41 ) 11.27   9.57   24   .10   .10   .41   2.79  
10/31/2018 11.02   .26   (.27 ) (.01 ) (.21 ) (.09 ) (.30 ) 10.71   (.12 ) 18   .11   .11   .43   2.35  
10/31/2017 10.35   .24   .73   .97   (.21 ) (.09 ) (.30 ) 11.02   9.64   8   .12   .12   .44   2.27  
Class F-3:                                                         
10/31/2021 11.39   .25   1.47   1.72   (.32 ) (.16 ) (.48 ) 12.63   15.40   8   .01   .01   .28   2.08  
10/31/2020 11.30   .27   .25   .52   (.27 ) (.16 ) (.43 ) 11.39   4.67   6   .01   .01   .45   2.43  
10/31/2019 10.74   .29   .69   .98   (.25 ) (.17 ) (.42 ) 11.30   9.62   4   .02   .01   .32   2.62  
10/31/2018 11.04   .28   (.27 ) .01   (.22 ) (.09 ) (.31 ) 10.74   .04   1   .01   .01   .33   2.56  
10/31/20177,16 10.31   .16   .57   .73         11.04   7.08 9 12 .02 10 .01 10 .33 10 2.00 10
Class R-1:                                                         
10/31/2021 11.33   .12   1.46   1.58   (.21 ) (.16 ) (.37 ) 12.54   14.10   2   1.11   1.11   1.38   1.00  
10/31/2020 11.22   .17   .23   .40   (.13 ) (.16 ) (.29 ) 11.33   3.57   2   1.06   1.06   1.50   1.54  
10/31/2019 10.63   .19   .67   .86   (.10 ) (.17 ) (.27 ) 11.22   8.43   2   1.14   1.14   1.45   1.79  
10/31/2018 10.90   .15   (.26 ) (.11 ) (.07 ) (.09 ) (.16 ) 10.63   (1.04 ) 3   1.14   1.14   1.46   1.42  
10/31/2017 10.23   .14   .71   .85   (.09 ) (.09 ) (.18 ) 10.90   8.47   3   1.14   1.14   1.46   1.35  
Class R-2:                                                         
10/31/2021 11.18   .12   1.44   1.56   (.20 ) (.16 ) (.36 ) 12.38   14.09   106   1.10   1.10   1.37   .99  
10/31/2020 11.09   .16   .23   .39   (.14 ) (.16 ) (.30 ) 11.18   3.57   101   1.12   1.12   1.56   1.48  
10/31/2019 10.53   .19   .67   .86   (.13 ) (.17 ) (.30 ) 11.09   8.49   109   1.11   1.11   1.42   1.81  
10/31/2018 10.83   .15   (.26 ) (.11 ) (.10 ) (.09 ) (.19 ) 10.53   (1.09 ) 108   1.11   1.11   1.43   1.43  
10/31/2017 10.17   .14   .71   .85   (.10 ) (.09 ) (.19 ) 10.83   8.58   125   1.09   1.09   1.41   1.35  
Class R-2E:                                                         
10/31/2021 11.16   .15   1.44   1.59   (.23 ) (.16 ) (.39 ) 12.36   14.46   70   .81   .81   1.08   1.25  
10/31/2020 11.09   .20   .21   .41   (.18 ) (.16 ) (.34 ) 11.16   3.78   61   .82   .82   1.26   1.78  
10/31/2019 10.54   .22   .67   .89   (.17 ) (.17 ) (.34 ) 11.09   8.79   56   .82   .82   1.13   2.06  
10/31/2018 10.86   .18   (.25 ) (.07 ) (.16 ) (.09 ) (.25 ) 10.54   (.72 ) 45   .81   .81   1.13   1.70  
10/31/2017 10.23   .16   .72   .88   (.16 ) (.09 ) (.25 ) 10.86   8.88   41   .80   .80   1.12   1.52  
Class R-3:                                                         
10/31/2021 11.27   .17   1.45   1.62   (.24 ) (.16 ) (.40 ) 12.49   14.62   263   .66   .66   .93   1.44  
10/31/2020 11.19   .21   .22   .43   (.19 ) (.16 ) (.35 ) 11.27   3.94   279   .67   .67   1.11   1.93  
10/31/2019 10.63   .24   .67   .91   (.18 ) (.17 ) (.35 ) 11.19   8.95   298   .67   .67   .98   2.24  
10/31/2018 10.93   .20   (.26 ) (.06 ) (.15 ) (.09 ) (.24 ) 10.63   (.61 ) 285   .67   .67   .99   1.85  
10/31/2017 10.26   .19   .72   .91   (.15 ) (.09 ) (.24 ) 10.93   9.11   291   .66   .66   .98   1.76  
Class R-4:                                                         
10/31/2021 11.35   .21   1.46   1.67   (.28 ) (.16 ) (.44 ) 12.58   14.97   315   .36   .36   .63   1.73  
10/31/2020 11.26   .25   .23   .48   (.23 ) (.16 ) (.39 ) 11.35   4.31   315   .36   .36   .80   2.22  
10/31/2019 10.69   .28   .67   .95   (.21 ) (.17 ) (.38 ) 11.26   9.31   324   .36   .36   .67   2.54  
10/31/2018 10.99   .24   (.26 ) (.02 ) (.19 ) (.09 ) (.28 ) 10.69   (.29 ) 310   .37   .37   .69   2.17  
10/31/2017 10.32   .22   .72   .94   (.18 ) (.09 ) (.27 ) 10.99   9.36   353   .36   .36   .68   2.06  

American Funds Target Date Retirement Series / Prospectus     130


 
 

 

                                                         
    Income (loss) from
investment operations1
Dividends and distributions              
Period ended  Net asset
value,
beginning
of period
Net
investment
income
Net gains
(losses) on
securities
(both
realized and
unrealized)
Total from
investment
operations
Dividends
(from net
investment
income)
Distributions
(from capital
gains)
Total
dividends
and
distributions
Net asset
value,
end
of period
Total return2,3 Net assets,
end of period
(in millions)
Ratio of
expenses to
average net
assets before
reimburse-
ments4
Ratio of
expenses to
average net
assets after
reimburse-
ments3,4
Net
effective
expense
ratio3,5,6
Ratio of
net income
to average
net assets3
Class R-5E:                                                         
10/31/2021 $11.34   $.23   $1.46   $1.69   $(.31 ) $(.16 ) $(.47 ) $12.56   15.14 % $141   .16 % .16 % .43 % 1.90 %
10/31/2020 11.24   .28   .23   .51   (.25 ) (.16 ) (.41 ) 11.34   4.59   137   .16   .16   .60   2.52  
10/31/2019 10.69   .29   .67   .96   (.24 ) (.17 ) (.41 ) 11.24   9.42   154   .16   .16   .47   2.67  
10/31/2018 10.99   .24   (.24 ) 11 (.21 ) (.09 ) (.30 ) 10.69   (.08 ) 104   .16   .16   .48   2.22  
10/31/2017 10.32   .24   .72   .96   (.20 ) (.09 ) (.29 ) 10.99   9.62   46   .15   .15   .47   2.24  
Class R-5:                                                         
10/31/2021 11.46   .25   1.46   1.71   (.31 ) (.16 ) (.47 ) 12.70   15.24   72   .06   .06   .33   2.05  
10/31/2020 11.36   .29   .23   .52   (.26 ) (.16 ) (.42 ) 11.46   4.67   74   .06   .06   .50   2.54  
10/31/2019 10.79   .32   .66   .98   (.24 ) (.17 ) (.41 ) 11.36   9.60   81   .07   .07   .38   2.90  
10/31/2018 11.09   .27   (.26 ) .01   (.22 ) (.09 ) (.31 ) 10.79   (.02 ) 108   .07   .07   .39   2.47  
10/31/2017 10.41   .25   .73   .98   (.21 ) (.09 ) (.30 ) 11.09   9.70   206   .06   .06   .38   2.31  
Class R-6:                                                         
10/31/2021 11.42   .25   1.47   1.72   (.32 ) (.16 ) (.48 ) 12.66   15.36   2,713   .01   .01   .28   2.05  
10/31/2020 11.33   .29   .23   .52   (.27 ) (.16 ) (.43 ) 11.42   4.65   2,191   .01   .01   .45   2.54  
10/31/2019 10.76   .31   .68   .99   (.25 ) (.17 ) (.42 ) 11.33   9.70   1,905   .01   .01   .32   2.85  
10/31/2018 11.06   .27   (.26 ) .01   (.22 ) (.09 ) (.31 ) 10.76   .04   1,380   .01   .01   .33   2.50  
10/31/2017 10.38   .25   .73   .98   (.21 ) (.09 ) (.30 ) 11.06   9.77   1,012   .02   .02   .34   2.37  
           
  Period ended October 31,
Portfolio turnover rate for all share classes 2021 2020 2019 2018 2017
2065 Fund 13% 22%7,8,9      
2060 Fund 12 317 —%18 3% 4%
2055 Fund 1417 317 18 18 1
2050 Fund 1417 417 18 18 18
2045 Fund 1517 417 18 18 18
2040 Fund 1717 517 18 18 18
2035 Fund 1717 917 18 18 18
2030 Fund 21 817 18 18 18
2025 Fund 1817 1217 18 18 18
2020 Fund 2017 1317 2 2 1
2015 Fund 2117 13 6 7 4
2010 Fund 2017 12 5 8 5

1 Based on average shares outstanding.

2 Total returns exclude any applicable sales charges.

3 This column reflects the impact, if any, of certain waivers/reimbursements from Capital Research and Management Company. During some of the periods shown, Capital Research and Management Company reimbursed a portion of transfer agent services fees for Class F-3 shares on certain funds. In addition, during the periods shown, Capital Research and Management Company reimbursed a portion of miscellaneous fees and expenses during 2065 Fund’s startup period.

4 This column does not include expenses of the underlying funds in which each fund invests.

5 This column reflects the net effective expense ratios for each fund and class, which include each class's expense ratio combined with the weighted average net expense ratio of the underlying funds for the periods presented. See expense example for further information regarding fees and expenses.

6 Unaudited.

7 Based on operations for a period that is less than a full year.

8 For the period March 27, 2020, commencement of operations, through October 31, 2020.

9 Not annualized.

10 Annualized.

11 Amount less than $.01.

12 Amount less than $1 million.

13 Amount less than .01%.

14 All or a significant portion of assets in this class consisted of seed capital invested by Capital Research and Management Company and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.

15 Class T shares began investment operations on April 7, 2017.

16 Class F-3 shares began investment operations on January 27, 2017.

17 Includes the value of securities sold due to in-kind redemptions. The rate shown would have been reduced by up to two percentage points if the value of securities sold due to in-kind redemptions were excluded.

18 Amount is either less than 1% or there is no turnover.

131     American Funds Target Date Retirement Series / Prospectus


 
 

 

Appendix

Sales charge waivers

The availability of certain sales charge waivers and discounts will depend on whether you purchase your shares directly from the fund or through a financial intermediary. Intermediaries may have different policies and procedures regarding the availability of front-end sales charge waivers or contingent deferred (back-end) sales charge (“CDSC”) waivers, which are discussed below. In all instances, it is the purchaser’s responsibility to notify the fund or the purchaser’s financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or discounts. Please contact the applicable intermediary with any questions regarding how the intermediary applies the policies described below and to ensure that you understand what steps you must take to qualify for any available waivers or discounts. For waivers and discounts not available through a particular intermediary, shareholders will have to purchase fund shares directly from the fund or through another intermediary to receive these waivers or discounts. If you change intermediaries after you purchase fund shares, the policies and procedures of the new service provider (either your new intermediary or the fund’s transfer agent) will apply to your account. Those policies may be more or less favorable than those offered by the intermediary through which you purchased your fund shares. You should review any policy differences before changing intermediaries.

Class A shares front-end sales charge waivers available at Ameriprise Financial:

The following information applies to Class A shares purchases if you have an account with or otherwise purchase fund shares through Ameriprise Financial:

Effective May 24, 2021, shareholders purchasing fund shares through an Ameriprise Financial brokerage account are eligible for the following front-end sales charge waivers, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI:

· Employer-sponsored retirement plans established prior to April 1, 2004 and that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the same fund family)

· Shares exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following a shorter holding period, that waiver will apply

· Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

· Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans established prior to April 1, 2004 that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement)

· Purchases of Class 529-A shares through a rollover from another 529 plan

· Purchases of Class 529 shares made for recontribution of refunded amounts

D.A. Davidson & Co.

Front-end sales charge waivers on Class A shares available at D.A. Davidson (effective January 1, 2020)

· Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions

· Employees and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as Rights of Reinstatement)

· A shareholder in the fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies and procedures

· D.A. Davidson has the authority to allow the purchase of Class A shares at net asset value for (1) rollovers to IRAs from investments held in American Funds Recordkeeper Direct and PlanPremier retirement plan recordkeeping programs (2) rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as custodian or (3) IRA purchases so long as the proceeds are from the sale of shares from an American Funds Recordkeeper Direct retirement plan, PlanPremier retirement plan or 403(b) plan with Capital Bank and Trust Company as custodian and are used to make a purchase within 60 days of the redemption, if the shares held are ineligible to be rolled over to an IRA.

CDSC Waivers on Classes A and C shares available at D.A. Davidson

American Funds Target Date Retirement Series / Prospectus     132


 
 

 

• Death or disability of the shareholder

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus

· Return of excess contributions from an IRA Account

· Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in the fund’s prospectus

· Shares acquired through a right of reinstatement

Front-end sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent

· Breakpoints as described in this prospectus

· Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A. Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about such assets

· Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets

Edward D. Jones & Co., L.P. ("Edward Jones")

Policies Regarding Transactions Through Edward Jones

The following information has been provided by Edward Jones:

Effective on or after January 1, 2021, the following information supersedes prior information with respect to transactions and positions held in fund shares through an Edward Jones system. Clients of Edward Jones (also referred to as “shareholders”) purchasing fund shares on the Edward Jones commission and fee-based platforms are eligible only for the following sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from discounts and waivers described elsewhere in the mutual fund prospectus or statement of additional information ("SAI") or through another broker-dealer. In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase of any relationship, holdings of the American Funds, or other facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.

Breakpoints

· Breakpoint pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus

Rights of Accumulation ("ROA")

· The applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any direct purchase money market funds and assets held in group retirement plans) of the American Funds held by the shareholder or in an account grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”). If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform. The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation

· The employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level

· ROA is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV)

Letter of Intent ("LOI")

· Through a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges will be adjusted if LOI is not met

· If the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer

Sales Charge Waivers

Sales charges are waived for the following shareholders and in the following situations:

· Associates of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures

133     American Funds Target Date Retirement Series / Prospectus


 
 

 

· Shares purchased in an Edward Jones fee-based program

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment

· Shares purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account

· Shares exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable sales charge as disclosed in the prospectus

· Exchanges from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or earlier at the discretion of Edward Jones

· Purchases of Class 529-A shares through a rollover from another 529 plan

· Purchases of Class 529 shares made for recontribution of refunded amounts

Contingent Deferred Sales Charge ("CDSC") Waivers

If the shareholder purchases shares that are subject to a CDSC and those shares are redeemed before the CDSC is expired, the shareholder is responsible to pay the CDSC except in the following conditions:

· The death or disability of the shareholder, or account beneficiary for Class 529 shares

· Systematic withdrawals with up to 10% per year of the account value

· Return of excess contributions from an Individual Retirement Account (IRA)

· Shares sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches qualified age based on applicable IRS regulations

· Shares sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones

· Shares exchanged in an Edward Jones fee-based program

· Shares acquired through NAV reinstatement

· Shares redeemed at the discretion of Edward Jones for Minimum Balances, as described below

Other Important Information Regarding Transactions Through Edward Jones

Minimum Purchase Amounts

· Initial purchase minimum: $250

· Subsequent purchase minimum: none

Minimum Balances

· Edward Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that are not included in this policy:

 A fee-based account held on an Edward Jones platform

 A 529 account held on an Edward Jones platform

 An account with an active systematic investment plan or LOI

Exchanging Share Classes

· At any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares, or Class R-4 shares for retirement plans with at least $1 million, so long as the shareholder is eligible to purchase the Class A or R-4 shares pursuant to the prospectus. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable sale charge as disclosed in the prospectus

529 Plan Account Maintenance Fees

· For 529 Plan accounts held in omnibus by Edward Jones, the annual account maintenance fees are waived

Class A Sales Charge Waivers Available Through Farmers Financial Solutions

Farmers Financial Solutions has the authority to either (1) rollover shares from an employer sponsored retirement plan to Class A shares in an Individual Retirement Account (IRA) at net asset value or (2) allow the purchase of Class A shares at net asset value, so long as the proceeds are from the sale of shares from an employer sponsored retirement plan and are used to make a purchase within 60 days of the redemption, if the shares held are ineligible to be rolled over to an IRA.

Janney Montgomery Scott LLC

Effective May 1, 2020, if you purchase fund shares through a Janney Montgomery Scott LLC (“Janney”) brokerage account, you will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”), or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.

American Funds Target Date Retirement Series / Prospectus     134


 
 

 

Front-end sales charge* waivers on Class A shares available at Janney

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

· Shares purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., right of reinstatement)

· Shares acquired through a right of reinstatement

· Class C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Janney’s policies and procedures

CDSC waivers on Class A and C shares available at Janney

· Shares sold upon the death or disability of the shareholder

· Shares sold as part of a systematic withdrawal plan as described in the fund’s Prospectus

· Shares purchased in connection with a return of excess contributions from an IRA Account

· Shares sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the fund’s Prospectus

· Shares sold to pay Janney fees but only if the transaction is initiated by Janney

· Shares acquired through a right of reinstatement

· Shares exchanged into the same share class of a different fund unless otherwise provided in the Prospectus

Front-end sales charge* discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent

· Breakpoints as described in the fund’s Prospectus

· Rights of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets

· Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets

*Also referred to as an “initial sales charge.”

JP Morgan Securities LLC

Investors purchasing through JP Morgan Securities LLC may invest in Class 529-A shares at net asset value.

Merrill Lynch, Pierce, Fenner & Smith

Shareholders purchasing fund shares through a Merrill Lynch platform or account are eligible only for the following sales charge waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI.

Front-end sales charge waivers on Class A shares available at Merrill Lynch

· Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan. Except as provided below, Class A shares are not currently available to new plans described in this waiver. Plans that invested in Class A shares of any of the funds without any sales charge before April 1, 2004, and that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value, may continue to purchase American Funds Class A shares without any initial or contingent deferred sales charge

· Shares purchased by or through a 529 Plan. Class A shares are not currently available to the plans described in this waiver

· Shares purchased through a Merrill Lynch affiliated investment advisory program. Class A shares are not currently available in the programs described in this waiver

· Shares purchased by third-party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform. Class A shares are not currently available in the accounts described in this waiver

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

· Shares exchanged from Class C (i.e. level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers

· Employees and registered representatives of Merrill Lynch or its affiliates and their family members

· Directors or Trustees of the fund, and employees of the fund’s investment adviser or any of its affiliates, as described in this prospectus

135     American Funds Target Date Retirement Series / Prospectus


 
 

 

· Eligible shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement). Automated transactions (i.e. systematic purchases and withdrawals) and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement

CDSC waivers on Classes A and C shares available at Merrill Lynch

· Death or disability of the shareholder

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus

· Return of excess contributions from an IRA Account

· Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code

· Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

· Shares acquired through a right of reinstatement

· Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to Class A and C shares only)

· Shares received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers

Front-end sales charge discounts available at Merrill Lynch: breakpoints, rights of accumulation and letters of intent

· Breakpoints as described in this prospectus

· Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the fund’s prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets

· Letters of Intent which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley Wealth Management

Morgan Stanley Wealth Management Class A share front-end sales charge waiver

Morgan Stanley Wealth Management clients purchasing or converting to Class A shares of the fund through Morgan Stanley transactional brokerage accounts are entitled to a waiver of the front-end load in the following additional circumstances:

· Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

· Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

· Class C (level load) share positions that are no longer subject to a contingent deferred sales charge and are converted to a Class A share in the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program

· Effective June 1, 2020, Morgan Stanley, on your behalf, can convert Class F-1 shares to Class A shares without a sales charge if they were initially transferred to the transactional brokerage account or converted from Class C shares

· Shares purchased from the proceeds of redemptions within the same fund family under a Rights of Reinstatement provision, provided the repurchase occurs within 90 days following the redemption, the redemption and purchase occur in the same account, and redeemed shares were subject to a front-end or deferred sales load

Effective June 30, 2020, Morgan Stanley Wealth Management clients purchasing or converting to Class 529-A shares of the fund through Morgan Stanley transactional brokerage accounts are entitled to a waiver of the front-end load in the following additional circumstances:

· Shares purchased through a rollover from another 529 plan

· Recontribution(s) of a refunded qualified higher education expense

Unless specifically described above, no other front-end load waivers are available to mutual fund purchases by Morgan Stanley Wealth Management clients.

Morgan Stanley Wealth Management Class R-4 share employer-sponsored retirement plan eligibility

Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

Northwestern Mutual Investment Services, LLC

Class A and C share purchases in owner-only 401(k) plans held at Northwestern Mutual Investment Services, LLC (NMIS)

Effective November 5, 2021, for 401(k) plans held at NMIS through its clearing firm, Pershing LLC, that cover only owners and their spouses and are not subject to ERISA, participants may purchase Class A shares with the applicable front-end sales charge or Class C shares with the applicable contingent deferred sales charge, in accordance with NMIS’s share class policies applicable to such plans.

American Funds Target Date Retirement Series / Prospectus     136


 
 

 

Oppenheimer & Co., Inc. (OPCO)

Effective June 1, 2020, shareholders purchasing fund shares through an OPCO platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI.

Front-end sales load waivers on Class A shares available at OPCO

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Restatement)

· A shareholder in the fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO

· Employees and registered representatives of OPCO or its affiliates and their family members

· Directors or trustees of the fund, and employees of the fund’s investment adviser or any of its affiliates, as described in this prospectus

CDSC waivers on Class A and C shares available at OPCO

· Death or disability of the shareholder

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus

· Return of excess contributions from an IRA Account

· Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus

· Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO

· Shares acquired through a right of reinstatement

Front-end load discounts available at OPCO: breakpoints, rights of accumulation and letters of intent

· Breakpoints as described in this prospectus

· Rights of accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at OPCO. Eligible fund family assets not held at OPCO may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets

Raymond James & Associates, Inc., Raymond James Financial Services, Inc., and each entity’s affiliates (“Raymond James”) Class A share front-end sales charge waiver

Effective March 1, 2019, shareholders purchasing fund shares through a Raymond James platform or account, or through an introducing broker-dealer or independent registered investment adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following sales charge waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI.

Front-end sales charge waivers on Class A shares available at Raymond James

· Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions

· Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as Rights of Reinstatement)

· A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James

CDSC waivers on Classes A and C shares available at Raymond James

· Death or disability of the shareholder

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus

· Return of excess contributions from an IRA Account

· Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the fund’s prospectus

· Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James

· Shares acquired through a right of reinstatement

137     American Funds Target Date Retirement Series / Prospectus


 
 

 

Front-end sales charge discounts available at Raymond James: breakpoints, rights of accumulation and/or letters of intent

· Breakpoints as described in this prospectus

· Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about such assets

· Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets

Robert W. Baird & Co. Incorporated (Baird)

Effective June 15, 2020, shareholders purchasing fund shares through a Baird platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.

Front-end sales charge waivers on Class A shares available at Baird

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund

· Shares purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird

· Shares purchased from the proceeds of redemptions from another fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same accounts, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement)

· A shareholder in the fund’s Class C shares will have their shares converted at net asset value to Class A shares of the fund if the shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird

CDSC waivers on Class A and C shares available at Baird

· Shares sold due to death or disability of the shareholder

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus

· Shares bought due to returns of excess contributions from an IRA Account

· Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the fund’s prospectus

· Shares sold to pay Baird fees but only if the transaction is initiated by Baird

· Shares acquired through a right of reinstatement

Front-end sales charge discounts available at Baird: breakpoints and/or rights of accumulation

· Breakpoints as described in this prospectus

· Rights of accumulation which entitles shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets

· Letters of intent (LOI) allow for breakpoint discounts based on anticipated purchases of fund family assets through Baird, over a 13-month period of time

Stifel, Nicolaus & Company, Incorporated ("Stifel")

Effective July 1, 2020, shareholders purchasing fund shares through a Stifel platform or account or who own shares for which Stifel or an affiliate is the broker-dealer of record are eligible for the following additional sales charge waiver

Front-end sales load waiver on Class A shares

· Class C shares that have been held for more than seven (7) years will be converted to Class A shares of the same fund pursuant to Stifel's policies and procedures

All other sales charge waivers and reductions described elsewhere in the fund’s prospectus or SAI still apply. For accounts held by the fund’s transfer agent, the fund’s standard C share conversion schedule of 8 years applies.

U.S. Bancorp Investments, Inc.

Class C to Class A share conversions at U.S. Bancorp Investments, Inc.

Effective November 30, 2020, a shareholder in the fund’s Class C shares will have their shares systematically converted at net asset value to Class A shares of the same fund in the month of the six-year anniversary of the purchase date, if the shares are no longer subject to a CDSC and the conversion is consistent with U.S. Bancorp Investments, Inc. share class exchange policy. This policy does not apply to accounts held with the fund’s transfer agent. Accounts held with the fund’s transfer agent will convert pursuant to the fund’s policy described in this prospectus.

American Funds Target Date Retirement Series / Prospectus     138


 
 

 

       
       
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(800) 421-4225
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Multiple translations This prospectus may be translated into other languages. If there is any inconsistency or ambiguity as to the meaning of any word or phrase in a translation, the English text will prevail. Liability is not limited as a result of any material misstatement or omission introduced in the translation.

Annual/Semi-annual report to shareholders The shareholder reports contain additional information about the series, including financial statements, investment results, portfolio holdings, a discussion of market conditions and the series’ investment strategies, and the independent registered public accounting firm’s report (in the annual report).

Statement of additional information (SAI) and codes of ethics The current SAI, as amended from time to time, contains more detailed information about the series, including the series’ financial statements, and is incorporated by reference into this prospectus. This means that the current SAI, for legal purposes, is part of this prospectus. The codes of ethics describe the personal investing policies adopted by the series, the series’ investment adviser and its affiliated companies.

The codes of ethics and current SAI are on file with the U.S. Securities and Exchange Commission (SEC). These and other related materials about the series are available for review on the EDGAR database on the SEC’s website at sec.gov or, after payment of a duplicating fee, via email request to [email protected]. The codes of ethics, current SAI and shareholder reports are also available, free of charge, on our website, capitalgroup.com.

E-delivery and household mailings Each year you are automatically sent an updated summary prospectus and annual and semi-annual reports for the series. You may also occasionally receive proxy statements for the series. In order to reduce the volume of mail you receive, when possible, only one copy of these documents will be sent to shareholders who are part of the same family and share the same household address. You may elect to receive these documents electronically in lieu of paper form by enrolling in e-delivery on our website, capitalgroup.com.

If you would like to opt out of household-based mailings or receive a complimentary copy of the current SAI, codes of ethics, annual/semi-annual report to shareholders or applicable program description, please call American Funds Service Company at (800) 421-4225 or write to the secretary of the series at 333 South Hope Street, Los Angeles, California 90071-1406.

   
 
 
 
MFGEPRX-850-0122P
Litho in USA CGD/DFS/9773
Investment Company File No. 811-21981
 


 

 

 

 

THE FUND MAKES AVAILABLE A SPANISH TRANSLATION OF THE ABOVE PROSPECTUS IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ENGLISH LANGUAGE PROSPECTUS ABOVE IS A FAIR AND ACCURATE REPRESENTATION OF THE SPANISH EQUIVALENT.

 

/s/ STEVEN I. KOSZALKA
  STEVEN I. KOSZALKA
  SECRETARY