Ten Years on Target: What’s Worked in Target Date Funds | Capital Group

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Defined Contribution Insights

June 2017

Ten Years on Target: What’s Worked in Target Date Funds

What have we learned about target date funds in the 10 years since the Pension Protection Act took effect, driving a surge in target date assets? Brad Vogt, principal investment officer of American Funds Target Date Retirement Series®, provides some insights to help plan sponsors and advisors evaluate target date funds. He discusses:

• The shift toward greater equity among many target date
series.

• Why an excessive focus on low fees can potentially be
detrimental to participant outcomes.

• The benefits of having flexible global and multi-asset funds.

• Managing risk in the years leading up to retirement.

• What makes American Funds Target Date Series different and successful in the 10 years since its launch.


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Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice.