tm track machines llc 401k plan · machines llc 401k plan to help you prepare for retirement. ......

TM TrackMachines LLC401k PlanParticipant Fee Disclosure

August, 2017

Plan-Related Information

Your employer offers the TM TrackMachines LLC 401k Plan to help youprepare for retirement.This document is designed to help you understandcertain plan provisions, investment information and thecosts associated with your plan. If you come across aterm that isn’t familiar to you, please take a moment toreview the glossary available atamericanfunds.com/retire.

General Plan InformationYour Investment Options

You can choose a target date fund using one of theAmerican Funds Target Date Funds, or you can buildyour own portfolio by choosing from among the otherinvestment options in the plan.

Investment InstructionsTo begin participating in your employer’s retirementplan, you must first meet the plan’s eligibilityrequirements and enroll. Once enrolled, you canprovide investment instructions (i.e., make investmentexchanges or change future contribution elections) inany of the following ways:l By Phone: Call (877) 833-9322.l On the internet: Go to americanfunds.com/retire.

Please note: Trading activity is monitored to ensurethat trading guidelines, which are described in theprospectuses, are observed.

If you exchange or reallocate $5,000 or more from oneinvestment you must wait 30 days before you canexchange back into that same investment. Non-American Funds may have their own tradingrestrictions. Please see the prospectuses for details.

Voting and Other RightsThe trustee or another plan fiduciary may vote orexercise any other rights associated with ownership ofthe investments held in your account.

Designated Investment AlternativesThe “Investment-Related Information” table(s) identifyand provide information about the plan’s investmentoptions.

Administrative ExpensesPlan-Level Expenses/CreditsThe day-to-day operation of a retirement plan involvesexpenses for ongoing administrative services — such asplan recordkeeping, compliance and plan documentservices, investment services and trustee/custodialservices — that are necessary for administering the planas a whole. A retirement plan also offers a host of otherservices, such as a telephone voice response system,access to customer service representatives, retirementplanning tools, electronic access to plan information,account statements and online transactions.

A portion of these services are paid from the plan’sinvestments. This is reflected in each investment’sexpense ratio and reduces the investment returns. If anadditional amount is required to cover your plan’sadministrative expenses, your employer expects that itwill be paid from the plan’s forfeiture assets or fromthe general assets of your employer.

The plan may also incur unexpected expenses thatmay be deducted from participant accounts.

Individual ExpensesIn addition to overall plan administrative expenses,there are individual service fees associated withoptional features offered under your plan. Individualservice fees will be charged separately if you chooseto take advantage of a particular plan feature. Thesefees are described below.

Loan FeesA loan initiation fee of $160 will be deducted fromyour account balance for setting up the loan andproviding an amortization schedule. An ongoingmaintenance fee of $50 per year is also charged on anannual basis for maintaining the loan on therecordkeeping system and for monitoring the loanpayments received.

Periodic Distribution FeesIf your plan allows periodic distributions, a setup andongoing fee will be charged to your account forselecting this option. Periodic distributions include asetup fee of $25, which is deducted from the initialdistribution. An annual maintenance fee of $25 is thendeducted from the first distribution of each calendaryear that follows.

One-time Distribution/Transaction FeesYou will be charged a fee for a one-time distribution orcertain other requested account transactions. Theamount of the fee may vary based on the type ofdistribution or transaction, if applicable.

Visit your plan's website at americanfunds.com/retire|1

Plan-Related Information

One-time distribution fee: $75.00 per request

Rollover investments from your retirement plan into anAmerican Funds IRA, with Capital Bank and Trust ascustodian, will automatically be invested in Class Ashares at no sales charge regardless of the share classavailable in your retirement plan. Any futurecontributions to the IRA will be assessed theappropriate sales charge based on the applicablebreak points. See the specific fund’s prospectus foradditional information.

Have Questions?

Your Plan ContactKristen Onkka(402) [email protected]


Investment-Related DisclosureInvestment-Related InformationThe investment options in your plan

One way to assess an investment’s results is to compare itsresults with those of a comparable benchmark or index.The benchmarks and their returns are shown in the table.Check your investment’s annual and semi-annual reportsto shareholders for more information.

You should carefully consider fees and expenses whenmaking investment decisions. The cumulative effect of feesand expenses can substantially reduce the growth of yourretirement account over time. For an example of the long-term effect of fees and expenses, visit the EmployeeBenefits Security Administration (EBSA) website atwww.dol.gov/ebsa/publications/401k_employee.html.However, fees and expenses are only one of many factorsto consider when you evaluate your plan investmentoptions.

Generally, there are two types of fees and expensesassociated with saving and investing through a retirementplan: (1) recordkeeping and administrative fees and (2)investment expenses. The expenses related to eachinvestment in your plan are known as the expense ratios.Expense ratios tend to vary with the investment category;for example, a money market investment will generallyhave a lower expense ratio than a global equityinvestment, which has higher costs.

The gross expense ratio reflects the investment’s totalannual operating expenses. It does not include any feewaivers or expense reimbursements. The net expenseratio reflects any applicable fee waivers or expensereimbursements. This is the actual expense ratio that youpaid. Expense ratios are as of each investment’sprospectus available at the time of publication.

Investments are not FDIC-insured, nor are they depositsof or guaranteed by a bank or any other entity, so theymay lose value.

Figures shown are past results and are not predictive offuture results. Current and future results may be lower orhigher than those shown here. Share prices and returnswill vary, so you may lose money. Investing for shortperiods makes losses more likely.

Prospectuses, SAIs and annual reports, if applicable, areavailable free of charge by calling (877) 833-9322 or onthe web at americanfunds.com/retire.

Portfolio turnover information is included in yourinvestments’ summary prospectuses.

For additional details, go to americanfunds.com/retire andclick on the link under “Monthly Investment Results.” If youhave an established log-in, you can also access investmentinformation by logging in and clicking on the “InvestmentOptions” tab.

To understand the risks associated with the investmentsyou’re considering, read the numbered notes on the“Investment-Related Disclosure” page(s). There you’ll alsofind share class and other important disclosureinformation.



Investment NameBenchmarkInvestment Manager

Asset Class

Inception Date

Average Annual Total Returns (%) Expense Ratios (%) Gross Expenses

per $1,000

Lifetime 10 Years 5 Years 1 Year Gross Net

Investment Options for Class R-2 as of 06/30/17

Growth InvestmentsAmerican Funds AMCAP Growth 05/01/67 10.56 6.85 13.57 15.51 1.46 1.46 $14.60

Standard & Poor's 500 Composite Index 9.97 7.18 14.63 17.90

American Funds. Shareholder Type Fees - None.

Investment footnote(s): 1,2,3,4,5,6,7,8

American Funds EuroPacificGrowth

Growth 04/16/84 9.98 2.36 8.43 20.85 1.60 1.60 $16.00

MSCI All Country World Index (ACWI) ex USA 8.80 1.13 7.22 20.45


Investment footnote(s): 1,2,3,4,5,6,7,8,9,10

American Funds New World Fund Growth 06/17/99 7.05 2.46 5.71 18.23 1.79 1.79 $17.90

MSCI All Country World Index (ACWI) 4.47 3.71 10.54 18.78


Investment footnote(s): 1,2,3,4,5,6,7,8,10,11,12,13,14

American Funds SMALLCAPWorld Fund

Growth 04/30/90 8.84 4.43 11.76 20.82 1.84 1.84 $18.40

MSCI All Country World Small Cap Index 8.22 5.41 12.10 20.47


Investment footnote(s): 1,2,3,4,5,6,7,8,10,12,15

Growth-and-Income InvestmentsAmerican Funds InvestmentCo of America

Growth-and-income

01/01/34 11.22 5.53 13.22 14.79 1.39 1.39 $13.90



Investment footnote(s): 1,2,3,4,5,6,7,8,16

American Funds WashingtonMut Inv Fund

Growth-and-income

07/31/52 10.95 5.58 12.41 14.19 1.39 1.39 $13.90



Investment footnote(s): 2,3,4,5,6,7,8,16

Bond InvestmentsAmerican Funds BondFund of America

Bond 05/28/74 6.80 2.32 1.51 -0.52 1.35 1.35 $13.50

Bloomberg Barclays U.S. Aggregate Index 7.59 4.48 2.21 -0.31


Investment footnote(s): 1,3,4,6,7,8,11,14,17,18,19,20,21,22

American Funds CapitalWorld Bond Fund

Bond 08/04/87 5.37 2.67 0.32 -0.98 1.67 1.67 $16.70

Bloomberg Barclays Global Aggregate Index 6.07 3.69 0.78 -2.18


Investment footnote(s): 1,3,4,6,7,8,10,11,13,14,18,23,24,25




Asset Class

Inception Date


per $1,000



Bond InvestmentsAmerican Funds Interm BdFd of America

Bond 02/19/88 3.91 1.52 0.23 -1.11 1.37 1.37 $13.70

Bloomberg Barclays U.S. Government/Credit (1-7 years,ex BBB) Index

5.36 3.20 1.31 -0.47


Investment footnote(s): 3,4,6,7,8,11,14,17,18,20,21,22,26

American Funds US GovernmentSecurities

Bond 10/17/85 4.87 2.85 0.44 -1.96 1.37 1.37 $13.70

Bloomberg Barclays U.S. Government/Mortgage-BackedSecurities Index

6.50 4.10 1.59 -1.30


Investment footnote(s): 3,4,6,7,8,11,17,18,20,21,22

Cash-Equivalent InvestmentsAmerican Funds U.S. GovernmentMoney Market Fund

Cash-equivalent

05/01/09 0.00 N/A 0.00 0.00 1.44 1.44 $14.40

USTREAS T-Bill Auction Ave 3 Mon 0.15 0.49 0.18 0.58


The annualized seven-day SEC yield for American Funds U.S. Government Money Market FundSM, calculated in accordance with the SECformula, was 0.00% as of 06/30/17. The yield takes into account the reimbursements of certain expenses where applicable. Without these,the yield would have been -0.50%. The yield more accurately reflects the investment’s current earnings than do the investments total returns.

Target Date InvestmentsAmerican FundsTarget Date 2010

Target date 02/01/07 3.79 3.42 6.07 5.88 1.45 1.45 $14.50

S&P Target Date Through 2010 Index 4.84 4.75 6.59 7.33


Investment footnote(s): 1,2,3,4,6,7,8,10,11,12,13,14,17,18,21,22,27,28,29,30

American FundsTarget Date 2015

Target date 02/01/07 4.05 3.66 6.91 6.46 1.45 1.45 $14.50





Target date 02/01/07 4.27 3.82 7.88 7.79 1.47 1.47 $14.70





Target date 02/01/07 4.83 4.36 9.31 9.59 1.48 1.48 $14.80







Asset Class

Inception Date


per $1,000



Target Date InvestmentsAmerican FundsTarget Date 2030

Target date 02/01/07 5.32 4.86 10.26 12.22 1.50 1.50 $15.00





Target date 02/01/07 5.47 5.00 10.69 14.22 1.51 1.51 $15.10





Target date 02/01/07 5.56 5.09 10.90 14.90 1.52 1.52 $15.20





Target date 02/01/07 5.60 5.13 10.99 15.32 1.53 1.53 $15.30





Target date 02/01/07 5.60 5.13 11.00 15.43 1.53 1.53 $15.30





Target date 02/01/10 9.84 N/A 10.98 15.42 1.54 1.54 $15.40

S&P Target Date Through 2055 Index 10.66 N/A 11.57 17.20


Investment footnote(s): 1,2,3,4,6,7,8,10,11,12,13,14,17,18,21,22,27,29,30


Target date 03/27/15 6.55 N/A N/A 15.29 1.73 1.56 $17.30

S&P Target Date Through 2060+ Index 6.96 N/A 11.57 17.22


Investment footnote(s): 1,2,3,4,6,7,8,10,11,12,13,14,17,18,21,22,27,29,30


Investment-Related Disclosure

Investment-Related Disclosure 1 Investments in foreign securities

may be subject to increasedvolatility as the value of thesesecurities can change more rapidlyand extremely than can the valueof U.S. securities. Foreign securitiesare subject to increased issuer riskbecause foreign issuers may notexperience the same degree ofregulation as U.S. issuers do andare held to different reporting,accounting, and auditingstandards. In addition, foreignsecurities are subject to increasedcosts because there are generallyhigher commission rates ontransactions, transfer taxes, highercustodial costs, and the potentialfor foreign tax charges on dividendand interest payments. Manyforeign markets are relatively small,and securities issued in less-developed countries face the risksof nationalization, expropriation orconfiscatory taxation, and adversechanges in investment orexchange control regulations,including suspension of the abilityto transfer currency from a country.Economic, political, social, ordiplomatic developments can alsonegatively impact performance.

2 The investment is intended to beheld for a substantial period oftime, and investors should toleratefluctuations in their investment’svalue.

3 Because the investment’s marketvalue may fluctuate up and down,an investor may lose money,including part of the principal,when he or she buys or sells theinvestment.

4 The investment is not a deposit orobligation of, or guaranteed orendorsed by, any bank and is notinsured by the Federal Deposit

Insurance Corporation, the FederalReserve Board, or any other U.S.governmental agency.

5 Growth securities may be subjectto increased volatility as the valueof these securities is highlysensitive to market fluctuations andfuture earnings expectations.These securities typically trade athigher multiples of currentearnings than do other securitiesand may lose value if it appearstheir earnings expectationsmay not be met.

6 The investment is activelymanaged and subject to the riskthat the advisor’s usage ofinvestment techniques and riskanalyses to make investmentdecisions fails to perform asexpected, which may cause theportfolio to lose value orunderperform investments withsimilar objectives and strategies orthe market in general.

7 A stake in any individual security issubject to the risk that the issuer ofthat security performs poorly,resulting in a decline in thesecurity’s value. Issuer-relateddeclines may be caused by poormanagement decisions,competitive pressures,technological breakthroughs,reliance on suppliers, laborproblems or shortages, corporaterestructurings, fraudulentdisclosures, or other factors.Additionally, certain issuers may bemore sensitive to adverse issuer,political, regulatory, market, oreconomic developments.

8 The market value of the portfolio’ssecurities may fall rapidly orunpredictably because ofchanging economic, political, ormarket conditions, which mayreduce the value of the portfolio.

9 From April 16, 1984, throughDecember 31, 1987, the MSCIEAFE (Europe, Australasia, Far East)Index was used because the MSCIACWI (All Country World Index) exUSA did not yet exist. SinceJanuary 1, 1988, the MSCI ACWI exUSA has been used. The MSCIEAFE Index reflects dividends netof withholding taxes. The MSCIACWI ex USA reflects dividendsgross of withholding taxes throughDecember 31, 2000, and dividendsnet of withholding taxes thereafter.

10 Investments in emerging- andfrontier-markets securities may besubject to greater market, credit,currency, liquidity, legal, political,and other risks compared withassets invested in developedforeign countries.

11 The value of fixed-income or debtsecurities may be susceptible togeneral movements in the bondmarket and are subject to interest-rate and credit risk.

12 Concentrating assets in small-capitalization stocks may subjectthe portfolio to the risk that thosestocks underperform othercapitalizations or the market as awhole. Smaller, less-seasonedcompanies may be subject toincreased liquidity risk comparedwith mid- and large-cap companiesand may experience greater pricevolatility than do those securitiesbecause of limited product lines,management experience, marketshare, or financial resources,among other factors.

13 Investments in below-investment-grade debt securities and unratedsecurities of similar credit quality,commonly known as "junk bonds"or "high-yield securities," may besubject to increased interest,credit, and liquidity risks.



14 Restricted and illiquid securitiesmay fall in price because of aninability to sell the securities whendesired. Investing in restrictedsecurities may subject the portfolioto higher costs and liquidity risk.

15 Because the MSCI All CountryWorld Small Cap Index was not inexistence when the fund’s Class Ashares were first sold, cumulativereturns through May 31, 1994,reflect the returns of the S&PDeveloped <$1.2 Billion Index.Results reflect dividends net ofwithholding taxes.

16 The investment’s income paymentsmay decline depending onfluctuations in interest rates andthe dividend payments of itsunderlying securities. In this event,some investments may attempt topay the same dividend amount byreturning capital.

17 Investments in U.S. governmentobligations are subject to varyinglevels of government support. Inthe event of default, some U.S.government securities, includingU.S. Treasury obligations andGinnie Mae securities, are issuedand guaranteed as to principal andinterest by the full faith and creditof the U.S. government. Othersecurities are obligations of U.S.government-sponsored entitiesbut are neither issued norguaranteed by the U.S.government.

18 Investments in derivatives may besubject to the risk that the advisordoes not correctly predict themovement of the underlyingsecurity, interest rate, market index,or other financial asset, or that thevalue of the derivative does notcorrelate perfectly with either theoverall market or the underlyingasset from which the derivative’s

value is derived. Becausederivatives usually involve a smallinvestment relative to themagnitude of liquidity and otherrisks assumed, the resulting gain orloss from the transaction will bedisproportionately magnified.These investments may result in aloss if the counterparty to thetransaction does not performas promised.

19 The Bloomberg Barclays U.S.Aggregate Index began onJanuary 1, 1976. From May 28,1974, through December 31, 1975,the Bloomberg Barclays U.S.Government/CreditIndex was used.

20 Unlike other fixed-incomesecurities, the values of inflation-protected securities are notsignificantly impacted by inflationexpectations because their interestrates are adjusted for inflation.Generally, the value of inflation-protected securities will fall whenreal interest rates rise and risewhen real interest rates fall.

21 Investments in futures contractsand options on futures contractsmay increase volatility and besubject to additional market, activemanagement, interest, currency,and other risks if the contractcannot be closed when desired.

22 Investments in mortgage-backedand asset-backed securities maybe subject to increased pricevolatility because of changes ininterest rates, issuer informationavailability, credit quality of theunderlying assets, marketperception of the issuer, availabilityof credit enhancement, andprepayment of principal. The valueof ABS and MBS may be adverselyaffected if the underlying borrowerfails to pay the loan included in

the security.23 The Bloomberg Barclays Global

Aggregate Index began onDecember 31, 1989. For the periodAugust 4, 1987, to December 31,1989, the Citigroup WorldGovernment Bond Index was used.

24 Investments in securities traded inforeign currencies or more directlyin foreign currencies are subject tothe risk that the foreign currencywill decline in value relative to theU.S. dollar, which may reduce thevalue of the portfolio. Investmentsin currency hedging positions aresubject to the risk that the value ofthe U.S. dollar will decline relativeto the currency being hedged,which may result in a loss of moneyon the investment as well as theposition designed to act as ahedge. Cross-currency hedgingstrategies and active currencypositions may increase currencyrisk because actual currencyexposure may be substantiallydifferent from that suggested bythe portfolio’s holdings.

25 A nondiversified investment, asdefined under the Investment Actof 1940, may have an increasedpotential for loss because itsportfolio includes a relatively smallnumber of investments.Movements in the prices of theindividual assets may have amagnified effect on anondiversified portfolio. Any saleof the investment’s large positionscould adversely affect stock pricesif those positions represent asignificant part of a company’soutstanding stock.

26 This investment holds shorterterm bonds.

27 Performance is subject to the riskthat the advisor’s asset allocationand investment strategies do not



perform as expected, which maycause the portfolio tounderperform its benchmark, otherinvestments with similar objectives,or the market in general. Theinvestment is subject to the risk ofloss of income and capitalinvested, and the advisor does notguarantee its value, performance,or any particular rate of return.

28 The S&P Target Date Throughseries indexes (2010-2045) beganon 5/31/2007. From 2/1/2007through 5/30/2007, the S&P TargetDate series was used.

29 The value of equity securities,which include common, preferred,and convertible preferred stocks,will fluctuate based on changes intheir issuers’ financial conditions,as well as overall market andeconomic conditions, and candecline in the event ofdeteriorating issuer, market, oreconomic conditions.

30 A portfolio’s risks are closelyassociated with the risks of thesecurities and other investmentsheld by the underlying orsubsidiary funds, and the ability ofthe portfolio to meet its investmentobjective likewise depends on theability of the underlying funds tomeet their objectives. Investmentin other funds may subject theportfolio to higher costs thanowning the underlying securitiesdirectly because of theirmanagement fees.

31 The S&P Target Date Through 2050Index began on 5/30/2008. From2/1/2007 through 5/29/2008, theS&P Target Date 2045Index was used.

Please read the followingimportant disclosure.

Investment results assume alldistributions are reinvested andreflect applicable fees and expenses.Expense ratios are as of each fund’sprospectus available at the time ofpublication. Net expense ratios reflectany current waivers and/orreimbursements to the funds; grossexpense ratios do not. Whenapplicable, investment results reflectfee waivers and/or expensereimbursements, without whichresults would have been lower. Formore information, please see yourplan’s website.

For the American Funds target dateseries, investment results, whenapplicable, reflect expensereimbursements, without whichresults would have been lower. Pleasesee americanfundsretirement.com formore information. The investmentadviser is currently reimbursing aportion of other expenses for eachshare class of American Funds 2060Target Date Retirement Fund. Thereimbursement will be in effectthrough at least January 1, 2017,unless modified or terminated by theinvestment adviser. Investment resultsand net expense ratios for the 2060Fund reflect the reimbursement,without which the results would havebeen lower and the expenses wouldhave been higher. The expense ratiosare as of each fund’s prospectusavailable at the time of publicationand include the weighted averageexpenses of the underlying AmericanFunds. The expense ratios for the2060 Fund are estimated.

For the American Funds moneymarket fund, the investment adviser iscurrently reimbursing a portion of thefund’s fees and expenses. Investment

results reflect the reimbursement,without which results would havebeen lower. Please see the "FinancialHighlights" table in the fund’s mostrecent prospectus for details.

Although American Funds U.S.Government Money Market Fund hasa 12b-1 plan for this share class, it’scurrently suspending certain 12b-1payments in this low-interest-rateenvironment. Should paymentscommence, its investment results willbe lower and expenses will be higher.

Some investment names may beabbreviated due to space limitations.For a list of the full names of theAmerican Funds, including trademarkinformation,visit americanfundsretirement.com.

The indexes are unmanaged and,therefore, have no expenses.Investors cannot invest directly in anindex. There have been periods whenthe investments have laggedthe indexes.

Share ClassAmerican Funds Class R-2 shareswere first offered on May 15, 2002.Class R-2 share results prior to thedate of first sale are hypotheticalbased on Class A share results withouta sales charge, adjusted for typicalestimated additional expenses.Results for certain funds with aninception date after May 15, 2002,also include hypothetical returnsbecause those funds’ Class R-2 sharessold after the funds’ date of firstoffering. Please see the prospectusesfor more information on specificexpenses.

ManagerThe American Funds are managed byCapital Group, one of the largestinvestment managementorganizations in the world. Since



1931, the company has invested witha long-term focus based on thoroughresearch and attention to risk — aninvestment style similar to that of mostpeople saving for retirement.


Please read the important “Investment Results Disclosure” that precedes these “Investment Details.”

Investment DetailsThe investment options in your plan

American Funds

American Funds Target Date Retirement Series®

What You Should Know About the Target Date Series• Each fund is composed of a diverse mix of the American

Funds and is subject to their risks and returns.• You can choose a single investment option as your overall

portfolio.• You don’t have to manage the portfolio. American Funds

investment professionals manage the target date fund’s portfolio, moving it from a more growth-oriented focus to a more income-oriented focus as the fund gets closer to its target date.

• Investment professionals continue to manage each fund for 30 years after its target date is reached.

• The target date is the year in which an investor is assumed to retire and begin taking withdrawals.

• Although the target date funds are managed for investors on a projected retirement date time frame, the funds’ allocation approach does not guarantee that investors’ retirement goals will be met. In addition, contributions to a target date fund may not be adequate to reach your retirement goals.

GoalDepending on the proximity to its target date, each fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital.

Fast Facts (updated annually as of 12/31/16)• The series offers a number of target date fund portfolios in

fi ve-year increments for retirement dates through 2060.• The Portfolio Oversight Committee members, on average,

have 29 years of investment experience.• Each target date fund portfolio is made up of at least

16 American Funds.

The Target Date Fund PortfoliosThe target date funds follow this current investment approach (see below), moving from a more growth-oriented focus when retirement is years away to a more income-oriented focus as the retirement date approaches. Each fund may include a mix of growth, growth-and-income, equity-income/balanced and fi xed income funds (i.e., bond funds).

The Funds Are Managed Through RetirementThe target date series is managed to take investors through retirement — and accordingly, it’s managed well beyond a target retirement year. In a sense, the retirement date is seen as a starting point rather than an ending point.

The target allocations shown are effective as of January 1, 2017, and are subject to the Portfolio Oversight Committee’s discretion. The funds’ investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below these allocations. Underlying funds may be added or removed during the year. For quarterly updates of fund allocations, visit americanfundsretirement.com.

How Target Date Funds WorkTarget date funds are most appropriate for individuals who intend to retain assets in the fund past the designated target date and then gradually withdraw their assets over time. Keep in mind that while the funds are designed to serve investors throughout the retirement income phase, you don’t have to retain assets in the fund past the designated target date. Instead, you can move your money out of the target date fund and into other investments of your choosing.

You’ll fi nd an explanation of each target date fund’s investment approach in its summary prospectus. Please read the prospectus carefully before investing. You can also fi nd key investment details about each fund on americanfundsretirement.com or your plan’s website.

Target Date Investments

0

10

20

30

40

50

60

70

80

90

100%

45 40 35 30 25 20 15 10 5 +5 +10 +15 +20 +25 +30

Years Before Retirement Years After RetirementRetirement

Growth Funds

Growth-and-Income Funds

Fixed Income Funds

Equity-Income/Balanced Funds

American Funds Target Date Glide Path

Target Date Investments

0

10

20

30

40

50

60

70

80

90

100%

45 40 35 30 25 20 15 10 5 +5 +10 +15 +20 +25 +30

Retirement

American Funds Target Date Glide Path

Years Before Retirement Years After Retirement

Growth Funds

Growth-and-Income Funds

Fixed Income Funds

Equity-Income/Balanced Funds

The target allocations shown are effective as of January 1, 2017, and are subject to the Portfolio Oversight Committee’s discretion. The funds’ investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below these allocations. Underlying funds may be added or removed during the year. For quarterly updates of fund allocations, visit americanfundsretirement.com.

How Target Date Funds WorkTarget date funds are most appropriate for individuals who intend to retain assets in the fund past the designated target date and then gradually withdraw their assets over time. Keep in mind that while the funds are designed to serve investors throughout the retirement income phase, you don’t have to retain assets in the fund past the designated target date. Instead, you can move your money out of the target date fund and into other investments of your choosing.

You’ll fi nd an explanation of each target date fund’s investment approach in its summary prospectus. Please read the prospectus carefully before investing. You can also fi nd key investment details about each fund on americanfundsretirement.com or your plan’s website.


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AMERICAN FUNDS

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