American Funds 2010 Target Date Retirement Income Fund® Class R-6 RFTTX

Retirement savers remain well served by the American Funds Target Date Retirement series. Competitive pricing (versus similarly distributed share classes), strong oversight, and a lineup of dependable underlying strategies collectively position the series to stay ahead of most peers.

Capital Group’s target-date solutions committee has strengthened the research foundation behind the glide path and asset-allocation framework in recent years, aided by a deliberate buildout of dedicated support. Since 2020, the firm’s multi-asset research team—the Capital Solutions Group—has expanded to 17 members from three, with additional hires expected, reinforcing the committee’s ability to pressure-test assumptions and refine portfolio construction over time.

The committee also draws effectively on the specialized expertise of the underlying portfolio managers to implement more nuanced tilts. Those stock, bond, and multi-asset funds are backed by deep global analyst resources and experienced managers; in the 2030 vintage, nearly 90% of assets sit in strategies carrying Morningstar Medalist Ratings—a notable showing for an all-active lineup.

While the series’ overall equity glide path is broadly in line with category norms, the within-glide-path design shows thoughtful calibration. Portfolios furthest from retirement lean more heavily on the firm’s equity growth strategies to emphasize capital appreciation, while allocations closer to retirement increasingly favor equity income strategies that typically hold steadier businesses, often trading some upside potential for improved downside resilience.

In 2022, for example, those tilts proved particularly valuable for investors nearing retirement: The 2025 vintage and older funds declined less than their peers amid the year’s market turbulence. The series’ most distant vintages fared worse on a relative basis, but those shareholders have the longest runways and thus the greatest capacity to recover from short-term drawdowns. By the end of 2025, the furthest-dated funds had each climbed to new highs relative to their post-2021 trajectories, and most of the series’ lowest-cost share classes outpaced the average peer over the three-year period beginning in 2023.

Capital Group’s multi-asset team has continued to strengthen an already durable framework for glide path design and portfolio construction, supporting a High Process rating.

The series is overseen by a committee that relies primarily on an objectives-based allocation framework, mapping exposures to broad building blocks such as “growth” and “growth and income.” As investors move along the glide path, that architecture shifts the equity profile from growth-oriented holdings toward more value- and income-leaning exposure, consistent with the series’ progression from maximizing appreciation to balancing income needs and capital preservation approaching—and entering—retirement.

In recent years, the dedicated multi-asset group has strengthened the modeling and quantitative toolkit that informs portfolio structure and allocation decisions, and those upgrades have translated into concrete implementation changes. In 2024, for example, the allocators expanded emerging-markets exposure by introducing an emerging-markets bond strategy and increasing the allocation to emerging-markets equities, a timely move as non-US opportunities broadened.

The processes used by the underlying strategies also set the series apart. Capital Group's portfolio managers and analysts have well-deserved reputations for producing strong fundamental analyses. The strength of the underlying strategies is particularly important for this series. The series’ allocators entrust the underlying managers to exercise greater control over its sub-asset-class positioning, particularly the balance between US and international equities.

At the top level, the equity glide path tracks close to the category norm until roughly 15 years before retirement. From that point, the series maintains a meaningfully higher equity allocation—about 8 percentage points more in stocks than peers—and its preference for more growth-oriented equity funds can make younger investors’ experience more economically sensitive than the stock weight alone would suggest. The 2070 portfolio illustrates this posture: American Funds New Perspectives is the largest holding, and the fund also incorporates modest exposure to more opportunistic fixed income, such as a 1% allocation to American Funds Emerging Markets Bond across the first 25 years of the glide path.

The decision to hold more stocks from 15 years preretirement through retirement reflects the multi-asset team’s research on participant savings behavior, which suggests many investors are undersaved and may need to assume more market risk to improve the odds of meeting retirement goals and avoiding longevity shortfall. Even so, the series seeks to temper that higher risk budget as retirement nears, leaning more heavily into dividend-paying equities and pairing them with generally conservative bond portfolios. That balance has helped in varied environments: In 2020, the bond sleeve provided meaningful ballast during the rapid equity selloff as rates fell, supported by an approach that avoids excessive credit risk; in 2022, when rising rates challenged more rate-sensitive fixed-income exposures, the dividend-oriented equity positioning helped cushion results.

Capital Group’s sustained investment in—and continued refinement of—its already exceptional multi-asset platform underpins our confidence in the stewardship of this series.

The series merits a High People rating. Capital Group’s target-date solutions committee, chaired by Michelle Black, provides day-to-day oversight. In January 2024, William Robbins and Raj Paramaguru joined the committee and were added to the manager roster of this series. Robbins—an experienced equity manager—brings seasoned portfolio-construction expertise shaped by his work with Capital Group’s private clients and now chairs the solutions management committee overseeing the firm’s multi-asset fund-of-funds lineup, succeeding Brad Vogt. Paramaguru, chair of the custom solutions committee, has been a long-running contributor to the firm’s retirement research. Both appointments strengthen an already top-tier oversight group.

Importantly, Capital Group has continued to invest in the team’s supporting resources. Since 2020, the multi-asset research group has expanded to 17 members from three, with additional analysts expected to join in 2026. That growth materially increases the depth and range of research the committee can conduct, improving its ability to validate assumptions and refine portfolio decisions.

The strength of the underlying lineup further reinforces this series. Roughly 90% of series assets are invested in underlying funds that carry Morningstar Analyst Medalist Ratings. Capital Group’s scale supports large, specialized analyst teams across the underlying strategies; for example, each of the firm’s four subsidiaries (three equity and one fixed income) employs 50-plus analysts with substantial industry experience.

Capital Group stands out from the pack as it enhances capabilities around strong core competencies. It earns a High Parent rating.

Since 1931, Capital Group, parent of American Funds, has thoughtfully built out capabilities to become one of the world’s largest asset managers, managing more than USD 3 trillion dollars. Building on the success of its long-term-oriented, multiple-manager system for global equities, the firm has developed robust fixed-income and multi-asset units, each managing more than USD 500 billion. In January 2026, as part of its periodic review of its now five distinct research organizations, Capital Group implemented changes to its equity investment subsidiaries. This exercise resulted in most equity strategies having at least one portfolio manager change, but according to the firm, it better balances each of Capital Group’s three equity groups in terms of investment breadth and helps the firm better align leadership opportunities across the groups. These kinds of shifts have occurred before, with the last coming in 2018.

Capital Group has also turned its attention to some modern opportunities. To address public/private market convergence trends, it launched in April 2025 two semiliquid funds with private market giant KKR. In keeping with its signature portfolio management approach, it splits those funds into multiple sleeves, which are managed independently by distinct managers at each firm. Capital Group plans to deepen this relationship with target-date and model portfolios, as well as public/private equity funds. On the other end of the spectrum, although the firm is firmly dedicated to active management, it has also acknowledged investor preference for passive investing and has thus partnered with indexing stalwarts Vanguard, BlackRock, and Schwab on active/passive models. Capital Group’s proven investment prowess, strong reputation among investors, and scale mean it can be selective with its partnerships.

In addressing another recent trend, since early 2022, the firm has launched more than 25 active exchange-traded funds globally, most of which are distinct, but several are similar to some of its legacy American Funds mutual funds. Unlike some of its peers, though, it has not filed for SEC exemptive relief to offer ETFs as a share class.

That’s a lot of change for such a storied and sizable firm, but Capital Group has a long history of serving investors well.

Long-term results remain a clear differentiator.

The series’ lowest-cost share class landed in the top decile for the trailing 10 years through December 2025 across every Morningstar target-date category, with several vintages outperforming more than 99% of peers over the same period. Those results reflect a strong combination of underlying security selection, bond sleeves that have typically provided ballast across market shocks, and a glide path that sensibly prioritizes capital appreciation early while placing greater emphasis on capital preservation as retirement nears.

Performance has also been resilient over intermediate horizons. Over the trailing five years, the series’ cheapest share classes have delivered broadly strong absolute and risk-adjusted outcomes. A majority of vintages also surpassed their respective S&P target-date indexes on both absolute and risk-adjusted measures, indicating the series has generated value beyond what would be expected from baseline category exposures alone.

Still, outcomes can vary across vintages because the equity sleeve gradually shifts from growth-oriented exposure toward more value and income as the target date approaches. When style leadership is pronounced, that design can widen dispersion across the lineup. In periods when growth lags value, the further-dated, more growth-tilted portfolios may trail benchmarks and the average peer, while vintages closer to retirement are better positioned to benefit as value-driven exposure takes the lead. Even with these style-driven swings, every vintage has outpaced the average peer over the trailing three years.

American Funds 2010 Trgt Date Ret Inc R6's Prospectus Adjusted Expense Ratio is 0.28% per year. It places it in the second-cheapest quintile of the Morningstar US Fund Target-Date 2000-2010 Category, where the median fee is 0.42% per year. This cost positioning translates into a Medalist Rating Price Score of 1.37, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.