About RBKTX
The American Funds 2040 Target Date Retirement Fund Class R-2 is a target date mutual fund designed to help individuals plan and save for retirement, aiming for investors who anticipate retiring around the year 2040. The fund employs a diversified portfolio of underlying American Funds, seeking to address changing investment needs over time by adjusting its asset allocation as the target retirement date approaches. Early in its lifecycle, the fund emphasizes growth by investing more heavily in equities. As it nears and passes its 2040 target date, it systematically shifts towards greater allocations in fixed income, equity-income, and balanced funds to prioritize income and capital preservation, thereby aiming to balance growth with stability and risk management.
Managed by Capital Research and Management Company, one of the longest-standing investment firms in the U.S., the fund draws on a multi-manager system and broad exposure to domestic and international equities as well as fixed income securities. The fund’s blend offers exposure to sectors such as information technology, financials, healthcare, and consumer discretionary, reflecting its aim for long-term growth with a risk profile calibrated to its target date investors. The Class R-2 share class has an annual net expense ratio of 1.45% and reinvests all distributions to support compound returns.
Fund Family Capital Group
Category Target-Date 2040
Performance Rating Above Average
Risk Rating Below Average
Stock Exchange Nasdaq
Ticker Symbol RBKTX
Share Class Class R-2
Index S&P Target Date 2040 TR
RBKTX had a total return of 10.37% in the past year, including dividends. Since the fund's
inception, the average annual return has been 7.49%.
