The fund’s investment objective is to provide current income, consistent with preservation of capital.
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, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of the fund. You may qualify for a Class A sales charge discount if you and your family invest, or agree to invest in the future, at least $500,000 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 85 of the prospectus and on page 109 of the fund’s statement of additional information, and in the sales charge waiver appendix to the prospectus.
Shareholder Fees - American Funds Preservation Portfolio |
Class A |
Class 529-A |
Class ABLE-A |
Class C |
Class 529-C |
Class 529-E |
Class T |
Class 529-T |
Class F-1 |
Class F-2 |
Class F-3 |
Class 529-F-1 |
Class 529-F-2 |
Class 529-F-3 |
Class ABLE-F-2 |
Class R-1 |
Class R-2 |
Class R-3 |
Class R-4 |
Class R-5 |
Class R-6 |
Class R-2E |
Class R-5E |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Maximum sales charge (load) imposed on purchases (as a percentage of offering price) | 2.50% | 2.50% | 2.50% | none | none | none | 2.50% | 2.50% | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | |||
| Maximum deferred sales charge (load) (as a percentage of the amount redeemed) | 0.75% | [1] | 1.00% | [1] | 1.00% | [1] | 1.00% | 1.00% | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none |
| Maximum sales charge (load) imposed on reinvested dividends | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | |||
| Redemption or exchange fees | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | |||
| [1] | A contingent deferred sales charge of 0.75% for Class A shares and 1.00% for Class 529-A shares applies on certain redemptions made within 18 months following purchases of $500,000 or more for Class A and $1 million or more for Class 529-A and Class ABLE-A 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. |
Annual Fund Operating Expenses - American Funds Preservation Portfolio |
Class A |
Class C |
Class T |
Class F-1 |
Class F-2 |
Class F-3 |
Class 529-A |
Class 529-C |
Class 529-E |
Class 529-T |
Class 529-F-1 |
Class 529-F-2 |
Class 529-F-3 |
Class ABLE-A |
Class ABLE-F-2 |
Class R-1 |
Class R-2 |
Class R-2E |
Class R-3 |
Class R-4 |
Class R-5E |
Class R-5 |
Class R-6 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Management fees | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | none | |
| Distribution and/or service (12b-1) fees | 0.30% | 1.00% | 0.25% | 0.25% | none | none | 0.24% | 1.00% | 0.50% | 0.25% | 0.25% | none | none | 0.21% | none | 1.00% | 0.75% | 0.60% | 0.50% | 0.25% | none | none | none | |
| Other expenses | [1] | 0.08% | 0.08% | 0.07% | 0.14% | 0.12% | 0.01% | 0.14% | 0.14% | 0.10% | 0.13% | 0.20% | 0.12% | 0.07% | 0.10% | 0.10% | 0.12% | 0.35% | 0.23% | 0.15% | 0.10% | 0.16% | 0.06% | 0.01% |
| Acquired (underlying) fund fees and expenses | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% | |
| Total annual fund operating expenses | 0.64% | 1.34% | 0.58% | 0.65% | 0.38% | 0.27% | 0.64% | 1.40% | 0.86% | 0.64% | 0.71% | 0.38% | 0.33% | 0.57% | 0.36% | 1.38% | 1.36% | 1.09% | 0.91% | 0.61% | 0.42% | 0.32% | 0.27% | |
| Fee waiver | [2] | 0.06% | 0.06% | |||||||||||||||||||||
| Total annual fund operating expenses after fee waiver | 0.86% | 0.64% | 0.71% | 0.38% | 0.33% | 0.51% | 0.30% | |||||||||||||||||
| [1] | Restated to reflect current fees. |
| [2] | Virginia529, as program administrator of ABLEAmerica, is currently waiving the fee owed to it as compensation for its oversight and administration of ABLEAmerica. This waiver will be in effect through at least January 1, 2024. Subject to the terms of its contractual arrangement with the investment adviser, Virginia529 may elect to extend, modify or terminate the waiver at that time. |
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 $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. You may be required to pay brokerage commissions on your purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of the fund, which are not reflected in the example.
Expense Example - American Funds Preservation Portfolio - USD ($) |
Class A |
Class C |
Class T |
Class F-1 |
Class F-2 |
Class F-3 |
Class 529-A |
Class 529-C |
Class 529-E |
Class 529-T |
Class 529-F-1 |
Class 529-F-2 |
Class 529-F-3 |
Class ABLE-A |
Class ABLE-F-2 |
Class R-1 |
Class R-2 |
Class R-2E |
Class R-3 |
Class R-4 |
Class R-5E |
Class R-5 |
Class R-6 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | $ 314 | $ 236 | $ 308 | $ 66 | $ 39 | $ 28 | $ 314 | $ 243 | $ 88 | $ 314 | $ 73 | $ 39 | $ 34 | $ 301 | $ 31 | $ 140 | $ 138 | $ 111 | $ 93 | $ 62 | $ 43 | $ 33 | $ 28 |
| 3 years | 450 | 425 | 431 | 208 | 122 | 87 | 450 | 443 | 274 | 450 | 227 | 122 | 106 | 422 | 110 | 437 | 431 | 347 | 290 | 195 | 135 | 103 | 87 |
| 5 years | 598 | 734 | 566 | 362 | 213 | 152 | 598 | 766 | 477 | 598 | 395 | 213 | 185 | 555 | 196 | 755 | 745 | 601 | 504 | 340 | 235 | 180 | 152 |
| 10 years | $ 1,028 | $ 1,420 | $ 958 | $ 810 | $ 480 | $ 343 | $ 1,028 | $ 1,192 | $ 1,061 | $ 1,028 | $ 883 | $ 480 | $ 418 | $ 940 | $ 450 | $ 1,657 | $ 1,635 | $ 1,329 | $ 1,120 | $ 762 | $ 530 | $ 406 | $ 343 |
Expense Example No Redemption - American Funds Preservation Portfolio - USD ($) |
Class C |
Class 529-C |
|---|---|---|
| 1 year | $ 136 | $ 143 |
| 3 years | 425 | 443 |
| 5 years | 734 | 766 |
| 10 years | $ 1,420 | $ 1,192 |
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.
The fund will attempt to achieve its investment objective by investing in a mix of American Funds fixed income funds. The fund will principally invest in funds that seek current income through investments in bonds or in other fixed income instruments.
When determining in which bond funds to invest, the investment adviser will predominately seek exposure to higher quality bonds (rated A- or better or A3 or better 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) with intermediate to short-term durations. The fund may, however, invest in underlying funds with exposure to lower quality, higher yielding securities rated BBB+ or below and Baa1 or below (including those rated BB+ or below and Ba1 or below) or unrated but determined by the fund’s investment adviser to be of equivalent quality, and to bonds with longer durations.
The underlying funds may 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. The investment adviser anticipates that exposure to mortgage-backed securities and asset-backed securities may help the fund generate current income. The underlying funds may also invest in the debt securities of governments, agencies, corporations and other entities domiciled outside the United States.
The fund’s investment adviser seeks to create combinations of underlying funds that complement each other with a goal of achieving the fund’s investment objective of providing current income, consistent with preservation of capital. In making this determination, the fund’s investment adviser considers the historical volatility and returns of the underlying funds and how various combinations would have behaved in past market environments. It also considers, among other topics, current market conditions and the investment positions of the underlying funds.
The fund’s investment adviser periodically reviews the investment strategies and asset mix of the underlying funds. The investment adviser will also consider whether overall market conditions would favor a change in the exposure of the fund to various types of bonds or geographic regions. Based on these considerations, the investment adviser may make adjustments to underlying fund holdings by adjusting the percentage of individual underlying funds within the fund, or adding or removing underlying funds. 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.
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.
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 or companies; 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 financial condition or credit rating, 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 quality of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Also, when interest rates rise, issuers are less likely to refinance existing debt securities, causing the average life of such securities to extend. 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. Changes in actual or perceived creditworthiness may occur quickly. A downgrade or default affecting any of the underlying funds’ securities could cause the value of the underlying funds’ shares to decrease. 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 assessing credit and default risks.
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. U.S. government securities are subject to market risk, interest rate risk and credit risk.
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.
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 or difficult to determine, 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 to try to limit losses, or may be forced to sell at a loss.
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 cause the underlying fund to lose significantly more than 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. Derivatives are also subject to operational risk (such as documentation issues, settlement issues and systems failures) and legal risk (such as insufficient documentation, insufficient capacity or authority of a counterparty, and issues with the legality or enforceability of a contract).
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, sanctions, 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 regulatory, legal, accounting, auditing, financial reporting and recordkeeping 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, which could impact the liquidity of the fund’s portfolio. 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.
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. The Lipper Short-Intermediate Investment Grade Debt Funds Index includes funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Prior to October 30, 2020, certain fees, such as 12b-1 fees, were not charged on Class 529-F-1 shares. If these expenses had been deducted, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.
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.
Highest/Lowest quarterly results during this period were:
Highest 2.90% (quarter ended March 31, 2020)
Lowest -1.37% (quarter ended June 30, 2013)
The fund's total return for the nine months ended September 30, 2022, was -6.97%.
Average Annual Returns - American Funds Preservation Portfolio |
Average Annual Returns, 1 Year |
Average Annual Returns, 5 Years |
Average Annual Returns, Since Inception |
Average Annual Returns, Inception Date |
|---|---|---|---|---|
| Class F-2 | (0.38%) | 2.42% | 1.79% | May 18, 2012 |
| Class A | (3.06%) | 1.64% | 1.25% | May 18, 2012 |
| Class C | (2.30%) | 1.45% | 0.93% | May 18, 2012 |
| Class F-1 | (0.64%) | 2.15% | 1.53% | May 18, 2012 |
| Class F-3 | (0.27%) | 2.53% | Jan. 27, 2017 | |
| Class 529-A | (3.06%) | 1.66% | 1.23% | May 18, 2012 |
| Class 529-C | (2.33%) | 1.38% | 1.10% | May 18, 2012 |
| Class 529-E | (0.85%) | 1.92% | 1.26% | May 18, 2012 |
| Class 529-F-1 | (0.45%) | 2.40% | 1.73% | May 18, 2012 |
| Class 529-F-2 | (0.39%) | 0.11% | Oct. 30, 2020 | |
| Class 529-F-3 | (0.34%) | 0.16% | Oct. 30, 2020 | |
| Class ABLE-A | (2.85%) | 2.34% | Jul. 13, 2018 | |
| Class ABLE-F-2 | 0.05% | 0.50% | Oct. 30, 2020 | |
| Class R-1 | (1.43%) | 1.37% | 0.79% | May 18, 2012 |
| Class R-2 | (1.32%) | 1.43% | 0.79% | May 18, 2012 |
| Class R-2E | (1.06%) | 1.70% | 1.37% | Aug. 29, 2014 |
| Class R-3 | (0.90%) | 1.88% | 1.23% | May 18, 2012 |
| Class R-4 | (0.60%) | 2.18% | 1.56% | May 18, 2012 |
| Class R-5E | (0.42%) | 2.42% | 2.18% | Nov. 20, 2015 |
| Class R-5 | (0.32%) | 2.47% | 1.83% | May 18, 2012 |
| Class R-6 | (0.27%) | 2.52% | 1.87% | May 18, 2012 |
| After Taxes on Distributions | Class F-2 | (0.84%) | 1.66% | 1.11% | |
| After Taxes on Distributions and Sale of Fund Shares | Class F-2 | (0.20%) | 1.53% | 1.07% | |
| Bloomberg 1-5 Year U.S. Government/Credit A+ Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) | (1.09%) | 2.08% | 1.58% | May 18, 2012 |
| Lipper Short-Intermediate Investment Grade Debt Funds Index (reflects no deductions for sales charges, account fees or U.S. federal income taxes) | (0.40%) | 2.78% | 2.24% | May 18, 2012 |
After-tax returns are shown only for Class F-2 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, individual retirement account (IRA) or 529 college savings plan.