CFTAX — American Funds College 2024 Fund
Data updated: 2024-03-28
CFTAX — American Funds College 2024 Fund. Target Date / Glide Path Allocation · $2.82B AUM · 0.69% expense ratio. Holdings, fees, performance and SEC filings.
CFTAX Fund Overview
CFTAX — American Funds College 2024 Fund is a US mutual fund managed by American Funds College Target Date Series, categorised as Target Date / Glide Path Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: American Funds College Target Date Series
- Category: Target Date / Glide Path Allocation
- Assets under management: $2.82B
- 1-year return: 3.3%
- Ticker: CFTAX
- SEC CIK: 0001547011
- SEC series ID: S000037536
- Share class ID: C000115885
CFTAX Investment Objective and Strategy
American Funds College 2024 Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by American Funds College Target Date Series.
Investment objective
The fund will seek to achieve the following objectives to varying degrees: growth, income and preservation of capital, depending on the proximity to its target date. The target date is meant to roughly correspond to the year in which the fund beneficiary will start to withdraw funds to meet higher education expenses. The fund will increasingly emphasize income and preservation of capital by investing a greater portion of its assets in bond, equity-income and balanced funds as it approaches and passes its target date. In this way, the fund seeks to achieve an appropriate balance of total return and stability during different time periods.
Principal investment strategy
The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories such as growth funds, growth-and-income funds, equity-income funds, balanced funds and bond funds. The fund categories represent differing investment objectives. For example, growth funds seek long-term growth primarily through investing in both U.S. stocks and stocks of issuers domiciled outside the U.S. Growth-and-income funds seek long-term growth-and-income primarily through investments in stocks. Equity-income and balanced funds generally strive for income and growth through stocks and/or bond investments, while bond funds seek current income through bond investments. The fund is designed for investors who plan to attend college in, or close to, the year designated in the funds name.
The investment adviser may periodically rebalance or modify the asset mix of the funds and change the underlying fund investments. According to its current investment approach, the percentage of the fund invested in different categories will change until the fund reaches its target date. Upon reaching its target date, the fund will be principally invested in fixed-income funds and may merge into the Enrollment Fund, which will also be principally invested in fixed-income funds. The funds 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 asset types 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 funds investment objective. With respect to its fixed-income investments, the underlying funds in which the fund invests may hold debt securities with a wide range of quality and maturities. The fund may invest in underlying funds with significant exposure to bonds rated BB+ or below and Ba1 or below by Nationally Recognized Statistical Rating Organizations designated by the funds investment adviser, or unrated but determined by the funds investment adviser to be of equivalent quality. Securities rated BB+ or below and Ba1 or below are sometimes referred to as junk bonds.
Exposure to lower rated securities may help the fund achieve its objective of providing current income. 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 underlying funds may also invest in the debt securities of governments, agencies, corporations and other entities domiciled outside the United States. The following chart illustrates the investment approach of the fund by showing how its investment in the various fund categories will change over time. The allocations shown reflect the funds target allocations as of February 9, 2018. Investment approach American Funds College Target Date Series Glide Path Enrollment year 2036 2033 2030 2027 2024 2021 Enrollment Growth funds 20 15 10 0 0 0 0 Growth-and-income funds 70 55 45 40 20 10 0 Equity-income and balanced funds 0 10 10 15 20 10 0 Fixed income funds 10 20 35 45 60 80 100 Years before college The investment adviser anticipates that the fund will invest its assets within a range that deviates no more than 10% above or below the investment approach set forth above.
For example, a 20% target allocation to growth funds is not expected to be greater than 30% or less than 10%. The investment adviser will continuously monitor the fund and may make modifications to either the investment approach or the underlying fund allocations that the investment adviser believes could benefit shareholders.
CFTAX Holdings
Top 6 holdings of American Funds College 2024 Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Short Term Bond Fund Of America | 44.86% |
| Intermediate Bond Fund Of America | 26.01% |
| American Funds Mortgage (afmf) | 10.02% |
| American Mutual Fund (amf) | 8.88% |
| American Funds Strategic Bond Fund (sbf) | 5.02% |
| American Balanced Fund (ambal) | 4.94% |
CFTAX Portfolio Allocation
Asset-class allocation of American Funds College 2024 Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 99.7% |
CFTAX Performance
Total returns for CFTAX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 3.3% |
| 3 years (annualised) | -0.2% |
CFTAX Risk Information
Risk metrics for CFTAX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 5.1%
CFTAX Costs and Fees
CFTAX costs about $69 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.69%
- Gross expense ratio: 0.69%
- Portfolio turnover: 1%
- Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)
CFTAX Cashflows
Over the 12 months to 2024-01, American Funds College 2024 Fund had net outflows of $135.47M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-01 | −$52.76M |
| 2023-12 | $44.34M |
| 2023-11 | −$16.32M |
| 2023-10 | −$2.33M |
| 2023-09 | −$13.19M |
| 2023-08 | −$72.19M |
CFTAX Debt Constituents
No individual debt constituents are reported in American Funds College 2024 Fund's latest SEC N-PORT filing.
CFTAX Prospectus and SEC Filings
Official American Funds College 2024 Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-12-29
- Prospectus (485BPOS) — filed 2022-12-30
- Prospectus (485BPOS) — filed 2021-12-30
- Portfolio holdings (N-PORT) — filed 2024-03-28
- Portfolio holdings (N-PORT) — filed 2023-12-27
- Portfolio holdings (N-PORT) — filed 2023-09-28
- Annual census (N-CEN) — filed 2024-01-16
- Annual census (N-CEN) — filed 2023-01-17
Related Funds
Other Target Date / Glide Path Allocation funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.