The Bond Fund of America takes a true core approach that provides elements of all four roles of fixed income. It also reflects the four beliefs that we find essential to investor success: distinctive investing approach, fundamental research, a long-term view and partnership with financial advisors.
Looking for resilience when stock markets are unsettled? The Bond Fund of America has delivered strong equity diversification.
Cumulative returns (%) during the five largest equity market declines since 2009
The Bond Fund of America
Average annualized excess returns for The Bond Fund of America and passive peers (%)2
Sources: Capital Group, Bloomberg Index Services Ltd., Morningstar. As of 12/31/20. All passive peers reflects all passive bond strategies in Morningstar's Intermediate Core category.
Passive funds are not striving to outpace their benchmarks; rather, they seek to replicate the benchmark's return pattern.
¹Source Morningstar. Size of fund versus peers as of 12/31/20.
²Respective rolling period excess returns shown over strategies' respective prospectus benchmark for passive peer groups net of fees from the Morningstar Intermediate Core category. Group of all passive peers includes passive Intermediate Core category strategies. Based on monthly data for the period 1/1/09 through 12/31/20. The number of rolling periods in 3-, 5-, and 10-year annual excess return timeframes were 109, 85 and 25, respectively. On January 1, 2009, The Bond Fund of America's strategy was repositioned from core plus to core fixed income, withits prospectus and guidelines adjusted accordingly.
³Source: Morningstar. Analyst rating based on Morningstar Global Fund Report for American Funds Bond Fund of America F-2, December 2, 2020. The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s conviction in a fund’s prospects for outperformance. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/.
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The Core category contains portfolios that invest primarily in investment-grade U.S. fixed-income issues and hold less than 5% in below-investment-grade exposures. The Core-Plus category contains portfolios that invest primarily in investment-grade U.S. fixed-income issues but have greater flexibility than core offerings to hold non-core sectors such as corporate high yield, bank loan, emerging-markets debt, and non-U.S. currency exposures.
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