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Investments / Capital Group Active-Passive Tax-Exempt Preservation Model
 

Capital Group Active-Passive Tax-Exempt Preservation Model

Capital Group Active-Passive Tax-Exempt Preservation Model Composite
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Summary
 

Capital Group Active-Passive Tax-Exempt Preservation Model

Capital Group Active-Passive Tax-Exempt Preservation Model Composite
tooltip: shareClassModels definition not found.

Summary

Offers exposure to a mix of fixed-income securities focused on preservation of principal and seeks to provide investors a source of some tax-exempt current income.

  • Portfolio Solutions Committee Members 7
  • WAERMP_WAERG
    Weighted Average Expense Ratio (%) 0.23

Underlying Funds

Tax-exempt
74%
Limited Term Tax-Exempt Bond Fund of America®40%
Capital Group Short Duration Municipal Income ETF34%
Passive ETFs
26%
iShares Short-Term National Muni Bond ETF14%
State Street® SPDR® Nuveen ICE Short Term Municipal Bond ETF12%
As of 12/09/2025 (updated daily).
MODEL HISTORICAL ALLOCATIONS
assetMix, UNDFUNDHAFMP

Asset Mix

U.S. Bonds
97.5%
Non-U.S. Bonds
0.0%
assetMixCE
Cash Equivalents
2.5%
As of 11/30/2025 (updated monthly)

Description

Objective
Seeks preservation of capital primarily and secondarily current income that is exempt from regular federal income tax through a diversified portfolio of high-quality, active and passive, tax-exempt, fixed-income securities.
Distinguishing Characteristics
Pursues its investment objectives by investing in a mix of American Funds and passive third-party ETFs in different combinations and weightings.
Types of Investments
The underlying funds seek current income, consistent with the preservation of capital, through tax-exempt bond investments.

Facts

ID
Model Composite Inception
10/31/2023
Companies/Issuers
1371
Holdings are as of 11/30/2025 (updated monthly).
Active/Passive
74% / 26%
RSG_YTD, RSG_1YR, RSGA_3YR, RSGA_5YR, RSGA_10YR, RSGA_LT, RSNF_YTD, RSNF_1YR, RSNFA_3YR, RSNFA_5YR, RSNFA_10YR, RSNFA_LT

Returns

  • Month-End Returns as of 11/30/2025
  • Quarter-End Returns as of 09/30/2025
    • Read important investment disclosures
    • ●Composite Gross
    • ●Composite Net
    • ●Index
    Returns table
    STRATEGYYear-to-date1 YearSince inception

    Index data refers to the Bloomberg Municipal Bond 1-7 Year Blend Index.tooltip: 1261 definition not found.

    Model composite inception: 10/31/2023.

    Returns greater than one year are annualized.

    Valuation

    Price/ Book tooltip: Price-to-book ratio compares a stock's market value to the value of total assets less total liabilities (book value). Adjusted for stock splits. Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund. Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting. Price/ Cash Flow tooltip: Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund/model. Price/ Earnings tooltip: Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.
    Model
    		———
    Bloomberg Municipal Bond 1-7 Year Blend Index tooltip: 1261 definition not found.
    		———
    Model as of —. Index as of —.

    Portfolio Solutions Committee

    • Years of Experience with Capital Group
    • Years of Experience with Investment Industry
    Michelle Black
    23
    30
    Brittain Ezzes
    3
    27
    Samir Mathur
    12
    32
    Damien McCann
    25
    Wesley Phoa
    26
    32
    John Queen
    23
    35
    Andrew Suzman
    31

    A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

    Portfolio managers as of 12/23/2025. Portfolio managers' years of experience are as of the previous calendar year end.

    Risk

    Maturity Breakdown

    Read important investment disclosures

    0-4.9 Years
    		43.5%
    5-9.9 Years
    		17.6%
    10-19.9 Years
    		12.6%
    20-29.9 Years
    		21.0%
    30+ Years
    		3.5%
    % of net assets as of 09/30/2025 (updated quarterly)

    qualitySummary
    Quality Summary

    Read important investment disclosures

    AAA/Aaa
    		17.6%
    AA/Aa
    		52.0%
    A
    		19.9%
    BBB/Baa
    		3.5%
    BB/Ba
    		1.0%
    B
    		0.0%
    Unrated
    		6.0%
    % of net assets as of 11/30/2025 (updated monthly)
    TTLHLD

    Holdings

    Total Bond Holdings

    Municipal securities
    		100.0%
    Corporate bonds & notes
    		0.0%
    Asset-backed obligations
    		0.0%
    Mortgage-backed obligations
    		0.0%
    Non-U.S. government/agency securities
    		0.0%
    Other bonds & notes
    		0.0%
    U.S. government & government agency bonds & notes
    		0.0%
    % of net assets as of 09/30/2025 (updated quarterly).

    Go to the underlying fund pages to see detailed holdings information

    Geographic Breakdown

    Regions
    |
    Top Countries
     
    United States
    		97.5%
    ALLCTRY_CECTRY
    Cash & equivalents 1
    		2.5%
    % of net assets as of 11/30/2025 (updated monthly)

    Expenses

    Weighted Average Expense Ratio

    WAERMP_WAERG
    Capital Group Active-Passive Tax-Exempt Preservation Model
    		0.23
    WAERLC_AER
    Lipper Category Weighted Average
    		0.25
    Model as of the underlying funds' most recent prospectuses. Lipper Category as of 09/30/2025 (updated quarterly). The Lipper averages for the underlying funds are LTEFX, CGSM, SUB and SHM.

    Resources

    Literature for Capital Group Active-Passive Tax-Exempt Preservation Model
    All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
    Totals may not reconcile due to rounding.
    1
    Includes cash, short-term securities, other assets less liabilities, accruals, derivatives and forwards. It may also include investments in money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public.
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