Learn the main ways fixed income can benefit participants and how our key core bond fund, The Bond Fund of America®, has delivered in those roles:
1. As of December 31, 2019.
2. According to the most recent Statements of Additional Information, as of December 31, 2019.
3. The Capital Group companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups. Fixed income assets shown in U.S. dollars and managed by Capital Fixed Income Investors as of December 31, 2019.
Figures shown are past results for Class R-6 shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
Higher yielding, higher risk bonds can fluctuate in price more than investment-grade bonds, so investors should maintain a long-term perspective.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.
We offer a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of advisor compensation and service provider payments.
Because Class R-6 shares do not include any recordkeeping payments, expenses are lower and results are higher. Other share classes that include recordkeeping costs have higher expenses and lower results than Class R-6.
Class R-6 shares were first offered on May 1, 2009. Class R-6 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Please see each fund’s prospectus for more information on specific expenses.
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Standard & Poor’s 500 Composite Index (“Index”) is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group.
The Morningstar intermediate core bond category includes funds that invest primarily in investment-grade U.S. fixed-income issues and typically hold less than 5% in below-investment-grade exposures. Their durations typically range between 75% and 125% of the three-year average of the effective duration of the Morningstar Core Bond Index.
© 2020 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. Average life includes the impact of callable bonds; effective duration is a duration calculation for bonds that takes into account that expected cash flows will fluctuate as interest rates change; yield to maturity is the rate of return anticipated on a bond if it is held until the maturity date; yield to worst is the lowest yield that can be realized by either calling or putting on one of the available call/put dates, or holding a bond to maturity; option-adjusted spread is a yield-spread calculation used to value securities with embedded options.
Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Widely used as a measure of inflation, the CPI is computed by the U.S. Department of Labor, Bureau of Labor Statistics.
The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
There have been periods when the fund has lagged the index.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
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.