American Funds Short-Term Tax-Exempt Bond Fund - A | American Funds

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RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1, 2 OR 754

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

TAX-EXEMPT BOND FUNDS

®

Purchase Restrictions: Tax-exempt funds should generally not serve as investments for tax-deferred retirement plans and accounts.

Summary

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Quality tax-exempt income while seeking preservation. Invests in high-quality, short-term municipal bonds to provide tax-exempt income while preserving capital. With a dollar-weighted average effective maturity of three years or less, it is designed to generate a slightly higher yield than tax-exempt money market funds, and provide a high degree of stability with limited exposure to interest rate volatility.
Price at NAV $9.85 as of 6/24/2022 (updated daily)
Fund Assets (millions) $2,033.6
Portfolio Managers
2
Expense Ratio
0.44%

Internal Prompt

Returns at NAV

Returns with Sales Charge

Read important investment disclosures
-5.76%
1-year return
0.18%
5-year return
0.49%
10-year return
1.39%
30-Day SEC Yield
Returns as of 5/31/22 (updated monthly). Yield as of 5/31/22 (updated monthly).

Asset Mix

U.S. Equities0.0%
Non-U.S. Equities0.0%
U.S. Bonds77.1%
Non-U.S. Bonds0.0%
Cash & Equivalents
22.9%
U.S. Equities0.0%
Non-U.S. Equities0.0%
U.S. Bonds77.1%
Non-U.S. Bonds0.0%
Cash & Equivalents
22.9%
As of 5/31/2022 (updated monthly)

Growth of 10K

Read important investment disclosures
For Class A Shares, this chart tracks a hypothetical investment with dividends reinvested through 12/31/2021.
ASTEX
Bloomberg Municipal Short 1-5 Years Index

High & Low Prices

Fund Statistics

2.1 years
Effective Duration
1.8%
Average Yield
to Maturity
2.9%
Average Coupon
% of net assets as of 3/31/2022 (updated quarterly)

Morningstar Style BoxTM— Fixed-Income

High Quality
Limited Interest-Rate Sensitivity
Morningstar data as } of 3/31/22 (updated quarterly)

Description

Fund Objective
The fund's investment objective is to provide you with current income exempt from regular federal income tax, consistent with the maturity and quality standards described in this prospectus, and to preserve capital.
Distinguishing Characteristics
This strategy invests in high-quality, short-term municipal bonds to provide tax-exempt income while preserving capital. With a dollar-weighted average effective maturity of three years or less, the strategy is designed to generate a slightly higher yield than tax-exempt money market funds. It seeks to provide a high degree of stability with limited exposure to interest rate volatility.
Types of Investments
Invests primarily in municipal bonds with quality ratings of AA- or better or Aa3 or better or unrated but determined by the fund's investment adviser to be of equivalent quality. The fund may invest up to 20% of its assets in municipal bonds in the A rating category or unrated but determined by the fund's investment adviser to be of equivalent quality.
Maturity
The dollar-weighted average maturity of the fund's portfolio is no greater than three years.
Portfolio Restrictions
May invest up to 20% of assets in securities subject to the alternative minimum tax (AMT).

Fund Facts

Fund Inception 8/07/2009
Fund Assets (millions)
As of 5/31/2022
$2,033.6
Companies/Issuers
Holdings are as of 3/31/2022 (updated quarterly).
574+
Shareholder Accounts
Shareholder accounts are as of 5/31/2022
24,661
Regular Dividends Paid
Monthly
Minimum Initial Investment $250
Capital Gains Paid
Dec
Portfolio Turnover (2021) 49%
Fiscal Year-End Jul
Prospectus Date 05/01/2022
CUSIP 02630W 10 3
Fund Number 39

Returns

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Month-End Returns as of 5/31/22

Quarter-End Returns as of 3/31/22

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Volatility & Return

Read important investment disclosures

Fixed-Income

For Class A Shares, this chart tracks the 10-year standard deviation
and 10-year annualized return of the fixed income funds
ASTEX
Bloomberg Municipal Short 1-5 Years Index
Other AF Funds
Standard Deviation as of 05/31/2022 (updated monthly) . Annualized return as of 05/31/2022 (updated monthly) .
VIEW LARGER CHART
Internal Prompt

Yield

12-month
Distribution Rates
30-day SEC Yield
Fund at NAV 0.49% N/A
Fund at MOP 0.48% 1.39%
As of 5/31/2022 (updated monthly)

Portfolio Management

Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
Aaron Applebaum 5 14 20
Mark Marinella 3 8 36
A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

Ratings & Risk

Morningstar Rating TM


Overall Morningstar RatingTM
Funds rated(210)
3-yr. Morningstar RatingTM
(210 funds rated)
5-yr. Morningstar RatingTM
(181 funds rated)
10-yr. Morningstar RatingTM
(136 funds rated)
Overall Morningstar Risk Average
HIGH
LOW
Category Muni National Short
Ratings are based on risk-adjusted returns as of 5/31/2022 (updated monthly).

Risk Measures

Fund
Standard Deviation
1.32
Sharpe Ratio
0.09
For the 10 Years ending 5/31/22 (updated monthly).
American Funds
Benchmark
Morningstar
Benchmark
Bloomberg Municipal Short 1-5 Years Index
Bloomberg Municipal TR USD
R-squared 95 78
Beta 0.82 0.29
Capture Ratio (Downside/Upside) 87/79 28/29
American Funds Benchmark for the 10 Years ending 3/31/22 (updated quarterly).
Morningstar Benchmark for the 10 Years ending 5/31/22 (updated monthly).
AAA/Aaa
26.9%
AA/Aa
39.4%
A
12.9%
BBB/Baa
1.1%
Unrated
1.3%
Cash & equivalents
18.4%
% of net assets as of 3/31/2022 (updated quarterly)

Average Life Breakdown

0-4.9 Years
74.3%
5-9.9 Years
7.3%
10-19.9 Years
--
20-29.9 Years
--
30+ Years
--
% of net assets as of 3/31/2022 (updated quarterly)

Holdings

Bonds Breakdown

Bond Details

Total bond holdings
General obligation bonds 12.3%

% of net assets as of 3/31/2022 (updated quarterly)

Top Fixed-Income Issuers

State of California General Obligation Bonds
2.0%
BLACK BELT ENERGY GAS DIST
1.3%
New York State Personal Income Tax Bonds
1.3%
Waste Management
1.0%
New York State Housing Finance Agency
1.0%
Metropolitan Transportation Authority
0.9%
Michigan State Housing Development Authority - ...
0.9%
PENNSYLVANIA HSG FIN AGY - 1982 RES
0.9%
Minnesota St Hsg Fin Agy - 1995 RES
0.9%
New York City Transitional Finance Authority
0.9%

% of net assets as of 3/31/2022 (updated quarterly)

Geographic Breakdown

Texas
11.8%
California
8.5%
New York
6.8%
Florida
4.3%
Illinois
3.2%
Pennsylvania
2.8%
Ohio
2.8%
North Carolina
2.8%
Georgia
2.3%
Michigan
2.2%
% of net assets as of 3/31/2022

Prices & Distributions

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Historical Prices Month-End

Historical Prices Year-End

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Historical Distributions as of 06/24/22

2022
Record
Date
Calculated
Date
Pay Date
Income Dividend Regular
Income Dividend Special
Cap. Gains Long-Term
Cap. Gains Short-Term
Reinvest NAV
Daily 01/31/22 02/01/22 $0.0036843 $0.00 $0.00 $0.00 $10.11
Daily 02/28/22 03/01/22 $0.0037312 $0.00 $0.00 $0.00 $10.08
Daily 03/31/22 04/01/22 $0.0042034 $0.00 $0.00 $0.00 $9.94
Daily 04/29/22 05/02/22 $0.00496 $0.00 $0.00 $0.00 $9.84
Daily 05/31/22 06/01/22 $0.0076764 $0.00 $0.00 $0.00 $9.90
2022 Year-to-Date: Dividends Subtotal: $0.02425515 Cap Gains Subtotal: $0.00
Total Distributions: $0.02425515

Fees & Expenses

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Fees

Annual Management Fees 0.20%
Other Expenses 0.09%
Service 12b-1 0.15%
As of each fund's most recent prospectus.
Internal Prompt

Expense Ratio

Gross Net
ASTEX 0.44% 0.43%
Lipper Short Municipal Debt Funds Average
0.63%
Fund as of most recent prospectus. Lipper Category as of 3/31/22 (updated quarterly).

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