2022 year-end distributions
September 14, 2022
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Capital Gain Distribution
Capital Gain Distributions
The anticipated long-term and short-term capital gain distributions for 2022 are listed below. The actual distribution amounts will be based on gains and losses realized through October 31 (or later for certain funds). Estimates on a per-share basis will be available by December. The funds' long-term approach to investing means that the capital gains realized in a particular year can be the result of an investment held over an extended period of time. The amount of capital gain distributions may vary year over year since the distributions are based on net capital gains realized each year.
Read our Capital gains FAQ to learn about capital gain distributions and how they affect your account.
* As of July 31, 2022
1Short-term capital gains are treated as ordinary income for tax purposes.
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Dividends
Qualified dividends
Funds that invest in stocks of U.S. corporations and many of those based outside the U.S. pay dividends that qualify for lower tax rates. However, when a fund derives a significant portion of its income from sources such as interest, short-term capital gains and dividends from certain international corporations, a portion of its dividend does not qualify for reduced tax rates. Instead, that portion is taxed at the ordinary income rates. Funds that derive all of their income from investments in bonds, money market instruments and non-dividend-paying investments do not pay qualified dividends.
Below are preliminary 2022 estimates of the percentage range of each fund's taxable dividends that qualify for lower tax rates. The final percentages for 2022 could vary. The actual amount of qualified dividends will be reported on the 2022 Form 1099-DIV (available late January).
*The fund is not expected to pay taxable dividends in 2022.
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Return of Capital
Return of capital
A portion of the income dividends distributed by American Funds Emerging Markets Bond Fund, American Funds Multi-Sector Income Fund, American Funds Strategic Bond Fund, The Bond Fund of America and Capital World Bond Fund during 2022 may be classified as a return of capital. The actual amount of return of capital will be reported in Box 3 “Nondividend Distributions” of the 2022 1099-DIV (available late January).
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You could lose money by investing in American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will at any time.
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.
The value of fixed income securities may be affected by changing interest rates and changes in credit ratings of the securities.
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
Visit the SEC website for the American Funds U.S. Government Money Market Fund's most recent filings.
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American Funds Distributors, Inc., member FINRA.
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.