Summary
A high-quality core bond portfolio with broad diversification. The strategy has the ability to invest in every sector of the bond market and pursue multiple sources of active return, with a limited percentage of below-investment-grade holdings. This approach may help diversify equity risk in a portfolio.
Strategy Assets (millions)
$93,579.3
Portfolio Managers 5
Quarterly Fact Sheet (PDF)
Returns (Gross/Net)%
6.30 / 4.72
1-year
0.56 / -0.93
5-year
2.24 / 0.72
10-year
As of 2/28/2025 (updated monthly).
Asset Mix
U.S. Equities
0.0% |
Non-U.S. Equities
0.0% |
U.S. Bonds
89.4% |
Non-U.S. Bonds
7.3% |
Cash & Equivalents
3.3% |
As of 2/28/2025 (updated monthly)
Key Statistics
- Effective Duration (years)5.9
- Yield to maturity (Gross/Net %)4.9/3.4
- Yield to worst (Gross/Net %)4.9/3.4
- Average coupon (Gross/Net %)4.5/3.0
- Option adjusted spread (bps)54
As of 2/28/2025 (updated monthly).
Description
Objective
The strategy’s investment objective is to provide as high a level of current income as is consistent with the preservation of capital.
Distinguishing Characteristics
Taking a broadly diversified, high-quality approach, this core bond strategy has the ability to invest in every sector of the bond market and pursue multiple sources of active return, with a limited percentage of below-investment-grade holdings. This approach may help diversify equity risk in a portfolio. The strategy draws on our experience in managing U.S. core bonds since 1973 and a 90-year heritage of investing in U.S. markets.
Types of Investments
Primarily invests in corporate debt securities, U.S. and other government securities, mortgage-related securities and cash.
Holdings Outside the U.S.
May invest in fixed-income securities of corporations and government entities outside the United States.
Portfolio Restrictions
Will not invest in securities rated lower than Ba3/BB- at the time of purchase.
Maturity
Typically, the portfolio will be invested in intermediate- to long-term securities.
Strategy Facts
Composite Inception
12/31/1972
Strategy Assets (millions)
$93,579.3
As of 2/28/2025 (updated monthly).
Companies/Issuers 157+
Holdings are as of 2/28/2025 (updated monthly).
Portfolio Turnover
--
Returns
Month-End Returns as of 2/28/2025
Quarter-End Returns as of 12/31/2024
Month-End Returns as of 2/28/2025
Gross Returns
Net Returns
Bloomberg U.S. Aggregate Index
Quarter-End Returns as of 12/31/2024
Gross Returns
Net Returns
Bloomberg U.S. Aggregate Index
Portfolio Management
LEARN ABOUT THE CAPITAL SYSTEMSMYears of Experience with Capital Group
Years of Experience with Investment Industry
No Portfolio Management data available.
Risk & Volatility
Quality Summary
- Cash & Equivalents--
- U.S. Treasuries/Agencies--
- AAA/Aaa--
- AA/Aa--
- A--
- BBB/Baa--
% of net assets as of -- (updated quarterly).
Duration Exposure
% of net assets as of -- (updated quarterly).
Holdings
Sector Exposure
- Cash & Equivalents--
- Total--
% of net assets as of (updated quarterly)
Resources
Literature for Capital Group Core Bond
- Quarterly Fact Sheet (PDF) 02/25