American Funds Inflation Linked Bond FundŽ
Bond
Overview
Inflation Linked Bond Fund may be appropriate for investors:
- Seeking to protect their purchasing power from the impact of inflation
- Looking for a diversified focus that includes inflation-linked bonds issued by the U.S. Treasury and by non-U.S. governments, as well as certain floating-rate corporate issues.
Objective
The fund's investment objective is to provide inflation protection and income consistent with investment in inflation linked securities.
Manager
The fund is managed by Capital Research and Management Company, one of the nation’s oldest, largest investment management firms. Since 1931, Capital Research has invested with a long-term focus based on thorough research and attention to risk.
Fund information
- Began operations: 12/14/12
- Net and gross expense ratios:* 0.69% / 0.69%
- Investment expenses paid annually:† $6.90 for a $1,000 balance
- Ticker symbol: BFIAX
*Fund expenses are as of each fund’s prospectus. Please see the fund’s most recent prospectus for details.
†You can estimate the investment expenses you’re paying annually by multiplying your balance in the fund by the expense ratio.
Investments
Inflation-linked bonds issued by U.S. and non-U.S. governments, as well as certain floating-rate corporate issues. The fund will invest primarily in debt securities with quality ratings of Aa3 or better or AA- or better at time of purchase (or unrated but determined to be of comparable quality by the fund's investment adviser). At least 80% of the fund's assets will be invested in inflation-linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Further, at least 80% of the fund's assets will be invested in securities guaranteed or sponsored by the U.S. government.
Where the fund was invested
(as of 9/30/24; percentage of net assets; holdings are subject to change)
*Cash and equivalents includes short-term securities, accrued income and other assets less liabilities. 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.
Past results
The bar graph below shows the fund’s annual results and illustrates the fund’s fluctuations over the past 10 years. (The percentages are shown at net asset value, updated annually as of 12/31. If the results reflected deduction of the maximum sales charge of 2.50%, they would have been lower.)
Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown here. For more current information and month-end results, click here. Share price and return will vary, so you may lose money. Investing for short periods makes losses more likely.
Average annual total returns through 9/30/24
| Latest10 years | Latest5 years | Latest3 years | Latestyear | |
|---|---|---|---|---|
| At net asset value | 2.23% | 2.37% | -1.76% | 9.10% |
| At maximum offering price (Class A shares, with 2.50% maximum sales charge) |
1.97% | 1.86% | -2.59% | 6.33% |
Investment results reflect the deduction of applicable fees and expenses and the reinvestment of all distributions. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund.
In applying any particular asset allocation model to your own individual situation, you should consider your other assets, income and investments. For example, in addition to your retirement plan investments, you should consider any investments (including those in an Individual Retirement Account) and savings accounts.
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.
Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer’s creditworthiness.
While not directly correlated to changes in interest rates, the values of inflation linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.
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.
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.
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 your plan’s financial professional or downloaded and should be read carefully before investing. You can find a link to the prospectus at the top of the page.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
Return to top