American Funds Mortgage FundŽ
Bond
Overview
American Funds Mortgage Fund may be appropriate for:
- Investors seeking current income
- Investors interested in high-quality, mortgage-related securities
- Investors seeking to preserve capital
Objective
The fund's investment objective is to provide current income and preservation of capital.
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: 11/01/10
- Net and gross expense ratios:* 0.67% / 0.62%
- Investment expenses paid annually:† $6.20 for a $1,000 balance
- Ticker symbol: MFAEX
*Fund expenses are as of the fund’s prospectus. The expense ratio does not reflect sales charges or fees charged by financial intermediaries. 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
Normally, at least 80% of the fund’s assets will be invested in mortgage-related securities guaranteed by the U.S. government, mortgage-related securities issued by government-sponsored entities but not backed by the full faith and credit of the U.S. government, and non-government mortgage-related securities rated AAA/Aaa or unrated but determined to be of equivalent quality by the fund’s investment adviser. Up to 10% of assets may be invested in high-quality, U.S. dollar-denominated mortgage-related securities of issuers outside the U.S., and up to 5% of assets may be invested in securities rated AA/Aa or A, or unrated but of equivalent quality.
Where the fund was invested
(as of 9/30/24; percentage of net assets; holdings are subject to change)
Securities held to satisfy collateral or margin requirements for certain instruments may result in negative cash percentages or assets greater than 100%
*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. Class F-1 shares were first offered on March 15, 2001 (on February 21, 2014, in funds in the American Funds Target Date Retirement Series). Class F-1 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for estimated additional annual expenses. Please see the prospectus for more information about specific expenses.
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. Unless otherwise indicated, all results are calculated at net asset value.
Average annual total returns through 9/30/24
Class F-1 Shares
| Latest10 years | Latest5 years | Latest3 years | Latestyear | |
|---|---|---|---|---|
| At net asset value | 1.43% | 0.62% | -0.98% | 11.23% |
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. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. Fund shares are not guaranteed by the U.S. government.
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.
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.
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