Short-Term Bond Fund of America®
Bond
Overview
Short-Term Bond Fund of America may be appropriate for investors seeking:
- Higher income than from most money market securities
- Lower volatility than from intermediate- and long-term bonds
- More balance in a portfolio weighted heavily in equity or longer term investments
Objective
The fund's investment objective is to provide you with current income, consistent with the maturity and quality standards described in this prospectus, 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: 10/02/06
- Net and gross expense ratios:* 1.05% / 1.05%
- Investment expenses paid annually:† $10.50 for a $1,000 balance
- Ticker symbol: RAAEX
*The investment adviser is currently reimbursing a portion of other expenses. The reimbursement will be in effect through at least April 7, 2018. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Expense ratios are as of each fund’s prospectus.
†You can estimate the investment expenses you’re paying annually by multiplying your balance in the fund by the expense ratio.
Investments
Primarily corporate and government bonds, mortgage- and asset-backed securities and cash. The fund will primarily invest in debt securities rated AA- or better or Aa3 or better at the time of purchase (or unrated but determined to be of comparable quality by the fund's investment adviser). Up to 10% of assets can be invested in debt securities in the A rating category or unrated but determined by the fund's investment adviser to be of equivalent quality. The fund will not purchase debt securities rated BBB+ or below and Baa1 or below.
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. These results are updated annually as of 12/31. Other share class results will vary.
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
Class R-2E Shares
| Latest10 years | Latest5 years | Latest3 years | Latestyear | |
|---|---|---|---|---|
| At net asset value | 0.90% | 1.04% | 0.79% | 6.39% |
| With CDSC | 0.90% | 1.04% | 0.79% | 6.39% |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently reimbursing a portion of other expenses. Investment results reflect the reimbursement, without which the results would have been lower. The reimbursement will be in effect through at least April 7, 2018. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. See results without waivers and/or reimbursements. Read details about how waivers and/or reimbursements affect the results for each fund.
Class R-6 shares are sold without a sales charge.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 in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.
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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