American Funds Corporate Bond FundŽ
Bond
Overview
American Funds Corporate Bond Fund may be appropriate for:
- Investors seeking to boost total return and enhance current income compared to a core bond fund
- Investors seeking equity diversification, as its investment grade focus should prevent it from having a very high correlation to stocks
- Investors seeking dedicated corporate bond exposure, allowing for precise portfolio construction
Objective
The fund's investment objective is to seek to provide maximum total return consistent with capital preservation and prudent risk management.
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:* 1.41% / 1.42%
- Investment expenses paid annually:† $14.10 for a $1,000 balance
- Ticker symbol: RCBAX
*The expense ratios are estimated. 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 estimated 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
Normally, at least 80% of the fund’s assets will be invested in corporate debt securities. In addition, under normal market conditions the fund invests 100% of its assets in debt securities, including money market instruments, cash and cash equivalents, rated Baa3 or better or BBB- or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or in debt securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser at the time of purchase.
Where the fund was invested
(as of 6/30/24; 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 percentages are based on Class R-1 shares at net asset value after the share class inception date of May 15, 2002. All Class R-1 share results prior to this date, or prior to the date of first sale, are hypothetical based on Class A share results, adjusted for typical additional estimated expenses, and are calculated without a sales charge. 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 6/30/24
Class R-1 Shares
| Latest10 years | Latest5 years | Latest3 years | Latestyear | |
|---|---|---|---|---|
| At net asset value | 1.71% | -0.14% | -4.25% | 2.84% |
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-1 shares were first offered on May 15, 2002. Class R-1 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated additional expenses. Results for certain funds with an inception date after May 15, 2002, also include hypothetical returns because those funds’ Class R-1 shares sold after the funds’ date of first offering. View dates of first sale and specific expense adjustment information for Class R-1 shares.
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