The Bond Fund of AmericaSM
American Funds®
Bond fund
Overview
The Bond Fund of America may be appropriate for:
- Individuals who seek a diversified approach to fixed-income investing through a bond fund with a proven track record
- Income-oriented investors who want a solid core holding for their financial programs
- Investors seeking a well-diversified bond fund to balance their overall portfolios
Objective
Seeks to provide as high a level of current income as is consistent with preservation of capital.
Manager
The fund is managed by Capital Research and Management Company, one of the nation's oldest, largest and most respected 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: Expense ratio:* Investment expenses paid annually:† |
5/28/74 0.67% $6.70 for a $1,000 balance |
 |
Newspaper symbol: Ticker symbol: |
BondA ABNDX |
Stock holdings, if any, may include convertible securities.
*Fund expenses are for the 12 months ended 9/30/09. 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
The fund generally invests at least 80% of its assets in bonds, including corporate bonds, U.S. government securities and money market instruments. Normally, at least 60% of its assets will be invested in securities rated A or better at time of purchase. The fund may also invest significantly (up to 40% of assets) in other debt obligations including lower rated bonds. Up to 25% of assets may be invested in fixed-income securities of companies and government entities outside the United States. Typically, the fund will be invested in intermediate- to long-term securities.
Where the fund was invested
(as of 9/30/09; percentage of net assets; holdings are subject to change)
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 3.75%, 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 make losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity.
Average annual total returns through 9/30/09
| Latest 10 years |
Latest 5 years |
Latest 3 years |
Latest year |
|
|---|---|---|---|---|
| At net asset value | 4.93% | 2.60% | 1.63% | 8.40% |
| At maximum offering price (Class A shares, with 3.75% maximum sales charge) |
4.53% | 1.82% | 0.34% | 4.33% |
Investment results reflect the deduction of applicable fees and expenses and the reinvestment of all distributions. The fund's investment adviser waived a portion of its management fees from 9/1/04 through 12/31/08. Results shown reflect the waiver, without which the results would have been lower. Please see the fund's most recent prospectus for details.
The maximum sales charge was 4.75% prior to January 10, 2000.
Important information
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.
Investments made outside the United States involve special risks, such as currency fluctuations, political instability, differing securities regulations and periods of illiquidity.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 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 are generally issued by independent rating agencies and are designed to provide an indication of an issuer’s creditworthiness. Please see the fund’s most recent statement of additional information for details.
Fund results and expense ratio information listed above apply to Class A shares only. The results and expense ratio information for the investments in your plan may differ.
SIMPLE IRA and SEP plans only:
Additional share class options are available without an up-front sales charge. There is no sales charge on Class A shares for plans with over $1 million invested in American Funds. Class B shares have higher expenses than Class A shares and a contingent deferred sales charge (CDSC) (up to 5%) if shares are sold within the first six years of purchase. Class B shares convert to Class A shares in the month of the eighth anniversary of purchase. Class C shares have higher expenses than Class A shares and a 1% CDSC if shares are sold within the first year of purchase. Class C shares convert to Class F-1 shares in the month of the 10th anniversary of purchase. Class F-1 shares have expenses similar to Class A share expenses, and carry an annual asset-based fee that is charged by participating broker-dealers. Your financial professional can help you decide which option is best for you.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund's prospectus, which can be obtained from your 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.
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