American Funds Inflation Linked Bond Fund®

American Funds®

Share Class A

Bond 
 fund 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 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: 12/14/12
  • Expense ratio:* 0.72%
  • Investment expenses paid annually:† $7.20 for a $1,000 balance
  • Ticker symbol: BFIAX
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
fund holdings

*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

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. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. 

HistReturn
Average annual total returns through 6/30/19
  Latest10 years Latest5 years Latest3 years Latestyear
At net asset value 0.95% §§ 1.73% 1.94% 4.79%
At maximum offering price
(Class A shares, with 2.50% maximum sales charge)
0.55% §§ 1.22% 1.09% 2.15%
 

 

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.

§§ Since the investment option’s inception on 12/14/2012.

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.

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 the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s summary prospectus and 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.