American Funds' The Bond Fund Of America
Bond
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
The fund's investment objective is to provide as high a level of current income as is consistent with the 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: 5/28/74
- Variable investment inception date: 2/28/12
- Expense ratio:* 1.48%
- Investment expenses paid annually:† $14.80 for a $1,000 balance
*Each expense ratio is the sum of the program charges and the operating expenses of the underlying mutual fund. The operating expense of the underlying mutual fund is for an institutional share class. The net expense ratio reflects any applicable waivers and/or reimbursements to the underlying mutual fund. The gross expense ratio does not.
†You can estimate the investment expenses you’re paying annually by multiplying your balance in the fund by the expense ratio.
Investments
Normally, the fund invests at least 80% of its assets in bonds and other debt securities, including U.S. government, corporate, and mortgage-backed securities. The majority of the fund’s investments are rated A or better (or unrated but determined by the fund’s investment adviser to be of equivalent quality) at the time of purchase. The fund’s current practice is not to invest more than 10% of its assets in debt securities rated BB or below. Up to 25% of assets may be invested in securities of issuers outside the United States. The fund invests in debt securities with a wide range of maturities.
Where the fund was invested
(as of 3/31/24; percentage of net assets; holdings are subject to change)
Past results
The bar graph below shows the investment’s annual results and illustrates the fluctuations over the past 10 years. (The percentages are shown at unit value, updated annually as of 12/31.) If the results reflected deduction of the maximum sales charge of 5.75%, they would have been lower. Variable investment results are based upon a single investment at the beginning of the period being reported and retained throughout the period.
Investments are offered through a group annuity issued by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY. The investment above is an account under the annuity that invest solely in shares of an underlying mutual fund (“variable investments”). The name of the variable investment reflects the underlying mutual fund. Results for each variable investment are stated after deduction of a variable asset charge of 1.24% for administrative, service and other fees (the “program charge”). The expense ratio for each variable investment is the sum of the program charge and the operating expense of the underlying mutual fund.
The investment does not require an up-front or deferred sales charge. Results of the variable investment prior to its inception date are hypothetical based on the underlying fund’s oldest share class without a sales charge, adjusted for typical additional expenses; results are hypothetical because the variable investment’s underlying fund was not offered in the group annuity prior to the variable investment’s inception date.
Figures shown are past results and are not predictive of future results. Current and future results may be lower or higher than those shown here. For more current information and month-end results, click here. Prices and results will vary, so you may lose money. However, assets in the Fixed Account are guaranteed by Great-West Life & Annuity Insurance Company, and payments on investments are subject to the insurer’s claims paying ability. 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.
Unit Class 2
| Average annual total returns | ||||||||
|---|---|---|---|---|---|---|---|---|
| As of month-end April 30, 2024 | As of quarter-end March 31, 2024 | |||||||
| Underlying fund inception date | Variable investment inception date | Year to date return | 10 year | 5 year | 3 year | 1 year | Variable investment lifetime | |
| At unit value | 5/28/74 | 2/28/12 | -3.57% | 0.76% | -0.02% | -3.40% | 0.15% | 0.82% |
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 American Fund.
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.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.
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, 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.
On or around July 1, 2024, American Funds Distributors, Inc. will be renamed Capital Client Group, Inc.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names are the property of their respective companies.
American Funds Distributors, Inc.
Use of this website is intended for U.S. residents only.
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