Fund Evaluator:

American Funds Bond Fund of Amer A Overview

American Funds Bond Fund of Amer A (ABNDX) is an actively managed Taxable Bond Intermediate Core Bond fund. Capital Group launched the fund in 1974.

The investment seeks to provide as high a level of current income as is consistent with the preservation of capital. The fund invests at least 80% of its assets in bonds and other debt securities, which may be represented by derivatives. It invests at least 60% of its assets in debt securities rated A3 or better or A- or better by Nationally Recognized Statistical Ratings 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, and in U.S. government securities, money market instruments, cash or cash equivalents.

About American Funds Bond Fund of Amer A (ABNDX)

There are 5 members of the management team with an average tenure of 8.74 years: Fergus MacDonald (2015), Pramod Atluri (2016), Chit Purani (2023), David Hoag (2009), John Queen (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. American Funds Bond Fund of Amer A has 5673 securities in its portfolio. The top 10 holdings constitute 11.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

American Funds Bond Fund of Amer A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. American Funds Bond Fund of Amer A has 10.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 94.8% (84.7% domestic bond, 10.0% foreign bond and 0.0% convertible bond). American Funds Bond Fund of Amer A has 5.2% of the portfolio in cash.

Assets Under Management

The fund has $26 billion in total assets, which is above the $3 billion average for the Intermediate Core Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ABNDX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Funds Bond Fund of Amer A expense ratio is average compared to funds in the Intermediate Core Bond category. American Funds Bond Fund of Amer A has an expense ratio of 0.59%, which is 4% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. American Funds Bond Fund of Amer A has a portfolio turnover rate of 90%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 151% for the Intermediate Core Bond category.

Recently, in the month of July 2026, American Funds Bond Fund of Amer A returned -1.3%, which earned it a grade of C, as the Intermediate Core Bond category had an average return of -1.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

American Funds Bond Fund of Amer A has a trailing yield of 4.20%, which is above the 4.04% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

American Funds Bond Fund of Amer A Grades

Year to date, the fund has returned -1.0%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 2.2% over the past year (grade of D), 3.5% over the past three years (grade of D) and -0.5% per year over the past five years (grade of C) and 1.5% per year over the past 10 years (grade of B).

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