Fund Evaluator:

American Funds Preservation Port 529-A Overview

American Funds Preservation Port 529-A (CPPAX) is an actively managed Taxable Bond Short-Term Bond fund. Capital Group launched the fund in 2012.

The investment seeks to provide current income, consistent with preservation of capital. The fund invests in a mix of American Funds fixed income funds. It will principally invest in funds that seek current income through investments in bonds or in other fixed income instruments. The underlying funds may hold securities issued and guaranteed by the U.S. government, securities issued by federal agencies and instrumentalities and securities backed by mortgages or other assets. The investment adviser anticipates that exposure to mortgage-backed securities and asset-backed securities may help the fund generate current income.

About American Funds Preservation Port 529-A (CPPAX)

There are 7 members of the management team with an average tenure of 7.47 years: Wesley Phoa (2012), Michelle Black (2020), Brittain Ezzes (2024), Damien McCann (2025), Samir Mathur (2020), John Queen (2020), Andrew Suzman (2012). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US Govt/Credit A+ 1-5Y TR USD index with a weighting of 100%. American Funds Preservation Port 529-A has 3 securities in its portfolio. The top 10 holdings constitute 100.0% 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 Preservation Port 529-A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. American Funds Preservation Port 529-A has 4.4% 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 92.1% (87.8% domestic bond, 4.4% foreign bond and 0.0% convertible bond). American Funds Preservation Port 529-A has 7.9% of the portfolio in cash.

Assets Under Management

The fund has $189 million in total assets, which is below the $904 million average for the Short-Term 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.

CPPAX 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 Preservation Port 529-A expense ratio is above average compared to funds in the Short-Term Bond category. American Funds Preservation Port 529-A has an expense ratio of 0.63%, which is 5% lower than its category average, making the fund expense ratio grade a C. 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 Preservation Port 529-A has a portfolio turnover rate of 9%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 135% for the Short-Term Bond category.

Recently, in the month of July 2026, American Funds Preservation Port 529-A returned -0.3%, which earned it a grade of F, as the Short-Term Bond category had an average return of -0.0%. 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 Preservation Port 529-A has a trailing yield of 3.84%, which is below the 4.16% 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 Preservation Port 529-A Grades

Year to date, the fund has returned 0.1%, 0.8 percentage points worse than the category, which translates into a grade of F. The fund has returned 2.6% over the past year (grade of F), 4.2% over the past three years (grade of F) and 1.3% per year over the past five years (grade of F) and 1.6% per year over the past 10 years (grade of F).

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