Fund Evaluator:
American Funds Limited Term Tx-Ex Bd C (LTXCX)
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Fund Details
American Funds Limited Term Tx-Ex Bd C Overview
American Funds Limited Term Tx-Ex Bd C (LTXCX) is an actively managed Municipal Bond Muni National Short fund. Capital Group launched the fund in 2001.
The investment seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards, and to preserve capital. The fund will invest at least 80% of its assets in, or derive at least 80% of its income from, securities that are exempt from regular federal income tax and that do not subject the investors to federal alternative minimum tax. It invests primarily in debt securities rated A- or better or A3 or better, or unrated but determined by the fund's investment adviser to be of equivalent quality. The dollar-weighted average effective maturity of the fund's portfolio is between three and 10 years.
About American Funds Limited Term Tx-Ex Bd C (LTXCX)
There are 2 members of the management team with an average tenure of 6.33 years: Mark Marinella (2019), Vikas Malhotra (2021). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg Muni Inter-Short 1-10 TR USD index with a weighting of 100%. American Funds Limited Term Tx-Ex Bd C has 1998 securities in its portfolio. The top 10 holdings constitute 4.9% 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 Limited Term Tx-Ex Bd C is part of the Fixed Income global asset class and is within the Municipal Bond fund group. American Funds Limited Term Tx-Ex Bd C has 0.1% 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 99.2% (99.1% domestic bond, 0.1% foreign bond and 0.0% convertible bond). American Funds Limited Term Tx-Ex Bd C has 0.8% of the portfolio in cash.
Assets Under Management
The fund has $8 million in total assets, which is below the $633 million average for the Muni National Short 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.
LTXCX 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 Limited Term Tx-Ex Bd C expense ratio is high compared to funds in the Muni National Short category. American Funds Limited Term Tx-Ex Bd C has an expense ratio of 1.30%, which is 125% higher than its category average, making the fund expense ratio grade a F. 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 Limited Term Tx-Ex Bd C has a portfolio turnover rate of 44%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Muni National Short category.
Recently, in the month of July 2026, American Funds Limited Term Tx-Ex Bd C returned -1.1%, which earned it a grade of F, as the Muni National Short category had an average return of -0.5%. 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 Limited Term Tx-Ex Bd C has a trailing yield of 1.91%, which is below the 2.78% 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 Limited Term Tx-Ex Bd C Grades
Year to date, the fund has returned -0.2%, 1.0 percentage points worse than the category, which translates into a grade of F. The fund has returned 2.2% over the past year (grade of F), 2.6% over the past three years (grade of F) and 0.4% per year over the past five years (grade of F) and 0.9% per year over the past 10 years (grade of F).
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LTXCX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| LTXCX Return (NAV) | -1.1% | -0.5% | 2.2% | 2.6% | 0.4% | 0.9% |
| LTXCX Grade | F | F | F | F | F | F |
| +/- Category | -0.6% | -0.6% | -0.4% | -0.6% | -1.1% | -0.6% |
| Muni National Short Avg | -0.5% | 0.1% | 2.7% | 3.2% | 1.5% | 1.5% |
| LTXCX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.1% |
LTXCX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| LTXCX Return (NAV) | -0.2% | 4.4% | 1.2% | 3.3% | -5.5% | -0.7% | 3.3% | 3.9% | 0.3% | 2.0% | -1.0% |
| LTXCX Grade | F | B | F | F | F | F | B | B | F | B | F |
| +/- Category | -1.0% | 0.4% | -1.4% | -0.6% | -2.3% | -1.1% | 0.8% | 0.5% | -0.8% | 0.1% | -0.8% |
| Muni National Short Avg | 0.8% | 4.0% | 2.6% | 3.9% | -3.2% | 0.4% | 2.4% | 3.4% | 1.2% | 1.9% | -0.1% |
| Risk Measures | |
| Standard Deviation: | 3.3% |
| Total Risk Index: | 0.27 - Low |
| Category Risk Index: | 1.61 - High |
| Category Risk Grade: | F (92% Rank) |
| Beta: | 0.56 |
| R-Squared: | 93% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 1.9% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $5927 Mil |
| Fund Total Assets: | $ 9 Mil |
| Share Class Type: | C |
| Portfolio Turnover: | 44% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 7.6 years | |||
| Average Tenure: 6.3 years | |||
| Managers (Year): Marinella Mark (2019), Malhotra Vikas (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 1998 |
| % in Top 10 Holdings: | 4.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.1% |
| Foreign Bond: | 0.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.8% |
Purchase Information
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: | www.americanfunds.com |
| Status: | Open |
| Inception Date: | March 15, 2001 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 1.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 1.00% |
Expenses and Fees | |
| Expense Ratio (%): | 1.30% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.58% |
| Share Class: | American Funds Limited Term Tx-Ex Bd A |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
