Fund Evaluator:
American Funds Mod Gr Inc R-3 (RBACX)
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Best Performing in Moderate Allocation Over the Last Year
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Fund Details
American Funds Mod Gr Inc R-3 Overview
American Funds Mod Gr Inc R-3 (RBACX) is an actively managed Allocation Moderate Allocation fund. Capital Group launched the fund in 2012.
The investment seeks to provide current income and long-term growth of capital and income. The fund invests in a mix of American Funds in different combinations and weightings. The underlying American Funds may include growth, growth-and-income, equity-income, balanced and fixed income funds. Normally through its investments in the underlying funds, the fund will maintain at least 45% of the value of its net assets in common stocks and other equity investments and at least 25% of the value of its net assets in bonds and other debt securities (including money market instruments). The fund will have exposure to growth-oriented common stocks.
About American Funds Mod Gr Inc R-3 (RBACX)
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: S&P 500 (TR) (1970) index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. American Funds Mod Gr Inc R-3 has 14 securities in its portfolio. The top 10 holdings constitute 92.9% 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 Mod Gr Inc R-3 is part of the Allocation global asset class and is within the Allocation fund group. American Funds Mod Gr Inc R-3 has 27.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 43.8%. There is 20.5% allocated to foreign stock, and 0.4% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 29.2% (22.6% domestic bond, 6.6% foreign bond and 0.0% convertible bond). American Funds Mod Gr Inc R-3 has 5.2% of the portfolio in cash.
Assets Under Management
The fund has $173 million in total assets, which is below the $2 billion average for the Moderate Allocation 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.
RBACX 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 Mod Gr Inc R-3 expense ratio is high compared to funds in the Moderate Allocation category. American Funds Mod Gr Inc R-3 has an expense ratio of 0.98%, which is 1% 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 Mod Gr Inc R-3 has a portfolio turnover rate of 4%, indicating that holds its assets around 0.3 years. By way of comparison, the average portfolio turnover is 52% for the Moderate Allocation category.
Recently, in the month of July 2026, American Funds Mod Gr Inc R-3 returned -0.7%, which earned it a grade of D, as the Moderate Allocation category had an average return of -0.3%. 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 Mod Gr Inc R-3 has a trailing yield of 1.82%, which is below the 1.97% category average. The fund normally distributes its income quarterly 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 Mod Gr Inc R-3 Grades
Year to date, the fund has returned 7.0%, 0.6 percentage points better than the category, which translates into a grade of B. The fund has returned 14.5% over the past year (grade of B), 12.9% over the past three years (grade of B) and 7.1% per year over the past five years (grade of B) and 8.6% per year over the past 10 years (grade of C).
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RBACX 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 |
|
| RBACX Return (NAV) | -0.7% | 2.3% | 14.5% | 12.9% | 7.1% | 8.6% |
| RBACX Grade | D | C | B | B | B | C |
| +/- Category | -0.4% | 0.1% | 1.4% | 0.9% | 0.4% | 0.1% |
| Moderate Allocation Avg | -0.3% | 2.1% | 13.1% | 12.0% | 6.6% | 8.5% |
| RBACX Tax Cost Ratio | na | na | 1.6% | 1.1% | 1.2% | 1.0% |
RBACX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RBACX Return (NAV) | 7.0% | 16.6% | 10.9% | 13.5% | -13.8% | 13.5% | 12.8% | 19.1% | -4.9% | 16.3% | 5.6% |
| RBACX Grade | B | A | D | C | C | D | C | D | C | A | F |
| +/- Category | 0.6% | 3.2% | -1.3% | -0.9% | 0.2% | -0.9% | -0.1% | -0.7% | 0.2% | 2.5% | -2.1% |
| Moderate Allocation Avg | 6.4% | 13.4% | 12.2% | 14.3% | -14.0% | 14.4% | 12.9% | 19.8% | -5.1% | 13.8% | 7.7% |
| Risk Measures | |
| Standard Deviation: | 9.2% |
| Total Risk Index: | 0.75 - Below Average |
| Category Risk Index: | 0.99 - Average |
| Category Risk Grade: | C (45% Rank) |
| Beta: | 0.96 |
| R-Squared: | 96% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 1.8% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $17259 Mil |
| Fund Total Assets: | $ 173 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 4% |
Management Team
| Number of Managers: 7 | |||
| Longest Tenure: 14.2 years | |||
| Average Tenure: 7.5 years | |||
| Managers (Year): Phoa Wesley (2012), Suzman Andrew (2012), Mathur Samir (2020), Queen John (2020), Black Michelle (2020), Ezzes Brittain (2024), McCann Damien (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 14 |
| % in Top 10 Holdings: | 92.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 27.1% |
Portfolio Allocation |
|
| Domestic Stock: | 43.8% |
| Foreign Stock: | 20.5% |
| Preferred Stock: | 0.4% |
| Domestic Bond: | 22.6% |
| Foreign Bond: | 6.6% |
| Convertible Bond: | 0.0% |
| Other: | 0.9% |
| Cash: | 5.2% |
Purchase Information
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: | www.americanfunds.com |
| Status: | Open |
| Inception Date: | May 18, 2012 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 25 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.50% |
Expenses and Fees | |
| Expense Ratio (%): | 0.98% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.99% |
| Share Class: | American Funds Mod Gr Inc R-5 |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 25 |
