Fund Evaluator:

American Funds Inflation Lnkd Bd R-5E Overview

American Funds Inflation Lnkd Bd R-5E (RILHX) is an actively managed Taxable Bond Inflation-Protected Bond fund. Capital Group launched the fund in 2015.

The investment seeks to provide inflation protection and income consistent with investment in inflation-linked securities. The fund seeks to provide inflation protection and income by investing primarily in inflation linked securities. Normally, at least 80% of the fund's assets will be invested in inflation linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Inflation linked bonds are structured to protect against inflation by linking the bond's principal and interest payments to an inflation index so that principal and interest adjust to reflect changes in the index.

About American Funds Inflation Lnkd Bd R-5E (RILHX)

There are 2 members of the management team with an average tenure of 9.13 years: Ritchie Tuazon (2013), Timothy Ng (2021). 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 Treasury US TIPS TR USD index with a weighting of 100%. American Funds Inflation Lnkd Bd R-5E has 159 securities in its portfolio. The top 10 holdings constitute 47.0% 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 Inflation Lnkd Bd R-5E is part of the Fixed Income global asset class and is within the Taxable Bond fund group. American Funds Inflation Lnkd Bd R-5E has 3.1% 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 96.7% (93.6% domestic bond, 3.1% foreign bond and 0.0% convertible bond). American Funds Inflation Lnkd Bd R-5E has 3.4% of the portfolio in cash.

Assets Under Management

The fund has $24 million in total assets, which is below the $869 million average for the Inflation-Protected 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.

RILHX 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 Inflation Lnkd Bd R-5E expense ratio is average compared to funds in the Inflation-Protected Bond category. American Funds Inflation Lnkd Bd R-5E has an expense ratio of 0.44%, which is 40% lower than its category average, making the fund expense ratio grade a B. 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 Inflation Lnkd Bd R-5E has a portfolio turnover rate of 12%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 72% for the Inflation-Protected Bond category.

Recently, in the month of July 2026, American Funds Inflation Lnkd Bd R-5E returned -0.8%, which earned it a grade of D, as the Inflation-Protected Bond category had an average return of -0.8%. 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 Inflation Lnkd Bd R-5E has a trailing yield of 3.57%, which is below the 4.20% category average. The fund normally distributes its income annually 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 Inflation Lnkd Bd R-5E Grades

Year to date, the fund has returned -0.2%, 0.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 1.9% over the past year (grade of D), 3.5% over the past three years (grade of C) and -0.3% per year over the past five years (grade of D) and 2.2% per year over the past 10 years (grade of C).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about American Funds Inflation Lnkd Bd R-5E, including its riskiness, submit your email to unlock the rest of the article.