Fund Evaluator:
American Funds Mortgage R-5E (RMAHX)
Follow This Fund
Best Performing in Government Mortgage-Backed Bond Over the Last Year
| 4.4% | Fidelity Mortgage Securities (FMSFX) |
| 4.4% | Fidelity Advisor Mortgage Securities Z (FIKUX) |
| 4.3% | Fidelity GNMA (FGMNX) |
| 4.3% | Vanguard Mortgage-Backed Secs Idx Adm (VMBSX) |
| 4.2% | Vanguard GNMA Adm (VFIJX) |
Fund Details
American Funds Mortgage R-5E Overview
American Funds Mortgage R-5E (RMAHX) is an actively managed Taxable Bond Government Mortgage-Backed Bond fund. Capital Group launched the fund in 2015.
The investment seeks to provide current income and preservation of capital. Normally at least 80% of the fund's assets are invested in mortgage-related securities, including securities collateralized by mortgage loans and contracts for future delivery of such securities (such as to be announced contracts and mortgage dollar rolls). The fund invests primarily in mortgage-related securities that are sponsored or guaranteed by the U.S. government, such as securities issued by government-sponsored entities that are not backed by the full faith and credit of the U.S. government, and non-government mortgage-related securities.
About American Funds Mortgage R-5E (RMAHX)
There are 4 members of the management team with an average tenure of 9.01 years: Fergus MacDonald (2010), David Betanzos (2013), Oliver Edmonds (2019), Pratyoosh Pratyoosh (2025). 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 MBS TR USD index with a weighting of 100%. American Funds Mortgage R-5E has 1188 securities in its portfolio. The top 10 holdings constitute 26.6% 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 Mortgage R-5E is part of the Fixed Income global asset class and is within the Taxable Bond fund group. American Funds Mortgage R-5E 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 78.3% (78.2% domestic bond, 0.1% foreign bond and 0.0% convertible bond). American Funds Mortgage R-5E has 21.7% of the portfolio in cash.
Assets Under Management
The fund has $833 million in total assets, which is below the $337 million average for the Government Mortgage-Backed 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.
RMAHX 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 Mortgage R-5E expense ratio is average compared to funds in the Government Mortgage-Backed Bond category. American Funds Mortgage R-5E has an expense ratio of 0.42%, which is 53% lower than its category average, making the fund expense ratio grade a A. 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 Mortgage R-5E has a portfolio turnover rate of 58%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 367% for the Government Mortgage-Backed Bond category.
Recently, in the month of July 2026, American Funds Mortgage R-5E returned -1.4%, which earned it a grade of C, as the Government Mortgage-Backed Bond category had an average return of -1.2%. 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 Mortgage R-5E has a trailing yield of 4.43%, which is above the 3.87% 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 Mortgage R-5E Grades
Year to date, the fund has returned -1.2%, 0.8 percentage points worse than the category, which translates into a grade of F. The fund has returned 3.0% over the past year (grade of D), 3.7% over the past three years (grade of C) and 0.2% per year over the past five years (grade of B) and 1.4% per year over the past 10 years (grade of A).
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RMAHX 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 |
|
| RMAHX Return (NAV) | -1.4% | -1.1% | 3.0% | 3.7% | 0.2% | 1.4% |
| RMAHX Grade | C | D | D | C | B | A |
| +/- Category | -0.2% | -0.3% | -0.4% | -0.0% | 0.1% | 0.4% |
| Government Mortgage-Backed Bond Avg | -1.2% | -0.9% | 3.4% | 3.8% | 0.1% | 1.0% |
| RMAHX Tax Cost Ratio | na | na | 1.7% | 1.8% | 1.5% | 1.3% |
RMAHX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RMAHX Return (NAV) | -1.2% | 8.7% | 0.8% | 3.8% | -9.8% | -0.5% | 6.8% | 5.1% | 0.7% | 1.7% | 2.0% |
| RMAHX Grade | F | A | C | D | B | A | A | D | B | B | A |
| +/- Category | -0.8% | 1.1% | -0.4% | -0.6% | 0.7% | 0.9% | 2.5% | -0.1% | 0.2% | 0.4% | 0.6% |
| Government Mortgage-Backed Bond Avg | -0.4% | 7.6% | 1.2% | 4.4% | -10.5% | -1.4% | 4.4% | 5.2% | 0.5% | 1.3% | 1.3% |
| Risk Measures | |
| Standard Deviation: | 6.1% |
| Total Risk Index: | 0.50 - Below Average |
| Category Risk Index: | 1.08 - Average |
| Category Risk Grade: | C (42% Rank) |
| Beta: | 1.08 |
| R-Squared: | 98% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 4.4% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $13051 Mil |
| Fund Total Assets: | $ 1 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 58% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 15.8 years | |||
| Average Tenure: 9.0 years | |||
| Managers (Year): MacDonald Fergus (2010), Betanzos David (2013), Edmonds Oliver (2019), Pratyoosh Pratyoosh (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 1188 |
| % in Top 10 Holdings: | 26.6% |
| 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: | 78.2% |
| Foreign Bond: | 0.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 21.7% |
Purchase Information
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: | www.americanfunds.com |
| Status: | Open |
| Inception Date: | November 20, 2015 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.42% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.89% |
| Share Class: | American Funds Mortgage R-6 |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
