Fund Evaluator:

American FdsTaxAwrCnsrvGr&IncPortF-1 Overview

American FdsTaxAwrCnsrvGr&IncPortF-1 (TAIFX) is an actively managed Allocation Moderately Conservative Allocation fund. Capital Group launched the fund in 2012.

The investment seeks current income, a portion of which is exempt from regular federal income tax, while secondarily striving for long-term growth of capital. The fund invests in a mix of American Funds in different combinations and weightings. The underlying American Funds will typically seek to generate income from their investments and may include growth-and-income, equity-income, balanced and fixed income funds. Through its investments in the underlying funds, the fund will have significant exposure to dividend-paying stocks. The fund will seek exposure to investments outside the United States, including in emerging markets.

About American FdsTaxAwrCnsrvGr&IncPortF-1 (TAIFX)

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 FdsTaxAwrCnsrvGr&IncPortF-1 has 11 securities in its portfolio. The top 10 holdings constitute 99.6% 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 FdsTaxAwrCnsrvGr&IncPortF-1 is part of the Allocation global asset class and is within the Allocation fund group. American FdsTaxAwrCnsrvGr&IncPortF-1 has 16.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 36.9%. There is 13.7% allocated to foreign stock, and 0.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 47.7% (45.2% domestic bond, 2.5% foreign bond and 0.0% convertible bond). American FdsTaxAwrCnsrvGr&IncPortF-1 has 1.5% of the portfolio in cash.

Assets Under Management

The fund has $345 million in total assets, which is below the $561 million average for the Moderately Conservative 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.

TAIFX 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 FdsTaxAwrCnsrvGr&IncPortF-1 expense ratio is above average compared to funds in the Moderately Conservative Allocation category. American FdsTaxAwrCnsrvGr&IncPortF-1 has an expense ratio of 0.70%, which is 30% 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 FdsTaxAwrCnsrvGr&IncPortF-1 has a portfolio turnover rate of 39%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 43% for the Moderately Conservative Allocation category.

Recently, in the month of July 2026, American FdsTaxAwrCnsrvGr&IncPortF-1 returned -0.4%, which earned it a grade of C, as the Moderately Conservative 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 FdsTaxAwrCnsrvGr&IncPortF-1 has a trailing yield of 2.00%, which is below the 3.29% 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 FdsTaxAwrCnsrvGr&IncPortF-1 Grades

Year to date, the fund has returned 6.7%, 1.9 percentage points better than the category, which translates into a grade of A. The fund has returned 13.9% over the past year (grade of A), 11.6% over the past three years (grade of A) and 6.7% per year over the past five years (grade of A) and 7.6% per year over the past 10 years (grade of A).

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