FIXED INCOME

New category, new choices. See The Bond Fund of America® in a new light.

THE BOND FUND OF AMERICA

Get more from the core

Morningstar's category changes are the biggest shake-up of bond fund investing in years.

In the new Intermediate Core Bond category, The Bond Fund of America offers top-quartile results and is now the largest actively managed fund.

 

Percentile ranks based on average annual returns in Morningstar Intermediate Core category — Class F-2 (%)1

Source: Morningstar. Data as of March 31, 2019.The Morningstar rankings do not reflect the effects of sales charges, account fees or taxes. Past results are not predictive of results in future periods. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower.

A fund that can help client portfolios stay on track

Looking for resilience when stock markets are unsettled? The Bond Fund of America has delivered strong equity diversification. 

Cumulative returns during recent market corrections — Class F-2 (%)1

chart of bfa returns

The Bond Fund of America

Sources: Capital Group, Morningstar. As of 3/31/19, the average annual total returns for Standard & Poor's 500 Composite Index were: one year: 9.50%; five years: 10.91%; 10 years: 15.92%.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Past results are not predictive of future results. Dates shown for market corrections are based on price declines of 10% or more (without dividends reinvested) in the unmanaged S&P 500 with at least 50% recovery between declines. The returns are based on total returns. There have been periods when the fund has lagged the index, such as in rising equity markets.

The Bond Fund of America has also delivered positive returns in 100% of rolling three-, five- and seven-year periods since 1/1/09.

% of rolling periods where fund recorded a positive return*

 

3-year periods

5-year periods

7-year periods

Sources: Capital Group, Morningstar. As of 12/31/18.

*Based on monthly data starting 1/1/09. On January 1, 2009, The Bond Fund of America’s strategy was repositioned from core plus to core fixed income, with its prospectus and guidelines adjusted accordingly. Past results are not predictive of future results. Total number of periods for rolling 3-, 5- and 7-year analyses are 84, 60 and 36, respectively.

The Bond Fund of America has consistently outpaced the market — delivering excess returns and outpacing passive strategies in the past decade.

Average annualized excess returns for The Bond Fund of America and passive peers (%)2

BFA excess returns over passive groups

Sources: Capital Group, Bloomberg Index Services Ltd., Morningstar. As of 3/31/19. All passive peers reflects all passive bond strategies in Morningstar's Intermediate Core category. As of 3/31/19, the average annual returns for the Morningstar Intermediate Core category average were: one year: 3.98%; five years: 2.51%; 10 years: 4.56%. 

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Fixed income at Capital Group

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1Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which the results would have been lower. Please see americanfunds.com for more information.

2Respective rolling period excess returns shown over strategies' respective prospectus benchmark for passive peer groups net of fees from the Morningstar Intermediate Core category. Group of all passive peers includes passive Intermediate Core category strategies. Based on monthly data for the period 1/1/09 through 3/31/19. The number of rolling periods in 3-, 5-, and 10-year annual excess return timeframes were 88, 64 and 4, respectively. On January 1, 2009, The Bond Fund of America's strategy was repositioned from core plus to core fixed income, with its prospectus and guidelines adjusted accordingly.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns.

Returns shown at net asset value (NAV) have all distributions reinvested.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

There may have been periods when the fund(s) lagged the index(es). Certain market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

All Capital Group trademarks referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

Funds are managed, so holdings will change.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. 

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. 

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 

Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. 

Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. 

Standard & Poor’s 500 Composite Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2019 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. 

© 2019 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.