U.S. Government Securities Fund - AMUSX | American Funds

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BOND FUNDS

®

Share Class

Summary

A quality foundation. Holds mostly Treasury and agency securities and seeks to actively manage interest rate risk.
Price at NAV $13.81 as of 09/21/2017 (updated daily)
Fund Assets (millions) $10,138.0
Portfolio Managers 3
Expense Ratio 0.65%

Returns at NAV

Returns With Sales Charge

-2.92%
1-year return
0.50%
5-year return
3.13%
10-year return
1.28%
30-Day SEC Yield Fund With Sales Charge
Returns as of 8/31/17 (updated monthly). Yield as of 8/31/17 (updated monthly).

Asset Mix

U.S. Equities0.0%
Non-U.S. Equities0.0%
U.S. Bonds95.0%
Non-U.S. Bonds0.0%
Cash & Equivalents5.0%
As of 8/31/2017 (updated monthly).

Growth of 10K

For Class A Shares, this chart tracks a hypothetical investment with dividends reinvested through 12/31/2016.
AMUSX
Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index

High & Low Prices

Fund Statistics

6.1 years
Average Life
4.1 years
Average Duration
3.2%
Average Yield
to Maturity
2.3%
Average Coupon
% of net assets as of 6/30/2017 (updated quarterly).

Morningstar Style BoxTM— Fixed-Income

High Quality
Limited Interest-Rate Sensitivity
Morningstar data as of 6/30/17 updated quarterly.

Description

Fund Objective
The fund's investment objective is to provide a high level of current income consistent with prudent investment risk and preservation of capital.
Types of Investments
Primarily invests in direct obligations of the U.S. Treasury, GNMA mortgage-backed securities, securities issued by U.S. government agencies or instrumentalities that are not backed by the full faith and credit of the U.S. government.
Maturity
Not required to maintain any particular maturity.
Portfolio Restrictions
At least 80% of the fund's assets will be invested in securities that are guaranteed or sponsored by the U.S. government.

Fund Facts

Fund Inception 10/17/1985
Fund Assets (millions)
As of 8/31/2017 (updated monthly).
$10,138.0
Companies/Issuers
Holdings are as of 8/31/2017 (updated as of most recent fiscal year-end).
10+
Shareholder Accounts
Shareholder accounts are as of 8/31/2017 (updated monthly).
172,726
Regular Dividends Paid Monthly
Minimum Initial Investment $250
Capital Gains Paid --
Portfolio Turnover (2017) 577%
Fiscal Year-End Aug
Prospectus Date 08/14/2017
CUSIP 026300 10 3
Fund Number 22

Returns

Month-End Returns as of 8/31/17

AMUSX
Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index

Quarter-End Returns as of 6/30/17

Volatility & Return


Fixed-Income

For Class A Shares, this chart tracks the 10-year standard deviation and 10-year annualized return of the fixed income funds
AMUSX
Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index
Other AF Funds
Standard Deviation as of 08/31/2017 (updated monthly). Annualized return as of 08/31/2017 (updated monthly).
VIEW LARGER CHART

Yield

12-month
Distribution Rates
30-day SEC Yield
Fund at NAV 1.08% N/A
Fund at MOP 1.04% 1.28%
As of 08/31/2017 (updated monthly).

Portfolio Management

Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
David J. Betanzos 2 15 17
Fergus N. MacDonald 7 14 25
Ritchie Tuazon 2 6 17
A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

Ratings & Risk

Morningstar Rating TM


Overall Morningstar RatingTM
Funds rated(245)
3-yr. Morningstar RatingTM
(245 funds rated)
5-yr. Morningstar RatingTM
(234 funds rated)
10-yr. Morningstar RatingTM
(172 funds rated)
Overall Morningstar Risk Average
HIGH
LOW
Category Intermediate Government
Ratings are based on risk-adjusted returns as of 8/31/2017 (updated monthly).

Risk Measures

For the 10 Years ending 8/31/17 (updated monthly).

Fund
Standard Deviation 3.19
Sharpe Ratio 0.97
American Funds
Benchmark
As of 6/30/17
(updated quarterly)
Morningstar
Benchmark
As of 8/31/17
(updated monthly)
Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index BBgBarc US Agg Bond TR USD
R-squared 94 84
Beta 1.01 0.89
Capture Ratio (Downside/Upside) 106/95 84/82
U.S. Treasuries/Agencies
60.7%
AAA/Aaa
30.8%
AA/Aa
0.4%
Cash & equivalents
8.1%
% of net assets as of 6/30/2017 (updated quarterly).

Average Life Breakdown

0-4.9 Years
49.5%
5-9.9 Years
36.9%
10-19.9 Years
0.2%
20-29.9 Years
5.3%
30+ Years
0.0%
% of net assets as of 06/30/2017 (updated quarterly).

Holdings

Bonds Breakdown

Bond Details

Total bond holdings
U.S. Treasury bonds & notes 58.40%
Mortgage-backed obligations 31.20%
Federal agency bonds & notes 2.30%

% of net assets as of 6/30/2017 (updated quarterly).

Top Fixed-Income Issuers

U.S. Treasury
58.4%
Fannie Mae
12.8%
Freddie Mac
10.3%
Ginnie Mae
7.8%
United States Agency for International Develop ...
1.1%

% of net assets as of 6/30/2017 (updated quarterly).

Prices & Distributions

Historical Prices Month-End

Historical Prices Year-End

Historical Distributions as of 09/21/17

2017
Record
Date
Calculated
Date
Pay Date
Income Dividend Regular
Income Dividend Special
Cap. Gains Long-Term
Cap. Gains Short-Term
Reinvest NAV
Daily 01/31/17 02/01/17 $0.0100113 $0.00 $0.00 $0.00 $13.68
Daily 02/28/17 03/01/17 $0.0112666 $0.00 $0.00 $0.00 $13.70
Daily 03/31/17 04/03/17 $0.0201051 $0.00 $0.00 $0.00 $13.71
Daily 04/28/17 05/01/17 $0.0147882 $0.00 $0.00 $0.00 $13.78
Daily 05/31/17 06/01/17 $0.0123187 $0.00 $0.00 $0.00 $13.83
Daily 06/30/17 07/03/17 $0.0158057 $0.00 $0.00 $0.00 $13.77
Daily 07/31/17 08/01/17 $0.0139578 $0.00 $0.00 $0.00 $13.81
Daily 08/31/17 09/01/17 $0.0132892 $0.00 $0.00 $0.00 $13.89
2017 Year-to-Date: Dividends Subtotal: $0.11154253 Cap Gains Subtotal: $0.00
Total Distributions: $0.11154253

Fees & Expenses

Fees

Annual Management Fees 0.21%
Other Expenses 0.17%
Service 12b-1 0.27%
As of each fund's most recent prospectus.

Expense Ratio

AMUSX 0.65%
Lipper General U.S. Government Funds Average 0.92%
Fund as of most recent prospectus. Morningstar Category as of 7/31/17 (updated monthly).

Resources

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. If a sales charge had been deducted, the results would have been lower.

Returns with sales charge for Class A shares reflect payment of the 3.75% maximum sales charge.

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.

Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.

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.

For more information about the risks associated with each fund, go to its detailed fund information page or read the prospectus.

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.

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 .

  1. Excludes certain securities in initial period of acquisition.
  2. Includes short-term securities, accrued income and other assets less liabilities.
  3. Prior to September 30, 2016, securities in the Real Estate sector were reported under the Financials sector.
  4. Figures include convertible securities; totals may not reconcile due to rounding. Methodology notes: The equity breakdown by revenue reflects the fund’s publicly traded equity holdings and excludes cash (and fixed income securities, if applicable). Underlying revenue data were compiled by MSCI and account for disparities in the way companies report their revenues across geographic segments. MSCI breaks out each company’s reported revenues into country-by-country estimates. MSCI provides revenue data figures based on a proprietary, standardized model. Revenue exposure at the fund and index level was calculated by using FactSet, which takes these company revenue exposures and multiplies by the company’s weighting in the portfolio and index. In this breakdown, Israel has been included in Europe.
  5. The portfolio managers shown are as of the fund's most recent prospectus dated 08/14/2017.
  6. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns at NAV, adjusted for volatility, relative to peers. Lipper ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures. Lipper ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return, Consistent Return, Preservation, Tax Efficiency and Expense metrics. The highest 20% of funds in each classification are named Lipper Leaders for Total Return, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader © 2017, Thomson Reuters, All Rights Reserved.
  7. Calculated by American Funds. Due to differing calculation methods, the figures shown here may differ from those calculated by Morningstar.
  8. Calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.
  9. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past results are not guarantee of results in future periods. Morningstar Rating is for Class A only; other classes may have different performance characteristics.
  10. The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
  11. YTD (year-to-date return): the net change in the value of the fund's shares (in percentage terms) from January 1, 2017, to the current date shown above.
  12. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness. If agency ratings differ, the security will be considered to have received the highest  of those ratings, consistent with the fund's investment policies. Securities in the Unrated category have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with fund investment policies.
  13. For bond funds, the maximum initial sales charge was 4.75% prior to 1/10/2000.
  14. Expense ratios are as of the most recent prospectus.
  15. Source for Lipper expense ratio comparison: Lipper, based on front-end load funds, excluding funds of funds, for the most recent fiscal year-ends available as of 06/30/2017.
  16. Read more information about Morningstar Style Box methodology. The model for the fixed-income style box is based on the two pillars of fixed-income performance: interest-rate sensitivity and credit quality. The three interest sensitivity groups are limited, moderate and extensive and the three credit quality groups are high, medium and low. These groupings display a portfolio's effective duration and third party credit ratings to provide an overall representation of the fund's risk orientation given the sensitivity to interest rate and credit rating of bonds in the portfolio.
  17. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund's SEC yield and distribution rate may differ.

©2017 Morningstar, Inc. All Rights Reserved. Some of 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, its content providers nor the American Funds are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.

Terms and Definitions

Beta: Beta relatively measures a fund's sensitivity to market movements over a specified period of time. The beta of the market (represented by the benchmark index) is equal to 1; a beta higher than 1 implies that a fund's return was more volatile than the market. A beta lower than 1 suggests that the fund was less volatile than the market. Generally the higher the R-squared measure, the more reliable the beta measurement will be.

Bloomberg Barclays U.S. Government/Mortgage-Backed Securities: Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index is a market-value-weighted index that covers fixed-rate, publicly placed, dollar-denominated obligations issued by the U.S. Treasury, U.S. government agencies, quasi-federal corporations, corporate or foreign debt guaranteed by the U.S. government, and the mortgage-backed pass-through securities of Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association.

Bond Statistic Average Coupon: The average coupon is the weighted average coupon rate of all the bonds in the fund.

Bond Statistic Average Duration in Years: Expressed in years, average duration is a weighted average of the estimated price sensitivity of the bonds in the fund's portfolio to a given change in interest rates. With respect to individual bonds, for example, a duration of 4 years indicates that the price of a bond will rise/fall by approximately 4% if rates in general fall/rise by 1%. Typically, bonds with a longer duration pay higher interest but are more sensitive to interest rate changes.

Bond Statistic Average Life in Years: Expressed in years, average life is time weighting the expected principal payments, taking into consideration the impact of calls and prepayments. In general, it is a better measure than average maturity for bonds that have the ability to prepay principal before they reach maturity (e.g., mortgages, mortgage-backed securities and asset-backed securities). Data shown is a weighted average of the bond funds held in the fund's portfolio.

Bond Statistic Average Yield to Maturity: A weighted average of all the fund's bond holding's yield to maturities. Yield to maturity is the return a bond earns if held to maturity, based on its price and coupon. Assumes that coupon payments can be reinvested at the yield to maturity.

Capture Ratio Downside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Capture Ratio Upside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Distribution rate 12-month: The income per share paid by the fund over the past 12 months to an investor from dividends (including any special dividends). The distribution rate is expressed as a percentage of the current price.

Historical Long-Term Capital Gains: When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund's holdings. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate. The information above classifies gain from the sale or exchange of a capital asset held for more than one year as a long-term capital gain.

Historical Regular Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Historical Short-Term Capital Gains: When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund's holdings. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate.

Historical Special Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Morningstar rating: In an effort to classify funds by what they own, as well as by their prospectus objectives and styles, Morningstar developed Morningstar Categories. While the prospectus objective identifies a fund's investment goals based on the wording in the fund prospectus, the Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio and other statistics over the past three years).

R-Squared: R-squared is a measure of the correlation between a particular fund's return and that of its benchmark index. A measure of 100 indicates that all of the fund's return can be explained by movements in its benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be. Calculated by Morningstar.

Standard Deviation: Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. Calculated by Morningstar.