American Funds Corporate Bond Fund - BFCGX | American Funds
Purchase Restrictions: Class F-2 shares are available through certain registered investment advisor and fee-based programs, but are not available for purchase in most employer-sponsored retirement plans. See the prospectus for details.

Summary

A Research-Driven Approach with a High Degree of Capital Preservation. Invests primarily in corporate bonds, which must be 100% investment-grade and dollar-dominated. Leveraging our deep credit research capabilities, seeks maximum total return and can serve as a durable portfolio building block.
Price at NAV $9.92 as of 6/22/2018 (updated daily)
Fund Assets (millions) $508.3
Portfolio Managers 2
Expense Ratio 0.71%

Returns at NAV

Returns with Sales Charge

N/A
1-year return
N/A
5-year return
N/A
Lifetime return
3.25%
30-Day SEC Yield Fund at NAV
Returns as of 5/31/18 (updated monthly). Yield as of 5/31/18 (updated monthly).

Asset Mix

U.S. Equities0.0%
Non-U.S. Equities0.0%
U.S. Bonds63.8%
Non-U.S. Bonds29.1%
Cash & Equivalents7.1%
As of 5/31/2018 (updated monthly)

Growth of 10K

For Class F-2 Shares, this chart tracks a hypothetical investment with dividends reinvested through 12/31/2017.
BFCGX
Bloomberg Barclays U.S. Corporate Investment Grade Index

High & Low Prices

Fund Statistics

9.3 years
Average Life
6.5 years
Average Duration
3.7%
Average Yield
to Maturity
3.3%
Average Coupon
% of net assets as of 3/31/2018 (updated quarterly)

Morningstar Style BoxTM— Fixed-Income

Medium Quality
Moderate Interest-Rate Sensitivity
Morningstar data as of 3/31/18 (updated quarterly)

Description

Fund Objective
The fund’s investment objective is to seek to provide maximum total return consistent with capital preservation and prudent risk management.
Distinguishing Characteristics
A fund that focuses on corporate bonds that invests in 100% investment-grade, U.S.-dollar denominated securities. It leverages Capital Group’s deep global credit research capabilities and collaboration with equity analysts to derive the vast majority of its excess return from security selection.
Types of Investments
Primarily invests in corporate bonds.
Holdings Outside the U.S.
The fund may invest significantly in debt securities issued by companies domiciled outside the United States, including issuers domiciled in developing countries. All securities held by the fund will be denominated in U.S. dollars.
Maturity
The fund invests in debt securities with a wide range of maturities.
Portfolio Restrictions
Normally, at least 80% of the fund’s assets will be invested in corporate debt securities. In addition, under normal market conditions the fund invests 100% of its assets in debt securities, including money market instruments, cash and cash equivalents, rated Baa3 or better or BBB- or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or in debt securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser at the time of purchase.

Fund Facts

Fund Inception 12/14/2012
Fund Assets (millions)
As of 5/31/2018
$508.3
Companies/Issuers
Holdings are as of 5/31/2018 (updated as of most recent fiscal year-end).
190+
Shareholder Accounts
Shareholder accounts are as of 5/31/2018
1,448
Regular Dividends Paid Monthly
Minimum Initial Investment $250
Capital Gains Paid --
Portfolio Turnover (2018) 153%
Fiscal Year-End May
Prospectus Date 08/14/2017
CUSIP 02629H 50 5
Fund Number 632

Returns

Month-End Returns as of 5/31/18

BFCGX
Bloomberg Barclays U.S. Corporate Investment Grade Index

Quarter-End Returns as of 3/31/18

Volatility & Return


Volatility & Return chart is not available for funds less than 10 years old.

Yield

12-month
Distribution Rates
30-day SEC Yield
Fund at NAV 2.63% 3.25%
Fund at MOP N/A N/A
As of 5/31/2018 (updated monthly)

Portfolio Management

Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
David S. Lee 5 15 18
Scott Sykes 1 12 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(--)
--
3-yr. Morningstar RatingTM
(-- funds rated)
--
5-yr. Morningstar RatingTM
(-- funds rated)
--
10-yr. Morningstar RatingTM
(-- funds rated)
--
Overall Morningstar Risk --
Category --
Ratings are based on risk-adjusted returns as of -- (updated monthly).

Risk Measures

Fund
Standard Deviation 4.01
Sharpe Ratio 0.80
For the 5 Years ending 5/31/18 (updated monthly).
American Funds
Benchmark
Morningstar
Benchmark
Bloomberg Barclays U.S. Corporate Investment Grade Index BBgBarc US Agg Bond TR USD
R-squared 96 83
Beta 1.01 1.30
Capture Ratio (Downside/Upside) 96/106 124/147
American Funds Benchmark for the 5 Years ending 3/31/18 (updated monthly).
Morningstar Benchmark for the 5 Years ending 5/31/18 (updated monthly).
U.S. Treasuries/Agencies
2.8%
AAA/Aaa
2.2%
AA/Aa
13.5%
A
30.4%
BBB/Baa
41.6%
BB/Ba
1.9%
B
0.0%
CCC & Below
0.0%
Unrated
0.0%
Cash & equivalents
7.6%
% of net assets as of 3/31/2018 (updated quarterly)

Average Life Breakdown

0-4.9 Years
38.6%
5-9.9 Years
35.0%
10-19.9 Years
3.1%
20-29.9 Years
15.1%
30+ Years
0.6%
% of net assets as of 3/31/2018 (updated quarterly)

Holdings

Bonds Breakdown

Bond Details

Total bond holdings
U.S. government & government agency bonds & notes 2.80%
Non-U.S. government/agency securities 0.70%
Municipal securities 0.60%

% of net assets as of 3/31/2018 (updated quarterly)

Top Fixed-Income Issuers

U.S. Treasury
2.8%
CVS
2.5%
British American Tobacco
2.1%
Bank of America
2.0%
Becton, Dickinson
1.8%
Morgan Stanley
1.7%
Amazon
1.7%
Teva Pharmaceutical
1.7%
Goldman Sachs
1.6%
Shire
1.6%

% of net assets as of 3/31/2018 (updated quarterly)

Geographic Breakdown

United States
63.70%
Europe
18.70%
Asia & Pacific Basin
3.50%
Other (Including Canada & Latin America)
6.50%
Cash & equivalents
7.60%
% of net assets as of 3/31/2018 (updated quarterly)

Prices & Distributions

Historical Prices Month-End

Historical Prices Year-End

Historical Distributions as of 06/22/18

2018
Record
Date
Calculated
Date
Pay Date
Income Dividend Regular
Income Dividend Special
Cap. Gains Long-Term
Cap. Gains Short-Term
Reinvest NAV
Daily 01/31/18 02/01/18 $0.0222653 $0.00 $0.00 $0.00 $10.28
Daily 02/28/18 03/01/18 $0.0196867 $0.00 $0.00 $0.00 $10.10
Daily 03/29/18 04/02/18 $0.02373 $0.00 $0.00 $0.00 $10.10
Daily 04/30/18 05/01/18 $0.0242647 $0.00 $0.00 $0.00 $9.99
Daily 05/31/18 06/01/18 $0.0242421 $0.00 $0.00 $0.00 $10.00
2018 Year-to-Date: Dividends Subtotal: $0.11418875 Cap Gains Subtotal: $0.00
Total Distributions: $0.11418875

Fees & Expenses

Fees

Annual Management Fees 0.46%
Other Expenses 0.25%
Service 12b-1 --
As of each fund's most recent prospectus.

Expense Ratio

Gross Net
BFCGX 0.71% 0.67%
Lipper Corporate Debt BBB-Rated Funds Average 0.55%
Fund as of most recent prospectus. Lipper 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.

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.

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

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.

All Capital Group trademarks referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. 

Funds are managed, so holdings will change.

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

For American Funds Corporate Bond Fund, the investment adviser is currently reimbursing a portion of other expenses through at least August 1, 2018, without which the results would have been lower and net expense ratios higher. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Please see the fund's most recent prospectus for details. 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. Cash & equivalents includes short-term securities, accrued income and other assets less liabilities.
  3. 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.
  4. The portfolio managers shown are as of the fund's most recent prospectus dated 08/14/2017.
  5. 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 © 2018, Thomson Reuters, All Rights Reserved.
  6. Calculated by American Funds. Due to differing calculation methods, the figures shown here may differ from those calculated by Morningstar.
  7. Calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.
  8. 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 F-2 only; other classes may have different performance characteristics.
  9. The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
  10. 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.
  11. 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.
  12. 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.
  13. Expense ratios are as of the most recent prospectus.
  14. Source for Lipper expense ratio comparison: Lipper, based on institutional load funds, excluding funds of funds, for the most recent fiscal year-ends available as of 3/31/2018.
  15. 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.
  16. 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 estimated annual expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds' Class F-2 shares sold after the funds' date of first offering. View dates of first sale and specific expense adjustment information.

Securities offered through American Funds Distributors, Inc.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.

©2018 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 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 return was more volatile than the market. A beta lower than 1 suggests that a return 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. Corporate Investment Grade Index: Bloomberg Barclays U.S. Corporate Investment Grade Index represents the universe of investment-grade, publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity and quality requirements. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

Bond Statistic Average Coupon: The average coupon is the weighted average coupon rate of all the bond holdings.

Bond Statistic Average Duration in Years: Expressed in years, average duration is a weighted average of the estimated price sensitivity of the bond holdings 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 holdings.

Bond Statistic Average Yield to Maturity: A weighted average of all the 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: Specifies how well benchmark results have matched during declining market periods. A downside capture ratio less than 100 indicates the strategy lost less than the index in negative monthly return periods.

Capture Ratio Upside: Specifies how well benchmark results have matched during rising market periods. An upside capture ratio above 100 indicates the strategy gained more than a market index in positive monthly return periods.

Currency Weighting Short Breakdown: The exposure to a specific currency before taking into consideration any forward currency contracts that may increase or decrease that currency's exposure.

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 Capital World Bond Fund, American Funds Strategic Bond Fund and American Funds Inflation Linked Bond Fund also decrease 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 return and that of a benchmark index. A measure of 100 indicates that all of the return can be explained by movements in the benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be.

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.