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The anatomy of an investment: From research to returns

Evaluating investment prospects for American High-Income Trust® sometimes requires a creative approach. Three of our fund analysts describe how they looked at three different companies, each one requiring a different approach, but that shared some common traits when it came to evaluating their investment prospects. 

“Situations present themselves in different ways, but no matter how you approach an investment, you need to have the deep research to be able to do the fundamental business and company analysis.”

David Barclay
Portfolio manager

In the wide-ranging and dynamic high-yield bond market, there are a variety of ways to find attractive investments. Sometimes opportunities emerge in moments of crisis. Other times they are uncovered by surprising circumstances. Regardless of the situation, however, the importance of having a strong research organization in place to evaluate the investment opportunities cannot be underestimated. 

“Using our depth of research is important when making all investment decisions,” says American High-Income Trust President David Barclay, also a portfolio manager for the fund. “There are a number of different ways of finding investment opportunities for the fund in this diverse and changing marketplace, so it is even more important to have that broad and flexible research operation in place.”

In this series, The anatomy of an investment, we explore three cases that highlight the rigorous research and the diverse approaches that our analysts and portfolio managers take when making investing decisions.

Learn more about American High-Income Trust's portfolio holdings and other data. 

  • Opportunities in a struggling company

    Investment analyst Jonathan Deeringer describes how rigorous research, teamwork and a fresh perspective allowed for a successful, but risky, investment. 

    More >
  • Investment knowledge enhanced by collaboration

    Investment analyst Tara Torrens explains how a broad, collaborative approach to studying a troubled aircraft leasing company helped her team develop a new view of a potential investment. 

    More >
  • Benefits of a symbiotic relationship

     Investment analyst Damien McCann reveals how deep knowledge and experience paved the way for a solid, steady investment in a lesser known company. 

    More >

Past results are not predictive of results in future periods.

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

Investing outside the U.S. involves additional 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.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

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.

The statements included here are the opinions and beliefs of the speaker(s) expressed at the time the commentary was recorded and are not intended to represent those persons' opinions and beliefs at any other time.