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Capital Group, a Los Angeles-based investment management firm overseeing $365 billion in fixed income assets, has rolled out a new fixed income fund, the company announced in a news release/
This is perhaps one unique vehicle that investors maybe looking for
The more I look at American Funds, the more I like them. I'm going to check to see how this fund differs from the ANBAX American Funds Strategic Income Fund mentioned in another thread.
We used American Funds for the greater part of our mutual fund investing for some 45 years. We did some maneuvering between a variety of their funds from time to time as seemed indicated by the market circumstances. Our IRAs are with them still, although mostly in MMKT at this point. Slow and steady- certainly not flashy, but pretty dependable over the long haul.
By and large we are quite content with their performance over the years. Old_Skeet has also had some American Funds investments for quite a while, I believe.
When you find the fund symbol, please post it here- thanks.
Haven't looked too closely yet. At least some of the managers are picked from other American Funds, so that may give a sense of how this fund will operate.
ANBAX has a duration of 8.6 . The summary prospectus makes no mention of a duration range, but did say frequent trading and the use of swap and derivatives may be employed. I'm wondering if this a bond version of CTFAX with duration being lengthened or shortened as necessary.
This looks like a pretty standard core plus bond fund. The statutory prospectus says that "The fund may invest in debt securities of any maturity or duration."
My impression of Capital Research and Management (American Funds) is that it's generally pretty conservative. So I expect it to use derivatives for ease of investment rather than to boost returns. The prospectus statements are at least consistent with that expectation:
The fund will invest at least 80% of its assets in bonds and other debt securities, which may be represented by other investment instruments, including derivatives.
The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund ...
@Old_Joe - thanks for the note. Hope you and really, everyone, are being careful and remain well.
I've got several AF's spread across my accounts and am pleased with their slow-and-steady approach.
That said (and I'm not a FI person) are these the right market conditions to launch a FI product, let alone one that would be worthy of Capital's conservative approach to investing?
Comments
By and large we are quite content with their performance over the years. Old_Skeet has also had some American Funds investments for quite a while, I believe.
When you find the fund symbol, please post it here- thanks.
Here's the prospectus with all the tickers.
Haven't looked too closely yet. At least some of the managers are picked from other American Funds, so that may give a sense of how this fund will operate.
My impression of Capital Research and Management (American Funds) is that it's generally pretty conservative. So I expect it to use derivatives for ease of investment rather than to boost returns. The prospectus statements are at least consistent with that expectation: @Old_Joe - thanks for the note. Hope you and really, everyone, are being careful and remain well.
I've got several AF's spread across my accounts and am pleased with their slow-and-steady approach.
That said (and I'm not a FI person) are these the right market conditions to launch a FI product, let alone one that would be worthy of Capital's conservative approach to investing?