AHICX

About AHICX

American High-Income Municipal Bond Fund Class C is a mutual fund specializing in high-yield municipal bonds. Its primary objective is to provide a high level of current income that is exempt from regular federal income tax, appealing to investors seeking tax-advantaged income streams. The fund primarily invests at least 80% of its assets in securities issued by U.S. municipalities, with a significant focus on lower-rated, high-yield debt—specifically, at least 50% of its holdings are in bonds rated BBB+ or below or Baa1 or below by major credit rating agencies. This focus offers potential for higher income, while also introducing greater credit risk compared to higher-rated municipal bond funds. The fund’s portfolio consists predominantly of U.S. bonds, with revenue bonds making up a substantial majority, as well as a mix of general obligation bonds and occasional mortgage-backed obligations. With a typical effective duration in the 6.5-8 year range, the fund exhibits sensitivity to interest rate movements, a common trait for municipal bond strategies. It pays monthly dividends and maintains a multi-billion dollar asset base, reinforcing its position within the high-yield municipal bond segment. This fund offers an option for investors focused on maximizing tax-exempt income and diversifying fixed-income allocations across municipal issuers.