ASBAX

About ASBAX

American Funds Short-Term Bond Fund of America Class A is an actively managed open-end mutual fund focused on generating current income with an emphasis on capital preservation. The portfolio concentrates on high-quality, U.S. dollar–denominated fixed income, primarily U.S. Treasury and agency securities, investment-grade corporates, and securitized credit such as asset-backed and mortgage-backed obligations, while maintaining a short effective duration around two years to limit interest-rate sensitivity. The fund targets a dollar‑weighted average effective maturity of no more than three years and invests predominantly in bonds rated AA/Aa3 or higher, with limited allowance—up to 10%—for A-rated exposures, avoiding lower investment-grade and high-yield tiers. Managed by Capital Research and Management Company, it seeks stability and liquidity, reflected in its monthly income distributions and conservative credit profile. Within the short-term bond category, it plays a role as a core defensive ballast, aiming for higher income than money market vehicles with lower volatility than intermediate- and long-term bond strategies.