ASBFX

About ASBFX

American Funds Short-Term Bond Fund of America Class F-1 is an actively managed open-end mutual fund focused on generating current income with an emphasis on capital preservation. The portfolio invests primarily in high-quality, U.S. dollar–denominated fixed-income securities, including corporate and government bonds, mortgage- and asset-backed securities, and cash equivalents. The strategy maintains a short dollar‑weighted average effective maturity, generally no greater than three years, and centers on securities rated AA-/Aa3 or better, with a limited allocation—up to 10%—to the A rating tier to enhance income potential within strict risk controls. The fund pays monthly distributions and targets lower interest-rate sensitivity than intermediate- and long-duration bond strategies, reflected in its short effective duration profile. Managed by Capital Research and Management Company, it aims to provide a higher income stream than typical money market instruments while seeking reduced volatility relative to longer-term bond funds. Within the short-term bond category, it serves as a core conservative fixed-income holding that can help balance equity-heavy allocations and provide liquidity-aware income across market cycles.