CNLAX

About CNLAX

American Funds Inflation Linked Bond Fund 529-A is a mutual fund designed to provide both inflation protection and income by primarily investing in inflation-linked securities, with a special focus on U.S. Treasury Inflation-Protected Securities (TIPS) and similar instruments. Its central purpose is to help investors preserve the purchasing power of their assets in environments where inflation may erode real returns. The fund maintains a diversified fixed-income portfolio, with roughly 88% of assets allocated to U.S. government bonds, and supplementary exposure to corporate bonds, asset-backed securities, and select non-U.S. government securities. This fund is actively managed by a team of experienced professionals who employ a flexible strategy within the inflation-protected bond category, which can sometimes result in performance that diverges from its peers. It is commonly used as a component within education savings vehicles, such as 529 plans, due to its explicit goal of inflation-adjusted returns. With an expense ratio of 0.68% and a focus on high credit quality and moderate interest rate sensitivity, the fund is positioned for investors seeking to mitigate the effects of rising prices on fixed-income investments while generating a stream of income.