IBAFX

About IBAFX

Intermediate Bond Fund of America F-2 is a diversified, open-end mutual fund specializing in intermediate-term, investment-grade debt securities. Its primary objective is to provide current income while managing interest rate risk through investments in high-quality, dollar-denominated bonds, primarily those rated A– or better by recognized rating agencies. The fund’s portfolio is composed mainly of U.S. bonds, with significant allocations to mortgage-backed securities (over one third of assets), U.S. Treasury bonds and notes, and corporate bonds, as well as smaller positions in asset-backed and select non-U.S. bonds. The portfolio typically maintains an effective duration of about 4.2 years, aiming to balance yield and stability in changing interest rate environments. Regular monthly dividends support its income focus, while management relies on a multi-manager approach to diversify expertise and oversight. This fund plays a key role in helping investors reduce equity risk exposure and diversify their fixed-income holdings by focusing on investment-grade credit, making it a fundamental component in many core bond allocations across personal and institutional portfolios.