PPEFX

About PPEFX

American Funds Preservation Portfolio Class F-2 is a target-risk mutual fund designed to provide current income while emphasizing preservation of capital. It achieves this mandate by allocating exclusively to underlying American Funds fixed income strategies, primarily short-term and intermediate bond funds, avoiding equity exposure to limit volatility and interest-rate sensitivity. The portfolio is largely invested in high-quality U.S. bonds with meaningful allocations to U.S. Treasuries, agency mortgage‑backed securities, and asset‑backed obligations, complemented by a smaller sleeve in corporate and select non‑U.S. government securities. The fund pays dividends monthly and maintains a relatively low turnover profile, aligning with its income-and-stability objective. Positioned in the short-term bond category, it targets a conservative risk posture with metrics such as modest effective duration and a benchmark tied to the 1–5 year U.S. Government/Credit universe guiding its interest-rate exposure. This structure makes the portfolio a foundational fixed income allocation within multi-asset plans, serving cash-flow needs and ballast roles across market cycles while focusing on capital preservation and consistent income generation.