PPVAX

About PPVAX

American Funds Preservation Portfolio Class A is a fund-of-funds designed to deliver current income while prioritizing preservation of capital. It allocates primarily to underlying American Funds fixed income strategies, emphasizing short-duration, investment-grade bonds to maintain lower volatility and interest rate sensitivity. The portfolio’s mix typically includes U.S. Treasuries and agencies, mortgage- and asset-backed securities, and high-quality corporate debt, resulting in broad exposure across core bond sectors with minimal equity risk. Managed by Capital Research and Management Company, the strategy follows an objectives-based approach and maintains a relatively conservative duration profile. The fund distributes income monthly and employs a diversified sleeve structure to balance credit quality and liquidity needs. Its expense ratio reflects both the fund’s own costs and the weighted fees of its underlying holdings. Within the short-term bond category, the portfolio’s role is to provide a stabilizing ballast in diversified allocations, offering steady income and mitigating drawdowns during periods of market stress through its focus on high-quality, shorter-maturity fixed income holdings.