American Funds Corporate Bond Fund (Class R-2E) is a mutual fund focused on generating total return through income, capital preservation, and prudent risk management. As a corporate bond fund, it primarily invests at least 80% of its assets in investment-grade corporate debt securities, such as bonds and notes. The portfolio typically includes U.S. corporate bonds, U.S. Treasury securities, asset-backed securities, and a limited allocation to non-U.S. government and agency bonds, all denominated in U.S. dollars. Notably, the fund aims to maintain a credit quality of BBB- (or equivalent) or better, ensuring investments stay within the realm of investment-grade debt. Managed with a disciplined, research-driven approach, the fund is intended for investors seeking stable income, moderate capital appreciation, and relative resilience to market volatility. While the majority of portfolio holdings are domestic, the fund has the flexibility to invest in securities economically tied to countries outside the United States. With a broad diversification across over 700 holdings, the fund plays a vital role for institutional retirement plans and individual investors looking for exposure to high-quality corporate credit in their fixed income allocations.
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