American Funds Mortgage Fund Class R-1 is a diversified mutual fund focused on generating current income while prioritizing the preservation of capital. The fund invests primarily in a portfolio of mortgage-backed securities, which typically make up more than three-quarters of its assets, providing exposure to both government and agency-backed mortgage markets. In addition to mortgage-backed holdings, the fund allocates a significant portion of its portfolio to U.S. Treasury bonds and notes, as well as a small allocation to asset-backed securities. This structure positions the fund within the intermediate U.S. government bond sector, making it relevant for investors and institutions seeking stable income streams and lower risk relative to more volatile asset classes. The fund’s risk profile is characterized by a moderate standard deviation and a beta lower than the overall bond market, reflecting its defensive investment approach. American Funds Mortgage Fund Class R-1 plays a notable role in the fixed-income market, supporting demand for mortgage and government securities, and is commonly utilized in retirement and conservative income-oriented investment strategies.
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