Fund info

American Funds Short-Term Bond Fund of America R-5E is an actively managed mutual fund focused on generating current income while emphasizing capital preservation. The strategy invests primarily in high-quality, short-duration fixed income, including U.S. Treasury and agency securities, asset‑backed and mortgage‑backed obligations, and investment‑grade corporate bonds, with a stated preference for AA‑ or higher ratings and limited exposure to A‑rated issues at purchase. The portfolio’s short-term orientation and quality bias target lower volatility than intermediate- and long-duration bond funds, aiming to provide a step up in income relative to money market instruments. Recent portfolio snapshots show meaningful allocations to U.S. Treasury notes alongside securitized credit such as asset‑backed and mortgage‑backed securities, reflecting a diversified approach within high-quality sectors. The fund distributes income monthly and is overseen by Capital Research and Management Company, leveraging a multimanager process and research-driven risk controls. Its role in the market is to serve as a conservative core fixed-income holding for investors seeking stability, liquidity, and dependable income within a short-term bond category framework.