Bond Fund Of America Duration

Investors seeking a well diversified bond fund to balance their overall portfolios.

Bond fund of america duration. Retirement liabilities have a duration too. Ratio of a fund model s return during periods when the index was down divided by the return of the index during those periods. Us fund short term bond. Individuals who seek a diversified approach to fixed income investing through a bond fund with a proven track record.

Bond statistic effective duration in years. 1 65 effective duration. Effective april 1 2020 david lee a two decade industry veteran and corporate credit specialist retired from capital group and is no longer a portfolio manager on american funds bond fund of. American century short duration is backed by.

Effective duration is a duration calculation for bonds that takes into account that expected cash flows will fluctuate as interest rates change. In the 12 months ended june 25 it was up 10 3. 1 89 years usd. Bond ratings which typically range from aaa aaa highest to d lowest are assigned by credit rating agencies such as standard poor s moody s and or fitch as an indication of an issuer s creditworthiness.

Income oriented investors who want a solid core holding for their financial programs. Bond funds have the same interest rate inflation and credit risks that are associated with the underlying bonds owned by the fund. Abndx its flagship fixed income product launched in 1974. The bond fund of america may be appropriate for.

Effective duration is a duration calculation for bonds that takes into account that expected cash flows will fluctuate as interest rates change. Take the 59 billion bond fund of america ticker. A bond fund which is a collection of bonds also has a duration equal to the average duration of each holding weighted by its proportion in the fund.