About CAAFX
Short-Term Bond Fund of America, 529-A is a mutual fund designed to deliver current income while emphasizing capital preservation through a high-quality, short-duration fixed income portfolio. The fund invests primarily in U.S. government securities, asset-backed and mortgage-backed obligations, and investment-grade corporate bonds, maintaining an effective duration of about two years to limit interest rate sensitivity. Its portfolio is predominantly U.S. bonds with a smaller allocation to non-U.S. issues and cash, and it distributes income on a monthly basis. Notable portfolio components include substantial exposure to U.S. Treasury notes, asset-backed securities, and agency mortgage-backed securities, reflecting a conservative credit profile aligned with its short-term mandate. The strategy is actively managed, with a relatively high turnover rate, and targets high-quality debt consistent with prospectus-based maturity and credit standards. With a long operating history since 2006 and sizable assets under management, the fund plays a role as a core short-duration holding for investors seeking stability and steady income within 529 plan structures.
Fund Family Capital Group
Category Short-Term Bond
Performance Rating Below Average
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol CAAFX
Share Class Class 529-a
Index Bloomberg US Govt/Credit 1-3 Y Ex BBB TR
CAAFX had a total return of 2.37% in the past year, including dividends. Since the fund's
inception, the average annual return has been 1.59%.
