About CFAMX
American Funds Short-Term Bond Fund of America 529 F-1 is an actively managed fixed income mutual fund designed for 529 college savings accounts, aiming to provide current income while adhering to short maturity and high credit quality standards. The portfolio is concentrated in investment-grade, short-duration bonds, with a core allocation to U.S. bonds and additional exposure to non-U.S. bonds and cash equivalents to enhance liquidity and manage risk. Its effective duration of about two years positions the fund to reduce interest-rate sensitivity relative to intermediate-term strategies, aligning it with the short-term bond category. The fund distributes income monthly and typically holds a broad mix of securities, including U.S. Treasuries, agency mortgage-backed securities, asset-backed obligations, and high-quality corporates, reflecting a diversified approach to principal preservation and income generation. Managed by Capital Group’s multi-manager team, the strategy emphasizes rigorous credit research and liquidity management for education-focused investors seeking a conservative bond allocation within a 529 plan structure. Established in 2006, it has grown to a sizable asset base, underscoring its role as a staple short-duration option in the fixed income market.
Fund Family Capital Group
Category Short-Term Bond
Performance Rating Below Average
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol CFAMX
Share Class Class 529-f-1
Index Bloomberg US Govt/Credit 1-3 Y Ex BBB TR
CFAMX had a total return of 5.55% in the past year, including dividends. Since the fund's
inception, the average annual return has been 3.91%.
