About CGTAX
American Funds U.S. Government Securities Fund Class 529-A is a fixed-income mutual fund designed to provide a high level of current income while maintaining prudent investment risk. The fund primarily invests in high-quality, U.S. government-related securities, with a portfolio heavily allocated to U.S. Treasury bonds and notes, as well as mortgage-backed obligations. As of 2025, U.S. bonds represent the dominant component of its assets, typically exceeding 85%, with minimal to no exposure to equities or non-U.S. bonds. The fund's strategy includes an average duration of around 6.6 years, indicating moderate sensitivity to interest rate changes, and it pays monthly dividends to shareholders. Offered as a 529 plan share class, this fund is structured to support tax-advantaged college savings, making it suitable for those seeking stable, income-generating vehicles for educational investment accounts. Its consistent adherence to investing in government-backed securities positions it as a lower credit-risk option within the intermediate government bond category, appealing to investors focused on income and capital preservation in the context of long-term education planning.
Fund Family Capital Group
Category Intermediate Government
Performance Rating Average
Risk Rating Above Average
Stock Exchange NASDAQ
Ticker Symbol CGTAX
Share Class Class 529-a
Index Bloomberg U.S. Government Mortgage TR
CGTAX had a total return of 3.37% in the past year, including dividends.
Since the fund's inception, the average annual return has been 2.51%.
