American Funds Preservation Portfolio Class F-1

Frequently Asked Questions About PPVFX

What does PPVFX invest in?

The primary goal of this investment vehicle is to deliver a consistent stream of income while simultaneously safeguarding the original capital invested. It achieves this by strategically allocating its assets across various fixed-income portfolios managed by American Funds. Specifically, the fund's underlying holdings are primarily focused on investments that aim to generate current income through a range of bonds and other debt instruments. These underlying funds have the flexibility to hold debt obligations guaranteed by the U.S. government, securities issued by federal agencies, and instruments backed by mortgages or other types of assets. The investment advisor foresees that including mortgage-backed securities (MBS) and asset-backed securities (ABS) will be instrumental in boosting the fund's income generation capabilities.

What is the expense ratio of PPVFX?

American Funds Preservation Portfolio Class F-1 (PPVFX) charges an expense ratio of 0.66%. This is the annual fee deducted from fund assets to cover management and operations.

What is PPVFX's dividend yield?

PPVFX's trailing-twelve-month yield is 3.80%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PPVFX?

Effective duration measures PPVFX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. PPVFX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of PPVFX?

PPVFX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of PPVFX?

Yield to maturity (YTM) is the total return you'd earn from PPVFX if every bond in the portfolio is held to maturity at the current price. PPVFX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.