American Funds Tax-Exempt Preservation Portfolio Class F-1

Frequently Asked Questions About TEPFX

What does TEPFX invest in?

This fund, the American Funds Tax-Exempt Preservation Portfolio Class F-1, has a primary objective: to generate income that is exempt from regular federal taxes, without compromising the safety of your original investment. It achieves this by strategically allocating its capital among a variety of bond-focused funds also managed by American Funds. These underlying portfolios principally aim to produce income by investing in diverse debt instruments. Such holdings can include securities guaranteed or issued by the U.S. government, debt from federal agencies and related entities, and various mortgage-backed or other asset-backed securities.

What is the expense ratio of TEPFX?

American Funds Tax-Exempt Preservation Portfolio Class F-1 (TEPFX) charges an expense ratio of 0.63%. This is the annual fee deducted from fund assets to cover management and operations.

What is TEPFX's dividend yield?

TEPFX's trailing-twelve-month yield is 2.56%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of TEPFX?

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

What is the credit quality of TEPFX?

TEPFX'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 TEPFX?

Yield to maturity (YTM) is the total return you'd earn from TEPFX if every bond in the portfolio is held to maturity at the current price. TEPFX'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.