INVESTMENTS

Quarterly commentaries

Hear from our investment professionals about recent market activity in equities, fixed income and model portfolios.

Equities

Investors should consider remaining balanced with geographic diversity, exposure to dividend payers and growth that isn’t too concentrated.

As of June 30, 2024

Key takeaways for the quarter

  • Global equity markets added to year-to-date gains in the second quarter, with 74% of our equity, equity income and balanced funds delivering positive returns on the quarter. (Includes 27 total vehicles based on the F-2 share class for American Funds and returns based on market price for Capital Group ETFs.)
  • With our bottom-up lens, differences in returns across companies and regions imply a broadening of investors' opportunity set, which we view as a positive setup for long-term equity investors.

Fixed income

We believe important portfolio roles for fixed income funds include income, inflation protection, capital preservation and diversification from equities.

As of June 30, 2024

Key takeaways for the quarter

  • In the second quarter, fixed income markets were generally positive despite higher yields as the U.S. Federal Reserve pushed back its expectations for rate cuts. Below-investment-grade (BB/Ba and below) debt was a notable exception, with both high-yield corporate bonds and municipals delivering the strongest results for the quarter.
  • Over longer term periods, the majority of fixed income American Funds (Class F-2) continued to deliver positive absolute returns and positive relative returns compared to their primary benchmarks.

Model portfolios

Model portfolio asset allocation remains focused on long-term goals amid uncertainty about elections and the timing of interest rate cuts.

As of June 30, 2024

Key takeaways for the quarter

  • The Portfolio Solutions Committee and Capital Solutions Group adjusted strategic asset allocations over the quarter, driven by ongoing research and updated long-term return expectations.
  • Recent strategic changes reflect longer term opportunities in dividend payers outside the U.S. as well as higher income areas such as emerging markets debt.

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Capital Group offers a wide variety of investments, all backed by deep fundamental research and driven by clients' real-life goals.

Past results are not predictive of results in future periods.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from a financial professional and should be read carefully before investing.

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This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinion of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

Effective July 1, 2024, American Funds Distributors, Inc. was renamed Capital Client Group, Inc.

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