UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
Certified Shareholder Report of
Registered Management Investment Companies
Investment Company Act File Number: 811-22744
American Funds Corporate Bond Fund
(Exact Name of Registrant as Specified in Charter)
6455 Irvine Center Drive
Irvine, California 92618
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (949) 975-5000
Date of fiscal year end: May 31
Date of reporting period: November 30, 2020
Brian C. Janssen
American Funds Corporate Bond Fund
6455 Irvine Center Drive
Irvine, California 92618
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
American Funds
Semi-annual report |
 |
A research-driven
fund of high-quality
corporate bonds
American Funds Corporate Bond Fund seeks to provide maximum total return consistent with capital preservation and prudent risk management.
This fund is one of more than 40 offered by Capital Group, home of American Funds, one of the nation’s largest mutual fund families. For nearly 90 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 3.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com.
Here are total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2020 (the most recent calendar quarter-end):
| Cumulative | Average annual total return | ||
| Class A shares | total return | Lifetime | |
| 1 year | 5 years | (since 12/14/12) | |
| Reflecting 3.75% maximum sales charge | 8.80% | 6.33% | 4.84% |
The total annual fund operating expense ratio was 0.89% for Class A shares as of the prospectus dated August 1, 2020. The expense ratio is restated to reflect current fees. The net expense ratio is 0.85%.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently reimbursing a portion of other expenses. This reimbursement will be in effect through at least August 1, 2021. After that time, the adviser may elect at its discretion to extend, modify or terminate the reimbursement. Investment results and the net expense ratio shown reflect the reimbursement, without which the results would have been lower and the expenses would have been higher. Refer to the fund’s most recent prospectus for details. Visit capitalgroup.com for more information.
The fund’s 30-day yield for Class A shares as of December 31, 2020, reflecting the 3.75% maximum sales charge and calculated in accordance with the U.S. Securities and Exchange Commission formula, was 0.75% (0.73% without the reimbursement).
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Investing in bonds issued outside the U.S. may be subject to additional risks. They include currency fluctuations, political and social instability, differing securities regulations and accounting standards, higher transaction costs, possible changes in taxation, illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Shown in the table below are American Funds Corporate Bond Fund’s results for the six months ended November 30, 2020. Also shown are the results of its primary benchmark and its Lipper peer groups.
For additional information about the fund, its investment results, holdings and portfolio managers, visit capitalgroup.com/individual/investments/fund/BFCAX. You can also access information about Capital Group’s American Funds and read our insights about the markets, retirement, saving for college, investing fundamentals and more at capitalgroup.com.
Contents
| 1 | Results at a glance |
| 2 | Investment portfolio |
| 17 | Financial statements |
Results at a glance
For periods ended November 30, 2020, with all distributions reinvested
| Cumulative total returns | Average annual total returns | |||||||||||||||||||
| 6 months | 1 year | 3 years | 5 years | Lifetime (since 12/14/12) | ||||||||||||||||
| American Funds Corporate Bond Fund (Class A shares) | 4.64 | % | 12.90 | % | 7.84 | % | 6.91 | % | 5.35 | % | ||||||||||
| Bloomberg Barclays U.S. Corporate Investment Grade Index* | 6.22 | 9.76 | 7.23 | 6.48 | 4.79 | |||||||||||||||
| Lipper Corporate Debt Funds BBB-Rated Average† | 6.14 | 9.68 | 6.74 | 6.10 | 4.53 | |||||||||||||||
| Lipper Corporate Debt Funds A-Rated Average† | 4.96 | 9.00 | 6.23 | 5.47 | 4.08 | |||||||||||||||
| * | Source: Bloomberg Index Services Ltd. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
| † | Source: Refinitiv Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. |
Since the fund’s inception through July 29, 2016, certain fees, such as 12b-1 fees, were not charged on Class A shares. If these expenses had been deducted, results would have been lower.
| American Funds Corporate Bond Fund | 1 |
| Investment portfolio November 30, 2020 | unaudited |
| Industry sector diversification | Percent of net assets |
| Portfolio quality summary* | Percent of net assets | |||
| U.S. Treasury and agency† | 9.46 | % | ||
| AAA/Aaa | .98 | |||
| AA/Aa | 12.53 | |||
| A/A | 30.02 | |||
| BBB/Baa | 36.04 | |||
| Below investment grade | 3.49 | |||
| Short-term securities & other assets less liabilities | 7.48 | |||
| * | Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and/or Fitch. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. |
| † | These securities are guaranteed by the full faith and credit of the U.S. government. |
| Bonds, notes & other debt instruments 92.52% | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans 82.63% | ||||||||
| Financials 13.91% | ||||||||
| ACE INA Holdings Inc. 2.875% 2022 | $ | 1,205 | $ | 1,259 | ||||
| ACE INA Holdings Inc. 3.35% 2026 | 675 | 762 | ||||||
| Allstate Corp. 0.75% 2025 | 690 | 691 | ||||||
| Allstate Corp. 1.45% 2030 | 2,000 | 1,991 | ||||||
| Allstate Corp. 3.85% 2049 | 1,000 | 1,273 | ||||||
| American International Group, Inc. 2.50% 2025 | 1,500 | 1,613 | ||||||
| American International Group, Inc. 3.90% 2026 | 300 | 343 | ||||||
| American International Group, Inc. 3.40% 2030 | 2,110 | 2,409 | ||||||
| American International Group, Inc. 4.80% 2045 | 100 | 132 | ||||||
| American International Group, Inc. 4.375% 2050 | 2,140 | 2,785 | ||||||
| AON Corp. 2.20% 2022 | 2,126 | 2,201 | ||||||
| Banco Santander, SA 2.749% 2030 | 1,200 | 1,200 | ||||||
| Bank of America Corp. 1.197% 2026 (USD-SOFR + 1.01% on 10/24/2025)1 | 541 | 545 | ||||||
| Bank of America Corp. 1.898% 2031 (USD-SOFR + 1.53% on 7/23/2030)1 | 20,315 | 20,419 | ||||||
| Bank of America Corp. 1.922% 2031 (USD-SOFR + 1.37% on 10/24/2030)1 | 18,475 | 18,639 | ||||||
| Bank of America Corp. 2.676% 2041 (USD-SOFR + 1.93% on 6/19/2040)1 | 2,500 | 2,620 | ||||||
| Bank of Montreal, junior subordinated, 3.803% 2032 (USD Semi Annual 30/360 (vs. 3-month USD-LIBOR) + 1.432% on 12/15/2027)1,2 | 1,025 | 1,161 | ||||||
| Berkshire Hathaway Finance Corp. 4.20% 2048 | 813 | 1,095 | ||||||
| Berkshire Hathaway Finance Corp. 4.25% 2049 | 300 | 407 | ||||||
| Berkshire Hathaway Inc. 3.125% 2026 | 1,350 | 1,518 | ||||||
| Berkshire Hathaway Inc. 4.50% 2043 | 125 | 173 | ||||||
| Citigroup Inc. 2.312% 2022 (USD-SOFR + 0.867% on 11/4/2021)1 | 2,000 | 2,035 | ||||||
| Citigroup Inc. 2.572% 2031 (USD-SOFR + 2.107% on 6/3/2030)1 | 13,728 | 14,629 | ||||||
| Commonwealth Bank of Australia 3.61% 2034 (UST Yield Curve Rate T Note Constant Maturity 5-year + 2.05% on 9/12/2029)1,2 | 1,375 | 1,506 | ||||||
| Commonwealth Bank of Australia 3.61% 2034 (UST Yield Curve Rate T Note Constant Maturity 5-year + 2.05% on 9/12/2029)1 | 1,000 | 1,095 | ||||||
| Cooperatieve Rabobank UA 2.625% 20242 | 1,200 | 1,282 | ||||||
| Crédit Agricole SA 3.25% 20242 | 600 | 652 | ||||||
| Crédit Agricole SA 4.375% 20252 | 200 | 224 | ||||||
| 2 | American Funds Corporate Bond Fund |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Financials (continued) | ||||||||
| Crédit Agricole SA 1.907% 2026 (USD-SOFR + 1.676% on 6/16/2025)1,2 | $ | 350 | $ | 362 | ||||
| Credit Suisse AG (New York Branch), 2.95% 2025 | 1,275 | 1,395 | ||||||
| Credit Suisse Group AG 2.997% 2023 (3-month USD-LIBOR + 1.20% on 12/14/2022)1,2 | 650 | 680 | ||||||
| Credit Suisse Group AG 3.80% 2023 | 425 | 458 | ||||||
| Credit Suisse Group AG 4.194% 2031 (USD-SOFR + 3.73% on 4/1/2030)1,2 | 12,918 | 15,247 | ||||||
| Deutsche Bank AG 2.129% 2026 (USD-SOFR + 1.87% on 11/24/2025)1 | 6,165 | 6,244 | ||||||
| Deutsche Bank AG 3.547% 2031 (USD-SOFR + 3.043% on 9/18/2030)1 | 5,950 | 6,392 | ||||||
| Five Corners Funding Trust II 2.85% 20302 | 1,000 | 1,117 | ||||||
| GE Capital Funding, LLC 4.40% 20302 | 1,438 | 1,658 | ||||||
| Goldman Sachs Group, Inc. 5.25% 2021 | 680 | 702 | ||||||
| Goldman Sachs Group, Inc. (3-month USD-LIBOR + 1.17%) 1.391% 20263 | 425 | 432 | ||||||
| Goldman Sachs Group, Inc. 2.60% 2030 | 4,004 | 4,310 | ||||||
| Groupe BPCE SA 5.70% 20232 | 200 | 226 | ||||||
| Groupe BPCE SA 4.625% 20242 | 200 | 223 | ||||||
| Groupe BPCE SA 5.15% 20242 | 620 | 703 | ||||||
| Groupe BPCE SA 1.652% 2026 (USD-SOFR + 1.52% on 10/6/2025)1,2 | 9,525 | 9,696 | ||||||
| Hartford Financial Services Group, Inc. 2.80% 2029 | 1,770 | 1,942 | ||||||
| Hartford Financial Services Group, Inc. 3.60% 2049 | 300 | 360 | ||||||
| HSBC Holdings PLC 1.645% 2026 (USD-SOFR + 1.538% on 4/18/2025)1 | 6,000 | 6,089 | ||||||
| HSBC Holdings PLC 3.973% 2030 (3-month USD-LIBOR + 1.61% on 5/22/2029)1 | 4,565 | 5,251 | ||||||
| HSBC Holdings PLC 2.357% 2031 (USD-SOFR + 1.947% on 8/18/2030)1 | 11,861 | 12,232 | ||||||
| HSBC Holdings PLC 2.848% 20311 | 610 | 652 | ||||||
| Intercontinental Exchange, Inc. 3.00% 2060 | 2,985 | 3,191 | ||||||
| Intesa Sanpaolo SpA 3.25% 20242 | 700 | 749 | ||||||
| Intesa Sanpaolo SpA 3.875% 20282 | 657 | 726 | ||||||
| Intesa Sanpaolo SpA 4.00% 20292 | 400 | 450 | ||||||
| JPMorgan Chase & Co. 2.301% 2025 (USD-SOFR + 1.16% on 10/15/2024)1 | 2,908 | 3,076 | ||||||
| JPMorgan Chase & Co. 1.045% 2026 (USD-SOFR + 0.80% on 11/19/2025)1 | 11,921 | 11,993 | ||||||
| JPMorgan Chase & Co. 2.522% 2031 (USD-SOFR + 2.04% on 4/22/2030)1 | 7,734 | 8,282 | ||||||
| JPMorgan Chase & Co. 3.109% 2051 (USD-SOFR + 3.109% on 4/22/2050)1 | 1,861 | 2,088 | ||||||
| Lloyds Banking Group PLC 3.87% 2025 (UST Yield Curve Rate T Note Constant Maturity 1-year + 3.50% on 7/9/2024)1 | 3,710 | 4,070 | ||||||
| Lloyds Banking Group PLC 3.75% 2027 | 213 | 240 | ||||||
| Lloyds Banking Group PLC 4.375% 2028 | 590 | 699 | ||||||
| Lloyds Banking Group PLC 4.55% 2028 | 830 | 1,003 | ||||||
| Marsh & McLennan Companies, Inc. 4.375% 2029 | 480 | 587 | ||||||
| Marsh & McLennan Companies, Inc. 2.25% 2030 | 500 | 537 | ||||||
| Marsh & McLennan Companies, Inc. 4.90% 2049 | 850 | 1,255 | ||||||
| MetLife, Inc. 4.55% 2030 | 2,670 | 3,355 | ||||||
| MetLife, Inc. 4.60% 2046 | 100 | 137 | ||||||
| Metropolitan Life Global Funding I 2.50% 20202 | 150 | 150 | ||||||
| Metropolitan Life Global Funding I 1.95% 20212 | 850 | 861 | ||||||
| Metropolitan Life Global Funding I 2.40% 20212 | 250 | 250 | ||||||
| Metropolitan Life Global Funding I 3.45% 20212 | 150 | 154 | ||||||
| Metropolitan Life Global Funding I 2.40% 20222 | 480 | 496 | ||||||
| Metropolitan Life Global Funding I 1.95% 20232 | 3,200 | 3,307 | ||||||
| Metropolitan Life Global Funding I 3.60% 20242 | 400 | 436 | ||||||
| Metropolitan Life Global Funding I 0.95% 20252 | 5,728 | 5,801 | ||||||
| Metropolitan Life Global Funding I 3.45% 20262 | 150 | 172 | ||||||
| Metropolitan Life Global Funding I 3.00% 20272 | 200 | 223 | ||||||
| Metropolitan Life Global Funding I 3.05% 20292 | 750 | 851 | ||||||
| Mitsubishi UFJ Financial Group, Inc. 3.195% 2029 | 2,190 | 2,469 | ||||||
| Morgan Stanley 3.70% 2024 | 1,260 | 1,401 | ||||||
| Morgan Stanley 2.188% 2026 (USD-SOFR + 1.99% on 4/28/2025)1 | 529 | 558 | ||||||
| Morgan Stanley 1.794% 2032 (USD-SOFR + 1.034% on 2/13/2031)1 | 5,700 | 5,747 | ||||||
| National Australia Bank Ltd. 2.332% 20302 | 1,100 | 1,111 | ||||||
| Nationwide Building Society 3.96% 2030 (3-month USD-LIBOR + 1.855% on 7/18/2029)1,2 | 400 | 464 | ||||||
| Nationwide Building Society 4.125% 2032 (5-year USD-ICE Swap + 1.849% on 10/18/2027)1,2 | 500 | 552 | ||||||
| New York Life Global Funding 1.70% 20212 | 900 | 910 | ||||||
| New York Life Global Funding 2.00% 20212 | 800 | 805 | ||||||
| New York Life Global Funding 2.30% 20222 | 1,150 | 1,186 | ||||||
| New York Life Global Funding 0.95% 20252 | 6,592 | 6,679 | ||||||
| New York Life Global Funding 3.00% 20282 | 100 | 112 | ||||||
| New York Life Global Funding 1.20% 20302 | 4,535 | 4,412 | ||||||
| New York Life Insurance Company 3.75% 20502 | 451 | 535 | ||||||
| American Funds Corporate Bond Fund | 3 |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Financials (continued) | ||||||||
| Nuveen, LLC 4.00% 20282 | $ | 220 | $ | 264 | ||||
| PNC Financial Services Group, Inc. 2.20% 2024 | 1,000 | 1,059 | ||||||
| PNC Financial Services Group, Inc. 2.55% 2030 | 1,000 | 1,095 | ||||||
| Progressive Corp. 3.20% 2030 | 710 | 824 | ||||||
| Prudential Financial, Inc. 3.905% 2047 | 350 | 425 | ||||||
| Prudential Financial, Inc. 4.35% 2050 | 250 | 323 | ||||||
| Prudential Financial, Inc. 3.70% 2051 | 1,225 | 1,479 | ||||||
| Prudential Financial, Inc., junior subordinated, 5.70% 2048 (3-month USD-LIBOR + 2.665% on 9/15/2028)1 | 500 | 581 | ||||||
| Rabobank Nederland 4.375% 2025 | 500 | 572 | ||||||
| Royal Bank of Canada 1.15% 2025 | 969 | 990 | ||||||
| Royal Bank of Scotland PLC 3.073% 2028 (UST Yield Curve Rate T Note Constant Maturity 1-year + 2.55% on 5/22/2027)1 | 800 | 865 | ||||||
| Royal Bank of Scotland PLC 4.445% 2030 (3-month USD-LIBOR + 1.871% on 5/5/2029)1 | 1,250 | 1,482 | ||||||
| Toronto-Dominion Bank 2.65% 2024 | 500 | 535 | ||||||
| Travelers Companies, Inc. 4.00% 2047 | 105 | 137 | ||||||
| Travelers Companies, Inc. 4.05% 2048 | 100 | 132 | ||||||
| Travelers Companies, Inc. 4.10% 2049 | 380 | 502 | ||||||
| Travelers Companies, Inc. 2.55% 2050 | 603 | 637 | ||||||
| U.S. Bank NA 3.00% 2021 | 1,334 | 1,337 | ||||||
| UBS Group AG 1.364% 2027 (UST Yield Curve Rate T Note Constant Maturity 5-year + 1.08% on 1/30/2026)1,2 | 2,600 | 2,628 | ||||||
| UniCredit SpA 5.861% 2032 (5-year USD-ICE Swap + 3.703% on 6/19/2027)1,2 | 1,285 | 1,420 | ||||||
| UniCredit SpA 5.459% 2035 (5-year USD-ICE Swap + 4.75% on 6/30/2030)1,2 | 200 | 219 | ||||||
| Wells Fargo & Company 3.196% 2027 (3-month USD-LIBOR + 1.17% on 6/17/2026)1 | 1,351 | 1,494 | ||||||
| Wells Fargo & Company 2.572% 2031 (3-month USD-LIBOR + 1.00% on 2/11/2030)1 | 9,701 | 10,297 | ||||||
| Wells Fargo & Company 3.068% 2041 (USD-SOFR + 2.53% on 4/30/2040)1 | 3,395 | 3,705 | ||||||
| Westpac Banking Corp. 2.894% 2030 (UST Yield Curve Rate T Note Constant Maturity 5-year + 1.35% on 2/4/2025)1 | 5,378 | 5,613 | ||||||
| Westpac Banking Corp. 4.11% 2034 (UST Yield Curve Rate T Note Constant Maturity 5-year + 2.00% on 7/24/2029)1 | 2,128 | 2,420 | ||||||
| Westpac Banking Corp. 2.668% 2035 (UST Yield Curve Rate T Note Constant Maturity 5-year + 1.75% on 11/15/2030)1 | 1,225 | 1,267 | ||||||
| Willis North America Inc. 2.95% 2029 | 913 | 1,011 | ||||||
| Willis North America Inc. 3.875% 2049 | 500 | 618 | ||||||
| 287,041 | ||||||||
| Utilities 13.67% | ||||||||
| AEP Transmission Co. LLC 3.15% 2049 | 65 | 72 | ||||||
| AEP Transmission Co. LLC 3.80% 2049 | 200 | 247 | ||||||
| AEP Transmission Co. LLC 3.65% 2050 | 450 | 550 | ||||||
| Alliant Energy Finance LLC 4.25% 20282 | 377 | 436 | ||||||
| Ameren Corp. 3.50% 2031 | 2,695 | 3,124 | ||||||
| American Electric Power Company, Inc. 3.65% 2021 | 1,600 | 1,653 | ||||||
| American Electric Power Company, Inc. 1.00% 2025 | 1,100 | 1,105 | ||||||
| American Electric Power Company, Inc. 2.30% 2030 | 500 | 522 | ||||||
| Avangrid, Inc. 3.20% 2025 | 1,950 | 2,136 | ||||||
| CenterPoint Energy, Inc. 2.95% 2030 | 2,925 | 3,204 | ||||||
| CenterPoint Energy, Inc. 2.90% 2050 | 375 | 409 | ||||||
| CMS Energy Corp. 3.45% 2027 | 750 | 846 | ||||||
| CMS Energy Corp. 4.875% 2044 | 375 | 497 | ||||||
| Connecticut Light and Power Co. 3.20% 2027 | 1,125 | 1,256 | ||||||
| Consumers Energy Co. 3.80% 2028 | 81 | 96 | ||||||
| Consumers Energy Co. 3.10% 2050 | 3,165 | 3,675 | ||||||
| Dominion Resources, Inc. 3.30% 2025 | 1,207 | 1,334 | ||||||
| Dominion Resources, Inc., junior subordinated, 3.071% 20241 | 1,000 | 1,082 | ||||||
| Duke Energy Corp. 0.90% 2025 | 1,050 | 1,055 | ||||||
| Duke Energy Florida, LLC 2.50% 2029 | 500 | 545 | ||||||
| Duke Energy Ohio, Inc. 2.125% 2030 | 900 | 949 | ||||||
| Duke Energy Progress, LLC 2.50% 2050 | 1,445 | 1,474 | ||||||
| Edison International 3.55% 2024 | 1,821 | 1,936 | ||||||
| Edison International 4.95% 2025 | 1,330 | 1,488 | ||||||
| Edison International 5.75% 2027 | 2,468 | 2,891 | ||||||
| Edison International 4.125% 2028 | 7,982 | 8,745 | ||||||
| EDP Finance BV 5.25% 20212 | 400 | 403 | ||||||
| Emera Inc. 6.75% 2076 (3-month USD-LIBOR + 5.44% on 6/15/2026)1 | 1,167 | 1,341 | ||||||
| 4 | American Funds Corporate Bond Fund |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Utilities (continued) | ||||||||
| Enel Società per Azioni 8.75% 2073 (USD Semi Annual 30/360 (vs. 3-month USD-LIBOR) + 5.88% on 9/24/2023)1,2 | $ | 1,000 | $ | 1,172 | ||||
| Entergy Corp. 2.95% 2026 | 599 | 662 | ||||||
| Entergy Corp. 1.60% 2030 | 1,300 | 1,318 | ||||||
| Entergy Corp. 2.80% 2030 | 1,463 | 1,593 | ||||||
| Entergy Corp. 3.75% 2050 | 1,050 | 1,248 | ||||||
| Entergy Louisiana, LLC 2.90% 2051 | 850 | 923 | ||||||
| Entergy Texas, Inc. 1.75% 2031 | 4,050 | 4,073 | ||||||
| Evergy Metro, Inc. 2.25% 2030 | 1,300 | 1,383 | ||||||
| Exelon Corp. 4.70% 2050 | 200 | 271 | ||||||
| FirstEnergy Corp. 2.85% 2022 (3.10% on 1/15/2021)1 | 5,389 | 5,518 | ||||||
| FirstEnergy Corp. 2.05% 2025 | 275 | 276 | ||||||
| FirstEnergy Corp. 1.60% 2026 | 4,825 | 4,699 | ||||||
| FirstEnergy Corp. 3.90% 2027 (4.15% on 1/15/2021)1 | 21,708 | 24,022 | ||||||
| FirstEnergy Corp. 3.50% 20282 | 1,000 | 1,065 | ||||||
| FirstEnergy Corp. 2.25% 2030 | 8,830 | 8,439 | ||||||
| FirstEnergy Corp. 2.65% 2030 | 14,891 | 14,715 | ||||||
| FirstEnergy Corp. 7.375% 2031 | 4,164 | 5,687 | ||||||
| Florida Power & Light Company 2.85% 2025 | 3,500 | 3,820 | ||||||
| Florida Power & Light Company 3.15% 2049 | 500 | 592 | ||||||
| Gulf Power Co. 3.30% 2027 | 1,000 | 1,120 | ||||||
| Interstate Power and Light Co. 2.30% 2030 | 1,000 | 1,067 | ||||||
| IPALCO Enterprises, Inc. 3.70% 2024 | 400 | 436 | ||||||
| Jersey Central Power & Light Co. 4.30% 20262 | 1,085 | 1,210 | ||||||
| Metropolitan Edison Co. 4.30% 20292 | 200 | 229 | ||||||
| Mississippi Power Co. 3.95% 2028 | 604 | 698 | ||||||
| Mississippi Power Co. 4.25% 2042 | 1,450 | 1,785 | ||||||
| National Grid PLC 3.15% 20272 | 265 | 294 | ||||||
| NextEra Energy Capital Holdings, Inc. 2.75% 2025 | 3,391 | 3,678 | ||||||
| NextEra Energy Capital Holdings, Inc. 2.75% 2029 | 2,000 | 2,181 | ||||||
| Niagara Mohawk Power Corp. 3.508% 20242 | 300 | 328 | ||||||
| Northern States Power Co. 2.60% 2051 | 77 | 82 | ||||||
| Oncor Electric Delivery Company LLC 0.55% 20252 | 4,050 | 4,045 | ||||||
| Pacific Gas and Electric Co. 3.25% 2023 | 1,000 | 1,040 | ||||||
| Pacific Gas and Electric Co. 2.95% 2026 | 6,432 | 6,747 | ||||||
| Pacific Gas and Electric Co. 3.15% 2026 | 9,025 | 9,546 | ||||||
| Pacific Gas and Electric Co. 2.10% 2027 | 6,290 | 6,353 | ||||||
| Pacific Gas and Electric Co. 3.30% 2027 | 5,775 | 6,143 | ||||||
| Pacific Gas and Electric Co. 3.30% 2027 | 4,391 | 4,644 | ||||||
| Pacific Gas and Electric Co. 4.65% 2028 | 8,943 | 10,073 | ||||||
| Pacific Gas and Electric Co. 4.55% 2030 | 2,000 | 2,288 | ||||||
| Pacific Gas and Electric Co. 2.50% 2031 | 14,165 | 14,297 | ||||||
| Pacific Gas and Electric Co. 3.30% 2040 | 250 | 254 | ||||||
| Pacific Gas and Electric Co. 3.75% 2042 | 500 | 503 | ||||||
| PacifiCorp., First Mortgage Bonds, 3.50% 2029 | 1,000 | 1,158 | ||||||
| Peco Energy Co. 2.80% 2050 | 1,800 | 1,932 | ||||||
| Progress Energy, Inc. 7.00% 2031 | 2,705 | 3,862 | ||||||
| Public Service Company of Colorado 3.80% 2047 | 2,364 | 2,939 | ||||||
| Public Service Electric and Gas Co. 3.65% 2028 | 2,000 | 2,320 | ||||||
| Public Service Electric and Gas Co. 2.05% 2050 | 850 | 793 | ||||||
| Public Service Enterprise Group Inc. 2.25% 2026 | 2,000 | 2,156 | ||||||
| Public Service Enterprise Group Inc. 1.60% 2030 | 4,000 | 3,954 | ||||||
| Puget Energy, Inc. 3.65% 2025 | 180 | 200 | ||||||
| San Diego Gas & Electric Co. 1.70% 2030 | 7,650 | 7,742 | ||||||
| San Diego Gas & Electric Co. 6.125% 2037 | 1,650 | 2,258 | ||||||
| San Diego Gas & Electric Co. 4.50% 2040 | 846 | 1,063 | ||||||
| San Diego Gas & Electric Co. 3.75% 2047 | 692 | 827 | ||||||
| San Diego Gas & Electric Co. 4.10% 2049 | 949 | 1,193 | ||||||
| San Diego Gas & Electric Co. 3.32% 2050 | 2,550 | 2,876 | ||||||
| Southern California Edison Co. 2.90% 2021 | 5,000 | 5,030 | ||||||
| Southern California Edison Co. 3.70% 2025 | 244 | 273 | ||||||
| Southern California Edison Co. 2.85% 2029 | 1,000 | 1,085 | ||||||
| Southern California Edison Co. 2.25% 2030 | 6,960 | 7,225 | ||||||
| Southern California Edison Co. 4.00% 2047 | 855 | 1,019 | ||||||
| Southern California Edison Co. 4.125% 2048 | 1,561 | 1,897 | ||||||
| Southern California Edison Co. 3.65% 2050 | 2,575 | 2,993 | ||||||
| Southern California Edison Co., Series C, 3.60% 2045 | 956 | 1,067 | ||||||
| American Funds Corporate Bond Fund | 5 |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Utilities (continued) | ||||||||
| Southern California Gas Company 2.55% 2030 | $ | 1,300 | $ | 1,405 | ||||
| The Connecticut Light and Power Co. 0.75% 2025 | 5,675 | 5,693 | ||||||
| Xcel Energy Inc. 3.35% 2026 | 5,712 | 6,408 | ||||||
| Xcel Energy Inc. 2.60% 2029 | 4,012 | 4,363 | ||||||
| Xcel Energy Inc. 3.40% 2030 | 1,000 | 1,152 | ||||||
| Xcel Energy Inc. 6.50% 2036 | 2,000 | 3,024 | ||||||
| Xcel Energy Inc. 3.50% 2049 | 650 | 769 | ||||||
| 282,264 | ||||||||
| Energy 10.45% | ||||||||
| Baker Hughes, a GE Co. 4.486% 2030 | 1,252 | 1,497 | ||||||
| Baker Hughes, a GE Co. 4.08% 2047 | 753 | 867 | ||||||
| BP Capital Markets America Inc. 1.749% 2030 | 2,571 | 2,591 | ||||||
| BP Capital Markets America Inc. 3.633% 2030 | 630 | 737 | ||||||
| BP Capital Markets America Inc. 2.772% 2050 | 593 | 589 | ||||||
| BP Capital Markets PLC 3.79% 2024 | 1,600 | 1,750 | ||||||
| BP Capital Markets PLC 3.41% 2026 | 1,750 | 1,963 | ||||||
| BP Capital Markets PLC 4.875% 2049 (UST Yield Curve Rate T Note Constant Maturity 5-year + 4.398% on 6/22/2030)1 | 990 | 1,094 | ||||||
| BP Capital Markets PLC 3.00% 2050 | 141 | 146 | ||||||
| Canadian Natural Resources Ltd. 2.95% 2023 | 1,495 | 1,556 | ||||||
| Canadian Natural Resources Ltd. 2.05% 2025 | 3,497 | 3,604 | ||||||
| Canadian Natural Resources Ltd. 3.85% 2027 | 5,095 | 5,635 | ||||||
| Canadian Natural Resources Ltd. 2.95% 2030 | 1,389 | 1,435 | ||||||
| Canadian Natural Resources Ltd. 4.95% 2047 | 548 | 669 | ||||||
| Cheniere Energy, Inc. 3.70% 2029 | 8,148 | 8,950 | ||||||
| Chevron Corp. 1.554% 2025 | 680 | 707 | ||||||
| Chevron Corp. 2.954% 2026 | 760 | 842 | ||||||
| Chevron Corp. 1.995% 2027 | 165 | 175 | ||||||
| Chevron Corp. 2.236% 2030 | 2,477 | 2,665 | ||||||
| Chevron Corp. 2.978% 2040 | 389 | 432 | ||||||
| Chevron Corp. 3.078% 2050 | 631 | 705 | ||||||
| Chevron USA Inc. 0.687% 2025 | 23,680 | 23,732 | ||||||
| Chevron USA Inc. 1.018% 2027 | 16,820 | 16,858 | ||||||
| Chevron USA Inc. 2.343% 2050 | 430 | 419 | ||||||
| Concho Resources Inc. 4.30% 2028 | 1,590 | 1,886 | ||||||
| Concho Resources Inc. 2.40% 2031 | 2,496 | 2,612 | ||||||
| Concho Resources Inc. 4.85% 2048 | 750 | 1,009 | ||||||
| Enbridge Energy Partners, LP 7.375% 2045 | 869 | 1,306 | ||||||
| Energy Transfer Operating, LP 2.90% 2025 | 1,501 | 1,559 | ||||||
| Energy Transfer Operating, LP 3.75% 2030 | 2,041 | 2,120 | ||||||
| Energy Transfer Operating, LP 5.00% 2050 | 11,821 | 12,578 | ||||||
| Energy Transfer Partners, LP 4.20% 2027 | 373 | 405 | ||||||
| Energy Transfer Partners, LP 6.125% 2045 | 125 | 141 | ||||||
| Energy Transfer Partners, LP 5.30% 2047 | 515 | 545 | ||||||
| Energy Transfer Partners, LP 6.00% 2048 | 2,673 | 3,009 | ||||||
| Energy Transfer Partners, LP 6.25% 2049 | 955 | 1,118 | ||||||
| Enterprise Products Operating LLC 2.80% 2030 | 848 | 920 | ||||||
| Enterprise Products Operating LLC 3.20% 2052 | 3,162 | 3,202 | ||||||
| EOG Resources, Inc. 4.375% 2030 | 1,541 | 1,881 | ||||||
| Equinor ASA 3.70% 2050 | 202 | 243 | ||||||
| Exxon Mobil Corp. 2.019% 2024 | 1,450 | 1,522 | ||||||
| Exxon Mobil Corp. 2.992% 2025 | 1,000 | 1,094 | ||||||
| Exxon Mobil Corp. 2.44% 2029 | 173 | 186 | ||||||
| Exxon Mobil Corp. 2.995% 2039 | 120 | 129 | ||||||
| Exxon Mobil Corp. 4.327% 2050 | 130 | 169 | ||||||
| Exxon Mobil Corp. 3.452% 2051 | 1,419 | 1,620 | ||||||
| Gray Oak Pipeline, LLC 3.45% 20272 | 1,945 | 2,003 | ||||||
| Kinder Morgan Energy Partners, LP 3.50% 2023 | 1,570 | 1,678 | ||||||
| Kinder Morgan, Inc. 3.15% 2023 | 610 | 641 | ||||||
| Kinder Morgan, Inc. 2.00% 2031 | 2,000 | 1,967 | ||||||
| Kinder Morgan, Inc. 5.20% 2048 | 401 | 499 | ||||||
| Kinder Morgan, Inc. 3.25% 2050 | 1,500 | 1,463 | ||||||
| MPLX LP 3.50% 2022 | 650 | 682 | ||||||
| MPLX LP 1.75% 2026 | 4,497 | 4,562 | ||||||
| MPLX LP 4.80% 2029 | 690 | 812 | ||||||
| MPLX LP 2.65% 2030 | 5,601 | 5,679 | ||||||
| 6 | American Funds Corporate Bond Fund |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Energy (continued) | ||||||||
| MPLX LP 5.50% 2049 | $ | 3,525 | $ | 4,389 | ||||
| ONEOK, Inc. 2.20% 2025 | 352 | 355 | ||||||
| ONEOK, Inc. 5.85% 2026 | 5,015 | 5,865 | ||||||
| ONEOK, Inc. 4.00% 2027 | 259 | 283 | ||||||
| ONEOK, Inc. 4.55% 2028 | 85 | 94 | ||||||
| ONEOK, Inc. 4.35% 2029 | 151 | 165 | ||||||
| ONEOK, Inc. 3.10% 2030 | 2,779 | 2,808 | ||||||
| ONEOK, Inc. 6.35% 2031 | 2,538 | 3,152 | ||||||
| ONEOK, Inc. 4.95% 2047 | 67 | 71 | ||||||
| ONEOK, Inc. 5.20% 2048 | 2,577 | 2,806 | ||||||
| ONEOK, Inc. 4.45% 2049 | 403 | 403 | ||||||
| ONEOK, Inc. 4.50% 2050 | 551 | 549 | ||||||
| ONEOK, Inc. 7.15% 2051 | 1,095 | 1,440 | ||||||
| Petróleos Mexicanos 6.875% 20252 | 4,215 | 4,411 | ||||||
| Phillips 66 3.90% 2028 | 1,586 | 1,807 | ||||||
| Phillips 66 2.15% 2030 | 516 | 516 | ||||||
| Pioneer Natural Resources Company 1.90% 2030 | 4,433 | 4,366 | ||||||
| Plains All American Pipeline, LP 3.80% 2030 | 1,317 | 1,378 | ||||||
| Sabine Pass Liquefaction, LLC 4.50% 20302 | 6,127 | 7,159 | ||||||
| Saudi Arabian Oil Co. 1.25% 20232 | 250 | 253 | ||||||
| Saudi Arabian Oil Co. 1.625% 20252 | 670 | 683 | ||||||
| Shell International Finance BV 2.375% 2025 | 1,250 | 1,339 | ||||||
| Shell International Finance BV 3.875% 2028 | 1,440 | 1,704 | ||||||
| Shell International Finance BV 2.375% 2029 | 700 | 751 | ||||||
| Shell International Finance BV 2.75% 2030 | 5,000 | 5,552 | ||||||
| Shell International Finance BV 3.125% 2049 | 480 | 528 | ||||||
| Shell International Finance BV 3.25% 2050 | 620 | 703 | ||||||
| Sunoco Logistics Operating Partners, LP 4.00% 2027 | 790 | 850 | ||||||
| Sunoco Logistics Operating Partners, LP 5.40% 2047 | 451 | 481 | ||||||
| Total Capital International 3.455% 2029 | 460 | 531 | ||||||
| Total Capital International 3.127% 2050 | 1,740 | 1,910 | ||||||
| Total SE 2.986% 2041 | 560 | 607 | ||||||
| Total SE 3.386% 2060 | 240 | 274 | ||||||
| TransCanada PipeLines Ltd. 4.10% 2030 | 6,582 | 7,702 | ||||||
| TransCanada PipeLines Ltd. 5.10% 2049 | 750 | 1,004 | ||||||
| Williams Companies, Inc. 3.50% 2030 | 6,266 | 6,949 | ||||||
| Williams Partners LP 4.50% 2023 | 2,000 | 2,211 | ||||||
| Williams Partners LP 3.90% 2025 | 165 | 182 | ||||||
| Williams Partners LP 6.30% 2040 | 248 | 324 | ||||||
| Williams Partners LP 5.10% 2045 | 165 | 199 | ||||||
| 215,612 | ||||||||
| Health care 7.80% | ||||||||
| Abbott Laboratories 3.40% 2023 | 1,556 | 1,689 | ||||||
| Abbott Laboratories 3.75% 2026 | 1,241 | 1,449 | ||||||
| AbbVie Inc. 2.95% 2026 | 362 | 401 | ||||||
| AbbVie Inc. 3.20% 2029 | 825 | 939 | ||||||
| AbbVie Inc. 4.75% 2045 | 100 | 131 | ||||||
| AbbVie Inc. 4.25% 2049 | 780 | 989 | ||||||
| Amgen Inc. 3.15% 2040 | 278 | 301 | ||||||
| Amgen Inc. 3.375% 2050 | 449 | 501 | ||||||
| AstraZeneca PLC 2.375% 2022 | 1,000 | 1,029 | ||||||
| AstraZeneca PLC 3.375% 2025 | 1,740 | 1,954 | ||||||
| AstraZeneca PLC 0.70% 2026 | 12,905 | 12,869 | ||||||
| AstraZeneca PLC 4.00% 2029 | 1,102 | 1,330 | ||||||
| AstraZeneca PLC 1.375% 2030 | 2,000 | 1,979 | ||||||
| Bayer US Finance II LLC 4.25% 20252 | 450 | 516 | ||||||
| Bayer US Finance II LLC 4.375% 20282 | 1,800 | 2,115 | ||||||
| Bayer US Finance II LLC 4.875% 20482 | 800 | 1,026 | ||||||
| Becton, Dickinson and Company 2.894% 2022 | 5,010 | 5,183 | ||||||
| Becton, Dickinson and Company 3.363% 2024 | 1,150 | 1,244 | ||||||
| Becton, Dickinson and Company 3.70% 2027 | 8,731 | 10,027 | ||||||
| Becton, Dickinson and Company 2.823% 2030 | 1,260 | 1,378 | ||||||
| Becton, Dickinson and Company 3.794% 2050 | 425 | 503 | ||||||
| Boston Scientific Corp. 3.375% 2022 | 700 | 730 | ||||||
| Boston Scientific Corp. 3.45% 2024 | 300 | 326 | ||||||
| Boston Scientific Corp. 3.75% 2026 | 470 | 534 | ||||||
| American Funds Corporate Bond Fund | 7 |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Health care (continued) | ||||||||
| Boston Scientific Corp. 2.65% 2030 | $ | 4,280 | $ | 4,599 | ||||
| Boston Scientific Corp. 4.70% 2049 | 415 | 566 | ||||||
| Centene Corp. 4.75% 2025 | 1,000 | 1,032 | ||||||
| Centene Corp. 4.625% 2029 | 2,470 | 2,711 | ||||||
| Centene Corp. 3.00% 2030 | 4,185 | 4,411 | ||||||
| Centene Corp. 3.375% 2030 | 1,963 | 2,061 | ||||||
| Cigna Corp. 3.75% 2023 | 266 | 288 | ||||||
| Cigna Corp. 4.375% 2028 | 1,160 | 1,395 | ||||||
| CVS Health Corp. 3.35% 2021 | 181 | 183 | ||||||
| CVS Health Corp. 4.10% 2025 | 481 | 545 | ||||||
| CVS Health Corp. 4.30% 2028 | 772 | 909 | ||||||
| CVS Health Corp. 1.75% 2030 | 2,500 | 2,503 | ||||||
| CVS Health Corp. 5.05% 2048 | 68 | 92 | ||||||
| Eli Lilly and Company 2.35% 2022 | 2,000 | 2,063 | ||||||
| Eli Lilly and Company 2.75% 2025 | 438 | 478 | ||||||
| GlaxoSmithKline PLC 2.875% 2022 | 1,514 | 1,570 | ||||||
| GlaxoSmithKline PLC 3.375% 2023 | 475 | 510 | ||||||
| GlaxoSmithKline PLC 3.00% 2024 | 1,115 | 1,205 | ||||||
| GlaxoSmithKline PLC 3.625% 2025 | 1,419 | 1,602 | ||||||
| GlaxoSmithKline PLC 3.875% 2028 | 211 | 251 | ||||||
| GlaxoSmithKline PLC 3.375% 2029 | 300 | 348 | ||||||
| HCA Inc. 4.125% 2029 | 1,000 | 1,156 | ||||||
| Medtronic, Inc. 3.50% 2025 | 62 | 70 | ||||||
| Merck & Co., Inc. 2.90% 2024 | 1,000 | 1,077 | ||||||
| Novartis Capital Corp. 1.75% 2025 | 3,478 | 3,654 | ||||||
| Novartis Capital Corp. 2.00% 2027 | 2,340 | 2,492 | ||||||
| Novartis Capital Corp. 2.20% 2030 | 3,438 | 3,718 | ||||||
| Partners HealthCare System, Inc 3.192% 2049 | 1,000 | 1,075 | ||||||
| Pfizer Inc. 3.00% 2021 | 657 | 671 | ||||||
| Pfizer Inc. 2.80% 2022 | 459 | 474 | ||||||
| Pfizer Inc. 3.20% 2023 | 2,102 | 2,268 | ||||||
| Pfizer Inc. 2.95% 2024 | 2,000 | 2,155 | ||||||
| Pfizer Inc. 2.75% 2026 | 191 | 211 | ||||||
| Regeneron Pharmaceuticals, Inc. 1.75% 2030 | 12,083 | 11,906 | ||||||
| Regeneron Pharmaceuticals, Inc. 2.80% 2050 | 4,290 | 4,229 | ||||||
| Shire PLC 3.20% 2026 | 2,824 | 3,157 | ||||||
| Takeda Pharmaceutical Company, Ltd. 4.40% 2023 | 4,263 | 4,736 | ||||||
| Takeda Pharmaceutical Company, Ltd. 5.00% 2028 | 1,245 | 1,551 | ||||||
| Takeda Pharmaceutical Company, Ltd. 2.05% 2030 | 4,214 | 4,311 | ||||||
| Takeda Pharmaceutical Company, Ltd. 3.025% 2040 | 645 | 685 | ||||||
| Teva Pharmaceutical Finance Co. BV 2.80% 2023 | 5,365 | 5,280 | ||||||
| Teva Pharmaceutical Finance Co. BV 3.15% 2026 | 615 | 584 | ||||||
| Teva Pharmaceutical Finance Co. BV 4.10% 2046 | 1,650 | 1,436 | ||||||
| Thermo Fisher Scientific Inc. 4.497% 2030 | 1,208 | 1,517 | ||||||
| UnitedHealth Group Inc. 2.125% 2021 | 100 | 101 | ||||||
| UnitedHealth Group Inc. 2.375% 2024 | 1,055 | 1,125 | ||||||
| UnitedHealth Group Inc. 3.50% 2024 | 845 | 926 | ||||||
| UnitedHealth Group Inc. 3.75% 2025 | 400 | 455 | ||||||
| UnitedHealth Group Inc. 2.875% 2029 | 1,155 | 1,310 | ||||||
| UnitedHealth Group Inc. 2.00% 2030 | 2,000 | 2,128 | ||||||
| UnitedHealth Group Inc. 4.45% 2048 | 1,220 | 1,710 | ||||||
| UnitedHealth Group Inc. 2.90% 2050 | 1,000 | 1,111 | ||||||
| Upjohn Inc. 2.70% 20302 | 6,011 | 6,385 | ||||||
| Upjohn Inc. 3.85% 20402 | 783 | 884 | ||||||
| Upjohn Inc. 4.00% 20502 | 5,772 | 6,599 | ||||||
| Zimmer Holdings, Inc. 3.15% 2022 | 400 | 413 | ||||||
| Zimmer Holdings, Inc. 3.70% 2023 | 925 | 987 | ||||||
| 161,012 | ||||||||
| Communication services 7.12% | ||||||||
| Alphabet Inc. 1.10% 2030 | 9,090 | 9,027 | ||||||
| Alphabet Inc. 1.90% 2040 | 815 | 808 | ||||||
| Alphabet Inc. 2.05% 2050 | 355 | 346 | ||||||
| Alphabet Inc. 2.25% 2060 | 1,700 | 1,691 | ||||||
| AT&T Inc. 2.30% 2027 | 1,600 | 1,698 | ||||||
| AT&T Inc. 1.65% 2028 | 3,500 | 3,555 | ||||||
| AT&T Inc. 2.75% 2031 | 5,453 | 5,803 | ||||||
| 8 | American Funds Corporate Bond Fund |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Communication services (continued) | ||||||||
| AT&T Inc. 2.25% 2032 | $ | 6,680 | $ | 6,775 | ||||
| AT&T Inc. 3.30% 2052 | 500 | 498 | ||||||
| AT&T Inc. 3.50% 20532 | 6,848 | 7,047 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 4.50% 2024 | 1,500 | 1,668 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.05% 2029 | 1,000 | 1,212 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 2.80% 2031 | 5,139 | 5,441 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 2.30% 2032 | 1,200 | 1,204 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.125% 2049 | 612 | 752 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 4.80% 2050 | 420 | 505 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 3.70% 2051 | 3,640 | 3,828 | ||||||
| Comcast Corp. 3.10% 2025 | 2,100 | 2,311 | ||||||
| Comcast Corp. 3.95% 2025 | 1,500 | 1,721 | ||||||
| Comcast Corp. 4.15% 2028 | 1,000 | 1,205 | ||||||
| Comcast Corp. 2.65% 2030 | 1,080 | 1,180 | ||||||
| Comcast Corp. 1.50% 2031 | 4,300 | 4,282 | ||||||
| Comcast Corp. 1.95% 2031 | 2,419 | 2,500 | ||||||
| Comcast Corp. 3.75% 2040 | 67 | 82 | ||||||
| Comcast Corp. 4.00% 2047 | 200 | 254 | ||||||
| Comcast Corp. 4.00% 2048 | 290 | 368 | ||||||
| Comcast Corp. 3.45% 2050 | 480 | 568 | ||||||
| Comcast Corp. 2.80% 2051 | 3,200 | 3,362 | ||||||
| Comcast Corp. 2.45% 2052 | 2,000 | 1,970 | ||||||
| Cox Communications, Inc. 1.80% 20302 | 4,592 | 4,612 | ||||||
| Cox Communications, Inc. 2.95% 20502 | 1,495 | 1,545 | ||||||
| Discovery Communications, Inc. 3.625% 2030 | 952 | 1,087 | ||||||
| Discovery Communications, Inc. 4.65% 2050 | 1,032 | 1,271 | ||||||
| NBCUniversal Enterprise, Inc., junior subordinated, 5.25% 20492 | 2,035 | 2,078 | ||||||
| T-Mobile US, Inc. 1.50% 20262 | 1,200 | 1,220 | ||||||
| T-Mobile US, Inc. 3.75% 20272 | 1,200 | 1,360 | ||||||
| T-Mobile US, Inc. 2.05% 20282 | 3,950 | 4,069 | ||||||
| T-Mobile US, Inc. 3.875% 20302 | 8,011 | 9,198 | ||||||
| T-Mobile US, Inc. 2.55% 20312 | 8,295 | 8,670 | ||||||
| T-Mobile US, Inc. 3.00% 20412 | 423 | 436 | ||||||
| T-Mobile US, Inc. 3.30% 20512 | 7,655 | 8,041 | ||||||
| Verizon Communications Inc. 0.85% 2025 | 1,700 | 1,709 | ||||||
| Verizon Communications Inc. 3.00% 2027 | 1,975 | 2,196 | ||||||
| Verizon Communications Inc. 4.329% 2028 | 4,984 | 6,050 | ||||||
| Verizon Communications Inc. 3.875% 2029 | 225 | 265 | ||||||
| Verizon Communications Inc. 4.016% 2029 | 1,004 | 1,196 | ||||||
| Verizon Communications Inc. 3.15% 2030 | 3,695 | 4,160 | ||||||
| Verizon Communications Inc. 1.75% 2031 | 5,800 | 5,845 | ||||||
| Verizon Communications Inc. 4.272% 2036 | 559 | 701 | ||||||
| Verizon Communications Inc. 2.65% 2040 | 500 | 515 | ||||||
| Verizon Communications Inc. 3.85% 2042 | 206 | 249 | ||||||
| Verizon Communications Inc. 2.875% 2050 | 3,729 | 3,912 | ||||||
| Verizon Communications Inc. 2.987% 20562 | 89 | 94 | ||||||
| Verizon Communications Inc. 3.00% 2060 | 500 | 530 | ||||||
| Vodafone Group PLC 4.25% 2050 | 2,450 | 3,009 | ||||||
| Walt Disney Company 2.65% 2031 | 890 | 970 | ||||||
| Walt Disney Company 3.60% 2051 | 350 | 415 | ||||||
| 147,064 | ||||||||
| Consumer staples 7.08% | ||||||||
| Altria Group, Inc. 2.35% 2025 | 140 | 149 | ||||||
| Altria Group, Inc. 4.40% 2026 | 187 | 217 | ||||||
| Altria Group, Inc. 4.80% 2029 | 5,563 | 6,664 | ||||||
| Altria Group, Inc. 3.40% 2030 | 984 | 1,094 | ||||||
| Altria Group, Inc. 5.80% 2039 | 110 | 146 | ||||||
| Altria Group, Inc. 5.375% 2044 | 314 | 409 | ||||||
| Altria Group, Inc. 5.95% 2049 | 2,433 | 3,465 | ||||||
| Altria Group, Inc. 4.45% 2050 | 102 | 120 | ||||||
| Anheuser-Busch Co. / InBev Worldwide 4.90% 2046 | 4,195 | 5,488 | ||||||
| Anheuser-Busch InBev NV 4.15% 2025 | 1,000 | 1,136 | ||||||
| Anheuser-Busch InBev NV 4.00% 2028 | 200 | 235 | ||||||
| Anheuser-Busch InBev NV 4.75% 2029 | 1,531 | 1,880 | ||||||
| Anheuser-Busch InBev NV 3.50% 2030 | 2,216 | 2,564 | ||||||
| Anheuser-Busch InBev NV 4.90% 2031 | 250 | 319 | ||||||
| American Funds Corporate Bond Fund | 9 |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Consumer staples (continued) | ||||||||
| Anheuser-Busch InBev NV 5.55% 2049 | $ | 889 | $ | 1,278 | ||||
| Anheuser-Busch InBev NV 4.50% 2050 | 1,257 | 1,578 | ||||||
| British American Tobacco International Finance PLC 1.668% 2026 | 986 | 1,005 | ||||||
| British American Tobacco PLC 2.789% 2024 | 900 | 962 | ||||||
| British American Tobacco PLC 3.215% 2026 | 705 | 774 | ||||||
| British American Tobacco PLC 3.557% 2027 | 5,146 | 5,721 | ||||||
| British American Tobacco PLC 4.70% 2027 | 180 | 211 | ||||||
| British American Tobacco PLC 2.259% 2028 | 7,488 | 7,734 | ||||||
| British American Tobacco PLC 4.906% 2030 | 4,186 | 5,038 | ||||||
| British American Tobacco PLC 2.726% 2031 | 5,140 | 5,296 | ||||||
| British American Tobacco PLC 4.54% 2047 | 2,567 | 2,895 | ||||||
| British American Tobacco PLC 4.758% 2049 | 1,041 | 1,202 | ||||||
| Coca-Cola Company 1.75% 2024 | 2,250 | 2,357 | ||||||
| Coca-Cola Company 1.00% 2028 | 645 | 645 | ||||||
| Coca-Cola Company 1.375% 2031 | 2,150 | 2,153 | ||||||
| Coca-Cola Company 2.50% 2051 | 1,023 | 1,063 | ||||||
| Conagra Brands, Inc. 4.30% 2024 | 2,900 | 3,236 | ||||||
| Conagra Brands, Inc. 4.60% 2025 | 1,615 | 1,882 | ||||||
| Conagra Brands, Inc. 1.375% 2027 | 2,710 | 2,738 | ||||||
| Conagra Brands, Inc. 5.30% 2038 | 31 | 42 | ||||||
| Conagra Brands, Inc. 5.40% 2048 | 617 | 890 | ||||||
| Constellation Brands, Inc. 2.65% 2022 | 600 | 624 | ||||||
| Constellation Brands, Inc. 4.25% 2023 | 457 | 497 | ||||||
| Constellation Brands, Inc. 3.60% 2028 | 200 | 228 | ||||||
| Constellation Brands, Inc. 2.875% 2030 | 2,873 | 3,154 | ||||||
| Constellation Brands, Inc. 4.10% 2048 | 200 | 245 | ||||||
| Constellation Brands, Inc. 3.75% 2050 | 518 | 610 | ||||||
| Costco Wholesale Corp. 2.30% 2022 | 150 | 154 | ||||||
| Costco Wholesale Corp. 2.75% 2024 | 150 | 162 | ||||||
| Costco Wholesale Corp. 1.60% 2030 | 2,000 | 2,056 | ||||||
| Keurig Dr Pepper Inc. 3.551% 2021 | 312 | 317 | ||||||
| Keurig Dr Pepper Inc. 4.057% 2023 | 637 | 692 | ||||||
| Keurig Dr Pepper Inc. 4.417% 2025 | 455 | 525 | ||||||
| Keurig Dr Pepper Inc. 4.597% 2028 | 591 | 716 | ||||||
| Keurig Dr Pepper Inc. 3.20% 2030 | 1,090 | 1,235 | ||||||
| Keurig Dr Pepper Inc. 5.085% 2048 | 450 | 635 | ||||||
| Keurig Dr Pepper Inc. 3.80% 2050 | 2,619 | 3,165 | ||||||
| Kimberly-Clark Corp. 1.05% 2027 | 2,315 | 2,342 | ||||||
| Kimberly-Clark Corp. 3.10% 2030 | 528 | 610 | ||||||
| Molson Coors Brewing Co. 4.20% 2046 | 1,050 | 1,214 | ||||||
| Nestlé Holdings, Inc. 3.35% 20232 | 2,200 | 2,376 | ||||||
| Nestlé Holdings, Inc. 0.625% 20262 | 6,160 | 6,127 | ||||||
| Nestlé Holdings, Inc. 1.00% 20272 | 4,778 | 4,786 | ||||||
| Nestlé Holdings, Inc. 1.25% 20302 | 5,000 | 4,992 | ||||||
| PepsiCo, Inc. 1.40% 2031 | 5,824 | 5,886 | ||||||
| PepsiCo, Inc. 3.625% 2050 | 1,130 | 1,433 | ||||||
| Philip Morris International Inc. 2.875% 2024 | 972 | 1,046 | ||||||
| Philip Morris International Inc. 1.50% 2025 | 228 | 236 | ||||||
| Philip Morris International Inc. 0.875% 2026 | 1,035 | 1,034 | ||||||
| Philip Morris International Inc. 3.375% 2029 | 1,395 | 1,598 | ||||||
| Philip Morris International Inc. 1.75% 2030 | 3,904 | 3,922 | ||||||
| Philip Morris International Inc. 2.10% 2030 | 2,186 | 2,262 | ||||||
| Philip Morris International Inc. 4.125% 2043 | 512 | 629 | ||||||
| Procter & Gamble Company 0.55% 2025 | 3,705 | 3,725 | ||||||
| Procter & Gamble Company 2.80% 2027 | 83 | 93 | ||||||
| Procter & Gamble Company 1.20% 2030 | 7,050 | 7,096 | ||||||
| Procter & Gamble Company 3.00% 2030 | 152 | 176 | ||||||
| Reynolds American Inc. 4.45% 2025 | 225 | 257 | ||||||
| Reynolds American Inc. 5.85% 2045 | 225 | 288 | ||||||
| Wal-Mart Stores, Inc. 3.125% 2021 | 1,000 | 1,016 | ||||||
| Wal-Mart Stores, Inc. 2.35% 2022 | 200 | 208 | ||||||
| Wal-Mart Stores, Inc. 2.85% 2024 | 3,102 | 3,356 | ||||||
| Wal-Mart Stores, Inc. 3.05% 2026 | 350 | 394 | ||||||
| Wal-Mart Stores, Inc. 3.70% 2028 | 350 | 413 | ||||||
| Wal-Mart Stores, Inc. 2.375% 2029 | 1,000 | 1,105 | ||||||
| 146,221 | ||||||||
| 10 | American Funds Corporate Bond Fund |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Information technology 6.81% | ||||||||
| Adobe Inc. 1.90% 2025 | $ | 327 | $ | 346 | ||||
| Adobe Inc. 2.15% 2027 | 866 | 933 | ||||||
| Adobe Inc. 2.30% 2030 | 5,899 | 6,415 | ||||||
| Apple Inc. 0.75% 2023 | 4,775 | 4,835 | ||||||
| Apple Inc. 1.80% 2024 | 2,000 | 2,093 | ||||||
| Apple Inc. 0.55% 2025 | 6,740 | 6,750 | ||||||
| Apple Inc. 1.125% 2025 | 4,385 | 4,491 | ||||||
| Apple Inc. 1.25% 2030 | 6,770 | 6,786 | ||||||
| Apple Inc. 2.40% 2050 | 3,050 | 3,171 | ||||||
| Apple Inc. 2.65% 2050 | 1,757 | 1,892 | ||||||
| Broadcom Inc. 4.70% 2025 | 500 | 573 | ||||||
| Broadcom Inc. 4.75% 2029 | 5,130 | 6,111 | ||||||
| Broadcom Inc. 4.15% 2030 | 2,000 | 2,325 | ||||||
| Broadcom Inc. 5.00% 2030 | 6,190 | 7,500 | ||||||
| Broadcom Ltd. 3.625% 2024 | 575 | 621 | ||||||
| Broadcom Ltd. 3.875% 2027 | 2,105 | 2,367 | ||||||
| Broadcom Ltd. 3.50% 2028 | 592 | 653 | ||||||
| Fiserv, Inc. 2.75% 2024 | 2,375 | 2,543 | ||||||
| Fiserv, Inc. 2.25% 2027 | 2,595 | 2,764 | ||||||
| Fiserv, Inc. 3.50% 2029 | 2,835 | 3,252 | ||||||
| Fiserv, Inc. 2.65% 2030 | 4,100 | 4,449 | ||||||
| Fiserv, Inc. 4.40% 2049 | 1,850 | 2,459 | ||||||
| Global Payments Inc. 2.90% 2030 | 4,561 | 4,987 | ||||||
| Intuit Inc. 0.65% 2023 | 960 | 966 | ||||||
| Intuit Inc. 0.95% 2025 | 1,315 | 1,333 | ||||||
| Intuit Inc. 1.35% 2027 | 1,665 | 1,698 | ||||||
| Intuit Inc. 1.65% 2030 | 2,010 | 2,063 | ||||||
| Microsoft Corp. 2.40% 2022 | 3,000 | 3,074 | ||||||
| Microsoft Corp. 3.30% 2027 | 1,500 | 1,713 | ||||||
| Microsoft Corp. 2.525% 2050 | 1,240 | 1,333 | ||||||
| Oracle Corp. 1.90% 2021 | 800 | 809 | ||||||
| Oracle Corp. 2.50% 2025 | 2,275 | 2,442 | ||||||
| Oracle Corp. 3.60% 2050 | 4,820 | 5,629 | ||||||
| PayPal Holdings, Inc. 2.40% 2024 | 850 | 905 | ||||||
| PayPal Holdings, Inc. 2.65% 2026 | 554 | 605 | ||||||
| PayPal Holdings, Inc. 2.85% 2029 | 2,848 | 3,172 | ||||||
| PayPal Holdings, Inc. 2.30% 2030 | 2,316 | 2,483 | ||||||
| PayPal Holdings, Inc. 3.25% 2050 | 1,223 | 1,416 | ||||||
| ServiceNow, Inc. 1.40% 2030 | 13,730 | 13,386 | ||||||
| Visa Inc. 2.15% 2022 | 1,250 | 1,292 | ||||||
| Visa Inc. 0.75% 2027 | 8,070 | 8,026 | ||||||
| Visa Inc. 1.10% 2031 | 7,200 | 7,069 | ||||||
| Visa Inc. 2.00% 2050 | 3,000 | 2,893 | ||||||
| 140,623 | ||||||||
| Consumer discretionary 6.29% | ||||||||
| Amazon.com, Inc. 3.80% 2024 | 700 | 786 | ||||||
| Amazon.com, Inc. 1.20% 2027 | 1,250 | 1,271 | ||||||
| Amazon.com, Inc. 1.50% 2030 | 5,600 | 5,723 | ||||||
| Amazon.com, Inc. 2.50% 2050 | 1,920 | 2,035 | ||||||
| Amazon.com, Inc. 2.70% 2060 | 1,745 | 1,906 | ||||||
| American Honda Finance Corp. 0.875% 2023 | 7,000 | 7,083 | ||||||
| American Honda Finance Corp. 1.00% 2025 | 1,000 | 1,011 | ||||||
| American Honda Finance Corp. 1.20% 2025 | 4,582 | 4,672 | ||||||
| Bayerische Motoren Werke AG 1.85% 20212 | 100 | 101 | ||||||
| Bayerische Motoren Werke AG 2.00% 20212 | 400 | 402 | ||||||
| Bayerische Motoren Werke AG 3.45% 20232 | 472 | 502 | ||||||
| Bayerische Motoren Werke AG 3.80% 20232 | 136 | 146 | ||||||
| Bayerische Motoren Werke AG 3.90% 20252 | 81 | 91 | ||||||
| General Motors Company 5.40% 2023 | 737 | 826 | ||||||
| General Motors Company 6.125% 2025 | 823 | 992 | ||||||
| General Motors Company 6.60% 2036 | 45 | 61 | ||||||
| General Motors Company 6.75% 2046 | 305 | 435 | ||||||
| General Motors Company 5.95% 2049 | 380 | 514 | ||||||
| General Motors Financial Co. 3.55% 2021 | 200 | 202 | ||||||
| General Motors Financial Co. 3.55% 2022 | 870 | 909 | ||||||
| General Motors Financial Co. 5.20% 2023 | 2,443 | 2,681 | ||||||
| American Funds Corporate Bond Fund | 11 |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Consumer discretionary (continued) | ||||||||
| General Motors Financial Co. 3.50% 2024 | $ | 1,690 | $ | 1,822 | ||||
| General Motors Financial Co. 2.75% 2025 | 4,295 | 4,550 | ||||||
| Home Depot, Inc. 3.90% 2028 | 125 | 150 | ||||||
| Home Depot, Inc. 2.95% 2029 | 2,533 | 2,869 | ||||||
| Home Depot, Inc. 4.50% 2048 | 85 | 119 | ||||||
| Home Depot, Inc. 3.125% 2049 | 96 | 111 | ||||||
| Home Depot, Inc. 3.35% 2050 | 1,570 | 1,874 | ||||||
| Hyundai Capital America 3.25% 20222 | 150 | 156 | ||||||
| Hyundai Capital America 1.25% 20232 | 945 | 952 | ||||||
| Hyundai Capital America 1.80% 20252 | 4,752 | 4,821 | ||||||
| Hyundai Capital America 2.375% 20272 | 719 | 743 | ||||||
| Lowe’s Companies, Inc. 3.65% 2029 | 1,843 | 2,149 | ||||||
| Lowe’s Companies, Inc. 4.05% 2047 | 39 | 48 | ||||||
| Lowe’s Companies, Inc. 3.00% 2050 | 566 | 611 | ||||||
| Magna International Inc. 2.45% 2030 | 1,100 | 1,181 | ||||||
| McDonald’s Corp. 2.125% 2030 | 404 | 425 | ||||||
| Morongo Band of Mission Indians 7.00% 20392 | 1,100 | 1,283 | ||||||
| Nissan Motor Co., Ltd. 3.043% 20232 | 3,562 | 3,703 | ||||||
| Nissan Motor Co., Ltd. 3.522% 20252 | 933 | 975 | ||||||
| Nissan Motor Co., Ltd. 4.345% 20272 | 3,565 | 3,828 | ||||||
| Nissan Motor Co., Ltd. 4.81% 20302 | 4,000 | 4,425 | ||||||
| Toyota Motor Credit Corp. 2.15% 2022 | 625 | 646 | ||||||
| Toyota Motor Credit Corp. 2.60% 2022 | 720 | 738 | ||||||
| Toyota Motor Credit Corp. 0.50% 2023 | 29,100 | 29,198 | ||||||
| Toyota Motor Credit Corp. 0.80% 2025 | 4,990 | 5,015 | ||||||
| Toyota Motor Credit Corp. 1.80% 2025 | 200 | 209 | ||||||
| Toyota Motor Credit Corp. 1.15% 2027 | 6,500 | 6,499 | ||||||
| Toyota Motor Credit Corp. 3.20% 2027 | 340 | 383 | ||||||
| Toyota Motor Credit Corp. 3.05% 2028 | 384 | 432 | ||||||
| Toyota Motor Credit Corp. 3.375% 2030 | 1,804 | 2,106 | ||||||
| Volkswagen Group of America Finance, LLC 4.00% 20212 | 475 | 491 | ||||||
| Volkswagen Group of America Finance, LLC 2.90% 20222 | 200 | 207 | ||||||
| Volkswagen Group of America Finance, LLC 2.85% 20242 | 1,334 | 1,424 | ||||||
| Volkswagen Group of America Finance, LLC 1.25% 20252 | 9,200 | 9,214 | ||||||
| Volkswagen Group of America Finance, LLC 3.35% 20252 | 2,372 | 2,604 | ||||||
| Volkswagen Group of America Finance, LLC 1.625% 20272 | 1,620 | 1,623 | ||||||
| 129,933 | ||||||||
| Industrials 5.45% | ||||||||
| 3M Co. 2.25% 2023 | 1,400 | 1,460 | ||||||
| 3M Co. 3.25% 2024 | 90 | 98 | ||||||
| Boeing Company 4.875% 2025 | 6,583 | 7,356 | ||||||
| Boeing Company 2.75% 2026 | 4,324 | 4,437 | ||||||
| Boeing Company 3.10% 2026 | 622 | 648 | ||||||
| Boeing Company 5.04% 2027 | 2,126 | 2,438 | ||||||
| Boeing Company 3.25% 2028 | 10,214 | 10,655 | ||||||
| Boeing Company 3.20% 2029 | 961 | 985 | ||||||
| Boeing Company 5.15% 2030 | 1,031 | 1,213 | ||||||
| Boeing Company 3.60% 2034 | 430 | 435 | ||||||
| Burlington Northern Santa Fe LLC 3.00% 2023 | 1,000 | 1,054 | ||||||
| Burlington Northern Santa Fe LLC 3.05% 2051 | 3,740 | 4,342 | ||||||
| Canadian National Railway Company 3.20% 2046 | 230 | 270 | ||||||
| Carrier Global Corp. 2.242% 20252 | 3,753 | 3,944 | ||||||
| Carrier Global Corp. 2.493% 20272 | 823 | 879 | ||||||
| Carrier Global Corp. 2.722% 20302 | 1,391 | 1,486 | ||||||
| Carrier Global Corp. 3.377% 20402 | 119 | 132 | ||||||
| Carrier Global Corp. 3.577% 20502 | 103 | 118 | ||||||
| CSX Corp. 3.80% 2028 | 1,559 | 1,827 | ||||||
| CSX Corp. 4.25% 2029 | 1,000 | 1,213 | ||||||
| CSX Corp. 2.40% 2030 | 425 | 461 | ||||||
| CSX Corp. 3.35% 2049 | 1,015 | 1,178 | ||||||
| GE Capital Funding, LLC 3.45% 20252 | 250 | 272 | ||||||
| General Dynamics Corp. 3.75% 2028 | 736 | 865 | ||||||
| General Dynamics Corp. 4.25% 2050 | 224 | 312 | ||||||
| General Electric Capital Corp. 3.373% 2025 | 2,025 | 2,224 | ||||||
| General Electric Co. 3.45% 2027 | 8,118 | 8,947 | ||||||
| General Electric Co. 3.625% 2030 | 725 | 814 | ||||||
| 12 | American Funds Corporate Bond Fund |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Industrials (continued) | ||||||||
| General Electric Co. 4.25% 2040 | $ | 575 | $ | 654 | ||||
| General Electric Co. 4.125% 2042 | 8 | 9 | ||||||
| General Electric Co. 4.35% 2050 | 975 | 1,147 | ||||||
| Honeywell International Inc. 2.15% 2022 | 9,550 | 9,851 | ||||||
| Honeywell International Inc. 2.30% 2024 | 3,525 | 3,762 | ||||||
| Honeywell International Inc. 1.35% 2025 | 124 | 128 | ||||||
| Honeywell International Inc. 2.70% 2029 | 1,522 | 1,704 | ||||||
| Honeywell International Inc. 1.95% 2030 | 2,750 | 2,917 | ||||||
| Honeywell International Inc. 2.80% 2050 | 150 | 167 | ||||||
| L3Harris Technologies, Inc. 1.80% 2031 | 925 | 940 | ||||||
| Norfolk Southern Corp. 3.00% 2022 | 1,071 | 1,103 | ||||||
| Norfolk Southern Corp. 3.05% 2050 | 1,554 | 1,729 | ||||||
| Northrop Grumman Corp. 2.55% 2022 | 3,560 | 3,700 | ||||||
| Northrop Grumman Corp. 3.25% 2028 | 1,210 | 1,367 | ||||||
| Northrop Grumman Corp. 5.25% 2050 | 229 | 347 | ||||||
| Otis Worldwide Corp. 2.056% 2025 | 2,750 | 2,892 | ||||||
| Otis Worldwide Corp. 2.293% 2027 | 1,500 | 1,607 | ||||||
| Otis Worldwide Corp. 2.565% 2030 | 500 | 537 | ||||||
| Otis Worldwide Corp. 3.362% 2050 | 1,250 | 1,451 | ||||||
| Raytheon Technologies Corp. 2.80% 20222 | 390 | 401 | ||||||
| Raytheon Technologies Corp. 2.25% 2030 | 250 | 265 | ||||||
| Roper Technologies, Inc. 1.00% 2025 | 1,000 | 1,006 | ||||||
| Roper Technologies, Inc. 1.40% 2027 | 1,000 | 1,013 | ||||||
| Roper Technologies, Inc. 1.75% 2031 | 1,500 | 1,508 | ||||||
| Siemens AG 2.90% 20222 | 450 | 467 | ||||||
| Union Pacific Corp. 3.15% 2024 | 750 | 811 | ||||||
| Union Pacific Corp. 2.15% 2027 | 1,000 | 1,064 | ||||||
| Union Pacific Corp. 3.95% 2028 | 332 | 395 | ||||||
| Union Pacific Corp. 3.70% 2029 | 1,000 | 1,174 | ||||||
| Union Pacific Corp. 2.40% 2030 | 470 | 510 | ||||||
| Union Pacific Corp. 4.30% 2049 | 510 | 673 | ||||||
| Union Pacific Corp. 3.25% 2050 | 1,851 | 2,128 | ||||||
| Union Pacific Corp. 3.95% 2059 | 805 | 1,024 | ||||||
| United Technologies Corp. 3.65% 2023 | 23 | 25 | ||||||
| United Technologies Corp. 3.95% 2025 | 1,535 | 1,760 | ||||||
| United Technologies Corp. 4.125% 2028 | 1,475 | 1,760 | ||||||
| United Technologies Corp. 4.50% 2042 | 250 | 331 | ||||||
| 112,390 | ||||||||
| Materials 2.47% | ||||||||
| Air Products and Chemicals, Inc. 1.50% 2025 | 477 | 496 | ||||||
| Air Products and Chemicals, Inc. 1.85% 2027 | 60 | 63 | ||||||
| Air Products and Chemicals, Inc. 2.05% 2030 | 2,065 | 2,206 | ||||||
| Air Products and Chemicals, Inc. 2.80% 2050 | 91 | 100 | ||||||
| Anglo American Capital PLC 5.625% 20302 | 1,510 | 1,903 | ||||||
| Anglo American Capital PLC 3.95% 20502 | 1,024 | 1,134 | ||||||
| Chevron Phillips Chemical Co. LLC 3.30% 20232 | 390 | 413 | ||||||
| Dow Chemical Co. 4.55% 2025 | 200 | 234 | ||||||
| Dow Chemical Co. 3.625% 2026 | 1,298 | 1,459 | ||||||
| Dow Chemical Co. 4.80% 2028 | 500 | 616 | ||||||
| Dow Chemical Co. 2.10% 2030 | 3,500 | 3,576 | ||||||
| Dow Chemical Co. 4.625% 2044 | 600 | 743 | ||||||
| Dow Chemical Co. 5.55% 2048 | 290 | 417 | ||||||
| Dow Chemical Co. 4.80% 2049 | 690 | 900 | ||||||
| Dow Chemical Co. 3.60% 2050 | 2,000 | 2,235 | ||||||
| Ecolab Inc. 2.125% 2050 | 500 | 481 | ||||||
| Glencore Funding LLC 4.125% 20242 | 500 | 546 | ||||||
| LYB International Finance BV 4.875% 2044 | 100 | 127 | ||||||
| LYB International Finance III, LLC 1.25% 2025 | 717 | 724 | ||||||
| LYB International Finance III, LLC 2.25% 2030 | 3,143 | 3,215 | ||||||
| LYB International Finance III, LLC 3.375% 2040 | 368 | 389 | ||||||
| LYB International Finance III, LLC 4.20% 2049 | 249 | 291 | ||||||
| LYB International Finance III, LLC 4.20% 2050 | 250 | 291 | ||||||
| LYB International Finance III, LLC 3.625% 2051 | 430 | 466 | ||||||
| Newcrest Finance Pty Ltd. 3.25% 20302 | 1,492 | 1,647 | ||||||
| Newcrest Finance Pty Ltd. 4.20% 20502 | 572 | 699 | ||||||
| Nutrien Ltd. 1.90% 2023 | 111 | 115 | ||||||
| American Funds Corporate Bond Fund | 13 |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds, notes & loans (continued) | ||||||||
| Materials (continued) | ||||||||
| Nutrien Ltd. 4.20% 2029 | $ | 250 | $ | 300 | ||||
| Nutrien Ltd. 2.95% 2030 | 500 | 551 | ||||||
| Nutrien Ltd. 5.00% 2049 | 300 | 416 | ||||||
| Nutrien Ltd. 3.95% 2050 | 750 | 905 | ||||||
| Nutrition & Biosciences, Inc. 1.23% 20252 | 1,000 | 1,013 | ||||||
| Nutrition & Biosciences, Inc. 1.832% 20272 | 3,048 | 3,115 | ||||||
| Nutrition & Biosciences, Inc. 2.30% 20302 | 5,680 | 5,845 | ||||||
| Nutrition & Biosciences, Inc. 3.268% 20402 | 500 | 539 | ||||||
| Nutrition & Biosciences, Inc. 3.468% 20502 | 750 | 821 | ||||||
| Praxair, Inc. 3.00% 2021 | 450 | 459 | ||||||
| Praxair, Inc. 1.10% 2030 | 3,342 | 3,300 | ||||||
| Praxair, Inc. 2.00% 2050 | 1,548 | 1,464 | ||||||
| Sherwin-Williams Company 2.75% 2022 | 22 | 23 | ||||||
| Sherwin-Williams Company 3.125% 2024 | 700 | 759 | ||||||
| Sherwin-Williams Company 3.45% 2027 | 150 | 171 | ||||||
| Sherwin-Williams Company 2.30% 2030 | 691 | 729 | ||||||
| Sherwin-Williams Company 3.80% 2049 | 300 | 363 | ||||||
| Sherwin-Williams Company 3.30% 2050 | 1,200 | 1,356 | ||||||
| Vale Overseas Ltd. 3.75% 2030 | 2,673 | 2,948 | ||||||
| Westlake Chemical Corp. 5.00% 2046 | 130 | 163 | ||||||
| Westlake Chemical Corp. 4.375% 2047 | 160 | 184 | ||||||
| 50,910 | ||||||||
| Real estate 1.58% | ||||||||
| Alexandria Real Estate Equities, Inc. 3.80% 2026 | 105 | 120 | ||||||
| Alexandria Real Estate Equities, Inc. 3.95% 2028 | 35 | 40 | ||||||
| Alexandria Real Estate Equities, Inc. 2.75% 2029 | 134 | 146 | ||||||
| Alexandria Real Estate Equities, Inc. 3.375% 2031 | 40 | 46 | ||||||
| Alexandria Real Estate Equities, Inc. 1.875% 2033 | 913 | 902 | ||||||
| American Campus Communities, Inc. 3.75% 2023 | 300 | 317 | ||||||
| American Campus Communities, Inc. 4.125% 2024 | 15 | 16 | ||||||
| American Campus Communities, Inc. 3.30% 2026 | 1,686 | 1,827 | ||||||
| American Campus Communities, Inc. 3.625% 2027 | 140 | 153 | ||||||
| American Campus Communities, Inc. 2.85% 2030 | 86 | 89 | ||||||
| American Campus Communities, Inc. 3.875% 2031 | 284 | 316 | ||||||
| Corporate Office Properties LP 2.25% 2026 | 2,233 | 2,285 | ||||||
| Equinix, Inc. 2.625% 2024 | 4,170 | 4,446 | ||||||
| Equinix, Inc. 1.25% 2025 | 2,998 | 3,042 | ||||||
| Equinix, Inc. 2.90% 2026 | 2,033 | 2,220 | ||||||
| Equinix, Inc. 1.80% 2027 | 395 | 406 | ||||||
| Equinix, Inc. 1.55% 2028 | 4,200 | 4,241 | ||||||
| Equinix, Inc. 3.20% 2029 | 3,495 | 3,866 | ||||||
| Equinix, Inc. 2.15% 2030 | 5,113 | 5,221 | ||||||
| Equinix, Inc. 3.00% 2050 | 1,370 | 1,410 | ||||||
| Essex Portfolio LP 3.50% 2025 | 70 | 78 | ||||||
| Essex Portfolio LP 3.375% 2026 | 200 | 223 | ||||||
| Essex Portfolio LP 4.00% 2029 | 180 | 209 | ||||||
| Gaming and Leisure Properties, Inc. 3.35% 2024 | 110 | 113 | ||||||
| Gaming and Leisure Properties, Inc. 4.00% 2030 | 289 | 310 | ||||||
| Scentre Group 2.375% 20212 | 130 | 131 | ||||||
| Scentre Group 3.50% 20252 | 50 | 53 | ||||||
| Westfield Corp. Ltd. 3.50% 20292 | 312 | 317 | ||||||
| 32,543 | ||||||||
| Total corporate bonds, notes & loans | 1,705,613 | |||||||
| U.S. Treasury bonds & notes 9.46% | ||||||||
| U.S. Treasury 9.46% | ||||||||
| U.S. Treasury 1.625% 2021 | 695 | 706 | ||||||
| U.S. Treasury 0.125% 2022 | 6,756 | 6,755 | ||||||
| U.S. Treasury 0.125% 2023 | 4,022 | 4,015 | ||||||
| U.S. Treasury 0.25% 2023 | 4,780 | 4,788 | ||||||
| U.S. Treasury 1.50% 2024 | 74 | 78 | ||||||
| U.S. Treasury 0.25% 2025 | 7,514 | 7,477 | ||||||
| U.S. Treasury 0.25% 2025 | 1,301 | 1,294 | ||||||
| U.S. Treasury 0.50% 2027 | 6,466 | 6,428 | ||||||
| U.S. Treasury 0.625% 20274 | 3,933 | 3,954 | ||||||
| U.S. Treasury 2.375% 2029 | 84 | 95 | ||||||
| 14 | American Funds Corporate Bond Fund |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| U.S. Treasury bonds & notes (continued) | ||||||||
| U.S. Treasury (continued) | ||||||||
| U.S. Treasury 0.875% 2030 | $ | 23,797 | $ | 23,858 | ||||
| U.S. Treasury 2.375% 20494 | 19,034 | 22,701 | ||||||
| U.S. Treasury 1.375% 2050 | 118,903 | 113,110 | ||||||
| 195,259 | ||||||||
| Asset-backed obligations 0.29% | ||||||||
| CF Hippolyta LLC, Series 2020-1, Class A1, 1.69% 20602,5 | 4,573 | 4,641 | ||||||
| CF Hippolyta LLC, Series 2020-1, Class A2, 1.99% 20602,5 | 319 | 325 | ||||||
| Global SC Finance V SRL, Series 2019-1A, Class B, 4.81% 20392,5 | 976 | 975 | ||||||
| 5,941 | ||||||||
| Municipals 0.14% | ||||||||
| California 0.08% | ||||||||
| Regents of the University of California, General Rev. Bonds, Series 2020-BG, 1.316% 2027 | 965 | 976 | ||||||
| Regents of the University of California, General Rev. Bonds, Series 2020-BG, 1.614% 2030 | 750 | 746 | ||||||
| 1,722 | ||||||||
| South Carolina 0.06% | ||||||||
| Public Service Auth., Rev. Obligations (Santee Cooper), Series 2015-E, 5.25% 2055 | 400 | 474 | ||||||
| Public Service Auth., Rev. Obligations (Santee Cooper), Series 2016-B, 5.00% 2036 | 100 | 121 | ||||||
| Public Service Auth., Rev. Ref. Obligations (Santee Cooper), Series 2016-C, 5.00% 2035 | 460 | 560 | ||||||
| 1,155 | ||||||||
| 2,877 | ||||||||
| Total bonds, notes & other debt instruments (cost: $1,817,412,000) | 1,909,690 | |||||||
| Short-term securities 7.26% | Shares | |||||||
| Money market investments 7.26% | ||||||||
| Capital Group Central Cash Fund 0.11%6,7 | 1,499,854 | 150,000 | ||||||
| Total short-term securities (cost: $150,000,000) | 150,000 | |||||||
| Total investment securities 99.78% (cost: $1,967,412,000) | 2,059,690 | |||||||
| Other assets less liabilities 0.22% | 4,442 | |||||||
| Net assets 100.00% | $ | 2,064,132 | ||||||
| American Funds Corporate Bond Fund | 15 |
Futures contracts
| Notional | Value at | Unrealized appreciation (depreciation) | ||||||||||||||||
| Number of | amount | 8 | 11/30/2020 | 9 | at 11/30/2020 | |||||||||||||
| Contracts | Type | contracts | Expiration | (000) | (000) | (000) | ||||||||||||
| 2 Year U.S. Treasury Note Futures | Long | 391 | April 2021 | $ | 78,200 | $ | 86,353 | $ | 33 | |||||||||
| 5 Year U.S. Treasury Note Futures | Long | 154 | April 2021 | 15,400 | 19,409 | 21 | ||||||||||||
| 10 Year U.S. Treasury Note Futures | Long | 160 | March 2021 | 16,000 | 22,108 | 27 | ||||||||||||
| 10 Year Ultra U.S. Treasury Note Futures | Short | 1,480 | March 2021 | (148,000 | ) | (232,545 | ) | (622 | ) | |||||||||
| 20 Year U.S. Treasury Bond Futures | Long | 1,150 | March 2021 | 115,000 | 201,142 | 170 | ||||||||||||
| 30 Year Ultra U.S. Treasury Bond Futures | Short | 120 | March 2021 | (12,000 | ) | (25,924 | ) | (140 | ) | |||||||||
| $ | (511 | ) | ||||||||||||||||
Investments in affiliates7
| Value of affiliate at 6/1/2020 (000) | Additions (000) | Reductions (000) | Net realized loss (000) | Net unrealized appreciation (000) | Value of affiliate at 11/30/2020 (000) | Dividend income (000) | ||||||||||||||||||||||
| Short-term securities 7.26% | ||||||||||||||||||||||||||||
| Money market investments 7.26% | ||||||||||||||||||||||||||||
| Capital Group Central Cash Fund 0.11%6 | $ | 92,162 | $ | 703,482 | $ | 645,644 | $ | (5 | ) | $ | 5 | $ | 150,000 | $ | 94 | |||||||||||||
| 1 | Step bond; coupon rate may change at a later date. |
| 2 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $248,034,000, which represented 12.02% of the net assets of the fund. |
| 3 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
| 4 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $2,267,000, which represented .11% of the net assets of the fund. |
| 5 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
| 6 | Rate represents the seven-day yield at 11/30/2020. |
| 7 | Part of the same group of investment companies as the fund as defined under the Investment Company Act of 1940. |
| 8 | Notional amount is calculated based on the number of contracts and notional contract size. |
| 9 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
Auth. = Authority
ICE = Intercontinental Exchange, Inc.
LIBOR = London Interbank Offered Rate
Ref. = Refunding
Rev. = Revenue
SOFR = Secured Overnight Financing Rate
USD/$ = U.S. dollars
See notes to financial statements.
| 16 | American Funds Corporate Bond Fund |
| Statement of assets and liabilities | unaudited |
| at November 30, 2020 | (dollars in thousands) |
| Assets: | ||||||||
| Investment securities, at value: | ||||||||
| Unaffiliated issuers (cost: $1,817,412) | $ | 1,909,690 | ||||||
| Affiliated issuers (cost: $150,000) | 150,000 | $ | 2,059,690 | |||||
| Cash | 380 | |||||||
| Receivables for: | ||||||||
| Sales of investments | 1,229 | |||||||
| Sales of fund’s shares | 7,575 | |||||||
| Dividends and interest | 11,765 | |||||||
| Variation margin on futures contracts | 40 | 20,609 | ||||||
| 2,080,679 | ||||||||
| Liabilities: | ||||||||
| Payables for: | ||||||||
| Purchases of investments | 13,009 | |||||||
| Repurchases of fund’s shares | 2,418 | |||||||
| Dividends on fund’s shares | 12 | |||||||
| Investment advisory services | 602 | |||||||
| Services provided by related parties | 342 | |||||||
| Trustees’ deferred compensation | 5 | |||||||
| Variation margin on futures contracts | 150 | |||||||
| Other | 9 | 16,547 | ||||||
| Net assets at November 30, 2020 | $ | 2,064,132 | ||||||
| Net assets consist of: | ||||||||
| Capital paid in on shares of beneficial interest | $ | 1,917,688 | ||||||
| Total distributable earnings | 146,444 | |||||||
| Net assets at November 30, 2020 | $ | 2,064,132 | ||||||
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated
par value) —
unlimited shares authorized (172,531 total shares outstanding)
| Shares | Net asset value | |||||||||||
| Net assets | outstanding | per share | ||||||||||
| Class A | $ | 1,059,439 | 88,553 | $ | 11.96 | |||||||
| Class C | 56,192 | 4,697 | 11.96 | |||||||||
| Class T | 12 | 1 | 11.96 | |||||||||
| Class F-1 | 92,542 | 7,735 | 11.96 | |||||||||
| Class F-2 | 651,040 | 54,417 | 11.96 | |||||||||
| Class F-3 | 71,433 | 5,971 | 11.96 | |||||||||
| Class 529-A | 67,314 | 5,626 | 11.96 | |||||||||
| Class 529-C | 6,402 | 535 | 11.96 | |||||||||
| Class 529-E | 2,939 | 246 | 11.96 | |||||||||
| Class 529-T | 13 | 1 | 11.96 | |||||||||
| Class 529-F-1 | 10 | 1 | 11.96 | |||||||||
| Class 529-F-2 | 8,123 | 679 | 11.96 | |||||||||
| Class 529-F-3 | 10 | 1 | 11.96 | |||||||||
| Class R-1 | 1,316 | 110 | 11.96 | |||||||||
| Class R-2 | 9,091 | 760 | 11.96 | |||||||||
| Class R-2E | 1,384 | 116 | 11.96 | |||||||||
| Class R-3 | 12,282 | 1,027 | 11.96 | |||||||||
| Class R-4 | 6,519 | 545 | 11.96 | |||||||||
| Class R-5E | 1,514 | 126 | 11.96 | |||||||||
| Class R-5 | 1,755 | 147 | 11.96 | |||||||||
| Class R-6 | 14,802 | 1,237 | 11.96 | |||||||||
See notes to financial statements.
| American Funds Corporate Bond Fund | 17 |
Financial statements (continued)
| Statement of operations | unaudited |
| for the six months ended November 30, 2020 | (dollars in thousands) |
| Investment income: | ||||||||
| Income: | ||||||||
| Interest | $ | 20,226 | ||||||
| Dividends from affiliated issuers | 94 | $ | 20,320 | |||||
| Fees and expenses*: | ||||||||
| Investment advisory services | 3,195 | |||||||
| Distribution services | 1,947 | |||||||
| Transfer agent services | 767 | |||||||
| Administrative services | 254 | |||||||
| Reports to shareholders | 53 | |||||||
| Registration statement and prospectus | 441 | |||||||
| Trustees’ compensation | 3 | |||||||
| Auditing and legal | 99 | |||||||
| Custodian | 3 | |||||||
| Other | 25 | |||||||
| Total fees and expenses before waiver/reimbursements | 6,787 | |||||||
| Less waiver/reimbursements of fees and expenses: | ||||||||
| Investment advisory services waiver | 62 | |||||||
| Miscellaneous fee reimbursement | 210 | |||||||
| Transfer agent services reimbursement | — | † | ||||||
| Total fees and expenses after waiver/reimbursements | 6,515 | |||||||
| Net investment income | 13,805 | |||||||
| Net realized gain and unrealized appreciation: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments: | ||||||||
| Unaffiliated issuers | 23,559 | |||||||
| Affiliated issuers | (5 | ) | ||||||
| Futures contracts | (937 | ) | 22,617 | |||||
| Net unrealized appreciation (depreciation) on: | ||||||||
| Investments: | ||||||||
| Unaffiliated issuers | 30,142 | |||||||
| Affiliated issuers | 5 | |||||||
| Futures contracts | (391 | ) | 29,756 | |||||
| Net realized gain and unrealized appreciation | 52,373 | |||||||
| Net increase in net assets resulting from operations | $ | 66,178 |
| * | Additional information related to class-specific fees and expenses is included in the notes to financial statements. |
| † | Amount less than one thousand. |
See notes to financial statements.
| 18 | American Funds Corporate Bond Fund |
Financial statements (continued)
Statements of changes in net assets
(dollars in thousands)
| Six months ended November 30, 2020* | Year ended May 31, 2020 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 13,805 | $ | 18,950 | ||||
| Net realized gain | 22,617 | 49,678 | ||||||
| Net unrealized appreciation | 29,756 | 45,463 | ||||||
| Net increase in net assets resulting from operations | 66,178 | 114,091 | ||||||
| Distributions paid or accrued to shareholders | (13,669 | ) | (28,872 | ) | ||||
| Net capital share transactions | 830,138 | 453,046 | ||||||
| Total increase in net assets | 882,647 | 538,265 | ||||||
| Net assets: | ||||||||
| Beginning of period | 1,181,485 | 643,220 | ||||||
| End of period | $ | 2,064,132 | $ | 1,181,485 | ||||
| * | Unaudited. |
See notes to financial statements.
| American Funds Corporate Bond Fund | 19 |
| Notes to financial statements | unaudited |
1. Organization
American Funds Corporate Bond Fund (the “fund”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide maximum total return consistent with capital preservation and prudent risk management.
The fund has 21 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), seven 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T, 529-F-1, 529-F-2 and 529-F-3) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:
| Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature | |||
| Classes A and 529-A | Up to 3.75% for Class A; up to 3.50% for Class 529-A1 | None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge) | None | |||
| Classes C and 529-C | None | 1% for redemptions within one year of purchase | Class C converts to Class A after eight years and Class 529-C converts to Class 529-A after five years2 | |||
| Class 529-E | None | None | None | |||
| Classes T and 529-T3 | Up to 2.50% | None | None | |||
| Classes F-1, F-2, F-3, 529-F-1, 529-F-2 and 529-F-3 | None | None | None | |||
| Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 | None | None | None |
| 1 | Prior to June 30, 2020, the initial sales charge was up to 3.75% for Class 529-A purchases. |
| 2 | Prior to June 30, 2020, Class C converted to Class F-1 and Class 529-C converted to Class 529-A after ten years. |
| 3 | Class T and 529-T shares are not available for purchase. |
Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution, transfer agent and administrative services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.
2. Significant accounting policies
The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations — Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Realized gains and losses and unrealized appreciation and depreciation are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, transfer agent and administrative services, are charged directly to the respective share class.
| 20 | American Funds Corporate Bond Fund |
Distributions paid or accrued to shareholders — Income dividends are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Capital gain distributions are recorded on the ex-dividend date.
3. Valuation
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
| Fixed-income class | Examples of standard inputs | |
| All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) | |
| Corporate bonds, notes & loans; convertible securities | Standard inputs and underlying equity of the issuer | |
| Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities | |
| Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information | |
| Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
Exchange-traded futures are generally valued at the official settlement price of the exchange or market on which such instruments are traded, as of the close of business on the day the futures are being valued.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
| American Funds Corporate Bond Fund | 21 |
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of November 30, 2020 (dollars in thousands):
| Investment securities | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Bonds, notes & other debt instruments: | ||||||||||||||||
| Corporate bonds, notes & loans | $ | — | $ | 1,705,613 | $ | — | $ | 1,705,613 | ||||||||
| U.S. Treasury bonds & notes | — | 195,259 | — | 195,259 | ||||||||||||
| Asset-backed obligations | — | 5,941 | — | 5,941 | ||||||||||||
| Municipals | — | 2,877 | — | 2,877 | ||||||||||||
| Short-term securities | 150,000 | — | — | 150,000 | ||||||||||||
| Total | $ | 150,000 | $ | 1,909,690 | $ | — | $ | 2,059,690 | ||||||||
| Other investments* | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Unrealized appreciation on futures contracts | $ | 251 | $ | — | $ | — | $ | 251 | ||||||||
| Liabilities: | ||||||||||||||||
| Unrealized depreciation on futures contracts | (762 | ) | — | — | (762 | ) | ||||||||||
| Total | $ | (511 | ) | $ | — | $ | — | $ | (511 | ) | ||||||
| * | Futures contracts are not included in the investment portfolio. |
4. Risk factors
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region could have impacts on global economies or markets. As a result, whether or
| 22 | American Funds Corporate Bond Fund |
not the fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the fund’s investments may be negatively affected by developments in other countries and regions.
Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.
Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks.
Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.
Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.
Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.
| American Funds Corporate Bond Fund | 23 |
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
5. Certain investment techniques
Futures contracts — The fund has entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio.
Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, known as a futures commission merchant (“FCM”), in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract.
On a daily basis, the fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in the statement of assets and liabilities. In addition, the fund segregates liquid assets equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on the fund’s statement of assets and liabilities. The fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in the fund’s statement of operations. The average month-end notional amount of futures contracts while held was $238,317,000.
| 24 | American Funds Corporate Bond Fund |
The following tables identify the location and fair value amounts on the fund’s statement of assets and liabilities and the effect on the fund’s statement of operations resulting from the fund’s use of futures contracts as of, or for the six months ended, November 30, 2020 (dollars in thousands):
| Assets | Liabilities | |||||||||||||
| Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
| Futures | Interest | Unrealized appreciation* | $ | 251 | Unrealized depreciation* | $ | 762 | |||||||
| Net realized loss | Net unrealized depreciation | |||||||||||||
| Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
| Futures | Interest | Net realized loss on futures contracts | $ | (937 | ) | Net unrealized depreciation on futures contracts | $ | (391 | ) | |||||
| * | Includes cumulative appreciation/depreciation on futures contracts as reported in the applicable table following the fund’s investment portfolio. Only current day’s variation margin is reported within the statement of assets and liabilities. |
Collateral — The fund receives or pledges highly liquid assets, such as cash or U.S. government securities, as collateral due to its use of futures contracts. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by the fund, if any, is disclosed in the fund’s investment portfolio, and cash collateral pledged by the fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash collateral in the fund’s statement of assets and liabilities.
6. Taxation and distributions
Federal income taxation — The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended November 30, 2020, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any significant interest or penalties.
The fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the fund records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
Distributions — Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of May 31, 2020, the components of distributable earnings on a tax basis were as follows (dollars in thousands):
| Undistributed ordinary income | $ | 23,025 | ||
| Undistributed long-term capital gains | 12,625 |
| American Funds Corporate Bond Fund | 25 |
As of November 30, 2020, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):
| Gross unrealized appreciation on investments | $ | 93,443 | ||
| Gross unrealized depreciation on investments | (2,429 | ) | ||
| Net unrealized appreciation on investments | 91,014 | |||
| Cost of investments | 1,968,165 |
Tax-basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands):
| Share class | Six months ended November 30, 2020 | Year ended May 31, 2020 | ||||||
| Class A | $ | 7,365 | $ | 22,021 | ||||
| Class C | 209 | 722 | ||||||
| Class T | — | * | — | * | ||||
| Class F-1 | 584 | 321 | ||||||
| Class F-2 | 4,074 | 2,133 | ||||||
| Class F-3 | 511 | 790 | ||||||
| Class 529-A | 487 | 1,416 | ||||||
| Class 529-C | 27 | 174 | ||||||
| Class 529-E | 18 | 48 | ||||||
| Class 529-T | — | * | — | * | ||||
| Class 529-F-1 | 54 | 174 | ||||||
| Class 529-F-2† | 11 | |||||||
| Class 529-F-3† | — | * | ||||||
| Class R-1 | 5 | 42 | ||||||
| Class R-2 | 41 | 156 | ||||||
| Class R-2E | 7 | 24 | ||||||
| Class R-3 | 75 | 246 | ||||||
| Class R-4 | 39 | 118 | ||||||
| Class R-5E | 14 | 31 | ||||||
| Class R-5 | 16 | 49 | ||||||
| Class R-6 | 132 | 407 | ||||||
| Total | $ | 13,669 | $ | 28,872 | ||||
| * | Amount less than one thousand. |
| † | Class 529-F-2 and 529-F-3 shares began investment operations on October 30, 2020. |
7. Fees and transactions with related parties
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors®, Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.
Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on an annual rate of 0.377% of daily net assets. CRMC is currently waiving a portion of its investment advisory services fees. CRMC does not intend to recoup this waiver. For the six months ended November 30, 2020, total investment advisory services fees waived by CRMC were $62,000. As a result, the fee of $3,195,000 shown on the statement of operations, which was equivalent to an annualized rate of 0.377% of average daily net assets, was reduced to $3,133,000, which was equivalent to an annualized rate of 0.370% of average daily net assets.
Miscellaneous fee reimbursement — CRMC has agreed to reimburse a portion of miscellaneous fees and expenses of the fund. For the six months ended November 30, 2020, total fees and expenses reimbursed by CRMC were $210,000. CRMC may recoup all or a portion of this reimbursement by the end of the current fiscal year. This reimbursement may be adjusted or discontinued, subject to any restrictions in the fund’s prospectus. Fees and expenses in the statement of operations are presented gross of any reimbursement from CRMC.
| 26 | American Funds Corporate Bond Fund |
Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are further described below:
Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, 529-F-2, 529-F-3, R-5E, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted in this section. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
| Share class | Currently approved limits | Plan limits | ||||||
| Class A | 0.30 | % | 0.30 | % | ||||
| Class 529-A | 0.30 | 0.50 | ||||||
| Classes C, 529-C and R-1 | 1.00 | 1.00 | ||||||
| Class R-2 | 0.75 | 1.00 | ||||||
| Class R-2E | 0.60 | 0.85 | ||||||
| Classes 529-E and R-3 | 0.50 | 0.75 | ||||||
| Classes T, F-1, 529-T, 529-F-1 and R-4 | 0.25 | 0.50 | ||||||
For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limits are not exceeded. As of November 30, 2020, unreimbursed expenses subject to reimbursement totaled $118,000 for Class A shares. There were no unreimbursed expenses subject to reimbursement for Class 529-A shares.
Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders. For the six months ended November 30, 2020, CRMC reimbursed transfer agent services fees of less than $1,000 for Class 529-F-3 shares. CRMC does not intend to recoup this reimbursement.
Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to all share classes. Administrative services are provided by CRMC and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in-depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides the fund the ability to charge an administrative services fee at the annual rate of 0.05% of the average daily net assets attributable to each share class of the fund. Currently the fund pays CRMC an administrative services fee at the annual rate of 0.03% of average daily net assets attributable to each share class of the fund for CRMC’s provision of administrative services.
529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the CollegeAmerica 529 college savings plan. The fee is based on the combined net assets invested in Class 529 and ABLE shares of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica®, a tax-advantaged savings program for individuals with disabilities. The quarterly fee is based on a series of decreasing annual rates beginning with 0.09% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 and ABLE shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.
| American Funds Corporate Bond Fund | 27 |
For the six months ended November 30, 2020, class-specific expenses under the agreements were as follows (dollars in thousands):
| Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | |||||||||||
| Class A | $1,421 | $459 | $142 | Not applicable | |||||||||||
| Class C | 245 | 23 | 7 | Not applicable | |||||||||||
| Class T | — | — | * | — | * | Not applicable | |||||||||
| Class F-1 | 93 | 37 | 11 | Not applicable | |||||||||||
| Class F-2 | Not applicable | 186 | 68 | Not applicable | |||||||||||
| Class F-3 | Not applicable | 1 | 8 | Not applicable | |||||||||||
| Class 529-A | 72 | 29 | 9 | $19 | |||||||||||
| Class 529-C | 33 | 3 | 1 | 2 | |||||||||||
| Class 529-E | 7 | — | * | 1 | 1 | ||||||||||
| Class 529-T | — | — | * | — | * | — | * | ||||||||
| Class 529-F-1 | — | 3 | 1 | 2 | |||||||||||
| Class 529-F-2† | Not applicable | 1 | — | * | — | * | |||||||||
| Class 529-F-3† | Not applicable | — | * | — | * | — | * | ||||||||
| Class R-1 | 6 | — | * | — | * | Not applicable | |||||||||
| Class R-2 | 33 | 13 | 1 | Not applicable | |||||||||||
| Class R-2E | 3 | 1 | — | * | Not applicable | ||||||||||
| Class R-3 | 28 | 8 | 2 | Not applicable | |||||||||||
| Class R-4 | 6 | 2 | 1 | Not applicable | |||||||||||
| Class R-5E | Not applicable | 1 | — | * | Not applicable | ||||||||||
| Class R-5 | Not applicable | — | * | — | * | Not applicable | |||||||||
| Class R-6 | Not applicable | — | * | 2 | Not applicable | ||||||||||
| Total class-specific expenses | $1,947 | $767 | $254 | $24 | |||||||||||
| * | Amount less than one thousand. |
| † | Class 529-F-2 and 529-F-3 shares began investment operations on October 30, 2020. |
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation in the fund’s statement of operations reflects the current fees (either paid in cash or deferred) and a net increase or decrease in the value of the deferred amounts.
Affiliated officers and trustees — Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.
Investment in CCF — The fund holds shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for the fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC or its affiliates, and are not available to the public. CRMC does not receive an investment advisory services fee from CCF.
Security transactions with related funds — The fund purchased securities from, and sold securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. Each transaction was executed at the current market price of the security and no brokerage commissions or fees were paid in accordance with Rule 17a-7 of the 1940 Act. During the six months ended November 30, 2020, the fund engaged in such purchase and sale transactions with related funds in the amounts of $25,005,000 and $16,469,000, respectively, which generated $1,376,000 of net realized gains from such sales.
Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the six months ended November 30, 2020.
| 28 | American Funds Corporate Bond Fund |
8. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
| Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| Six months ended November 30, 2020 | ||||||||||||||||||||||||||||||||
| Class A | $ | 288,357 | 24,397 | $ | 7,315 | 619 | $ | (77,599 | ) | (6,570 | ) | $ | 218,073 | 18,446 | ||||||||||||||||||
| Class C | 28,517 | 2,417 | 207 | 17 | (10,319 | ) | (875 | ) | 18,405 | 1,559 | ||||||||||||||||||||||
| Class T | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Class F-1 | 85,356 | 7,235 | 583 | 49 | (27,378 | ) | (2,320 | ) | 58,561 | 4,964 | ||||||||||||||||||||||
| Class F-2 | 546,448 | 45,929 | 4,068 | 344 | (65,832 | ) | (5,568 | ) | 484,684 | 40,705 | ||||||||||||||||||||||
| Class F-3 | 46,256 | 3,913 | 511 | 44 | (17,928 | ) | (1,523 | ) | 28,839 | 2,434 | ||||||||||||||||||||||
| Class 529-A | 17,666 | 1,496 | 485 | 41 | (5,982 | ) | (505 | ) | 12,169 | 1,032 | ||||||||||||||||||||||
| Class 529-C | 1,897 | 161 | 27 | 3 | (3,738 | ) | (317 | ) | (1,814 | ) | (153 | ) | ||||||||||||||||||||
| Class 529-E | 960 | 82 | 18 | 2 | (357 | ) | (30 | ) | 621 | 54 | ||||||||||||||||||||||
| Class 529-T | — | — | — | 2 | — | 2 | — | — | — | 2 | — | 2 | ||||||||||||||||||||
| Class 529-F-1 | 1,422 | 120 | 42 | 4 | (7,876 | ) | (674 | ) | (6,412 | ) | (550 | ) | ||||||||||||||||||||
| Class 529-F-23 | 8,014 | 686 | 11 | 1 | (92 | ) | (8 | ) | 7,933 | 679 | ||||||||||||||||||||||
| Class 529-F-33 | 10 | 1 | — | 2 | — | 2 | — | — | 10 | 1 | ||||||||||||||||||||||
| Class R-1 | 379 | 32 | 5 | — | 2 | (135 | ) | (11 | ) | 249 | 21 | |||||||||||||||||||||
| Class R-2 | 1,964 | 166 | 40 | 3 | (1,294 | ) | (109 | ) | 710 | 60 | ||||||||||||||||||||||
| Class R-2E | 601 | 51 | 7 | 1 | (292 | ) | (25 | ) | 316 | 27 | ||||||||||||||||||||||
| Class R-3 | 3,803 | 324 | 74 | 6 | (1,518 | ) | (129 | ) | 2,359 | 201 | ||||||||||||||||||||||
| Class R-4 | 3,213 | 272 | 39 | 3 | (413 | ) | (35 | ) | 2,839 | 240 | ||||||||||||||||||||||
| Class R-5E | 3,270 | 277 | 14 | 1 | (3,097 | ) | (262 | ) | 187 | 16 | ||||||||||||||||||||||
| Class R-5 | 654 | 55 | 16 | 1 | (444 | ) | (37 | ) | 226 | 19 | ||||||||||||||||||||||
| Class R-6 | 5,850 | 496 | 132 | 11 | (3,799 | ) | (321 | ) | 2,183 | 186 | ||||||||||||||||||||||
| Total net increase (decrease) | $ | 1,044,637 | 88,110 | $ | 13,594 | 1,150 | $ | (228,093 | ) | (19,319 | ) | $ | 830,138 | 69,941 | ||||||||||||||||||
| Year ended May 31, 2020 | ||||||||||||||||||||||||||||||||
| Class A | $ | 379,413 | 34,764 | $ | 21,860 | 2,004 | $ | (158,659 | ) | (14,700 | ) | $ | 242,614 | 22,068 | ||||||||||||||||||
| Class C | 23,437 | 2,133 | 717 | 66 | (10,692 | ) | (995 | ) | 13,462 | 1,204 | ||||||||||||||||||||||
| Class T | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Class F-1 | 28,972 | 2,588 | 317 | 29 | (4,740 | ) | (432 | ) | 24,549 | 2,185 | ||||||||||||||||||||||
| Class F-2 | 151,580 | 13,648 | 2,125 | 194 | (41,152 | ) | (3,806 | ) | 112,553 | 10,036 | ||||||||||||||||||||||
| Class F-3 | 34,451 | 3,138 | 790 | 72 | (8,080 | ) | (751 | ) | 27,161 | 2,459 | ||||||||||||||||||||||
| Class 529-A | 27,724 | 2,540 | 1,409 | 129 | (11,328 | ) | (1,043 | ) | 17,805 | 1,626 | ||||||||||||||||||||||
| Class 529-C | 3,826 | 354 | 172 | 16 | (2,790 | ) | (255 | ) | 1,208 | 115 | ||||||||||||||||||||||
| Class 529-E | 1,383 | 127 | 48 | 4 | (429 | ) | (41 | ) | 1,002 | 90 | ||||||||||||||||||||||
| Class 529-T | — | — | — | 2 | — | 2 | — | — | — | 2 | — | 2 | ||||||||||||||||||||
| Class 529-F-1 | 2,630 | 241 | 173 | 16 | (864 | ) | (80 | ) | 1,939 | 177 | ||||||||||||||||||||||
| Class R-1 | 1,770 | 164 | 41 | 4 | (1,485 | ) | (135 | ) | 326 | 33 | ||||||||||||||||||||||
| Class R-2 | 5,270 | 478 | 155 | 14 | (2,580 | ) | (237 | ) | 2,845 | 255 | ||||||||||||||||||||||
| Class R-2E | 808 | 74 | 23 | 2 | (389 | ) | (35 | ) | 442 | 41 | ||||||||||||||||||||||
| Class R-3 | 3,987 | 365 | 245 | 23 | (2,175 | ) | (202 | ) | 2,057 | 186 | ||||||||||||||||||||||
| Class R-4 | 1,766 | 161 | 116 | 11 | (1,718 | ) | (159 | ) | 164 | 13 | ||||||||||||||||||||||
| Class R-5E | 1,217 | 113 | 30 | 3 | (672 | ) | (61 | ) | 575 | 55 | ||||||||||||||||||||||
| Class R-5 | 535 | 49 | 48 | 4 | (268 | ) | (24 | ) | 315 | 29 | ||||||||||||||||||||||
| Class R-6 | 7,915 | 738 | 406 | 37 | (4,292 | ) | (396 | ) | 4,029 | 379 | ||||||||||||||||||||||
| Total net increase (decrease) | $ | 676,684 | 61,675 | $ | 28,675 | 2,628 | $ | (252,313 | ) | (23,352 | ) | $ | 453,046 | 40,951 | ||||||||||||||||||
| 1 | Includes exchanges between share classes of the fund. |
| 2 | Amount less than one thousand. |
| 3 | Class 529-F-2 and 529-F-3 shares began investment operations on October 30, 2020. |
9. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $1,269,178,000 and $610,660,000, respectively, during the six months ended November 30, 2020.
| American Funds Corporate Bond Fund | 29 |
Financial highlights
| Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before waivers/ reimbursements4 | Ratio of expenses to average net assets after waivers/ reimbursements3,4 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||||||||
| Class A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | $ | 11.52 | $ | .09 | $ | .44 | $ | .53 | $ | (.09 | ) | $ | — | $ | (.09 | ) | $ | 11.96 | 4.64 | %7 | $ | 1,060 | .88 | %8 | .85 | %8 | 1.59 | %8 | ||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .24 | 1.20 | 1.44 | (.24 | ) | (.12 | ) | (.36 | ) | 11.52 | 14.10 | 807 | .88 | .84 | 2.20 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .28 | .44 | .72 | (.28 | ) | — | (.28 | ) | 10.44 | 7.32 | 501 | .95 | .94 | 2.80 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .24 | (.30 | ) | (.06 | ) | (.24 | ) | (.03 | ) | (.27 | ) | 10.00 | (.64 | ) | 407 | 1.03 | .90 | 2.37 | |||||||||||||||||||||||||||||||||
| 5/31/2017 | 10.27 | .22 | .18 | .40 | (.23 | ) | (.11 | ) | (.34 | ) | 10.33 | 3.90 | 9 | 211 | .98 | 9 | .87 | 9 | 2.16 | 9 | ||||||||||||||||||||||||||||||||
| 5/31/2016 | 10.20 | .30 | .26 | .56 | (.29 | ) | (.20 | ) | (.49 | ) | 10.27 | 5.71 | 9 | 52 | .75 | 9 | .53 | 9 | 2.97 | 9 | ||||||||||||||||||||||||||||||||
| Class C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .05 | .44 | .49 | (.05 | ) | — | (.05 | ) | 11.96 | 4.27 | 7 | 56 | 1.57 | 8 | 1.54 | 8 | .88 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .17 | 1.20 | 1.37 | (.17 | ) | (.12 | ) | (.29 | ) | 11.52 | 13.30 | 36 | 1.58 | 1.54 | 1.50 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .20 | .44 | .64 | (.20 | ) | — | (.20 | ) | 10.44 | 6.53 | 20 | 1.70 | 1.69 | 2.05 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .16 | (.30 | ) | (.14 | ) | (.16 | ) | (.03 | ) | (.19 | ) | 10.00 | (1.41 | ) | 17 | 1.81 | 1.68 | 1.58 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .12 | (.18 | ) | (.06 | ) | (.11 | ) | (.07 | ) | (.18 | ) | 10.33 | (.47 | )7 | 10 | 1.77 | 1.64 | 1.40 | |||||||||||||||||||||||||||||||||
| Class T: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .11 | .44 | .55 | (.11 | ) | — | (.11 | ) | 11.96 | 4.78 | 7,9 | — | 11 | .61 | 8,9 | .58 | 8,9 | 1.87 | 8,9 | ||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .27 | 1.20 | 1.47 | (.27 | ) | (.12 | ) | (.39 | ) | 11.52 | 14.43 | 9 | — | 11 | .59 | 9 | .55 | 9 | 2.51 | 9 | |||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .30 | .44 | .74 | (.30 | ) | — | (.30 | ) | 10.44 | 7.60 | 9 | — | 11 | .69 | 9 | .68 | 9 | 3.06 | 9 | ||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .26 | (.30 | ) | (.04 | ) | (.26 | ) | (.03 | ) | (.29 | ) | 10.00 | (.40 | )9 | — | 11 | .83 | 9 | .68 | 9 | 2.56 | 9 | |||||||||||||||||||||||||||||
| 5/31/20175,12 | 10.17 | .04 | .16 | .20 | (.04 | ) | — | (.04 | ) | 10.33 | 1.97 | 7,9 | — | 11 | .15 | 7,9 | .10 | 7,9 | .37 | 7,9 | ||||||||||||||||||||||||||||||||
| Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .09 | .45 | .54 | (.10 | ) | — | (.10 | ) | 11.96 | 4.66 | 7 | 93 | .83 | 8 | .79 | 8 | 1.58 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .25 | 1.20 | 1.45 | (.25 | ) | (.12 | ) | (.37 | ) | 11.52 | 14.13 | 32 | .84 | .80 | 2.18 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .28 | .44 | .72 | (.28 | ) | — | (.28 | ) | 10.44 | 7.30 | 6 | .98 | .97 | 2.77 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .23 | (.30 | ) | (.07 | ) | (.23 | ) | (.03 | ) | (.26 | ) | 10.00 | (.69 | ) | 9 | 1.05 | .94 | 2.35 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .18 | (.18 | ) | — | 13 | (.17 | ) | (.07 | ) | (.24 | ) | 10.33 | .09 | 7 | 2 | 1.14 | 1.00 | 2.07 | |||||||||||||||||||||||||||||||||
| Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .11 | .44 | .55 | (.11 | ) | — | (.11 | ) | 11.96 | 4.80 | 7 | 651 | .56 | 8 | .52 | 8 | 1.78 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .27 | 1.20 | 1.47 | (.27 | ) | (.12 | ) | (.39 | ) | 11.52 | 14.44 | 158 | .57 | .53 | 2.47 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .30 | .44 | .74 | (.30 | ) | — | (.30 | ) | 10.44 | 7.60 | 38 | .69 | .67 | 3.07 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .26 | (.30 | ) | (.04 | ) | (.26 | ) | (.03 | ) | (.29 | ) | 10.00 | (.41 | ) | 26 | .76 | .66 | 2.64 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .20 | (.17 | ) | .03 | (.20 | ) | (.07 | ) | (.27 | ) | 10.33 | .33 | 7 | 5 | .77 | .66 | 2.35 | ||||||||||||||||||||||||||||||||||
| Class F-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .12 | .44 | .56 | (.12 | ) | — | (.12 | ) | 11.96 | 4.84 | 7 | 71 | .48 | 8 | .45 | 8 | 1.95 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .29 | 1.20 | 1.49 | (.29 | ) | (.12 | ) | (.41 | ) | 11.52 | 14.55 | 41 | .48 | .44 | 2.56 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .31 | .44 | .75 | (.31 | ) | — | (.31 | ) | 10.44 | 7.72 | 11 | .59 | .57 | 3.17 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .27 | (.30 | ) | (.03 | ) | (.27 | ) | (.03 | ) | (.30 | ) | 10.00 | (.32 | ) | 8 | .71 | .58 | 2.69 | |||||||||||||||||||||||||||||||||
| 5/31/20175,14 | 10.09 | .09 | .24 | .33 | (.09 | ) | — | (.09 | ) | 10.33 | 3.29 | 7 | 3 | .32 | 7 | .20 | 7 | .89 | 7 | |||||||||||||||||||||||||||||||||
| Class 529-A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .10 | .43 | .53 | (.09 | ) | — | (.09 | ) | 11.96 | 4.64 | 7 | 67 | .87 | 8 | .84 | 8 | 1.61 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .24 | 1.20 | 1.44 | (.24 | ) | (.12 | ) | (.36 | ) | 11.52 | 14.09 | 53 | .88 | .84 | 2.20 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .28 | .44 | .72 | (.28 | ) | — | (.28 | ) | 10.44 | 7.33 | 31 | .95 | .94 | 2.80 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .23 | (.30 | ) | (.07 | ) | (.23 | ) | (.03 | ) | (.26 | ) | 10.00 | (.73 | ) | 23 | 1.09 | .98 | 2.32 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .17 | (.17 | ) | — | 13 | (.17 | ) | (.07 | ) | (.24 | ) | 10.33 | .06 | 7 | 6 | 1.15 | 1.01 | 2.06 | |||||||||||||||||||||||||||||||||
See end of table for footnotes.
| 30 | American Funds Corporate Bond Fund |
Financial highlights (continued)
| Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before waivers/ reimbursements4 | Ratio of expenses to average net assets after waivers/ reimbursements3,4 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||||||||
| Class 529-C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | $ | 11.52 | $ | .05 | $ | .44 | $ | .49 | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 11.96 | 4.24 | %7 | $ | 6 | 1.63 | %8 | 1.60 | %8 | .90 | %8 | ||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .16 | 1.20 | 1.36 | (.16 | ) | (.12 | ) | (.28 | ) | 11.52 | 13.24 | 8 | 1.64 | 1.60 | 1.45 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .20 | .44 | .64 | (.20 | ) | — | (.20 | ) | 10.44 | 6.47 | 6 | 1.75 | 1.74 | 2.00 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .15 | (.30 | ) | (.15 | ) | (.15 | ) | (.03 | ) | (.18 | ) | 10.00 | (1.47 | ) | 4 | 1.86 | 1.74 | 1.53 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .12 | (.18 | ) | (.06 | ) | (.11 | ) | (.07 | ) | (.18 | ) | 10.33 | (.48 | )7 | 2 | 1.82 | 1.69 | 1.36 | |||||||||||||||||||||||||||||||||
| Class 529-E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .08 | .44 | .52 | (.08 | ) | — | (.08 | ) | 11.96 | 4.54 | 7 | 3 | 1.07 | 8 | 1.04 | 8 | 1.41 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .22 | 1.20 | 1.42 | (.22 | ) | (.12 | ) | (.34 | ) | 11.52 | 13.89 | 2 | 1.06 | 1.02 | 2.00 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .26 | .44 | .70 | (.26 | ) | — | (.26 | ) | 10.44 | 7.09 | 1 | 1.17 | 1.16 | 2.58 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .21 | (.30 | ) | (.09 | ) | (.21 | ) | (.03 | ) | (.24 | ) | 10.00 | (.90 | ) | 1 | 1.29 | 1.16 | 2.11 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .16 | (.17 | ) | (.01 | ) | (.16 | ) | (.07 | ) | (.23 | ) | 10.33 | (.02 | )7 | 1 | 1.27 | 1.13 | 1.93 | |||||||||||||||||||||||||||||||||
| Class 529-T: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .11 | .44 | .55 | (.11 | ) | — | (.11 | ) | 11.96 | 4.75 | 7,9 | — | 11 | .65 | 8,9 | .62 | 8,9 | 1.84 | 8,9 | ||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .27 | 1.20 | 1.47 | (.27 | ) | (.12 | ) | (.39 | ) | 11.52 | 14.38 | 9 | — | 11 | .64 | 9 | .61 | 9 | 2.46 | 9 | |||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .30 | .44 | .74 | (.30 | ) | — | (.30 | ) | 10.44 | 7.52 | 9 | — | 11 | .76 | 9 | .75 | 9 | 3.00 | 9 | ||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .26 | (.30 | ) | (.04 | ) | (.26 | ) | (.03 | ) | (.29 | ) | 10.00 | (.47 | )9 | — | 11 | .89 | 9 | .75 | 9 | 2.49 | 9 | |||||||||||||||||||||||||||||
| 5/31/20175,12 | 10.17 | .04 | .16 | .20 | (.04 | ) | — | (.04 | ) | 10.33 | 1.96 | 7,9 | — | 11 | .16 | 7,9 | .11 | 7,9 | .36 | 7,9 | ||||||||||||||||||||||||||||||||
| Class 529-F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .11 | .44 | .55 | (.11 | ) | — | (.11 | ) | 11.96 | 4.76 | 7,9 | — | 11 | .64 | 8,9 | .61 | 8,9 | 1.90 | 8,9 | ||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .27 | 1.20 | 1.47 | (.27 | ) | (.12 | ) | (.39 | ) | 11.52 | 14.37 | 6 | .64 | .60 | 2.44 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .30 | .44 | .74 | (.30 | ) | — | (.30 | ) | 10.44 | 7.54 | 4 | .75 | .73 | 3.02 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .26 | (.30 | ) | (.04 | ) | (.26 | ) | (.03 | ) | (.29 | ) | 10.00 | (.48 | ) | 2 | .85 | .74 | 2.57 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .20 | (.18 | ) | .02 | (.19 | ) | (.07 | ) | (.26 | ) | 10.33 | .30 | 7 | 1 | .85 | .71 | 2.36 | ||||||||||||||||||||||||||||||||||
| Class 529-F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6,15 | 11.68 | .02 | .28 | .30 | (.02 | ) | — | (.02 | ) | 11.96 | 2.54 | 7 | 8 | .05 | 7 | .05 | 7 | .13 | 7 | |||||||||||||||||||||||||||||||||
| Class 529-F-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6,15 | 11.68 | .02 | .28 | .30 | (.02 | ) | — | (.02 | ) | 11.96 | 2.54 | 7 | — | 11 | .06 | 7 | .04 | 7 | .14 | 7 | ||||||||||||||||||||||||||||||||
| Class R-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .06 | .43 | .49 | (.05 | ) | — | (.05 | ) | 11.96 | 4.29 | 7 | 1 | 1.53 | 8 | 1.50 | 8 | .95 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .18 | 1.20 | 1.38 | (.18 | ) | (.12 | ) | (.30 | ) | 11.52 | 13.41 | 1 | 1.49 | 1.45 | 1.58 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .21 | .44 | .65 | (.21 | ) | — | (.21 | ) | 10.44 | 6.64 | 1 | 1.59 | 1.57 | 2.18 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .18 | (.30 | ) | (.12 | ) | (.18 | ) | (.03 | ) | (.21 | ) | 10.00 | (1.19 | )9 | — | 11 | 1.59 | 9 | 1.48 | 9 | 1.83 | 9 | |||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .18 | (.17 | ) | .01 | (.18 | ) | (.07 | ) | (.25 | ) | 10.33 | .15 | 7,9 | — | 11 | 1.12 | 9 | .97 | 9 | 2.06 | 9 | ||||||||||||||||||||||||||||||
See end of table for footnotes.
| American Funds Corporate Bond Fund | 31 |
Financial highlights (continued)
| Income
(loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Period ended | Net
asset value, beginning of period | Net investment income | Net
gains (losses) on securities (both realized and unrealized) | Total
from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net
asset value, end of period | Total return2,3 | Net
assets, end of period (in millions) | Ratio
of expenses to average net assets before waivers/ reimbursements4 | Ratio
of expenses to average net assets after waivers/ reimbursements3,4 | Ratio
of net income to average net assets3 | |||||||||||||||||||||||||||||||||||||||
| Class R-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | $ | 11.52 | $ | .06 | $ | .43 | $ | .49 | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 11.96 | 4.30 | %7 | $ | 9 | 1.52 | %8 | 1.49 | %8 | .96 | %8 | ||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .17 | 1.20 | 1.37 | (.17 | ) | (.12 | ) | (.29 | ) | 11.52 | 13.34 | 8 | 1.55 | 1.51 | 1.53 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .21 | .44 | .65 | (.21 | ) | — | (.21 | ) | 10.44 | 6.58 | 5 | 1.65 | 1.63 | 2.11 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .17 | (.30 | ) | (.13 | ) | (.17 | ) | (.03 | ) | (.20 | ) | 10.00 | (1.35 | ) | 3 | 1.74 | 1.61 | 1.68 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .15 | (.17 | ) | (.02 | ) | (.15 | ) | (.07 | ) | (.22 | ) | 10.33 | (.11 | )7 | 1 | 1.64 | 1.39 | 1.75 | |||||||||||||||||||||||||||||||||
| Class R-2E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .07 | .44 | .51 | (.07 | ) | — | (.07 | ) | 11.96 | 4.43 | 7 | 1 | 1.27 | 8 | 1.24 | 8 | 1.21 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .20 | 1.20 | 1.40 | (.20 | ) | (.12 | ) | (.32 | ) | 11.52 | 13.67 | 1 | 1.26 | 1.22 | 1.81 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .24 | .44 | .68 | (.24 | ) | — | (.24 | ) | 10.44 | 6.90 | — | 11 | 1.35 | 1.33 | 2.45 | ||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .23 | (.30 | ) | (.07 | ) | (.23 | ) | (.03 | ) | (.26 | ) | 10.00 | (.73 | )9 | — | 11 | 1.32 | 9 | 1.22 | 9 | 2.16 | 9 | |||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .20 | (.17 | ) | .03 | (.20 | ) | (.07 | ) | (.27 | ) | 10.33 | .36 | 7,9 | — | 11 | .75 | 9 | .63 | 9 | 2.33 | 9 | ||||||||||||||||||||||||||||||
| Class R-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .08 | .44 | .52 | (.08 | ) | — | (.08 | ) | 11.96 | 4.51 | 7 | 12 | 1.12 | 8 | 1.09 | 8 | 1.36 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .22 | 1.20 | 1.42 | (.22 | ) | (.12 | ) | (.34 | ) | 11.52 | 13.82 | 10 | 1.13 | 1.09 | 1.96 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .25 | .44 | .69 | (.25 | ) | — | (.25 | ) | 10.44 | 7.03 | 7 | 1.22 | 1.21 | 2.54 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .21 | (.30 | ) | (.09 | ) | (.21 | ) | (.03 | ) | (.24 | ) | 10.00 | (.92 | ) | 4 | 1.28 | 1.18 | 2.16 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .17 | (.17 | ) | — | 13 | (.17 | ) | (.07 | ) | (.24 | ) | 10.33 | .10 | 7 | 1 | 1.29 | 1.11 | 2.02 | |||||||||||||||||||||||||||||||||
| Class R-4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .10 | .44 | .54 | (.10 | ) | — | (.10 | ) | 11.96 | 4.66 | 7 | 7 | .82 | 8 | .79 | 8 | 1.64 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .25 | 1.20 | 1.45 | (.25 | ) | (.12 | ) | (.37 | ) | 11.52 | 14.16 | 4 | .83 | .79 | 2.27 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .28 | .44 | .72 | (.28 | ) | — | (.28 | ) | 10.44 | 7.34 | 3 | .93 | .92 | 2.82 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .24 | (.30 | ) | (.06 | ) | (.24 | ) | (.03 | ) | (.27 | ) | 10.00 | (.66 | ) | 2 | 1.05 | .92 | 2.36 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .20 | (.18 | ) | .02 | (.19 | ) | (.07 | ) | (.26 | ) | 10.33 | .26 | 7 | 1 | 1.15 | .85 | 2.31 | ||||||||||||||||||||||||||||||||||
| Class R-5E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .11 | .44 | .55 | (.11 | ) | — | (.11 | ) | 11.96 | 4.76 | 7 | 2 | .63 | 8 | .60 | 8 | 1.84 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .27 | 1.20 | 1.47 | (.27 | ) | (.12 | ) | (.39 | ) | 11.52 | 14.37 | 1 | .64 | .59 | 2.43 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .30 | .44 | .74 | (.30 | ) | — | (.30 | ) | 10.44 | 7.59 | 1 | .70 | .68 | 3.08 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .27 | (.30 | ) | (.03 | ) | (.27 | ) | (.03 | ) | (.30 | ) | 10.00 | (.35 | ) | — | 11 | .81 | .61 | 2.66 | ||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .20 | (.17 | ) | .03 | (.20 | ) | (.07 | ) | (.27 | ) | 10.33 | .37 | 7 | — | 11 | .73 | .62 | 2.34 | |||||||||||||||||||||||||||||||||
| Class R-5: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .12 | .43 | .55 | (.11 | ) | — | (.11 | ) | 11.96 | 4.82 | 7 | 2 | .53 | 8 | .50 | 8 | 1.95 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .28 | 1.20 | 1.48 | (.28 | ) | (.12 | ) | (.40 | ) | 11.52 | 14.49 | 1 | .53 | .49 | 2.55 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .31 | .44 | .75 | (.31 | ) | — | (.31 | ) | 10.44 | 7.67 | 1 | .63 | .61 | 3.14 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .27 | (.30 | ) | (.03 | ) | (.27 | ) | (.03 | ) | (.30 | ) | 10.00 | (.37 | ) | 1 | .74 | .62 | 2.67 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .21 | (.18 | ) | .03 | (.20 | ) | (.07 | ) | (.27 | ) | 10.33 | .34 | 7 | — | 11 | .81 | .63 | 2.42 | |||||||||||||||||||||||||||||||||
| Class R-6: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/30/20205,6 | 11.52 | .12 | .44 | .56 | (.12 | ) | — | (.12 | ) | 11.96 | 4.84 | 7 | 15 | .49 | 8 | .46 | 8 | 2.00 | 8 | |||||||||||||||||||||||||||||||||
| 5/31/2020 | 10.44 | .29 | 1.20 | 1.49 | (.29 | ) | (.12 | ) | (.41 | ) | 11.52 | 14.55 | 12 | .48 | .45 | 2.62 | ||||||||||||||||||||||||||||||||||||
| 5/31/2019 | 10.00 | .31 | .44 | .75 | (.31 | ) | — | (.31 | ) | 10.44 | 7.70 | 7 | .60 | .58 | 3.21 | |||||||||||||||||||||||||||||||||||||
| 5/31/2018 | 10.33 | .27 | (.30 | ) | (.03 | ) | (.27 | ) | (.03 | ) | (.30 | ) | 10.00 | (.36 | ) | 1 | .76 | .62 | 2.63 | |||||||||||||||||||||||||||||||||
| 5/31/20175,10 | 10.57 | .21 | (.19 | ) | .02 | (.19 | ) | (.07 | ) | (.26 | ) | 10.33 | .30 | 7 | 1 | .84 | .62 | 2.54 | ||||||||||||||||||||||||||||||||||
| Six months ended November 30, | Year ended May 31, | |||||||||||||||||||||||
| 20205,6,7 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
| Portfolio turnover rate for all share classes16 | 78% | 232% | 203% | 153% | 162% | 295% | ||||||||||||||||||
| 32 | American Funds Corporate Bond Fund |
Financial highlights (continued)
| 1 | Based on average shares outstanding. |
| 2 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
| 3 | This column reflects the impact, if any, of certain waivers/reimbursements from CRMC and/or AFS. During the periods shown, CRMC waived a portion of investment advisory services fees, reimbursed a portion of miscellaneous fees and expenses and/or reimbursed a portion of transfer agent services fees for certain share classes. In addition, during some of the periods shown, AFS waived a portion of transfer agent services fees for Class F-3 shares. |
| 4 | Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds. |
| 5 | Based on operations for a period that is less than a full year. |
| 6 | Unaudited. |
| 7 | Not annualized. |
| 8 | Annualized. |
| 9 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
| 10 | This share class began investment operations on July 29, 2016. |
| 11 | Amount less than $1 million. |
| 12 | Class T and 529-T shares began investment operations on April 7, 2017. |
| 13 | Amount less than $.01. |
| 14 | Class F-3 shares began investment operations on January 27, 2017. |
| 15 | Class 529-F-2 and 529-F-3 shares began investment operations on October 30, 2020. |
| 16 | Rates do not include the fund’s portfolio activity with respect to any Central Funds. |
See notes to financial statements.
| American Funds Corporate Bond Fund | 33 |
| Expense example | unaudited |
As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (June 1, 2020, through November 30, 2020).
Actual expenses:
The first line of each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3, 529-F-1, 529-F-2 and 529-F-3 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following page are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| 34 | American Funds Corporate Bond Fund |
| Expense example (continued) | Beginning account value 6/1/2020 | Ending account value 11/30/2020 | Expenses paid during period* | Annualized expense ratio | ||||||||||||
| Class A – actual return | $ | 1,000.00 | $ | 1,046.37 | $ | 4.36 | .85 | % | ||||||||
| Class A – assumed 5% return | 1,000.00 | 1,020.81 | 4.31 | .85 | ||||||||||||
| Class C – actual return | 1,000.00 | 1,042.71 | 7.89 | 1.54 | ||||||||||||
| Class C – assumed 5% return | 1,000.00 | 1,017.35 | 7.79 | 1.54 | ||||||||||||
| Class T – actual return | 1,000.00 | 1,047.76 | 2.98 | .58 | ||||||||||||
| Class T – assumed 5% return | 1,000.00 | 1,022.16 | 2.94 | .58 | ||||||||||||
| Class F-1 – actual return | 1,000.00 | 1,046.58 | 4.05 | .79 | ||||||||||||
| Class F-1 – assumed 5% return | 1,000.00 | 1,021.11 | 4.00 | .79 | ||||||||||||
| Class F-2 – actual return | 1,000.00 | 1,048.00 | 2.67 | .52 | ||||||||||||
| Class F-2 – assumed 5% return | 1,000.00 | 1,022.46 | 2.64 | .52 | ||||||||||||
| Class F-3 – actual return | 1,000.00 | 1,048.41 | 2.31 | .45 | ||||||||||||
| Class F-3 – assumed 5% return | 1,000.00 | 1,022.81 | 2.28 | .45 | ||||||||||||
| Class 529-A – actual return | 1,000.00 | 1,046.42 | 4.31 | .84 | ||||||||||||
| Class 529-A – assumed 5% return | 1,000.00 | 1,020.86 | 4.26 | .84 | ||||||||||||
| Class 529-C – actual return | 1,000.00 | 1,042.43 | 8.19 | 1.60 | ||||||||||||
| Class 529-C – assumed 5% return | 1,000.00 | 1,017.05 | 8.09 | 1.60 | ||||||||||||
| Class 529-E – actual return | 1,000.00 | 1,045.35 | 5.33 | 1.04 | ||||||||||||
| Class 529-E – assumed 5% return | 1,000.00 | 1,019.85 | 5.27 | 1.04 | ||||||||||||
| Class 529-T – actual return | 1,000.00 | 1,047.49 | 3.18 | .62 | ||||||||||||
| Class 529-T – assumed 5% return | 1,000.00 | 1,021.96 | 3.14 | .62 | ||||||||||||
| Class 529-F-1 – actual return | 1,000.00 | 1,047.64 | 3.13 | .61 | ||||||||||||
| Class 529-F-1 – assumed 5% return | 1,000.00 | 1,022.01 | 3.09 | .61 | ||||||||||||
| Class 529-F-2 – actual return† | 1,000.00 | 1,047.86 | .46 | .55 | ||||||||||||
| Class 529-F-2 – assumed 5% return† | 1,000.00 | 1,022.31 | 2.79 | .55 | ||||||||||||
| Class 529-F-3 – actual return† | 1,000.00 | 1,048.17 | .41 | .49 | ||||||||||||
| Class 529-F-3 – assumed 5% return† | 1,000.00 | 1,022.61 | 2.48 | .49 | ||||||||||||
| Class R-1 – actual return | 1,000.00 | 1,042.94 | 7.68 | 1.50 | ||||||||||||
| Class R-1 – assumed 5% return | 1,000.00 | 1,017.55 | 7.59 | 1.50 | ||||||||||||
| Class R-2 – actual return | 1,000.00 | 1,043.00 | 7.63 | 1.49 | ||||||||||||
| Class R-2 – assumed 5% return | 1,000.00 | 1,017.60 | 7.54 | 1.49 | ||||||||||||
| Class R-2E – actual return | 1,000.00 | 1,044.31 | 6.35 | 1.24 | ||||||||||||
| Class R-2E – assumed 5% return | 1,000.00 | 1,018.85 | 6.28 | 1.24 | ||||||||||||
| Class R-3 – actual return | 1,000.00 | 1,045.06 | 5.59 | 1.09 | ||||||||||||
| Class R-3 – assumed 5% return | 1,000.00 | 1,019.60 | 5.52 | 1.09 | ||||||||||||
| Class R-4 – actual return | 1,000.00 | 1,046.64 | 4.05 | .79 | ||||||||||||
| Class R-4 – assumed 5% return | 1,000.00 | 1,021.11 | 4.00 | .79 | ||||||||||||
| Class R-5E – actual return | 1,000.00 | 1,047.62 | 3.08 | .60 | ||||||||||||
| Class R-5E – assumed 5% return | 1,000.00 | 1,022.06 | 3.04 | .60 | ||||||||||||
| Class R-5 – actual return | 1,000.00 | 1,048.16 | 2.57 | .50 | ||||||||||||
| Class R-5 – assumed 5% return | 1,000.00 | 1,022.56 | 2.54 | .50 | ||||||||||||
| Class R-6 – actual return | 1,000.00 | 1,048.40 | 2.36 | .46 | ||||||||||||
| Class R-6 – assumed 5% return | 1,000.00 | 1,022.76 | 2.33 | .46 | ||||||||||||
| * | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period). |
| † | The period for the “annualized expense ratio” and “actual return” line is based on the number of days since the share class began investment operations on October 30, 2020. The “assumed 5% return” line is based on 183 days. |
| American Funds Corporate Bond Fund | 35 |
Office of the fund
6455 Irvine Center Drive
Irvine, CA 92618-4518
Investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Counsel
Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726
Independent registered public accounting firm
PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
| 36 | American Funds Corporate Bond Fund |
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 your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on our website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on our website.
American Funds Corporate Bond Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form NPORT-P. The list of portfolio holdings is available free of charge on the SEC website and on our website.
This report is for the information of shareholders of American Funds Corporate Bond Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after March 31, 2021, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
American Funds Distributors, Inc., member FINRA.
The Capital Advantage®
Since 1931, Capital Group, home of American Funds, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in superior outcomes.
| Aligned with investor success | |
| We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 28 years of investment industry experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1 | |
| The Capital System | |
| The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. | |
| American Funds’ superior outcomes | |
| Equity funds have beaten their Lipper peer indexes in 92% of 10-year periods and 99% of 20-year periods.2 Fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.3 Fund management fees have been among the lowest in the industry.4 |
| 1 | Investment industry experience as of December 31, 2019. | |
| 2 | Based on Class F-2 share results for rolling periods through December 31, 2019. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. | |
| 3 | Based on Class F-2 share results as of December 31, 2019. Fifteen of the 17 fixed income American Funds that have been in existence for the three-year period showed a three-year correlation below 0.2. Standard & Poor’s 500 Composite Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction. | |
| 4 | On average, our management fees were in the lowest quintile 65% of the time, based on the 20-year period ended December 31, 2019, versus comparable Lipper categories, excluding funds of funds. |
Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on the results of the original share class of the fund without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see capitalgroup.com for more information on specific expense adjustments and the actual dates of first sale.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
ITEM 2 – Code of Ethics
Not applicable for filing of semi-annual reports to shareholders.
ITEM 3 – Audit Committee Financial Expert
Not applicable for filing of semi-annual reports to shareholders.
ITEM 4 – Principal Accountant Fees and Services
Not applicable for filing of semi-annual reports to shareholders.
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
Not applicable, insofar as the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 11 – Controls and Procedures
| (a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
| (b) |
There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
|
ITEM 12 – Exhibits
| (a)(1) | Not applicable for filing of semi-annual reports to shareholders. |
| (a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AMERICAN FUNDS CORPORATE BOND FUND | |
| By __/s/ Kristine M. Nishiyama____________________ | |
|
Kristine M. Nishiyama, Principal Executive Officer | |
| Date: January 29, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By __/s/ Kristine M. Nishiyama_________________ |
|
Kristine M. Nishiyama, Principal Executive Officer |
| Date: January 29, 2021 |
| By ___/s/ Brian C. Janssen __________ |
|
Brian C. Janssen, Treasurer and Principal Financial Officer |
| Date: January 29, 2021 |