N-CSRS 1 ibfa_ncrs.htm N-CSRS

 

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: 811-05446

 

Intermediate Bond Fund of America

(Exact Name of Registrant as Specified in Charter)

 

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

 

Registrant's telephone number, including area code: (213) 486-9200

 

Date of fiscal year end: August 31

 

Date of reporting period: February 28, 2019

 

Brian C. Janssen

Intermediate Bond Fund of America

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

 
 

 

ITEM 1 – Reports to Stockholders

 

 

Intermediate Bond
Fund of America®
 
Semi-annual report
for the six months ended
February 28, 2019

 

Investing for income
and stability.

 

Beginning January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, we intend to no longer mail paper copies of the fund’s shareholder reports, unless specifically requested from American Funds or your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the American Funds website (americanfunds.com); you will be notified by mail and provided with a website link to access the report each time a report is posted. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. If you prefer to receive shareholder reports and other communications electronically, you may update your mailing preferences with your financial intermediary, or enroll in e-delivery at americanfunds.com (for accounts held directly with the fund).

 

You may elect to receive paper copies of all future reports free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you may inform American Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at (800) 421-4225. Your election to receive paper reports will apply to all funds held with American Funds or through your financial intermediary.

 

 

Intermediate Bond Fund of America seeks to provide current income consistent with the maturity and quality standards described in the prospectus, and preservation of capital.

 

This fund is one of more than 40 offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 85 years, Capital 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 2.50%) 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. Share 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 americanfunds.com.

 

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2019 (the most recent calendar quarter-end):

 

Class A shares   1 year   5 years   10 years
             
Reflecting 2.50% maximum sales charge    0.77%   0.82%   1.98%

 

For other share class results, visit americanfunds.com and americanfundsretirement.com.

 

The total annual fund operating expense ratio was 0.60% for Class A shares as of the prospectus dated November 1, 2018 (as supplemented to date).

 

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

 

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. 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.

 

Fellow investors:

 

Sharp volatility followed by rediscovered optimism characterized the first half of Intermediate Bond Fund of America’s fiscal year. Bonds saw moderate returns as yield movement across the Treasury curve was mixed. For the six-month period ended February 28, 2019, the fund gained 1.84%.

 

By comparison, the Bloomberg Barclays U.S. Government/Credit 1–7 Years ex BBB Index, a broad measure of the market in which the fund invests, rose 2.05%. Meanwhile, the Lipper Short-Intermediate Investment-Grade Debt Funds Average returned 1.62%. This peer group measure includes some funds that, unlike this fund, hold below-investment-grade bonds (rated BB/Ba and below) such as high-yield corporate debt. Results for other time periods are shown in the table below.

 

Investors received dividends of 11 cents a share and earned an income return of 0.84% over the past six months, whether reinvesting dividends or taking them in cash. The fund’s share price increased to $13.27 from $13.14.

 

Bond market overview

The first half of the fund’s fiscal year was a rollercoaster for markets. Equity volatility spiked in the fall persisting through year-end, due to fears of too-restrictive monetary policy and a global economic slowdown. Markets recovered in the early part of 2019, thanks to optimism around somewhat stronger indicators and central banks communicating less restrictive policy going forward.

 

Results at a glance

 

For periods ended February 28, 2019, with all distributions reinvested

 

    Cumulative total returns   Average annual total returns
    6 months   1 year   3 years   5 years   10 years   Lifetime1
                                                 
Intermediate Bond Fund of America (Class A shares)     1.84 %     2.59 %     0.87 %     1.08 %     2.24 %     4.48 %
Bloomberg Barclays U.S. Government/Credit 1–7 Years ex BBB Index2      2.05       3.01       1.01       1.39       2.26       5.13  
Lipper Short-Intermediate Investment-Grade Debt Funds Average3      1.62       2.40       1.70       1.33       3.23       5.10  

 

1 Since February 19, 1988.
2 The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Source: Bloomberg Index Services Ltd.
3 Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Source: Thomson Reuters Lipper.

 

Intermediate Bond Fund of America 1
 

The Federal Reserve hiked interest rates twice over the six-month period. It increased the federal funds target rate by 50 basis points to a range between 2.25%–2.50%, citing a strong U.S. economy, moderate inflation and a tight labor market. Treasury yields moved higher for 30-year maturities and declined for medium-term maturities. The benchmark 10-year Treasury yield ended the six-month period 13 basis points lower at 2.73%.

 

The broad bond market saw a 2.0% return in the first half of the fund’s fiscal year. Across major sectors, returns varied. Treasury bonds and investment-grade corporate bonds had similar results, with 1.8% and 2.0% returns, respectively. Treasury Inflation-Protected Securities lost 0.2%, as inflation expectations sagged. The spread between investment-grade corporate bonds and Treasuries — the premium investors receive for taking credit risk — widened slightly during the period by 7 basis points to 121 basis points. However, spreads had widened more sharply in late 2018 before tightening again as economic expectations improved in early 2019.

 

Inside the portfolio

In a relatively volatile period, the fund notched a strong return that outpaced its peers. The fund’s return over this period can be attributed to several factors, but the decline in yields for medium-term Treasuries had a notable positive impact. The fund’s duration position, its sensitivity to interest rates, has not moved much from where it started the fiscal year. The fund was positioned for five-year Treasury yields to decline by more than 30-year yields. This view benefited results as five-year yields fell while 30-year yields rose.

 

Amid volatility, the portfolio’s corporate bond exposure helped results relative to its peers, which tend to hold more credit risk on average. However, the credit position was also a reason why the fund lagged its benchmark, as the fund holds more corporate bonds than the index. At the end of the period, the portfolio held fewer corporate bonds than it did at the beginning of the fiscal year, making the position slightly more defensive. The fund’s corporate bond holdings declined to below 23% from over 26% during the six-month period.

 

To manage duration and curve positioning, the fund used both cash bonds and derivatives. These financial instruments, including interest rate swaps and futures, can provide protection when interest rates move contrary to what managers expect or can express managers’ interest rate expectations in a lower cost manner than buying additional bonds. Derivatives were used primarily to shift interest rate exposure away from longer maturities and toward intermediate maturities. Credit default swaps were also used to manage credit risk.

 

2 Intermediate Bond Fund of America
 

The portfolio’s Treasury Inflation-Protected Securities (TIPS) had a negative impact on results, due to inflation expectations falling in late 2018. Although managers reduced the fund’s holdings in TIPS during the period to 5% from 6%, they are currently maintaining a significant position because they see the potential for inflation to rise in a late economic cycle environment.

 

Looking ahead

Despite markets rebounding in early 2019, managers still see reasons for caution as many key uncertainties persist. In particular, they are paying attention to the Chinese economy. Its growth appears to be slowing significantly, which could have knock-on impacts across the globe. And until they are resolved, U.S./China trade negotiations will also continue to be a spoke in the wheel of companies trying to make investment decisions.

 

Although a number of market watchers anticipate a recession in 2020, it could ultimately take longer or serve as a relatively mild recession. However, debt imbalances continue to trouble managers, as companies and governments persistently issue a concerning amount of debt.

 

Finally, central bank policy is also more uncertain. Although the Fed appears to be on pause in early 2019, it could resume tightening if markets calm and U.S. growth proceeds moderately. However, managers do not see yields rising dramatically from here in the near-term.

 

With so much unknown, managers will exercise vigilance on credit, focusing on high-quality bonds that are more likely to hold up in a downturn. Interest rate risk, at this stage, is less of a concern than it was a year ago. In such an environment, the Intermediate Bond Fund of America will aim to preserve its shareholders’ capital and provide diversification from potential equity declines.

 

We appreciate your support and look forward to reporting to you again in six months.

 

Cordially,

 

 

Mark A. Brett
President

 

April 11, 2019

 

For current information about the fund, visit americanfunds.com.

 

Intermediate Bond Fund of America 3
 
Summary investment portfolio February 28, 2019 unaudited
   
Portfolio by type of security Percent of net assets

 

 

Portfolio quality summary*   Percent of
net assets
 
U.S. Treasury and agency     51.12 %
AAA/Aaa     17.16  
AA/Aa     6.61  
A/A     12.50  
BBB/Baa     5.61  
Other     .17  
Short-term securities & other assets less liabilities     6.83  

 

* 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 93.16% Principal amount
(000)
    Value
(000)
 
U.S. Treasury bonds & notes 51.12%                
U.S. Treasury 46.14%                
U.S. Treasury 1.50% 2019   $ 344,100     $ 341,471  
U.S. Treasury 1.625% 2019     86,850       86,200  
U.S. Treasury 1.875% 2019     144,100       143,329  
U.S. Treasury 1.25% 20201     175,500       173,454  
U.S. Treasury 1.50% 2020     131,700       130,022  
U.S. Treasury 1.75% 2020     138,920       137,100  
U.S. Treasury 2.00% 2020     144,430       143,090  
U.S. Treasury 2.25% 2020     82,300       82,044  
U.S. Treasury 2.875% 2020     479,085       481,615  
U.S. Treasury 1.125% 20211     200,000       194,562  
U.S. Treasury 1.125% 2021     93,876       90,749  
U.S. Treasury 1.375% 2021     155,220       151,856  
U.S. Treasury 1.75% 2021     150,000       147,027  
U.S. Treasury 2.50% 2021     84,000       83,958  
U.S. Treasury 1.75% 2022     100,000       97,679  

 

4 Intermediate Bond Fund of America
 
  Principal amount
(000)
    Value
(000)
 
U.S. Treasury 1.875% 2022   $ 400,000     $ 392,480  
U.S. Treasury 1.875% 2022     89,000       87,092  
U.S. Treasury 2.00% 2022     526,400       517,046  
U.S. Treasury 1.625% 2023     109,456       105,553  
U.S. Treasury 2.375% 2023     115,000       114,439  
U.S. Treasury 2.50% 2023     550,855       550,662  
U.S. Treasury 2.625% 2023     246,711       247,789  
U.S. Treasury 2.625% 2023     155,000       155,708  
U.S. Treasury 2.625% 2023     150,000       150,703  
U.S. Treasury 2.75% 2023     120,000       121,111  
U.S. Treasury 2.75% 2023     100,000       100,980  
U.S. Treasury 2.875% 2023     341,000       346,569  
U.S. Treasury 2.875% 2023     160,900       163,396  
U.S. Treasury 2.125% 2024     426,625       417,094  
U.S. Treasury 2.50% 2024     782,161       781,699  
U.S. Treasury 2.50% 2024     122,000       121,780  
U.S. Treasury 2.625% 2025     194,000       194,250  
U.S. Treasury 2.75% 2025     175,000       176,552  
U.S. Treasury 2.875% 2025     130,000       132,138  
U.S. Treasury 1.13%–8.75% 2019–2026     1,296,870       1,281,338  
              8,642,535  
                 
U.S. Treasury inflation-protected securities 4.98%                
U.S. Treasury Inflation-Protected Security 0.125% 20222     77,488       76,139  
U.S. Treasury Inflation-Protected Security 0.625% 20232     235,188       234,939  
U.S. Treasury Inflation-Protected Security 0.625% 20242     94,386       94,463  
U.S. Treasury Inflation-Protected Security 0.625% 20262     105,745       105,276  
U.S. Treasury Inflation-Protected Security 0.375% 20272     118,059       114,840  
U.S. Treasury Inflation-Protected Security 0.75% 20421,2     145,818       135,817  
U.S. Treasury Inflation-Protected Security 1.375% 20442     91,639       96,974  
U.S. Treasury Inflation-Protected Securities 0.13%–2.13% 2021–20462     75,472       74,167  
              932,615  
                 
Total U.S. Treasury bonds & notes             9,575,150  
                 
Corporate bonds & notes 22.36%                
Financials 7.37%                
Other securities             1,380,375  
                 
Other 14.99%                
Other securities             2,807,505  
                 
Total corporate bonds & notes             4,187,880  
                 
Mortgage-backed obligations 9.30%                
Federal agency mortgage-backed obligations 7.47%                
Fannie Mae 4.00% 20333     75,925       77,983  
Fannie Mae 3.00% 20343,4     99,540       99,345  
Fannie Mae 4.50% 20493,4     78,940       81,684  
Fannie Mae 0%–11.01% 2025–20493,4,5     397,676       404,207  
Government National Mortgage Assn. 5.00% 20493,4     139,391       145,189  
Government National Mortgage Assn. 3.00%–5.00% 2042–20493,4     78,021       80,666  
Other securities             509,018  
              1,398,092  

 

Intermediate Bond Fund of America 5
 
Bonds, notes & other debt instruments (continued) Principal amount
(000)
    Value
(000)
 
Mortgage-backed obligations (continued)                
Other 1.83%                
Other securities           $ 342,894  
                 
Total mortgage-backed obligations             1,740,986  
                 
Asset-backed obligations 5.55%                
Chase Issuance Trust, Series 2016-A5, Class A5, 1.27% 20213   $ 92,775       92,307  
Other securities             946,983  
              1,039,290  
                 
Bonds & notes of governments & government agencies outside the U.S. 4.81%                
Other securities             900,215  
                 
Municipals 0.02%                
Other securities             4,130  
                 
Total bonds, notes & other debt instruments (cost: $17,505,605,000)             17,447,651  
                 
Preferred securities 0.01%                
Financials 0.01%                
Other securities             2,670  
                 
Total preferred securities (cost: $3,985,000)             2,670  
                 
Short-term securities 9.31%                
ExxonMobil Corp. 2.47% due 3/6/2019–3/19/2019     100,000       99,917  
Federal Home Loan Bank 2.36%–2.40% due 3/6/2019–4/22/2019     519,500       518,725  
U.S. Treasury Bills 2.33%–2.39% due 3/14/2019–5/9/2019     592,800       591,478  
Wal-Mart Stores, Inc. 2.41% due 3/11/2019–3/15/20196     75,000       74,937  
Other securities             457,911  
                 
Total short-term securities (cost: $1,743,033,000)             1,742,968  
Total investment securities 102.48% (cost: $19,252,623,000)             19,193,289  
Other assets less liabilities (2.48)%             (464,510 )
                 
Net assets 100.00%           $ 18,728,779  

 

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

 

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $89,006,000, which represented .48% of the net assets of the fund.

 

6 Intermediate Bond Fund of America
 

Futures contracts

Contracts   Type   Number of
contracts
  Expiration   Notional
amount
(000)



7
  Value at
2/28/2019
(000)



8
  Unrealized
appreciation
(depreciation)
at 2/28/2019
(000)
 
90 Day Euro Dollar Futures   Long   1,307   December 2019   $ 326,750     $ 318,124       $ 2,006  
2 Year U.S. Treasury Note Futures   Long   24,246   July 2019     4,849,200       5,144,887         (2,595 )
5 Year U.S. Treasury Note Futures   Long   41,107   July 2019     4,110,700       4,709,321         (8,034 )
10 Year U.S. Treasury Note Futures   Long   4,159   June 2019     415,900       507,398         (1,672 )
10 Year Ultra U.S. Treasury Note Futures   Short   7,693   June 2019     (769,300 )     (995,883 )       4,753  
20 Year U.S. Treasury Bond Futures   Short   37   June 2019     (3,700 )     (5,345 )       34  
30 Year Ultra U.S. Treasury Bond Futures   Short   1,756   June 2019     (175,600 )     (280,247 )       3,590  
                                  $ (1,918 )

 

Swap contracts

 

Interest rate swaps

 

Receive   Pay   Expiration
date
  Notional
(000)
    Value at
2/28/2019
(000)
    Upfront
payments/
receipts
(000)
    Unrealized
appreciation
(depreciation)
at 2/28/2019
(000)
 
2.5045%   U.S. EFFR   8/29/2020   $ 247,620     $ 506       $       $ 506  
2.5215%   U.S. EFFR   8/29/2020     181,380       416                 416  
3-month USD-LIBOR   2.806%   8/29/2020     76,300       (178 )               (178 )
2.622%   U.S. EFFR   9/14/2020     255,000       976                 976  
2.3995%   U.S. EFFR   1/11/2021     171,830       96                 96  
2.4035%   U.S. EFFR   1/11/2021     128,170       81                 81  
2.3755%   U.S. EFFR   2/6/2021     456,000       107                 107  
3-month USD-LIBOR   2.8755%   7/3/2023     498,644       (6,534 )               (6,534 )
U.S. EFFR   2.508%   7/3/2023     660,645       (6,662 )               (6,662 )
U.S. EFFR   2.4435%   12/20/2023     33,045       (246 )               (246 )
U.S. EFFR   2.45375%   12/20/2023     296,015       (2,346 )               (2,346 )
U.S. EFFR   2.408%   2/8/2029     31,000       49                 49  
3-month USD-LIBOR   2.482%   7/3/2037     35,000       1,963                 1,963  
3-month USD-LIBOR   2.556%   11/3/2037     38,000       1,759                 1,759  
3-month USD-LIBOR   3.238%   8/8/2044     15,000       (998 )               (998 )
3-month USD-LIBOR   2.7045%   1/2/2045     41,000       1,361                 1,361  
3-month USD-LIBOR   2.454%   1/15/2045     24,000       1,932                 1,932  
3-month USD-LIBOR   2.58245%   11/5/2045     120,000       6,905                 6,905  
3-month USD-LIBOR   2.6485%   11/16/2045     13,050       584                 584  
3-month USD-LIBOR   2.52822%   11/23/2045     17,800       1,209                 1,209  
3-month USD-LIBOR   2.59125%   12/16/2045     36,000       2,010                 2,010  
U.S. EFFR   2.166%   10/23/2047     20,000       1,678                 1,678  
U.S. EFFR   2.172%   11/8/2047     50,000       4,141                 4,141  
U.S. EFFR   2.145%   11/9/2047     61,400       5,425                 5,425  
U.S. EFFR   2.153%   11/10/2047     61,500       5,334                 5,334  
U.S. EFFR   2.155%   11/10/2047     34,550       2,982                 2,982  
U.S. EFFR   2.17%   11/13/2047     62,550       5,209                 5,209  

 

Intermediate Bond Fund of America 7
 

Swap contracts (continued)

 

Interest rate swaps (continued)

 

Receive   Pay   Expiration
date
  Notional
(000)
    Value at
2/28/2019
(000)
    Upfront
payments/
receipts
(000)
    Unrealized
appreciation
(depreciation)
at 2/28/2019
(000)
 
U.S. EFFR   2.5635%   2/12/2048   $ 105,651     $ 336       $       $ 336  
U.S. EFFR   2.4615%   3/15/2048     6,500       156                 156  
2.98%   3-month USD-LIBOR   3/15/2048     6,500       132                 132  
U.S. EFFR   2.485%   3/15/2048     6,500       125                 125  
2.9625%   3-month USD-LIBOR   3/15/2048     6,500       109                 109  
U.S. EFFR   2.425%   3/16/2048     13,000       409                 409  
2.917%   3-month USD-LIBOR   3/16/2048     13,000       98                 98  
U.S. EFFR   2.42875%   4/18/2048     32,000       978                 978  
                              $       $ 30,102  

 

Credit default swaps

 

Centrally cleared credit default swaps on credit indices — buy protection

 

Receive   Pay/
Payment frequency
  Expiration
date
  Notional
(000)
    Value at
2/28/2019
(000)
      Upfront
payments
(000)
      Unrealized
depreciation
at 2/28/2019
(000)
 
CDX.NA.IG.31   1.00%/Quarterly   12/20/2023   $ 650,000       $(11,575 )       $(9,920 )       $(1,655 )

 

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

 

1 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $120,685,000, which represented .64% of the net assets of the fund.
2 Index-linked bond whose principal amount moves with a government price index.
3 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
4 Purchased on a TBA basis.
5 Coupon rate may change periodically.
6 Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) 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, including those in “Other securities,” was $2,928,523,000, which represented 15.64% of the net assets of the fund.
7 Notional amount is calculated based on the number of contracts and notional contract size.
8 Value is calculated based on the notional amount and current market price.

 

Key to abbreviations and symbol

EFFR = Effective Federal Funds Rate

LIBOR = London Interbank Offered Rate

TBA = To-be-announced

USD/$ = U.S. dollars

 

See notes to financial statements

 

8 Intermediate Bond Fund of America
 

Financial statements

 

Statement of assets and liabilities unaudited 
at February 28, 2019 (dollars in thousands)

 

Assets:                
Investment securities in unaffiliated issuers, at value (cost: $19,252,623)           $ 19,193,289  
Cash             34,513  
Receivables for:                
Sales of investments   $ 181,910          
Sales of fund’s shares     24,024          
Interest     92,185          
Variation margin on futures contracts     3,136          
Variation margin on swap contracts     5,603       306,858  
              19,534,660  
Liabilities:                
Payables for:                
Purchases of investments     778,107          
Repurchases of fund’s shares     11,263          
Dividends on fund’s shares     270          
Investment advisory services     2,889          
Services provided by related parties     3,269          
Trustees’ deferred compensation     348          
Variation margin on futures contracts     8,066          
Variation margin on swap contracts     1,151          
Other     518       805,881  
Net assets at February 28, 2019           $ 18,728,779  
                 
Net assets consist of:                
Capital paid in on shares of beneficial interest           $ 18,961,556  
Total accumulated loss             (232,777 )
Net assets at February 28, 2019           $ 18,728,779  

 

See notes to financial statements

 

Intermediate Bond Fund of America 9
 

(dollars and shares in thousands, except per-share amounts)

 

Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (1,411,880 total shares outstanding)

 

          Shares     Net asset value  
    Net assets     outstanding     per share  
Class A   $ 7,460,376       562,379     $ 13.27  
Class C     51,639       3,894       13.26  
Class T     10       1       13.26  
Class F-1     141,390       10,658       13.27  
Class F-2     1,444,521       108,891       13.27  
Class F-3     462,246       34,859       13.26  
Class 529-A     419,296       31,607       13.27  
Class 529-C     20,188       1,522       13.26  
Class 529-E     16,168       1,219       13.27  
Class 529-T     10       1       13.26  
Class 529-F-1     100,833       7,601       13.27  
Class R-1     6,495       490       13.26  
Class R-2     93,597       7,059       13.26  
Class R-2E     4,126       311       13.25  
Class R-3     130,128       9,810       13.27  
Class R-4     123,397       9,302       13.27  
Class R-5E     2,089       157       13.27  
Class R-5     31,671       2,387       13.27  
Class R-6     8,220,599       619,732       13.27  

 

See notes to financial statements

 

10 Intermediate Bond Fund of America
 
Statement of operations unaudited
for the six months ended February 28, 2019 (dollars in thousands)

 

Investment income:                
Income:                
Interest   $ 214,569          
Dividends     73     $ 214,642  
Fees and expenses*:                
Investment advisory services     18,278          
Distribution services     12,507          
Transfer agent services     6,115          
Administrative services     3,015          
Reports to shareholders     327          
Registration statement and prospectus     1,103          
Trustees’ compensation     79          
Auditing and legal     11          
Custodian     44          
Other     266       41,745  
Net investment income             172,897  
                 
Net realized gain and unrealized appreciation:                
Net realized (loss) gain on:                
Investments in unaffiliated issuers     (36,270 )        
Futures contracts     69,365          
Swap contracts     6,761       39,856  
Net unrealized appreciation (depreciation) on:                
Investments in unaffiliated issuers     161,832          
Futures contracts     (5,181 )        
Swap contracts     (24,073 )     132,578  
Net realized gain and unrealized appreciation             172,434  
Net increase in net assets resulting from operations           $ 345,331  

 

* Additional information related to class-specific fees and expenses is included in the notes to financial statements.

 

See notes to financial statements

 

Intermediate Bond Fund of America 11
 

Statements of changes in net assets

(dollars in thousands)

 

    Six months ended     Year ended  
    February 28,     August 31,  
    2019*     2018  
Operations:                
Net investment income   $ 172,897     $ 290,880  
Net realized gain (loss)     39,856       (244,937 )
Net unrealized appreciation (depreciation)     132,578       (200,455 )
Net increase (decrease) in net assets resulting from operations     345,331       (154,512 )
                 
Distributions paid or accrued to shareholders     (168,090 )     (268,864 )
                 
Net capital share transactions     918,804       2,969,459  
                 
Total increase in net assets     1,096,045       2,546,083  
                 
Net assets:                
Beginning of period     17,632,734       15,086,651  
End of period   $ 18,728,779     $ 17,632,734  

 

* Unaudited.

 

See notes to financial statements

 

12 Intermediate Bond Fund of America
 
Notes to financial statements unaudited

 

1. Organization

 

Intermediate Bond Fund of America (the “fund”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide current income consistent with the maturity and quality standards described in the prospectus, and preservation of capital.

 

The fund has 19 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T and 529-F-1) 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 2.50%   None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge)   None  
Class C*   None   1% for redemptions within one year of purchase   Class C converts to Class F-1 after 10 years  
Class 529-C*   None   1% for redemptions within one year of purchase   Class 529-C converts to Class 529-A after 10 years  
Class 529-E   None   None   None  
Classes T and 529-T*   Up to 2.50%   None   None  
Classes F-1, F-2, F-3 and 529-F-1   None   None   None  
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6   None   None   None  
* Class C, T, 529-C 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.

 

Intermediate Bond Fund of America 13
 

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 and unrealized gains and losses 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.

 

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 of each share class of the fund is generally determined as of approximately 4:00 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.

 

Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last

 

14 Intermediate Bond Fund of America
 

available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.

 

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; 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. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity.

 

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. 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. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.

 

Intermediate Bond Fund of America 15
 

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.

 

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

 

16 Intermediate Bond Fund of America
 

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 February 28, 2019 (dollars in thousands):

 

    Investment securities  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Bonds, notes & other debt instruments:                                
U.S. Treasury bonds & notes   $     $ 9,575,150     $     $ 9,575,150  
Corporate bonds & notes           4,186,075       1,805       4,187,880  
Mortgage-backed obligations           1,740,986             1,740,986  
Asset-backed obligations           1,039,290             1,039,290  
Bonds & notes of governments & government agencies outside the U.S.           900,215             900,215  
Municipals           4,130             4,130  
Preferred securities           2,670             2,670  
Short-term securities           1,742,968             1,742,968  
Total   $     $ 19,191,484     $ 1,805     $ 19,193,289  

 

    Other investments*  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Unrealized appreciation on futures contracts   $ 10,383     $     $     $ 10,383  
Unrealized appreciation on interest rate swaps           47,066             47,066  
Liabilities:                                
Unrealized depreciation on futures contracts     (12,301 )                 (12,301 )
Unrealized depreciation on interest rate swaps           (16,964 )           (16,964 )
Unrealized depreciation on credit default swaps           (1,655 )           (1,655 )
Total   $ (1,918 )   $ 28,447     $     $ 26,529  

 

* Futures contracts, interest rate swaps and credit default swaps are not included in the investment portfolio.

 

Intermediate Bond Fund of America 17
 

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 or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

 

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 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. 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 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 will weaken 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. 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 mitigate various credit and default risks.

 

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to

 

18 Intermediate Bond Fund of America
 

changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund’s cash available for reinvestment in higher yielding securities.

 

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. 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.

 

Liquidity risk — Certain fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold or converted to cash without significantly impacting the value of the holdings. Liquidity risk may result from 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.

 

Investing in future delivery contracts — The fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve the fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While the fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of the fund.

 

Investing in inflation linked bonds — The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

 

Intermediate Bond Fund of America 19
 

Investing in inflation linked bonds may also reduce the fund’s distributable income during periods of extreme deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation linked securities may decline and result in losses to the fund.

 

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 the imposition of price controls or punitive taxes, that 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 U.S. 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 United States. 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 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 cash 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 for the fund to buy or sell at an opportune time or price and may be difficult 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.

 

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 employed by the investment adviser in this process 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.

 

20 Intermediate Bond Fund of America
 

5. Certain investment techniques

 

Index-linked bonds — The fund has invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.

 

Mortgage dollar rolls — The fund has entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions. Portfolio turnover rates excluding and including mortgage dollar rolls are presented at the end of the fund’s financial highlights table.

 

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. Securities deposited as initial margin, if any, are disclosed in the investment portfolio and cash deposited as initial margin, if any, is reflected as restricted cash pledged for futures contracts in the fund’s statement of assets and liabilities.

 

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 $8,630,758,000.

 

Interest rate swaps — The fund has entered into interest rate swap contracts, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for

 

Intermediate Bond Fund of America 21
 

a payment that floats relative to a benchmark or vice versa. The fund’s investment adviser uses interest rate swaps to seek to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the fund’s investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.

 

Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.

 

On a daily basis, the fund’s investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in the fund’s statement of assets and liabilities. The fund also pays or receives a variation margin based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in the fund’s statement of operations. The average month-end notional amount of interest rate swaps while held was $4,126,008,000.

 

Credit default swap indices — The fund has entered into centrally cleared credit default swap agreements on credit indices (“CDSI”) that involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified return upon the occurrence of a credit event, such as a default or restructuring, with respect to any of the underlying issuers (reference obligations) in the referenced index. The fund’s investment adviser uses credit default swaps to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks.

 

CDSI are portfolios of credit instruments or exposures designed to be representative of some part of the credit market, such as the high-yield or investment-grade credit market. CDSI are generally traded using standardized terms, including a fixed spread and standard maturity dates, and reference all the names in the index. If there is a credit event, it is settled based on that name’s weight in the index. The composition of the underlying issuers or obligations within a particular index may change periodically, usually every six months. A specified credit event may affect all or individual underlying reference obligations included in the index, and will be settled based upon the relative weighting of the affected obligation(s) within the index. The value of each CDSI can be used as a measure of the current payment/performance risk of the CDSI and represents the likelihood of an expected liability or profit should the notional amount of the CDSI be closed or sold as of the period end. An increasing value, as compared to the notional amount of the CDSI, represents a deterioration of the referenced indices’ credit

 

22 Intermediate Bond Fund of America
 

soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. When the fund provides sell protection, its maximum exposure is the notional amount of the credit default swap agreement.

 

Upon entering into a centrally cleared CDSI contract, the fund is required to deposit with a derivatives clearing member (“DCM”) in a segregated account in the name of the DCM an amount of cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular credit default swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract. Securities deposited as initial margin are designated on the investment portfolio.

 

On a daily basis, interest accruals related to the exchange of future payments are recorded as a receivable and payable in the fund’s statement of assets and liabilities. The fund also pays or receives a variation margin based on the increase or decrease in the value of the CDSI, and records variation margin in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from credit default swaps are recorded in the fund’s statement of operations. The average month-end notional amount of credit default swaps while held was $716,667,000.

 

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, interest rate swaps and credit default swaps as of, or for the six months ended, February 28, 2019 (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*   $ 10,383     Unrealized depreciation*   $ 12,301  
Swaps   Interest   Unrealized appreciation*     47,066     Unrealized depreciation*     16,964  
Swaps   Credit   Unrealized appreciation*         Unrealized depreciation*     1,655  
            $ 57,449         $ 30,920  

 

Intermediate Bond Fund of America 23
 
        Net realized gain (loss)     Net unrealized depreciation  
Contracts   Risk type   Location on statement of
operations
  Value     Location on statement of
operations
  Value  
Futures   Interest   Net realized gain on futures contracts   $ 69,365     Net unrealized depreciation on futures contracts   $ (5,181 )
Swaps   Interest   Net realized gain on swap contracts     8,947     Net unrealized depreciation on swap contracts     (22,435 )
Swaps   Credit   Net realized loss on swap contracts     (2,186 )   Net unrealized depreciation on swap contracts     (1,638 )
            $ 76,126         $ (29,254 )

 

* Includes cumulative appreciation/depreciation on futures contracts, interest rate swaps and credit default swaps as reported in the applicable tables following the fund’s investment portfolio. Only current day’s variation margin is reported within the statement of assets and liabilities.

 

Collateral — The fund participates in a collateral program that calls for the fund to either receive or pledge highly liquid assets, such as cash or U.S. government securities, as collateral due to its use of futures contracts, interest rate swaps, credit default swaps and future delivery contracts. For futures contracts, interest rate swaps and credit default swaps, the program calls for the fund to pledge collateral for initial and variation margin by contract. For future delivery contracts, the program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled contracts by certain counterparties. 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 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 February 28, 2019, 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.

 

24 Intermediate Bond Fund of America
 

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.

 

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; net capital losses 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 August 31, 2018, the components of distributable earnings on a tax basis were as follows (dollars in thousands):

 

Undistributed ordinary income   $ 4,770  
Capital loss carryforward*     (237,991 )

 

* The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years. The fund will not make distributions from capital gains while a capital loss carryforward remains.

 

As of February 28, 2019, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

 

Gross unrealized appreciation on investments   $ 128,888  
Gross unrealized depreciation on investments     (163,956 )
Net unrealized depreciation on investments     (35,068 )
Cost of investments     19,264,806  

 

Intermediate Bond Fund of America 25
 

Tax-basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands):

 

    Six months ended     Year ended  
Share class   February 28, 2019     August 31, 2018  
Class A   $ 61,811     $ 108,141  
Class C     256       430  
Class T     *     *
Class F-1     1,195       2,355  
Class F-2     12,209       16,006  
Class F-3     4,638       7,155  
Class 529-A     3,395       5,795  
Class 529-C     98       193  
Class 529-E     118       205  
Class 529-T     *     *
Class 529-F-1     925       1,530  
Class R-1     31       48  
Class R-2     451       704  
Class R-2E     22       40  
Class R-3     906       1,579  
Class R-4     1,033       1,858  
Class R-5E     17       10  
Class R-5     319       619  
Class R-6     80,666       122,196  
Total   $ 168,090     $ 268,864  

 

* Amount less than one thousand.

 

26 Intermediate Bond Fund of America
 

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 a series of decreasing annual rates beginning with 0.300% on the first $60 million of daily net assets and decreasing to 0.130% on such assets in excess of $15 billion. The agreement also provides for monthly fees, accrued daily, based on a series of decreasing rates beginning with 3.00% on the first $3,333,333 of the fund’s monthly gross income and decreasing to 2.00% on such income in excess of $8,333,333. For the six months ended February 28, 2019, the investment advisory services fee was $18,278,000, which was equivalent to an annualized rate of 0.204% of average daily net assets.

 

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, 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

 

Intermediate Bond Fund of America 27
 

billed within the prior 15 months but only to the extent that the overall annual expense limits are not exceeded. As of February 28, 2019, there were no unreimbursed expenses subject to reimbursement for Class A or 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.

 

Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, T, F, 529 and R shares. Administrative services are provided by CRMC 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 between the fund and the investment adviser provides the fund the ability to charge an administrative services fee of 0.05% of average daily net assets for all share classes. Currently Class A shares pay an annual fee of 0.01% of average daily net assets (which could be increased as noted above) and Class C, T, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.

 

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 0.10% 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.

 

28 Intermediate Bond Fund of America
 

For the six months ended February 28, 2019, class-specific expenses under the agreements were as follows (dollars in thousands):

 

    Distribution     Transfer agent     Administrative     529 plan  
Share class   services     services     services     services  
Class A     $10,560       $4,549       $364       Not applicable  
Class C     266       33       13       Not applicable  
Class T           *     *     Not applicable  
Class F-1     179       122       36       Not applicable  
Class F-2     Not applicable       728       312       Not applicable  
Class F-3     Not applicable       21       112       Not applicable  
Class 529-A     500       237       103       $136  
Class 529-C     97       12       5       7  
Class 529-E     40       3       4       5  
Class 529-T           *     *     *
Class 529-F-1           56       24       32  
Class R-1     33       4       2       Not applicable  
Class R-2     350       166       23       Not applicable  
Class R-2E     11       4       1       Not applicable  
Class R-3     321       103       32       Not applicable  
Class R-4     150       64       30       Not applicable  
Class R-5E     Not applicable       1       1       Not applicable  
Class R-5     Not applicable       9       8       Not applicable  
Class R-6     Not applicable       3       1,945       Not applicable  
Total class-specific expenses     $12,507       $6,115       $3,015       $180  

 

* Amount less than one thousand.

 

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 of $79,000 in the fund’s statement of operations reflects $87,000 in current fees (either paid in cash or deferred) and a net decrease of $8,000 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.

 

Security transactions with related funds — The fund may purchase from, or sell 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. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.

 

Intermediate Bond Fund of America 29
 

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 February 28, 2019.

 

8. Capital share transactions

 

Capital share transactions in the fund were as follows (dollars and shares in thousands):

 

                Reinvestments of                 Net increase  
    Sales*     distributions     Repurchases*     (decrease)  
Share class   Amount     Shares     Amount     Shares     Amount     Shares     Amount     Shares  
                                                 
Six months ended February 28, 2019                                
                                                 
Class A   $ 843,385       64,213     $ 61,013       4,634     $ (831,665 )     (63,348 )   $ 72,733       5,499  
Class C     8,814       671       253       19       (14,057 )     (1,069 )     (4,990 )     (379 )
Class T                                                
Class F-1     15,612       1,187       1,166       88       (26,451 )     (2,011 )     (9,673 )     (736 )
Class F-2     556,946       42,420       11,960       908       (206,851 )     (15,729 )     362,055       27,599  
Class F-3     80,876       6,156       4,478       340       (80,184 )     (6,108 )     5,170       388  
Class 529-A     49,052       3,730       3,380       257       (54,166 )     (4,122 )     (1,734 )     (135 )
Class 529-C     4,539       345       98       7       (6,402 )     (487 )     (1,765 )     (135 )
Class 529-E     2,097       159       117       9       (2,410 )     (183 )     (196 )     (15 )
Class 529-T                                        
Class 529-F-1     14,274       1,087       921       70       (10,589 )     (805 )     4,606       352  
Class R-1     940       72       31       3       (1,564 )     (120 )     (593 )     (45 )
Class R-2     12,963       986       447       34       (17,766 )     (1,352 )     (4,356 )     (332 )
Class R-2E     1,345       102       21       2       (1,064 )     (82 )     302       22  
Class R-3     17,586       1,338       898       68       (20,264 )     (1,542 )     (1,780 )     (136 )
Class R-4     15,926       1,211       1,027       78       (18,538 )     (1,411 )     (1,585 )     (122 )
Class R-5E     895       68       17       1       (173 )     (13 )     739       56  
Class R-5     4,549       345       316       24       (6,238 )     (475 )     (1,373 )     (106 )
Class R-6     732,511       55,675       80,677       6,127       (311,944 )     (23,749 )     501,244       38,053  
Total net increase (decrease)   $ 2,362,310       179,765     $ 166,820       12,669     $ (1,610,326 )     (122,606 )   $ 918,804       69,828  

 

30 Intermediate Bond Fund of America
 
                Reinvestments of                 Net increase  
    Sales*     distributions     Repurchases*     (decrease)  
Share class   Amount     Shares     Amount     Shares     Amount     Shares     Amount     Shares  
                                                 
Year ended August 31, 2018                                          
                                                 
Class A   $ 1,627,339       122,763     $ 106,370       8,058     $ (1,612,666 )     (121,788 )   $ 121,043       9,033  
Class C     16,587       1,253       424       33       (33,106 )     (2,502 )     (16,095 )     (1,216 )
Class T                                                
Class F-1     42,239       3,195       2,292       174       (77,917 )     (5,897 )     (33,386 )     (2,528 )
Class F-2     629,674       47,591       15,726       1,192       (309,604 )     (23,437 )     335,796       25,346  
Class F-3     234,666       17,730       6,878       522       (106,976 )     (8,087 )     134,568       10,165  
Class 529-A     141,704       10,680       5,760       436       (101,152 )     (7,651 )     46,312       3,465  
Class 529-C     10,363       780       191       14       (49,481 )     (3,720 )     (38,927 )     (2,926 )
Class 529-E     3,898       294       203       16       (4,654 )     (352 )     (553 )     (42 )
Class 529-T                                        
Class 529-F-1     28,499       2,155       1,522       115       (22,041 )     (1,669 )     7,980       601  
Class R-1     1,461       110       48       4       (1,524 )     (115 )     (15 )     (1 )
Class R-2     26,949       2,037       697       53       (33,415 )     (2,523 )     (5,769 )     (433 )
Class R-2E     1,442       108       40       3       (1,279 )     (97 )     203       14  
Class R-3     37,722       2,847       1,561       118       (50,319 )     (3,800 )     (11,036 )     (835 )
Class R-4     41,928       3,164       1,843       139       (47,967 )     (3,623 )     (4,196 )     (320 )
Class R-5E     1,429       108       10       1       (115 )     (9 )     1,324       100  
Class R-5     12,133       916       613       46       (16,520 )     (1,250 )     (3,774 )     (288 )
Class R-6     2,673,379       201,529       122,190       9,260       (359,585 )     (27,235 )     2,435,984       183,554  
Total net increase (decrease)   $ 5,531,412       417,260     $ 266,368       20,184     $ (2,828,321 )     (213,755 )   $ 2,969,459       223,689  

 

* Includes exchanges between share classes of the fund.
Amount less than one thousand.

 

9. Investment transactions

 

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $11,735,293,000 and $12,340,336,000, respectively, during the six months ended February 28, 2019.

 

Intermediate Bond Fund of America 31
 

Financial highlights

 

              Income (loss) from investment operations1  
Period ended       Net asset
value,
beginning
of period
    Net
investment
income
    Net gains
(losses) on
securities (both
realized and
unrealized)
    Total from
investment
operations
 
Class A:                                    
2/28/20194,5       $ 13.14     $ .11     $ .13     $ .24  
8/31/2018         13.49       .21       (.37 )     (.16 )
8/31/2017         13.59       .16       (.04 )     .12  
8/31/2016         13.53       .15       .11       .26  
8/31/2015         13.56       .15       (.01 )     .14  
8/31/2014         13.40       .17       .16       .33  
Class C:                                    
2/28/20194,5         13.14       .07       .11       .18  
8/31/2018         13.49       .11       (.37 )     (.26 )
8/31/2017         13.59       .05       (.03 )     .02  
8/31/2016         13.53       .05       .11       .16  
8/31/2015         13.56       .04       (.01 )     .03  
8/31/2014         13.40       .07       .16       .23  
Class T:                                    
2/28/20194,5         13.14       .13       .12       .25  
8/31/2018         13.49       .24       (.36 )     (.12 )
8/31/20174,10         13.38       .08       .10       .18  
Class F-1:                                    
2/28/20194,5         13.14       .11       .13       .24  
8/31/2018         13.49       .20       (.36 )     (.16 )
8/31/2017         13.59       .15       (.03 )     .12  
8/31/2016         13.53       .14       .11       .25  
8/31/2015         13.56       .14       (.01 )     .13  
8/31/2014         13.40       .17       .16       .33  
Class F-2:                                    
2/28/20194,5         13.14       .13       .13       .26  
8/31/2018         13.49       .25       (.38 )     (.13 )
8/31/2017         13.59       .19       (.03 )     .16  
8/31/2016         13.53       .18       .11       .29  
8/31/2015         13.56       .18       (.01 )     .17  
8/31/2014         13.40       .21       .16       .37  
Class F-3:                                    
2/28/20194,5         13.13       .14       .12       .26  
8/31/2018         13.49       .26       (.38 )     (.12 )
8/31/20174,11         13.36       .13       .12       .25  

 

32 Intermediate Bond Fund of America
 
Dividends and distributions                                      
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
reimbursements
    Ratio of
expenses to
average net
assets after
reimbursements3
    Ratio of
net income
to average
net assets3
 
                                                                     
$ (.11 )   $    —     $ (.11 )   $ 13.27       1.84 %6   $ 7,460       .65 %7      .65 %7      1.75 %7 
  (.19 )           (.19 )     13.14       (1.15 )     7,317       .60       .60       1.61  
  (.14 )     (.08 )     (.22 )     13.49       .93       7,391       .61       .61       1.17  
  (.17 )     (.03 )     (.20 )     13.59       1.95       7,327       .61       .61       1.09  
  (.17 )           (.17 )     13.53       1.02       6,650       .61       .61       1.12  
  (.17 )           (.17 )     13.56       2.50       6,296       .61       .61       1.29  
                                                                     
  (.06 )           (.06 )     13.26       1.39 6     52       1.39 7     1.39 7     1.01 7
  (.09 )           (.09 )     13.14       (1.92 )     56       1.39       1.39       .81  
  (.04 )     (.08 )     (.12 )     13.49       .17       74       1.39       1.39       .38  
  (.07 )     (.03 )     (.10 )     13.59       1.17       104       1.39       1.39       .30  
  (.06 )           (.06 )     13.53       .24       116       1.39       1.39       .32  
  (.07 )           (.07 )     13.56       1.70       146       1.40       1.40       .50  
                                                                     
  (.13 )           (.13 )     13.26       1.90 6,8     9     .38 7,8     .38 7,8     2.02 7,8
  (.23 )           (.23 )     13.14       (.91 )8     9     .37 8     .37 8     1.84 8
  (.07 )           (.07 )     13.49       1.36 6,8     9     .16 6,8     .16 6,8     .60 6,8
                                                                     
  (.11 )           (.11 )     13.27       1.82 6     141       .69 7     .69 7     1.71 7
  (.19 )           (.19 )     13.14       (1.22 )     150       .67       .67       1.53  
  (.14 )     (.08 )     (.22 )     13.49       .87       188       .67       .67       1.10  
  (.16 )     (.03 )     (.19 )     13.59       1.90       258       .66       .66       1.05  
  (.16 )           (.16 )     13.53       .97       225       .66       .66       1.07  
  (.17 )           (.17 )     13.56       2.46       317       .65       .65       1.25  
                                                                     
  (.13 )           (.13 )     13.27       1.97 6     1,445       .39 7     .39 7     2.01 7
  (.22 )           (.22 )     13.14       (.92 )     1,068       .37       .37       1.86  
  (.18 )     (.08 )     (.26 )     13.49       1.17       755       .38       .38       1.41  
  (.20 )     (.03 )     (.23 )     13.59       2.19       579       .37       .37       1.37  
  (.20 )           (.20 )     13.53       1.25       294       .39       .39       1.35  
  (.21 )           (.21 )     13.56       2.74       542       .37       .37       1.51  
                                                                     
  (.13 )           (.13 )     13.26       1.95 6     462       .28 7     .28 7     2.12 7
  (.24 )           (.24 )     13.13       (.82 )     453       .27       .27       1.95  
  (.12 )           (.12 )     13.49       1.85 6     328       .27 7     .27 7     1.64 7

 

See end of table for footnotes.

 

Intermediate Bond Fund of America 33
 

Financial highlights (continued)

 

              Income (loss) from investment operations1  
Period ended       Net asset
value,
beginning
of period
    Net
investment
income
    Net gains
(losses) on
securities (both
realized and
unrealized)
    Total from
investment
operations
 
Class 529-A:                                    
2/28/20194,5       $ 13.14     $ .11     $ .13     $ .24  
8/31/2018         13.49       .20       (.37 )     (.17 )
8/31/2017         13.59       .15       (.03 )     .12  
8/31/2016         13.53       .14       .11       .25  
8/31/2015         13.56       .14       (.01 )     .13  
8/31/2014         13.40       .16       .16       .32  
Class 529-C:                                    
2/28/20194,5         13.13       .07       .12       .19  
8/31/2018         13.48       .10       (.36 )     (.26 )
8/31/2017         13.59       .05       (.04 )     .01  
8/31/2016         13.53       .04       .11       .15  
8/31/2015         13.56       .03       (.01 )     .02  
8/31/2014         13.40       .06       .16       .22  
Class 529-E:                                    
2/28/20194,5         13.14       .10       .13       .23  
8/31/2018         13.49       .18       (.37 )     (.19 )
8/31/2017         13.59       .12       (.03 )     .09  
8/31/2016         13.53       .11       .11       .22  
8/31/2015         13.56       .11       (.01 )     .10  
8/31/2014         13.40       .13       .16       .29  
Class 529-T:                                    
2/28/20194,5         13.14       .13       .11       .24  
8/31/2018         13.49       .23       (.36 )     (.13 )
8/31/20174,10         13.38       .08       .10       .18  
Class 529-F-1:                                    
2/28/20194,5         13.14       .13       .12       .25  
8/31/2018         13.49       .23       (.36 )     (.13 )
8/31/2017         13.59       .18       (.03 )     .15  
8/31/2016         13.53       .17       .11       .28  
8/31/2015         13.56       .17       (.01 )     .16  
8/31/2014         13.40       .19       .16       .35  
Class R-1:                                    
2/28/20194,5         13.14       .06       .12       .18  
8/31/2018         13.49       .11       (.37 )     (.26 )
8/31/2017         13.59       .05       (.03 )     .02  
8/31/2016         13.53       .05       .11       .16  
8/31/2015         13.56       .04       (.01 )     .03  
8/31/2014         13.40       .07       .16       .23  

 

34 Intermediate Bond Fund of America
 
Dividends and distributions                                      
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
reimbursements
    Ratio of
expenses to
average net
assets after
reimbursements3
    Ratio of
net income
to average
net assets3
 
                                                                     
$ (.11 )   $     $ (.11 )   $ 13.27       1.82 %6   $ 419       .70 %7      .70 %7      1.70 %7 
  (.18 )           (.18 )     13.14       (1.23 )     417       .68       .68       1.54  
  (.14 )     (.08 )     (.22 )     13.49       .87       381       .67       .67       1.11  
  (.16 )     (.03 )     (.19 )     13.59       1.86       380       .70       .70       1.00  
  (.16 )           (.16 )     13.53       .93       362       .70       .70       1.03  
  (.16 )           (.16 )     13.56       2.41       367       .70       .70       1.19  
                                                                     
  (.06 )           (.06 )     13.26       1.39 6     20       1.40 7     1.40 7     1.00 7
  (.09 )           (.09 )     13.13       (1.87 )     22       1.43       1.43       .73  
  (.04 )     (.08 )     (.12 )     13.48       .06       62       1.44       1.44       .35  
  (.06 )     (.03 )     (.09 )     13.59       1.11       67       1.46       1.46       .24  
  (.05 )           (.05 )     13.53       .17       68       1.46       1.46       .26  
  (.06 )           (.06 )     13.56       1.62       76       1.47       1.47       .42  
                                                                     
  (.10 )           (.10 )     13.27       1.73 6     16       .87 7     .87 7     1.53 7
  (.16 )           (.16 )     13.14       (1.41 )     16       .87       .87       1.34  
  (.11 )     (.08 )     (.19 )     13.49       .67       17       .88       .88       .90  
  (.13 )     (.03 )     (.16 )     13.59       1.66       19       .90       .90       .81  
  (.13 )           (.13 )     13.53       .72       18       .91       .91       .81  
  (.13 )           (.13 )     13.56       2.18       18       .92       .92       .97  
                                                                     
  (.12 )           (.12 )     13.26       1.86 6,8     9     .45 7,8     .45 7,8     1.95 7,8
  (.22 )           (.22 )     13.14       (.98 )8     9     .45 8     .45 8     1.77 8
  (.07 )           (.07 )     13.49       1.34 6,8     9     .17 6,8     .17 6,8     .59 6,8
                                                                     
  (.12 )           (.12 )     13.27       1.94 6     101       .45 7     .45 7     1.95 7
  (.22 )           (.22 )     13.14       (.99 )     95       .44       .44       1.77  
  (.17 )     (.08 )     (.25 )     13.49       1.10       90       .45       .45       1.34  
  (.19 )     (.03 )     (.22 )     13.59       2.09       84       .47       .47       1.23  
  (.19 )           (.19 )     13.53       1.17       79       .47       .47       1.26  
  (.19 )           (.19 )     13.56       2.64       74       .48       .48       1.42  
                                                                     
  (.06 )           (.06 )     13.26       1.39 6     7       1.40 7     1.40 7     1.00 7
  (.09 )           (.09 )     13.14       (1.92 )     7       1.39       1.39       .82  
  (.04 )     (.08 )     (.12 )     13.49       .18       7       1.39       1.39       .38  
  (.07 )     (.03 )     (.10 )     13.59       1.19       10       1.37       1.37       .33  
  (.06 )           (.06 )     13.53       .25       11       1.38       1.38       .35  
  (.07 )           (.07 )     13.56       1.70       11       1.39       1.39       .50  

 

See end of table for footnotes.

 

Intermediate Bond Fund of America 35
 

Financial highlights (continued)

 

          Income (loss) from investment operations1
Period ended   Net asset
value,
beginning
of period
    Net
investment
income
    Net gains
(losses) on
securities (both
realized and
unrealized)
    Total from
investment
operations
 
Class R-2:                                
2/28/20194,5   $ 13.13     $ .07     $ .12     $ .19  
8/31/2018     13.48       .11       (.37 )     (.26 )
8/31/2017     13.59       .05       (.04 )     .01  
8/31/2016     13.53       .05       .11       .16  
8/31/2015     13.56       .04       (.01 )     .03  
8/31/2014     13.40       .07       .16       .23  
Class R-2E:                                
2/28/20194,5     13.12       .08       .13       .21  
8/31/2018     13.48       .15       (.38 )     (.23 )
8/31/2017     13.58       .10       (.04 )     .06  
8/31/2016     13.52       .11       .11       .22  
8/31/2015     13.56       .16       (.01 )     .15  
8/31/20144,12     13.56                    
Class R-3:                                
2/28/20194,5     13.14       .10       .12       .22  
8/31/2018     13.49       .17       (.37 )     (.20 )
8/31/2017     13.59       .11       (.03 )     .08  
8/31/2016     13.53       .11       .11       .22  
8/31/2015     13.56       .11       (.01 )     .10  
8/31/2014     13.40       .13       .16       .29  
Class R-4:                                
2/28/20194,5     13.14       .12       .12       .24  
8/31/2018     13.49       .21       (.37 )     (.16 )
8/31/2017     13.59       .16       (.04 )     .12  
8/31/2016     13.53       .15       .11       .26  
8/31/2015     13.56       .15       (.01 )     .14  
8/31/2014     13.40       .17       .16       .33  
Class R-5E:                                
2/28/20194,5     13.14       .13       .13       .26  
8/31/2018     13.49       .26       (.39 )     (.13 )
8/31/2017     13.59       .19       (.03 )     .16  
8/31/20164,13     13.49       .13       .15       .28  
Class R-5:                                
2/28/20194,5     13.14       .13       .13       .26  
8/31/2018     13.49       .25       (.37 )     (.12 )
8/31/2017     13.59       .20       (.04 )     .16  
8/31/2016     13.53       .19       .11       .30  
8/31/2015     13.56       .19       (.01 )     .18  
8/31/2014     13.40       .21       .16       .37  
                                 
36 Intermediate Bond Fund of America
 
Dividends and distributions                                      
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
reimbursements
    Ratio of
expenses to
average net
assets after
reimbursements3
    Ratio of
net income
to average
net assets3
 
                                                                     
$ (.06 )   $     $ (.06 )   $ 13.26       1.40 %6   $ 94       1.38 %7     1.38 %7     1.02 %7
  (.09 )           (.09 )     13.13       (1.83 )     97       1.37       1.37       .84  
  (.04 )     (.08 )     (.12 )     13.48       .11       105       1.40       1.40       .38  
  (.07 )     (.03 )     (.10 )     13.59       1.18       118       1.37       1.37       .32  
  (.06 )           (.06 )     13.53       .23       118       1.40       1.40       .32  
  (.07 )           (.07 )     13.56       1.69       128       1.40       1.40       .49  
                                                                     
  (.08 )           (.08 )     13.25       1.53 6      4       1.11 7      1.11 7      1.29 7 
  (.13 )           (.13 )     13.12       (1.65 )     4       1.10       1.10       1.11  
  (.08 )     (.08 )     (.16 )     13.48       .46       4       1.09       1.09       .72  
  (.13 )     (.03 )     (.16 )     13.58       1.65       2       1.05       1.05       .74  
  (.19 )           (.19 )     13.52       1.09 8      9      .55 8      .55 8      1.17 8 
                    13.56             9                  
                                                                     
  (.09 )           (.09 )     13.27       1.70 6      130       .93 7      .93 7      1.47 7 
  (.15 )           (.15 )     13.14       (1.47 )     131       .92       .92       1.28  
  (.10 )     (.08 )     (.18 )     13.49       .62       145       .93       .93       .85  
  (.13 )     (.03 )     (.16 )     13.59       1.63       150       .92       .92       .77  
  (.13 )           (.13 )     13.53       .70       149       .93       .93       .79  
  (.13 )           (.13 )     13.56       2.16       153       .95       .95       .94  
                                                                     
  (.11 )           (.11 )     13.27       1.85 6      123       .63 7      .63 7      1.77 7 
  (.19 )           (.19 )     13.14       (1.17 )     124       .62       .62       1.59  
  (.14 )     (.08 )     (.22 )     13.49       .93       131       .62       .62       1.17  
  (.17 )     (.03 )     (.20 )     13.59       1.94       118       .62       .62       1.08  
  (.17 )           (.17 )     13.53       1.02       107       .61       .61       1.11  
  (.17 )           (.17 )     13.56       2.48       112       .63       .63       1.27  
                                                                     
  (.13 )           (.13 )     13.27       1.95 6      2       .43 7      .43 7      1.97 7 
  (.22 )           (.22 )     13.14       (.93 )     1       .40       .40       1.98  
  (.18 )     (.08 )     (.26 )     13.49       1.20       9      .51       .35       1.43  
  (.15 )     (.03 )     (.18 )     13.59       2.10 6     9     .48 7     .48 7      1.26 7 
                                                                     
  (.13 )           (.13 )     13.27       2.00 6      32       .33 7      .33 7      2.07 7 
  (.23 )           (.23 )     13.14       (.87 )     33       .32       .32       1.88  
  (.18 )     (.08 )     (.26 )     13.49       1.23       38       .32       .32       1.47  
  (.21 )     (.03 )     (.24 )     13.59       2.24       34       .32       .32       1.38  
  (.21 )           (.21 )     13.53       1.32       30       .32       .32       1.41  
  (.21 )           (.21 )     13.56       2.79       24       .33       .33       1.57  

 

See end of table for footnotes.

 

Intermediate Bond Fund of America 37
 

Financial highlights (continued)

 

          Income (loss) from investment operations1  
Period ended   Net asset
value,
beginning
of period  
    Net
investment
income  
    Net gains
(losses) on
securities (both
realized and
unrealized)
    Total from
investment
operations  
 
Class R-6:                                
2/28/20194,5   $ 13.14     $ .14     $ .13     $ .27  
8/31/2018     13.49       .26       (.37 )     (.11 )
8/31/2017     13.59       .21       (.04 )     .17  
8/31/2016     13.53       .20       .11       .31  
8/31/2015     13.56       .19       (.01 )     .18  
8/31/2014     13.40       .22       .16       .38  
                                     
Portfolio turnover rate for all share classes14    Six months ended   Year ended August 31
  February 28, 20194,5,6   2018   2017   2016   2015   2014
Excluding mortgage dollar roll transactions     46 %                      73 %     78 %     92 %     96 %   Not available
Including mortgage dollar roll transactions     100 %     173 %     177 %     173 %     192 %     165 %

 

See notes to financial statements

 

38 Intermediate Bond Fund of America
 
Dividends and distributions                                      
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
reimbursements
    Ratio of
expenses to
average net
assets after
reimbursements3
    Ratio of
net income
to average
net assets3
 
                                                                     
$ (.14 )   $     $ (.14 )   $ 13.27       2.03 %6   $ 8,221       .27 %7     .27 %7     2.13 %7
  (.24 )           (.24 )     13.14       (.82 )     7,642       .27       .27       1.96  
  (.19 )     (.08 )     (.27 )     13.49       1.28       5,371       .27       .27       1.54  
  (.22 )     (.03 )     (.25 )     13.59       2.30       3,457       .27       .27       1.45  
  (.21 )           (.21 )     13.53       1.36       2,704       .27       .27       1.47  
  (.22 )           (.22 )     13.56       2.84       1,671       .27       .27       1.61  
   
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. During one of the periods shown, CRMC paid a portion of the fund’s transfer agent fees for certain retirement plan share classes.
4 Based on operations for a period that is less than a full year.
5 Unaudited.
6 Not annualized.
7 Annualized.
8 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.
9 Amount less than $1 million.
10 Class T and 529-T shares began investment operations on April 7, 2017.
11 Class F-3 shares began investment operations on January 27, 2017.
12 Class R-2E shares began investment operations on August 29, 2014.
13 Class R-5E shares began investment operations on November 20, 2015.
14 Refer to Note 5 for more information on mortgage dollar rolls.
   
Intermediate Bond Fund of America 39
 
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 (September 1, 2018, through February 28, 2019).

 

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 and 529-F-1 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.

 

40 Intermediate Bond Fund of America
 
    Beginning   Ending            
    account value   account value   Expenses paid   Annualized
    9/1/2018   2/28/2019   during period*   expense ratio
Class A – actual return     $1,000.00       $1,018.42       $3.25       .65
Class A – assumed 5% return     1,000.00       1,021.57       3.26       .65  
Class C – actual return     1,000.00       1,013.91       6.94       1.39  
Class C – assumed 5% return     1,000.00       1,017.90       6.95       1.39  
Class T – actual return     1,000.00       1,018.99       1.90       .38  
Class T – assumed 5% return     1,000.00       1,022.91       1.91       .38  
Class F-1 – actual return     1,000.00       1,018.21       3.45       .69  
Class F-1 – assumed 5% return     1,000.00       1,021.37       3.46       .69  
Class F-2 – actual return     1,000.00       1,019.71       1.95       .39  
Class F-2 – assumed 5% return     1,000.00       1,022.86       1.96       .39  
Class F-3 – actual return     1,000.00       1,019.50       1.40       .28  
Class F-3 – assumed 5% return     1,000.00       1,023.41       1.40       .28  
Class 529-A – actual return     1,000.00       1,018.17       3.50       .70  
Class 529-A – assumed 5% return     1,000.00       1,021.32       3.51       .70  
Class 529-C – actual return     1,000.00       1,013.90       6.99       1.40  
Class 529-C – assumed 5% return     1,000.00       1,017.85       7.00       1.40  
Class 529-E – actual return     1,000.00       1,017.29       4.35       .87  
Class 529-E – assumed 5% return     1,000.00       1,020.48       4.36       .87  
Class 529-T – actual return     1,000.00       1,018.59       2.25       .45  
Class 529-T – assumed 5% return     1,000.00       1,022.56       2.26       .45  
Class 529-F-1 – actual return     1,000.00       1,019.41       2.25       .45  
Class 529-F-1 – assumed 5% return     1,000.00       1,022.56       2.26       .45  
Class R-1 – actual return     1,000.00       1,013.90       6.99       1.40  
Class R-1 – assumed 5% return     1,000.00       1,017.85       7.00       1.40  
Class R-2 – actual return     1,000.00       1,013.97       6.89       1.38  
Class R-2 – assumed 5% return     1,000.00       1,017.95       6.90       1.38  
Class R-2E – actual return     1,000.00       1,015.29       5.55       1.11  
Class R-2E – assumed 5% return     1,000.00       1,019.29       5.56       1.11  
Class R-3 – actual return     1,000.00       1,016.97       4.65       .93  
Class R-3 – assumed 5% return     1,000.00       1,020.18       4.66       .93  
Class R-4 – actual return     1,000.00       1,018.51       3.15       .63  
Class R-4 – assumed 5% return     1,000.00       1,021.67       3.16       .63  
Class R-5E – actual return     1,000.00       1,019.53       2.15       .43  
Class R-5E – assumed 5% return     1,000.00       1,022.66       2.16       .43  
Class R-5 – actual return     1,000.00       1,020.01       1.65       .33  
Class R-5 – assumed 5% return     1,000.00       1,023.16       1.66       .33  
Class R-6 – actual return     1,000.00       1,020.29       1.35       .27  
Class R-6 – assumed 5% return     1,000.00       1,023.46       1.35       .27  
   
* 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).
   
Intermediate Bond Fund of America 41
 

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42 Intermediate Bond Fund of America
 

Results of special meeting of shareholders

 

Held November 28, 2018

 

Shares outstanding (all classes) on August 31, 2018 (record date)

1,339,763,112

 

Total shares voting on November 28, 2018

1,239,773,367 (92.5% of shares outstanding)

 

The proposal: to elect board members

 

          Percent         Percent
          of shares   Votes     of shares
    Votes for     voting for   withheld     withheld
William H. Baribault     1,205,004,662       97.2 %     34,768,705       2.8 %
James G. Ellis     1,205,572,082       97.2       34,201,285       2.8  
Nariman Farvardin     1,206,592,672       97.3       33,180,695       2.7  
Michael C. Gitlin     1,207,908,072       97.4       31,865,295       2.6  
Mary Davis Holt     1,209,228,802       97.5       30,544,565       2.5  
R. Clark Hooper     1,204,115,403       97.1       35,657,964       2.9  
Merit E. Janow     1,207,688,990       97.4       32,084,377       2.6  
Laurel B. Mitchell     1,210,056,867       97.6       29,716,500       2.4  
Margaret Spellings     1,205,024,926       97.2       34,748,441       2.8  
Alexandra Trower     1,210,427,462       97.6       29,345,905       2.4  
Karl J. Zeile     1,206,960,490       97.4       32,812,877       2.6  
   
Intermediate Bond Fund of America 43
 

Offices of the fund and of the investment adviser

Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

 

6455 Irvine Center Drive
Irvine, CA 92618-4518

 

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

JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

 

Counsel

Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726

 

Independent registered public accounting firm

Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188

 

Principal underwriter

American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406

 

44 Intermediate Bond Fund of America
 

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 American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.

 

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds 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 the American Funds website.

 

A complete February 28, 2019, portfolio of Intermediate Bond Fund of America’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

 

Intermediate Bond Fund of America files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. Additionally, the list of portfolio holdings is available by calling AFS.

 

This report is for the information of shareholders of Intermediate Bond Fund of America, 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 June 30, 2019, 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.

 

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 27 years of investment experience, including 20 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 Portfolio manager experience as of December 31, 2018.
  2 Based on Class F-2 share results for rolling periods through December 31, 2018. 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, 2018. Fourteen of our 15 American Funds fixed income 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 70% of the time, based on the 20-year period ended December 31, 2018, 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 Class A share results 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 americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.
     
    All Capital Group trademarks referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks 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

 

 

 

 

Intermediate Bond Fund of America®

Investment portfolio

February 28, 2019

 

 

unaudited

 

 

Bonds, notes & other debt instruments 93.16%
U.S. Treasury bonds & notes 51.12%
U.S. Treasury 46.14%
Principal amount
(000)
Value
(000)
U.S. Treasury 1.375% 2019 $5,000 $4,967
U.S. Treasury 1.50% 2019 344,100 341,471
U.S. Treasury 1.50% 2019 5,000 4,966
U.S. Treasury 1.625% 2019 86,850 86,200
U.S. Treasury 1.625% 2019 16,000 15,944
U.S. Treasury 1.75% 2019 4,000 3,982
U.S. Treasury 1.875% 2019 144,100 143,329
U.S. Treasury 1.25% 20201 175,500 173,454
U.S. Treasury 1.375% 2020 42,000 41,400
U.S. Treasury 1.375% 2020 27,450 27,084
U.S. Treasury 1.375% 2020 17,100 16,904
U.S. Treasury 1.375% 2020 17,156 16,827
U.S. Treasury 1.375% 2020 10,100 9,974
U.S. Treasury 1.50% 2020 131,700 130,022
U.S. Treasury 1.50% 2020 29,140 28,780
U.S. Treasury 1.75% 2020 138,920 137,100
U.S. Treasury 2.00% 2020 144,430 143,090
U.S. Treasury 2.25% 2020 82,300 82,044
U.S. Treasury 2.50% 2020 17,000 16,987
U.S. Treasury 2.75% 2020 57,000 57,172
U.S. Treasury 2.875% 2020 479,085 481,615
U.S. Treasury 8.75% 2020 12,200 13,100
U.S. Treasury 1.125% 20211 200,000 194,562
U.S. Treasury 1.125% 2021 93,876 90,749
U.S. Treasury 1.125% 2021 42,500 41,189
U.S. Treasury 1.25% 2021 40,000 38,987
U.S. Treasury 1.375% 2021 155,220 151,856
U.S. Treasury 1.375% 2021 50,000 48,763
U.S. Treasury 1.75% 2021 150,000 147,027
U.S. Treasury 2.00% 2021 75,000 74,074
U.S. Treasury 2.00% 2021 26,700 26,346
U.S. Treasury 2.375% 2021 30,000 29,909
U.S. Treasury 2.375% 2021 4,000 3,988
U.S. Treasury 2.50% 2021 84,000 83,958
U.S. Treasury 2.875% 2021 12,500 12,616
U.S. Treasury 3.625% 2021 5,400 5,513
U.S. Treasury 8.00% 2021 20,000 22,858
U.S. Treasury 1.75% 2022 100,000 97,679
U.S. Treasury 1.75% 2022 23,300 22,790
U.S. Treasury 1.875% 2022 400,000 392,480
U.S. Treasury 1.875% 2022 89,000 87,092
U.S. Treasury 1.875% 2022 70,000 68,770
U.S. Treasury 1.875% 2022 50,000 49,101
U.S. Treasury 1.875% 2022 50,000 48,980
U.S. Treasury 2.00% 2022 526,400 517,046
U.S. Treasury 2.00% 2022 44,060 43,255

 

Intermediate Bond Fund of America — Page 1 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
U.S. Treasury bonds & notes (continued)
U.S. Treasury (continued)
Principal amount
(000)
Value
(000)
U.S. Treasury 2.125% 2022 $60,000 $59,151
U.S. Treasury 1.25% 2023 30,300 28,706
U.S. Treasury 1.375% 2023 9,000 8,558
U.S. Treasury 1.50% 2023 72,620 69,849
U.S. Treasury 1.625% 2023 109,456 105,553
U.S. Treasury 2.375% 2023 115,000 114,439
U.S. Treasury 2.50% 2023 550,855 550,662
U.S. Treasury 2.50% 2023 45,244 45,223
U.S. Treasury 2.625% 2023 246,711 247,789
U.S. Treasury 2.625% 2023 155,000 155,708
U.S. Treasury 2.625% 2023 150,000 150,703
U.S. Treasury 2.75% 2023 120,000 121,111
U.S. Treasury 2.75% 2023 100,000 100,980
U.S. Treasury 2.875% 2023 341,000 346,569
U.S. Treasury 2.875% 2023 160,900 163,396
U.S. Treasury 7.125% 2023 15,000 17,584
U.S. Treasury 1.875% 2024 19,500 18,834
U.S. Treasury 2.00% 2024 40,000 38,947
U.S. Treasury 2.125% 2024 426,625 417,094
U.S. Treasury 2.125% 2024 63,000 61,656
U.S. Treasury 2.125% 2024 60,000 58,594
U.S. Treasury 2.25% 2024 49,600 48,970
U.S. Treasury 2.50% 2024 782,161 781,699
U.S. Treasury 2.50% 2024 122,000 121,780
U.S. Treasury 2.625% 2025 194,000 194,250
U.S. Treasury 2.75% 2025 175,000 176,552
U.S. Treasury 2.875% 2025 130,000 132,138
U.S. Treasury 2.625% 2026 30,000 30,040
    8,642,535
U.S. Treasury inflation-protected securities 4.98%    
U.S. Treasury Inflation-Protected Security 0.125% 20212 31,804 31,394
U.S. Treasury Inflation-Protected Security 0.125% 20222 77,488 76,139
U.S. Treasury Inflation-Protected Security 0.625% 20232 235,188 234,939
U.S. Treasury Inflation-Protected Security 0.625% 20242 94,386 94,463
U.S. Treasury Inflation-Protected Security 0.625% 20262 105,745 105,276
U.S. Treasury Inflation-Protected Security 0.375% 20272 118,059 114,840
U.S. Treasury Inflation-Protected Security 2.125% 20412 1,251 1,512
U.S. Treasury Inflation-Protected Security 0.75% 20421,2 145,818 135,817
U.S. Treasury Inflation-Protected Security 1.375% 20442 91,639 96,974
U.S. Treasury Inflation-Protected Security 1.00% 20462 42,417 41,261
    932,615
Total U.S. Treasury bonds & notes   9,575,150
Corporate bonds & notes 22.36%
Financials 7.37%
   
ABN AMRO Bank NV 2.65% 20213 33,500 33,277
ACE INA Holdings Inc. 2.30% 2020 3,075 3,047
ACE INA Holdings Inc. 2.875% 2022 1,060 1,063
American Express Co. 2.20% 2020 17,500 17,287
Bank of America Corp. 3.55% 2024 (3-month USD-LIBOR + 0.78% on 3/5/2023)4 45,817 46,026
Bank of America Corp. 3.864% 2024 (3-month USD-LIBOR + 0.94% on 7/23/2023)4 9,900 10,067
Barclays Bank PLC 3.65% 2025 10,000 9,653

 

Intermediate Bond Fund of America — Page 2 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Corporate bonds & notes (continued)
Financials (continued)
Principal amount
(000)
Value
(000)
Barclays Bank PLC 4.375% 2026 $10,000 $9,942
BB&T Corp. 2.25% 2020 17,500 17,357
BB&T Corp. (3-month USD-LIBOR + 2.25%) 2.958% 20205 10,000 9,993
Berkshire Hathaway Finance Corp. 1.30% 2019 15,000 14,908
BNP Paribas 5.00% 2021 8,000 8,298
BNP Paribas 3.50% 20233 6,850 6,790
BNP Paribas 3.375% 20253 8,725 8,450
Carlyle Investment Management (1-month USD-LIBOR + 2.00%) 4.779% 20193,5,6,7 1,805 1,805
CBOE Holdings, Inc. 1.95% 2019 12,500 12,476
Charles Schwab Corp. 3.85% 2025 15,825 16,386
Citigroup Inc. 3.142% 2023 (3-month USD-LIBOR + 0.722% on 1/4/2022)4 20,950 20,884
Citigroup Inc. 4.044% 2024 (3-month USD-LIBOR + 1.023% on 6/1/2023)4 15,000 15,349
Cooperatieve Rabobank U.A. 2.75% 2023 37,500 36,884
Crédit Agricole SA 3.75% 20233 16,000 15,956
Crédit Agricole SA 4.375% 20253 3,025 3,023
Credit Suisse Group AG 3.00% 2021 10,500 10,488
Credit Suisse Group AG 3.80% 2022 10,784 10,851
Credit Suisse Group AG 2.997% 2023 (3-month USD-LIBOR + 1.20% on 12/14/2022)3,4 19,725 19,099
Credit Suisse Group AG 3.80% 2023 16,500 16,513
Credit Suisse Group AG 4.207% 2024 (3-month USD-LIBOR + 1.24% on 6/12/2023)3,4 5,300 5,330
Credit Suisse Group AG 3.869% 2029 (3-month USD-LIBOR + 1.41% on 1/12/2028)3,4 1,675 1,613
Danske Bank AS 2.80% 20213 14,698 14,442
Danske Bank AS 2.70% 20223 10,000 9,645
Danske Bank AS 3.875% 20233 15,000 14,573
Discover Financial Services 3.35% 2023 10,000 9,885
DNB Bank ASA 2.125% 20203 5,200 5,131
DNB Bank ASA 2.375% 20213 20,000 19,694
Ford Motor Credit Co. 3.81% 2024 6,650 6,200
Goldman Sachs Group, Inc. 5.25% 2021 3,560 3,727
Goldman Sachs Group, Inc. 2.905% 2023 (3-month USD-LIBOR + 0.99% on 7/24/2022)4 53,100 52,036
Goldman Sachs Group, Inc. 3.625% 2024 15,000 15,034
Goldman Sachs Group, Inc. 3.75% 2026 9,750 9,639
Groupe BPCE SA 5.70% 20233 2,245 2,360
Groupe BPCE SA 5.15% 20243 5,300 5,441
HSBC Holdings PLC 3.033% 2023 (3-month USD-LIBOR + 0.923% on 11/12/2022)4 6,315 6,205
HSBC Holdings PLC 3.262% 2023 (3-month USD-LIBOR + 1.055% on 3/13/2022)4 3,500 3,475
HSBC Holdings PLC 3.95% 2024 (3-month USD-LIBOR + 0.987% on 5/18/2023)4 2,950 2,980
HSBC Holdings PLC 4.292% 2026 (3-month USD-LIBOR + 1.348% on 9/12/2025)4 22,275 22,572
HSBC Holdings PLC 4.583% 2029 (3-month USD-LIBOR + 1.535% on 6/19/2028)4 9,400 9,641
Intesa Sanpaolo SpA 3.125% 20223 10,000 9,507
Intesa Sanpaolo SpA 3.375% 20233 5,820 5,555
Intesa Sanpaolo SpA 5.017% 20243 3,166 2,935
Intesa Sanpaolo SpA 3.875% 20273 6,179 5,435
JPMorgan Chase & Co. 2.55% 2020 5,980 5,944
JPMorgan Chase & Co. 2.604% 2021 (3-month USD-LIBOR + 0.28% on 2/1/2020)4 12,000 11,955
JPMorgan Chase & Co. 3.797% 2024 (3-month USD-LIBOR + 0.89% on 7/23/2023)4 25,000 25,374
JPMorgan Chase & Co. 4.023% 2024 (3-month USD-LIBOR + 1.00% on 12/05/2023)4 12,250 12,570
Lloyds Banking Group PLC 4.05% 2023 40,000 40,374
Lloyds Banking Group PLC 4.45% 2025 11,150 11,416
Metropolitan Life Global Funding I 2.30% 20193 4,720 4,718
Metropolitan Life Global Funding I 2.00% 20203 830 822
Metropolitan Life Global Funding I 2.40% 20213 22,500 22,297
Metropolitan Life Global Funding I 3.375% 20223 14,850 14,936
Morgan Stanley 3.737% 2024 (3-month USD-LIBOR + 0.847% on 4/24/2023)4 35,000 35,329

 

Intermediate Bond Fund of America — Page 3 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Corporate bonds & notes (continued)
Financials (continued)
Principal amount
(000)
Value
(000)
Morgan Stanley 3.125% 2026 $3,570 $3,410
Nationwide Building Society 3.766% 2024 (3-month USD-LIBOR + 1.064% on 3/8/2023)3,4 11,620 11,458
New York Life Global Funding 1.50% 20193 15,260 15,143
New York Life Global Funding 1.95% 20203 14,125 13,937
New York Life Global Funding 1.95% 20203 7,200 7,148
New York Life Global Funding 1.70% 20213 12,500 12,112
New York Life Global Funding 2.00% 20213 12,274 12,035
Nordea Bank AB 1.625% 20193 30,000 29,790
Nordea Bank AB 2.25% 20213 15,000 14,740
PNC Bank 2.00% 2020 14,250 14,102
PNC Bank 2.50% 2021 25,000 24,750
PNC Financial Services Group, Inc. 2.854% 20224 5,000 4,938
Rabobank Nederland 4.625% 2023 10,000 10,312
Royal Bank of Canada 2.125% 2020 10,000 9,934
Royal Bank of Scotland PLC 3.498% 2023 (3-month USD-LIBOR + 1.48% on 5/15/2022)4 23,500 23,187
Santander Holdings USA, Inc. 3.70% 2022 15,000 15,001
Skandinaviska Enskilda Banken AB 2.375% 20193 20,000 20,001
Skandinaviska Enskilda Banken AB 1.875% 2021 13,025 12,608
Skandinaviska Enskilda Banken AB 2.625% 2021 20,975 20,810
Skandinaviska Enskilda Banken AB 2.80% 2022 5,800 5,726
Standard Chartered PLC 2.10% 20193 5,000 4,981
Svenska Handelsbanken AB 1.50% 2019 1,380 1,371
Svenska Handelsbanken AB 2.25% 2019 18,858 18,836
Swedbank AB 2.20% 20203 40,724 40,379
Swedbank AB 2.80% 20223 15,000 14,777
Toronto-Dominion Bank 1.90% 2019 10,000 9,951
Toronto-Dominion Bank 2.55% 2021 20,000 19,874
UniCredit SpA 3.75% 20223 23,650 23,102
UniCredit SpA 6.572% 20223 9,220 9,458
UniCredit SpA 4.625% 20273 4,150 3,932
Unum Group 5.625% 2020 1,100 1,137
US Bancorp 2.00% 2020 1,000 993
US Bancorp 2.05% 2020 20,000 19,747
US Bancorp 3.40% 2023 37,500 37,963
Wells Fargo & Co. 2.15% 2019 25,000 24,885
Wells Fargo & Co. 2.55% 2020 6,525 6,478
Wells Fargo & Co. 2.625% 2022 40,700 39,953
Wells Fargo & Co. 3.55% 2023 16,500 16,754
    1,380,375
Health care 3.39%    
AbbVie Inc. 2.50% 2020 2,285 2,271
Allergan PLC 3.45% 2022 11,400 11,358
Allergan PLC 3.80% 2025 5,045 4,987
Amgen Inc. 1.90% 2019 15,000 14,977
AstraZeneca PLC 2.375% 2022 20,000 19,517
AstraZeneca PLC 3.50% 2023 18,850 18,955
Baxalta Inc. 4.00% 2025 1,220 1,213
Bayer US Finance II LLC 3.875% 20233 41,900 41,808
Bayer US Finance II LLC 4.25% 20253 1,521 1,523
Bayer US Finance II LLC 4.375% 20283 3,813 3,715
Becton, Dickinson and Co. 2.894% 2022 650 643
Boston Scientific Corp. 3.375% 2022 2,000 2,006
Boston Scientific Corp. 3.45% 2024 17,875 17,953

 

Intermediate Bond Fund of America — Page 4 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Corporate bonds & notes (continued)
Health care (continued)
Principal amount
(000)
Value
(000)
Celgene Corp. 3.25% 2023 $13,054 $12,951
Cigna Corp. 3.75% 20233 40,000 40,512
Cigna Corp. 4.125% 20253 8,415 8,550
CVS Health Corp. 3.35% 2021 10,535 10,570
CVS Health Corp. 4.30% 2028 23,275 23,313
EMD Finance LLC 2.40% 20203 30,000 29,817
EMD Finance LLC 2.95% 20223 34,620 34,172
EMD Finance LLC 3.25% 20253 41,075 39,763
Gilead Sciences, Inc. 1.85% 2019 7,745 7,715
GlaxoSmithKline Capital Inc. 2.85% 2022 10,000 9,978
GlaxoSmithKline PLC 3.125% 2021 29,350 29,558
GlaxoSmithKline PLC 3.375% 2023 775 785
Johnson & Johnson 2.625% 2025 18,035 17,759
Medtronic, Inc. 1.70% 2019 50,000 49,971
Merck & Co., Inc. 2.80% 2023 16,547 16,447
Roche Holdings, Inc. 2.25% 20193 375 374
Roche Holdings, Inc. (3-month USD-LIBOR + 0.34%) 3.143% 20193,5 8,500 8,515
Roche Holdings, Inc. 2.875% 20213 3,025 3,025
Roche Holdings, Inc. 3.35% 20243 7,625 7,735
Roche Holdings, Inc. 3.00% 20253 1,710 1,696
Shire PLC 1.90% 2019 16,360 16,248
Shire PLC 2.40% 2021 14,178 13,865
Shire PLC 2.875% 2023 40,220 38,836
Takeda Pharmaceutical Co., Ltd. 3.80% 20203 6,440 6,505
Takeda Pharmaceutical Co., Ltd. 4.40% 20233 10,383 10,718
UnitedHealth Group Inc. 2.125% 2021 26,195 25,830
UnitedHealth Group Inc. 3.50% 2024 14,265 14,472
Zimmer Holdings, Inc. 2.70% 2020 14,685 14,621
    635,227
Consumer staples 2.29%    
Altria Group, Inc. 3.80% 2024 28,680 28,699
Altria Group, Inc. 4.40% 2026 8,580 8,660
Altria Group, Inc. 4.80% 2029 15,860 15,860
Anheuser-Busch InBev NV 4.15% 2025 7,528 7,781
British American Tobacco PLC 2.297% 2020 13,400 13,210
Colgate-Palmolive Co. 2.25% 2022 21,700 21,327
Conagra Brands, Inc. 4.30% 2024 41,980 42,567
Costco Wholesale Corp. 2.30% 2022 10,406 10,311
Keurig Dr Pepper Inc. 3.551% 20213 14,450 14,540
Keurig Dr Pepper Inc. 4.057% 20233 30,000 30,350
Keurig Dr Pepper Inc. 4.417% 20253 10,321 10,515
Molson Coors Brewing Co. 1.90% 2019 3,450 3,449
Molson Coors Brewing Co. 2.25% 2020 1,275 1,264
Nestle Holdings, Inc. 3.35% 20233 16,750 17,037
Philip Morris International Inc. 2.00% 2020 3,915 3,884
Philip Morris International Inc. 2.90% 2021 8,850 8,851
Philip Morris International Inc. 2.375% 2022 15,175 14,806
Philip Morris International Inc. 2.50% 2022 30,000 29,366
Philip Morris International Inc. 2.625% 2022 1,140 1,125
Procter & Gamble Co. 1.75% 2019 25,000 24,866
Reckitt Benckiser Group PLC 2.375% 20223 15,025 14,606
Reynolds American Inc. 3.25% 2020 7,355 7,352
Reynolds American Inc. 4.00% 2022 960 972

 

Intermediate Bond Fund of America — Page 5 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Corporate bonds & notes (continued)
Consumer staples (continued)
Principal amount
(000)
Value
(000)
Reynolds American Inc. 4.45% 2025 $10,940 $11,043
Unilever Capital Corp. 1.375% 2021 15,000 14,505
Wal-Mart Stores, Inc. 2.35% 2022 2,500 2,463
Wal-Mart Stores, Inc. 3.40% 2023 58,965 60,113
WM. Wrigley Jr. Co. 3.375% 20203 9,106 9,170
    428,692
Industrials 2.04%    
3M Co. 2.25% 2023 36,739 35,900
3M Co. 3.25% 2024 53,500 54,322
Boeing Co. 2.80% 2023 24,455 24,519
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 2022 110 117
ERAC USA Finance Co. 2.70% 20233 35,000 33,392
General Dynamics Corp. 3.00% 2021 10,000 10,045
Honeywell International Inc. 1.85% 2021 12,500 12,232
Northrop Grumman Corp. 2.55% 2022 12,500 12,290
Siemens AG 1.30% 20193 25,000 24,799
Siemens AG 2.15% 20203 2,000 1,982
Siemens AG 1.70% 20213 25,500 24,702
Siemens AG 2.70% 20223 22,500 22,274
Union Pacific Corp. 3.20% 2021 11,010 11,087
Union Pacific Corp. 3.50% 2023 38,750 39,275
Union Pacific Corp. 3.15% 2024 9,803 9,781
United Technologies Corp. 3.65% 2023 54,250 55,057
Westinghouse Air Brake Technologies Corp. 4.15% 2024 10,000 9,994
    381,768
Consumer discretionary 1.95%    
Amazon.com, Inc. 3.30% 2021 9,500 9,657
Amazon.com, Inc. 2.80% 2024 9,000 8,938
American Honda Finance Corp. 2.65% 2021 25,000 24,934
American Honda Finance Corp. 2.60% 2022 12,000 11,787
Bayerische Motoren Werke AG 1.45% 20193 20,000 19,861
Bayerische Motoren Werke AG 2.15% 20203 10,000 9,930
DaimlerChrysler North America Holding Corp. 1.50% 20193 15,000 14,934
DaimlerChrysler North America Holding Corp. 2.45% 2020 5,600 5,548
DaimlerChrysler North America Holding Corp. 2.70% 20203 7,500 7,440
DaimlerChrysler North America Holding Corp. 2.00% 20213 6,100 5,909
DaimlerChrysler North America Holding Corp. 3.00% 20213 30,000 29,812
DaimlerChrysler North America Holding Corp. 3.65% 20243 35,000 34,867
Ford Motor Credit Co. 3.664% 2024 8,170 7,427
Hyundai Capital America 2.55% 20203 12,190 12,070
Hyundai Capital America 2.75% 20203 32,950 32,564
Hyundai Capital America 3.25% 20223 11,552 11,331
Hyundai Capital Services Inc. 2.625% 20203 2,090 2,062
Starbucks Corp. 2.20% 2020 21,760 21,522
Starbucks Corp. 3.80% 2025 17,500 17,766
Toyota Motor Credit Corp. 2.15% 2020 2,000 1,987
Toyota Motor Credit Corp. 2.15% 2022 7,600 7,451
Toyota Motor Credit Corp. 2.70% 2023 6,275 6,191
Toyota Motor Credit Corp. 3.419% 2023 4,926 4,988
Toyota Motor Credit Corp. 2.90% 2024 5,064 5,000
Toyota Motor Credit Corp. 3.35% 2024 10,010 10,130
Volkswagen Group of America Finance, LLC 4.00% 20213 23,023 23,333

 

Intermediate Bond Fund of America — Page 6 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Corporate bonds & notes (continued)
Consumer discretionary (continued)
Principal amount
(000)
Value
(000)
Volkswagen Group of America Finance, LLC 4.25% 20233 $9,500 $9,679
Volkswagen Group of America Finance, LLC 4.625% 20253 8,490 8,653
    365,771
Utilities 1.83%    
Berkshire Hathaway Energy Co. 2.40% 2020 10,500 10,463
CenterPoint Energy, Inc. 3.60% 2021 25,000 25,197
CMS Energy Corp. 3.00% 2026 2,000 1,912
CMS Energy Corp. 3.45% 2027 3,000 2,934
Consolidated Edison, Inc. 2.00% 2020 11,850 11,762
Dominion Gas Holdings LLC 2.50% 2019 2,975 2,967
Duke Energy Carolinas, Inc. 3.05% 2023 20,000 20,108
Duke Energy Corp. 3.75% 2024 8,200 8,336
Duke Energy Progress, LLC 3.375% 2023 10,455 10,590
Edison International 2.125% 2020 18,000 17,644
Emera US Finance LP 2.70% 2021 2,890 2,839
Enel Finance International SA 2.75% 20233 23,725 22,554
Enel Finance International SA 3.625% 20273 14,000 12,920
Enel Finance International SA 3.50% 20283 12,500 11,195
Eversource Energy 2.50% 2021 16,225 16,051
Eversource Energy 2.375% 2022 1,414 1,378
Exelon Corp. 2.45% 2021 12,840 12,592
Exelon Corp. 3.497% 20224 2,185 2,171
FirstEnergy Corp., Series B, 4.25% 2023 7,550 7,738
Iberdrola Finance Ireland 5.00% 20193 5,000 5,046
National Rural Utilities Cooperative Finance Corp. 2.30% 2020 2,025 2,007
National Rural Utilities Cooperative Finance Corp. 2.90% 2021 27,950 27,974
National Rural Utilities Cooperative Finance Corp. 2.95% 2024 15,750 15,614
Niagara Mohawk Power Corp. 3.508% 20243 3,055 3,073
Pacific Gas and Electric Co. 3.85% 2023 22,220 19,220
Pacific Gas and Electric Co. 4.25% 20233,8 13,445 11,899
Public Service Co. of Colorado 2.25% 2022 7,000 6,830
Public Service Enterprise Group Inc. 3.50% 2020 15,467 15,608
Public Service Enterprise Group Inc. 2.00% 2021 8,271 7,983
Public Service Enterprise Group Inc. 2.65% 2022 10,000 9,773
Puget Energy, Inc. 6.50% 2020 4,222 4,438
Virginia Electric and Power Co. 2.95% 2022 4,662 4,636
Virginia Electric and Power Co., Series B, 3.45% 2022 1,334 1,347
Xcel Energy Inc. 2.60% 2022 5,000 4,919
    341,718
Energy 1.51%    
BP Capital Markets PLC 3.79% 2024 30,000 30,844
BP Capital Markets PLC 3.52% 2026 10,000 9,990
Canadian Natural Resources Ltd. 2.95% 2023 25,000 24,475
Chevron Corp. 1.561% 2019 3,700 3,693
Chevron Corp. 2.10% 2021 10,000 9,866
Chevron Corp. 2.498% 2022 15,105 14,990
Enbridge Inc. 2.90% 2022 28,951 28,506
Enbridge Inc. 4.00% 2023 24,995 25,451
Enbridge Inc. 4.25% 2026 980 1,000
Energy Transfer Partners, LP 4.20% 2023 8,105 8,273
Energy Transfer Partners, LP 4.00% 2027 7,250 6,964
Exxon Mobil Corp. 2.222% 2021 15,000 14,873

 

Intermediate Bond Fund of America — Page 7 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Corporate bonds & notes (continued)
Energy (continued)
Principal amount
(000)
Value
(000)
Kinder Morgan, Inc. 3.05% 2019 $3,785 $3,786
Kinder Morgan, Inc. 3.15% 2023 15,000 14,846
Schlumberger BV 3.625% 20223 2,425 2,466
Schlumberger BV 3.75% 20243 17,500 17,586
Schlumberger BV 4.00% 20253 3,940 3,977
Shell International Finance BV 2.125% 2020 7,605 7,554
Shell International Finance BV 1.875% 2021 10,000 9,819
Shell International Finance BV 3.50% 2023 36,224 37,030
Statoil ASA 2.75% 2021 2,120 2,121
Williams Partners LP 4.30% 2024 4,178 4,277
    282,387
Real estate 0.93%    
American Campus Communities, Inc. 3.35% 2020 10,000 10,000
American Campus Communities, Inc. 3.75% 2023 6,580 6,574
American Campus Communities, Inc. 4.125% 2024 19,225 19,393
Hospitality Properties Trust 4.50% 2023 3,500 3,483
Kimco Realty Corp. 3.20% 2021 11,085 11,056
Kimco Realty Corp. 3.30% 2025 10,000 9,733
Scentre Group 2.375% 20213 20,430 20,035
Scentre Group 3.25% 20253 1,500 1,448
Scentre Group 3.50% 20253 3,000 2,952
Simon Property Group, LP 2.75% 2023 15,000 14,733
WEA Finance LLC 2.70% 20193 8,885 8,877
WEA Finance LLC 3.25% 20203 21,300 21,344
WEA Finance LLC 3.75% 20243 22,790 22,838
Westfield Corp. Ltd. 3.15% 20223 21,945 21,776
    174,242
Communication services 0.68%    
CCO Holdings LLC and CCO Holdings Capital Corp. 4.50% 2024 30,000 30,765
Comcast Corp. 3.70% 2024 5,860 5,998
Comcast Corp. 3.95% 2025 25,105 25,898
Deutsche Telekom International Finance BV 1.95% 20213 2,406 2,328
Deutsche Telekom International Finance BV 2.82% 20223 6,794 6,711
Deutsche Telekom International Finance BV 2.485% 20233 25,525 24,458
Fox Corp. 4.03% 20243 7,560 7,713
Vodafone Group PLC 4.375% 2028 23,500 23,315
    127,186
Information technology 0.36%    
Apple Inc. 2.50% 2022 6,495 6,455
Broadcom Ltd. 3.875% 2027 10,960 10,163
Broadcom Ltd. 3.50% 2028 2,500 2,216
Microsoft Corp. 1.10% 2019 9,330 9,275
Oracle Corp. 2.625% 2023 21,500 21,201
Visa Inc. 2.15% 2022 15,000 14,705
Visa Inc. 2.80% 2022 4,000 4,004
    68,019
Materials 0.01%    
Georgia-Pacific Corp. 2.539% 20193 2,500 2,495
Total corporate bonds & notes   4,187,880

 

Intermediate Bond Fund of America — Page 8 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Mortgage-backed obligations 9.30%
Federal agency mortgage-backed obligations 7.47%
Principal amount
(000)
Value
(000)
Fannie Mae 9.112% 20269 $13 $14
Fannie Mae 3.00% 20279 10,778 10,808
Fannie Mae 3.00% 20289 7,640 7,657
Fannie Mae 3.00% 20339 12,398 12,383
Fannie Mae 3.00% 20339 6,888 6,880
Fannie Mae 3.00% 20339 6,838 6,830
Fannie Mae 3.00% 20339 2,192 2,190
Fannie Mae 3.00% 20339 2,072 2,070
Fannie Mae 3.00% 20339 1,989 1,987
Fannie Mae 3.00% 20339 1,946 1,944
Fannie Mae 3.00% 20339 1,195 1,193
Fannie Mae 3.00% 20339 1,139 1,138
Fannie Mae 3.00% 20339 1,020 1,019
Fannie Mae 3.00% 20339 996 994
Fannie Mae 3.00% 20339 996 994
Fannie Mae 3.00% 20339 996 994
Fannie Mae 3.00% 20339 995 994
Fannie Mae 3.00% 20339 943 942
Fannie Mae 3.00% 20339 647 646
Fannie Mae 3.00% 20339 431 431
Fannie Mae 3.00% 20339 352 352
Fannie Mae 3.00% 20339 324 324
Fannie Mae 3.00% 20339 323 323
Fannie Mae 3.00% 20339 290 290
Fannie Mae 3.00% 20339 272 272
Fannie Mae 3.00% 20339 235 235
Fannie Mae 3.00% 20339 229 229
Fannie Mae 3.00% 20339 226 226
Fannie Mae 3.00% 20339 222 222
Fannie Mae 3.00% 20339 198 197
Fannie Mae 3.00% 20339 149 149
Fannie Mae 3.00% 20339 149 149
Fannie Mae 3.00% 20339 148 148
Fannie Mae 3.00% 20339 147 147
Fannie Mae 3.00% 20339 145 145
Fannie Mae 3.00% 20339 96 96
Fannie Mae 3.00% 20339 77 77
Fannie Mae 3.00% 20339 62 62
Fannie Mae 3.00% 20339 43 43
Fannie Mae 3.00% 20339 42 42
Fannie Mae 3.00% 20339 39 39
Fannie Mae 3.00% 20339 27 27
Fannie Mae 4.00% 20339 75,925 77,983
Fannie Mae 3.00% 20349,10 99,540 99,345
Fannie Mae 3.00% 20349 21,024 20,999
Fannie Mae 3.00% 20349 7,647 7,637
Fannie Mae 3.00% 20349 6,812 6,804
Fannie Mae 3.00% 20349 1,176 1,174
Fannie Mae 3.00% 20349 987 986
Fannie Mae 3.00% 20349 199 199
Fannie Mae 3.00% 20349 143 143
Fannie Mae 3.50% 20349,10 70,662 71,769
Fannie Mae 3.50% 20349 382 387
Fannie Mae 4.00% 20349,10 30,000 30,767

 

Intermediate Bond Fund of America — Page 9 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Mortgage-backed obligations (continued)
Federal agency mortgage-backed obligations (continued)
Principal amount
(000)
Value
(000)
Fannie Mae 4.00% 20369 $2,165 $2,237
Fannie Mae 4.00% 20369 150 155
Fannie Mae 7.00% 20379 73 81
Fannie Mae 5.50% 20409 310 330
Fannie Mae 4.00% 20479 35,155 35,966
Fannie Mae 4.00% 20479 5,336 5,455
Fannie Mae 4.00% 20489 4,306 4,394
Fannie Mae 4.50% 20489,10 29,077 30,113
Fannie Mae 5.00% 20489 4,496 4,722
Fannie Mae 4.00% 20499,10 56,210 57,270
Fannie Mae 4.02% 20495,9 25,158 25,815
Fannie Mae 4.50% 20499,10 78,940 81,684
Fannie Mae Pool #BN0301 3.97% 20485,9 16,490 16,904
Fannie Mae Pool #BN0374 3.987% 20485,9 11,403 11,688
Fannie Mae, Series 2001-4, Class NA, 9.063% 20255,9 4 4
Fannie Mae, Series 2001-4, Class GA, 9.179% 20255,9 12 12
Fannie Mae, Series 2002-W7, Class A5, 7.50% 20299 199 230
Fannie Mae, Series 2001-20, Class D, 11.006% 20315,9 1 1
Fannie Mae, Series 2001-T10, Class A1, 7.00% 20419 77 87
Fannie Mae, Series 2002-W3, Class A5, 7.50% 20419 308 353
Fannie Mae, Series 2006-96, Class MO, principal only, 0% 20369 495 452
Fannie Mae, Series 2006-123, Class BO, principal only, 0% 20379 1,312 1,171
Freddie Mac 3.50% 20349,10 16,500 16,771
Freddie Mac 4.00% 20369 2,990 3,068
Freddie Mac 4.00% 20369 1,167 1,206
Freddie Mac 4.00% 20379 9,919 10,218
Freddie Mac 3.30% 20455,9 10,004 10,078
Freddie Mac 4.50% 20489 7,769 8,056
Freddie Mac 4.50% 20489 3,020 3,131
Freddie Mac 4.50% 20499,10 20,087 20,809
Freddie Mac, Series 1567, Class A, (1-month USD-LIBOR + 0.40%) 2.889% 20235,9 7 7
Freddie Mac, Series T-041, Class 3A, 5.459% 20325,9 202 216
Freddie Mac, Series 4582, Class GA, 3.75% 20525,9 68,259 69,666
Freddie Mac, Series K050, Class A2, Multi Family, 3.334% 20259 40,000 40,727
Freddie Mac, Series K733, Class A2, Multi Family, 3.75% 20255,9 61,000 63,573
Freddie Mac, Series K057, Class A2, Multi Family, 2.57% 20269 20,200 19,541
Freddie Mac, Series K062, Class A2, Multi Family, 3.413% 20269 20,000 20,419
Freddie Mac, Series K067, Class A2, Multi Family, 3.194% 20279 9,235 9,242
Freddie Mac, Series K072, Class A2, Multi Family, 3.444% 20279 9,500 9,672
Freddie Mac, Series K073, Class A2, Multi Family, 3.35% 20289 9,286 9,381
Freddie Mac, Series K075, Class A2, Multi Family, 3.65% 20285,9 16,965 17,527
Freddie Mac, Series K077, Class A2, Multi Family, 3.85% 20289 7,400 7,757
Freddie Mac, Series K078, Class A2, Multi Family, 3.854% 20289 3,250 3,408
Freddie Mac, Series K076, Class A2, Multi Family, 3.90% 20289 21,415 22,543
Freddie Mac, Series K080, Class A2, Multi Family, 3.926% 20285,9 18,000 18,987
Freddie Mac, Series K726, Class A2, Multi Family, 2.905% 20499 31,580 31,634
Freddie Mac, Series 3171, Class MO, principal only, 0% 20369 1,162 1,046
Freddie Mac, Series 3213, Class OG, principal only, 0% 20369 664 599
Freddie Mac, Series 3292, Class BO, principal only, 0% 20379 169 145
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.50% 20569 14,620 14,382
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-1, Class HA, 2.75% 20565,9 16,852 16,409
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20569 13,875 13,675
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.75% 20575,9 1,031 1,005
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-2, Class MT, 3.50% 20579 18,126 17,954

 

Intermediate Bond Fund of America — Page 10 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Mortgage-backed obligations (continued)
Federal agency mortgage-backed obligations (continued)
Principal amount
(000)
Value
(000)
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20579 $805 $800
Freddie Mac Seasoned Loan Structured Transaction, Series 2018-2, Class A1, 3.50% 20289 23,140 23,281
Freddie Mac Seasoned Loan Structured Transaction, Series 2018-1, Class A1, 3.50% 20289 2,072 2,085
Government National Mortgage Assn. 4.50% 20429 15 16
Government National Mortgage Assn. 3.00% 20479 6,387 6,309
Government National Mortgage Assn. 3.00% 20479 5,652 5,582
Government National Mortgage Assn. 4.50% 20499,10 4,000 4,139
Government National Mortgage Assn. 5.00% 20499,10 139,391 145,189
Government National Mortgage Assn. 5.00% 20499,10 36,869 38,381
Government National Mortgage Assn. 5.00% 20499 21,441 22,417
Government National Mortgage Assn. 5.00% 20499 3,657 3,822
    1,398,092
Collateralized mortgage-backed obligations (privately originated) 1.81%    
Arroyo Mortgage Trust, Series 2018-1, Class A1, 3.763% 20483,5,9 48,155 48,226
Arroyo Mortgage Trust, Series 2019-1, Class A1, 3.805% 20493,5,9 24,115 24,152
Cascade Funding Mortgage Trust, Series 2018-RM2, Class A, 4.00% 20683,6,9 9,248 9,325
Connecticut Avenue Securities, Series 2014-C02, Class 1M1, (1-month USD-LIBOR + 0.95%) 3.44% 20245,9 27 27
CS First Boston Mortgage Securities Corp., Series 2002-30, Class IA1, 7.50% 20329 124 139
CS First Boston Mortgage Securities Corp., Series 2002-34, Class IA1, 7.50% 20329 106 117
CS First Boston Mortgage Securities Corp., Series 2003-21, Class VA1, 6.50% 20339 182 196
CS First Boston Mortgage Securities Corp., Series 2003-29, Class VA1, 7.00% 20339 385 418
Finance of America Structured Securities Trust, Series 2018-HB1, Class A, 3.375% 20283,5,6,9 20,248 20,179
GFMT Mortgage Acquistion Co., Series 2018-2, Class A42, 4.00% 20583,5,9 20,146 20,302
Homeward Opportunities Fund Trust, Series 2018-1, 3.766% 20483,9 16,505 16,660
Mello Warehouse Securitization Trust, 2018-W1, Class A,
(1-month USD-LIBOR + 0.85%) 3.34% 20513,5,9
20,290 20,351
Mill City Mortgage Trust, Series 2016-1, Class A1, 2.50% 20573,5,9 804 792
Nationstar HECM Loan Trust, Series 2017-2A, Class A1, 2.038% 20273,5,9 13,310 13,283
Nationstar HECM Loan Trust, Series 2017-2A, Class M1, 2.815% 20273,6,9 4,965 4,914
Nationstar HECM Loan Trust, Series 2018-1A, Class A, 2.76% 20283,9 8,787 8,797
Nationstar HECM Loan Trust, Series 2018-2, Class A, 3.188% 20283,6,9 5,056 5,058
Nationstar HECM Loan Trust, Series 2018-1A, Class M1, 3.238% 20283,9 7,200 7,204
Nationstar HECM Loan Trust, Series 2018-3A, Class A, 3.555% 20283,5,6,9 33,665 33,676
PMT Loan Trust, Series 2013-J1, Class A6, 3.50% 20433,9 8 8
Reverse Mortgage Investment Trust, Series RBIT 18-1, Class A, 3.436% 20283,5,6,9 14,043 14,049
Sequoia Mortgage Trust, Series 2018-CH1, Class A1, 4.00% 20483,5,9 16,934 17,171
Starwood Mortgage Residential Trust, Series 2018-IMC1, Class A1 3.793% 20483,9 25,486 25,653
Station Place Securitization Trust, Series 2017-LD1, Class A,
(1-month USD-LIBOR + 0.80%) 3.29% 20503,5,9
28,005 28,011
Towd Point Mortgage Trust, Series 2017-1, Class A1, 2.75% 20563,5,9 379 372
Towd Point Mortgage Trust, Series 2017-5, Class A1, 3.09% 20573,5,9 15,169 15,123
Towd Point Mortgage Trust, Series 2019-SJ1, Class A1, 3.75% 20583,9 5,020 5,029
    339,232
Commercial mortgage-backed securities 0.02%    
DBUBS Mortgage Trust, Series 2011-LC3A, Class B, 5.338% 20443,5,9 3,500 3,662
Total mortgage-backed obligations   1,740,986
Asset-backed obligations 5.55%    
Aesop Funding LLC, Series 2014-2A, Class A, 2.50% 20213,9 10,000 9,966
Aesop Funding LLC, Series 2015-1, Class A, 2.50% 20213,9 10,000 9,936
Aesop Funding LLC, Series 2015-2A, Class A, 2.63% 20213,9 9,180 9,101
Aesop Funding LLC, Series 2016-1A, Class A, 2.99% 20223,9 8,020 7,990

 

Intermediate Bond Fund of America — Page 11 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Asset-backed obligations (continued)
Principal amount
(000)
Value
(000)
American Express Credit Account Master Trust, Series 2017-3, Class A, 1.77% 20229 $25,650 $25,377
American Express Credit Account Master Trust, Series 2017-1, Class A, 1.93% 20229 34,206 33,947
American Express Credit Account Master Trust, Series 2018-1, Class A, 2.67% 20229 500 500
American Express Credit Account Master Trust, Series 2019-1, Class A, 2.87% 20249 12,220 12,258
AmeriCredit Automobile Receivables Trust, Series 2015-3, Class C, 2.73% 20219 908 907
Angel Oak Capital Advisors LLC, CLO, Series 2013-9A, Class A1R,
(3-month USD-LIBOR + 1.01%) 3.771% 20253,5,9
4,885 4,885
California Republic Auto Receivables Trust, Series 2015-1, Class A4, 1.82% 20209 1,085 1,084
CarMaxAuto Owner Trust, Series 2018-3, Class A2A, 2.88% 20219 36,000 36,035
Chase Issuance Trust, Series 2016-A5, Class A5, 1.27% 20219 92,775 92,307
Chase Issuance Trust, Series 2016-A2, Class A, 1.37% 20219 10,890 10,850
Citibank Credit Card Issuance Trust, Series 2016-A1, Class A1, 1.75% 20219 3,893 3,867
Citibank Credit Card Issuance Trust, Series 2014-A6, Class A6, 2.15% 20219 3,500 3,494
Citibank Credit Card Issuance Trust, Series 2017-A3, Class A3, 1.92% 20229 60,507 59,959
CPS Auto Receivables Trust, Series 2016-C, Class B, 2.48% 20203,9 973 973
CPS Auto Receivables Trust, Series 2018-A, Class A, 2.16% 20213,9 6,041 6,030
CPS Auto Receivables Trust, Series 2017-B, Class B, 2.33% 20213,9 2,407 2,403
CPS Auto Receivables Trust, Series 2018-B, Class A, 2.72% 20213,9 2,096 2,095
CPS Auto Receivables Trust, Series 2018-C, Class A, 2.87% 20213,9 14,000 13,995
CPS Auto Receivables Trust, Series 2017-B, Class C, 2.92% 20223,9 357 355
CPS Auto Receivables Trust, Series 2017-D, Class C, 3.01% 20223,9 11,050 11,008
CPS Auto Receivables Trust, Series 2018-D, Class A, 3.06% 20223,9 8,820 8,823
CPS Auto Receivables Trust, Series 2018-D, Class B, 3.61% 20223,9 10,725 10,787
CPS Auto Receivables Trust, Series 2017-C, Class C, 2.86% 20233,9 155 154
Discover Card Execution Note Trust, Series 2014-A4, Class A4, 2.12% 20219 9,315 9,301
Discover Card Execution Note Trust, Series 2019-A14, Class A1 3.04% 20249 12,900 12,989
Drive Auto Receivables Trust, Series 2018-2, Class A2, 2.64% 20209 447 447
Drive Auto Receivables Trust, Series 2018-3, Class A2, 2.75% 20209 8,919 8,921
Drive Auto Receivables Trust, Series 2018-4, Class A2A, 2.86% 20209 4,216 4,217
Drive Auto Receivables Trust, Series 2016-CA, Class C, 3.02% 20213,9 5,140 5,142
Drive Auto Receivables Trust, Series 2018-4, Class A3, 3.15% 20219 3,475 3,479
Drive Auto Receivables Trust, Series 2017-1, Class C, 2.84% 20229 7,165 7,164
Drive Auto Receivables Trust, Series 2017-AA, Class C, 2.98% 20223,9 6,614 6,617
Drive Auto Receivables Trust, Series 2017-2, Class C, 2.75% 20239 10,306 10,302
Drive Auto Receivables Trust, Series 2018-1, Class C, 3.22% 20239 2,240 2,243
Drive Auto Receivables Trust, Series 2019-1, Class C, 3.78% 20259 21,500 21,664
Drivetime Auto Owner Trust, Series 2017-3A, Class B, 2.40% 20213,9 12,205 12,200
Drivetime Auto Owner Trust, Series 2017-4A, Class B, 2.44% 20213,9 10,587 10,586
Drivetime Auto Owner Trust, Series 2018-1A, Class A, 2.59% 20213,9 6,930 6,925
Drivetime Auto Owner Trust, Series 2018-2, Class A, 2.84% 20213,9 14,257 14,238
Drivetime Auto Owner Trust, Series 2017-1A, Class C, 2.70% 20223,9 3,687 3,682
Drivetime Auto Owner Trust, Series 2018-1A, Class B, 3.04% 20223,9 2,750 2,748
Drivetime Auto Owner Trust, Series 2016-3A, Class C, 3.15% 20223,9 314 314
Drivetime Auto Owner Trust, Series 2018-3A, Class A, 3.26% 20223,9 25,300 25,329
Drivetime Auto Owner Trust, Series 2017-4A, Class C, 2.86% 20233,9 10,000 9,975
Drivetime Auto Owner Trust, Series 2017-3A, Class C, 3.01% 20233,9 415 415
Drivetime Auto Owner Trust, Series 2018-1A, Class C, 3.47% 20233,9 6,450 6,468
Emerson Park Ltd., CLO, Series 2013-1A, Class A1AR, (3-month USD-LIBOR + 0.98%) 3.767% 20253,5,9 1,539 1,539
Enterprise Fleet Financing LLC, Series 2017-1, Class A2, 2.13% 20223,9 2,324 2,314
Exeter Automobile Receivables Trust, Series 2014-3A, Class C, 4.17% 20203,9 664 665
Exeter Automobile Receivables Trust, Series 2017-3A, Class A, 2.05% 20213,9 2,167 2,159
Exeter Automobile Receivables Trust, Series 2018-1A, Class A, 2.21% 20213,9 7,017 7,013
Exeter Automobile Receivables Trust, Series 2018-2A, Class A, 2.79% 20213,9 3,810 3,808
Exeter Automobile Receivables Trust, Series 2017-1A, Class B, 3.00% 20213,9 230 230
Exeter Automobile Receivables Trust, Series 2018-4A, Class A, 3.05% 20213,9 28,509 28,529

 

Intermediate Bond Fund of America — Page 12 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Asset-backed obligations (continued)
Principal amount
(000)
Value
(000)
Exeter Automobile Receivables Trust, Series 2016-1A, Class C, 5.52% 20213,9 $2,500 $2,525
Exeter Automobile Receivables Trust, Series 2018-1A, Class B, 2.75% 20223,9 425 424
Exeter Automobile Receivables Trust, Series 2016-3A, Class C, 4.22% 20223,9 2,825 2,857
First Investors Auto Owner Trust, Series 2014-2A, Class C, 2.70% 20203,9 3,705 3,706
First Investors Auto Owner Trust, Series 2017-1A, Class A1, 1.69% 20213,9 141 141
First Investors Auto Owner Trust, Series 2017-2, Class A1, 1.86% 20213,9 3,043 3,036
First Investors Auto Owner Trust, Series 2017-3, Class A1, 2.00% 20223,9 1,476 1,472
Ford Credit Auto Owner Trust, Series 2015-1, Class A, 2.12% 20263,9 42,650 42,359
Ford Credit Auto Owner Trust, Series 2018-2, Class A, 3.47% 20303,9 47,255 47,611
Ford Credit Auto Owner Trust, Series 2018-1, Class A, 3.52% 20303,9 15,000 15,105
Ford Credit Auto Owner Trust, Series 2018-1, Class A, 3.19% 20313,9 49,225 48,499
Ford Credit Floorplan Master Owner Trust, Series 2016-3, Class A1, 1.55% 20219 10,000 9,957
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A3, 4.35% 20409 48 49
Mercedes-Benz Auto Receivables Trust, Series 2018-1, Class A2A, 2.71% 20219 38,730 38,745
OneMain Direct Auto Receivables Trust, Series 2018-1, Class A, 3.43% 20243,9 17,500 17,632
Option One Mortgage Loan Trust, Series 2007-FXD2, Class IIA6, 5.68% 20379 759 751
Option One Mortgage Loan Trust, Series 2007-FXD2, Class IIA3, 5.715% 20379 1,991 1,970
Santander Drive Auto Receivables Trust, Series 2017-1, Class B, 2.10% 20219 4,121 4,116
Santander Drive Auto Receivables Trust, Series 2015-2, Class C, 2.44% 20219 1,077 1,077
Santander Drive Auto Receivables Trust, Series 2016-2, Class C, 2.66% 20219 5,515 5,509
Santander Drive Auto Receivables Trust, Series 2015-3, Class C, 2.74% 20219 2,217 2,218
Santander Drive Auto Receivables Trust, Series 2015-4, Class C, 2.97% 20219 2,203 2,204
Santander Drive Auto Receivables Trust, Series 2018-4, Class A2A, 3.07% 20219 15,006 14,998
Santander Drive Auto Receivables Trust, Series 2014-5, Class D, 3.21% 20219 704 704
Santander Drive Auto Receivables Trust, Series 2016-3, Class C, 2.46% 20229 6,735 6,711
Santander Drive Auto Receivables Trust, Series 2017-1, Class C, 2.58% 20229 3,185 3,176
Santander Drive Auto Receivables Trust, Series 2017-2, Class C, 2.79% 20229 2,390 2,385
Santander Drive Auto Receivables Trust, Series 2016-1, Class C, 3.09% 20229 12,392 12,400
SLM Private Credit Student Loan Trust, Series 2008-3, Class A3,
(3-month USD-LIBOR + 1.00%) 3.771% 20215,9
155 156
SLM Private Credit Student Loan Trust, Series 2008-2, Class A3,
(3-month USD-LIBOR + 0.75%) 3.521% 20235,9
3,846 3,814
SLM Private Credit Student Loan Trust, Series 2008-7, Class A4,
(3-month USD-LIBOR + 0.90%) 3.671% 20235,9
5,234 5,244
SLM Private Credit Student Loan Trust, Series 2008-6, Class A4,
(3-month USD-LIBOR + 1.10%) 3.871% 20235,9
4,174 4,178
SLM Private Credit Student Loan Trust, Series 2008-9, Class A,
(3-month USD-LIBOR + 1.50%) 4.271% 20235,9
3,010 3,036
SLM Private Credit Student Loan Trust, Series 2010-1, Class A,
(1-month USD-LIBOR + 0.40%) 2.91% 20255,9
6,201 6,056
Symphony Ltd., CLO, Series 2013-12A,Class AR, (3-month USD-LIBOR + 1.03%) 3.817% 20253,5,9 26,318 26,321
Synchrony Credit Card Master Note Trust, Series 2018-A1, Class A1, 3.38% 20249 19,840 20,078
Westlake Automobile Receivables Trust, Series 2017-2A, Class A2A, 1.80% 20203,9 3,671 3,668
Westlake Automobile Receivables Trust, Series 2018-1A, Class A2A, 2.24% 20203,9 3,113 3,109
Westlake Automobile Receivables Trust, Series 2018-2A, Class A2A, 2.84% 20213,9 5,579 5,577
Westlake Automobile Receivables Trust, Series 2017-2A, Class C 2.59% 20223,9 9,565 9,519
Westlake Automobile Receivables Trust, Series 2018-3A, Class A2A, 2.98% 20223,9 12,405 12,421
Westlake Automobile Receivables Trust, Series 2018-1A, Class C, 2.92% 20233,9 175 174
Wheels SPV 2 LLC, Series 2016-1A, Class A2, 1.59% 20253,9 215 215
World Financial Network Credit Card Master Note Trust, Series 2016-C, Class A, 1.72% 20239 675 670
World Financial Network Credit Card Master Note Trust, Series 2017-B, Class A, 1.98% 20239 5,445 5,431
World Financial Network Credit Card Master Note Trust, Series 2012-D, Class A, 2.15% 20239 4,695 4,687

 

Intermediate Bond Fund of America — Page 13 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Asset-backed obligations (continued)
Principal amount
(000)
Value
(000)
World Financial Network Credit Card Master Note Trust, Series 2012-A, Class A, 3.14% 20239 $2,850 $2,851
World Financial Network Credit Card Master Note Trust, Series 2018-B, Class A, 3.46% 20259 18,800 19,039
    1,039,290
Bonds & notes of governments & government agencies outside the U.S. 4.81%    
Asian Development Bank 2.75% 2023 21,359 21,500
Bank Nederlandse Gemeenten NV 1.75% 20203 29,400 28,985
Bank Nederlandse Gemeenten NV 2.375% 20223 10,000 9,919
Belgium (Kingdom of) 1.125% 20193 30,900 30,711
Caisse d’Amortissement de la Dette Sociale 3.375% 20243 9,090 9,355
European Bank for Reconstruction & Development 1.125% 2020 30,000 29,359
European Investment Bank 1.25% 2019 21,430 21,202
European Investment Bank 1.375% 2021 26,667 25,905
European Investment Bank 2.00% 2022 11,000 10,779
European Investment Bank 2.25% 2022 15,020 14,885
European Stability Mechanism 2.125% 20223 58,322 57,270
Export Development Canada 2.50% 2023 24,000 23,884
Inter-American Development Bank 1.25% 2021 40,000 38,728
International Bank for Reconstruction and Development 1.125% 2019 18,000 17,796
International Bank for Reconstruction and Development 1.375% 2021 40,000 38,802
International Bank for Reconstruction and Development 1.625% 2021 19,500 19,132
Japan Bank for International Cooperation 2.125% 2020 32,200 31,930
Japan Bank for International Cooperation 2.125% 2020 25,000 24,814
Japan Bank for International Cooperation 2.125% 2020 12,700 12,571
Japan Bank for International Cooperation (3-month USD-LIBOR + 0.48%) 3.218% 20205 16,552 16,630
Japan Bank for International Cooperation 3.125% 2021 38,336 38,667
Japan Finance Organization for Municipalities 2.625% 20223 13,000 12,864
KfW 2.125% 2022 16,655 16,376
KfW 2.375% 2022 15,000 14,811
Landwirtschaftliche Rentenbank 2.00% 2021 28,040 27,584
Lithuania (Republic of) 7.375% 2020 15,000 15,631
Lithuania (Republic of) 6.625% 20223 23,244 25,418
Oesterreichische Kontrollbank AG 1.75% 2020 17,435 17,290
Poland (Republic of) 6.375% 2019 2,825 2,865
Poland (Republic of) 3.00% 2023 10,000 9,999
Poland (Republic of) 4.00% 2024 9,215 9,580
Poland (Republic of) 3.25% 2026 945 945
Portuguese Republic 5.125% 2024 46,500 49,670
Qatar (State of) 3.875% 20233 23,475 24,074
Quebec (Province of) 2.375% 2022 18,999 18,816
Saudi Arabia (Kingdom of) 2.875% 20233 11,645 11,463
Saudi Arabia (Kingdom of) 2.875% 2023 9,800 9,647
Saudi Arabia (Kingdom of) 4.00% 20253 26,220 26,678
Saudi Arabia (Kingdom of) 4.00% 2025 9,800 9,971
Sweden (Kingdom of) 1.25% 20213 40,000 38,687
Sweden (Kingdom of) 2.375% 20233 12,135 12,019
Swedish Export Credit Corp. 1.75% 2020 11,000 10,876
United Mexican States 4.15% 2027 12,262 12,127
    900,215

 

Intermediate Bond Fund of America — Page 14 of 17

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments (continued)
Municipals 0.02%
Washington 0.02%
Principal amount
(000)
Value
(000)
Energy Northwest, Columbia Generating Station Electric Rev. Bonds, Series 2012-E, 2.197% 2019 $4,135 $4,130
Total municipals   4,130
Total bonds, notes & other debt instruments (cost: $17,505,605,000)   17,447,651
Preferred securities 0.01%
Financials 0.01%
Shares  
CoBank, ACB, Class E, noncumulative3 4,000 2,670
Total preferred securities (cost: $3,985,000)   2,670
Short-term securities 9.31% Principal amount
(000)
 
3M Co. 2.43% due 3/4/20193 $35,000 34,991
Bank of New York Co., Inc. 2.38% due 3/1/2019 71,000 70,995
Chevron Corp. 2.43% due 3/28/20193 60,000 59,888
Cisco Systems, Inc. 2.41% due 3/19/20193 40,000 39,949
Eli Lilly and Co. 2.41% due 3/12/20193 40,000 39,968
Emerson Electric Co. 2.42% due 3/18/20193 37,300 37,255
ExxonMobil Corp. 2.47% due 3/6/2019–3/19/2019 100,000 99,917
Federal Home Loan Bank 2.36%–2.40% due 3/6/2019–4/22/2019 519,500 518,725
IBM Credit LLC 2.45% due 3/21/20193 50,000 49,929
Kimberly-Clark Corp. 2.42% due 3/8/20193 50,000 49,973
Paccar Financial Corp. 2.42% due 3/20/2019 25,000 24,966
Total Capital SA 2.37% due 3/1/20193 50,000 49,997
U.S. Treasury Bills 2.33%–2.39% due 3/14/2019–5/9/2019 592,800 591,478
Wal-Mart Stores, Inc. 2.41% due 3/11/2019–3/15/20193 75,000 74,937
Total short-term securities (cost: $1,743,033,000)   1,742,968
Total investment securities 102.48% (cost: $19,252,623,000)   19,193,289
Other assets less liabilities (2.48)%   (464,510)
Net assets 100.00%   $18,728,779

Futures contracts


 

Contracts Type Number of
contracts
Expiration Notional
amount11
(000)
Value at
2/28/201912
(000)
Unrealized
appreciation
(depreciation)
at 2/28/2019
(000)
90 Day Euro Dollar Futures Long 1,307 December 2019 $326,750 $318,124 $2,006
2 Year U.S. Treasury Note Futures Long 24,246 July 2019 4,849,200 5,144,887 (2,595)
5 Year U.S. Treasury Note Futures Long 41,107 July 2019 4,110,700 4,709,321 (8,034)
10 Year U.S. Treasury Note Futures Long 4,159 June 2019 415,900 507,398 (1,672)
10 Year Ultra U.S. Treasury Note Futures Short 7,693 June 2019 (769,300) (995,883) 4,753
20 Year U.S. Treasury Bond Futures Short 37 June 2019 (3,700) (5,345) 34
30 Year Ultra U.S. Treasury Bond Futures Short 1,756 June 2019 (175,600) (280,247) 3,590
            $(1,918)

 

Intermediate Bond Fund of America — Page 15 of 17

 


 

 

unaudited

 

Swap contracts


Interest rate swaps

 

Receive Pay Expiration
date
Notional
(000)
Value at
2/28/2019
(000)
Upfront
payments/
receipts
(000)
Unrealized
appreciation
(depreciation)
at 2/28/2019
(000)
2.5045% U.S. EFFR 8/29/2020 $247,620 $506 $— $506
2.5215% U.S. EFFR 8/29/2020 181,380 416 416
3-month USD-LIBOR 2.806% 8/29/2020 76,300 (178) (178)
2.622% U.S. EFFR 9/14/2020 255,000 976 976
2.3995% U.S. EFFR 1/11/2021 171,830 96 96
2.4035% U.S. EFFR 1/11/2021 128,170 81 81
2.3755% U.S. EFFR 2/6/2021 456,000 107 107
3-month USD-LIBOR 2.8755% 7/3/2023 498,644 (6,534) (6,534)
U.S. EFFR 2.508% 7/3/2023 660,645 (6,662) (6,662)
U.S. EFFR 2.4435% 12/20/2023 33,045 (246) (246)
U.S. EFFR 2.45375% 12/20/2023 296,015 (2,346) (2,346)
U.S. EFFR 2.408% 2/8/2029 31,000 49 49
3-month USD-LIBOR 2.482% 7/3/2037 35,000 1,963 1,963
3-month USD-LIBOR 2.556% 11/3/2037 38,000 1,759 1,759
3-month USD-LIBOR 3.238% 8/8/2044 15,000 (998) (998)
3-month USD-LIBOR 2.7045% 1/2/2045 41,000 1,361 1,361
3-month USD-LIBOR 2.454% 1/15/2045 24,000 1,932 1,932
3-month USD-LIBOR 2.58245% 11/5/2045 120,000 6,905 6,905
3-month USD-LIBOR 2.6485% 11/16/2045 13,050 584 584
3-month USD-LIBOR 2.52822% 11/23/2045 17,800 1,209 1,209
3-month USD-LIBOR 2.59125% 12/16/2045 36,000 2,010 2,010
U.S. EFFR 2.166% 10/23/2047 20,000 1,678 1,678
U.S. EFFR 2.172% 11/8/2047 50,000 4,141 4,141
U.S. EFFR 2.145% 11/9/2047 61,400 5,425 5,425
U.S. EFFR 2.153% 11/10/2047 61,500 5,334 5,334
U.S. EFFR 2.155% 11/10/2047 34,550 2,982 2,982
U.S. EFFR 2.17% 11/13/2047 62,550 5,209 5,209
U.S. EFFR 2.5635% 2/12/2048 105,651 336 336
U.S. EFFR 2.4615% 3/15/2048 6,500 156 156
2.98% 3-month USD-LIBOR 3/15/2048 6,500 132 132
U.S. EFFR 2.485% 3/15/2048 6,500 125 125
2.9625% 3-month USD-LIBOR 3/15/2048 6,500 109 109
U.S. EFFR 2.425% 3/16/2048 13,000 409 409
2.917% 3-month USD-LIBOR 3/16/2048 13,000 98 98
U.S. EFFR 2.42875% 4/18/2048 32,000 978 978
          $— $30,102

 

Intermediate Bond Fund of America — Page 16 of 17

 


 

 

unaudited

 

Swap contracts  (continued)


Credit default swaps

Centrally cleared credit default swaps on credit indices — buy protection

 

Receive Pay/
Payment frequency
Expiration
date
Notional
(000)
Value at
2/28/2019
(000)
Upfront
payments
(000)
Unrealized
depreciation
at 2/28/2019
(000)
CDX.NA.IG.31 1.00%/Quarterly 12/20/2023 $650,000 $(11,575) $(9,920) $(1,655)

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

 

1 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $120,685,000, which represented .64% of the net assets of the fund.
2 Index-linked bond whose principal amount moves with a government price index.
3 Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) 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 $2,928,523,000, which represented 15.64% of the net assets of the fund.
4 Step bond; coupon rate may change at a later date.
5 Coupon rate may change periodically.
6 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $89,006,000, which represented .48% of the net assets of the fund.
7 Value determined using significant unobservable inputs.
8 Scheduled interest and/or principal payment was not received.
9 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
10 Purchased on a TBA basis.
11 Notional amount is calculated based on the number of contracts and notional contract size.
12 Value is calculated based on the notional amount and current market price.

 

Key to abbreviations and symbol
CLO = Collateralized Loan Obligations
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
Rev. = Revenue
TBA = To-be-announced
USD/$ = U.S. dollars

Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from 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 American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.

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.

© 2019 Capital Group. All rights reserved.

 

 

MFGEFPX-023-0419O-S66057 Intermediate Bond Fund of America — Page 17 of 17

  

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 second fiscal quarter of the 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.

 

  INTERMEDIATE BOND FUND OF AMERICA
   
  By __/s/ Kristine M. Nishiyama____________________
 

Kristine M. Nishiyama, Executive Vice President and

Principal Executive Officer

   
  Date: April 30, 2019

 

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, Executive Vice President and

Principal Executive Officer

 
Date: April 30, 2019

 

 

 

By ___/s/ Brian C. Janssen    __________

Brian C. Janssen, Treasurer and

Principal Financial Officer

 
Date: April 30, 2019