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: 811-02444
The 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: December 31
Date of reporting period: June 30, 2014
Courtney R. Taylor
The Bond Fund of America
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
Copies to:
Michael Glazer
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
The Bond Fund of America® Semi-annual report for the six months ended June 30, 2014 |
The Bond Fund of America seeks as high a level of current income as is consistent with preservation of capital through a diversified portfolio of bonds and other fixed-income obligations.
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 80 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 3.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. 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 June 30, 2014:
Class A shares | 1 year | 5 years | 10 years | |||||||||
Reflecting 3.75% maximum sales charge | 1.00 | % | 5.01 | % | 3.52 | % |
For other share class results, visit americanfunds.com and americanfundsretirement.com.
The total annual fund operating expense ratio was 0.61% for Class A shares as of the prospectus dated March 1, 2014.
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. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Investing in bonds issued outside the U.S. may be subject to additional risks. They include currency fluctuations, political and social instability, differing securities regulations and accounting standards, higher transaction costs, possible changes in taxation, illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Fellow investors:
Following a sharp rise in interest rates in 2013, bond yields reversed course during The Bond Fund of America’s current fiscal year. With the resulting increase in bond prices, the fund returned 4.25% for the six months ended June 30.
By way of comparison, the unmanaged Barclays U.S. Aggregate Index — a measure of the investment-grade (BBB/Baa and above) bond market — returned 3.93%. The fund’s peer group, as measured by the Lipper Core Bond Funds Average, returned 4.09%.
The fund’s dividend income complemented the rise in bond prices. During the period, the fund paid dividends totaling 14 cents a share. For investors, this amounted to an income return of 1.17% (2.34% annualized) with dividends reinvested, or 1.16% (2.32% annualized) if taken in cash.
Results at a glance
For periods ended June 30, 2014, with all distributions reinvested
Cumulative total return | Average annual total returns | |||||||||||||||||||
1 year | 3 years | 5 years | 10 years | Lifetime (since 5/28/74) | ||||||||||||||||
The Bond Fund of America (Class A shares) | 4.96 | % | 3.89 | % | 5.82 | % | 3.92 | % | 8.04 | % | ||||||||||
Barclays U.S. Aggregate Index* | 4.37 | 3.66 | 4.85 | 4.93 | 7.99 | |||||||||||||||
Lipper Core Bond Funds Average | 4.93 | 3.98 | 5.85 | 4.56 | 7.83 |
* | The Barclays U.S. Aggregate Index began on January 1, 1976. From May 28, 1974, through December 31, 1975, the Barclays U.S. Government/Credit Index was used. The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. |
The Bond Fund of America | 1 |
Bond market overview
During the first half of 2014,bond yields declined amid concerns about slowing U.S. growth. Severe winter weather hampered business transactions in many regions, resulting in lower-than-expected economic activity.
Yields fell further as rising tensions in Ukraine and the Middle East spurred demand for safe-haven assets. During the six-month period, the yield on the benchmark 10-year U.S. Treasury note dropped from 3.04% at the end of December to 2.53% at the end of June.
The downward pressure on rates came despite significant monetary policy changes at the Federal Reserve, including a sizable reduction in the central bank’s bond buying program, known as quantitative easing. Prompted by improving employment growth and generally benign inflation, the Fed cut its bond purchases from $85 billion a month in January to $35 billion a month by the end of June.
Inside the portfolio
The fund gradually moved into a more defensive position over the period. The fund’s managers sold corporate bonds and mortgage-backed securities as those investments rallied. They also reduced holdings of high-yield bonds and emerging markets debt amid increasingly high valuations. The fund’s shorter-than-index duration hurt results relative to the benchmark, but that was more than offset by the fund’s yield curve positioning among longer dated bonds.
Fund holdings in Treasury and agency bonds increased during the period, representing 38% of the portfolio at the end of June, compared to 34% at the start of the fiscal year. Mortgage-backed securities made up 26% of the portfolio, up from 23%, while corporate bonds were reduced from 32% to 29%.
The fund maintains relatively small holdings of high-yield bonds and emerging markets debt. Both sectors were positive contributors to returns, and both were trimmed significantly as spreads tightened. High-yield bonds and emerging markets debt accounted for 4.1% and 4.3% of the fund, respectively, at June 30.
2 | The Bond Fund of America |
Looking ahead
Managers believe U.S. economic growth is poised to accelerate in the next six months, and they expect inflation to gradually pick up as well. This combination likely will result in modestly higher interest rates throughout the year and into 2015, though there also may be stretches of economic uncertainty when bonds will rally. In addition, we expect higher market volatility at times as the Fed winds down its asset purchase program and ponders future short-term rate increases.
Investors often choose The Bond Fund of America to provide income, as well as a degree of capital preservation, when compared with other assets they may own. This is especially true as events such as college or retirement approach. We remain confident that the fund can continue to serve our investors well in this regard. While we expect interest rates to rise, we believe the increases will be gradual. In such an environment, bonds can lose value. However, when those bonds are sold or reach maturity, the proceeds can be reinvested in less expensive bonds at higher yields, providing higher income and contributing to total return.
We take a long-term, research-driven approach to investing, and we feel it is during challenging periods that we as fixed-income portfolio managers can be most effective. Thank you for your continued interest in The Bond Fund of America. We look forward to reporting to you again in six months.
Cordially,
John H. Smet
President
August 12, 2014
For current information about the fund, visit americanfunds.com.
The fund’s 30-day yield for Class A shares as of July 31, 2014, calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula, was 1.47%. The fund’s 12-month distribution rate for Class A shares as of that date was 2.28%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.
The Bond Fund of America | 3 |
Summary investment portfolio June 30, 2014 | unaudited |
Portfolio by type of security | Percent of net assets | |||
U.S. Treasury bonds & notes | 33.53 | % | ||
Corporate bonds & notes | 29.31 | |||
Mortgage-backed obligations | 25.58 | |||
Bonds & notes of governments & government agencies outside the U.S. | 4.68 | |||
Federal agency bonds & notes | 4.18 | |||
Other bonds & notes | 3.86 | |||
Other securities | 0.17 | |||
Short-term securities & other assets less liabilities | (1.31 | ) | ||
100.00 | % |
Portfolio quality summary* | Percent of net assets | |||
U.S. Treasury and agency† | 37.72 | % | ||
AAA/Aaa | 26.35 | |||
AA/Aa | 6.44 | |||
A/A | 12.42 | |||
BBB/Baa | 13.67 | |||
Below investment grade | 4.11 | |||
Unrated | 0.42 | |||
Other | 0.18 | |||
Short-term securities & other assets less liabilities | (1.31 | ) | ||
100.00 | % |
* | 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. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. Securities in the “unrated” category (above) have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with the fund’s investment policies. |
† | These securities are guaranteed by the full faith and credit of the United States government. |
4 | The Bond Fund of America |
Bonds, notes & other debt instruments 101.14% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U.S. Treasury bonds & notes 33.53% | ||||||||||||
U.S. Treasury 25.78% | ||||||||||||
U.S. Treasury: | ||||||||||||
1.00% 2016 | $ | 286,750 | $ | 289,534 | ||||||||
1.50% 20161 | 309,000 | 315,359 | ||||||||||
1.50% 2016 | 87,724 | 89,546 | ||||||||||
0.75% 2017 | 150,850 | 150,232 | ||||||||||
0.875% 2017 | 390,900 | 391,377 | ||||||||||
0.875% 2017 | 115,850 | 116,046 | ||||||||||
1.00% 2017 | 166,200 | 167,182 | ||||||||||
1.25% 2018 | 268,500 | 266,403 | ||||||||||
1.25% 2018 | 243,250 | 241,046 | ||||||||||
1.375% 2018 | 140,000 | 139,814 | ||||||||||
1.50% 2018 | 160,750 | 161,586 | ||||||||||
1.50% 2019 | 1,190,950 | 1,184,852 | ||||||||||
1.625% 2019 | 210,000 | 209,983 | ||||||||||
2.25% 2021 | 309,300 | 312,671 | 25.78 | % | ||||||||
2.25% 2021 | 138,250 | 139,621 | ||||||||||
2.50% 2023 | 292,290 | 293,901 | ||||||||||
2.75% 2023 | 217,800 | 223,134 | ||||||||||
2.50% 2024 | 119,502 | 119,269 | ||||||||||
2.75% 2024 | 204,800 | 209,345 | ||||||||||
6.875% 2025 | 77,500 | 109,732 | ||||||||||
2.875% 2043 | 151,745 | 138,364 | ||||||||||
3.625% 2043 | 98,350 | 103,653 | ||||||||||
3.75% 2043 | 93,355 | 100,589 | ||||||||||
3.375% 2044 | 89,825 | 90,227 | ||||||||||
3.625% 2044 | 261,472 | 275,309 | ||||||||||
0.25%–8.75% 2015–20421 | 1,130,013 | 1,177,775 | ||||||||||
7,016,550 | 25.78 | |||||||||||
U.S. Treasury inflation-protected securities2 7.75% | ||||||||||||
U.S. Treasury Inflation-Protected Security: | ||||||||||||
2.00% 2014 | 88,029 | 88,245 | ||||||||||
0.50% 2015 | 236,300 | 239,843 | ||||||||||
1.625% 2015 | 112,493 | 114,428 | ||||||||||
0.125% 2017 | 139,145 | 143,993 | ||||||||||
0.125% 2019 | 371,778 | 382,842 | 7.75 | |||||||||
0.625% 2024 | 414,241 | 429,159 | ||||||||||
0.75% 2042 | 97,038 | 91,176 | ||||||||||
1.375% 2044 | 197,380 | 216,656 | ||||||||||
0.125%–2.375% 2016–2043 | 392,601 | 402,417 | ||||||||||
2,108,759 | 7.75 | |||||||||||
Total U.S. Treasury bonds & notes | 9,125,309 | 33.53 |
The Bond Fund of America | 5 |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Corporate bonds & notes 29.31% | ||||||||||||
Financials 7.61% | ||||||||||||
Other securities | $ | 2,069,819 | 7.61 | % | ||||||||
Energy 4.03% | ||||||||||||
Other securities | 1,096,901 | 4.03 | ||||||||||
Health care 2.88% | ||||||||||||
Other securities | 783,619 | 2.88 | ||||||||||
Consumer discretionary 2.86% | ||||||||||||
Other securities | 779,316 | 2.86 | ||||||||||
Consumer staples 2.82% | ||||||||||||
Other securities | 767,585 | 2.82 | ||||||||||
Utilities 2.58% | ||||||||||||
Other securities | 703,088 | 2.58 | ||||||||||
Industrials 2.45% | ||||||||||||
Other securities | 667,143 | 2.45 | ||||||||||
Telecommunication services 2.25% | ||||||||||||
Verizon Communications Inc. 6.55% 2043 | $ | 76,552 | 96,530 | .35 | ||||||||
Other securities | 516,592 | 1.90 | ||||||||||
613,122 | 2.25 | |||||||||||
Materials 1.09% | ||||||||||||
Other securities | 296,327 | 1.09 | ||||||||||
Information technology 0.74% | ||||||||||||
Other securities | 201,324 | .74 | ||||||||||
Total corporate bonds & notes | 7,978,244 | 29.31 |
6 | The Bond Fund of America |
Principal amount | Value | Percent of | ||||||||||
(000) | (000) | net assets | ||||||||||
Mortgage-backed obligations 25.58% | ||||||||||||
Federal agency mortgage-backed obligations3 20.57% | ||||||||||||
Fannie Mae: | ||||||||||||
3.00% 20444 | $ | 145,525 | $ | 143,661 | ||||||||
3.50% 20444 | 488,931 | 502,911 | ||||||||||
4.00% 20444 | 939,650 | 996,616 | ||||||||||
4.50% 20444 | 1,299,105 | 1,406,459 | 17.01 | % | ||||||||
4.50% 20444 | 443,540 | 479,101 | ||||||||||
0%–11.046% 2017–20474,5 | 1,042,027 | 1,100,265 | ||||||||||
Freddie Mac 0%–7.50% 2019–20474,5 | 488,946 | 530,104 | 1.95 | |||||||||
Government National Mortgage Assn.: | ||||||||||||
4.00% 2043 | 264,081 | 282,885 | ||||||||||
2.50%–10.00% 2021–2043 | 136,776 | 149,300 | 1.59 | |||||||||
Other securities | 6,253 | .02 | ||||||||||
5,597,555 | 20.57 | |||||||||||
Collateralized mortgage-backed obligations (privately originated)3 0.23% | ||||||||||||
Freddie Mac 1.002%–3.552% 2023–20245 | 24,109 | 24,618 | .09 | |||||||||
Other securities | 38,255 | .14 | ||||||||||
62,873 | .23 | |||||||||||
Other mortgage-backed securities 4.78% | ||||||||||||
Other securities | 1,300,453 | 4.78 | ||||||||||
Total mortgage-backed obligations | 6,960,881 | 25.58 | ||||||||||
Federal agency bonds & notes 4.18% | ||||||||||||
Freddie Mac 0.50%–5.00% 2014–20243,5 | 474,669 | 481,786 | 1.77 | |||||||||
Fannie Mae: | ||||||||||||
0.50% 2016 | 117,100 | 117,168 | ||||||||||
0.478%–7.125% 2015–20303,5 | 98,450 | 103,983 | .81 | |||||||||
Federal Home Loan Bank 0.375%–5.50% 2016–2036 | 110,150 | 112,478 | .42 | |||||||||
Federal Farm Credit Banks 0.204%–1.625% 2014–20175 | 81,451 | 81,645 | .30 | |||||||||
Other securities | 239,544 | .88 | ||||||||||
1,136,604 | 4.18 | |||||||||||
Other bonds & notes 8.54% | ||||||||||||
Other securities | 2,325,337 | 8.54 | ||||||||||
Total bonds, notes & other debt instruments (cost: $26,673,111,000) | 27,526,375 | 101.14 | ||||||||||
Convertible securities 0.06% | ||||||||||||
Industrials 0.06% | ||||||||||||
Other securities | 17,803 | .06 | ||||||||||
Total convertible securities (cost: $13,570,000) | 17,803 | .06 |
The Bond Fund of America | 7 |
Preferred securities 0.02% | Value (000) | Percent of net assets | ||||||||||
U. S. government agency securities 0.02% | ||||||||||||
Other securities | $ | 4,281 | .02 | % | ||||||||
Total preferred securities (cost: $5,820,000) | 4,281 | .02 | ||||||||||
Common stocks 0.09% | ||||||||||||
Other 0.09% | ||||||||||||
Other securities | 24,785 | .09 | ||||||||||
Total common stocks (cost: $80,571,000) | 24,785 | .09 | ||||||||||
Rights & warrants 0.00% | ||||||||||||
Energy 0.00% | ||||||||||||
Other securities | 8 | .00 | ||||||||||
Total rights & warrants (cost: $671,000) | 8 | .00 | ||||||||||
Short-term securities 13.18% | Principal amount (000) | |||||||||||
Freddie Mac 0.06%–0.16% due 10/17/2014–6/16/2015 | $ | 1,145,900 | 1,145,258 | 4.21 | ||||||||
Federal Home Loan Bank 0.045%–0.15% due 7/2/2014–3/23/2015 | 961,352 | 961,202 | 3.53 | |||||||||
Fannie Mae 0.05%–0.13% due 7/23/2014–1/5/2015 | 327,700 | 327,617 | 1.20 | |||||||||
Federal Farm Credit Banks 0.10%–0.14% due 7/16/2014–3/30/2015 | 297,500 | 297,344 | 1.09 | |||||||||
Coca–Cola Co. 0.11%–0.14% due 7/23/2014–11/12/20146 | 161,900 | 161,856 | .60 | |||||||||
Procter & Gamble Co. 0.08%–0.09% due 7/7/2014–8/11/20146 | 139,900 | 139,896 | .51 | |||||||||
Jupiter Securitization Co., LLC 0.28% due 11/4/20146 | 100,000 | 99,931 | ||||||||||
Chariot Funding, LLC 0.21% due 12/12/20146 | 25,000 | 24,978 | .46 | |||||||||
Chevron Corp. 0.07% due 7/9/2014–7/10/20146 | 109,400 | 109,398 | .40 | |||||||||
Abbott Laboratories 0.10% due 8/11/2014–9/3/20146 | 77,800 | 77,792 | .29 | |||||||||
Other securities | 242,027 | .89 | ||||||||||
Total short-term securities (cost: $3,587,048,000) | 3,587,299 | 13.18 | ||||||||||
Total investment securities (cost: $30,360,791,000) | 31,160,551 | 114.49 | ||||||||||
Other assets less liabilities | (3,944,531 | ) | (14.49 | ) | ||||||||
Net assets | $ | 27,216,020 | 100.00 | % |
8 | The Bond Fund of America |
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, including 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 $112,656,000, which represented .41% of the net assets of the fund. Some of these securities (with an aggregate value of $7,044,000, an aggregate cost of $34,606,000, and which represented .03% of the net assets of the fund) were acquired from 9/17/2009 to 10/25/2012 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $157,554,000, which represented .58% of the net assets of the fund.
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $316,876,000 over the prior 12-month period.
Contract amount | Unrealized (depreciation) appreciation | |||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 6/30/2014 (000) | ||||||||
Sales: | ||||||||||||
Australian dollars | 7/3/2014 | Bank of America, N.A. | $9,190 | A$10,000 | $(237 | ) | ||||||
Brazilian reais | 7/28/2014 | Citibank | $8,511 | BRL18,970 | — | |||||||
British pounds | 7/14/2014 | Bank of America, N.A. | $13,400 | £8,000 | (290 | ) | ||||||
British pounds | 7/31/2014 | UBS AG | $5,726 | £3,365 | (31 | ) | ||||||
British pounds | 8/14/2014 | Citibank | $3,666 | £2,175 | (55 | ) | ||||||
Chilean pesos | 8/1/2014 | Citibank | $4,635 | CLP2,558,250 | 26 | |||||||
Euros | 7/9/2014 | JPMorgan Chase | $16,931 | €12,418 | (74 | ) | ||||||
Euros | 7/15/2014 | HSBC Bank | $24,480 | €18,000 | (160 | ) | ||||||
Euros | 7/30/2014 | Citibank | $5,446 | €4,000 | (31 | ) | ||||||
Euros | 9/12/2014 | Bank of America, N.A. | $19,926 | €14,717 | (232 | ) | ||||||
Japanese yen | 7/30/2014 | Citibank | $28,239 | ¥2,870,000 | (98 | ) | ||||||
Mexican pesos | 7/14/2014 | Barclays Bank PLC | $20,779 | MXN267,995 | 144 | |||||||
Philippine pesos | 7/18/2014 | Barclays Bank PLC | $11,446 | PHP501,900 | (48 | ) | ||||||
South African rand | 7/17/2014 | Bank of America, N.A. | $6,976 | ZAR75,000 | (54 | ) | ||||||
Swedish kronor | 7/11/2014 | UBS AG | NKr98,928 | SKr108,000 | (40 | ) | ||||||
Turkish lira | 7/11/2014 | Citibank | $7,235 | TRY15,160 | 96 | |||||||
$(1,084 | ) |
The Bond Fund of America | 9 |
Interest rate swaps
The fund has entered into interest rate swap contracts as shown in the following table. The average notional amount of interest rate swaps was $878,213,000 over the prior 12-month period.
Pay/receive floating rate | Floating rate index | Fixed rate | Expiration date | Notional amount (000) | Unrealized appreciation (depreciation) at 6/30/2014 (000) | ||||||||||
Pay | 3-month USD-LIBOR | 0.492 | % | 1/14/2016 | $ | 100,000 | $ | 113 | |||||||
Pay | 3-month USD-LIBOR | 0.4945 | 5/22/2016 | 10,000 | (8 | ) | |||||||||
Receive | 3-month USD-LIBOR | 1.04 | 4/4/2017 | 220,000 | (906 | ) | |||||||||
Pay | 3-month USD-LIBOR | 1.0635 | 6/20/2017 | 2,000 | 5 | ||||||||||
Receive | 3-month USD-LIBOR | 1.322 | 1/14/2018 | 60,000 | (232 | ) | |||||||||
Receive | 3-month USD-LIBOR | 1.461 | 4/23/2018 | 70,000 | (394 | ) | |||||||||
Receive | 3-month USD-LIBOR | 1.314 | 5/20/2018 | 90,000 | 86 | ||||||||||
Receive | 3-month USD-LIBOR | 1.619 | 3/17/2019 | 30,000 | (11 | ) | |||||||||
Receive | 3-month USD-LIBOR | 1.823 | 3/24/2019 | 150,000 | (1,425 | ) | |||||||||
Receive | 3-month USD-LIBOR | 1.7525 | 4/22/2019 | 100,000 | (523 | ) | |||||||||
Pay | 3-month USD-LIBOR | 1.71 | 6/9/2019 | 120,000 | 173 | ||||||||||
Pay | 3-month USD-LIBOR | 1.789 | 6/20/2019 | 202,700 | 993 | ||||||||||
Pay | 3-month USD-LIBOR | 1.7945 | 6/20/2019 | 126,700 | 655 | ||||||||||
Pay | 3-month USD-LIBOR | 1.7905 | 6/20/2019 | 50,600 | 251 | ||||||||||
Receive | 3-month USD-LIBOR | 2.437 | 12/30/2020 | 6,000 | (137 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.279 | 3/14/2021 | 20,000 | (212 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.30773 | 4/10/2021 | 76,925 | (886 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.251 | 6/6/2021 | 270,000 | (1,620 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.9525 | 1/21/2024 | 30,000 | (1,000 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.942 | 1/24/2024 | 15,000 | (490 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.815 | 3/17/2024 | 9,000 | (182 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.896 | 3/24/2024 | 8,000 | (218 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.82125 | 4/11/2024 | 97,000 | (1,960 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.736 | 4/17/2024 | 20,000 | (249 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.633 | 5/23/2024 | 9,330 | (21 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.701 | 6/9/2024 | 65,000 | (511 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.7395 | 6/11/2024 | 105,000 | (1,190 | ) | |||||||||
Pay | 3-month USD-LIBOR | 2.6935 | 6/18/2024 | 20,000 | 140 | ||||||||||
Receive | 3-month USD-LIBOR | 2.7455 | 6/19/2024 | 72,000 | (840 | ) | |||||||||
Receive | 3-month USD-LIBOR | 2.661 | 6/27/2024 | 12,000 | (45 | ) | |||||||||
Pay | 3-month USD-LIBOR | 3.4275 | 4/11/2034 | 92,000 | 3,290 | ||||||||||
Pay | 3-month USD-LIBOR | 3.76 | 1/21/2044 | 15,000 | 1,314 | ||||||||||
Receive | 3-month USD-LIBOR | 3.772 | 1/21/2044 | 11,500 | (1,037 | ) | |||||||||
Pay | 3-month USD-LIBOR | 3.636 | 3/24/2044 | 40,000 | 2,526 | ||||||||||
Receive | 3-month USD-LIBOR | 3.635 | 3/24/2044 | 17,000 | (1,070 | ) | |||||||||
Receive | 3-month USD-LIBOR | 3.523 | 3/28/2044 | 5,000 | (205 | ) | |||||||||
Pay | 3-month USD-LIBOR | 3.5475 | 4/11/2044 | 20,000 | 914 | ||||||||||
Pay | 3-month USD-LIBOR | 3.51 | 4/23/2044 | 15,000 | 574 | ||||||||||
Receive | 3-month USD-LIBOR | 3.3535 | 6/27/2044 | 14,000 | (98 | ) | |||||||||
Receive | 3-month USD-LIBOR | 3.34 | 6/27/2044 | 70,000 | (299 | ) | |||||||||
$ | (4,735 | ) |
10 | The Bond Fund of America |
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 | A portion of this security or a security in this range was pledged as collateral. The total value of pledged collateral was $32,310,000, which represented .12% 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 | A portion or all of this security 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 $3,612,606,000, which represented 13.27% of the net assets of the fund. |
Key to abbreviations and symbols
TBA = To be announced
A$ = Australian dollars
BRL = Brazilian reais
CLP = Chilean pesos
€ = Euros
£ = British pounds
¥ = Japanese yen
MXN = Mexican pesos
NKr = Norwegian kroner
PHP = Philippine pesos
SKr = Swedish kronor
TRY = Turkish lira
ZAR = South African rand
See Notes to Financial Statements
The Bond Fund of America | 11 |
Financial statements | ||||||||
Statement of assets and liabilities | unaudited | |||||||
at June 30, 2014 | (dollars in thousands) | |||||||
Assets: | ||||||||
Investment securities, at value (cost: $30,360,791) | $ | 31,160,551 | ||||||
Cash | 1,338 | |||||||
Unrealized appreciation on open forward currency contracts | 266 | |||||||
Receivables for: | ||||||||
Sales of investments | $ | 2,190,518 | ||||||
Sales of fund’s shares | 30,467 | |||||||
Closed forward currency contracts | 178 | |||||||
Dividends and interest | 170,318 | 2,391,481 | ||||||
33,553,636 | ||||||||
Liabilities: | ||||||||
Unrealized depreciation on open forward currency contracts | 1,350 | |||||||
Payables for: | ||||||||
Purchases of investments | 6,269,000 | |||||||
Repurchases of fund’s shares | 43,494 | |||||||
Dividends on fund’s shares | 2,265 | |||||||
Closed forward currency contracts | 181 | |||||||
Investment advisory services | 4,440 | |||||||
Services provided by related parties | 11,740 | |||||||
Trustees’ deferred compensation | 739 | |||||||
Variation margin on interest rate swaps | 3,351 | |||||||
Other | 1,056 | 6,336,266 | ||||||
Net assets at June 30, 2014 | $ | 27,216,020 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 28,509,582 | ||||||
Undistributed net investment income | 16,786 | |||||||
Accumulated net realized loss | (2,104,417 | ) | ||||||
Net unrealized appreciation | 794,069 | |||||||
Net assets at June 30, 2014 | $ | 27,216,020 |
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (2,129,400 total shares outstanding)
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 18,707,187 | 1,463,663 | $ | 12.78 | |||||||
Class B | 206,723 | 16,174 | 12.78 | |||||||||
Class C | 1,567,050 | 122,607 | 12.78 | |||||||||
Class F-1 | 806,438 | 63,096 | 12.78 | |||||||||
Class F-2 | 702,672 | 54,978 | 12.78 | |||||||||
Class 529-A | 961,789 | 75,251 | 12.78 | |||||||||
Class 529-B | 19,167 | 1,500 | 12.78 | |||||||||
Class 529-C | 387,484 | 30,317 | 12.78 | |||||||||
Class 529-E | 51,851 | 4,057 | 12.78 | |||||||||
Class 529-F-1 | 64,190 | 5,022 | 12.78 | |||||||||
Class R-1 | 58,212 | 4,554 | 12.78 | |||||||||
Class R-2 | 626,321 | 49,004 | 12.78 | |||||||||
Class R-3 | 742,159 | 58,067 | 12.78 | |||||||||
Class R-4 | 485,109 | 37,955 | 12.78 | |||||||||
Class R-5 | 207,383 | 16,226 | 12.78 | |||||||||
Class R-6 | 1,622,285 | 126,929 | 12.78 |
See Notes to Financial Statements
12 | The Bond Fund of America |
Statement of operations for the six months ended June 30, 2014 | unaudited (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Interest (net of non-U.S. taxes of $190) | $ | 404,423 | ||||||
Dividends | 336 | $ | 404,759 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 26,966 | |||||||
Distribution services | 41,079 | |||||||
Transfer agent services | 20,083 | |||||||
Administrative services | 2,927 | |||||||
Reports to shareholders | 916 | |||||||
Registration statement and prospectus | 376 | |||||||
Trustees’ compensation | 148 | |||||||
Auditing and legal | 32 | |||||||
Custodian | 131 | |||||||
Other | 904 | 93,562 | ||||||
Net investment income | 311,197 | |||||||
Net realized gain and unrealized appreciation on investments, forward currency contracts, interest rate swaps and currency: | ||||||||
Net realized gain (loss) on: | ||||||||
Investments (net of non-U.S. taxes of $12) | 266,780 | |||||||
Forward currency contracts | (6,023 | ) | ||||||
Interest rate swaps | (5,584 | ) | ||||||
Currency transactions | (852 | ) | 254,321 | |||||
Net unrealized appreciation (depreciation) on: | ||||||||
Investments | 550,118 | |||||||
Forward currency contracts | 1,840 | |||||||
Interest rate swaps | (4,806 | ) | ||||||
Currency translations | 72 | 547,224 | ||||||
Net realized gain and unrealized appreciation on investments, forward currency contracts, interest rate swaps and currency | 801,545 | |||||||
Net increase in net assets resulting from operations | $ | 1,112,742 |
*Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
The Bond Fund of America | 13 |
Statements of changes in net assets
(dollars in thousands)
Six months ended June 30, 2014* | Year ended December 31, 2013 | |||||||
Operations: | ||||||||
Net investment income | $ | 311,197 | $ | 615,380 | ||||
Net realized gain on investments, forward currency contracts, interest rate swaps and currency transactions | 254,321 | 5,182 | ||||||
Net unrealized appreciation (depreciation) on investments, forward currency contracts, interest rate swaps and currency translations | 547,224 | (1,291,536 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 1,112,742 | (670,974 | ) | |||||
Dividends paid or accrued to shareholders from net investment income | (299,629 | ) | (680,633 | ) | ||||
Net capital share transactions | (608,797 | ) | (5,620,774 | ) | ||||
Total increase (decrease) in net assets | 204,316 | (6,972,381 | ) | |||||
Net assets: | ||||||||
Beginning of period | 27,011,704 | 33,984,085 | ||||||
End of period (including undistributed net investment income: $16,786 and $5,218, respectively) | $ | 27,216,020 | $ | 27,011,704 |
*Unaudited.
See Notes to Financial Statements
14 | The Bond Fund of America |
Notes to financial statements | unaudited |
1. Organization
The 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 as high a level of current income as is consistent with preservation of capital through a diversified portfolio of bonds and other fixed-income obligations.
The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature | |||
Classes A and 529-A | Up to 3.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None | |||
Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years | |||
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 | None | |||
Class 529-E | None | None | None | |||
Classes F-1, F-2 and 529-F-1 | None | None | None | |||
Classes R-1, R-2, R-3, R-4, R-5 and R-6 | None | None | None |
*Class B and 529-B shares of the fund are not available for purchase.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. 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, administrative and shareholder 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.
The Bond Fund of America | 15 |
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. 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, administrative and shareholder services, are charged directly to the respective share class.
Dividends and distributions to shareholders — Dividends to shareholders are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Distributions to shareholders are recorded on the ex-dividend date.
Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in the fund’s statement of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
16 | The Bond Fund of America |
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 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 |
The Bond Fund of America | 17 |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be 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.
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. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate 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.
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. 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
18 | The Bond Fund of America |
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 with supplemental information to support the changes. 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. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of June 30, 2014 (dollars in thousands):
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | $ | — | $ | 9,125,309 | $ | — | $ | 9,125,309 | ||||||||
Corporate bonds & notes | — | 7,973,176 | 5,068 | 7,978,244 | ||||||||||||
Mortgage-backed obligations | — | 6,960,881 | — | 6,960,881 | ||||||||||||
Federal agency bonds & notes | — | 1,136,604 | — | 1,136,604 | ||||||||||||
Other bonds & notes | — | 2,308,412 | 16,925 | 2,325,337 | ||||||||||||
Convertible securities | — | 17,803 | — | 17,803 | ||||||||||||
Preferred securities | — | 4,281 | — | 4,281 | ||||||||||||
Common stocks | — | 14,005 | 10,780 | 24,785 | ||||||||||||
Rights & warrants | — | — | 8 | 8 | ||||||||||||
Short-term securities | — | 3,587,299 | — | 3,587,299 | ||||||||||||
Total | $ | — | $ | 31,127,770 | $ | 32,781 | $ | 31,160,551 |
The Bond Fund of America | 19 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 266 | $ | — | $ | 266 | ||||||||
Unrealized appreciation on interest rate swaps | — | 11,034 | — | 11,034 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (1,350 | ) | — | (1,350 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (15,769 | ) | — | (15,769 | ) | ||||||||||
Total | $ | — | $ | (5,819 | ) | $ | — | $ | (5,819 | ) |
*Forward currency contracts and interest rate swaps are not included in the investment portfolio.
4. Risk factors
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers of securities held by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.
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 higher rates of interest 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
20 | The Bond Fund of America |
adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.
Investing in pass-through securities — Pass-through securities are debt obligations backed by a pool of assets, such as mortgages. In addition to the risks associated with investing in debt securities generally, pass-through securities are subject to 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 pass-through 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.
Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of adverse political, social, economic or market developments in the countries or regions in which the issuers operate. 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. 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 may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
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.
The Bond Fund of America | 21 |
5. Certain investment techniques
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, which may increase the fund’s portfolio turnover rate.
Loan transactions — The fund has entered into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder’s portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan’s interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.
Forward currency contracts — The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the fund’s investment adviser values forward currency contracts and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency.
Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.
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 a payment that floats relative to a benchmark or vice versa. The fund’s investment adviser uses interest rate swaps 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.
22 | The Bond Fund of America |
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 following tables present the financial statement impacts resulting from the fund’s use of forward currency contracts and interest rate swaps as of June 30, 2014 (dollars in thousands):
Asset | Liability | |||||||||||
Contract | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | ||||||||
Forward currency | Unrealized appreciation on open forward currency contracts | $ | 266 | Unrealized depreciation on open forward currency contracts | $ | 1,350 | ||||||
Forward currency | Receivables for closed forward currency contracts | 178 | Payables for closed forward currency contracts | 181 | ||||||||
Interest rate swaps | Variation margin on interest rate swaps | — | Variation margin on interest rate swaps | 3,351 | ||||||||
$ | 444 | $ | 4,882 |
Net realized loss | Net unrealized appreciation (depreciation) | |||||||||||
Contract | Location on statement of operations | Value | Location on statement of operations | Value | ||||||||
Forward currency | Net realized loss on forward currency contracts | $ | (6,023 | ) | Net unrealized appreciation on forward currency contracts | $ | 1,840 | |||||
Interest rate swaps | Net realized loss on interest rate swaps | (5,584 | ) | Net unrealized depreciation on interest rate swaps | (4,806 | ) | ||||||
$ | (11,607 | ) | $ | (2,966 | ) |
The Bond Fund of America | 23 |
Collateral — The fund participates in a collateral program due to its use of forward currency contracts and interest rate swaps. For forward currency contracts, the program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. For interest rate swaps, the program calls for the fund to pledge collateral for initial and variation margin by contract. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligations.
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 June 30, 2014, 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 interest or penalties.
The fund is not subject to examination by U.S. federal tax authorities for tax years before 2010 and by state tax authorities and tax authorities outside the U.S. for tax years before 2009.
Non-U.S. taxation — Interest income is recorded net of non-U.S. taxes paid.
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 currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; paydowns on fixed-income securities; 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 December 31, 2013, the components of distributable earnings on a tax basis were as follows (dollars in thousands):
Undistributed ordinary income | $ | 14,265 | ||
Capital loss carryforward expiring 2017* | (2,232,472 | ) | ||
Post-October capital loss deferral† | (34,263 | ) |
* | The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
† | This deferral is considered incurred in the subsequent year. |
24 | The Bond Fund of America |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 31, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
As of June 30, 2014, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
Gross unrealized appreciation on investment securities | $ | 873,134 | ||
Gross unrealized depreciation on investment securities | (110,640 | ) | ||
Net unrealized appreciation on investment securities | 762,494 | |||
Cost of investment securities | 30,398,057 |
Tax-basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands):
Share class | Six months ended June 30, 2014 | Year ended December 31, 2013 | ||||||
Class A | $ | 214,557 | $ | 499,382 | ||||
Class B | 1,768 | 5,259 | ||||||
Class C | 12,048 | 30,981 | ||||||
Class F-1 | 10,912 | 28,234 | ||||||
Class F-2 | 6,572 | 11,145 | ||||||
Class 529-A | 10,422 | 23,025 | ||||||
Class 529-B | 148 | 439 | ||||||
Class 529-C | 2,737 | 6,374 | ||||||
Class 529-E | 508 | 1,141 | ||||||
Class 529-F-1 | 757 | 1,662 | ||||||
Class R-1 | 446 | 1,050 | ||||||
Class R-2 | 4,739 | 11,420 | ||||||
Class R-3 | 7,309 | 17,155 | ||||||
Class R-4 | 5,597 | 12,573 | ||||||
Class R-5 | 2,914 | 7,761 | ||||||
Class R-6 | 18,195 | 23,032 | ||||||
Total | $ | 299,629 | $ | 680,633 |
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
The Bond Fund of America | 25 |
based on a series of decreasing annual rates beginning with 0.300% on the first $60 million of daily net assets and decreasing to 0.110% on such assets in excess of $36 billion. The agreement also provides for monthly fees, accrued daily, based on a series of decreasing rates beginning with 2.25% on the first $8,333,333 of the fund’s monthly gross income and decreasing to 1.75% on such income in excess of $41,666,667. For the six months ended June 30, 2014, the investment advisory services fee was $26,966,000, which was equivalent to an annualized rate of 0.201% 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, 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 0.25% 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.
For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of June 30, 2014, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
Share class | Currently approved limits | Plan limits | ||||||||
Class A | 0.25 | % | 0.25 | % | ||||||
Class 529-A | 0.25 | 0.50 | ||||||||
Classes B and 529-B | 1.00 | 1.00 | ||||||||
Classes C, 529-C and R-1 | 1.00 | 1.00 | ||||||||
Class R-2 | 0.75 | 1.00 | ||||||||
Classes 529-E and R-3 | 0.50 | 0.75 | ||||||||
Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
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
26 | The Bond Fund of America |
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, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, 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 Commonwealth of Virginia for the maintenance of the 529 college savings plan. During the period January 1, 2014, to March 31, 2014, the quarterly fee was based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. Effective April 1, 2014, the quarterly fee was amended to provide for reduced annual rates of 0.07%, 0.06% and 0.05% over $30 billion, $50 billion and $70 billion, respectively, of the net assets invested in Class 529 shares of the American Funds. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 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. The Commonwealth of Virginia is not considered a related party to the fund.
For the six months ended June 30, 2014, class-specific expenses under the agreements were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | ||||||||||
Class A | $22,575 | $14,755 | $929 | Not applicable | ||||||||||
Class B | 1,134 | 188 | Not applicable | Not applicable | ||||||||||
Class C | 7,975 | 1,256 | 400 | Not applicable | ||||||||||
Class F-1 | 1,175 | 494 | 235 | Not applicable | ||||||||||
Class F-2 | Not applicable | 232 | 128 | Not applicable | ||||||||||
Class 529-A | 1,087 | 612 | 235 | $440 | ||||||||||
Class 529-B | 103 | 16 | 5 | 9 | ||||||||||
Class 529-C | 1,884 | 260 | 95 | 178 | ||||||||||
Class 529-E | 127 | 21 | 13 | 24 | ||||||||||
Class 529-F-1 | — | 40 | 16 | 29 | ||||||||||
Class R-1 | 285 | 34 | 14 | Not applicable | ||||||||||
Class R-2 | 2,312 | 1,230 | 156 | Not applicable | ||||||||||
Class R-3 | 1,826 | 645 | 184 | Not applicable | ||||||||||
Class R-4 | 596 | 241 | 120 | Not applicable | ||||||||||
Class R-5 | Not applicable | 56 | 56 | Not applicable | ||||||||||
Class R-6 | Not applicable | 3 | 341 | Not applicable | ||||||||||
Total class-specific expenses | $41,079 | $20,083 | $2,927 | $680 |
The Bond Fund of America | 27 |
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 $148,000 in the fund’s statement of operations includes $100,000 in current fees (either paid in cash or deferred) and a net increase of $48,000 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.
8. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Sales* | Reinvestments of dividends | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,036,044 | 82,079 | $ | 206,423 | 16,305 | $ | (1,994,068 | ) | (158,191 | ) | $ | (751,601 | ) | (59,807 | ) | ||||||||||||||||
Class B | 2,521 | 200 | 1,708 | 135 | (61,247 | ) | (4,860 | ) | (57,018 | ) | (4,525 | ) | ||||||||||||||||||||
Class C | 87,636 | 6,942 | 11,411 | 902 | (260,357 | ) | (20,659 | ) | (161,310 | ) | (12,815 | ) | ||||||||||||||||||||
Class F-1 | 131,946 | 10,468 | 10,645 | 841 | (325,946 | ) | (25,666 | ) | (183,355 | ) | (14,357 | ) | ||||||||||||||||||||
Class F-2 | 300,941 | 23,674 | 6,072 | 479 | (86,071 | ) | (6,831 | ) | 220,942 | 17,322 | ||||||||||||||||||||||
Class 529-A | 57,463 | 4,555 | 10,375 | 819 | (81,425 | ) | (6,467 | ) | (13,587 | ) | (1,093 | ) | ||||||||||||||||||||
Class 529-B | 490 | 39 | 147 | 12 | (5,580 | ) | (443 | ) | (4,943 | ) | (392 | ) | ||||||||||||||||||||
Class 529-C | 25,465 | 2,018 | 2,722 | 215 | (40,015 | ) | (3,179 | ) | (11,828 | ) | (946 | ) | ||||||||||||||||||||
Class 529-E | 3,092 | 245 | 505 | 40 | (4,777 | ) | (379 | ) | (1,180 | ) | (94 | ) | ||||||||||||||||||||
Class 529-F-1 | 6,410 | 508 | 752 | 59 | (6,773 | ) | (538 | ) | 389 | 29 | ||||||||||||||||||||||
Class R-1 | 5,745 | 455 | 443 | 35 | (8,101 | ) | (643 | ) | (1,913 | ) | (153 | ) | ||||||||||||||||||||
Class R-2 | 67,502 | 5,352 | 4,689 | 370 | (101,020 | ) | (8,019 | ) | (28,829 | ) | (2,297 | ) | ||||||||||||||||||||
Class R-3 | 92,297 | 7,318 | 7,226 | 571 | (127,894 | ) | (10,151 | ) | (28,371 | ) | (2,262 | ) | ||||||||||||||||||||
Class R-4 | 66,604 | 5,290 | 5,573 | 440 | (86,158 | ) | (6,833 | ) | (13,981 | ) | (1,103 | ) | ||||||||||||||||||||
Class R-5 | 28,638 | 2,272 | 2,835 | 224 | (56,900 | ) | (4,495 | ) | (25,427 | ) | (1,999 | ) | ||||||||||||||||||||
Class R-6 | 469,749 | 37,261 | 18,200 | 1,437 | (34,734 | ) | (2,756 | ) | 453,215 | 35,942 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 2,382,543 | 188,676 | $289,726 | 22,884 | $ | (3,281,066 | ) | (260,110 | ) | $ | (608,797 | ) | (48,550 | ) | |||||||||||||||||
28 | The Bond Fund of America |
Sales* | Reinvestments of dividends | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class A | $ | 2,123,545 | 167,068 | $ | 479,812 | 37,976 | $ | (6,896,608 | ) | (545,969 | ) | $ | (4,293,251 | ) | (340,925 | ) | ||||||||||||||||
Class B | 8,606 | 674 | 5,091 | 403 | (182,890 | ) | (14,441 | ) | (169,193 | ) | (13,364 | ) | ||||||||||||||||||||
Class C | 201,014 | 15,797 | 29,413 | 2,329 | (859,829 | ) | (68,051 | ) | (629,402 | ) | (49,925 | ) | ||||||||||||||||||||
Class F-1 | 301,246 | 23,782 | 27,658 | 2,188 | (766,949 | ) | (60,666 | ) | (438,045 | ) | (34,696 | ) | ||||||||||||||||||||
Class F-2 | 269,984 | 21,393 | 10,145 | 803 | (275,888 | ) | (21,855 | ) | 4,241 | 341 | ||||||||||||||||||||||
Class 529-A | 131,181 | 10,341 | 22,886 | 1,812 | (262,387 | ) | (20,815 | ) | (108,320 | ) | (8,662 | ) | ||||||||||||||||||||
Class 529-B | 1,521 | 120 | 435 | 34 | (16,271 | ) | (1,286 | ) | (14,315 | ) | (1,132 | ) | ||||||||||||||||||||
Class 529-C | 59,239 | 4,669 | 6,326 | 501 | (135,037 | ) | (10,712 | ) | (69,472 | ) | (5,542 | ) | ||||||||||||||||||||
Class 529-E | 7,237 | 571 | 1,133 | 89 | (14,979 | ) | (1,189 | ) | (6,609 | ) | (529 | ) | ||||||||||||||||||||
Class 529-F-1 | 17,884 | 1,413 | 1,646 | 130 | (27,235 | ) | (2,158 | ) | (7,705 | ) | (615 | ) | ||||||||||||||||||||
Class R-1 | 12,250 | 966 | 1,042 | 82 | (32,534 | ) | (2,565 | ) | (19,242 | ) | (1,517 | ) | ||||||||||||||||||||
Class R-2 | 161,855 | 12,746 | 11,290 | 894 | (312,518 | ) | (24,686 | ) | (139,373 | ) | (11,046 | ) | ||||||||||||||||||||
Class R-3 | 201,109 | 15,844 | 16,974 | 1,344 | (387,263 | ) | (30,603 | ) | (169,180 | ) | (13,415 | ) | ||||||||||||||||||||
Class R-4 | 145,027 | 11,429 | 12,479 | 988 | (251,028 | ) | (19,820 | ) | (93,522 | ) | (7,403 | ) | ||||||||||||||||||||
Class R-5 | 90,869 | 7,173 | 7,540 | 597 | (171,230 | ) | (13,599 | ) | (72,821 | ) | (5,829 | ) | ||||||||||||||||||||
Class R-6 | 670,763 | 52,979 | 23,027 | 1,828 | (88,355 | ) | (7,014 | ) | 605,435 | 47,793 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 4,403,330 | 346,965 | $ | 656,897 | 51,998 | $ | (10,681,001 | ) | (845,429 | ) | $ | (5,620,774 | ) | (446,466 | ) |
*Includes exchanges between share classes of the fund.
9. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $22,767,969,000 and $22,403,772,000, respectively, during the six months ended June 30, 2014.
The Bond Fund of America | 29 |
Financial highlights
Income (loss) from investment operations1 | ||||||||||||||||||
Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | |||||||||||||||
Class A: | Six months ended 6/30/20143,4 | $ | 12.40 | $ | .15 | $ | .37 | $ | .52 | |||||||||
Year ended 12/31/2013 | 12.95 | .26 | (.52 | ) | (.26 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .30 | .43 | .73 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .40 | .38 | .78 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .44 | .41 | .85 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .53 | 1.03 | 1.56 | ||||||||||||||
Class B: | Six months ended 6/30/20143,4 | 12.40 | .11 | .37 | .48 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .17 | (.52 | ) | (.35 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .21 | .43 | .64 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .31 | .38 | .69 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .35 | .41 | .76 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .45 | 1.03 | 1.48 | ||||||||||||||
Class C: | Six months ended 6/30/20143,4 | 12.40 | .10 | .37 | .47 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .16 | (.52 | ) | (.36 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .20 | .43 | .63 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .30 | .38 | .68 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .35 | .41 | .76 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .44 | 1.03 | 1.47 | ||||||||||||||
Class F-1: | Six months ended 6/30/20143,4 | 12.40 | .15 | .37 | .52 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .26 | (.52 | ) | (.26 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .30 | .43 | .73 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .40 | .38 | .78 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .44 | .41 | .85 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .53 | 1.03 | 1.56 | ||||||||||||||
Class F-2: | Six months ended 6/30/20143,4 | 12.40 | .17 | .37 | .54 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .29 | (.52 | ) | (.23 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .33 | .43 | .76 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .43 | .38 | .81 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .47 | .41 | .88 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .56 | 1.03 | 1.59 | ||||||||||||||
Class 529-A: | Six months ended 6/30/20143,4 | 12.40 | .15 | .37 | .52 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .25 | (.52 | ) | (.27 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .29 | .43 | .72 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .39 | .38 | .77 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .44 | .41 | .85 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .53 | 1.03 | 1.56 | ||||||||||||||
30 | The Bond Fund of America |
Dividends (from net investment income) | Net asset value, end of period | Total return2 | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | |||||||||||||||||
$ | (.14 | ) | $ | 12.78 | 4.25 | % | $ | 18,707 | .63 | %5 | 2.39 | %5 | ||||||||||
(.29 | ) | 12.40 | (1.99 | ) | 18,895 | .61 | 2.10 | |||||||||||||||
(.33 | ) | 12.95 | 5.90 | 24,142 | .60 | 2.33 | ||||||||||||||||
(.42 | ) | 12.55 | 6.51 | 23,654 | .60 | 3.23 | ||||||||||||||||
(.46 | ) | 12.19 | 7.30 | 25,627 | .59 | 3.61 | ||||||||||||||||
(.52 | ) | 11.80 | 14.91 | 27,349 | .65 | 4.74 | ||||||||||||||||
(.10 | ) | 12.78 | 3.85 | 207 | 1.38 | 5 | 1.65 | 5 | ||||||||||||||
(.20 | ) | 12.40 | (2.72 | ) | 257 | 1.36 | 1.33 | |||||||||||||||
(.24 | ) | 12.95 | 5.10 | 441 | 1.35 | 1.60 | ||||||||||||||||
(.33 | ) | 12.55 | 5.70 | 612 | 1.36 | 2.49 | ||||||||||||||||
(.37 | ) | 12.19 | 6.50 | 891 | 1.35 | 2.88 | ||||||||||||||||
(.44 | ) | 11.80 | 14.06 | 1,212 | 1.40 | 4.05 | ||||||||||||||||
(.09 | ) | 12.78 | 3.83 | 1,567 | 1.42 | 5 | 1.60 | 5 | ||||||||||||||
(.19 | ) | 12.40 | (2.76 | ) | 1,680 | 1.41 | 1.29 | |||||||||||||||
(.23 | ) | 12.95 | 5.05 | 2,400 | 1.39 | 1.54 | ||||||||||||||||
(.32 | ) | 12.55 | 5.66 | 2,520 | 1.40 | 2.43 | ||||||||||||||||
(.37 | ) | 12.19 | 6.45 | 2,931 | 1.39 | 2.81 | ||||||||||||||||
(.43 | ) | 11.80 | 14.00 | 3,189 | 1.44 | 3.91 | ||||||||||||||||
(.14 | ) | 12.78 | 4.25 | 807 | .62 | 5 | 2.41 | 5 | ||||||||||||||
(.29 | ) | 12.40 | (2.03 | ) | 961 | .64 | 2.06 | |||||||||||||||
(.33 | ) | 12.95 | 5.88 | 1,452 | .61 | 2.32 | ||||||||||||||||
(.42 | ) | 12.55 | 6.48 | 1,520 | .63 | 3.21 | ||||||||||||||||
(.46 | ) | 12.19 | 7.27 | 1,866 | .62 | 3.59 | ||||||||||||||||
(.52 | ) | 11.80 | 14.91 | 2,329 | .65 | 4.80 | ||||||||||||||||
(.16 | ) | 12.78 | 4.39 | 703 | .36 | 5 | 2.66 | 5 | ||||||||||||||
(.32 | ) | 12.40 | (1.75 | ) | 467 | .37 | 2.36 | |||||||||||||||
(.36 | ) | 12.95 | 6.16 | 483 | .35 | 2.56 | ||||||||||||||||
(.45 | ) | 12.55 | 6.76 | 319 | .36 | 3.48 | ||||||||||||||||
(.49 | ) | 12.19 | 7.55 | 402 | .36 | 3.89 | ||||||||||||||||
(.55 | ) | 11.80 | 15.19 | 737 | .39 | 4.66 | ||||||||||||||||
(.14 | ) | 12.78 | 4.20 | 962 | .72 | 5 | 2.30 | 5 | ||||||||||||||
(.28 | ) | 12.40 | (2.08 | ) | 947 | .70 | 2.01 | |||||||||||||||
(.32 | ) | 12.95 | 5.80 | 1,101 | .68 | 2.24 | ||||||||||||||||
(.41 | ) | 12.55 | 6.42 | 981 | .68 | 3.13 | ||||||||||||||||
(.46 | ) | 12.19 | 7.24 | 898 | .65 | 3.53 | ||||||||||||||||
(.52 | ) | 11.80 | 14.86 | 758 | .70 | 4.67 |
See page 35 for footnotes.
The Bond Fund of America | 31 |
Financial highlights (continued)
Income (loss) from investment operations1 | ||||||||||||||||||
Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | |||||||||||||||
Class 529-B: | Six months ended 6/30/20143,4 | $ | 12.40 | $ | .10 | $ | .37 | $ | .47 | |||||||||
Year ended 12/31/2013 | 12.95 | .15 | (.52 | ) | (.37 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .19 | .43 | .62 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .29 | .38 | .67 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .34 | .41 | .75 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .44 | 1.03 | 1.47 | ||||||||||||||
Class 529-C: | Six months ended 6/30/20143,4 | 12.40 | .10 | .37 | .47 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .16 | (.52 | ) | (.36 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .19 | .43 | .62 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .29 | .38 | .67 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .34 | .41 | .75 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .44 | 1.03 | 1.47 | ||||||||||||||
Class 529-E: | Six months ended 6/30/20143,4 | 12.40 | .13 | .37 | .50 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .22 | (.52 | ) | (.30 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .26 | .43 | .69 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .36 | .38 | .74 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .40 | .41 | .81 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .49 | 1.03 | 1.52 | ||||||||||||||
Class 529-F-1: | Six months ended 6/30/20143,4 | 12.40 | .16 | .37 | .53 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .28 | (.52 | ) | (.24 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .32 | .43 | .75 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .42 | .38 | .80 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .46 | .41 | .87 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .55 | 1.03 | 1.58 | ||||||||||||||
Class R-1: | Six months ended 6/30/20143,4 | 12.40 | .11 | .37 | .48 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .17 | (.52 | ) | (.35 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .20 | .43 | .63 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .30 | .38 | .68 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .35 | .41 | .76 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .44 | 1.03 | 1.47 | ||||||||||||||
Class R-2: | Six months ended 6/30/20143,4 | 12.40 | .11 | .37 | .48 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .17 | (.52 | ) | (.35 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .20 | .43 | .63 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .30 | .38 | .68 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .34 | .41 | .75 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .44 | 1.03 | 1.47 |
32 | The Bond Fund of America |
Dividends (from net investment income) | Net asset value, end of period | Total return2 | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | |||||||||||||||||
$ | (.09 | ) | $ | 12.78 | 3.79 | % | $ | 19 | 1.50 | %5 | 1.52 | %5 | ||||||||||
(.18 | ) | 12.40 | (2.84 | ) | 23 | 1.49 | 1.21 | |||||||||||||||
(.22 | ) | 12.95 | 4.96 | 39 | 1.48 | 1.47 | ||||||||||||||||
(.31 | ) | 12.55 | 5.58 | 54 | 1.47 | 2.36 | ||||||||||||||||
(.36 | ) | 12.19 | 6.39 | 73 | 1.45 | 2.76 | ||||||||||||||||
(.43 | ) | 11.80 | 13.94 | 86 | 1.50 | 3.89 | ||||||||||||||||
(.09 | ) | 12.78 | 3.80 | 388 | 1.48 | 5 | 1.54 | 5 | ||||||||||||||
(.19 | ) | 12.40 | (2.83 | ) | 388 | 1.48 | 1.24 | |||||||||||||||
(.22 | ) | 12.95 | 4.97 | 477 | 1.46 | 1.46 | ||||||||||||||||
(.31 | ) | 12.55 | 5.59 | 444 | 1.46 | 2.35 | ||||||||||||||||
(.36 | ) | 12.19 | 6.40 | 428 | 1.44 | 2.74 | ||||||||||||||||
(.43 | ) | 11.80 | 13.95 | 370 | 1.49 | 3.87 | ||||||||||||||||
(.12 | ) | 12.78 | 4.08 | 52 | .94 | 5 | 2.08 | 5 | ||||||||||||||
(.25 | ) | 12.40 | (2.30 | ) | 52 | .93 | 1.79 | |||||||||||||||
(.29 | ) | 12.95 | 5.55 | 61 | .93 | 1.99 | ||||||||||||||||
(.38 | ) | 12.55 | 6.14 | 54 | .94 | 2.87 | ||||||||||||||||
(.42 | ) | 12.19 | 6.93 | 49 | .93 | 3.24 | ||||||||||||||||
(.48 | ) | 11.80 | 14.52 | 40 | .99 | 4.38 | ||||||||||||||||
(.15 | ) | 12.78 | 4.32 | 64 | .49 | 5 | 2.53 | 5 | ||||||||||||||
(.31 | ) | 12.40 | (1.86 | ) | 62 | .48 | 2.24 | |||||||||||||||
(.35 | ) | 12.95 | 6.04 | 73 | .46 | 2.45 | ||||||||||||||||
(.44 | ) | 12.55 | 6.65 | 59 | .46 | 3.36 | ||||||||||||||||
(.48 | ) | 12.19 | 7.47 | 54 | .44 | 3.74 | ||||||||||||||||
(.54 | ) | 11.80 | 15.09 | 44 | .49 | 4.84 | ||||||||||||||||
(.10 | ) | 12.78 | 3.86 | 58 | 1.37 | 5 | 1.65 | 5 | ||||||||||||||
(.20 | ) | 12.40 | (2.72 | ) | 58 | 1.37 | 1.34 | |||||||||||||||
(.23 | ) | 12.95 | 5.08 | 81 | 1.36 | 1.57 | ||||||||||||||||
(.32 | ) | 12.55 | 5.68 | 91 | 1.38 | 2.45 | ||||||||||||||||
(.37 | ) | 12.19 | 6.47 | 99 | 1.38 | 2.82 | ||||||||||||||||
(.43 | ) | 11.80 | 14.02 | 103 | 1.43 | 3.96 | ||||||||||||||||
(.10 | ) | 12.78 | 3.84 | 626 | 1.40 | 5 | 1.62 | 5 | ||||||||||||||
(.20 | ) | 12.40 | (2.70 | ) | 636 | 1.35 | 1.37 | |||||||||||||||
(.23 | ) | 12.95 | 5.09 | 807 | 1.36 | 1.57 | ||||||||||||||||
(.32 | ) | 12.55 | 5.67 | 806 | 1.39 | 2.43 | ||||||||||||||||
(.36 | ) | 12.19 | 6.44 | 832 | 1.39 | 2.79 | ||||||||||||||||
(.43 | ) | 11.80 | 13.95 | 795 | 1.49 | 3.89 |
See page 35 for footnotes.
The Bond Fund of America | 33 |
Financial highlights (continued)
Income (loss) from investment operations1 | ||||||||||||||||||
Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | |||||||||||||||
Class R-3: | Six months ended 6/30/20143,4 | $ | 12.40 | $ | .13 | $ | .37 | $ | .50 | |||||||||
Year ended 12/31/2013 | 12.95 | .22 | (.52 | ) | (.30 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .26 | .43 | .69 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .36 | .38 | .74 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .40 | .41 | .81 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .50 | 1.03 | 1.53 | ||||||||||||||
Class R-4: | Six months ended 6/30/20143,4 | 12.40 | .16 | .37 | .53 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .26 | (.52 | ) | (.26 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .30 | .43 | .73 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .40 | .38 | .78 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .44 | .41 | .85 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .53 | 1.03 | 1.56 | ||||||||||||||
Class R-5: | Six months ended 6/30/20143,4 | 12.40 | .17 | .37 | .54 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .30 | (.52 | ) | (.22 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .34 | .43 | .77 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .43 | .38 | .81 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .48 | .41 | .89 | ||||||||||||||
Year ended 12/31/2009 | 10.76 | .56 | 1.03 | 1.59 | ||||||||||||||
Class R-6: | Six months ended 6/30/20143,4 | 12.40 | .18 | .37 | .55 | |||||||||||||
Year ended 12/31/2013 | 12.95 | .31 | (.52 | ) | (.21 | ) | ||||||||||||
Year ended 12/31/2012 | 12.55 | .35 | .43 | .78 | ||||||||||||||
Year ended 12/31/2011 | 12.19 | .44 | .38 | .82 | ||||||||||||||
Year ended 12/31/2010 | 11.80 | .48 | .41 | .89 | ||||||||||||||
Period from 5/1/2009 to 12/31/20093,6 | 10.78 | .35 | 1.01 | 1.36 |
Six months ended June 30, | Year ended December 31 | |||||||||||||||||||||||
20143,4 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 129 | % | 419 | % | 264 | % | 154 | % | 99 | % | 84 | % |
34 | The Bond Fund of America |
Dividends (from net investment income) | Net asset value, end of period | Total return2 | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | |||||||||||||||||
$ | (.12 | ) | $ | 12.78 | 4.08 | % | $ | 742 | .94 | %5 | 2.08 | %5 | ||||||||||
(.25 | ) | 12.40 | (2.30 | ) | 748 | .92 | 1.79 | |||||||||||||||
(.29 | ) | 12.95 | 5.55 | 955 | .92 | 2.00 | ||||||||||||||||
(.38 | ) | 12.55 | 6.15 | 963 | .94 | 2.89 | ||||||||||||||||
(.42 | ) | 12.19 | 6.94 | 1,053 | .93 | 3.26 | ||||||||||||||||
(.49 | ) | 11.80 | 14.54 | 1,091 | .97 | 4.43 | ||||||||||||||||
(.15 | ) | 12.78 | 4.25 | 485 | .61 | 5 | 2.41 | 5 | ||||||||||||||
(.29 | ) | 12.40 | (1.99 | ) | 484 | .60 | 2.11 | |||||||||||||||
(.33 | ) | 12.95 | 5.89 | 602 | .60 | 2.33 | ||||||||||||||||
(.42 | ) | 12.55 | 6.48 | 669 | .62 | 3.21 | ||||||||||||||||
(.46 | ) | 12.19 | 7.27 | 768 | .62 | 3.57 | ||||||||||||||||
(.52 | ) | 11.80 | 14.90 | 788 | .66 | 4.75 | ||||||||||||||||
(.16 | ) | 12.78 | 4.41 | 207 | .32 | 5 | 2.71 | 5 | ||||||||||||||
(.33 | ) | 12.40 | (1.70 | ) | 226 | .31 | 2.41 | |||||||||||||||
(.37 | ) | 12.95 | 6.20 | 311 | .31 | 2.63 | ||||||||||||||||
(.45 | ) | 12.55 | 6.80 | 310 | .32 | 3.51 | ||||||||||||||||
(.50 | ) | 12.19 | 7.59 | 370 | .32 | 3.88 | ||||||||||||||||
(.55 | ) | 11.80 | 15.24 | 451 | .37 | 5.20 | ||||||||||||||||
(.17 | ) | 12.78 | 4.43 | 1,622 | .27 | 5 | 2.75 | 5 | ||||||||||||||
(.34 | ) | 12.40 | (1.65 | ) | 1,128 | .26 | 2.51 | |||||||||||||||
(.38 | ) | 12.95 | 6.26 | 559 | .25 | 2.61 | ||||||||||||||||
(.46 | ) | 12.55 | 6.85 | 237 | .27 | 3.55 | ||||||||||||||||
(.50 | ) | 12.19 | 7.64 | 280 | .27 | 3.90 | ||||||||||||||||
(.34 | ) | 11.80 | 12.75 | 252 | .31 | 5 | 4.59 | 5 |
1 | Based on average shares outstanding. |
2 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
3 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
4 | Unaudited. |
5 | Annualized. |
6 | Class R-6 shares were offered beginning May 1, 2009. |
See Notes to Financial Statements
The Bond Fund of America | 35 |
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 (January 1, 2014, through June 30, 2014).
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 entitled “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 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.
36 | The Bond Fund of America |
Beginning account value 1/1/2014 | Ending account value 6/30/2014 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A — actual return | $ | 1,000.00 | $ | 1,042.45 | $ | 3.19 | .63 | % | ||||||||
Class A — assumed 5% return | 1,000.00 | 1,021.67 | 3.16 | .63 | ||||||||||||
Class B — actual return | 1,000.00 | 1,038.52 | 6.98 | 1.38 | ||||||||||||
Class B — assumed 5% return | 1,000.00 | 1,017.95 | 6.90 | 1.38 | ||||||||||||
Class C — actual return | 1,000.00 | 1,038.32 | 7.18 | 1.42 | ||||||||||||
Class C — assumed 5% return | 1,000.00 | 1,017.75 | 7.10 | 1.42 | ||||||||||||
Class F-1 — actual return | 1,000.00 | 1,042.49 | 3.14 | .62 | ||||||||||||
Class F-1 — assumed 5% return | 1,000.00 | 1,021.72 | 3.11 | .62 | ||||||||||||
Class F-2 — actual return | 1,000.00 | 1,043.86 | 1.82 | .36 | ||||||||||||
Class F-2 — assumed 5% return | 1,000.00 | 1,023.01 | 1.81 | .36 | ||||||||||||
Class 529-A — actual return | 1,000.00 | 1,041.97 | 3.65 | .72 | ||||||||||||
Class 529-A — assumed 5% return | 1,000.00 | 1,021.22 | 3.61 | .72 | ||||||||||||
Class 529-B — actual return | 1,000.00 | 1,037.90 | 7.58 | 1.50 | ||||||||||||
Class 529-B — assumed 5% return | 1,000.00 | 1,017.36 | 7.50 | 1.50 | ||||||||||||
Class 529-C — actual return | 1,000.00 | 1,037.99 | 7.48 | 1.48 | ||||||||||||
Class 529-C — assumed 5% return | 1,000.00 | 1,017.46 | 7.40 | 1.48 | ||||||||||||
Class 529-E — actual return | 1,000.00 | 1,040.84 | 4.76 | .94 | ||||||||||||
Class 529-E — assumed 5% return | 1,000.00 | 1,020.13 | 4.71 | .94 | ||||||||||||
Class 529-F-1 — actual return | 1,000.00 | 1,043.17 | 2.48 | .49 | ||||||||||||
Class 529-F-1 — assumed 5% return | 1,000.00 | 1,022.36 | 2.46 | .49 | ||||||||||||
Class R-1 — actual return | 1,000.00 | 1,038.57 | 6.92 | 1.37 | ||||||||||||
Class R-1 — assumed 5% return | 1,000.00 | 1,018.00 | 6.85 | 1.37 | ||||||||||||
Class R-2 — actual return | 1,000.00 | 1,038.41 | 7.08 | 1.40 | ||||||||||||
Class R-2 — assumed 5% return | 1,000.00 | 1,017.85 | 7.00 | 1.40 | ||||||||||||
Class R-3 — actual return | 1,000.00 | 1,040.83 | 4.76 | .94 | ||||||||||||
Class R-3 — assumed 5% return | 1,000.00 | 1,020.13 | 4.71 | .94 | ||||||||||||
Class R-4 — actual return | 1,000.00 | 1,042.53 | 3.09 | .61 | ||||||||||||
Class R-4 — assumed 5% return | 1,000.00 | 1,021.77 | 3.06 | .61 | ||||||||||||
Class R-5 — actual return | 1,000.00 | 1,044.07 | 1.62 | .32 | ||||||||||||
Class R-5 — assumed 5% return | 1,000.00 | 1,023.21 | 1.61 | .32 | ||||||||||||
Class R-6 — actual return | 1,000.00 | 1,044.34 | 1.37 | .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). |
The Bond Fund of America | 37 |
Approval of Investment Advisory and Service Agreement
The Bond Fund of America’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through March 31, 2015. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.
In reaching this decision, the board and the committee took into account information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreement, and were advised by their independent counsel. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements, as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of the fund in light of its objective of providing as high a level of current income as is consistent with the preservation of capital. They compared the fund’s investment results with those of other relevant funds (including funds that form the basis of the Lipper index for the category in which the fund is included), and data such as relevant market and fund indexes, over various periods through September 30, 2013. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee reviewed the fund’s investment results measured against the Lipper Core Bond Funds Average and the Barclays U.S. Aggregate Index. They noted that the investment results of the fund were above the results of the Lipper average for the nine-month, one-year and lifetime periods (although below the Lipper average for the three-year, five-year and 10-year
38 | The Bond Fund of America |
periods) and above the Barclays index for the nine-month, one-year, three-year and five-year periods (although below the Barclays average for the 10-year period). The board and the committee concluded that the fund’s investment results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.
3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees were below the median of the other funds in the Lipper Core Bond Funds category and that although its total expenses were higher than the median of such funds, such expenses less distribution expenses were below the median. The board and the committee also considered the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.
4. Ancillary benefits
The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.
The Bond Fund of America | 39 |
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.
40 | The Bond Fund of America |
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The Bond Fund of America | 41 |
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42 | The Bond Fund of America |
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The 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
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106
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 | The 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.
“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 June 30, 2014, portfolio of The 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).
The 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. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of shareholders of The 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 September 30, 2014, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The American Funds Advantage
Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record.
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 26 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1 | |
The Capital SystemSM | |
Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is 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. | |
Superior long-term track record | |
Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 56% of 10-year periods and 57% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3 |
1 | Portfolio manager experience as of December 31, 2013. | |
2 | Based on Class A share results for rolling periods through December 31, 2013. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used). | |
3 | Based on management fees for the 20-year period ended December 31, 2013, versus comparable Lipper categories, excluding funds of funds. |
Printed on paper containing 10% post-consumer waste Printed with inks containing soy and/or vegetable oil | |
Lit. No. MFGESRX-008-0814P Litho in USA BG/ALD/6370-S42822 |
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
The Bond Fund of America Investment Portfolio June 30, 2014
|
unaudited
Bonds, notes & other debt instruments 101.14% | ||
U.S. Treasury bonds & notes 33.53% | Principal amount | Value |
U.S. Treasury 25.78% | (000) | (000) |
U.S. Treasury 0.25% 2015 | $ 23,585 | $ 23,616 |
U.S. Treasury 0.25% 2015 | 10,000 | 10,009 |
U.S. Treasury 0.25% 2015 | 10,000 | 10,002 |
U.S. Treasury 0.375% 20151 | 64,640 | 64,805 |
U.S. Treasury 0.25% 2016 | 18,325 | 18,273 |
U.S. Treasury 0.375% 2016 | 11,375 | 11,371 |
U.S. Treasury 0.875% 2016 | 20,000 | 20,145 |
U.S. Treasury 1.00% 2016 | 286,750 | 289,534 |
U.S. Treasury 1.50% 20161 | 309,000 | 315,359 |
U.S. Treasury 1.50% 2016 | 87,724 | 89,546 |
U.S. Treasury 1.75% 2016 | 25,000 | 25,633 |
U.S. Treasury 5.125% 2016 | 16,300 | 17,737 |
U.S. Treasury 7.50% 2016 | 45,000 | 52,318 |
U.S. Treasury 0.75% 2017 | 150,850 | 150,232 |
U.S. Treasury 0.875% 2017 | 390,900 | 391,377 |
U.S. Treasury 0.875% 2017 | 115,850 | 116,046 |
U.S. Treasury 0.875% 2017 | 75,000 | 75,330 |
U.S. Treasury 0.875% 2017 | 20,000 | 20,006 |
U.S. Treasury 1.00% 2017 | 166,200 | 167,182 |
U.S. Treasury 2.75% 2017 | 71,000 | 74,879 |
U.S. Treasury 4.625% 2017 | 33,500 | 36,918 |
U.S. Treasury 8.75% 2017 | 25,000 | 30,634 |
U.S. Treasury 1.25% 2018 | 268,500 | 266,403 |
U.S. Treasury 1.25% 2018 | 243,250 | 241,046 |
U.S. Treasury 1.375% 2018 | 140,000 | 139,814 |
U.S. Treasury 1.375% 2018 | 44,000 | 44,059 |
U.S. Treasury 1.50% 2018 | 160,750 | 161,586 |
U.S. Treasury 2.375% 2018 | 58,300 | 60,785 |
U.S. Treasury 1.50% 2019 | 1,190,950 | 1,184,852 |
U.S. Treasury 1.50% 2019 | 37,500 | 37,472 |
U.S. Treasury 1.625% 2019 | 210,000 | 209,983 |
U.S. Treasury 1.625% 2019 | 61,100 | 61,222 |
U.S. Treasury 1.125% 2020 | 58,875 | 56,589 |
U.S. Treasury 1.25% 2020 | 38,825 | 37,654 |
U.S. Treasury 1.375% 2020 | 57,750 | 56,149 |
U.S. Treasury 2.00% 2021 | 8,000 | 7,941 |
U.S. Treasury 2.25% 2021 | 309,300 | 312,671 |
U.S. Treasury 2.25% 2021 | 138,250 | 139,621 |
U.S. Treasury 8.00% 2021 | 500 | 700 |
U.S. Treasury 1.625% 2022 | 26,493 | 25,030 |
U.S. Treasury 1.625% 2022 | 23,928 | 22,720 |
U.S. Treasury 1.75% 2022 | 30,530 | 29,392 |
U.S. Treasury 2.00% 2023 | 34,654 | 33,636 |
U.S. Treasury 2.50% 2023 | 292,290 | 293,901 |
U.S. Treasury 2.75% 2023 | 217,800 | 223,134 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. Treasury bonds & notes — U.S. Treasury (continued) | (000) | (000) |
U.S. Treasury 2.50% 2024 | $119,502 | $ 119,269 |
U.S. Treasury 2.75% 2024 | 204,800 | 209,345 |
U.S. Treasury 6.875% 2025 | 77,500 | 109,732 |
U.S. Treasury 6.00% 2026 | 300 | 401 |
U.S. Treasury 4.50% 2036 | 63,707 | 77,209 |
U.S. Treasury 5.00% 2037 | 26,150 | 33,878 |
U.S. Treasury 4.375% 2038 | 48,725 | 58,056 |
U.S. Treasury 3.50% 2039 | 6,500 | 6,767 |
U.S. Treasury 3.75% 2041 | 22,000 | 23,847 |
U.S. Treasury 2.75% 2042 | 1,250 | 1,113 |
U.S. Treasury 3.00% 2042 | 12,201 | 11,479 |
U.S. Treasury 2.875% 2043 | 151,745 | 138,364 |
U.S. Treasury 3.625% 2043 | 98,350 | 103,653 |
U.S. Treasury 3.75% 2043 | 93,355 | 100,589 |
U.S. Treasury 3.375% 2044 | 89,825 | 90,227 |
U.S. Treasury 3.625% 2044 | 261,472 | 275,309 |
7,016,550 | ||
U.S. Treasury inflation-protected securities2 7.75% | ||
U.S. Treasury Inflation-Protected Security 2.00% 2014 | 88,029 | 88,245 |
U.S. Treasury Inflation-Protected Security 0.50% 2015 | 236,300 | 239,843 |
U.S. Treasury Inflation-Protected Security 1.625% 2015 | 112,493 | 114,428 |
U.S. Treasury Inflation-Protected Security 0.125% 2016 | 21,478 | 22,054 |
U.S. Treasury Inflation-Protected Security 2.00% 2016 | 23,886 | 25,202 |
U.S. Treasury Inflation-Protected Security 0.125% 2017 | 139,145 | 143,993 |
U.S. Treasury Inflation-Protected Security 2.375% 2017 | 41,141 | 45,029 |
U.S. Treasury Inflation-Protected Security 0.125% 2018 | 42,044 | 43,441 |
U.S. Treasury Inflation-Protected Security 0.125% 2019 | 371,778 | 382,842 |
U.S. Treasury Inflation-Protected Security 1.375% 2020 | 13,154 | 14,432 |
U.S. Treasury Inflation-Protected Security 0.625% 2021 | 15,240 | 16,056 |
U.S. Treasury Inflation-Protected Security 0.125% 2022 | 17,750 | 17,870 |
U.S. Treasury Inflation-Protected Security 0.125% 2023 | 33,068 | 32,958 |
U.S. Treasury Inflation-Protected Security 0.375% 2023 | 68,596 | 69,917 |
U.S. Treasury Inflation-Protected Security 0.625% 2024 | 414,241 | 429,159 |
U.S. Treasury Inflation-Protected Security 2.00% 2026 | 28,664 | 33,759 |
U.S. Treasury Inflation-Protected Security 1.75% 2028 | 9,505 | 10,938 |
U.S. Treasury Inflation-Protected Security 0.75% 2042 | 97,038 | 91,176 |
U.S. Treasury Inflation-Protected Security 0.625% 2043 | 78,075 | 70,761 |
U.S. Treasury Inflation-Protected Security 1.375% 2044 | 197,380 | 216,656 |
2,108,759 | ||
Total U.S. Treasury bonds & notes | 9,125,309 | |
Corporate bonds & notes 29.31% | ||
Financials 7.61% | ||
Goldman Sachs Group, Inc. 3.625% 2016 | 27,625 | 28,816 |
Goldman Sachs Group, Inc. 2.625% 2019 | 24,462 | 24,812 |
Goldman Sachs Group, Inc. 5.25% 2021 | 6,000 | 6,745 |
Goldman Sachs Group, Inc. 5.75% 2022 | 5,000 | 5,792 |
Goldman Sachs Group, Inc. 3.625% 2023 | 14,095 | 14,133 |
Goldman Sachs Group, Inc. 3.85% 2024 | 30,310 | 30,270 |
Goldman Sachs Group, Inc. 4.00% 2024 | 41,060 | 41,890 |
Goldman Sachs Group, Inc. 4.80% 2044 | 1,000 | 997 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
Bank of America Corp., Series L, 3.625% 2016 | $ 9,700 | $10,135 |
Bank of America Corp. 3.75% 2016 | 11,890 | 12,513 |
Bank of America Corp. 1.25% 2017 | 13,000 | 13,029 |
Merrill Lynch & Co., Inc. 4.625% 2018 | €6,280 | 9,604 |
Bank of America Corp. 2.60% 2019 | $34,300 | 34,736 |
Bank of America Corp., Series L, 2.65% 2019 | 24,300 | 24,654 |
Bank of America Corp. 5.625% 2020 | 10,500 | 12,093 |
Bank of America Corp. 3.30% 2023 | 6,815 | 6,716 |
Bank of America Corp. 4.00% 2024 | 25,355 | 25,954 |
Bank of America Corp. 4.125% 2024 | 1,035 | 1,069 |
Hospitality Properties Trust 5.125% 2015 | 9,925 | 9,975 |
Hospitality Properties Trust 6.30% 2016 | 28,918 | 30,899 |
Hospitality Properties Trust 5.625% 2017 | 895 | 980 |
Hospitality Properties Trust 6.70% 2018 | 28,250 | 31,841 |
Hospitality Properties Trust 5.00% 2022 | 10,800 | 11,438 |
Hospitality Properties Trust 4.50% 2023 | 11,265 | 11,496 |
HSBC Bank PLC 1.50% 20183 | 12,650 | 12,561 |
HSBC Holdings PLC 4.125% 20203 | 9,453 | 10,244 |
HSBC Holdings PLC 4.875% 2020 | 17,325 | 19,285 |
HSBC Holdings PLC 4.00% 2022 | 3,250 | 3,462 |
HSBC Holdings PLC 4.25% 2024 | 32,250 | 33,236 |
HSBC Holdings PLC 5.25% 2044 | 1,500 | 1,610 |
Morgan Stanley 1.75% 2016 | 10,000 | 10,146 |
Morgan Stanley 3.80% 2016 | 8,850 | 9,295 |
Morgan Stanley 2.125% 2018 | 24,745 | 25,037 |
Morgan Stanley 2.50% 2019 | 22,025 | 22,292 |
Morgan Stanley, Series F, 3.875% 2024 | 8,700 | 8,818 |
Morgan Stanley 6.375% 2042 | 900 | 1,138 |
Morgan Stanley, Series H, 5.45% (undated)4 | 2,305 | 2,350 |
Developers Diversified Realty Corp. 5.50% 2015 | 16,838 | 17,483 |
Developers Diversified Realty Corp. 9.625% 2016 | 21,956 | 25,131 |
Developers Diversified Realty Corp. 7.50% 2017 | 16,896 | 19,506 |
Developers Diversified Realty Corp. 4.75% 2018 | 1,225 | 1,334 |
Developers Diversified Realty Corp. 7.875% 2020 | 9,047 | 11,460 |
Westfield Group 5.75% 20153 | 32,000 | 34,605 |
Westfield Group 7.125% 20183 | 11,975 | 14,577 |
Westfield Group 6.75% 20193 | 4,000 | 4,985 |
Westfield Group 3.375% 20223 | 13,665 | 14,510 |
Kimco Realty Corp., Series C, 4.904% 2015 | 1,770 | 1,816 |
Kimco Realty Corp., Series C, 5.783% 2016 | 12,000 | 12,979 |
Kimco Realty Corp. 5.70% 2017 | 28,450 | 31,780 |
Kimco Realty Corp. 4.30% 2018 | 10,000 | 10,849 |
Kimco Realty Corp. 6.875% 2019 | 5,440 | 6,548 |
Citigroup Inc. 4.587% 2015 | 18,750 | 19,771 |
Citigroup Inc. 3.953% 2016 | 8,300 | 8,761 |
Citigroup Inc. 4.45% 2017 | 4,000 | 4,313 |
Citigroup Inc. 6.125% 2017 | 7,000 | 8,011 |
Citigroup Inc. 2.55% 2019 | 15,080 | 15,219 |
Citigroup Inc. 8.50% 2019 | 5,695 | 7,296 |
Rabobank Nederland 2.25% 2019 | 15,550 | 15,763 |
Rabobank Nederland 4.625% 2023 | 43,635 | 46,183 |
Barclays Bank PLC 2.50% 2019 | 24,810 | 25,154 |
Barclays Bank PLC 6.00% 2021 | €6,050 | 9,905 |
Barclays Bank PLC 10.179% 20213 | $13,975 | 19,407 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
JPMorgan Chase & Co. 3.40% 2015 | $ 2,500 | $ 2,573 |
JPMorgan Chase & Co. 1.35% 2017 | 13,000 | 13,056 |
JPMorgan Chase & Co. 1.625% 2018 | 8,680 | 8,653 |
JPMorgan Chase & Co. 3.20% 2023 | 7,610 | 7,566 |
JPMorgan Chase & Co. 3.625% 2024 | 10,390 | 10,447 |
JPMorgan Chase & Co., Series-V, junior subordinated, perpetual, 5.00% (undated)4 | 10,000 | 9,992 |
MetLife Global Funding I 2.50% 20153 | 17,000 | 17,420 |
MetLife Global Funding I 2.30% 20193 | 20,505 | 20,724 |
Metlife, Inc. 3.60% 2024 | 9,965 | 10,164 |
Prologis, Inc. 2.75% 2019 | 6,000 | 6,119 |
Prologis, Inc. 3.35% 2021 | 30,795 | 31,280 |
Prologis, Inc. 4.25% 2023 | 6,390 | 6,679 |
PNC Financial Services Group, Inc. 2.854% 2022 | 19,960 | 19,510 |
PNC Financial Services Group, Inc. 3.90% 2024 | 6,100 | 6,225 |
PNC Preferred Funding Trust I, junior subordinated 1.881% (undated)3,4 | 12,700 | 12,494 |
BPCE SA group 5.70% 20233 | 17,955 | 19,829 |
BPCE SA group 4.00% 2024 | 5,700 | 5,826 |
BPCE SA group 5.15% 20243 | 11,845 | 12,522 |
Wells Fargo & Co. 3.676% 2016 | 14,000 | 14,780 |
Wells Fargo & Co. 2.125% 2019 | 4,000 | 4,017 |
Wells Fargo & Co. 4.10% 2026 | 15,860 | 16,072 |
Prudential Financial, Inc. 2.30% 2018 | 2,895 | 2,947 |
Prudential Financial, Inc. 4.50% 2021 | 3,000 | 3,306 |
Prudential Holdings, LLC, Series C, 8.695% 20233,5 | 13,544 | 17,229 |
Prudential Financial, Inc. 3.50% 2024 | 8,200 | 8,187 |
Prudential Financial, Inc. 4.60% 2044 | 1,200 | 1,212 |
Goodman Funding Pty Ltd. 6.375% 20203 | 8,425 | 9,807 |
Goodman Funding Pty Ltd. 6.00% 20223 | 20,000 | 23,073 |
CNA Financial Corp. 5.85% 2014 | 4,500 | 4,613 |
CNA Financial Corp. 7.35% 2019 | 2,770 | 3,424 |
CNA Financial Corp. 5.875% 2020 | 1,250 | 1,464 |
CNA Financial Corp. 7.25% 2023 | 2,000 | 2,504 |
CNA Financial Corp. 3.95% 2024 | 19,195 | 19,835 |
American Express Credit Co. 1.75% 2015 | 14,500 | 14,687 |
American Express Co. 6.15% 2017 | 150 | 172 |
American Express Co. 1.55% 2018 | 15,500 | 15,463 |
Berkshire Hathaway Inc. 2.20% 2016 | 14,000 | 14,452 |
Berkshire Hathaway Inc. 2.00% 2018 | 5,210 | 5,306 |
Berkshire Hathaway Inc. 2.90% 2020 | 2,400 | 2,475 |
Berkshire Hathaway Inc. 3.00% 2022 | 4,575 | 4,606 |
Berkshire Hathaway Inc. 4.40% 2042 | 2,000 | 2,027 |
Berkshire Hathaway Finance Corp. 4.30% 2043 | 1,000 | 996 |
ACE INA Holdings Inc. 2.60% 2015 | 19,990 | 20,532 |
ACE INA Holdings Inc. 3.35% 2024 | 7,900 | 7,981 |
American Tower Corp. 4.625% 2015 | 7,000 | 7,211 |
American Tower Corp. 3.40% 2019 | 18,075 | 18,927 |
American Tower Corp. 5.90% 2021 | 2,000 | 2,309 |
American International Group, Inc. 4.875% 2016 | 5,000 | 5,411 |
American International Group, Inc. 3.80% 2017 | 18,250 | 19,512 |
American International Group, Inc. 3.375% 2020 | 3,000 | 3,121 |
Nordea Bank, Series 2, 3.70% 20143 | 8,000 | 8,100 |
Nordea Bank AB 3.125% 20173 | 12,500 | 13,174 |
Nordea Bank AB 4.875% 20213 | 4,185 | 4,548 |
Nordea Bank AB 4.25% 20223 | 1,390 | 1,442 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
Credit Suisse Group AG 1.375% 2017 | $ 9,400 | $ 9,435 |
Credit Suisse Group AG 2.30% 2019 | 16,000 | 16,042 |
ERP Operating LP 6.584% 2015 | 10,000 | 10,469 |
ERP Operating LP 7.125% 2017 | 5,595 | 6,581 |
ERP Operating LP 4.625% 2021 | 2,045 | 2,253 |
ERP Operating LP 4.50% 2044 | 5,400 | 5,412 |
American Campus Communities, Inc. 3.75% 2023 | 17,460 | 17,281 |
American Campus Communities, Inc. 4.125% 2024 | 5,900 | 5,989 |
DCT Industrial Trust Inc. 4.50% 2023 | 19,230 | 19,837 |
Intesa Sanpaolo SpA 5.017% 20243 | 18,755 | 19,003 |
Lloyds Banking Group PLC 2.30% 2018 | 1,010 | 1,026 |
HBOS PLC 6.75% 20183 | 7,610 | 8,781 |
HBOS PLC 4.375% 20194 | €2,870 | 3,956 |
Lloyds Banking Group PLC 6.50% 20203 | $4,400 | 5,170 |
RSA Insurance Group PLC 9.375% 20394 | £4,540 | 9,511 |
RSA Insurance Group PLC 8.50% (undated)4 | 5,354 | 9,414 |
US Bancorp., Series T, 1.65% 2017 | $13,000 | 13,191 |
US Bancorp. 3.70% 2024 | 5,500 | 5,704 |
QBE Insurance Group Ltd. 2.40% 20183 | 18,590 | 18,608 |
BNP Paribas 3.60% 2016 | 14,000 | 14,605 |
BNP Paribas 5.75% 2022 | £1,975 | 3,748 |
Discover Financial Services 2.00% 2018 | $ 5,200 | 5,235 |
Discover Financial Services 4.20% 2023 | 12,283 | 12,979 |
Essex Portfolio L.P. 3.25% 2023 | 6,185 | 6,046 |
Essex Portfolio L.P. 3.875% 20243 | 10,960 | 11,159 |
New York Life Global Funding 2.10% 20193 | 17,000 | 17,001 |
ANZ National (International) Ltd. 3.125% 20153 | 16,500 | 16,978 |
UDR, Inc., Series A, 5.25% 2015 | 12,780 | 13,102 |
UDR, Inc. 3.70% 2020 | 3,615 | 3,796 |
Bank of New York Mellon Corp., Series G, 2.50% 2016 | 16,000 | 16,479 |
Svenska Handelsbanken AB 2.25% 2019 | 15,720 | 15,813 |
Westpac Banking Corp. 3.00% 2015 | 14,400 | 14,914 |
Simon Property Group, LP 4.20% 2015 | 2,430 | 2,459 |
Simon Property Group, LP 10.35% 2019 | 8,995 | 12,197 |
AXA SA 8.60% 2030 | 6,715 | 9,040 |
AXA SA, Series B, junior subordinated 6.379% (undated)3,4 | 5,065 | 5,521 |
Sovereign Bancorp, Inc. 8.75% 2018 | 1,880 | 2,290 |
Santander Issuances, SA Unipersonal 6.50% 20193,4 | 11,600 | 11,669 |
CME Group Inc. 5.30% 2043 | 11,850 | 13,704 |
UnumProvident Finance Co. PLC 6.85% 20153 | 1,224 | 1,316 |
Unum Group 7.125% 2016 | 10,100 | 11,444 |
Unum Group 5.625% 2020 | 345 | 396 |
iStar Financial Inc. 4.00% 2017 | 4,175 | 4,206 |
iStar Financial Inc., Series B, 9.00% 2017 | 7,635 | 8,857 |
BB&T Corp. 1.00% 2017 | 13,000 | 12,957 |
AvalonBay Communities, Inc. 3.625% 2020 | 11,270 | 11,781 |
Regions Financial Corp. 7.75% 2014 | 4,211 | 4,317 |
Regions Financial Corp., Series A-I, 5.20% 2015 | 590 | 609 |
Regions Financial Corp. 5.75% 2015 | 975 | 1,019 |
Regions Financial Corp. 2.00% 2018 | 5,850 | 5,834 |
VEB Finance Ltd. 6.902% 20203 | 9,100 | 9,896 |
VEB Finance Ltd. 6.80% 20253 | 500 | 538 |
Banco de Crédito del Perú 5.375% 20203 | 7,000 | 7,709 |
Icahn Enterprises Finance Corp. 3.50% 2017 | 7,350 | 7,451 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
Royal Bank of Scotland PLC 5.625% 2020 | $6,435 | $ 7,382 |
HSBK (Europe) BV 7.25% 20213 | 6,710 | 7,333 |
Crescent Resources 10.25% 20173 | 6,200 | 6,975 |
Liberty Mutual Group Inc. 6.70% 20163 | 6,250 | 6,963 |
Realogy Corp., Letter of Credit, 4.50% 20164,5,6 | 21 | 20 |
Realogy Corp. 4.50% 20193 | 6,375 | 6,391 |
BBVA Bancomer SA 4.50% 20163 | 3,225 | 3,410 |
BBVA Bancomer SA 6.50% 20213 | 2,355 | 2,667 |
Australia & New Zealand Banking Group Ltd. 2.25% 2019 | 5,700 | 5,728 |
Skandinaviska Enskilda 2.375% 20193 | 5,300 | 5,358 |
Piedmont Operating Partnership LP 3.40% 2023 | 5,300 | 5,045 |
Bank of India 3.625% 20183 | 5,000 | 5,043 |
Leucadia National Corp. 5.50% 2023 | 4,695 | 4,994 |
Assicurazioni Generali SPA 10.125% 2042 | €2,500 | 4,785 |
Northern Trust Corp. 5.85% 20173 | $ 3,750 | 4,272 |
Franklin Resources, Inc. 1.375% 2017 | 2,700 | 2,711 |
Franklin Resources, Inc. 2.80% 2022 | 1,300 | 1,274 |
UBS AG 5.75% 2018 | 2,245 | 2,576 |
UBS AG 4.875% 2020 | 1,166 | 1,309 |
Swiss RE Treasury 2.875% 20223 | 4,025 | 3,857 |
Alexandria Real Estate Equities, Inc. 3.90% 2023 | 3,500 | 3,490 |
CIT Group Inc. 4.25% 2017 | 1,400 | 1,464 |
CIT Group Inc. 3.875% 2019 | 1,800 | 1,833 |
Corporate Office Properties Trust 3.60% 2023 | 2,834 | 2,714 |
Ocwen Financial Corp. 6.625% 20193 | 2,500 | 2,588 |
BioMed Realty Trust, Inc. 2.625% 2019 | 2,490 | 2,507 |
Brandywine Operating Partnership, LP 5.40% 2014 | 2,000 | 2,030 |
Brandywine Operating Partnership, LP 5.70% 2017 | 25 | 28 |
Brandywine Operating Partnership, LP 3.95% 2023 | 100 | 101 |
Eole Finance SPC, 2.341% 20243,5 | 1,975 | 1,961 |
Intercontinentalexchange, Inc. 2.50% 2018 | 1,735 | 1,776 |
Genworth Holdings, Inc. 4.90% 2023 | 1,570 | 1,683 |
Charles Schwab Corp, 2.20% 2018 | 1,390 | 1,415 |
2,069,819 | ||
Energy 4.03% | ||
Kinder Morgan Energy Partners, LP 5.125% 2014 | 13,410 | 13,639 |
Kinder Morgan Energy Partners, LP 5.625% 2015 | 12,600 | 12,995 |
Kinder Morgan Energy Partners, LP 6.00% 2017 | 15,000 | 16,740 |
Kinder Morgan Energy Partners, LP 2.65% 2019 | 2,450 | 2,482 |
Kinder Morgan Energy Partners, LP 9.00% 2019 | 4,395 | 5,638 |
Kinder Morgan Energy Partners, LP 5.30% 2020 | 1,250 | 1,405 |
Kinder Morgan Energy Partners, LP 6.85% 2020 | 16,835 | 20,223 |
Kinder Morgan Energy Partners, LP 3.50% 2021 | 5,500 | 5,583 |
Kinder Morgan Energy Partners, LP 4.15% 2022 | 5,000 | 5,200 |
Kinder Morgan Energy Partners, LP 3.50% 2023 | 11,160 | 10,854 |
Kinder Morgan Energy Partners, LP 4.15% 2024 | 7,900 | 8,023 |
Kinder Morgan Energy Partners, LP 6.95% 2038 | 2,350 | 2,902 |
Kinder Morgan Energy Partners, LP 6.55% 2040 | 2,000 | 2,395 |
Kinder Morgan Energy Partners, LP 5.00% 2042 | 3,000 | 2,988 |
Kinder Morgan Energy Partners, LP 5.50% 2044 | 4,479 | 4,738 |
Enbridge Energy Partners, LP, Series B, 6.50% 2018 | 25,120 | 29,303 |
Enbridge Energy Partners, LP 9.875% 2019 | 27,005 | 35,471 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Energy (continued) | (000) | (000) |
Enbridge Energy Partners, LP 5.20% 2020 | $ 1,500 | $ 1,677 |
Enbridge Energy Partners, LP 4.20% 2021 | 6,100 | 6,470 |
Enbridge Energy Partners, LP 5.50% 2040 | 3,500 | 3,821 |
Williams Partners LP 3.80% 2015 | 15,800 | 16,106 |
Williams Partners LP 5.25% 2020 | 11,625 | 13,127 |
Williams Partners LP 4.50% 2023 | 5,350 | 5,682 |
Williams Partners LP 4.30% 2024 | 18,870 | 19,707 |
Williams Partners LP 3.90% 2025 | 5,250 | 5,282 |
Williams Partners LP 5.40% 2044 | 8,000 | 8,601 |
Petróleos Mexicanos 5.50% 2021 | 6,935 | 7,819 |
Petróleos Mexicanos 4.875% 2022 | 1,115 | 1,209 |
Pemex Project Funding Master Trust, Series 13, 6.625% 2035 | 13,750 | 16,259 |
Petróleos Mexicanos 6.50% 2041 | 20,150 | 23,525 |
Petróleos Mexicanos 5.50% 2044 | 13,100 | 13,703 |
Total Capital SA 3.00% 2015 | 17,000 | 17,446 |
Total Capital International 2.10% 2019 | 25,050 | 25,187 |
Total Capital International 3.75% 2024 | 18,850 | 19,650 |
Devon Energy Corp. 2.25% 2018 | 14,275 | 14,455 |
Devon Energy Corp. 3.25% 2022 | 36,825 | 37,139 |
Devon Energy Corp. 4.75% 2042 | 2,050 | 2,135 |
Anadarko Petroleum Corp. 5.95% 2016 | 15,500 | 17,175 |
Anadarko Petroleum Corp. 6.375% 2017 | 17,500 | 20,160 |
Anadarko Petroleum Corp. 8.70% 2019 | 8,045 | 10,374 |
Anadarko Petroleum Corp. 6.45% 2036 | 685 | 875 |
Anadarko Petroleum Corp. 6.20% 2040 | 1,500 | 1,895 |
Transocean Inc. 5.05% 2016 | 2,405 | 2,614 |
Transocean Inc. 2.50% 2017 | 11,870 | 12,129 |
Transocean Inc. 6.375% 2021 | 23,480 | 27,192 |
Transocean Inc. 3.80% 2022 | 6,300 | 6,243 |
StatoilHydro ASA 2.90% 2014 | 15,360 | 15,475 |
Statoil ASA 3.125% 2017 | 10,000 | 10,590 |
Statoil ASA 0.514% 20184 | 7,690 | 7,701 |
Statoil ASA 1.95% 2018 | 6,110 | 6,168 |
Statoil ASA 3.70% 2024 | 5,000 | 5,237 |
Enbridge Inc. 5.60% 2017 | 17,750 | 19,759 |
Enbridge Inc. 4.00% 2023 | 23,000 | 23,959 |
Enterprise Products Operating LLC 5.20% 2020 | 4,125 | 4,715 |
Enterprise Products Operating LLC 4.05% 2022 | 8,300 | 8,832 |
Enterprise Products Operating LLC 3.35% 2023 | 7,445 | 7,468 |
Enterprise Products Operating LLC 3.90% 2024 | 16,630 | 17,241 |
Enterprise Products Operating LLC 4.85% 2044 | 1,250 | 1,292 |
Cenovus Energy Inc. 3.00% 2022 | 28,310 | 27,851 |
Cenovus Energy Inc. 3.80% 2023 | 10,250 | 10,581 |
Exxon Mobil Corp. 0.921% 2017 | 13,000 | 13,020 |
Exxon Mobil Corp. 1.819% 2019 | 11,200 | 11,282 |
Exxon Mobil Corp. 3.176% 2024 | 5,950 | 6,076 |
Gazprom OJSC 5.092% 20153 | 4,825 | 5,051 |
Gazprom OJSC 6.51% 20223 | 14,500 | 15,783 |
Gazprom OJSC, Series 9, 6.51% 2022 | 5,000 | 5,442 |
Diamond Offshore Drilling, Inc. 4.875% 2043 | 23,320 | 23,568 |
QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 20193,5 | 20,622 | 21,627 |
NGPL PipeCo LLC 7.119% 20173 | 8,325 | 8,491 |
NGPL PipeCo LLC 9.625% 20193 | 11,085 | 12,194 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Energy (continued) | (000) | (000) |
BG Energy Capital PLC 2.50% 20153 | $ 7,200 | $ 7,365 |
BG Energy Capital PLC 2.875% 20163 | 8,635 | 8,991 |
BG Energy Capital PLC 4.00% 20213 | 2,400 | 2,550 |
Shell International Finance BV 3.10% 2015 | 10,000 | 10,275 |
Shell International Finance BV 2.00% 2018 | 8,105 | 8,225 |
Ras Laffan Liquefied Natural Gas III 5.50% 2014 | 3,335 | 3,376 |
Ras Laffan Liquefied Natural Gas III 5.50% 20143 | 330 | 334 |
Ras Laffan Liquefied Natural Gas III 5.832% 20165 | 896 | 952 |
Ras Laffan Liquefied Natural Gas II 5.298% 20203,5 | 10,490 | 11,461 |
Ras Laffan Liquefied Natural Gas III 6.332% 20275 | 2,000 | 2,330 |
Ecopetrol SA 5.875% 2023 | 2,700 | 3,042 |
Ecopetrol SA 5.875% 2045 | 12,660 | 13,179 |
Peabody Energy Corp. 6.00% 2018 | 13,345 | 13,979 |
Peabody Energy Corp. 6.25% 2021 | 1,175 | 1,176 |
Schlumberger Investment SA 3.65% 2023 | 14,280 | 14,871 |
BP Capital Markets PLC 0.643% 20164 | 13,380 | 13,450 |
Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 20213,5 | 5,123 | 5,546 |
Odebrecht Offshore Drilling Finance Ltd. 6.75% 20223,5 | 7,366 | 7,904 |
Woodside Finance Ltd. 4.60% 20213 | 9,565 | 10,452 |
Alpha Natural Resources, Inc. 9.75% 2018 | 5,165 | 4,752 |
Alpha Natural Resources, Inc. 6.00% 2019 | 550 | 403 |
Alpha Natural Resources, Inc. 7.50% 20203 | 3,275 | 3,177 |
Alpha Natural Resources, Inc. 6.25% 2021 | 2,700 | 1,924 |
Sabine Pass Liquefaction, LLC 5.625% 2021 | 4,750 | 5,047 |
Sabine Pass Liquefaction, LLC 5.75% 20243 | 4,425 | 4,619 |
QGOG Constellation SA 6.25% 20193 | 9,180 | 9,318 |
Spectra Energy Partners, LP 2.95% 2016 | 6,375 | 6,617 |
Spectra Energy Partners, LP 2.95% 2018 | 2,430 | 2,525 |
Samson Investment Co., Term Loan B, 5.00% 20184,5,6 | 300 | 301 |
Samson Investment Co. 10.75% 20203 | 8,300 | 8,788 |
TransCanada PipeLines Ltd. 6.50% 2018 | 7,500 | 8,914 |
Canadian Natural Resources Ltd. 3.45% 2021 | 6,185 | 6,385 |
Canadian Natural Resources Ltd. 3.80% 2024 | 2,045 | 2,111 |
Chevron Corp. 2.355% 2022 | 7,500 | 7,219 |
Chevron Corp. 3.191% 2023 | 100 | 102 |
Arch Coal, Inc. 7.00% 2019 | 2,375 | 1,811 |
Arch Coal, Inc. 8.00% 20193 | 725 | 720 |
Arch Coal, Inc. 9.875% 2019 | 350 | 300 |
Arch Coal, Inc. 7.25% 2021 | 5,225 | 3,840 |
Regency Energy Partners LP and Regency Energy Finance Corp. 6.50% 2021 | 5,125 | 5,612 |
PDC Energy Inc. 7.75% 2022 | 4,900 | 5,488 |
Teekay Corp. 8.50% 2020 | 4,690 | 5,440 |
Transportadora de Gas Peru SA 4.25% 20283,5 | 5,000 | 4,738 |
Boardwalk Pipeline Partners 3.375% 2023 | 5,000 | 4,627 |
CONSOL Energy Inc. 8.25% 2020 | 3,630 | 3,948 |
CONSOL Energy Inc. 5.875% 20223 | 400 | 420 |
Denbury Resources Inc. 4.625% 2023 | 3,900 | 3,803 |
Bonanza Creek Energy, Inc. 6.75% 2021 | 3,050 | 3,279 |
CNOOC Finance (2013) Ltd. 3.00% 2023 | 3,450 | 3,262 |
Petrobras International Finance Co. 5.375% 2021 | 1,595 | 1,670 |
Petrobras Global Finance Co. 5.625% 2043 | 1,060 | 965 |
NGL Energy Partners LP 5.125% 20193 | 2,025 | 2,040 |
EnLink Midstream Partners, LP 2.70% 2019 | 775 | 787 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Energy (continued) | (000) | (000) |
EnLink Midstream Partners, LP 4.40% 2024 | $ 1,190 | $ 1,250 |
Kinder Morgan Energy Partners, LP 5.00% 20213 | 1,350 | 1,407 |
Western Gas Partners LP 2.60% 2018 | 1,020 | 1,040 |
Rice Energy Inc. 6.25% 20223 | 725 | 744 |
Oasis Petroleum Inc. 6.875% 20223 | 375 | 411 |
1,096,901 | ||
Health care 2.88% | ||
Gilead Sciences, Inc. 2.40% 2014 | 7,215 | 7,274 |
Gilead Sciences, Inc. 3.70% 2024 | 30,800 | 31,674 |
Gilead Sciences, Inc. 4.80% 2044 | 17,640 | 18,760 |
Pfizer Inc. 2.10% 2019 | 25,500 | 25,649 |
Pfizer Inc. 3.40% 2024 | 13,950 | 14,186 |
Pfizer Inc. 4.40% 2044 | 16,500 | 16,927 |
UnitedHealth Group Inc. 0.85% 2015 | 5,525 | 5,549 |
UnitedHealth Group Inc. 1.40% 2017 | 6,095 | 6,122 |
UnitedHealth Group Inc. 6.00% 2017 | 19,920 | 22,644 |
UnitedHealth Group Inc. 2.875% 2023 | 15,985 | 15,702 |
UnitedHealth Group Inc. 5.70% 2040 | 1,250 | 1,498 |
AbbVie Inc. 1.75% 2017 | 13,250 | 13,313 |
AbbVie Inc. 2.90% 2022 | 35,540 | 34,413 |
Express Scripts Inc. 2.75% 2014 | 14,500 | 14,637 |
Medco Health Solutions, Inc. 2.75% 2015 | 10,310 | 10,559 |
Express Scripts Inc. 3.125% 2016 | 16,127 | 16,808 |
Express Scripts Inc. 2.65% 2017 | 5,500 | 5,717 |
McKesson Corp. 3.25% 2016 | 1,580 | 1,644 |
McKesson Corp. 1.292% 2017 | 10,300 | 10,327 |
McKesson Corp. 1.40% 2018 | 370 | 366 |
McKesson Corp. 2.284% 2019 | 11,850 | 11,903 |
McKesson Corp. 3.796% 2024 | 19,610 | 20,076 |
McKesson Corp. 4.883% 2044 | 870 | 908 |
Novartis Capital Corp. 3.40% 2024 | 36,295 | 36,816 |
Novartis Capital Corp. 4.40% 2044 | 2,750 | 2,869 |
Thermo Fisher Scientific Inc. 1.30% 2017 | 14,130 | 14,158 |
Thermo Fisher Scientific Inc. 2.40% 2019 | 2,405 | 2,432 |
Thermo Fisher Scientific Inc. 4.15% 2024 | 18,290 | 19,154 |
Roche Holdings, Inc. 6.00% 20193 | 10,324 | 12,186 |
Roche Holdings, Inc. 7.00% 20393 | 13,360 | 18,989 |
Coventry Health Care, Inc. 6.30% 2014 | 11,395 | 11,477 |
Aetna Inc. 1.50% 2017 | 6,730 | 6,760 |
Aetna Inc. 2.20% 2019 | 9,045 | 9,077 |
Aetna Inc. 4.75% 2044 | 1,500 | 1,580 |
Schering-Plough Corp. 6.00% 2017 | 5,300 | 6,089 |
Merck & Co., Inc. 2.80% 2023 | 22,365 | 21,885 |
inVentiv Health Inc. 9.00% 20183 | 10,465 | 11,302 |
inVentiv Health Inc. 11.00% 20183 | 17,255 | 16,522 |
Amgen Inc. 2.50% 2016 | 9,200 | 9,534 |
Amgen Inc. 1.25% 2017 | 6,750 | 6,748 |
Amgen Inc. 2.20% 2019 | 7,250 | 7,249 |
Amgen Inc. 3.625% 2024 | 1,000 | 1,010 |
Amgen Inc. 5.375% 2043 | 1,845 | 2,040 |
Celgene Corp 3.625% 2024 | 10,450 | 10,489 |
Celgene Corp 4.625% 2044 | 15,130 | 15,188 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Health care (continued) | (000) | (000) |
Biogen Idec Inc. 6.875% 2018 | $17,000 | $ 20,027 |
Kinetic Concepts, Inc. 10.50% 2018 | 13,865 | 15,702 |
Kinetic Concepts, Inc. 12.50% 2019 | 1,560 | 1,802 |
VPI Escrow Corp. 6.75% 20183 | 3,650 | 3,942 |
VPI Escrow Corp. 6.375% 20203 | 10,880 | 11,601 |
VPI Escrow Corp. 7.50% 20213 | 1,580 | 1,756 |
GlaxoSmithKline Capital Inc. 5.65% 2018 | 15,000 | 17,218 |
INC Research LLC 11.50% 20193 | 12,145 | 13,845 |
Tenet Healthcare Corp., First Lien, 4.75% 2020 | 2,275 | 2,338 |
Tenet Healthcare Corp., First Lien, 6.00% 2020 | 9,830 | 10,690 |
Cardinal Health, Inc. 4.00% 2015 | 3,990 | 4,123 |
Cardinal Health, Inc. 1.90% 2017 | 5,650 | 5,739 |
Cardinal Health, Inc. 1.70% 2018 | 2,210 | 2,204 |
Rotech Healthcare Inc., Term Loan A, 5.50% 20184,5,6 | 3,582 | 3,564 |
Rotech Healthcare Inc., Term Loan B, 10.00% 20194,5,6 | 2,715 | 2,701 |
Rotech Healthcare Inc., Term Loan, 13.00% 20204,5,6,7 | 5,510 | 5,483 |
Forest Laboratories, Inc. 4.375% 20193 | 7,710 | 8,337 |
Forest Laboratories, Inc. 5.00% 20213 | 3,100 | 3,405 |
Baxter International Inc. 1.85% 2018 | 6,030 | 6,044 |
Baxter International Inc. 3.20% 2023 | 3,955 | 3,928 |
Multiplan Inc., Term Loan B, 4.00% 20214,5,6 | 9,940 | 9,925 |
Boston Scientific Corp. 6.00% 2020 | 8,075 | 9,397 |
WellPoint, Inc. 2.30% 2018 | 9,030 | 9,207 |
VWR Funding, Inc. 7.25% 2017 | 7,830 | 8,310 |
HCA Inc. 3.75% 2019 | 8,000 | 8,090 |
DJO Finance LLC 9.75% 2017 | 5,175 | 5,447 |
DJO Finance LLC 7.75% 2018 | 995 | 1,050 |
DJO Finance LLC 9.875% 2018 | 910 | 987 |
DENTSPLY International Inc. 2.75% 2016 | 5,620 | 5,823 |
Centene Corp. 5.75% 2017 | 1,815 | 1,983 |
Centene Corp. 4.75% 2022 | 3,385 | 3,440 |
Medtronic, Inc. 4.625% 2044 | 5,140 | 5,411 |
Symbion Inc. 8.00% 2016 | 4,950 | 5,198 |
Dignity Health 3.125% 2022 | 4,100 | 3,848 |
Ortho-Clinical Diagnostics Inc., Term Loan B, 4.75% 20214,5,6 | 3,685 | 3,715 |
Catalent Pharma Solutions Inc., Term Loan, 6.50% 20174,5,6 | 3,050 | 3,084 |
PRA Holdings, Inc. 9.50% 20233 | 1,580 | 1,764 |
Catholic Health Initiatives, Series 2012, 1.60% 2017 | 1,250 | 1,231 |
LifePoint Hospitals, Inc. 5.50% 20213 | 1,000 | 1,050 |
783,619 | ||
Consumer discretionary 2.86% | ||
Time Warner Inc. 5.875% 2016 | 19,170 | 21,356 |
Time Warner Inc. 2.10% 2019 | 11,985 | 11,936 |
Time Inc., Term Loan B, 4.25% 20214,5,6 | 14,875 | 14,974 |
Time Warner Inc. 4.05% 2023 | 18,765 | 19,492 |
Time Warner Inc. 3.55% 2024 | 4,000 | 3,977 |
Time Warner Inc. 7.57% 2024 | 12,340 | 15,955 |
Time Warner Inc. 6.20% 2040 | 9,450 | 11,256 |
Time Warner Inc. 4.90% 2042 | 3,000 | 3,062 |
Time Warner Inc. 4.65% 2044 | 4,500 | 4,424 |
DaimlerChrysler North America Holding Corp. 1.30% 20153 | 11,000 | 11,092 |
DaimlerChrysler North America Holding Corp. 1.25% 20163 | 6,250 | 6,306 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer discretionary (continued) | (000) | (000) |
DaimlerChrysler North America Holding Corp. 2.625% 20163 | $ 7,250 | $ 7,494 |
Daimler Finance NA LLC 3.00% 20163 | 1,000 | 1,035 |
DaimlerChrysler North America Holding Corp. 1.085% 20183,4 | 7,500 | 7,586 |
DaimlerChrysler North America Holding Corp. 1.875% 20183 | 13,450 | 13,582 |
DaimlerChrysler North America Holding Corp. 2.375% 20183 | 10,700 | 10,969 |
DaimlerChrysler North America Holding Corp. 2.875% 20213 | 26,250 | 26,500 |
DaimlerChrysler North America Holding Corp. 8.50% 2031 | 3,000 | 4,557 |
Ford Motor Credit Co. 1.70% 2016 | 10,500 | 10,638 |
Ford Motor Credit Co. 2.50% 2016 | 9,000 | 9,231 |
Ford Motor Credit Co. 2.375% 2018 | 11,550 | 11,807 |
Ford Motor Credit Co. 2.375% 2019 | 22,325 | 22,455 |
Ford Motor Credit Co. 4.375% 2023 | 21,665 | 23,168 |
NBCUniversal Media, LLC 2.875% 2016 | 15,000 | 15,574 |
NBC Universal Enterprise, Inc. 0.911% 20183,4 | 10,425 | 10,551 |
NBC Universal Enterprise, Inc. 1.974% 20193 | 8,645 | 8,581 |
NBCUniversal Media, LLC 2.875% 2023 | 7,300 | 7,260 |
NBCUniversal Media, LLC 4.45% 2043 | 2,100 | 2,108 |
NBC Universal Enterprise, Inc. 5.25% (undated)3 | 17,895 | 18,790 |
Home Depot, Inc. 2.00% 2019 | 25,500 | 25,543 |
Home Depot, Inc. 4.40% 2021 | 7,500 | 8,415 |
Home Depot, Inc. 3.75% 2024 | 2,200 | 2,294 |
Home Depot, Inc. 4.40% 2045 | 13,075 | 13,216 |
Thomson Reuters Corp. 1.30% 2017 | 1,890 | 1,893 |
Thomson Reuters Corp. 6.50% 2018 | 25,855 | 30,314 |
Thomson Reuters Corp. 4.30% 2023 | 9,805 | 10,293 |
Thomson Reuters Corp. 5.65% 2043 | 1,905 | 2,105 |
Dollar General Corp. 4.125% 2017 | 3,183 | 3,409 |
Dollar General Corp. 1.875% 2018 | 1,817 | 1,803 |
Dollar General Corp. 3.25% 2023 | 41,476 | 39,224 |
Comcast Corp. 5.875% 2018 | 7,320 | 8,445 |
Comcast Corp. 5.15% 2020 | 7,500 | 8,604 |
Comcast Corp. 3.60% 2024 | 3,100 | 3,190 |
Comcast Corp. 4.65% 2042 | 5,035 | 5,232 |
Comcast Corp. 4.75% 2044 | 11,700 | 12,402 |
Cox Communications, Inc. 5.45% 2014 | 3,437 | 3,513 |
Cox Communications, Inc. 2.95% 20233 | 27,930 | 26,550 |
Time Warner Cable Inc. 6.75% 2018 | 11,650 | 13,796 |
Time Warner Cable Inc. 4.00% 2021 | 11,935 | 12,764 |
RCI Banque 3.50% 20183 | 21,000 | 22,008 |
News America Inc. 6.90% 2019 | 12,750 | 15,400 |
News America Inc. 3.00% 2022 | 4,750 | 4,682 |
News America Inc. 6.15% 2037 | 300 | 361 |
News America Inc. 5.40% 2043 | 1,000 | 1,118 |
DISH DBS Corp. 4.25% 2018 | 13,900 | 14,491 |
Toyota Motor Credit Corp. 0.875% 2015 | 11,000 | 11,067 |
Toyota Motor Credit Corp. 2.75% 2021 | 2,000 | 2,018 |
Volkswagen International Finance NV 4.00% 20203 | 11,650 | 12,643 |
Viacom Inc. 4.25% 2023 | 2,735 | 2,873 |
Viacom Inc. 5.85% 2043 | 7,100 | 8,173 |
Carnival Corp. 3.95% 2020 | 10,375 | 10,979 |
Macy’s Retail Holdings, Inc. 7.875% 20154 | 9,891 | 10,627 |
Grupo Televisa, SAB 6.625% 2040 | 5,200 | 6,401 |
Grupo Televisa, SAB 7.25% 2043 | MXN25,290 | 1,698 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer discretionary (continued) | (000) | (000) |
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20203 | $7,350 | $ 7,846 |
Burger King Corp 0%/11.00% 20193,8 | 8,075 | 7,510 |
Seminole Tribe of Florida 7.804% 20203,5 | 6,440 | 7,309 |
Mohegan Tribal Gaming Authority 11.00% 20183,4,7 | 6,750 | 6,813 |
Caesars Entertainment Operating Co. 11.25% 2017 | 5,295 | 4,871 |
Caesars Entertainment Operating Co. 9.00% 2020 | 2,000 | 1,682 |
MGM Resorts International 6.625% 2015 | 2,600 | 2,736 |
MGM Resorts International 8.625% 2019 | 3,000 | 3,589 |
Playa Resorts Holding BV, Term Loan B, 4.00% 20194,5,6 | 1,067 | 1,070 |
Playa Resorts Holding BV 8.00% 20203 | 4,525 | 4,898 |
CBS Corp. 1.95% 2017 | 5,000 | 5,086 |
Neiman Marcus, Term Loan B, 4.25% 20204,5,6 | 920 | 920 |
Neiman Marcus Group LTD Inc. 8.00% 20213 | 1,500 | 1,624 |
Neiman Marcus Group LTD Inc. 8.75% 20213,4,7 | 1,965 | 2,152 |
Stackpole Intl. 7.75% 20213 | 4,000 | 4,200 |
Hilton Worldwide, Term Loan B, 3.50% 20204,5,6 | 2,373 | 2,372 |
Hilton Hotels Corp. 5.625% 20213 | 1,000 | 1,064 |
Seneca Gaming Corp. 8.25% 20183 | 2,775 | 2,962 |
Toys “R” Us Property Co. II, LLC 8.50% 2017 | 2,750 | 2,822 |
Warner Music Group 6.00% 20213 | 2,520 | 2,614 |
Walt Disney Co. 1.85% 2019 | 2,400 | 2,386 |
Six Flags Entertainment Corp. 5.25% 20213 | 2,000 | 2,055 |
Dynacast International LLC 9.25% 2019 | 1,825 | 2,017 |
UPC Germany GmbH 9.625% 2019 | €1,250 | 1,854 |
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | $ 1,630 | 1,767 |
Cooper-Standard Holdings Inc., Term Loan B, 4.00% 20214,5,6 | 1,400 | 1,401 |
Michaels Stores, Inc. 5.875% 20203 | 375 | 384 |
NCL Corp. Ltd. 5.00% 2018 | 50 | 52 |
779,316 | ||
Consumer staples 2.82% | ||
Wal-Mart Stores, Inc. 2.875% 2015 | 11,550 | 11,779 |
Wal-Mart Stores, Inc. 2.80% 2016 | 11,500 | 11,969 |
Wal-Mart Stores, Inc. 1.00% 2017 | 11,910 | 11,942 |
Wal-Mart Stores, Inc. 5.80% 2018 | 11,095 | 12,800 |
Wal-Mart Stores, Inc. 3.30% 2024 | 8,985 | 9,093 |
Wal-Mart Stores, Inc. 4.75% 2043 | 6,675 | 7,218 |
Wal-Mart Stores, Inc. 4.30% 2044 | 11,580 | 11,723 |
Altria Group, Inc. 9.25% 2019 | 4,392 | 5,842 |
Altria Group, Inc. 4.75% 2021 | 4,850 | 5,356 |
Altria Group, Inc. 2.85% 2022 | 6,800 | 6,571 |
Altria Group, Inc. 2.95% 2023 | 16,500 | 15,817 |
Altria Group, Inc. 4.00% 2024 | 3,600 | 3,704 |
Altria Group, Inc. 9.95% 2038 | 6,350 | 10,557 |
Altria Group, Inc. 10.20% 2039 | 4,000 | 6,794 |
Altria Group, Inc. 4.50% 2043 | 9,000 | 8,695 |
Altria Group, Inc. 5.375% 2044 | 11,700 | 12,843 |
Anheuser-Busch InBev NV 3.625% 2015 | 25,250 | 25,903 |
Anheuser-Busch InBev NV 4.125% 2015 | 32,375 | 33,027 |
Anheuser-Busch InBev NV 3.70% 2024 | 7,000 | 7,194 |
Coca-Cola Co. 1.50% 2015 | 18,970 | 19,259 |
Coca-Cola Co. 1.80% 2016 | 10,500 | 10,752 |
Coca-Cola Co. 2.45% 2020 | 2,900 | 2,919 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer staples (continued) | (000) | (000) |
Coca-Cola Co. 3.15% 2020 | $ 4,190 | $ 4,405 |
Coca-Cola Co. 3.20% 2023 | 28,325 | 28,671 |
ConAgra Foods, Inc. 1.30% 2016 | 9,630 | 9,713 |
ConAgra Foods, Inc. 1.90% 2018 | 19,775 | 19,838 |
ConAgra Foods, Inc. 3.20% 2023 | 28,940 | 27,993 |
Pernod Ricard SA 2.95% 20173 | 15,000 | 15,606 |
Pernod Ricard SA 4.45% 20223 | 34,850 | 37,196 |
Reynolds American Inc. 3.25% 2022 | 30,060 | 29,038 |
Reynolds American Inc. 4.85% 2023 | 7,750 | 8,315 |
Reynolds American Inc. 4.75% 2042 | 5,000 | 4,778 |
Reynolds American Inc. 6.15% 2043 | 8,150 | 9,352 |
Philip Morris International Inc. 1.875% 2019 | 15,975 | 15,942 |
Philip Morris International Inc. 2.90% 2021 | 9,200 | 9,286 |
Philip Morris International Inc. 2.50% 2022 | 1,600 | 1,552 |
Philip Morris International Inc. 2.625% 2023 | 2,500 | 2,431 |
Philip Morris International Inc. 3.60% 2023 | 18,480 | 19,122 |
WM. Wrigley Jr. Co 2.40% 20183 | 1,025 | 1,042 |
WM. Wrigley Jr. Co 3.375% 20203 | 42,300 | 43,849 |
SABMiller Holdings Inc. 2.45% 20173 | 11,875 | 12,243 |
SABMiller Holdings Inc. 2.20% 20183 | 13,700 | 13,856 |
SABMiller Holdings Inc. 3.75% 20223 | 12,030 | 12,471 |
Kraft Foods Inc. 1.625% 2015 | 6,120 | 6,184 |
Kraft Foods Inc. 2.25% 2017 | 5,300 | 5,444 |
Kraft Foods Inc. 3.50% 2022 | 12,200 | 12,542 |
Kraft Foods Inc. 6.50% 2040 | 2,000 | 2,541 |
Kraft Foods Inc. 5.00% 2042 | 6,600 | 7,071 |
Kroger Co. 3.90% 2015 | 10,000 | 10,398 |
Kroger Co. 3.85% 2023 | 725 | 746 |
Kroger Co. 4.00% 2024 | 3,745 | 3,891 |
Kroger Co. 5.00% 2042 | 2,750 | 2,917 |
Kroger Co. 5.15% 2043 | 9,905 | 10,723 |
CVS Caremark Corp. 2.25% 2018 | 2,500 | 2,534 |
CVS Caremark Corp. 4.00% 2023 | 14,600 | 15,299 |
CVS Caremark Corp. 5.30% 2043 | 4,075 | 4,617 |
British American Tobacco International Finance PLC 9.50% 20183 | 15,750 | 20,485 |
Mondelez International, Inc. 4.00% 2024 | 19,000 | 19,707 |
Delhaize Group 6.50% 2017 | 16,205 | 18,283 |
Tesco PLC 5.50% 20173 | 12,459 | 13,983 |
Imperial Tobacco Finance PLC 2.05% 20183 | 8,050 | 8,104 |
Imperial Tobacco Finance PLC 3.50% 20233 | 4,673 | 4,636 |
PepsiCo, Inc. 2.50% 2016 | 7,500 | 7,765 |
Smithfield Foods, Inc. 7.75% 2017 | 750 | 866 |
Smithfield Foods, Inc. 5.25% 20183 | 375 | 393 |
Smithfield Foods, Inc. 6.625% 2022 | 1,370 | 1,507 |
Del Monte Corp. 7.625% 2019 | 1,923 | 2,006 |
Constellation Brands, Inc. 8.375% 2014 | 550 | 569 |
Constellation Brands, Inc. 7.25% 2017 | 750 | 861 |
Constellation Brands, Inc. 6.00% 2022 | 500 | 564 |
C&S Group Enterprises LLC 5.375% 20223 | 1,950 | 1,957 |
Ingles Markets, Inc. 5.75% 2023 | 1,600 | 1,628 |
Stater Bros. Holdings Inc., Term Loan B, 4.75% 20214,5,6 | 750 | 755 |
Procter & Gamble Co. 3.50% 2015 | 150 | 153 |
767,585 | ||
Bonds, notes & other debt instruments | ||
Corporate bonds & notes (continued) | Principal amount | Value |
Utilities 2.58% | (000) | (000) |
PacifiCorp., First Mortgage Bonds, 5.65% 2018 | $ 31 | $ 35 |
MidAmerican Energy Holdings Co. 5.75% 2018 | 35,700 | 40,887 |
MidAmerican Energy Co. 2.40% 2019 | 2,344 | 2,390 |
Nevada Power Co., General and Refunding Mortgage Notes, Series V, 7.125% 2019 | 9,850 | 12,066 |
NV Energy, Inc 6.25% 2020 | 34,899 | 41,234 |
PacifiCorp., First Mortgage Bonds, 2.95% 2023 | 1,300 | 1,286 |
MidAmerican Energy Holdings Co. 3.75% 2023 | 10,810 | 11,152 |
MidAmerican Energy Co. 3.50% 2024 | 2,750 | 2,814 |
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019 | 2,475 | 2,928 |
Consumers Energy Co., First Mortgage Bonds, 6.70% 2019 | 644 | 783 |
CMS Energy Corp. 8.75% 2019 | 13,200 | 17,033 |
Consumers Energy Co. 2.85% 2022 | 12,500 | 12,528 |
CMS Energy Corp. 5.05% 2022 | 15,719 | 17,887 |
CMS Energy Corp. 3.875% 2024 | 15,995 | 16,645 |
CMS Energy Corp. 4.875% 2044 | 5,510 | 5,813 |
Niagara Mohawk Power 3.553% 20143 | 14,850 | 14,963 |
National Grid PLC 6.30% 2016 | 35,805 | 39,668 |
Pacific Gas and Electric Co. 8.25% 2018 | 4,000 | 5,002 |
PG&E Corp. 2.40% 2019 | 6,415 | 6,479 |
Pacific Gas and Electric Co. 2.45% 2022 | 7,500 | 7,179 |
Pacific Gas and Electric Co. 3.25% 2023 | 16,950 | 16,952 |
Pacific Gas and Electric Co. 3.85% 2023 | 5,889 | 6,139 |
Pacific Gas and Electric Co. 3.75% 2024 | 6,495 | 6,724 |
Pacific Gas and Electric Co. 4.75% 2044 | 2,500 | 2,667 |
Puget Sound Energy, Inc., First Lien, 6.50% 2020 | 9,259 | 11,176 |
Puget Sound Energy, Inc., First Lien, 6.00% 2021 | 12,805 | 15,107 |
Puget Sound Energy, Inc., First Lien, 5.625% 2022 | 16,378 | 19,035 |
Virginia Electric and Power Co., Series B, 5.95% 2017 | 10,000 | 11,489 |
Virginia Electric and Power Co. 1.20% 2018 | 9,600 | 9,489 |
Virginia Electric and Power Co. 2.95% 2022 | 3,535 | 3,578 |
Virginia Electric and Power Co. 3.45% 2024 | 6,310 | 6,464 |
Virginia Electric and Power Co. 4.45% 2044 | 9,500 | 9,923 |
Progress Energy, Inc. 7.05% 2019 | 8,340 | 10,188 |
Duke Energy Corp. 3.95% 2023 | 4,800 | 5,056 |
Duke Energy Corp. 3.75% 2024 | 17,107 | 17,596 |
Progress Energy, Inc. 7.00% 2031 | 750 | 995 |
Progress Energy, Inc. 7.75% 2031 | 3,920 | 5,548 |
National Rural Utilities Cooperative Finance Corp. 10.375% 2018 | 21,035 | 28,361 |
National Rural Utilities Cooperative Finance Corp. 3.40% 2023 | 4,500 | 4,580 |
Iberdrola Finance Ireland 3.80% 20143 | 13,099 | 13,179 |
Scottish Power PLC 5.375% 2015 | 12,000 | 12,384 |
Iberdrola Finance Ireland 5.00% 20193 | 4,000 | 4,505 |
Teco Finance, Inc. 4.00% 2016 | 2,685 | 2,827 |
Teco Finance, Inc. 5.15% 2020 | 11,923 | 13,482 |
Tampa Electric Co. 2.60% 2022 | 4,575 | 4,430 |
Tampa Electric Co. 4.10% 2042 | 5,060 | 4,948 |
Tampa Electric Co. 4.35% 2044 | 1,455 | 1,490 |
Public Service Co. of Colorado 5.80% 2018 | 9,606 | 11,034 |
Public Service Co. of Colorado 3.20% 2020 | 5,221 | 5,401 |
Xcel Energy Inc. 4.70% 2020 | 3,125 | 3,495 |
Northern States Power Co. 5.25% 2035 | 5,000 | 5,839 |
American Electric Power Co. 1.65% 2017 | 7,900 | 7,947 |
American Electric Power Co. 2.95% 2022 | 14,416 | 14,028 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Utilities (continued) | (000) | (000) |
E.ON International Finance BV 5.80% 20183 | $16,500 | $ 18,848 |
Enel Finance International SA 3.875% 20143 | 1,235 | 1,245 |
Enel Finance International SA 5.125% 20193 | 2,000 | 2,254 |
Enel Finance International SA 6.00% 20393 | 2,210 | 2,523 |
Enel Società per Azioni 8.75% 20733,4 | 9,500 | 11,252 |
Entergy Corp. 4.70% 2017 | 9,900 | 10,687 |
Entergy Arkansas, INC 3.05% 2023 | 6,100 | 6,035 |
Cleveland Electric Illuminating Co. 8.875% 2018 | 12,864 | 16,343 |
Eskom Holdings SOC Ltd. 5.75% 2021 | 11,000 | 11,344 |
CEZ, a s 4.25% 20223 | 7,230 | 7,590 |
TXU, Term Loan, 4.651% 20174,5,6,9 | 8,273 | 6,867 |
Israel Electric Corp. Ltd. 8.10% 20963 | 6,250 | 6,672 |
Colbun SA 6.00% 20203 | 5,400 | 6,019 |
PSEG Power LLC 2.75% 2016 | 3,140 | 3,261 |
Public Service Electric and Gas Co., Series E, 5.30% 2018 | 2,190 | 2,487 |
EDP Finance BV 5.25% 20213 | 5,000 | 5,313 |
Electricité de France SA 1.15% 20173 | 3,000 | 3,002 |
Electricité de France SA 4.875% 20443 | 1,850 | 1,977 |
Abu Dhabi National Energy Co. PJSC (TAQA) 5.875% 20213 | 1,055 | 1,240 |
Abu Dhabi National Energy Co. PJSC (TAQA) 3.625% 20233 | 610 | 605 |
Abu Dhabi National Energy Co. PJSC (TAQA) 6.50% 2036 | 1,500 | 1,815 |
Abu Dhabi National Energy Co. PJSC (TAQA) 6.50% 20363 | 1,000 | 1,210 |
Empresa Nacional de Electricidad SA 8.625% 2015 | 3,000 | 3,220 |
Empresa Nacional de Electricidad SA 4.25% 2024 | 1,500 | 1,511 |
Midwest Generation, LLC, Series B, 8.56% 20165,9,10 | 3,569 | 3,676 |
AES Corp. 8.00% 2020 | 2,350 | 2,838 |
Puget Sound Energy Inc. 6.724% 2036 | 2,000 | 2,721 |
Comision Federal de Electricidad 4.875% 20243 | 2,500 | 2,675 |
Veolia Environnement 6.00% 2018 | 1,000 | 1,131 |
Veolia Environnement 6.75% 2038 | 500 | 609 |
Tri-State Generation and Transmission Assn. Inc., Pass Through Trust, Series 2003-A, 6.04% 20183,5 | 1,230 | 1,290 |
703,088 | ||
Industrials 2.45% | ||
General Electric Co. 0.85% 2015 | 13,000 | 13,068 |
General Electric Capital Corp., Series A, 2.25% 2015 | 19,500 | 19,949 |
General Electric Capital Corp. 1.50% 2016 | 6,718 | 6,822 |
General Electric Capital Corp. 2.95% 2016 | 2,790 | 2,910 |
General Electric Capital Corp. 2.30% 2017 | 5,000 | 5,167 |
General Electric Capital Corp. 2.45% 2017 | 13,000 | 13,461 |
General Electric Corp. 5.25% 2017 | 4,377 | 4,941 |
General Electric Capital Corp., Series A, 6.00% 2019 | 10,500 | 12,450 |
General Electric Co. 2.70% 2022 | 15,500 | 15,242 |
General Electric Capital Corp. 3.10% 2023 | 33,100 | 32,884 |
General Electric Co. 3.375% 2024 | 5,695 | 5,812 |
General Electric Co. 4.125% 2042 | 4,000 | 3,960 |
General Electric Co. 4.50% 2044 | 3,200 | 3,342 |
Burlington Northern Santa Fe LLC 5.65% 2017 | 12,500 | 14,041 |
Burlington Northern Santa Fe LLC 5.75% 2018 | 6,535 | 7,498 |
Burlington Northern Santa Fe LLC 3.45% 2021 | 2,800 | 2,913 |
Burlington Northern Santa Fe LLC 3.05% 2022 | 8,290 | 8,279 |
Burlington Northern Santa Fe LLC 3.00% 2023 | 11,580 | 11,407 |
Burlington Northern Santa Fe LLC 3.85% 2023 | 2,000 | 2,086 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Industrials (continued) | (000) | (000) |
Burlington Northern Santa Fe LLC 3.75% 2024 | $ 4,285 | $ 4,428 |
Burlington Northern Santa Fe LLC 4.45% 2043 | 6,450 | 6,428 |
Burlington Northern Santa Fe LLC 4.90% 2044 | 15,290 | 16,381 |
Continental Airlines, Inc., Series 1997-1, Class A, 7.461% 20165 | 506 | 526 |
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20175 | 60 | 64 |
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20185 | 539 | 596 |
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20185 | 24 | 26 |
Continental Airlines, Inc., Series 1998-1, Class A, 6.648% 20195 | 7,040 | 7,563 |
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20195 | 12,067 | 12,934 |
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20195 | 165 | 182 |
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20205 | 6,658 | 7,472 |
Continental Airlines, Inc., Series 1999-1, Class B, 6.795% 20205 | 1,854 | 1,975 |
Continental Airlines, Inc., Series 1999-2, Class A-1, 7.256% 20215 | 209 | 238 |
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20213,5 | 722 | 787 |
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20225 | 10,706 | 11,884 |
Continental Airlines, Inc., Series 2007-1, Class B, 6.903% 20225 | 3,652 | 3,965 |
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20225 | 11,774 | 13,488 |
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20225 | 9,009 | 10,450 |
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20225 | 458 | 490 |
Volvo Treasury AB 5.95% 20153 | 53,193 | 55,238 |
US Investigations Services, Inc., Term Loan B, 5.00% 20154,5,6 | 515 | 510 |
US Investigations Services, Inc., Term Loan D, 7.75% 20154,5,6 | 4,872 | 4,854 |
US Investigations Services, Inc. 10.50% 20153 | 7,200 | 6,498 |
US Investigations Services, Inc. 11.75% 20163 | 6,610 | 5,486 |
Altegrity, Inc. 9.50% 20193 | 6,175 | 6,175 |
European Aeronautic Defence and Space Company 2.70% 20233 | 21,400 | 20,668 |
Norfolk Southern Corp. 5.75% 2016 | 3,390 | 3,643 |
Norfolk Southern Corp. 3.00% 2022 | 15,250 | 15,267 |
United Technologies Corp. 1.80% 2017 | 3,660 | 3,740 |
United Technologies Corp. 4.50% 2042 | 14,195 | 14,900 |
Northwest Airlines, Inc., Term Loan A, 1.99% 20184,5,6 | 16,216 | 15,486 |
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20245 | 1,351 | 1,592 |
Union Pacific Corp. 5.75% 2017 | 12,250 | 14,032 |
Union Pacific Corp. 2.25% 2019 | 2,265 | 2,307 |
Canadian National Railway Co. 1.45% 2016 | 6,090 | 6,177 |
Canadian National Railway Co. 2.85% 2021 | 10,000 | 10,048 |
Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019 | 2,890 | 3,053 |
Navios Maritime Acquisition Corp. and Navios Acquisition Finance (US) Inc. 8.125% 20213 | 7,380 | 7,749 |
Navios Maritime Holdings Inc. 7.375% 20223 | 5,050 | 5,214 |
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017 | 14,740 | 15,348 |
Jeld-Wen Escrow Corp. 12.25% 20173 | 13,500 | 14,648 |
Honeywell International Inc. 5.00% 2019 | 8,725 | 9,922 |
Waste Management, Inc. 2.60% 2016 | 3,330 | 3,447 |
Waste Management, Inc. 4.60% 2021 | 5,455 | 6,041 |
Nortek Inc. 10.00% 2018 | 4,100 | 4,438 |
Nortek Inc. 8.50% 2021 | 4,345 | 4,823 |
CSX Corp. 7.375% 2019 | 7,500 | 9,188 |
HD Supply, Inc. 11.50% 2020 | 7,450 | 8,940 |
Republic Services, Inc. 5.00% 2020 | 5,000 | 5,606 |
Republic Services, Inc. 3.55% 2022 | 500 | 518 |
Republic Services, Inc. 5.70% 2041 | 2,000 | 2,368 |
Euramax International, Inc. 9.50% 2016 | 7,910 | 7,910 |
R.R. Donnelley & Sons Co. 7.25% 2018 | 2,586 | 3,006 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Industrials (continued) | (000) | (000) |
R.R. Donnelley & Sons Co. 7.875% 2021 | $ 650 | $ 751 |
R.R. Donnelley & Sons Co. 7.00% 2022 | 3,600 | 3,987 |
Nielsen Finance LLC and Nielsen Finance Co. 4.50% 2020 | 1,650 | 1,671 |
Nielsen Finance LLC and Nielsen Finance Co. 5.50% 20213 | 3,600 | 3,735 |
BE Aerospace, Inc. 5.25% 2022 | 4,600 | 5,031 |
Raytheon Co. 6.75% 2018 | 4,030 | 4,721 |
Red de Carreteras de Occidente 9.00% 20285 | MXN61,570 | 4,562 |
Brunswick Rail Finance Ltd. 6.50% 2017 | $ 3,240 | 3,276 |
Brunswick Rail Finance Ltd. 6.50% 20173 | 1,090 | 1,102 |
ADT Corp. 4.125% 2019 | 3,875 | 3,909 |
Esterline Technologies Corp. 7.00% 2020 | 3,475 | 3,736 |
Ply Gem Industries, Inc. 6.50% 20223 | 3,800 | 3,681 |
TRAC Intermodal 11.00% 2019 | 3,200 | 3,680 |
CEVA Group PLC, Term Loan B, 6.50% 20214,5,6 | 1,278 | 1,255 |
CEVA Group PLC, Term Loan, 6.50% 20214,5,6 | 926 | 910 |
CEVA Group PLC, Letter of Credit, 6.50% 20214,5,6 | 881 | 865 |
CEVA Group PLC, Term Loan, 6.50% 20214,5,6 | 160 | 157 |
CEVA Group PLC 7.00% 20213 | 175 | 181 |
CEVA Group PLC 9.00% 20213 | 200 | 207 |
ENA Norte Trust 4.95% 20283,5 | 3,248 | 3,370 |
Far East Capital Limited SA 8.00% 20183 | 1,415 | 1,168 |
Far East Capital Limited SA 8.75% 20203 | 2,285 | 1,874 |
Silver II Borrower S.C.A./Silver II U.S. Holdings, LLC 7.75% 20203 | 2,650 | 2,849 |
AerCap Holdings NV 2.75% 20173 | 2,200 | 2,217 |
Safway Group Holding 7.00% 20183 | 2,000 | 2,130 |
Gardner Denver, Inc. Term Loan B, 4.25% 20204,5,6 | 2,070 | 2,071 |
AAF Holdings LLC 12.00% 20193,4,5,7 | 2,000 | 2,062 |
ABB Finance (USA) Inc. 2.875% 2022 | 2,000 | 1,988 |
American Airlines, Inc., Series 2013-2, Class A, 4.95% 20243,5 | 1,820 | 1,979 |
Watco Companies 6.375% 20233 | 1,805 | 1,850 |
Builders Firstsource 7.625% 20213 | 1,650 | 1,770 |
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 5.00% 20184,5,6 | 1,008 | 1,021 |
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 5.00% 20184,5,6 | 724 | 733 |
LMI Aerospace Inc. 7.375% 20193 | 1,500 | 1,541 |
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 0.009% 20154,5,6,10 | 1,465 | 1,392 |
Eletson Holdings Inc. 9.625% 20223 | 1,125 | 1,212 |
ERAC USA Finance Co. 5.625% 20423 | 1,000 | 1,138 |
Allegiant Travel Co. 5.50% 2019 | 850 | 868 |
HDTFS Inc. 5.875% 2020 | 800 | 840 |
ADS Waste Escrow 8.25% 2020 | 650 | 704 |
667,143 | ||
Telecommunication services 2.25% | ||
Verizon Communications Inc. 3.00% 2016 | 24,000 | 24,891 |
Verizon Communications Inc. 0.63% 20174 | 12,000 | 12,023 |
Verizon Communications Inc. 1.35% 2017 | 17,000 | 17,004 |
Verizon Communications Inc. 3.45% 2021 | 2,110 | 2,183 |
Verizon Communications Inc. 5.15% 2023 | 45,840 | 51,367 |
Verizon Communications Inc. 4.15% 2024 | 11,405 | 11,925 |
Verizon Communications Inc. 5.05% 2034 | 17,256 | 18,449 |
Verizon Communications Inc. 6.55% 2043 | 76,552 | 96,530 |
Deutsche Telekom International Finance BV 4.875% 2014 | 16,250 | 16,260 |
Deutsche Telekom International Finance BV 3.125% 20163 | 11,650 | 12,105 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Telecommunication services (continued) | (000) | (000) |
Deutsche Telekom International Finance BV 2.25% 20173 | $ 9,550 | $ 9,802 |
Deutsche Telekom International Finance BV 9.25% 2032 | 4,994 | 7,935 |
SBC Communications Inc. 5.10% 2014 | 11,848 | 11,952 |
AT&T Inc. 0.90% 2016 | 10,000 | 10,031 |
AT&T Inc. 1.40% 2017 | 12,015 | 11,972 |
AT&T Inc. 4.80% 2044 | 5,328 | 5,468 |
Sprint Nextel Corp. 8.375% 2017 | 5,075 | 5,944 |
Sprint Nextel Corp. 9.125% 2017 | 2,000 | 2,347 |
Sprint Nextel Corp. 7.00% 2020 | 6,700 | 7,445 |
Sprint Nextel Corp. 11.50% 2021 | 5,050 | 6,843 |
Sprint Corp. 7.875% 20233 | 13,875 | 15,471 |
NII Capital Corp. 10.00% 2016 | 10,100 | 3,182 |
NII Capital Corp. 7.875% 20193 | 7,350 | 6,413 |
NII Capital Corp. 8.875% 2019 | 9,975 | 3,990 |
NII Capital Corp. 11.375% 20193 | 17,825 | 15,909 |
NII Capital Corp. 7.625% 2021 | 17,655 | 5,164 |
Telecom Italia Capital SA 6.999% 2018 | 13,887 | 16,005 |
Telecom Italia Capital SA 7.175% 2019 | 10,210 | 11,850 |
Telefónica Emisiones, SAU 3.992% 2016 | 14,500 | 15,187 |
Telefónica Emisiones, SAU 3.192% 2018 | 10,500 | 10,982 |
Wind Acquisition SA 7.25% 20183 | 3,575 | 3,781 |
Wind Acquisition SA 7.25% 20183 | 1,100 | 1,163 |
Wind Acquisition SA 4.75% 20203 | 5,400 | 5,454 |
Wind Acquisition SA 7.375% 20213 | 13,625 | 14,579 |
LightSquared, Term Loan B, 12.00% 20145,6,7,9 | 18,669 | 24,456 |
T-Mobile US, Inc. 6.542% 2020 | 5,250 | 5,690 |
MetroPCS Wireless, Inc. 6.25% 2021 | 10,925 | 11,649 |
MetroPCS Wireless, Inc. 6.625% 2023 | 5,950 | 6,485 |
France Télécom 2.125% 2015 | 4,200 | 4,266 |
Orange SA 2.75% 2019 | 12,838 | 13,163 |
France Télécom 4.125% 2021 | 2,025 | 2,177 |
Frontier Communications Corp. 8.125% 2018 | 3,675 | 4,318 |
Frontier Communications Corp. 9.25% 2021 | 2,450 | 2,943 |
Frontier Communications Corp. 7.625% 2024 | 11,400 | 12,326 |
Digicel Group Ltd. 8.25% 20203 | 8,150 | 8,924 |
Digicel Group Ltd. 6.00% 20213 | 4,465 | 4,621 |
Digicel Group Ltd. 7.125% 20223 | 1,975 | 2,064 |
Trilogy International Partners, LLC 10.25% 20163 | 9,250 | 9,551 |
Numerical Group SA, First Lien, 4.875% 20193 | 6,825 | 7,013 |
Numerical Group SA, First Lien, 6.00% 20223 | 1,925 | 2,004 |
Intelsat Jackson Holding Co. 7.25% 2020 | 3,500 | 3,780 |
Intelsat Jackson Holding Co. 6.625% 2022 | 2,880 | 3,020 |
SoftBank Corp. 4.50% 20203 | 3,600 | 3,672 |
Altice Finco SA, First Lien, 7.75% 20223 | 3,225 | 3,451 |
British Telecommunications PLC 2.35% 2019 | 2,745 | 2,770 |
América Móvil, SAB de CV 8.46% 2036 | MXN27,000 | 2,058 |
Level 3 Communications, Inc. 11.875% 2019 | $ 1,000 | 1,115 |
613,122 | ||
Materials 1.09% | ||
Xstrata Canada Financial Corp. 3.60% 20173 | 9,750 | 10,234 |
Glencore Xstrata LLC 1.586% 20193,4 | 6,275 | 6,332 |
Glencore Xstrata LLC 2.50% 20193 | 12,500 | 12,480 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Materials (continued) | (000) | (000) |
Xstrata Canada Financial Corp. 4.95% 20213 | $20,315 | $ 21,941 |
Glencore Xstrata LLC 4.125% 20233 | 9,745 | 9,800 |
Rio Tinto Finance (USA) Ltd. 1.375% 2016 | 2,000 | 2,022 |
Rio Tinto Finance (USA) Ltd. 2.25% 2016 | 10,500 | 10,831 |
Rio Tinto Finance (USA) Ltd. 1.625% 2017 | 11,000 | 11,136 |
Rio Tinto Finance (USA) Ltd. 9.00% 2019 | 10,170 | 13,345 |
Monsanto Co. 2.75% 2021 | 2,555 | 2,557 |
Monsanto Co. 3.375% 2024 | 7,400 | 7,460 |
Monsanto Co. 4.40% 2044 | 6,655 | 6,685 |
Monsanto Co. 4.70% 2064 | 9,400 | 9,461 |
International Paper Co. 7.95% 2018 | 4,500 | 5,507 |
International Paper Co. 4.75% 2022 | 1,500 | 1,656 |
International Paper Co. 3.65% 2024 | 8,900 | 8,930 |
First Quantum Minerals Ltd. 6.75% 20203 | 7,250 | 7,504 |
First Quantum Minerals Ltd. 7.00% 20213 | 5,500 | 5,686 |
FMG Resources 6.00% 20173 | 4,105 | 4,251 |
FMG Resources 6.875% 20183 | 8,365 | 8,804 |
Reynolds Group Inc. 5.75% 2020 | 10,855 | 11,506 |
Newcrest Finance Pty Ltd. 4.45% 20213 | 11,305 | 11,063 |
E.I. du Pont de Nemours and Co. 5.25% 2016 | 500 | 552 |
E.I. du Pont de Nemours and Co. 2.80% 2023 | 10,000 | 9,783 |
Mosaic Co. 4.25% 2023 | 9,500 | 10,043 |
Cliffs Natural Resources Inc. 4.875% 2021 | 9,920 | 9,794 |
CEMEX SAB de CV 5.875% 20193 | 6,000 | 6,285 |
CEMEX Finance LLC 9.375% 20223 | 2,325 | 2,746 |
Ecolab Inc. 3.00% 2016 | 7,320 | 7,660 |
Ecolab Inc. 5.50% 2041 | 750 | 877 |
Dow Chemical Co. 5.70% 2018 | 1,004 | 1,146 |
Dow Chemical Co. 3.00% 2022 | 7,500 | 7,386 |
ArcelorMittal 6.00% 20214 | 735 | 798 |
ArcelorMittal 7.25% 20414 | 6,995 | 7,467 |
Ryerson Inc. 11.25% 2018 | 5,325 | 5,964 |
Holcim Ltd. 6.00% 20193 | 1,607 | 1,864 |
Holcim Ltd. 5.15% 20233 | 3,315 | 3,663 |
JMC Steel Group Inc. 8.25% 20183 | 4,825 | 4,946 |
Walter Energy, Inc. 9.50% 20193 | 3,200 | 3,260 |
Barrick Gold Corp. 3.85% 2022 | 3,000 | 2,988 |
LSB Industries, Inc. 7.75% 2019 | 2,500 | 2,688 |
Yara International ASA 7.875% 20193 | 2,175 | 2,666 |
BHP Billiton Finance (USA) Ltd. 5.00% 2043 | 2,300 | 2,547 |
Georgia-Pacific Corp. 5.40% 20203 | 2,000 | 2,311 |
OMNOVA Solutions Inc. 7.875% 2018 | 2,000 | 2,107 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV), Term Loan B, 4.00% 20204,5,6 | 1,187 | 1,189 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV) 7.375% 20213 | 750 | 821 |
Packaging Corp. of America 4.50% 2023 | 1,585 | 1,700 |
Potash Corp. of Saskatchewan Inc. 5.875% 2036 | 1,250 | 1,504 |
Georgia Gulf Corp. 4.875% 2023 | 1,065 | 1,064 |
Momentive Performance Materials Inc., Term Loan B, 4.00% 20154,5,6 | 550 | 552 |
Praxair, Inc. 4.625% 2015 | 500 | 516 |
Georgia Gulf Corp. 4.625% 2021 | 250 | 249 |
296,327 | ||
Bonds, notes & other debt instruments | ||
Corporate bonds & notes (continued) | Principal amount | Value |
Information technology 0.74% | (000) | (000) |
Oracle Corp. 2.25% 2019 | $10,000 | $ 9,989 |
Oracle Corp. 2.80% 2021 | 33,600 | 33,551 |
Oracle Corp. 3.40% 2024 | 7,500 | 7,483 |
Oracle Corp. 4.50% 2044 | 5,000 | 4,998 |
Avago Technologies Ltd., Term Loan B, 3.75% 20214,5,6 | 30,050 | 30,189 |
First Data Corp. 6.75% 20203 | 1,200 | 1,302 |
First Data Corp. 8.25% 20213 | 2,393 | 2,632 |
First Data Corp. 11.75% 2021 | 9,415 | 11,204 |
First Data Corp. 12.625% 2021 | 2,295 | 2,831 |
First Data Corp. 8.75% 20223,4,7 | 2,251 | 2,496 |
SRA International, Inc., Term Loan B, 6.50% 20184,5,6 | 12,072 | 12,132 |
SRA International, Inc. 11.00% 2019 | 7,530 | 8,114 |
International Business Machines Corp. 2.00% 2016 | 12,500 | 12,793 |
International Business Machines Corp. 3.625% 2024 | 4,335 | 4,454 |
Xerox Corp. 2.95% 2017 | 11,535 | 12,047 |
Xerox Corp. 2.75% 2019 | 5,000 | 5,098 |
Freescale Semiconductor, Inc. 5.00% 20213 | 10,520 | 10,836 |
Freescale Semiconductor, Inc. 6.00% 20223 | 1,750 | 1,868 |
Alcatel-Lucent USA Inc. 4.625% 20173 | 4,075 | 4,228 |
Alcatel-Lucent USA Inc. 6.75% 20203 | 1,935 | 2,070 |
Alcatel-Lucent USA Inc. 8.875% 20203 | 900 | 1,024 |
National Semiconductor Corp. 6.60% 2017 | 6,000 | 6,949 |
Samsung Electronics America, Inc. 1.75% 20173 | 4,500 | 4,523 |
NXP BV and NXP Funding LLC 3.75% 20183 | 4,100 | 4,131 |
Serena Software, Inc. Term Loan B 7.50% 20204,5,6 | 2,600 | 2,630 |
Ceridian LLC / Comdata Inc. 8.125% 20173 | 1,025 | 1,038 |
Compucom Systems Inc., 7.00% 20213 | 700 | 714 |
201,324 | ||
Total corporate bonds & notes | 7,978,244 | |
Mortgage-backed obligations 25.58% | ||
Federal agency mortgage-backed obligations5 20.57% | ||
Fannie Mae 3.307% 20174 | 3,928 | 4,154 |
Fannie Mae, Series 2002-15, Class PG, 6.00% 2017 | 801 | 835 |
Fannie Mae 11.046% 20204 | 33 | 38 |
Fannie Mae 5.00% 2023 | 2,064 | 2,237 |
Fannie Mae 5.50% 2023 | 11,484 | 12,512 |
Fannie Mae 6.00% 2023 | 296 | 325 |
Fannie Mae 4.50% 2024 | 6,539 | 7,009 |
Fannie Mae 4.50% 2025 | 8,115 | 8,694 |
Fannie Mae 4.50% 2025 | 5,325 | 5,709 |
Fannie Mae 4.50% 2025 | 5,149 | 5,520 |
Fannie Mae, Series 2001-4, Class GA, 9.467% 20254 | 103 | 118 |
Fannie Mae, Series 2001-4, Class NA, 10.353% 20254 | 135 | 150 |
Fannie Mae 2.402% 20264 | 196 | 203 |
Fannie Mae 6.00% 2026 | 5,280 | 5,944 |
Fannie Mae 2.50% 2027 | 25,855 | 26,300 |
Fannie Mae 2.50% 2027 | 18,495 | 18,813 |
Fannie Mae 2.50% 2027 | 13,243 | 13,471 |
Fannie Mae 2.50% 2027 | 13,202 | 13,429 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Federal agency mortgage-backed obligations5 (continued) | (000) | (000) |
Fannie Mae 2.50% 2027 | $13,143 | $13,369 |
Fannie Mae 2.50% 2027 | 11,350 | 11,545 |
Fannie Mae 2.50% 2027 | 7,265 | 7,389 |
Fannie Mae 2.50% 2027 | 5,181 | 5,270 |
Fannie Mae 2.50% 2027 | 3,008 | 3,059 |
Fannie Mae 2.50% 2027 | 2,304 | 2,344 |
Fannie Mae 2.50% 2027 | 1,735 | 1,764 |
Fannie Mae 2.50% 2027 | 1,549 | 1,576 |
Fannie Mae 2.50% 2027 | 1,426 | 1,451 |
Fannie Mae 2.50% 2027 | 838 | 853 |
Fannie Mae 2.50% 2027 | 709 | 721 |
Fannie Mae 2.50% 2027 | 703 | 715 |
Fannie Mae 5.50% 2027 | 2,768 | 3,100 |
Fannie Mae 2.50% 2028 | 25,224 | 25,656 |
Fannie Mae 2.50% 2028 | 13,055 | 13,280 |
Fannie Mae 2.50% 2028 | 7,114 | 7,236 |
Fannie Mae 6.00% 2028 | 832 | 940 |
Fannie Mae, Series 1998-W5, Class B3, 6.50% 2028 | 1,049 | 1,041 |
Fannie Mae, Series 2002-W7, Class A-5, 7.50% 2029 | 259 | 302 |
Fannie Mae, Series 2001-25, Class ZA, 6.50% 2031 | 2,037 | 2,275 |
Fannie Mae, Series 2001-20, Class E, 9.56% 20314 | 21 | 24 |
Fannie Mae 6.50% 2032 | 122 | 130 |
Fannie Mae 4.50% 2034 | 28,752 | 31,233 |
Fannie Mae 6.50% 2034 | 495 | 535 |
Fannie Mae, Series 2005-68, Class PG, 5.50% 2035 | 2,274 | 2,561 |
Fannie Mae, Series 2006-51, Class PO, principal only, 0% 2036 | 2,850 | 2,723 |
Fannie Mae, Series 2006-32, Class OA, principal only, 0% 2036 | 2,411 | 2,271 |
Fannie Mae, Series 2006-96, Class OP, principal only, 0% 2036 | 719 | 644 |
Fannie Mae, Series 2006-101, Class PC, 5.50% 2036 | 2,060 | 2,266 |
Fannie Mae, Series 2006-106, Class HG, 6.00% 2036 | 7,516 | 8,467 |
Fannie Mae, Series 2006-43, Class PX, 6.00% 2036 | 4,782 | 5,384 |
Fannie Mae 6.50% 2036 | 3,683 | 4,137 |
Fannie Mae 6.50% 2036 | 2,484 | 2,802 |
Fannie Mae 7.00% 2036 | 756 | 861 |
Fannie Mae 7.00% 2036 | 282 | 287 |
Fannie Mae 7.50% 2036 | 359 | 414 |
Fannie Mae 8.00% 2036 | 356 | 412 |
Fannie Mae, Series 2007-40, Class PT, 5.50% 2037 | 6,867 | 7,526 |
Fannie Mae 6.00% 2037 | 1,583 | 1,769 |
Fannie Mae 6.00% 2037 | 856 | 957 |
Fannie Mae 6.50% 2037 | 2,908 | 3,269 |
Fannie Mae 6.50% 2037 | 2,075 | 2,322 |
Fannie Mae 6.50% 2037 | 1,815 | 1,975 |
Fannie Mae 6.50% 2037 | 156 | 168 |
Fannie Mae 7.00% 2037 | 1,086 | 1,231 |
Fannie Mae 7.00% 2037 | 957 | 1,085 |
Fannie Mae 7.00% 2037 | 770 | 869 |
Fannie Mae 7.00% 2037 | 242 | 265 |
Fannie Mae 7.00% 2037 | 137 | 151 |
Fannie Mae 7.00% 2037 | 120 | 132 |
Fannie Mae 7.50% 2037 | 390 | 450 |
Fannie Mae 7.50% 2037 | 317 | 366 |
Fannie Mae 7.50% 2037 | 256 | 295 |
Fannie Mae 7.50% 2037 | 178 | 205 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Federal agency mortgage-backed obligations5 (continued) | (000) | (000) |
Fannie Mae 7.50% 2037 | $ 166 | $ 191 |
Fannie Mae 7.50% 2037 | 146 | 169 |
Fannie Mae 7.50% 2037 | 124 | 142 |
Fannie Mae 7.50% 2037 | 112 | 130 |
Fannie Mae 7.50% 2037 | 82 | 94 |
Fannie Mae 7.50% 2037 | 66 | 69 |
Fannie Mae 7.50% 2037 | 26 | 30 |
Fannie Mae 8.00% 2037 | 119 | 136 |
Fannie Mae 5.28% 20384 | 322 | 344 |
Fannie Mae 5.50% 2038 | 48 | 54 |
Fannie Mae 6.00% 2038 | 1,548 | 1,741 |
Fannie Mae 6.50% 2038 | 58,694 | 67,207 |
Fannie Mae 3.515% 20394 | 2,551 | 2,686 |
Fannie Mae 3.535% 20394 | 1,685 | 1,770 |
Fannie Mae 3.566% 20394 | 6,578 | 6,936 |
Fannie Mae 3.692% 20394 | 1,660 | 1,733 |
Fannie Mae 3.726% 20394 | 288 | 302 |
Fannie Mae 3.778% 20394 | 1,718 | 1,803 |
Fannie Mae 3.805% 20394 | 804 | 842 |
Fannie Mae 3.942% 20394 | 1,144 | 1,204 |
Fannie Mae 3.943% 20394 | 715 | 756 |
Fannie Mae 3.966% 20394 | 871 | 923 |
Fannie Mae 3.984% 20394 | 3,890 | 4,093 |
Fannie Mae 4.50% 2039 | 19,759 | 21,409 |
Fannie Mae 5.00% 2039 | 16,769 | 18,829 |
Fannie Mae 5.50% 2039 | 14,191 | 15,877 |
Fannie Mae 5.50% 2039 | 2,121 | 2,373 |
Fannie Mae 3.216% 20404 | 17,431 | 18,263 |
Fannie Mae 3.601% 20404 | 3,521 | 3,731 |
Fannie Mae 4.00% 2040 | 1,842 | 1,960 |
Fannie Mae 4.19% 20404 | 1,119 | 1,188 |
Fannie Mae 4.377% 20404 | 3,797 | 4,042 |
Fannie Mae 4.50% 2040 | 4,566 | 4,947 |
Fannie Mae 5.00% 2040 | 2,021 | 2,265 |
Fannie Mae 5.50% 2040 | 8,630 | 9,675 |
Fannie Mae 5.50% 2040 | 1,066 | 1,192 |
Fannie Mae 2.922% 20414 | 2,769 | 2,892 |
Fannie Mae 3.526% 20414 | 1,340 | 1,403 |
Fannie Mae 3.554% 20414 | 9,096 | 9,531 |
Fannie Mae 3.80% 20414 | 3,610 | 3,870 |
Fannie Mae 4.00% 2041 | 13,553 | 14,456 |
Fannie Mae 4.00% 2041 | 3,110 | 3,309 |
Fannie Mae 4.00% 2041 | 1,808 | 1,924 |
Fannie Mae 4.00% 2041 | 1,513 | 1,610 |
Fannie Mae 4.00% 2041 | 1,020 | 1,086 |
Fannie Mae 4.50% 2041 | 4,837 | 5,240 |
Fannie Mae 5.00% 2041 | 13,993 | 15,574 |
Fannie Mae 5.00% 2041 | 6,215 | 6,998 |
Fannie Mae 5.00% 2041 | 4,725 | 5,318 |
Fannie Mae 5.00% 2041 | 3,201 | 3,604 |
Fannie Mae 5.00% 2041 | 2,015 | 2,266 |
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041 | 2,858 | 3,328 |
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041 | 750 | 843 |
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041 | 1,619 | 1,895 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Federal agency mortgage-backed obligations5 (continued) | (000) | (000) |
Fannie Mae 3.00% 2042 | $ 6,083 | $ 6,012 |
Fannie Mae 3.50% 2042 | 39,116 | 40,295 |
Fannie Mae 3.50% 2042 | 21,923 | 22,591 |
Fannie Mae 3.50% 2042 | 18,810 | 19,377 |
Fannie Mae 3.50% 2042 | 11,179 | 11,530 |
Fannie Mae 3.50% 2042 | 6,222 | 6,417 |
Fannie Mae 4.00% 2042 | 31,072 | 33,127 |
Fannie Mae 4.00% 2042 | 18,311 | 19,473 |
Fannie Mae 4.00% 2042 | 15,624 | 16,625 |
Fannie Mae 4.00% 2042 | 9,491 | 10,123 |
Fannie Mae 4.00% 2042 | 7,898 | 8,421 |
Fannie Mae 4.00% 2042 | 5,148 | 5,478 |
Fannie Mae 4.00% 2042 | 1,492 | 1,591 |
Fannie Mae 4.00% 2042 | 725 | 771 |
Fannie Mae, Series 2002-W1, Class 2A, 6.566% 20424 | 2,275 | 2,665 |
Fannie Mae 3.00% 2043 | 36,251 | 35,827 |
Fannie Mae 3.00% 2043 | 29,437 | 29,093 |
Fannie Mae 3.00% 2043 | 25,173 | 24,879 |
Fannie Mae 3.00% 2043 | 19,569 | 19,341 |
Fannie Mae 3.00% 2043 | 14,766 | 14,594 |
Fannie Mae 3.00% 2043 | 10,081 | 9,989 |
Fannie Mae 3.00% 2043 | 9,794 | 9,680 |
Fannie Mae 3.00% 2043 | 9,736 | 9,622 |
Fannie Mae 3.00% 2043 | 7,151 | 7,068 |
Fannie Mae 3.00% 2043 | 7,010 | 6,928 |
Fannie Mae 3.00% 2043 | 4,833 | 4,776 |
Fannie Mae 3.00% 2043 | 4,625 | 4,571 |
Fannie Mae 4.00% 2043 | 12,777 | 13,581 |
Fannie Mae 4.00% 2043 | 11,918 | 12,701 |
Fannie Mae 3.00% 204411 | 145,525 | 143,661 |
Fannie Mae 3.50% 204411 | 488,931 | 502,911 |
Fannie Mae 4.00% 204411 | 939,650 | 996,616 |
Fannie Mae 4.00% 2044 | 8,368 | 8,914 |
Fannie Mae 4.00% 2044 | 3,966 | 4,230 |
Fannie Mae 4.50% 204411 | 1,299,105 | 1,406,459 |
Fannie Mae 4.50% 204411 | 443,540 | 479,101 |
Fannie Mae 5.00% 204411 | 48,750 | 53,977 |
Fannie Mae 5.00% 204411 | 20,975 | 23,286 |
Fannie Mae 6.00% 2047 | 160 | 178 |
Fannie Mae 6.50% 2047 | 119 | 134 |
Fannie Mae 7.00% 2047 | 522 | 583 |
Fannie Mae 7.00% 2047 | 28 | 31 |
Freddie Mac, Series 2890, Class KT, 4.50% 2019 | 2,463 | 2,620 |
Freddie Mac, Series 2626, Class NG, 3.50% 2023 | 108 | 112 |
Freddie Mac 5.00% 2023 | 1,985 | 2,142 |
Freddie Mac 5.00% 2023 | 73 | 79 |
Freddie Mac 5.00% 2023 | 11 | 12 |
Freddie Mac, Series 1617, Class PM, 6.50% 2023 | 513 | 578 |
Freddie Mac 5.00% 2024 | 4,799 | 5,232 |
Freddie Mac 6.00% 2026 | 3,212 | 3,617 |
Freddie Mac 6.00% 2027 | 18,999 | 21,406 |
Freddie Mac, Series 2153, Class GG, 6.00% 2029 | 863 | 976 |
Freddie Mac, Series 2122, Class QM, 6.25% 2029 | 1,469 | 1,631 |
Freddie Mac 4.50% 2030 | 2,839 | 3,090 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Federal agency mortgage-backed obligations5 (continued) | (000) | (000) |
Freddie Mac, Series 3061, Class PN, 5.50% 2035 | $10,371 | $11,593 |
Freddie Mac, Series 3136, Class OP, principal only, 0% 2036 | 1,912 | 1,794 |
Freddie Mac, Series 3149, Class MO, principal only, 0% 2036 | 1,726 | 1,638 |
Freddie Mac, Series 3147, Class OD, principal only, 0% 2036 | 1,703 | 1,603 |
Freddie Mac, Series 3149, Class AO, principal only, 0% 2036 | 1,576 | 1,503 |
Freddie Mac, Series 3156, Class PO, principal only, 0% 2036 | 29 | 27 |
Freddie Mac, Series 3257, Class PA, 5.50% 2036 | 16,865 | 18,840 |
Freddie Mac, Series 3233, Class PA, 6.00% 2036 | 12,109 | 13,653 |
Freddie Mac, Series 3156, Class NG, 6.00% 2036 | 3,759 | 4,141 |
Freddie Mac 1.703% 20374 | 1,865 | 1,933 |
Freddie Mac 2.082% 20374 | 3,649 | 3,817 |
Freddie Mac 4.50% 2037 | 9,995 | 10,826 |
Freddie Mac, Series 3286, Class JN, 5.50% 2037 | 14,067 | 15,569 |
Freddie Mac, Series 3318, Class JT, 5.50% 2037 | 7,803 | 8,636 |
Freddie Mac, Series 3312, Class PA, 5.50% 2037 | 7,738 | 8,564 |
Freddie Mac 5.50% 2037 | 4,129 | 4,617 |
Freddie Mac 5.50% 2037 | 108 | 120 |
Freddie Mac 5.50% 2037 | 23 | 25 |
Freddie Mac, Series 3271, Class OA, 6.00% 2037 | 5,488 | 6,039 |
Freddie Mac 7.00% 2037 | 161 | 177 |
Freddie Mac 7.50% 2037 | 846 | 976 |
Freddie Mac 4.953% 20384 | 1,138 | 1,220 |
Freddie Mac 5.50% 2038 | 3,160 | 3,525 |
Freddie Mac 5.50% 2038 | 2,793 | 3,142 |
Freddie Mac 5.50% 2038 | 2,189 | 2,442 |
Freddie Mac 5.50% 2038 | 1,285 | 1,434 |
Freddie Mac 5.50% 2038 | 893 | 996 |
Freddie Mac 5.50% 2038 | 537 | 599 |
Freddie Mac 5.50% 2038 | 330 | 369 |
Freddie Mac 3.763% 20394 | 2,562 | 2,679 |
Freddie Mac 4.50% 2039 | 2,447 | 2,649 |
Freddie Mac 5.00% 2039 | 18,705 | 20,696 |
Freddie Mac 5.50% 2039 | 18,051 | 20,166 |
Freddie Mac 5.50% 2039 | 7,416 | 8,274 |
Freddie Mac 4.50% 2040 | 44,423 | 48,092 |
Freddie Mac 5.50% 2040 | 12 | 14 |
Freddie Mac 4.50% 2041 | 16,543 | 17,956 |
Freddie Mac 4.50% 2041 | 4,538 | 4,913 |
Freddie Mac 4.50% 2041 | 2,723 | 2,949 |
Freddie Mac 4.50% 2041 | 807 | 876 |
Freddie Mac 5.00% 2041 | 14,245 | 15,813 |
Freddie Mac 5.00% 2041 | 8,989 | 10,131 |
Freddie Mac 5.00% 2041 | 6,284 | 6,975 |
Freddie Mac 5.50% 2041 | 10,314 | 11,507 |
Freddie Mac 2.57% 20424 | 6,378 | 6,432 |
Freddie Mac 2.585% 20424 | 2,705 | 2,777 |
Freddie Mac 2.351% 20434 | 12,926 | 12,889 |
Freddie Mac 2.43% 20434 | 5,962 | 5,988 |
Freddie Mac 4.00% 2043 | 24,824 | 26,358 |
Freddie Mac 4.00% 2043 | 7,300 | 7,764 |
Freddie Mac 4.00% 2043 | 6,558 | 6,964 |
Freddie Mac 4.00% 2043 | 4,229 | 4,498 |
Freddie Mac 4.00% 2043 | 3,512 | 3,730 |
Freddie Mac 4.00% 2043 | 3,462 | 3,683 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Federal agency mortgage-backed obligations5 (continued) | (000) | (000) |
Freddie Mac 4.00% 2043 | $ 3,127 | $ 3,326 |
Freddie Mac 4.00% 2043 | 2,769 | 2,948 |
Freddie Mac 4.00% 2043 | 1,816 | 1,928 |
Freddie Mac 4.00% 204411 | 52,950 | 56,053 |
Freddie Mac 4.00% 2044 | 2,910 | 3,099 |
Freddie Mac 4.50% 204411 | 33,400 | 36,135 |
Freddie Mac 6.50% 2047 | 314 | 346 |
Freddie Mac 7.00% 2047 | 164 | 183 |
Government National Mortgage Assn. 10.00% 2021 | 182 | 202 |
Government National Mortgage Assn. 2.50% 2028 | 4,590 | 4,724 |
Government National Mortgage Assn. 5.00% 2035 | 1,828 | 2,027 |
Government National Mortgage Assn. 6.00% 2038 | 13,977 | 15,659 |
Government National Mortgage Assn. 6.50% 2038 | 306 | 350 |
Government National Mortgage Assn. 3.50% 2039 | 8,408 | 8,753 |
Government National Mortgage Assn. 5.00% 2039 | 1,782 | 1,963 |
Government National Mortgage Assn. 3.50% 2040 | 7,623 | 7,936 |
Government National Mortgage Assn. 4.50% 2040 | 4,530 | 4,963 |
Government National Mortgage Assn. 5.50% 2040 | 13,501 | 15,360 |
Government National Mortgage Assn. 3.50% 2041 | 519 | 541 |
Government National Mortgage Assn. 4.50% 2041 | 25,314 | 27,762 |
Government National Mortgage Assn. 4.50% 2041 | 2,077 | 2,275 |
Government National Mortgage Assn. 4.50% 2041 | 2,071 | 2,269 |
Government National Mortgage Assn. 4.50% 2041 | 1,465 | 1,606 |
Government National Mortgage Assn. 5.00% 2041 | 13,676 | 15,080 |
Government National Mortgage Assn. 3.50% 2042 | 1,398 | 1,439 |
Government National Mortgage Assn. 3.50% 2043 | 5,156 | 5,373 |
Government National Mortgage Assn. 4.00% 2043 | 264,081 | 282,885 |
Government National Mortgage Assn. 4.50% 2043 | 28,373 | 31,018 |
National Credit Union Administration, Series 2011-M1, Class A2, 1.40% 2015 | 1,368 | 1,378 |
National Credit Union Administration, Series 2010-R2, Class 1A, 0.522% 20174 | 1,408 | 1,410 |
National Credit Union Administration, Series 2011-R3, Class 1A, 0.552% 20204 | 1,483 | 1,488 |
National Credit Union Administration, Series 2011-R1, Class 1A, 0.602% 20204 | 1,747 | 1,756 |
FDIC Structured Sale Guaranteed Notes, Series 2010-S1, Class 1-A, 0.701% 20483,4 | 221 | 221 |
5,597,555 | ||
Commercial mortgage-backed securities5 3.86% | ||
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-CBX, Class A-5, 4.654% 2037 | 582 | 583 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.464% 20374 | 10,028 | 10,034 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A-4A, 4.936% 20424 | 1,606 | 1,661 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB15, Class A-4, 5.814% 20434 | 10,005 | 10,783 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB-16, Class A1A, 5.546% 2045 | 7,221 | 7,822 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 6.057% 20454 | 47,285 | 50,866 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 20463 | 31,106 | 32,502 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-1-A, 5.892% 20494 | 35,442 | 39,388 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.892% 20494 | 33,812 | 37,336 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-C1, Class A-4, 5.716% 2051 | 15,660 | 17,271 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD12, Class A-1-A, 5.85% 20514 | 2,958 | 3,313 |
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-4-1, 5.243% 20374 | 767 | 768 |
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 6.015% 20384 | 13,076 | 14,081 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-1-A, 5.426% 2039 | 5,355 | 5,866 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 2039 | 32,300 | 35,275 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-1-A, 5.704% 2049 | 9,883 | 11,066 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-M, 5.867% 20494 | 13,585 | 15,035 |
CS First Boston Mortgage Securities Corp., Series 2014-ICE, Class A, 1.05% 20193,4 | 17,620 | 17,646 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Commercial mortgage-backed securities5 (continued) | (000) | (000) |
CS First Boston Mortgage Securities Corp., Series 2014-ICE, Class B, 1.45% 20193,4 | $ 1,400 | $ 1,402 |
CS First Boston Mortgage Securities Corp., Series 2014-ICE, Class C, 2.00% 20193,4 | 1,400 | 1,406 |
CS First Boston Mortgage Securities Corp., Series 2014-ICE, Class D, 2.40% 20193,4 | 1,000 | 1,005 |
CS First Boston Mortgage Securities Corp., Series 2005-C5, Class D, 5.10% 20384 | 1,500 | 1,548 |
CS First Boston Mortgage Securities Corp., Series 2006-C5, Class A-3, 5.311% 2039 | 25,026 | 27,035 |
CS First Boston Mortgage Securities Corp., Series 2007-C3, Class A-1-A-1, 5.866% 20394 | 9,429 | 10,455 |
CS First Boston Mortgage Securities Corp., Series 2007-C5, Class A4, 5.695% 20404 | 4,000 | 4,408 |
CS First Boston Mortgage Securities Corp., Series 2007-C2, Class A-M, 5.615% 20494 | 12,708 | 13,944 |
DBUBS Mortgage Trust, Series 2011-LC2A, Class A-2, 3.386% 20443 | 16,685 | 17,416 |
DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 20463 | 51,633 | 53,774 |
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A-PB, 4.807% 2042 | 386 | 390 |
Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class A-7, 5.118% 20424 | 8,776 | 9,071 |
Wachovia Bank Commercial Mortgage Trust, Series 2006-C25, Class A1A, 5.899% 20434 | 8,839 | 9,539 |
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-PB, 5.46% 20444 | 1,506 | 1,508 |
Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A1A, 5.749% 20454 | 7,151 | 7,763 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-5, 5.50% 2047 | 4,900 | 5,420 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-M, 5.591% 20474 | 17,020 | 18,666 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A-3, 5.933% 20494 | 16,500 | 18,081 |
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A1A, 5.641% 20394 | 5,528 | 5,918 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-1-A, 5.387% 2040 | 1,039 | 1,139 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-3, 5.43% 2040 | 2,055 | 2,255 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-M, 5.493% 20404 | 8,725 | 9,393 |
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class A-M, 6.114% 20404 | 30,967 | 34,466 |
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A-M, 6.37% 20454 | 8,680 | 9,899 |
Morgan Stanley Capital I Trust, Series 2007-TA27, Class A-1-A, 5.831% 20424 | 2,704 | 3,012 |
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A1A, 5.319% 2043 | 10,240 | 11,106 |
Morgan Stanley Capital I Trust, Series 2007-IQ13, Class A-1A, 5.312% 2044 | 561 | 614 |
Morgan Stanley Capital I Trust, Series 2007-IQ13, Class A-M, 5.406% 2044 | 13,600 | 14,835 |
Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A-4, 6.105% 20494 | 22,080 | 24,469 |
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% 2049 | 41,210 | 44,378 |
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A-3, 6.079% 20494 | 7,410 | 8,239 |
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP6, Class A-4, 5.475% 20434 | 40,860 | 43,477 |
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A-4, 5.399% 2045 | 7,390 | 7,964 |
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9, Class A-M, 5.372% 2047 | 135 | 143 |
Banc of America Commercial Mortgage Inc., Series 2006-3, Class A-4, 5.889% 20444 | 10,794 | 11,651 |
Banc of America Commercial Mortgage Inc., Series 2005-5, Class A-4, 5.115% 20454 | 2,405 | 2,496 |
Banc of America Commercial Mortgage Inc., Series 2006-1, Class A1A, 5.378% 20454 | 10,750 | 11,399 |
Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.775% 20494 | 3,615 | 3,983 |
Banc of America Commercial Mortgage Inc., Series 2007-2, Class A-M, 5.791% 20494 | 4,083 | 4,518 |
Banc of America Commercial Mortgage Inc., Series 2007-4, Class A-M, 6.015% 20514 | 5,895 | 6,606 |
Banc of America Commercial Mortgage Inc., Series 2008-1, Class A-4, 6.418% 20514 | 6,220 | 7,071 |
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A-4, 5.401% 20444 | 16,352 | 17,009 |
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 2048 | 22,224 | 23,852 |
EQTY 2014-INNS Mortgage Trust Commercial Mortgage Pass-Through Certificates, | ||
Series 2014-A, 1.004% 20313,4 | 25,155 | 25,207 |
EQTY 2014-INNS Mortgage Trust Commercial Mortgage Pass-Through Certificates, | ||
Series 2014-B, 1.354% 20313,4 | 6,245 | 6,261 |
EQTY 2014-INNS Mortgage Trust Commercial Mortgage Pass-Through Certificates, | ||
Series 2014-C, 1.754% 20313,4 | 2,180 | 2,187 |
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20263 | 28,905 | 32,610 |
Crown Castle Towers LLC, Series 2010-5, Class C, 4.174% 20373 | 20,000 | 21,248 |
Crown Castle Towers LLC, Series 2010-2, Class C, 5.495% 20373 | 10,000 | 10,975 |
Hilton USA Trust, Series 2013-HLF-AFX, 2.662% 20303 | 17,920 | 18,142 |
Hilton USA Trust, Series 2013-HLF-BFX, 3.367% 20303 | 8,500 | 8,746 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Commercial mortgage-backed securities5 (continued) | (000) | (000) |
Hilton USA Trust, Series 2013-HLF, CFX, 3.7141% 20303 | $ 3,610 | $ 3,677 |
Hilton USA Trust, Series 2013-HLF, DFX, 4.4065% 20303 | 1,000 | 1,036 |
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A-5, 4.855% 20414 | 3,159 | 3,170 |
Merrill Lynch Mortgage Trust, Series 2006-C2, Class A-4, 5.742% 20434 | 9,461 | 10,228 |
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A-4, 6.033% 20504 | 7,050 | 7,884 |
Commercial Mortgage Trust, Series 2005-LP5, Class E, 5.352% 20433,4 | 1,750 | 1,803 |
Commercial Mortgage Trust, Series 2006-C8, Class A1A, 5.292% 2046 | 16,078 | 17,528 |
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A-4, 5.431% 2049 | 5,293 | 5,744 |
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A-M, 6.341% 20494 | 7,468 | 8,391 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class A-1A, 5.71% 20424 | 3,270 | 3,651 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW17, Class A-1-A, 5.65% 20504 | 1,836 | 2,027 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A-M, 6.084% 20504 | 5,730 | 6,487 |
Aventura Mall Trust, Series A, 3.867% 20323,4 | 10,770 | 11,448 |
LB Commercial Mortgage Trust, Series 2007-C3, Class A-1-A, multifamily 6.045% 20444 | 7,401 | 8,216 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2014-INN, Class A, 1.071% 20293,4 | 7,000 | 7,009 |
GS Mortgage Securities Corp. II, Series 2011-GC3, Class A-2, 3.645% 20443 | 3,327 | 3,461 |
1,051,155 | ||
Other mortgage-backed securities5 0.92% | ||
Westpac Banking Corp. 1.375% 20153 | 4,325 | 4,371 |
Westpac Banking Corp. 2.45% 20163 | 4,325 | 4,483 |
Westpac Banking Corp. 1.25% 20183 | 4,425 | 4,402 |
Westpac Banking Corp. 1.85% 20183 | 9,000 | 9,016 |
Westpac Banking Corp. 1.375% 20193 | 4,375 | 4,338 |
Westpac Banking Corp. 2.00% 20193 | 7,150 | 7,154 |
Commonwealth Bank of Australia 0.75% 20173 | 3,850 | 3,861 |
Commonwealth Bank of Australia 2.25% 20173 | 4,150 | 4,278 |
Commonwealth Bank of Australia 1.875% 20183 | 10,300 | 10,322 |
Commonwealth Bank of Australia 2.00% 20193 | 8,950 | 8,945 |
Royal Bank of Canada 3.125% 20153 | 18,160 | 18,557 |
Royal Bank of Canada 1.125% 2017 | 4,000 | 4,034 |
Royal Bank of Canada 2.00% 2019 | 4,075 | 4,133 |
Bank of Montreal 1.30% 20143 | 4,000 | 4,014 |
Bank of Montreal 2.85% 20153 | 17,000 | 17,405 |
Bank of Montreal 2.625% 20163 | 4,250 | 4,392 |
National Australia Bank 2.00% 20173 | 3,500 | 3,583 |
National Australia Bank 1.25% 20183 | 2,880 | 2,850 |
National Australia Bank 2.00% 20193 | 8,575 | 8,604 |
Bank of Nova Scotia 1.25% 20143 | 4,000 | 4,014 |
Bank of Nova Scotia 2.15% 20163 | 4,650 | 4,788 |
Bank of Nova Scotia 1.75% 20173 | 4,150 | 4,235 |
Sparebank 1 Boligkreditt AS 2.625% 20173 | 3,400 | 3,523 |
Sparebank 1 Boligkreditt AS 1.25% 20193 | 4,000 | 3,946 |
Sparebank 1 Boligkreditt AS 1.75% 20203 | 5,125 | 5,018 |
DEPFA ACS Bank 5.125% 20373 | 10,405 | 12,186 |
Swedbank AB 2.125% 20163 | 3,400 | 3,498 |
Swedbank AB 2.95% 20163 | 3,000 | 3,122 |
Swedbank AB 1.375% 20183 | 4,375 | 4,360 |
Australia & New Zealand Banking Group Ltd. 1.00% 20163 | 4,250 | 4,281 |
Australia & New Zealand Banking Group Ltd. 2.40% 20163 | 4,250 | 4,401 |
UBS AG 1.875% 20153 | 4,200 | 4,237 |
UBS AG 0.75% 20173 | 4,375 | 4,387 |
Toronto-Dominion Bank 1.625% 20163 | 4,400 | 4,483 |
Credit Suisse Group AG 2.60% 20163 | 4,300 | 4,456 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Other mortgage-backed securities5 (continued) | (000) | (000) |
Credit Mutuel-CIC Home Loan SFH 1.50% 20173 | $ 4,400 | $ 4,419 |
HSBC Bank PLC 1.625% 20153 | 4,400 | 4,404 |
DNB ASA 1.45% 20193 | 4,375 | 4,362 |
Skandinaviska Enskilda 1.375% 20183 | 4,375 | 4,347 |
National Bank of Canada 2.20% 20163 | 4,175 | 4,313 |
Canadian Imperial Bank of Commerce 2.75% 20163 | 4,150 | 4,296 |
Stadshypotek AB 1.875% 20193 | 4,275 | 4,228 |
Nordea Eiendomskreditt AS 2.125% 20173 | 4,000 | 4,116 |
Norddeutsche Landesbank 2.00% 20193 | 4,000 | 4,015 |
Barclays Bank PLC 2.50% 20153 | 3,600 | 3,690 |
Caisse Centrale Desjardins 1.60% 20173 | 3,375 | 3,431 |
249,298 | ||
Collateralized mortgage-backed obligations (privately originated)5 0.23% | ||
Freddie Mac, Series 2013-DN2, Class M-1, 1.602% 20234 | 7,263 | 7,339 |
Freddie Mac, Series 2013-DN1, Class M-1, 3.552% 20234 | 7,507 | 7,906 |
Freddie Mac, Series 2014-DN2, Class M-1, 1.002% 20244 | 5,402 | 5,409 |
Freddie Mac, Series 2014-DN1, Class M-1, 1.152% 20244 | 972 | 978 |
Freddie Mac, Series 2014-DN2, Class M-2, 1.802% 20244 | 2,965 | 2,986 |
TBW Mortgage-backed Trust, Series 2007-2, Class A-4-B, 0.572% 20374 | 14,670 | 13,057 |
Firstmac Bond Trust, Series 2014-1A, Class A2A, 0.503% 20153,4 | 9,000 | 9,010 |
Connecticut Avenue Securities, Series 2014-C02, Class 2M1, 1.102% 20244 | 6,000 | 6,008 |
Connecticut Avenue Securities, Series 2014-C02, Class 1M1, 1.102% 20244 | 2,875 | 2,879 |
Connecticut Avenue Securities, Series 2013-C01, Class M-1, 2.152% 20233,4 | 2,740 | 2,814 |
Connecticut Avenue Securities, Series 2014-C01, Class M-1, 1.752% 20243,4 | 1,892 | 1,925 |
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032 | 180 | 195 |
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032 | 25 | 27 |
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033 | 1,331 | 1,432 |
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033 | 24 | 26 |
American General Mortgage Loan Trust, Series 2010-1A, Class A-1, 5.15% 20583,4 | 876 | 882 |
62,873 | ||
Total mortgage-backed obligations | 6,960,881 | |
Bonds & notes of governments & government agencies outside the U.S. 4.68% | ||
Russian Federation 6.20% 2018 | RUB617,500 | 17,239 |
Russian Federation 7.50% 2018 | 403,000 | 11,702 |
Russian Federation 5.00% 2020 | $17,800 | 19,064 |
Russian Federation 7.50% 20305 | 25,215 | 29,253 |
Russian Federation 7.50% 20303,5 | 99 | 115 |
Spanish Government 4.00% 20183 | 13,625 | 14,615 |
Spanish Government 4.50% 2018 | € 8,800 | 13,552 |
Spanish Government 5.40% 2023 | 1,585 | 2,668 |
Spanish Government 2.75% 2024 | 8,230 | 11,242 |
Spanish Government 5.15% 2044 | 17,025 | 28,141 |
United Mexican States Government, Series M, 5.00% 2017 | MXN 60,000 | 4,795 |
United Mexican States Government 4.00% 20192 | 102,633 | 8,942 |
United Mexican States Government Global, Series A, 5.125% 2020 | $2,100 | 2,385 |
United Mexican States Government 2.50% 20202 | MXN133,423 | 10,748 |
United Mexican States Government, Series M, 6.50% 2021 | 112,500 | 9,333 |
United Mexican States Government Global, Series A, 3.625% 2022 | $4,400 | 4,576 |
United Mexican States Government 4.00% 20402 | MXN100,581 | 8,781 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments & government agencies outside the U.S. (continued) | (000) | (000) |
United Mexican States Government Global 5.55% 2045 | $18,000 | $20,520 |
Indonesia (Republic of) 5.875% 2020 | 6,800 | 7,582 |
Indonesia (Republic of) 5.875% 20203 | 6,200 | 6,913 |
Indonesia (Republic of) 3.75% 2022 | 10,150 | 9,909 |
Indonesia (Republic of) 7.75% 2038 | 18,400 | 23,000 |
Indonesia (Republic of) 5.25% 2042 | 6,900 | 6,624 |
Indonesia (Republic of) 4.625% 2043 | 1,500 | 1,316 |
Indonesia (Republic of) 6.75% 20443 | 1,125 | 1,297 |
Turkey (Republic of) 4.557% 20183 | 1,195 | 1,255 |
Turkey (Republic of) 7.00% 2019 | 2,000 | 2,309 |
Turkey (Republic of) 4.00% 20202 | TRY 9,091 | 4,819 |
Turkey (Republic of) 10.50% 2020 | 10,250 | 5,274 |
Turkey (Republic of) 3.00% 20212 | 2,603 | 1,313 |
Turkey (Republic of) 5.625% 2021 | $ 8,000 | 8,760 |
Turkey (Republic of) 8.00% 2034 | 1,250 | 1,647 |
Turkey (Republic of) 6.75% 2040 | 11,300 | 13,227 |
Turkey (Republic of) 6.00% 2041 | 14,650 | 15,712 |
Colombia (Republic of), Series B, 5.00% 2018 | COP4,913,000 | 2,529 |
Colombia (Republic of) Global 4.375% 2021 | $16,200 | 17,423 |
Colombia (Republic of), Series B, 7.00% 2022 | COP38,315,300 | 21,040 |
Colombia (Republic of), Series B, 10.00% 2024 | 8,918,000 | 5,926 |
Colombia (Republic of) Global 6.125% 2041 | $ 4,000 | 4,820 |
European Investment Bank 1.00% 2015 | 9,100 | 9,172 |
European Investment Bank 1.00% 2017 | 5,000 | 4,968 |
European Investment Bank 2.50% 2021 | 20,000 | 20,359 |
European Investment Bank 3.25% 2024 | 15,000 | 15,687 |
Lithuania (Republic of) 7.375% 2020 | 11,975 | 14,729 |
Lithuania (Republic of) 6.125% 2021 | 12,000 | 14,081 |
Lithuania (Republic of) 6.625% 2022 | 8,700 | 10,549 |
Lithuania (Republic of) 6.625% 20223 | 3,400 | 4,123 |
Polish Government 5.125% 2021 | 19,300 | 21,761 |
Polish Government, Series 1021, 5.75% 2021 | PLN14,000 | 5,347 |
Polish Government 2.75% 20232 | 6,169 | 2,183 |
Polish Government 4.00% 2024 | $ 9,485 | 9,888 |
Philippines (Republic of) 6.375% 2034 | 15,500 | 19,569 |
Philippines (Republic of) 6.25% 2036 | PHP621,000 | 15,372 |
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 20143 | $33,320 | 33,396 |
France Government Agency-Guaranteed, Société Finance 2.875% 20143 | 33,200 | 33,396 |
Iraq (Republic of) 5.80% 20285 | 35,450 | 32,171 |
Brazil (Federal Republic of) 6.00% 20172 | BRL20,941 | 9,520 |
Brazil (Federal Republic of) 6.00% 20202 | 9,930 | 4,474 |
Brazil (Federal Republic of) 10.00% 2023 | 38,910 | 15,836 |
Morocco Government 4.25% 2022 | $ 5,400 | 5,430 |
Morocco Government 4.25% 20223 | 2,700 | 2,715 |
Morocco Government 5.50% 2042 | 19,300 | 19,131 |
Morocco Government 5.50% 20423 | 2,300 | 2,280 |
Nigeria (Republic of) 5.125% 20183 | 7,975 | 8,296 |
Nigeria (Republic of) 6.375% 2023 | 13,490 | 14,620 |
Nigeria (Republic of) 6.375% 20233 | 5,325 | 5,771 |
Japanese Government, Series 321, 1.00% 2022 | ¥2,770,000 | 28,668 |
Argentina (Republic of) 7.00% 2017 | $30,650 | 28,189 |
Caisse d’Amortissement de la Dette Sociale 1.625% 20153 | 4,000 | 4,053 |
Caisse d’Amortissement de la Dette Sociale 1.125% 20173 | 10,470 | 10,535 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments & government agencies outside the U.S. (continued) | (000) | (000) |
Caisse d’Amortissement de la Dette Sociale 2.00% 20203 | $ 5,000 | $ 4,954 |
Caisse d’Amortissement de la Dette Sociale 3.375% 20243 | 8,180 | 8,407 |
Hungarian Government 4.00% 2019 | 1,460 | 1,508 |
Hungarian Government 6.25% 2020 | 6,700 | 7,607 |
Hungarian Government 6.375% 2021 | 3,200 | 3,664 |
Hungarian Government 5.375% 2023 | 11,600 | 12,557 |
Hungarian Government 5.375% 2024 | 1,000 | 1,073 |
Latvia (Republic of) 2.75% 2020 | 17,275 | 17,145 |
Latvia (Republic of) 2.625% 2021 | €5,000 | 7,157 |
Latvia (Republic of) 5.25% 2021 | $ 1,750 | 1,965 |
Venezuela (Republic of) 8.50% 2014 | 245 | 246 |
Venezuela (Republic of) 7.65% 2025 | 985 | 763 |
Venezuela (Republic of) 9.25% 2028 | 26,980 | 22,798 |
South Africa (Republic of) 5.50% 2020 | 14,000 | 15,390 |
South Africa (Republic of), Series R-213, 7.00% 2031 | ZAR100,000 | 7,934 |
Slovenia (Republic of) 4.125% 20193 | $ 870 | 919 |
Slovenia (Republic of) 5.50% 20223 | 3,000 | 3,296 |
Slovenia (Republic of) 5.50% 2022 | 2,370 | 2,604 |
Slovenia (Republic of) 5.85% 20233 | 10,650 | 12,008 |
Slovenia (Republic of) 5.85% 2023 | 3,350 | 3,777 |
Bermudan Government 5.603% 20203 | 4,075 | 4,564 |
Bermudan Government 5.603% 2020 | 3,940 | 4,413 |
Bermudan Government 4.138% 20233 | 1,700 | 1,709 |
Bermudan Government 4.854% 20243 | 10,650 | 11,268 |
Province of Ontario 3.20% 2024 | 20,000 | 20,156 |
Italian Government 4.50% 2024 | €12,500 | 19,696 |
Swedish Government, Series 1051, 3.75% 2017 | SKr100,000 | 16,406 |
Greek Government 2.00%/3.00% 20238 | €690 | 790 |
Greek Government 2.00%/3.00% 20248 | 690 | 769 |
Greek Government 2.00%/3.00% 20258 | 690 | 747 |
Greek Government 2.00%/3.00% 20268 | 690 | 726 |
Greek Government 2.00%/3.00% 20278 | 690 | 708 |
Greek Government 2.00%/3.00% 20288 | 690 | 693 |
Greek Government 2.00%/3.00% 20298 | 835 | 830 |
Greek Government 2.00%/3.00% 20308 | 835 | 818 |
Greek Government 2.00%/3.00% 20318 | 835 | 809 |
Greek Government 2.00%/3.00% 20328 | 835 | 801 |
Greek Government 2.00%/3.00% 20338 | 835 | 793 |
Greek Government 2.00%/3.00% 20348 | 835 | 788 |
Greek Government 2.00%/3.00% 20358 | 835 | 783 |
Greek Government 2.00%/3.00% 20368 | 945 | 881 |
Greek Government 2.00%/3.00% 20378 | 945 | 878 |
Greek Government 2.00%/3.00% 20388 | 945 | 877 |
Greek Government 2.00%/3.00% 20398 | 945 | 878 |
Greek Government 2.00%/3.00% 20408 | 945 | 875 |
Greek Government 2.00%/3.00% 20418 | 945 | 875 |
Greek Government 2.00%/3.00% 20428 | 945 | 874 |
FMS Wertmanagement 1.125% 2016 | $4,050 | 4,093 |
FMS Wertmanagement 1.00% 2017 | 4,400 | 4,379 |
FMS Wertmanagement 1.625% 2018 | 6,400 | 6,423 |
Republic of Belarus 8.75% 2015 | 6,325 | 6,539 |
Republic of Belarus 8.95% 2018 | 6,605 | 7,166 |
Croatian Government 6.75% 2019 | 7,985 | 8,993 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments & government agencies outside the U.S. (continued) | (000) | (000) |
Croatian Government 6.75% 20193 | $ 2,865 | $ 3,227 |
Croatian Government 5.50% 20233 | 1,085 | 1,132 |
Dominican Republic 7.50% 20213,5 | 3,500 | 4,013 |
Dominican Republic 7.50% 20215 | 950 | 1,089 |
Dominican Republic 7.45% 20443 | 7,500 | 8,040 |
Europe Government Agency-Guaranteed, Dexia Credit Local 1.25% 20163 | 4,100 | 4,134 |
Europe Government Agency-Guaranteed, Dexia Credit Local 2.25% 20193 | 8,625 | 8,750 |
KfW 1.00% 2015 | 8,400 | 8,434 |
KfW 2.00% 2022 | 4,325 | 4,131 |
Inter-American Development Bank 4.375% 2044 | 11,500 | 12,397 |
Bahrain Government 5.50% 2020 | 10,440 | 11,483 |
Bahrain Government 5.50% 20203 | 510 | 561 |
Japan Finance Organization for Municipalities 2.125% 20193 | 10,000 | 10,085 |
Gabonese Republic 6.375% 20243,5 | 9,154 | 10,045 |
Queensland Treasury Corp. 4.75% 2025 | A$10,000 | 9,984 |
Romanian Government 6.75% 20223 | $8,000 | 9,580 |
Japan Bank for International Cooperation 3.00% 2024 | 9,330 | 9,464 |
Landwirtschaftliche Rentenbank 1.75% 2019 | 8,970 | 8,985 |
Swedish Export Credit Corp. 2.875% 20233 | 9,000 | 8,955 |
Chilean Government 3.875% 2020 | 3,000 | 3,225 |
Chilean Government 5.50% 2020 | CLP2,899,000 | 5,512 |
Uruguay (Republic of) 4.375% 20282,5 | UYU133,595 | 6,510 |
Uruguay (Republic of) 7.625% 20365 | $1,250 | 1,684 |
Instituto de Credito Oficial 1.125% 20163 | 8,000 | 7,994 |
State of Qatar 5.25% 2020 | 5,000 | 5,706 |
State of Qatar 4.50% 20223 | 500 | 552 |
Province of Manitoba 3.05% 2024 | 6,050 | 6,109 |
El Salvador (Republic of) 7.375% 2019 | 4,800 | 5,346 |
Municipality Finance PLC 1.125% 20183 | 4,900 | 4,851 |
Israeli Government 5.125% 2019 | 500 | 568 |
Israeli Government 4.00% 2022 | 3,500 | 3,739 |
Kommunalbanken 0.355% 20163,4 | 4,250 | 4,256 |
Sri Lanka (Republic of) 6.25% 20213 | 3,400 | 3,604 |
Brazil (Federal Republic of) 10.00% 2025 | BRL7,690 | 3,067 |
Kenya (Rebulic of) 6.875% 20243 | $ 2,150 | 2,240 |
1,273,857 | ||
Federal agency bonds & notes 4.18% | ||
Freddie Mac 5.00% 2014 | 25,000 | 25,048 |
Freddie Mac 1.75% 2015 | 37,350 | 38,034 |
Freddie Mac 0.50% 2016 | 54,105 | 54,172 |
Freddie Mac 1.00% 2017 | 3,425 | 3,435 |
Freddie Mac, Series K705, Class A2, multifamily 2.303% 20185 | 3,092 | 3,174 |
Freddie Mac, Series K706, Class A2, multifamily 2.323% 20185 | 3,225 | 3,307 |
Freddie Mac, Series K704, Class A2, multifamily 2.412% 20185 | 3,100 | 3,197 |
Freddie Mac, Series K702, Class A2, multifamily 3.154% 20185 | 15,455 | 16,385 |
Freddie Mac 4.875% 2018 | 13,365 | 15,182 |
Freddie Mac 1.25% 2019 | 43,500 | 42,266 |
Freddie Mac, Series K711, Class A2, multifamily 1.73% 20195 | 4,325 | 4,291 |
Freddie Mac, Series K712, Class A2, multifamily 1.869% 20195 | 3,365 | 3,345 |
Freddie Mac, Series K710, Class A2, multifamily 1.883% 20195 | 2,330 | 2,337 |
Freddie Mac, Series K709, Class A2, multifamily 2.086% 20195 | 1,870 | 1,893 |
Freddie Mac, Series KGRP, Class A, multifamily 0.53% 20204,5 | 6,722 | 6,737 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency bonds & notes (continued) | (000) | (000) |
Freddie Mac, Series KF02, Class A2, multifamily 0.702% 20204,5 | $ 44,002 | $ 44,237 |
Freddie Mac, Series KF02, Class A3, multifamily 0.782% 20204,5 | 30,921 | 31,044 |
Freddie Mac, Series K009, Class A1, multifamily 2.757% 20205 | 2,823 | 2,942 |
Freddie Mac, Series K014, Class A1, multifamily 2.788% 20205 | 3,176 | 3,320 |
Freddie Mac, Series K013, Class A1, multifamily 2.902% 20205 | 3,527 | 3,685 |
Freddie Mac, Series K714, Class A2, multifamily 3.034% 20204 | 11,485 | 12,025 |
Freddie Mac, Series K010, Class A1, multifamily 3.32% 20205 | 2,637 | 2,796 |
Freddie Mac, Series K019, Class A1, multifamily 1.459% 20215 | 1,983 | 1,972 |
Freddie Mac, Series K017, Class A2, multifamily 2.873% 20215 | 4,200 | 4,315 |
Freddie Mac, Series K023, Class A2, multifamily 2.307% 20225 | 17,995 | 17,567 |
Freddie Mac, Series K022, Class A2, multifamily 2.355% 20225 | 4,325 | 4,254 |
Freddie Mac, Series K020, Class A2, multifamily 2.373% 20225 | 14,350 | 14,188 |
Freddie Mac, Series K021, Class A2, multifamily 2.396% 20225 | 22,995 | 22,703 |
Freddie Mac, Series K031, Class A1, multifamily 2.778% 20225 | 2,908 | 3,027 |
Freddie Mac, Series K029, Class A1, multifamily 2.839% 20225 | 3,901 | 4,068 |
Freddie Mac, Series KS01, Class A2, multifamily 2.522% 20235 | 6,735 | 6,667 |
Freddie Mac, Series K032, Class A1, multifamily 3.016% 20235 | 9,622 | 10,101 |
Freddie Mac, Series K033, Class A2, multifamily 3.06% 20234,5 | 1,600 | 1,635 |
Freddie Mac, Series K028, Class A2, multifamily 3.111% 20235 | 4,200 | 4,324 |
Freddie Mac, Series K031, Class A2, multifamily 3.30% 20234,5 | 3,420 | 3,563 |
Freddie Mac, Series K032, Class A2, multifamily 3.31% 20234,5 | 400 | 417 |
Freddie Mac, Series K029, Class A2, multifamily 3.32% 20234,5 | 16,000 | 16,729 |
Freddie Mac, Series K035, Class A2, multifamily 3.458% 20234,5 | 1,500 | 1,580 |
Freddie Mac, Series K036, Class A2, multifamily 3.527% 20234,5 | 26,090 | 27,560 |
Freddie Mac, Series K034, Class A2, multifamily 3.531% 20234,5 | 400 | 423 |
Freddie Mac, Series K038, Class A2, multifamily 3.389% 20245 | 13,245 | 13,841 |
Fannie Mae, Series 2014-M2, Class A-S-Q2, multifamily 0.478% 20155 | 10,865 | 10,878 |
Fannie Mae 0.50% 2016 | 117,100 | 117,168 |
Fannie Mae 5.375% 2016 | 10,420 | 11,462 |
Fannie Mae, Series 2014-M6, Class A2, multifamily 2.67851% 20215 | 8,225 | 8,344 |
Fannie Mae, Series 2013-M4, multifamily 2.608% 20225 | 4,325 | 4,303 |
Fannie Mae, Series 2012-M2, Class A2, multifamily 2.717% 20225 | 8,400 | 8,480 |
Fannie Mae, Series 2012-M3, Class 1-A2, multifamily 3.044% 20225 | 3,500 | 3,597 |
Fannie Mae, Series 2013-M14, Class A2, multifamily 3.329% 20234,5 | 7,175 | 7,464 |
Fannie Mae, Series 2014-M1, multifamily 3.506% 20234,5 | 8,350 | 8,690 |
Fannie Mae, Series 2014-M2, Class A2, multifamily 3.513% 20234,5 | 13,550 | 14,296 |
Fannie Mae, Series 2014-M3, Class A2, multifamily 3.501% 20244,5 | 19,740 | 20,767 |
Fannie Mae 7.125% 2030 | 3,900 | 5,702 |
Federal Home Loan Bank 0.375% 2016 | 23,770 | 23,768 |
Federal Home Loan Bank 0.625% 2016 | 28,060 | 28,011 |
Federal Home Loan Bank, Series 2816, 1.00% 2017 | 13,035 | 13,086 |
Federal Home Loan Bank 2.75% 2018 | 16,635 | 17,524 |
Federal Home Loan Bank 3.375% 2023 | 28,050 | 29,321 |
Federal Home Loan Bank 5.50% 2036 | 600 | 768 |
Tennessee Valley Authority, Series A, 3.875% 2021 | 8,750 | 9,634 |
Tennessee Valley Authority 1.875% 2022 | 23,750 | 22,606 |
TVA Southaven 3.846% 20335 | 3,322 | 3,450 |
Tennessee Valley Authority 4.65% 2035 | 4,000 | 4,396 |
Tennessee Valley Authority 5.25% 2039 | 21,250 | 25,797 |
Tennessee Valley Authority, Series B, 3.50% 2042 | 25,113 | 23,258 |
Tennessee Valley Authority, Series 2008, Class A, 4.875% 2048 | 3,200 | 3,610 |
Federal Farm Credit Banks 1.625% 2014 | 33,700 | 33,886 |
Federal Farm Credit Banks 0.204% 20174 | 26,250 | 26,254 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency bonds & notes (continued) | (000) | (000) |
Federal Farm Credit Banks 0.206% 20174 | $21,501 | $ 21,505 |
CoBank, ACB 7.875% 20183 | 23,615 | 28,145 |
CoBank, ACB 0.831% 20223,4 | 33,865 | 30,563 |
United States Agency for International Development, Republic of Egypt 4.45% 2015 | 5,000 | 5,248 |
United States Agency for International Development, Ukraine, 1.844% 2019 | 6,930 | 6,967 |
United States Agency for International Development, Jordan (Kingdom of) 1.945% 2019 | 16,500 | 16,596 |
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 8,600 | 8,654 |
Private Export Funding Corp., Series W, 5.00% 2016 | 3,400 | 3,752 |
Private Export Funding Corp. 3.55% 2024 | 19,680 | 20,708 |
United States Government-Guaranteed Certificates of Participation, Overseas Private | ||
Investment Corp, 0% 2016 | 2,301 | 2,312 |
United States Government-Guaranteed Certificates of Participation, Overseas Private | ||
Investment Corp, 3.49% 20295 | 4,110 | 4,214 |
United States Government-Guaranteed Certificates of Participation, Overseas Private | ||
Investment Corp, 3.82% 20325 | 4,515 | 4,696 |
United States Government-Guaranteed Certificates of Participation, Overseas Private | ||
Investment Corp, 3.938% 20325 | 1,633 | 1,669 |
Federal Agricultural Mortgage Corp. 5.125% 20173 | 5,000 | 5,570 |
Export-Import Bank of the United States-Guaranteed, Ethiopian Leasing 2012 LLC 2.646% 20265 | 5,000 | 5,034 |
Export-Import Bank of the United States-Guaranteed, VCK Lease SA 2.591% 2026 | 2,665 | 2,665 |
1,136,604 | ||
Asset-backed obligations5 2.03% | ||
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2009-2A, Class A-2, 5.29% 20163 | 24,200 | 24,784 |
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-1, 1.12% 20173 | 11,075 | 11,121 |
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2010-1A, Class A-2, 3.74% 20173 | 8,500 | 8,864 |
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-2, 1.83% 20193 | 15,000 | 15,002 |
Ford Credit Auto Owner Trust, Series 2014-A-A3, 0.79% 2018 | 13,110 | 13,149 |
Ford Credit Auto Owner Trust, Series 2014-B-A3, 0.90% 2018 | 12,285 | 12,292 |
Ford Credit Auto Owner Trust, Series 2014-1-A, 2.26% 20253 | 10,760 | 10,867 |
Carlyle Global Market Strategies Commodities Fund, Series 2014-1A, Class A, 2.127% 20213,4,10 | 30,365 | 30,412 |
CWHEQ Revolving Home Equity Loan Trust, Series 2005-C, Class 2-A, FSA insured, 0.332% 20354 | 7,491 | 6,808 |
CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 2-A, FSA insured, 0.292% 20374 | 8,853 | 8,046 |
CWHEQ Revolving Home Equity Loan Trust, Series 2007-B, Class A, FSA insured, 0.302% 20374 | 13,319 | 12,028 |
Honda Auto Receivables Owner Trust, Series 2014-1, Class A-3, 0.67% 2017 | 26,410 | 26,415 |
Aesop Funding II LLC, Series 2010-5A, Class A, 3.15% 20173 | 20,000 | 20,689 |
Aesop Funding II LLC, Series 2013-1A, Class A, 1.92% 20193 | 5,225 | 5,209 |
CarMaxAuto Owner Trust, Series 2014-1, Class A-2, 0.47% 2017 | 8,495 | 8,500 |
CarMaxAuto Owner Trust, Series 2014-1, Class A-3, 0.79% 2018 | 15,625 | 15,649 |
Hertz Fleet Lease Funding LP, Series 2014-1-A, 0.554% 20283,4 | 20,870 | 20,879 |
Ally Auto Receivables Trust, Series 2014-1, Class A3, 0.97% 2018 | 18,300 | 18,321 |
New Residential Advance Receivables Trust, Series 2014-T-1, Class A-1, 1.274% 20453 | 6,855 | 6,864 |
New Residential Advance Receivables Trust, Series 2014-T-2, Class A-2, 2.377% 20473 | 10,745 | 10,796 |
Trade Maps Ltd., 2013-1-A-A, 0.854% 20183,4,10 | 14,685 | 14,735 |
Trade Maps Ltd., 2013-1-A-B, 1.404% 20183,4,10 | 2,900 | 2,920 |
Aesop Funding LLC, Series 2011-2A, Class A, 2.37% 20143 | 1,779 | 1,786 |
Aesop Funding LLC, Series 2013-2A, Class A, 2.97% 20203 | 14,750 | 15,252 |
Vega ContainerVessel PLC, Series 2006-1, Class A, XLCA insured, 5.562% 20213,10 | 16,925 | 16,925 |
Ally Master Owner Trust, Series 2014-1, Class A1, 0.622% 20194 | 8,015 | 8,030 |
Ally Master Owner Trust, Series 2014-1, Class A2, 1.29% 2019 | 8,700 | 8,725 |
Chesapeake Funding LLC, Series 2014-1-A, Class A, 0.571% 20263,4 | 16,700 | 16,708 |
Citibank Credit Card Issuance Trust, Series 2014-A-2, Class A-2, 1.02% 2019 | 7,520 | 7,516 |
Citibank Credit Card Issuance Trust, Series 2014-A5, Class A5, 2.68% 2023 | 8,020 | 8,058 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Asset-backed obligations5 (continued) | (000) | (000) |
BA Credit Card Trust, Series 2014-A1, Class A, 0.532% 20214 | $12,590 | $ 12,610 |
Enterprise Fleet Financing LLC, Series 2014-1, Class A2, 0.87% 20193 | 11,395 | 11,408 |
Appalachian Consumer Rate Relief Funding LLC, Series 2013-1, Class A-1, 2.01% 2024 | 6,800 | 6,798 |
Appalachian Consumer Rate Relief Funding LLC, Series 2013-1, Class A-2, 3.77% 2031 | 4,215 | 4,364 |
Fifth Third Auto Trust, Series 2014-1, Class A3, 0.68% 2018 | 10,175 | 10,184 |
Chrysler Capital Auto Receivables Trust, Series 2014-A-A, Class A-3, 0.83% 20183 | 5,775 | 5,778 |
Chrysler Capital Auto Receivables Trust, Series 2014-A-A, Class A-4, 1.31% 20193 | 3,850 | 3,856 |
AEP Texas Central Transitioning Funding II LLC, Secured Transition Bonds, Series A, Class A-3, 5.09% 2017 | 9,071 | 9,292 |
World Financial Network Credit Card Master Note Trust, Series 2014-A, Class A, 0.532% 20194 | 8,700 | 8,715 |
Capital Auto Receivables Asset Trust, Series 2014-1-A2, 0.96% 2017 | 7,760 | 7,791 |
Utility Debt Securitization Auth., Series 2013-T, 3.435% 2025 | 6,735 | 7,037 |
Flagstar Home Equity Loan Trust, Series 2006-2A, Class A, FSA insured, 0.312% 20193,4 | 7,208 | 6,925 |
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-4, 6.57% 2027 | 3,205 | 3,352 |
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-5, 7.12% 2032 | 3,000 | 3,270 |
Home Equity Asset Trust, Series 2004-7, Class M-1, 1.082% 20354 | 6,500 | 6,199 |
IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series 2007-H1, Class A-1, FSA insured, 0.312% 20374 | 6,793 | 6,061 |
Santander Drive Auto Receivables Trust, Series 2014-3, Class A3, 0.81% 2018 | 6,000 | 6,004 |
ARI Fleet Lease Trust, Series 2014-A, Class A-2, 0.81% 20223 | 5,320 | 5,319 |
Lehman ABS Manufactured Housing Contract Trust, Series 2002-A, Class A, 0.601% 20334 | 1,964 | 1,917 |
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-3, 4.35% 2040 | 873 | 898 |
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-4, 5.27% 2040 | 448 | 470 |
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-5, 5.873% 2040 | 1,470 | 1,561 |
Hilton Grand Vacation Trust, Series 2014-AA, Class A, 1.77% 20263 | 4,500 | 4,505 |
Hyundai Auto Receivables Trust, Series 2014-A, Class A2, 0.46% 2017 | 4,485 | 4,487 |
SLM Private Credit Student Loan Trust, Series 2014-A, Class A-1, 0.752% 20223,4 | 4,336 | 4,351 |
SLM Student Loan Trust, Series 2003-10, Class A-4, 5.15% 20393 | £1,160 | 1,939 |
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class A-4, 6.57% 2024 | $2,109 | 2,154 |
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class M-1, 7.82% 2032 | 994 | 1,059 |
Volkswagen Auto Lease Trust, Series 2014-A, Class A-3, 0.80% 2017 | 2,910 | 2,917 |
RAMP Trust, Series 2004-RS10, Class A-I-6, 4.55% 2034 | 2,831 | 2,883 |
UCFC Manufactured Housing Contract, Series 1996-2, Class A, MBIA insured, 7.135% 2028 | 2,526 | 2,645 |
Toyota Auto Receivables Owner Trust, Series 2014-B, Class A3, 0.76% 2018 | 2,500 | 2,502 |
Conseco Finance Securitizations Corp., Series 2002-2, Class A-2, 6.03% 2033 | 2,174 | 2,229 |
Green Tree Financial Corp., Series 1997-6, Class A-7, 7.14% 2029 | 1,296 | 1,363 |
Conseco Finance Home Equity Loan Trust, Series 2002-B, Class M-1, 1.902% 20334 | 808 | 805 |
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-1, 5.73% 2035 | 1,119 | 1,181 |
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-2, 6.51% 2035 | 896 | 973 |
Residential Funding Mortgage Securities II, Inc., Series 2006-HSA3, Class A, FSA insured, 0.282% 20363 | 962 | 858 |
554,010 | ||
Municipals 1.83% | ||
State of California, Various Purpose G.O. Bonds, 7.50% 2034 | 4,240 | 6,058 |
State of California, Various Purpose G.O. Bonds, 7.30% 20395 | 2,290 | 3,236 |
State of California, Various Purpose G.O. Bonds, 7.35% 2039 | 1,335 | 1,903 |
State of California, Various Purpose G.O. Bonds, 7.55% 2039 | 11,680 | 17,439 |
State of California, Various Purpose G.O. Bonds, 7.60% 2040 | 30,435 | 46,269 |
State of California, Various Purpose G.O. Bonds, 7.625% 2040 | 6,830 | 10,080 |
State of California, Various Purpose G.O. Bonds, 4.50% 2043 | 17,000 | 17,928 |
State of California, Various Purpose G.O. Bonds, 5.00% 2043 | 21,685 | 23,989 |
State of California, Various Purpose G.O. Bonds, 5.00% 2043 | 4,050 | 4,508 |
State of Florida, Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2013-A, 2.107% 2018 | 8,000 | 8,041 |
State of Florida, Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2013-A, 2.995% 2020 | 40,090 | 40,519 |
State of Illinois, G.O. Bonds, Build America Bonds, Series 2010-3, 5.727% 2020 | 17,000 | 18,376 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Municipals (continued) | (000) | (000) |
State of Illinois, G.O. Bonds, Series 2014, 5.00% 2039 | $21,150 | $22,024 |
State of New York, New York City Municipal Water Fin. Auth., Water and Sewer System Second General | ||
Resolution Rev. Bonds, Fiscal 2012 Series CC, 5.00% 2045 | 10,000 | 10,851 |
State of New York, New York City Municipal Water Fin. Auth., Water and Sewer System Second General | ||
Resolution Rev. Bonds, Fiscal 2014 Series BB, 5.00% 2046 | 23,100 | 25,252 |
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-A-1, 5.00% 2044 | 15,690 | 17,027 |
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-B, 5.00% 2044 | 10,000 | 10,890 |
State of California, Public Works Board, Lease Rev. Bonds (Dept. of Corrections and Rehabilitation), | ||
Series 2014-A, 5.00% 2039 | 20,000 | 22,159 |
State of Texas, Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Bonds, | ||
Series 2013-B, 5.25% 2051 | 10,000 | 10,962 |
State of Texas, Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Bonds, | ||
Series 2013-B, 5.00% 2053 | 10,000 | 10,731 |
State of California, Regents of The University of California, Limited Project Rev. Bonds, | ||
Series 2012-G, 5.00% 2042 | 16,305 | 17,840 |
State of Illinois, Chicago Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2014, 5.25% 2049 | 15,000 | 16,391 |
State of Illinois, Regional Transportation Auth. of Cook, DuPage, Kane, Lake, McHenry and Will Counties, | ||
G.O. Rev. Ref. Bonds, Series 2003-A, FGIC-National insured, 6.00% 2033 | 12,120 | 16,189 |
State of New York, Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), | ||
Series 2014-C, 5.00% 2044 | 10,000 | 11,142 |
State of New Jersey, Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, | ||
Series 2013-B, 1.758% 2018 | 10,500 | 10,377 |
State of Illinois, Board of Trustees of the University of Illinois, University of Illinois Auxiliary Facs. System Rev. | ||
Bonds, Series 2014-A, 5.00% 2044 | 8,500 | 9,234 |
State of Puerto Rico, Public Improvement Ref. Bonds (G.O. Bonds), Series 2014-A, 8.00% 2035 | 10,000 | 8,817 |
State of Minnesota, Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2013-A, AMT, 3.00% 2031 | 2,060 | 2,113 |
State of Minnesota, Housing Fin. Agcy., Homeownership Fin. Bonds (GNMA and FNMA Pass-Through Program), | ||
Series 2012-B, 2.25% 20425 | 7,013 | 6,674 |
State of New York, Metropolitan Transportation Auth., Dedicated Tax Fund Bonds (Build America Bonds), | ||
Series 2009-C, 7.336% 2039 | 5,500 | 8,018 |
State of Washington, Energy Northwest, Columbia Generating Station Electric Rev. Bonds, | ||
Series 2012-E, 2.197% 2019 | 8,000 | 8,008 |
State of Texas, SA Energy Acquisition Public Fac. Corp., Gas Supply Rev. Bonds, Series 2007, 5.50% 2023 | 6,000 | 6,993 |
State of California, Sacramento County Sanitation Districts Fncg. Auth. Rev. Bonds (Sacramento Regional | ||
County Sanitation District), Series 2014-A, 5.00% 2044 | 5,000 | 5,608 |
State of Illinois, Fin. Auth. Rev Bonds, The University of Chicago, Series 2012-A, 5.00% 2051 | 5,000 | 5,292 |
State of New York, Liberty Dev. Corp., Liberty Rev. Ref. Bonds (4 World Trade Center Project), | ||
Series 2011, 5.00% 2044 | 4,660 | 5,046 |
State of Nebraska, Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2013-A, 3.00% 2043 | 1,700 | 1,778 |
State of Nebraska, Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2013-E, 3.00% 2043 | 575 | 604 |
State of Nebraska, Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2013-E, 3.00% 2043 | 480 | 501 |
State of Nebraska, Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2013-C, 4.50% 2043 | 1,785 | 1,914 |
State of Maryland, Community Dev. Administration, Dept. of Housing and Community Dev., Residential Rev. | ||
Bonds, Series 2014-B, AMT, 3.25% 2044 | 4,510 | 4,736 |
State of South Carolina, Public Service Auth., Rev. Obligations (Santee Cooper), Series 2014-A, 5.00% 2049 | 4,300 | 4,615 |
State of Florida, Miami-Dade County Expressway Auth., Toll System Rev. Ref. Bonds, Series 2014-A, 5.00% 2044 | 3,000 | 3,267 |
State of California, Regents of the University of California, General Rev. Bonds, Series 2014-AN, 4.765% 2044 | 2,600 | 2,698 |
State of California, Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), | ||
Series 2011-A-2, 0.34% 2038 (put 2017)4 | 2,400 | 2,400 |
State of North Dakota, Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), | ||
Series 2012-A, 3.75% 2042 | 2,115 | 2,255 |
State of Kentucky, Housing Corp., Housing Rev. Bonds, Series 2013-D, 3.50% 2033 | 1,975 | 2,112 |
State of Tennessee, Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2013-2-A, AMT, 4.00% 2043 | 1,080 | 1,154 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Municipals (continued) | (000) | (000) |
State of Maryland, Montgomery County Housing Opportunities Commission, Single-family Housing Rev. | ||
Bonds, Series 2013-A, 4.00% 2031 | $935 | $ 1,017 |
State of South Dakota, Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2013-E, AMT, 4.00% 2044 | 875 | 932 |
State of Massachusetts, Housing Fin. Agcy., Single-family Housing Rev. Bonds, Series 167, 4.00% 2043 | 705 | 770 |
State of Illinois, Housing Dev. Auth., Housing Rev. Bonds, Series 2013-A, 2.45% 20435 | 759 | 733 |
497,470 | ||
Total bonds, notes & other debt instruments (cost: $26,673,111,000) | 27,526,375 | |
Convertible securities 0.06% | ||
Industrials 0.06% | Shares | |
CEVA Group PLC, Series A-2, 2.234% convertible preferred10,12 | 2,576 | 2,962 |
CEVA Group PLC, Series A-1, 3.234% convertible preferred10 | 9,732 | 14,841 |
17,803 | ||
Total convertible securities (cost: $13,570,000) | 17,803 | |
Preferred securities 0.02% | ||
U.S. government agency securities 0.02% | ||
CoBank, ABC, Class E, noncumulative3 | 6,250 | 4,281 |
Total preferred securities (cost: $5,820,000) | 4,281 | |
Common stocks 0.09% | ||
Industrials 0.05% | ||
CEVA Group PLC3,10,13 | 12,179 | 14,005 |
Atrium Corp.3,10,13 | 985 | 1 |
14,006 | ||
Health care 0.02% | ||
Rotech Healthcare Inc.10,13 | 342,069 | 4,618 |
Materials 0.01% | ||
NewPage Holdings Inc.10,12 | 45,840 | 4,082 |
Consumer discretionary 0.01% | ||
American Media, Inc.3,10,13 | 453,779 | 2,019 |
Revel AC Inc.10,12,13 | 222,053 | — |
2,019 | ||
Energy 0.00% | ||
General Maritime Corp.3,10,13 | 1,716 | 60 |
Total common stocks (cost: $80,571,000) | 24,785 | |
Rights & warrants 0.00% | Value | |
Energy 0.00% | Shares | (000) |
General Maritime Corp., warrants, expire 20173,10,13 | 2,654 | $ 8 |
Total warrants (cost: $671,000) | 8 | |
Principal amount | ||
Short-term securities 13.18% | (000) | |
Freddie Mac 0.06%–0.16% due 10/17/2014–6/16/2015 | $1,145,900 | 1,145,258 |
Federal Home Loan Bank 0.045%–0.15% due 7/2/2014–3/23/2015 | 961,352 | 961,202 |
Fannie Mae 0.05%–0.13% due 7/23/2014–1/5/2015 | 327,700 | 327,617 |
Federal Farm Credit Banks 0.10%–0.14% due 7/16/2014–3/30/2015 | 297,500 | 297,344 |
Coca-Cola Co. 0.11%–0.14% due 7/23–11/12/20143 | 161,900 | 161,856 |
Procter & Gamble Co. 0.08%–0.09% due 7/7–8/11/20143 | 139,900 | 139,896 |
Jupiter Securitization Co., LLC 0.28% due 11/4/20143 | 100,000 | 99,931 |
Chariot Funding, LLC 0.21% due 12/12/20143 | 25,000 | 24,978 |
Chevron Corp. 0.07% due 7/9–7/10/20143 | 109,400 | 109,398 |
Abbott Laboratories 0.10% due 8/11–9/3/20143 | 77,800 | 77,792 |
Private Export Funding Corp. 0.16%–0.235% due 8/15–9/12/20143 | 54,400 | 54,390 |
General Electric Capital Corp. 0.13% due 10/1/2014 | 50,000 | 49,986 |
Emerson Electric Co. 0.10% due 7/29/20143 | 45,000 | 44,997 |
NetJets Inc. 0.06% due 7/2/20143 | 34,600 | 34,600 |
Harvard University 0.10% due 7/16/2014 | 30,162 | 30,162 |
Paccar Financial Corp. 0.11% due 9/12/2014 | 22,100 | 22,092 |
Walt Disney Co. 0.09% due 7/31/20143 | 5,800 | 5,800 |
Total short-term securities (cost $3,587,048,000) | 3,587,299 | |
Total investment securities (cost: $30,360,791,000) | 31,160,551 | |
Other assets less liabilities | (3,944,531) | |
Net assets | $27,216,020 |
1A portion of this security was pledged as collateral. The total value of pledged collateral was $32,310,000, which represented ..12% of the net assets of the fund.
2Index-linked bond whose principal amount moves with a government price index.
3Acquired 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 $3,612,606,000, which represented 13.27% of the net assets of the fund.
4Coupon rate may change periodically.
5Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
6Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $157,554,000, which represented .58% of the net assets of the fund.
7Payment in kind; the issuer has the option of paying additional securities in lieu of cash.
8Step bond; coupon rate will increase at a later date.
9Scheduled interest and/or principal payment was not received.
10Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $112,656,000, which represented .41% of the net assets of the fund.
11A portion or all of this security purchased on a TBA basis.
12Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below.
13Security did not produce income during the last 12 months.
Percent | ||||
Acquisition | Cost | Value | of net | |
dates | (000) | (000) | assets | |
NewPage Holdings Inc. | 9/17/2009–9/9/2011 | $ 7,779 | $ 4,082 | .02% |
CEVA Group PLC, Series A-2, 2.234% | ||||
convertible preferred | 3/10/2010–1/23/2012 | 3,703 | 2,962 | .01 |
Revel AC, Inc. | 2/14/2011–10/25/2012 | 23,124 | — | .00 |
Total restricted securities | $34,606 | $7,044 | .03% |
Key to abbreviations and symbols | |||
Agcy. = Agency | Fin. = Finance | BRL = Brazilian reais | PHP = Philippine pesos |
AMT = Alternative Minimum Tax | Fncg. = Financing | CLP = Chilean pesos | PLN = Polish zloty |
Auth. = Authority | G.O. = General Obligation | COP = Colombian pesos | RUB = Russian rubles |
Dept. = Department | Ref. = Refunding | € = Euros | SKr = Swedish kronor |
Dev. = Development | Rev. = Revenue | £ = British pounds | TRY = Turkish lira |
Fac. = Facility | TBA = To be announced | ¥ = Japanese yen | UYU = Uruguayan pesos |
Facs. = Facilities | A$ = Australian dollars | MXN = Mexican pesos | ZAR = South African rand |
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.
MFGEFPX-008-0814O-S42162
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.
THE BOND FUND OF AMERICA | |
By /s/ John H. Smet | |
John H. Smet, Vice Chairman, President and Principal Executive Officer | |
Date: August 29, 2014 |
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/ John H. Smet |
John H. Smet, Vice Chairman, President and Principal Executive Officer |
Date: August 29, 2014 |
By /s/ Brian C. Janssen |
Brian C. Janssen, Treasurer and Principal Financial Officer |
Date: August 29, 2014 |