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: 811-23101
American Funds Strategic Bond Fund
(Exact Name of Registrant as Specified in Charter)
6455 Irvine Center Drive
Irvine, California 92618
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (949) 975-5000
Date of fiscal year end: December 31
Date of reporting period: December 31, 2023
Becky L. Park
American Funds Strategic Bond Fund
6455 Irvine Center Drive
Irvine, California 92618
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
American Funds® Strategic Bond Fund Annual report for the year ended December 31, 2023 |  |
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Our distinctive
approach relies
on flexibility in the
pursuit of enhanced
long-term results
The Securities and Exchange Commission has adopted new regulations that will change the content and design of annual and semi-annual shareholder reports beginning in July 2024. Certain types of information, including investment portfolio and financial statements, will not be included in the shareholder reports but will be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications from the fund electronically, you may update your mailing preferences with your financial intermediary or enroll in e-delivery at capitalgroup.com (for accounts held directly with the fund).
American Funds Strategic Bond Fund seeks to provide maximum total return consistent with the preservation of capital.
This fund is one of more than 40 offered by Capital Group, home of American Funds, one of the nation’s largest mutual fund families. For over 90 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class F-2 shares. Class A share results are shown at net asset value unless otherwise indicated. If a sales charge (maximum 3.75%) had been deducted from Class A shares, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com.
Refer to page 4 for Class A share results with relevant sales charges deducted. For other share class results, visit capitalgroup.com and americanfundsretirement.com.
The total annual fund operating expense ratios are 0.42% for Class F-2 shares and 0.72% for Class A shares as of the prospectus dated March 1, 2024 (unaudited).
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, results reflect fee waivers and/or expense reimbursements, without which they would have been lower. Visit capitalgroup.com for more information.
The fund’s 30-day yield as of December 31, 2023, was 5.06% for Class F-2 shares and 4.58% for Class A shares, calculated in accordance with the U.S. Securities and Exchange Commission formula. The Class A share result reflects the 3.75% maximum sales charge.
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. The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Investing outside the United States involves additional risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Contents
Fellow investors:
Bond markets experienced a volatile year in 2023, as inflation’s downward trend firmed, leading some central banks to begin the pivot away from interest rate hikes. Fixed income returns were challenged in earlier quarters, but benefited late in the year as yields began to drift down. For the 12 months ended December 31, American Funds Strategic Bond Fund F-2 share class returned 1.82%.
By comparison, the unmanaged Bloomberg U.S. Aggregate Index, the core bond benchmark, returned 5.53%. The fund’s peer group, the Lipper Core Plus Bond Funds Average, returned 6.04%.
During the 12-month period, the fund paid distributions totaling 30 cents a share. This resulted in an income return of 3.20% for those investors who reinvested dividends and 3.16% for those who took them in cash.
Bond market overview
Last year was characterized by intense volatility as the market seesawed in response to murky readings on the path of inflation, Federal Reserve policy changes and the health of the U.S. economy. Early in the year, many investors hoped that declining inflation could pave the way for a more accommodative Fed. Markets were also on watch for a potential recession and signs of strain from higher interest rates. In March, those fears appeared to manifest with the collapse of Silicon Valley Bank. Yields plunged on fears of a broader downturn, but the fallout was brief as regulators moved swiftly to seize the lender and limit contagion and panic.
Not only did a downturn fail to materialize, but the U.S. economy came surging back with GDP growth reaching nearly 5% in the third quarter. “Surprisingly resilient” was a phrase that came to characterize everything from the state of the labor market to consumer spending and the U.S. economy at large. Against this backdrop, the Fed raised the federal funds rate a full percentage point over the year, bringing the policy rate target range to a nearly 22-year high of 5.25%-5.5%. The Fed implemented what may be its final rate hike of the cycle in July after seeing adequate signs of a disinflationary trend in pricing data. Still, relief for bondholders was short-lived. In September the Fed revised its policy rate projection, suggesting interest rates would fall more slowly in future years
Results at a glance
For periods ended December 31, 2023, with all distributions reinvested
| | Cumulative total returns | | Average annual total returns |
| | 1 year | | 3 years | | 5 years | | Lifetime (since 3/18/16) |
| | | | | | | | |
American Funds Strategic Bond Fund (Class F-2 shares) | | | 1.82 | % | | | –4.04 | % | | | 2.50 | % | | | 2.37 | % |
American Funds Strategic Bond Fund (Class A shares) | | | 1.52 | | | | –4.32 | | | | 2.21 | | | | 2.11 | |
Bloomberg U.S. Aggregate Index* | | | 5.53 | | | | –3.31 | | | | 1.10 | | | | 1.19 | |
Lipper Core Plus Bond Funds Average† | | | 6.04 | | | | –3.21 | | | | 1.56 | | | | 1.66 | |
Past results are not predictive of results in future periods.
* | Source: Bloomberg Index Services Ltd. Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
† | Source: Refinitiv Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. For the number of funds included in the Lipper category for each fund’s lifetime, please refer to the Quarterly Statistical Update, available on our website. |
American Funds Strategic Bond Fund | 1 |
than previously indicated, and a narrative of “higher for longer” came to dominate markets.
Inflation, which peaked at 9.1% in June 2022 and started the year at 6.4%, dropped to 3.4% by December — not far from the Fed’s 2% target. In December, the Fed reversed course on its elevated rate projections and provided its clearest indication yet that it was done hiking rates. The move caught the market by surprise and ignited a rally that drove down yields and lifted bond returns. The 10-year U.S. Treasury yield finished 2023 at 3.88%, exactly where it started the year and down from an October high of near 5%. The yield curve has been inverted — meaning shorter term bond yields are higher than longer term bond yields — since 2022. On the shorter end of the curve, two-year U.S. Treasuries ended the year at 4.25%, down from 4.43% at its start and after an October high of 5.22%.
Over the course of the year, the potential for the Fed to engineer a “soft landing,” an outcome where rate cuts quell inflation without triggering a recession, went from a slim possibility to a feasible outcome. However, the economy showed some signs of weakening in the fourth quarter.
The annual return for the Bloomberg U.S. Aggregate Index (the “benchmark”) reached 5.53%, a stark reversal from a loss of –13.01% in 2022. The Bloomberg Global Aggregate Index1 recorded a 5.72% return in 2023.
As economic growth surprised to the upside, the Bloomberg U.S. Corporate Investment Grade Index 2 gained of 8.52%, with their risk premium relative to Treasuries (or “spread”) tightening 31 basis points. High-yield corporates did even better, with the Bloomberg U.S. Corporate High Yield Index 3 returning 13.44% as spreads tightened by 146 basis points. Emerging markets debt also saw double-digit returns, with local currency bonds outpacing dollar-denominated bonds via returns of 10.45% on the JPM EMBI Global Diversified 4 and 14.02% on the JPM GBI-EM Global Diversified 5.
The Bloomberg U.S. Mortgage Backed Securities Index 6 posted a gain of 5.05%, with the sector bouncing back in the fourth quarter after being hampered by heightened interest rate volatility. With inflation falling, the Bloomberg U.S. Treasury Inflation-Protected Securities7 Index posted a weaker relative return of 3.90%.
Inside the portfolio
As 2023 began, like many economists and financial analysts, managers anticipated a strong likelihood that the U.S. economy could be in or near a recession by year-end. We positioned American Funds Strategic Bond Fund accordingly within its distinctive core-plus approach that strives to provide diversification from equity volatility. That included investments focused on interest rate and credit strategies, consisting largely of high-quality assets such as U.S. Treasuries and investment-grade bonds.
Seeking to protect investors from risks managers sensed, we implemented a conservative stance as the year began. We held a high conviction regarding how rates were likely to shift across the Treasury yield curve. Sharp interest rate hikes and other factors led shorter term bond yields to rise by more than longer term bond yields in 2022. That led to 2023 starting with an inverted yield curve, where short-term bond yields exceed long-term bond yields. Historically, this is a harbinger of recession and a temporary phenomenon that reverses as that recession nears. Anticipating that inflation was waning and recession could be nearing, we believed the curve would steepen — meaning shorter term bond yields would fall relative to longer term bond yields. Although inflation did continue to decline throughout the year, a recession never materialized. Thus, rather than cuts, the Fed surprised markets by continuing to hike interest rates through mid-year. Therefore, while the curve did steepen modestly late in the year, the broader thesis did not play out and negatively impacted returns relative to the fund’s benchmark index.
From a broader interest rate strategy perspective, the fund was also positioned to benefit from yields drifting down early
Past results are not predictive of results in future periods.
1 | Bloomberg Global Aggregate Index represents the global investment-grade fixed income markets. |
2 | Bloomberg U.S. Corporate Investment Grade Index represents the universe of investment-grade, publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. |
3 | Bloomberg U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment-grade debt. |
4 | J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified: The J.P. Morgan Emerging Market Bond Index (EMBI) Global Diversified is a uniquely weighted emerging market debt benchmark that tracks total returns for U.S. dollar-denominated bonds issued by emerging market sovereign and quasi-sovereign entities. |
5 | J.P. Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified: JP Morgan Government Bond Index – Emerging Markets Global Diversified covers the universe of regularly traded, liquid fixed-rate, domestic currency emerging market government bonds to which international investors can gain exposure. |
6 | Bloomberg U.S. Mortgage Backed Securities Index is a market-value-weighted index that covers the mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). |
7 | Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) Index consists of investment-grade, fixed-rate, publicly placed, dollar-denominated and non-convertible inflation-protected securities issued by the U.S. Treasury that have at least one year remaining to maturity, and have at least $250 million par amount outstanding. |
2 | American Funds Strategic Bond Fund |
in the year, as regional bank turmoil temporarily gripped markets. At that time the portfolio had more exposure to short-term interest rates than the index, which provided a lift to returns. However, the economic impact of those bank sector troubles was more modest than anticipated so that interest rate exposure proved a drag on results as yields continued to climb in the middle part of the year.
The fund’s credit exposure also expressed managers’ conservative stance. It maintained an exposure to corporate bonds less than that of its benchmark index throughout the year. However, as the U.S. economy’s resilience came into focus, those sectors flourished. Their robust returns, driven by both strong yields and tightening spreads, led the conservative position to detract from fund results relative to the benchmark. Good security selection in the industrial and banking sectors helped to staunch some of those losses.
The portfolio also held a position in Treasury Inflation-Protected Securities (TIPS), to serve as a hedge to its broadly cautious positioning. Had the economy avoided recession, managers expected inflation to also persist at higher levels. However, growth was maintained alongside falling inflation. As TIPS returns lagged those of other bond sectors, the portfolio holding also slightly hurt relative results.
In terms of non-U.S. investments, emerging markets debt was a bright spot. Holding a greater allocation than the benchmark led to a positive relative contribution as the sector’s returns came in strong. However, an investment in Japanese yen over-shadowed that positive impact. Managers believed the currency would gain value in an economic slowdown. Instead, it lost value relative to the benchmark alongside sustained economic growth.
Throughout the course of the year, managers utilized interest rate and credit default swaps to execute their investment convictions more efficiently. The results for interest rate swaps and futures were mixed over the period. Credit default swaps, however, were a notable detractor, in a year when corporate bonds outpaced most other sectors.
Looking ahead
As 2024 begins, we are seeing some clear economic weakness. One example is commercial real estate fundamentals, especially in multifamily properties. Apartment rent growth is roughly flat entering the year as apartment supply has hit its highest level since 1987. The Conference Board’s leading economic indicators have also worsened, with new manufacturing orders, permit requests for residential real estate, consumer expectations for business and some others pointing negative.
As the economy potentially slows, however, spreads to Treasuries look even tighter across many bond sectors than at the start of 2023. For example, investment-grade corporate spreads have tightened to 99 from 130 basis points. Similarly, high-yield corporate spreads have narrowed to 323 from 469 basis points. These are very tight levels on a historical basis. This means that investors aren’t being compensated much for taking risk at a time when economic indicators increasingly suggest softening. For this reason, managers remain cautious on credit and related sectors, as current valuations appear expensive.
Because inflation’s decline appears to be a sustained trend, markets have begun pricing in Fed rate cuts for 2024, alongside the Fed’s own projections of lower rates by year end. These cuts seem plausible even if the economy doesn’t enter recession, due to falling inflation. The Fed wants to keep its real policy rate — which subtracts inflation from its nominal rate — steady. If inflation slides down to the Fed’s 2% target, that will likely require several maintenance rate cuts. We anticipate that the Fed’s target could be hit even earlier than it projects, possibly as soon as this summer, based on our analyst research.
Recession is another possibility. If the U.S. economy begins to contract, the central bank may seek to cut rates even more aggressively to support economic stability. Those cuts could surpass the 150 basis points or so that the market is currently pricing in for 2024. A recession would also serve as a headwind to credit sector returns.
For these reasons, managers maintain the view that the yield curve is likely to steepen and are positioned along the yield curve accordingly. We believe that, whether due to maintenance cuts or deeper cuts driven by recession, shorter term yields should begin to fall in time. This would normalize the yield curve, pushing those shorter term bond yields lower than longer term bond yields. The portfolio expresses this view through more exposure to short-term bond yields relative to long-term bond yields.
Sensing growing risk last year, American Funds Strategic Bond Fund sought to protect investors and provide diversification from potential equity market turmoil. While the market turned out differently than expected, managers today see stronger reasons, from weakening economic indicators to very tight credit spreads, to maintain a cautious stance. As the market cycles through ups and downs, we will continue to pursue excess returns predominately through investments in high-quality bonds that seek to anchor a portfolio. Our management team values your trust and support.
Cordially,

Ritchie R. Tuazon
President
February 8, 2024
For current information about the fund, visit capitalgroup.com.
American Funds Strategic Bond Fund | 3 |
The value of a $10,000 investment
How a hypothetical $10,000 investment has fared (for the period March 18, 2016, to December 31, 2023, with distributions reinvested).
Fund results shown are for Class F-2 and Class A shares. Class A share results reflect deduction of the maximum sales charge of 3.75% on the $10,000 investment. Thus, the net amount invested was $9,625.1 Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com.
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1 | As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $500,000 or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares. |
2 | Source: Refinitiv Lipper. Results of the Lipper Core Plus Bond Funds Average do not reflect any sales charges. Lipper categories are dynamic and averages may have few funds, especially over longer periods. For the number of funds included in the Lipper category for each fund’s lifetime, please refer to the Quarterly Statistical Update, available on our website. |
3 | Source: Bloomberg Index Services Ltd. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
The results shown are before taxes on fund distributions and sale of fund shares.
Average annual total returns based on a $1,000 investment (for periods ended December 31, 2023)
| | 1 year | | 5 years | | Lifetime (since 3/18/16) |
| | | | | | |
Class F-2 shares | | | 1.82 | % | | | 2.50 | % | | | 2.37 | % |
Class A shares* | | | –2.32 | | | | 1.44 | | | | 1.61 | |
* | Assumes payment of the maximum 3.75% sales charge. |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, results reflect fee waivers and/or expense reimbursements, without which they would have been lower. Visit capitalgroup.com for more information.
4 | American Funds Strategic Bond Fund |
Investment portfolio December 31, 2023
Portfolio by type of security | Percent of net assets |
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Portfolio quality summary* | | Percent of net assets |
U.S. Treasury and agency† | | | 17.13 | % |
AAA/Aaa | | | 32.37 | |
AA/Aa | | | 5.72 | |
A/A | | | 10.37 | |
BBB/Baa | | | 13.57 | |
Below investment grade | | | 11.67 | |
Unrated | | | .78 | |
Short-term securities & other assets less liabilities | | | 8.39 | |
* | Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and/or Fitch. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. 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. The ratings are not covered by the Report of Independent Registered Public Accounting Firm. |
† | These securities are guaranteed by the full faith and credit of the U.S. government. |
Bonds, notes & other debt instruments 90.83% | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations 34.30% | | | | | | |
Federal agency mortgage-backed obligations 28.49% | | | | | | | | |
Fannie Mae Pool #FS5372 3.50% 7/1/20491 | | USD | 196,922 | | | $ | 183,857 | |
Fannie Mae Pool #CA7052 3.00% 9/1/20501 | | | 2,874 | | | | 2,563 | |
Fannie Mae Pool #CA7737 2.50% 11/1/20501 | | | 41,924 | | | | 35,810 | |
Fannie Mae Pool #MA4237 2.00% 1/1/20511 | | | 28,532 | | | | 23,471 | |
Fannie Mae Pool #BR2666 2.00% 2/1/20511 | | | 8,677 | | | | 7,221 | |
Fannie Mae Pool #MA4282 2.50% 3/1/20511 | | | 7,335 | | | | 6,277 | |
Fannie Mae Pool #MA4306 2.50% 4/1/20511 | | | 29,324 | | | | 25,111 | |
Fannie Mae Pool #CB0046 3.00% 4/1/20511 | | | 136,061 | | | | 120,704 | |
Fannie Mae Pool #CB0191 3.00% 4/1/20511 | | | 45,059 | | | | 40,248 | |
Fannie Mae Pool #CB0193 3.00% 4/1/20511 | | | 5,420 | | | | 4,838 | |
Fannie Mae Pool #FM7803 2.00% 6/1/20511 | | | 11,268 | | | | 9,378 | |
Fannie Mae Pool #FM7909 3.00% 6/1/20511 | | | 4,236 | | | | 3,781 | |
Fannie Mae Pool #FM9068 2.50% 10/1/20511 | | | 10,300 | | | | 8,811 | |
Fannie Mae Pool #FS4628 3.00% 10/1/20511 | | | 7,730 | | | | 6,900 | |
Fannie Mae Pool #BT9483 2.50% 12/1/20511 | | | 1,071 | | | | 923 | |
Fannie Mae Pool #BT9510 2.50% 12/1/20511 | | | 1,067 | | | | 920 | |
Fannie Mae Pool #CB2319 2.50% 12/1/20511 | | | 1,054 | | | | 908 | |
Fannie Mae Pool #CB2372 2.50% 12/1/20511 | | | 516 | | | | 444 | |
Fannie Mae Pool #BT8154 4.00% 5/1/20521 | | | 6,528 | | | | 6,175 | |
Fannie Mae Pool #CB4118 4.00% 7/1/20521 | | | 4,990 | | | | 4,722 | |
Fannie Mae Pool #FS2654 4.00% 8/1/20521 | | | 11,994 | | | | 11,350 | |
Fannie Mae Pool #CB4384 4.50% 8/1/20521 | | | 227,779 | | | | 221,763 | |
Fannie Mae Pool #CB4548 4.00% 9/1/20521 | | | 9,170 | | | | 8,676 | |
Fannie Mae Pool #BW1192 4.50% 9/1/20521 | | | 26,139 | | | | 25,357 | |
American Funds Strategic Bond Fund | 5 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | | | |
Federal agency mortgage-backed obligations (continued) | | | | | | | | |
Fannie Mae Pool #BV8052 4.50% 9/1/20521 | | USD | 13,849 | | | $ | 13,434 | |
Fannie Mae Pool #BW7702 4.50% 9/1/20521 | | | — | 2 | | | — | 2 |
Fannie Mae Pool #CB4851 4.50% 10/1/20521 | | | 233,314 | | | | 226,325 | |
Fannie Mae Pool #CB4801 4.50% 10/1/20521 | | | 180,337 | | | | 174,936 | |
Fannie Mae Pool #MA4785 5.00% 10/1/20521 | | | 176,235 | | | | 174,647 | |
Fannie Mae Pool #FS5994 5.00% 10/1/20521 | | | 146,798 | | | | 145,477 | |
Fannie Mae Pool #FS5554 4.50% 11/1/20521 | | | 27,540 | | | | 26,715 | |
Fannie Mae Pool #BV7577 4.50% 11/1/20521 | | | 22,020 | | | | 21,361 | |
Fannie Mae Pool #BW5065 5.00% 1/1/20531 | | | 6,180 | | | | 6,122 | |
Fannie Mae Pool #CB5633 4.50% 2/1/20531 | | | 128,593 | | | | 124,741 | |
Fannie Mae Pool #BX5114 5.00% 2/1/20531 | | | 60,915 | | | | 60,335 | |
Fannie Mae Pool #BW1849 5.00% 2/1/20531 | | | 1,670 | | | | 1,655 | |
Fannie Mae Pool #BX6074 5.00% 3/1/20531 | | | 84,015 | | | | 83,216 | |
Fannie Mae Pool #FS4142 5.00% 3/1/20531 | | | 73,863 | | | | 73,198 | |
Fannie Mae Pool #MA4993 4.00% 4/1/20531 | | | 5,588 | | | | 5,286 | |
Fannie Mae Pool #CB6303 4.50% 5/1/20531 | | | 10,980 | | | | 10,649 | |
Fannie Mae Pool #FS4563 5.00% 5/1/20531 | | | 4,776 | | | | 4,731 | |
Fannie Mae Pool #MA5054 4.00% 6/1/20531 | | | 6,115 | | | | 5,785 | |
Fannie Mae Pool #MA5038 5.00% 6/1/20531 | | | 200,001 | | | | 197,941 | |
Fannie Mae Pool #CB6485 6.00% 6/1/20531 | | | 78 | | | | 79 | |
Fannie Mae Pool #CB6486 6.00% 6/1/20531 | | | 48 | | | | 49 | |
Fannie Mae Pool #CB6465 6.00% 6/1/20531 | | | 35 | | | | 35 | |
Fannie Mae Pool #MA5070 4.50% 7/1/20531 | | | 67,101 | | | | 65,080 | |
Fannie Mae Pool #MA5071 5.00% 7/1/20531 | | | 22,391 | | | | 22,157 | |
Fannie Mae Pool #MA5105 4.50% 8/1/20531 | | | 20,905 | | | | 20,275 | |
Fannie Mae Pool #MA5135 4.00% 9/1/20531 | | | 120,089 | | | | 113,572 | |
Fannie Mae Pool #CB7076 4.00% 9/1/20531 | | | 72,274 | | | | 68,369 | |
Fannie Mae Pool #CB7075 4.00% 9/1/20531 | | | 59,770 | | | | 56,530 | |
Fannie Mae Pool #MA5136 4.50% 9/1/20531 | | | 16,505 | | | | 16,008 | |
Fannie Mae Pool #MA5177 4.00% 10/1/20531 | | | 131,448 | | | | 124,314 | |
Fannie Mae Pool #MA5216 6.00% 12/1/20531 | | | 138,997 | | | | 141,165 | |
Fannie Mae Pool #MA5218 7.00% 12/1/20531 | | | 12,493 | | | | 12,894 | |
Freddie Mac Pool #RA3384 3.00% 8/1/20501 | | | 3,107 | | | | 2,775 | |
Freddie Mac Pool #QB8605 2.00% 2/1/20511 | | | 9,287 | | | | 7,725 | |
Freddie Mac Pool #SD0644 2.50% 7/1/20511 | | | 13,119 | | | | 11,223 | |
Freddie Mac Pool #SD7545 2.50% 9/1/20511 | | | 967 | | | | 835 | |
Freddie Mac Pool #SD2880 3.00% 10/1/20511 | | | 15,485 | | | | 13,816 | |
Freddie Mac Pool #SD7554 2.50% 4/1/20521 | | | 518 | | | | 447 | |
Freddie Mac Pool #SD1502 4.00% 7/1/20521 | | | 19,623 | | | | 18,570 | |
Freddie Mac Pool #QE8579 4.50% 8/1/20521 | | | 7,038 | | | | 6,828 | |
Freddie Mac Pool #SD8244 4.00% 9/1/20521 | | | 125,981 | | | | 119,206 | |
Freddie Mac Pool #QF0212 4.50% 9/1/20521 | | | 32,169 | | | | 31,205 | |
Freddie Mac Pool #QF0213 4.50% 9/1/20521 | | | 18,481 | | | | 17,928 | |
Freddie Mac Pool #QE9497 4.50% 9/1/20521 | | | 8,029 | | | | 7,788 | |
Freddie Mac Pool #SD1608 4.50% 9/1/20521 | | | 4,771 | | | | 4,628 | |
Freddie Mac Pool #SD2079 4.00% 10/1/20521 | | | 10,929 | | | | 10,342 | |
Freddie Mac Pool #QF1236 4.50% 10/1/20521 | | | 46,880 | | | | 45,476 | |
Freddie Mac Pool #SD2465 4.50% 10/1/20521 | | | 3,172 | | | | 3,077 | |
Freddie Mac Pool #SD2066 4.00% 12/1/20521 | | | 3,682 | | | | 3,484 | |
Freddie Mac Pool #SD8276 5.00% 12/1/20521 | | | 37,690 | | | | 37,316 | |
Freddie Mac Pool #SD8288 5.00% 1/1/20531 | | | 109,173 | | | | 108,089 | |
Freddie Mac Pool #QF5426 5.00% 1/1/20531 | | | 9,540 | | | | 9,454 | |
Freddie Mac Pool #QF7590 5.00% 2/1/20531 | | | 15,994 | | | | 15,844 | |
Freddie Mac Pool #QF8385 5.00% 2/1/20531 | | | 2,645 | | | | 2,620 | |
Freddie Mac Pool #QF9074 5.00% 2/1/20531 | | | 1,002 | | | | 993 | |
Freddie Mac Pool #SD2515 5.00% 3/1/20531 | | | 98,366 | | | | 97,441 | |
Freddie Mac Pool #QF8705 5.00% 3/1/20531 | | | 23,132 | | | | 22,918 | |
Freddie Mac Pool #SD2716 5.00% 4/1/20531 | | | 7,737 | | | | 7,666 | |
Freddie Mac Pool #SD8315 5.00% 4/1/20531 | | | 203 | | | | 201 | |
Freddie Mac Pool #SD8321 4.00% 5/1/20531 | | | 130,995 | | | | 123,923 | |
Freddie Mac Pool #RA8647 4.50% 5/1/20531 | | | 3,253 | | | | 3,156 | |
Freddie Mac Pool #SD8338 4.00% 6/1/20531 | | | 80,699 | | | | 76,330 | |
Freddie Mac Pool #SD8329 5.00% 6/1/20531 | | | 2,491 | | | | 2,465 | |
Freddie Mac Pool #RA9279 6.00% 6/1/20531 | | | 481 | | | | 491 | |
Freddie Mac Pool #RA9283 6.00% 6/1/20531 | | | 452 | | | | 460 | |
Freddie Mac Pool #RA9281 6.00% 6/1/20531 | | | 296 | | | | 301 | |
Freddie Mac Pool #RA9284 6.00% 6/1/20531 | | | 208 | | | | 215 | |
6 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | |
Federal agency mortgage-backed obligations (continued) | | | | | | | | |
Freddie Mac Pool #SD8341 5.00% 7/1/20531 | | USD | 32,127 | | | $ | 31,791 | |
Freddie Mac Pool #SD8375 4.00% 9/1/20531 | | | 78,405 | | | | 74,149 | |
Freddie Mac Pool #SD8360 4.50% 9/1/20531 | | | 24,577 | | | | 23,837 | |
Freddie Mac Pool #SD8384 6.00% 12/1/20531 | | | 49,148 | | | | 49,914 | |
Freddie Mac Pool #SD8386 7.00% 12/1/20531 | | | 34,509 | | | | 35,617 | |
FREMF Mortgage Trust, Series K-142, Class A2, 2.40% 3/25/20321 | | | 24,762 | | | | 21,371 | |
Government National Mortgage Assn. 4.00% 1/1/20541,3 | | | 120,340 | | | | 114,906 | |
Government National Mortgage Assn. Pool #MA7881 2.50% 2/20/20521 | | | 7,496 | | | | 6,556 | |
Government National Mortgage Assn. Pool #MA7987 2.50% 4/20/20521 | | | 7,970 | | | | 6,971 | |
Government National Mortgage Assn. Pool #MA8346 4.00% 10/20/20521 | | | 959 | | | | 915 | |
Government National Mortgage Assn. Pool #MA8426 4.00% 11/20/20521 | | | 41,170 | | | | 39,299 | |
Uniform Mortgage-Backed Security 2.00% 1/1/20541,3 | | | 228,045 | | | | 186,427 | |
Uniform Mortgage-Backed Security 2.50% 1/1/20541,3 | | | 56,073 | | | | 47,710 | |
Uniform Mortgage-Backed Security 3.00% 1/1/20541,3 | | | 245,874 | | | | 217,531 | |
Uniform Mortgage-Backed Security 3.50% 1/1/20541,3 | | | 12,092 | | | | 11,094 | |
Uniform Mortgage-Backed Security 4.00% 1/1/20541,3 | | | 76,820 | | | | 72,664 | |
Uniform Mortgage-Backed Security 5.00% 1/1/20541,3 | | | 154,976 | | | | 153,341 | |
Uniform Mortgage-Backed Security 6.00% 1/1/20541,3 | | | 3,580 | | | | 3,635 | |
Uniform Mortgage-Backed Security 6.50% 1/1/20541,3 | | | 9,966 | | | | 10,214 | |
Uniform Mortgage-Backed Security 7.00% 1/1/20541,3 | | | 145,868 | | | | 150,478 | |
Uniform Mortgage-Backed Security 2.50% 2/1/20541,3 | | | 81,800 | | | | 69,690 | |
Uniform Mortgage-Backed Security 3.50% 2/1/20541,3 | | | 97,908 | | | | 89,922 | |
Uniform Mortgage-Backed Security 6.00% 2/1/20541,3 | | | 2,000 | | | | 2,031 | |
Uniform Mortgage-Backed Security 6.50% 2/1/20541,3 | | | 153,034 | | | | 156,818 | |
| | | | | | | 5,149,406 | |
| | | | | | | | |
Commercial mortgage-backed securities 4.07% | | | | | | | | |
3650R Commercial Mortgage Trust, Series 2022-PF2, Class A5, 5.29% 11/15/20551,4 | | | 17,059 | | | | 17,294 | |
3650R Commercial Mortgage Trust, Series 2022-PF2, Class B, 5.29% 11/15/20551,4 | | | 3,591 | | | | 3,173 | |
3650R Commercial Mortgage Trust, Series 2022-PF2, Class AS, 5.29% 11/15/20551,4 | | | 2,000 | | | | 1,877 | |
Arbor Multi Family Mortgage Securities Trust, Series 2020-MF1, Class B, 3.599% 5/15/20531,4 | | | 1,500 | | | | 1,299 | |
Arbor Multi Family Mortgage Securities Trust, Series 2021-MF3, Class B, 2.511% 10/15/20541,5 | | | 375 | | | | 286 | |
Banc of America Commercial Mortgage, Inc., Series 2016-UB10, Class C, 4.825% 7/15/20491,4 | | | 2,500 | | | | 2,174 | |
Bank Commercial Mortgage Trust, Series 2023-5YR2, Class AS, 7.14% 6/15/20281,4 | | | 2,910 | | | | 3,038 | |
Bank Commercial Mortgage Trust, Series 2023-5YR2, Class C, 7.164% 7/15/20281,4 | | | 2,288 | | | | 2,191 | |
Bank Commercial Mortgage Trust, Series 2021-BN35, Class B, 2.528% 8/15/20311,4 | | | 5,000 | | | | 3,626 | |
Bank Commercial Mortgage Trust, Series 2022-BNK44, Class C, 5.745% 11/15/20321,4 | | | 2,000 | | | | 1,680 | |
Bank Commercial Mortgage Trust, Series 2022-BNK44, Class B, 5.745% 11/15/20321,4 | | | 1,111 | | | | 1,046 | |
Bank Commercial Mortgage Trust, Series 2019-BN23, Class C, 3.505% 12/15/20521,4 | | | 2,994 | | | | 2,222 | |
Bank Commercial Mortgage Trust, Series 2022-BNK39, Class A4, 2.928% 2/15/20551,4 | | | 86 | | | | 74 | |
Bank Commercial Mortgage Trust, Series 2022-BNK43, Class B, 5.153% 8/15/20551,4 | | | 1,750 | | | | 1,518 | |
Bank Commercial Mortgage Trust, Series 2023-BNK45, Class B, 6.148% 2/15/20561,4 | | | 1,873 | | | | 1,902 | |
Bank Commercial Mortgage Trust, Series 2023-BNK45, Class C, 6.279% 2/15/20561,4 | | | 512 | | | | 472 | |
Bank Commercial Mortgage Trust, Series 2023-5YR1, Class AS, 6.411% 3/15/20561,4 | | | 3,004 | | | | 3,068 | |
Bank Commercial Mortgage Trust, Series 2023-5YR1, Class B, 6.411% 3/15/20561,4 | | | 2,094 | | | | 2,018 | |
Bank Commercial Mortgage Trust, Series 2023-BNK46, Class B, 6.773% 8/15/20561,4 | | | 2,234 | | | | 2,349 | |
Bank Commercial Mortgage Trust, Series 2023-BNK46, Class C, 6.773% 8/15/20561,4 | | | 1,480 | | | | 1,397 | |
Bank Commercial Mortgage Trust, Series 2023-5YR3, Class C, 7.315% 9/15/20561,4 | | | 2,818 | | | | 2,733 | |
Bank Commercial Mortgage Trust, Series 2023-5YR4, Class B, 7.786% 12/15/20561,4 | | | 1,195 | | | | 1,252 | |
Bank Commercial Mortgage Trust, Series 2023-5YR4, Class C, 7.786% 12/15/20561,4 | | | 1,060 | | | | 1,028 | |
Bank Commercial Mortgage Trust, Series 2017-BNK7, Class C, 4.011% 9/15/20601,4 | | | 989 | | | | 783 | |
Bank Commercial Mortgage Trust, Series 2019-BN20, Class B, 3.395% 9/15/20621,4 | | | 1,905 | | | | 1,491 | |
Bank Commercial Mortgage Trust, Series 2020-BN25, Class C, 3.353% 1/15/20631,4 | | | 3,340 | | | | 2,518 | |
Bank Commercial Mortgage Trust, Series 2020-BN26, Class C, 3.414% 3/15/20631,4 | | | 4,215 | | | | 3,075 | |
Bank Commercial Mortgage Trust, Series 2022-BNK40, Class AS, 3.393% 3/15/20641,4 | | | 750 | | | | 631 | |
Bank Commercial Mortgage Trust, Series 2022-BNK40, Class B, 3.393% 3/15/20641,4 | | | 727 | | | | 567 | |
Bank Commercial Mortgage Trust, Series 2021-BN36, Class B, 2.867% 9/15/20641 | | | 5,750 | | | | 4,346 | |
Bank of America Merrill Lynch Large Loan, Inc., Series 2015-200P, Class A, 3.218% 4/14/20331,5 | | | 500 | | | | 478 | |
Bank of America Merrill Lynch Large Loan, Inc., Series 2015-200P, Class B, 3.49% 4/14/20331,5 | | | 800 | | | | 754 | |
Bank of America Merrill Lynch Large Loan, Inc., Series 2015-200P, Class C, 3.596% 4/14/20331,4,5 | | | 1,830 | | | | 1,715 | |
American Funds Strategic Bond Fund | 7 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | | | |
Commercial mortgage-backed securities (continued) | | | | | | | | |
Barclays Commercial Mortgage Securities, LLC, Series 2018-TALL, Class A, ((1-month USD CME Term SOFR + 0.047%) + 0.872%) 6.281% 3/15/20371,4,5 | | USD | 667 | | | $ | 620 | |
Barclays Commercial Mortgage Securities, LLC, Series 2017-C1, Class B, 4.089% 2/15/20501 | | | 3,564 | | | | 3,209 | |
Barclays Commercial Mortgage Securities, LLC, Series 2022-C17, Class B, 4.889% 9/15/20551,4 | | | 2,054 | | | | 1,804 | |
Barclays Commercial Mortgage Securities, LLC, Series 2022-C18, Class C, 6.149% 12/15/20551,4 | | | 5,194 | | | | 4,598 | |
Barclays Commercial Mortgage Securities, LLC, Series 2023-C19, Class B, 6.333% 4/15/20561,4 | | | 721 | | | | 725 | |
Barclays Commercial Mortgage Securities, LLC, Series 2023-C19, Class C, 6.385% 4/15/20561,4 | | | 2,451 | | | | 2,209 | |
Barclays Commercial Mortgage Securities, LLC, Series 2023-C20, Class A5, 5.576% 7/15/20561 | | | 1,000 | | | | 1,044 | |
Barclays Commercial Mortgage Securities, LLC, Series 2023-C20, Class C, 6.608% 7/15/20561,4 | | | 1,411 | | | | 1,314 | |
Barclays Commercial Mortgage Securities, LLC, Series 2023-C22, Class A5, 6.804% 11/15/20561,4 | | | 1,700 | | | | 1,936 | |
Barclays Commercial Mortgage Securities, LLC, Series 2023-C22, Class C, 7.126% 11/15/20561,4 | | | 685 | | | | 688 | |
Barclays Commercial Mortgage Securities, LLC, Series 2023-5C23, Class B, 7.703% 12/15/20561,4 | | | 2,602 | | | | 2,723 | |
BBCMS_23-C23 7.703% 12/15/20561,4 | | | 2,546 | | | | 2,464 | |
Benchmark Mortgage Trust, Series 2018-B2, Class B, 4.286% 2/15/20511,4 | | | 1,975 | | | | 1,709 | |
Benchmark Mortgage Trust, Series 2018-B3, Class B, 4.295% 4/10/20511,4 | | | 1,500 | | | | 1,247 | |
Benchmark Mortgage Trust, Series 2021-B25, Class B, 2.635% 4/15/20541 | | | 500 | | | | 359 | |
Benchmark Mortgage Trust, Series 2022-B34, Class A5, 3.786% 4/15/20551,4 | | | 13,000 | | | | 11,284 | |
Benchmark Mortgage Trust, Series 2022-B35, Class A5, 4.444% 5/15/20551,4 | | | 5,632 | | | | 5,215 | |
Benchmark Mortgage Trust, Series 2022-B35, Class C, 4.444% 5/15/20551,4 | | | 2,407 | | | | 1,697 | |
Benchmark Mortgage Trust, Series 2023-V2, Class B, 6.769% 5/15/20551,4 | | | 3,995 | | | | 4,064 | |
Benchmark Mortgage Trust, Series 2023-V2, Class C, 6.769% 5/15/20551,4 | | | 2,475 | | | | 2,376 | |
Benchmark Mortgage Trust, Series 2022-B36, Class B, 4.87% 7/15/20551,4 | | | 2,500 | | | | 2,098 | |
Benchmark Mortgage Trust, Series 2023-B38, Class B, 6.245% 4/15/20561,4 | | | 3,995 | | | | 4,030 | |
Benchmark Mortgage Trust, Series 2023-B38, Class C, 6.245% 4/15/20561,4 | | | 1,998 | | | | 1,699 | |
Benchmark Mortgage Trust, Series 2023-V3, Class B, 6.924% 7/15/20561 | | | 1,498 | | | | 1,528 | |
Benchmark Mortgage Trust, Series 2023-V3, Class C, 7.173% 7/15/20561,4 | | | 2,644 | | | | 2,559 | |
Benchmark Mortgage Trust, Series 2023-V4, Class C, 7.46% 11/15/20561,4 | | | 1,925 | | | | 1,863 | |
Benchmark Mortgage Trust, Series 2023-V4, Class B, 7.46% 11/15/20561,4 | | | 1,587 | | | | 1,662 | |
Benchmark Mortgage Trust, Series 2023-B40, Class B, 6.581% 12/15/20561,4 | | | 1,786 | | | | 1,865 | |
Benchmark Mortgage Trust, Series 2019-B13, Class B, 3.335% 8/15/20571,4 | | | 4,087 | | | | 3,314 | |
BMO Mortgage Trust, Series 2023-C4, Class B, 5.396% 2/15/20561,4 | | | 948 | | | | 883 | |
BMO Mortgage Trust, Series 2023-C5, Class B, 6.476% 6/15/20561,4 | | | 1,561 | | | | 1,617 | |
BMO Mortgage Trust, Series 2023-C5, Class C, 6.627% 6/15/20561,4 | | | 665 | | | | 636 | |
BMO Mortgage Trust, Series 2023-5C1, Class A3, 6.534% 8/15/20561,4 | | | 41,374 | | | | 43,638 | |
BMO Mortgage Trust, Series 2023-5C1, Class B, 6.96% 8/15/20561,4 | | | 2,804 | | | | 2,857 | |
BMO Mortgage Trust, Series 2023-5C1, Class C, 7.118% 8/15/20561,4 | | | 1,075 | | | | 1,036 | |
BMO Mortgage Trust, Series 2023-C6, Class B, 6.636% 9/15/20561,4 | | | 1,030 | | | | 1,067 | |
BMO Mortgage Trust, Series 2023-C7, Class C, 7.36% 12/15/20561,4 | | | 558 | | | | 560 | |
BOCA Commercial Mortgage Trust, Series 2022-BOCA, Class A, (1-month USD CME Term SOFR + 1.77%) 7.131% 5/15/20391,4,5 | | | 589 | | | | 586 | |
BOCA Commercial Mortgage Trust, Series 2022-BOCA, Class B, (1-month USD CME Term SOFR + 2.319%) 7.681% 5/15/20391,4,5 | | | 7,449 | | | | 7,407 | |
BX Trust, Series 2022-CSMO, Class B, (1-month USD CME Term SOFR + 3.141%) 8.503% 6/15/20271,4,5 | | | 3,000 | | | | 3,009 | |
BX Trust, Series 2021-MFM1, Class B, (1-month USD CME Term SOFR + 1.064%) 6.426% 1/15/20341,4,5 | | | 3,849 | | | | 3,787 | |
BX Trust, Series 2021-SDMF, Class C, (1-month USD CME Term SOFR + 1.002%) 6.364% 9/15/20341,4,5 | | | 4,700 | | | | 4,542 | |
BX Trust, Series 2021-SDMF, Class E, (1-month USD CME Term SOFR + 1.701%) 7.063% 9/15/20341,4,5 | | | 998 | | | | 953 | |
BX Trust, Series 2021-VOLT, Class A, (1-month USD CME Term SOFR + 0.814%) 6.176% 9/15/20361,4,5 | | | 22,871 | | | | 22,308 | |
BX Trust, Series 2021-VOLT, Class B, (1-month USD CME Term SOFR + 1.064%) 6.426% 9/15/20361,4,5 | | | 5,810 | | | | 5,664 | |
BX Trust, Series 2021-VOLT, Class D, (1-month USD CME Term SOFR + 1.764%) 7.126% 9/15/20361,4,5 | | | 1,660 | | | | 1,599 | |
8 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | | | |
Commercial mortgage-backed securities (continued) | | | | | | | | |
BX Trust, Series 2021-VOLT, Class E, (1-month USD CME Term SOFR + 2.114%) 7.476% 9/15/20361,4,5 | | USD | 2,820 | | | $ | 2,702 | |
BX Trust, Series 2021-ARIA, Class B, (1-month USD CME Term SOFR + 1.411%) 6.773% 10/15/20361,4,5 | | | 14,919 | | | | 14,456 | |
BX Trust, Series 2021-ARIA, Class C, (1-month USD CME Term SOFR + 1.76%) 7.122% 10/15/20361,4,5 | | | 14,940 | | | | 14,461 | |
BX Trust, Series 2021-ARIA, Class D, (1-month USD CME Term SOFR + 2.01%) 7.372% 10/15/20361,4,5 | | | 9,200 | | | | 8,782 | |
BX Trust, Series 2022-IND, Class D, (1-month USD CME Term SOFR + 2.839%) 8.201% 4/15/20371,4,5 | | | 3,348 | | | | 3,314 | |
BX Trust, Series 2021-SOAR, Class B, (1-month USD CME Term SOFR + 0.984%) 6.346% 6/15/20381,4,5 | | | 4,043 | | | | 3,969 | |
BX Trust, Series 2021-SOAR, Class C, (1-month USD CME Term SOFR + 1.214%) 6.576% 6/15/20381,4,5 | | | 4,337 | | | | 4,252 | |
BX Trust, Series 2021-SOAR, Class D, (1-month USD CME Term SOFR + 1.514%) 6.876% 6/15/20381,4,5 | | | 11,259 | | | | 11,026 | |
BX Trust, Series 2021-ACNT, Class B, (1-month USD CME Term SOFR + 1.364%) 6.726% 11/15/20381,4,5 | | | 9,985 | | | | 9,841 | |
BX Trust, Series 2021-ACNT, Class C, (1-month USD CME Term SOFR + 1.614%) 6.976% 11/15/20381,4,5 | | | 2,354 | | | | 2,312 | |
BX Trust, Series 2021-ACNT, Class D, (1-month USD CME Term SOFR + 1.964%) 7.326% 11/15/20381,4,5 | | | 4,865 | | | | 4,752 | |
BX Trust, Series 2021-ACNT, Class E, (1-month USD CME Term SOFR + 2.311%) 7.673% 11/15/20381,4,5 | | | 695 | | | | 677 | |
BX Trust, Series 2022-LP2, Class D, (1-month USD CME Term SOFR + 1.961%) 7.323% 2/15/20391,4,5 | | | 5,670 | | | | 5,483 | |
BX Trust, Series 2022-AHP, Class C, (1-month USD CME Term SOFR + 2.09%) 7.452% 2/15/20391,4,5 | | | 6,500 | | | | 6,270 | |
BX Trust, Series 2022-PSB, Class B, (1-month USD CME Term SOFR + 2.949%) 8.311% 8/15/20391,4,5 | | | 4,056 | | | | 4,060 | |
BX Trust, Series 2022-PSB, Class C, (1-month USD CME Term SOFR + 3.697%) 9.059% 8/15/20391,4,5 | | | 4,328 | | | | 4,334 | |
BX Trust, Series 2022-PSB, Class D, (1-month USD CME Term SOFR + 4.693%) 10.055% 8/15/20391,4,5 | | | 6,927 | | | | 6,905 | |
BX Trust, Series 2022-GPA, Class B, (1-month USD CME Term SOFR + 2.664%) 8.022% 10/15/20391,4,5 | | | 1,964 | | | | 1,970 | |
BX Trust, Series 2022-GPA, Class C, (1-month USD CME Term SOFR + 3.213%) 8.572% 10/15/20391,4,5 | | | 1,244 | | | | 1,248 | |
BX Trust, Series 2022-GPA, Class D, (1-month USD CME Term SOFR + 4.061%) 9.422% 10/15/20391,4,5 | | | 338 | | | | 339 | |
BX Trust, Series 2023-VLT2, Class C, (1-month USD CME Term SOFR + 4.176%) 9.538% 6/15/20401,4,5 | | | 2,500 | | | | 2,514 | |
BX Trust, Series 2023-VLT2, Class D, (1-month USD CME Term SOFR + 4.774%) 10.136% 6/15/20401,4,5 | | | 6,500 | | | | 6,535 | |
BX Trust, Series 2020-VIV4, Class A, 2.843% 3/9/20441,5 | | | 1,302 | | | | 1,116 | |
BX Trust, Series 2020-VIV2, Class C, 3.542% 3/9/20441,4,5 | | | 2,250 | | | | 1,929 | |
BX Trust, Series 2020-VIV3, Class B, 3.544% 3/9/20441,4,5 | | | 2,968 | | | | 2,605 | |
BXSC Commercial Mortgage Trust, Series 2022-WSS, Class B, (1-month USD CME Term SOFR + 2.092%) 7.454% 3/15/20351,4,5 | | | 2,985 | | | | 2,956 | |
BXSC Commercial Mortgage Trust, Series 2022-WSS, Class D, (1-month USD CME Term SOFR + 3.188%) 8.55% 3/15/20351,4,5 | | | 9,692 | | | | 9,534 | |
CENT Trust 2023-CITY, Series 2023-CITY, Class B, (1-month USD CME Term SOFR + 3.15%) 8.512% 9/15/20281,4,5 | | | 2,875 | | | | 2,897 | |
Citigroup Commercial Mortgage Trust, Series 2023-SMRT, Class A, 5.82% 6/10/20281,4,5 | | | 13,524 | | | | 13,713 | |
Citigroup Commercial Mortgage Trust, Series 2023-SMRT, Class D, 5.852% 6/10/20281,4,5 | | | 5,926 | | | | 5,720 | |
Citigroup Commercial Mortgage Trust, Series 2023-SMRT, Class C, 5.852% 6/10/20281,4,5 | | | 980 | | | | 965 | |
Citigroup Commercial Mortgage Trust, Series 2023-PRM3, Class D, 6.36% 7/10/20281,4,5 | | | 2,522 | | | | 2,432 | |
Citigroup Commercial Mortgage Trust, Series 2014-GC25, Class B, 4.345% 10/10/20471,4 | | | 3,666 | | | | 3,328 | |
Citigroup Commercial Mortgage Trust, Series 2015-GC27, Class C, 4.419% 2/10/20481,4 | | | 5,640 | | | | 5,220 | |
Citigroup Commercial Mortgage Trust, Series 2015-GC29, Class C, 4.138% 4/10/20481,4 | | | 2,500 | | | | 2,307 | |
American Funds Strategic Bond Fund | 9 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | | | |
Commercial mortgage-backed securities (continued) | | | | | | | | |
Citigroup Commercial Mortgage Trust, Series 2015-P1, Class B, 4.316% 9/15/20481,4 | | USD | 1,185 | | | $ | 1,111 | |
Citigroup Commercial Mortgage Trust, Series 2018-B2, Class B, 4.28% 3/10/20511,4 | | | 3,300 | | | | 2,896 | |
Citigroup Commercial Mortgage Trust, Series 2020-GC46, Class B, 3.15% 2/15/20531,4 | | | 675 | | | | 510 | |
COMM Mortgage Trust, Series 2020-CX, Class D, 2.684% 11/10/20461,4,5 | | | 415 | | | | 318 | |
COMM Mortgage Trust, Series 2020-CX, Class E, 2.684% 11/10/20461,4,5 | | | 195 | | | | 120 | |
Commercial Mortgage Trust, Series 2014-CR14, Class AM, 4.526% 2/10/20471,4 | | | 1,678 | | | | 1,609 | |
Commercial Mortgage Trust, Series 2014-UBS4, Class B, 4.701% 3/10/20471 | | | 195 | | | | 185 | |
Commercial Mortgage Trust, Series 2014-UBS2, Class AM, 4.048% 12/10/20471 | | | 655 | | | | 618 | |
Commercial Mortgage Trust, Series 2014-UBS6, Class C, 4.433% 12/10/20471,4 | | | 232 | | | | 198 | |
CSAIL Commercial Mortgage Trust, Series 2016-C5, Class C, 4.643% 11/15/20481,4 | | | 1,827 | | | | 1,682 | |
DATA 2023-CNTR Mortgage Trust, Series 2023-CNTR, Class D, 5.728% 8/12/20431,4,5 | | | 3,320 | | | | 2,873 | |
DC Commercial Mortgage Trust, Series 2023-DC, Class A, 6.314% 9/10/20401,5 | | | 24,515 | | | | 25,329 | |
DC Commercial Mortgage Trust, Series 2023-DC, Class D, 7.14% 9/10/20401,4,5 | | | 30,927 | | | | 29,940 | |
Extended Stay America Trust, Series 2021-ESH, Class A, (1-month USD CME Term SOFR + 1.194%) 6.556% 7/15/20381,4,5 | | | 3,919 | | | | 3,885 | |
Extended Stay America Trust, Series 2021-ESH, Class B, (1-month USD CME Term SOFR + 1.494%) 6.856% 7/15/20381,4,5 | | | 3,576 | | | | 3,524 | |
Extended Stay America Trust, Series 2021-ESH, Class C, (1-month USD CME Term SOFR + 1.814%) 7.176% 7/15/20381,4,5 | | | 4,576 | | | | 4,507 | |
Extended Stay America Trust, Series 2021-ESH, Class D, (1-month USD CME Term SOFR + 2.364%) 7.726% 7/15/20381,4,5 | | | 9,463 | | | | 9,313 | |
FIVE Mortgage Trust, Series 2023-V1, Class B, 6.404% 2/10/20561,4 | | | 2,477 | | | | 2,479 | |
FIVE Mortgage Trust, Series 2023-V1, Class C, 6.404% 2/10/20561,4 | | | 1,361 | | | | 1,282 | |
Fontainebleau Miami Beach Trust, Series 2019-FBLU, Class E, 3.963% 12/10/20361,4,5 | | | 6,500 | | | | 6,253 | |
Fontainebleau Miami Beach Trust, CMO, Series 2019-FBLU, Class D, 3.963% 12/10/20361,4,5 | | | 1,545 | | | | 1,495 | |
FS Commercial Trust, Series 2023-4SZN, Class C, 8.121% 11/10/20391,4,5 | | | 707 | | | | 738 | |
Great Wolf Trust, Series 2019-WOLF, Class A, (1-month USD CME Term SOFR + 1.348%) 6.252% 12/15/20361,4,5 | | | 2,434 | | | | 2,426 | |
Great Wolf Trust, Series 2019-WOLF, Class D, (1-month USD CME Term SOFR + 2.247%) 7.151% 12/15/20361,4,5 | | | 2,212 | | | | 2,193 | |
GS Mortgage Securities Trust, Series 2015-GC32, Class AS, 4.018% 7/10/20481,4 | | | 240 | | | | 229 | |
GS Mortgage Securities Trust, Series 2016-GS2, Class B, 3.759% 5/10/20491,4 | | | 116 | | | | 106 | |
GS Mortgage Securities Trust, Series 2016-GS2, Class C, 4.698% 5/10/20491,4 | | | 1,503 | | | | 1,373 | |
GS Mortgage Securities Trust, Series 2018-GS10, Class C, 4.405% 7/10/20511,4 | | | 5,000 | | | | 3,488 | |
GS Mortgage Securities Trust, Series 2020-GC45, Class B, 3.405% 2/13/20531 | | | 100 | | | | 81 | |
Hawaii Hotel Trust, Series 2019-MAUI, Class E, (1-month USD CME Term SOFR + 2.207%) 7.568% 5/15/20381,4,5 | | | 1,000 | | | | 980 | |
Hilton USA Trust, Series 2016-HHV, Class D, 4.194% 11/5/20381,5 | | | 3,000 | | | | 2,813 | |
Hilton USA Trust, Series 2016-HHV, Class D, 4.194% 11/5/20381,5 | | | 300 | | | | 285 | |
INTOWN Mortgage Trust, Series 2022-STAY, Class B, (1-month USD CME Term SOFR + 3.286%) 8.648% 8/15/20371,4,5 | | | 1,970 | | | | 1,984 | |
INTOWN Mortgage Trust, Series 2022-STAY, Class C, (1-month USD CME Term SOFR + 3.685%) 9.047% 8/15/20371,4,5 | | | 780 | | | | 782 | |
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2022-OPO, Class A, 3.024% 1/5/20391,5 | | | 3,928 | | | | 3,310 | |
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2022-OPO, Class C, 3.377% 1/5/20391,5 | | | 4,338 | | | | 3,444 | |
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2022-OPO, Class C, 3.45% 1/5/20391,4,5 | | | 1,598 | | | | 1,073 | |
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2021-410T, Class A, 2.287% 3/5/20421,5 | | | 11,522 | | | | 9,286 | |
LSTAR Commercial Mortgage Trust, Series 2017-5, Class C, 4.668% 3/10/20501,4,5 | | | 1,000 | | | | 799 | |
LUXE Commercial Mortgage Trust, Series 2021-TRIP, Class B, (1-month USD CME Term SOFR + 1.514%) 6.88% 10/15/20381,4,5 | | | 1,856 | | | | 1,846 | |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C12, Class B, 7.432% 10/15/20461,4 | | | 795 | | | | 774 | |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class C, 5.037% 2/15/20471,4 | | | 304 | | | | 298 | |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class AS, 4.11% 10/15/20471,4 | | | 298 | | | | 290 | |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C20, Class B, 4.16% 2/15/20481 | | | 6,108 | | | | 5,808 | |
10 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | | | |
Commercial mortgage-backed securities (continued) | | | | | | | | |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22, Class AS, 3.561% 4/15/20481 | | USD | 967 | | | $ | 921 | |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C24, Class AS, 4.036% 5/15/20481,4 | | | 1,016 | | | | 969 | |
MSFW Commercial Mortgage Trust, Series 2023-1, Class B, 6.683% 5/15/20331,4 | | | 1,231 | | | | 1,284 | |
MSFW Commercial Mortgage Trust, Series 2023-1, Class C, 6.683% 5/15/20331,4 | | | 1,132 | | | | 1,070 | |
MSWF Commercial Mortgage Trust, Series 2023-2, Class B, 7.11% 12/15/20561,4 | | | 2,347 | | | | 2,499 | |
MSWF Commercial Mortgage Trust, Series 2023-2, Class C, 7.252% 12/15/20561,4 | | | 392 | | | | 404 | |
Multifamily Connecticut Avenue Securities, Series 2020-1, Class M10, (30-day Average USD-SOFR + 3.864%) 9.202% 3/25/20501,4,5 | | | 2,029 | | | | 1,967 | |
Multifamily Connecticut Avenue Securities, Series 2023-01, Class M7, (30-day Average USD-SOFR + 4.00%) 9.337% 11/25/20531,4,5 | | | 19,660 | | | | 19,954 | |
Multifamily Connecticut Avenue Securities, Series 2023-01, Class M10, (30-day Average USD-SOFR + 6.50%) 11.837% 11/25/20531,4,5 | | | 43,192 | | | | 44,377 | |
Multifamily Structured Credit Risk, Series 21-MN3, Class M2, 9.337% 11/25/20511,4,5 | | | 4,000 | | | | 3,731 | |
One Market Plaza Trust, Series 2017-1MKT, Class A, 3.614% 2/10/20321,5 | | | 2,800 | | | | 2,561 | |
One Market Plaza Trust, Series 2017-1MKT, Class B, 3.845% 2/10/20321,5 | | | 1,000 | | | | 877 | |
OPG Trust, Series 2021-PORT, Class D, (1-month USD CME Term SOFR + 1.245%) 6.607% 10/15/20361,4,5 | | | 971 | | | | 943 | |
ORL Trust, Series 2023-GLKS, Class C, (1-month USD CME Term SOFR + 3.651%) 8.974% 10/15/20281,4,5 | | | 2,948 | | | | 2,955 | |
ORL Trust, Series 2023-GLKS, Class D, (1-month USD CME Term SOFR + 4.301%) 9.624% 10/15/20281,4,5 | | | 6,283 | | | | 6,301 | |
SFO Commercial Mortgage Trust, Series 2021-555, Class A, (1-month USD CME Term SOFR + 1.264%) 6.626% 5/15/2038 (1-month USD CME Term SOFR + 1.514% on 5/15/2026)1,5,6 | | | 2,290 | | | | 2,148 | |
SFO Commercial Mortgage Trust, Series 2021-555, Class B, (1-month USD CME Term SOFR + 1.614%) 6.976% 5/15/20381,4,5 | | | 2,631 | | | | 2,394 | |
SLG Office Trust, Series 2021-OVA, Class A, 2.585% 7/15/20411,5 | | | 21,061 | | | | 17,444 | |
SREIT Trust, Series 2021-FLWR, Class B, (1-month USD CME Term SOFR + 1.04%) 6.402% 7/15/20361,4,5 | | | 9,000 | | | | 8,829 | |
SREIT Trust, Series 2021-MFP, Class C, (1-month USD CME Term SOFR + 1.443%) 6.805% 11/15/20381,4,5 | | | 5,562 | | | | 5,445 | |
SREIT Trust, Series 2021-MFP, Class D, (1-month USD CME Term SOFR + 1.693%) 7.054% 11/15/20381,4,5 | | | 239 | | | | 234 | |
StorageMart Commercial Mortgage Trust, Series 2022-MINI, Class A, (1-month USD CME Term SOFR + 1.00%) 6.362% 1/15/20391,4,5 | | | 2,030 | | | | 1,989 | |
StorageMart Commercial Mortgage Trust, Series 2022-MINI, Class D, (1-month USD CME Term SOFR + 1.95%) 7.312% 1/15/20391,4,5 | | | 8,500 | | | | 8,104 | |
StorageMart Commercial Mortgage Trust, Series 2022-MINI, Class E, (1-month USD CME Term SOFR + 2.70%) 8.062% 1/15/20391,4,5 | | | 2,000 | | | | 1,885 | |
Wells Fargo Commercial Mortgage Trust, Series 2015-C28, Class AS, 3.872% 5/15/20481,4 | | | 1,961 | | | | 1,854 | |
Wells Fargo Commercial Mortgage Trust, Series 2015-C29, Class AS, 4.013% 6/15/20481,4 | | | 3,989 | | | | 3,835 | |
Wells Fargo Commercial Mortgage Trust, Series 2017-C40, Class C, 4.303% 10/15/20501,4 | | | 4,975 | | | | 4,300 | |
Wells Fargo Commercial Mortgage Trust, Series 2018-C46, Class B, 4.633% 8/15/20511 | | | 1,451 | | | | 1,265 | |
Wells Fargo Commercial Mortgage Trust, Series 2018-C48, Class B, 4.904% 1/15/20521,4 | | | 365 | | | | 332 | |
Wells Fargo Commercial Mortgage Trust, Series 2019-C49, Class C, 4.866% 3/15/20521,4 | | | 3,000 | | | | 2,642 | |
Wells Fargo Commercial Mortgage Trust, Series 2019-C54, Class C, 3.81% 12/15/20521 | | | 2,500 | | | | 1,846 | |
Wells Fargo Commercial Mortgage Trust, Series 2015-LC22, Class C, 4.545% 9/15/20581,4 | | | 4,000 | | | | 3,682 | |
Wells Fargo Commercial Mortgage Trust, Series 2016-NXS5, Class B, 4.944% 1/15/20591,4 | | | 2,745 | | | | 2,516 | |
WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class B, 4.371% 9/15/20571,4 | | | 2,000 | | | | 1,718 | |
WMRK Commercial Mortgage Trust, Series 2022-WMRK, Class A, (1-month USD CME Term SOFR + 2.789%) 8.151% 11/15/20271,4,5 | | | 3,293 | | | | 3,301 | |
WSTN Trust, Series 2023-MAUI, Class C, 7.69% 7/5/20371,4,5 | | | 490 | | | | 485 | |
WSTN Trust, Series 2023-MAUI, Class D, 8.455% 7/5/20371,4,5 | | | 1,242 | | | | 1,233 | |
| | | | | | | 735,878 | |
American Funds Strategic Bond Fund | 11 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | | | |
Collateralized mortgage-backed obligations (privately originated) 1.74% | | | | | | | | |
Arroyo Mortgage Trust, Series 2022-1, Class A1A, 2.495% 12/25/2056 (3.495% on 2/25/2026)1,5,6 | | USD | 7,819 | | | $ | 7,249 | |
BINOM Securitization Trust, Series 2022-RPL1, Class A1, 3.00% 2/25/20611,4,5 | | | 4,047 | | | | 3,700 | |
BRAVO Residential Funding Trust, Series 2022-RPL1, Class A1, 2.75% 9/25/20611,5 | | | 7,450 | | | | 6,757 | |
BRAVO Residential Funding Trust, Series 2022-R1, Class A, 3.125% 1/29/2070 (6.125% on 1/29/2025)1,5,6 | | | 28,399 | | | | 26,657 | |
Cascade Funding Mortgage Trust, Series 2021-HB7, Class A, 1.151% 10/27/20311,4,5 | | | 3,251 | | | | 3,149 | |
Cascade Funding Mortgage Trust, Series 2021-HB7, Class M1, 2.125% 10/27/20311,4,5 | | | 8,100 | | | | 7,671 | |
Cascade Funding Mortgage Trust, Series 2023-HB12, Class A, 4.25% 4/25/20331,4,5 | | | 3,170 | | | | 3,081 | |
Cascade Funding Mortgage Trust, Series 2023-HB12, Class M1, 4.25% 4/25/20331,4,5 | | | 2,597 | | | | 2,380 | |
Cascade Funding Mortgage Trust, Series 2018-RM2, Class B, 4.00% 10/25/20681,4,5 | | | 3,727 | | | | 3,675 | |
Cascade Funding Mortgage Trust, Series 2018-RM2, Class C, 4.00% 10/25/20681,4,5 | | | 1,680 | | | | 1,627 | |
Cascade Funding Mortgage Trust, Series 2018-RM2, Class D, 4.00% 10/25/20681,4,5 | | | 1,680 | | | | 1,583 | |
Cascade MH Asset Trust, Series 2022-MH1, Class A, 4.25% 8/25/2054 (5.25% on 11/25/2027)1,5,6 | | | 3,737 | | | | 3,397 | |
CFCRE Commercial Mortgage Trust, Series 2017-C8, Class C, 4.893% 6/15/20501,4 | | | 700 | | | | 576 | |
Connecticut Avenue Securities Trust, Series 2014-C01, Class M2, (30-day Average USD-SOFR + 4.514%) 9.852% 1/25/20241,4 | | | 1,414 | | | | 1,418 | |
Connecticut Avenue Securities Trust, Series 2014-C04, Class 1M2, (30-day Average USD-SOFR + 5.014%) 10.352% 11/25/20241,4 | | | 1,535 | | | | 1,583 | |
Connecticut Avenue Securities Trust, Series 2016-C02, Class 1M2, (30-day Average USD-SOFR + 6.114%) 11.452% 9/25/20281,4 | | | 735 | | | | 770 | |
Connecticut Avenue Securities Trust, Series 2017-C01, Class 1EB1, (30-day Average USD-SOFR + 1.364%) 6.702% 7/25/20291,4 | | | 206 | | | | 207 | |
Connecticut Avenue Securities Trust, Series 2017-C01, Class 1B1, (30-day Average USD-SOFR + 5.864%) 11.202% 7/25/20291,4 | | | 490 | | | | 553 | |
Connecticut Avenue Securities Trust, Series 2018-R07, Class 1B1, (30-day Average USD-SOFR + 4.464%) 9.802% 4/25/20311,4,5 | | | 3,742 | | | | 4,011 | |
Connecticut Avenue Securities Trust, Series 2022-R06, Class 1M1, (30-day Average USD-SOFR + 2.75%) 8.087% 5/25/20421,4,5 | | | 872 | | | | 897 | |
Connecticut Avenue Securities Trust, Series 2023-R01, Class 1M1, (30-day Average USD-SOFR + 2.40%) 7.737% 12/25/20421,4,5 | | | 8,985 | | | | 9,164 | |
Connecticut Avenue Securities Trust, Series 2023-R04, Class 1M2, (30-day Average USD-SOFR + 3.55%) 8.887% 5/25/20431,4,5 | | | 1,016 | | | | 1,083 | |
Credit Suisse Mortgage Trust, Series 2020-NET, Class C, 3.526% 8/15/20371,5 | | | 1,000 | | | | 906 | |
Finance of America Structured Securities Trust, Series 2019-JR2, Class A1, 2.00% 6/25/20691,5 | | | 5,245 | | | | 5,846 | |
Finance of America Structured Securities Trust, Series 2019-JR3, Class A 2.00% 9/25/20691,5 | | | 853 | | | | 921 | |
Finance of America Structured Securities Trust, Series 2019-JR4, Class A, 2.00% 11/25/20691,5 | | | 965 | | | | 974 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2015-DNA1, Class M3, (30-day Average USD-SOFR + 3.414%) 8.752% 10/25/20271,4 | | | 506 | | | | 511 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2015-DNA3, Class M3, (30-day Average USD-SOFR + 4.814%) 10.152% 4/25/20281,4 | | | 1,516 | | | | 1,587 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2016-DNA2, Class M3, (30-day Average USD-SOFR + 4.764%) 10.102% 10/25/20281,4 | | | 1,570 | | | | 1,649 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2016-DNA3, Class M3, (30-day Average USD-SOFR + 5.114%) 10.452% 12/25/20281,4 | | | 172 | | | | 183 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2016-DNA4, Class M3, (30-day Average USD-SOFR + 3.914%) 9.252% 3/25/20291,4 | | | 399 | | | | 416 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA2, Class M1A, (30-day Average USD-SOFR + 1.30%) 6.637% 2/25/20421,4,5 | | | 2,972 | | | | 2,973 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA3, Class M1A, (30-day Average USD-SOFR + 2.00%) 7.337% 4/25/20421,4,5 | | | 7,631 | | | | 7,703 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA3, Class M1B, (30-day Average USD-SOFR + 2.90%) 8.237% 4/25/20421,4,5 | | | 3,000 | | | | 3,086 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA4, Class M1A, (30-day Average USD-SOFR + 2.20%) 7.537% 5/25/20421,4,5 | | | 220 | | | | 223 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA4, Class M1B, (30-day Average USD-SOFR + 3.35%) 8.687% 5/25/20421,4,5 | | | 2,050 | | | | 2,136 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA5, Class M1A, (30-day Average USD-SOFR + 2.95%) 8.287% 6/25/20421,4,5 | | | 3,079 | | | | 3,162 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA5, Class M1B, (30-day Average USD-SOFR + 4.50%) 9.837% 6/25/20421,4,5 | | | 1,000 | | | | 1,079 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA6, Class M1A, (30-day Average USD-SOFR + 2.15%) 7.487% 9/25/20421,4,5 | | | 1,029 | | | | 1,039 | |
12 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Mortgage-backed obligations (continued) | | | | | | | | |
Collateralized mortgage-backed obligations (privately originated) (continued) | | | | | | | | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA6, Class M1B, (30-day Average USD-SOFR + 3.70%) 9.037% 9/25/20421,4,5 | | USD | 3,344 | | | $ | 3,524 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2019-DNA3, Class B2, (30-day Average USD-SOFR + 8.264%) 13.602% 7/25/20491,4,5 | | | 4,324 | | | | 4,884 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA1, Class M2, (30-day Average USD-SOFR + 1.814%) 7.152% 1/25/20501,4,5 | | | 1,048 | | | | 1,051 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA2, Class M2, (30-day Average USD-SOFR + 1.964%) 7.302% 2/25/20501,4,5 | | | 1,251 | | | | 1,270 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA3, Class B2, (30-day Average USD-SOFR + 9.464%) 14.802% 6/25/20501,4,5 | | | 4,740 | | | | 6,059 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA3, Class B1, (30-day Average USD-SOFR + 5.214%) 10.552% 6/27/20501,4,5 | | | 9,304 | | | | 10,204 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-HQA3, Class B2, (30-day Average USD-SOFR + 10.114%) 15.452% 7/25/20501,4,5 | | | 2,222 | | | | 2,839 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA4, Class B1, (30-day Average USD-SOFR + 6.114%) 11.452% 8/25/20501,4,5 | | | 15,394 | | | | 17,328 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA4, Class B2, (30-day Average USD-SOFR + 10.114%) 15.452% 8/25/20501,4,5 | | | 5,454 | | | | 7,207 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA5, Class M2, (30-day Average USD-SOFR + 2.80%) 8.121% 10/25/20501,4,5 | | | 1,319 | | | | 1,338 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA5, Class B2, (30-day Average USD-SOFR + 11.50%) 16.821% 10/25/20501,4,5 | | | 2,000 | | | | 2,679 | |
JPMorgan Mortgage Trust, Series 2020-1, Class A15, 3.50% 6/25/20501,4,5 | | | 1,405 | | | | 1,237 | |
Legacy Mortgage Asset Trust, Series 2019-GS7, Class A1, 3.25% 11/25/20591,4,5 | | | 1,760 | | | | 1,762 | |
Legacy Mortgage Asset Trust, Series 2020-GS4, Class A1, 3.25% 2/25/20601,4,5 | | | 8,445 | | | | 8,445 | |
Legacy Mortgage Asset Trust, Series 2020-GS3, Class A1, 3.25% 5/25/2060 (7.25% on 4/25/2024)1,5,6 | | | 2,800 | | | | 2,800 | |
Legacy Mortgage Asset Trust, Series 2022-GS1, Class A1, 4.00% 2/25/2061 (7.00% on 4/25/2025)1,5,6 | | | 3,051 | | | | 3,033 | |
Legacy Mortgage Asset Trust, Series 2021-GS5, Class A1, 2.25% 7/25/2067 (5.25% on 11/25/2024)1,5,6 | | | 2,327 | | | | 2,254 | |
Mill City Mortgage Trust, Series 2018-2, Class M3, 3.75% 5/25/20581,4,5 | | | 1,498 | | | | 1,340 | |
Mill City Mortgage Trust, Series 2017-1, Class B2, 3.994% 11/25/20581,4,5 | | | 1,000 | | | | 867 | |
NewRez Warehouse Securitization Trust, Series 2021-1, Class B, (1-month USD CME Term SOFR + 1.014%) 6.370% 5/25/20551,4,5 | | | 4,286 | | | | 4,284 | |
NewRez Warehouse Securitization Trust, Series 2021-1, Class C, (1-month USD CME Term SOFR + 1.165%) 6.520% 5/25/20551,4,5 | | | 472 | | | | 472 | |
PRKCM Trust, Series 2021-AFC2, Class A1, 2.071% 11/25/20561,4,5 | | | 8,200 | | | | 6,874 | |
Towd Point Mortgage Trust, Series 2015-1, Class B1, 4.448% 10/25/20531,4,5 | | | 300 | | | | 280 | |
Towd Point Mortgage Trust, Series 2015-3, Class B1, 4.214% 3/25/20541,4,5 | | | 3,000 | | | | 2,929 | |
Towd Point Mortgage Trust, Series 2016-3, Class B3, 4.126% 4/25/20561,4,5 | | | 3,500 | | | | 3,157 | |
Towd Point Mortgage Trust, Series 2017-2, Class B2, 4.221% 4/25/20571,4,5 | | | 2,000 | | | | 1,794 | |
Towd Point Mortgage Trust, Series 2017-4, Class B1, 3.635% 6/25/20571,4,5 | | | 1,000 | | | | 837 | |
Towd Point Mortgage Trust, Series 2017-6, Class M1, 3.25% 10/25/20571,4,5 | | | 440 | | | | 393 | |
Towd Point Mortgage Trust, Series 2019-2, Class B1, 3.746% 12/25/20581,4,5 | | | 3,388 | | | | 2,705 | |
Towd Point Mortgage Trust, Series 2019-2, Class M2, 3.75% 12/26/20581,4,5 | | | 2,550 | | | | 2,161 | |
Towd Point Mortgage Trust, Series 2019-4, Class A2, 3.25% 10/25/20591,4,5 | | | 3,000 | | | | 2,641 | |
Treehouse Park Improvement Association No.1 9.75% 12/1/20335,7 | | | 24,714 | | | | 22,962 | |
Verus Securitization Trust, Series 2023-3, Class A1, 5.93% 3/25/2068 (6.93% on 4/1/2027)1,5,6 | | | 7,469 | | | | 7,472 | |
VM Fund I, LLC 8.625% 1/15/20285,7 | | | 50,780 | | | | 50,019 | |
| | | | | | | 314,683 | |
| | | | | | | | |
Total mortgage-backed obligations | | | | | | | 6,199,967 | |
| | | | | | | | |
Corporate bonds, notes & loans 27.06% | | | | | | | | |
Financials 6.79% | | | | | | | | |
AerCap Ireland Capital DAC 5.75% 6/6/2028 | | | 3,856 | | | | 3,950 | |
AerCap Ireland Capital DAC 3.30% 1/30/2032 | | | 16,152 | | | | 14,063 | |
AerCap Ireland Capital DAC 3.85% 10/29/2041 | | | 12,312 | | | | 9,930 | |
AG Issuer, LLC 6.25% 3/1/20285 | | | 2,500 | | | | 2,488 | |
AG TTMT Escrow Issuer, LLC 8.625% 9/30/20275 | | | 4,190 | | | | 4,410 | |
Alliant Holdings Intermediate, LLC 4.25% 10/15/20275 | | | 9,355 | | | | 8,999 | |
Alliant Holdings Intermediate, LLC 6.75% 10/15/20275 | | | 3,000 | | | | 2,993 | |
American Express Co. 4.05% 5/3/2029 | | | 7,963 | | | | 7,887 | |
American International Group, Inc. 5.125% 3/27/2033 | | | 7,774 | | | | 7,894 | |
Aon Corp. 5.35% 2/28/2033 | | | 8,754 | | | | 8,982 | |
Aretec Group, Inc. 10.00% 8/15/20305 | | | 7,640 | | | | 8,128 | |
American Funds Strategic Bond Fund | 13 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Financials (continued) | | | | | | | | |
Ascensus, Inc., Term Loan, (1-month USD CME Term SOFR + 6.50%) 12.176% 8/2/20294,8 | | USD | 3,535 | | | $ | 3,413 | |
Banco Santander México, SA, Institución de Banca Múltiple, Grupo Financiero Santander México 5.375% 4/17/20255 | | | 5,250 | | | | 5,245 | |
Bangkok Bank Public Co., Ltd. 3.733% 9/25/2034 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.90% on 9/25/2029)6 | | | 15,000 | | | | 13,344 | |
Bank of America Corp. 4.948% 7/22/2028 (USD-SOFR + 2.04% on 7/22/2027)6 | | | 20,000 | | | | 20,006 | |
Bank of America Corp. 1.922% 10/24/2031 (USD-SOFR + 1.37% on 10/24/2030)6 | | | 11,400 | | | | 9,261 | |
Bank of America Corp. 2.687% 4/22/2032 (USD-SOFR + 1.32% on 4/22/2031)6 | | | 10,482 | | | | 8,855 | |
Bank of America Corp. 2.299% 7/21/2032 (USD-SOFR + 1.22% on 7/21/2031)6 | | | 26,283 | | | | 21,471 | |
Bank of America Corp. 5.015% 7/22/2033 (USD-SOFR + 2.16% on 7/22/2032)6 | | | 8,012 | | | | 7,929 | |
Bank of America Corp. 5.872% 9/15/2034 (USD-SOFR + 1.84% on 9/15/2033)6 | | | 1,423 | | | | 1,490 | |
Bank of Montreal 2.65% 3/8/2027 | | | 30,000 | | | | 28,267 | |
Bank of Nova Scotia (The) 2.45% 2/2/2032 | | | 18,471 | | | | 15,483 | |
Berkshire Hathaway Finance Corp. 3.85% 3/15/2052 | | | 20,000 | | | | 16,736 | |
BNP Paribas SA 2.159% 9/15/2029 (USD-SOFR + 1.218% on 9/15/2028)5,6 | | | 7,975 | | | | 6,944 | |
CaixaBank, SA 6.208% 1/18/2029 (USD-SOFR + 2.70% on 1/18/2028)5,6 | | | 7,300 | | | | 7,453 | |
CaixaBank, SA 6.84% 9/13/2034 (USD-SOFR + 2.77% on 9/13/2033)5,6 | | | 14,000 | | | | 14,798 | |
Capital One Financial Corp. 5.468% 2/1/2029 (USD-SOFR + 2.08% on 2/1/2028)6 | | | 6,344 | | | | 6,330 | |
Capital One Financial Corp. 6.377% 6/8/2034 (USD-SOFR + 2.86% on 6/8/2033)6 | | | 12,000 | | | | 12,358 | |
Charles Schwab Corp. (The) 2.45% 3/3/2027 | | | 17,425 | | | | 16,231 | |
Charles Schwab Corp. (The) 5.853% 5/19/2034 (USD-SOFR + 2.50% on 5/19/2033)6 | | | 8,613 | | | | 8,895 | |
Chubb INA Holdings, Inc. 2.85% 12/15/2051 | | | 8,089 | | | | 5,879 | |
Citigroup, Inc. 3.106% 4/8/2026 (USD-SOFR + 2.842% on 3/8/2026)6 | | | 4,375 | | | | 4,254 | |
Citigroup, Inc. 2.572% 6/3/2031 (USD-SOFR + 2.107% on 6/3/2030)6 | | | 3,724 | | | | 3,183 | |
Citigroup, Inc. 2.561% 5/1/2032 (USD-SOFR + 1.167% on 5/1/2031)6 | | | 12,513 | | | | 10,445 | |
Citigroup, Inc. 2.52% 11/3/2032 (USD-SOFR + 1.177% on 11/3/2031)6 | | | 4,424 | | | | 3,649 | |
Citigroup, Inc. 3.057% 1/25/2033 (USD-SOFR + 1.351% on 1/25/2032)6 | | | 8,085 | | | | 6,901 | |
Citigroup, Inc. 6.27% 11/17/2033 (USD-SOFR + 2.338% on 11/17/2032)6 | | | 14,875 | | | | 15,923 | |
Citigroup, Inc. 6.174% 5/25/2034 (USD-SOFR + 2.661% on 5/25/2033)6 | | | 8,300 | | | | 8,592 | |
CME Group, Inc. 2.65% 3/15/2032 | | | 25,000 | | | | 22,242 | |
Coinbase Global, Inc. 3.375% 10/1/20285 | | | 11,300 | | | | 9,548 | |
Coinbase Global, Inc. 3.625% 10/1/20315 | | | 46,125 | | | | 35,703 | |
Commonwealth Bank of Australia 2.688% 3/11/20315 | | | 6,975 | | | | 5,743 | |
Compass Group Diversified Holdings, LLC 5.25% 4/15/20295 | | | 5,280 | | | | 4,993 | |
Compass Group Diversified Holdings, LLC 5.00% 1/15/20325 | | | 5,100 | | | | 4,629 | |
Corebridge Financial, Inc. 3.85% 4/5/2029 | | | 7,945 | | | | 7,494 | |
Corebridge Financial, Inc. 3.90% 4/5/2032 | | | 9,251 | | | | 8,369 | |
Corebridge Financial, Inc. 4.35% 4/5/2042 | | | 2,597 | | | | 2,206 | |
Corebridge Financial, Inc. 4.40% 4/5/2052 | | | 17,189 | | | | 14,447 | |
Danske Bank AS 4.298% 4/1/2028 (1-year UST Yield Curve Rate T Note Constant Maturity + 1.75% on 4/1/2027)5,6 | | | 12,525 | | | | 12,147 | |
Deutsche Bank AG 2.129% 11/24/2026 (USD-SOFR + 1.87% on 11/24/2025)6 | | | 9,425 | | | | 8,840 | |
Deutsche Bank AG 7.146% 7/13/2027 (USD-SOFR + 2.52% on 7/13/2026)6 | | | 2,676 | | | | 2,779 | |
Deutsche Bank AG 6.72% 1/18/2029 (USD-SOFR + 3.18% on 1/18/2028)6 | | | 4,875 | | | | 5,108 | |
Deutsche Bank AG 6.819% 11/20/2029 (USD-SOFR + 2.51% on 11/20/2028)6 | | | 7,375 | | | | 7,769 | |
Deutsche Bank AG 7.079% 2/10/2034 (USD-SOFR + 3.65% on 2/10/2033)6 | | | 6,375 | | | | 6,559 | |
Discover Financial Services 6.70% 11/29/2032 | | | 4,055 | | | | 4,251 | |
Discover Financial Services 7.964% 11/2/2034 (USD-SOFR Index + 3.37% on 11/2/2033)6 | | | 10,000 | | | | 11,129 | |
Fifth Third Bancorp 6.339% 7/27/2029 (USD-SOFR + 2.34% on 7/27/2028)6 | | | 3,220 | | | | 3,354 | |
Goldman Sachs Group, Inc. 1.948% 10/21/2027 (USD-SOFR + 0.913% on 10/21/2026)6 | | | 9,340 | | | | 8,547 | |
Goldman Sachs Group, Inc. 3.814% 4/23/2029 (3-month USD CME Term SOFR + 1.42% on 4/23/2028)6 | | | 1,070 | | | | 1,016 | |
Goldman Sachs Group, Inc. 2.60% 2/7/2030 | | | 7,915 | | | | 6,958 | |
Goldman Sachs Group, Inc. 1.992% 1/27/2032 (USD-SOFR + 1.09% on 1/27/2031)6 | | | 3,736 | | | | 3,020 | |
Goldman Sachs Group, Inc. 2.615% 4/22/2032 (USD-SOFR + 1.281% on 4/22/2031)6 | | | 17,185 | | | | 14,431 | |
Goldman Sachs Group, Inc. 2.65% 10/21/2032 (USD-SOFR + 1.264% on 10/21/2031)6 | | | 36,434 | | | | 30,374 | |
Goldman Sachs Group, Inc. 3.21% 4/22/2042 (USD-SOFR + 1.513% on 4/22/2041)6 | | | 8,858 | | | | 6,788 | |
Goldman Sachs Group, Inc. 3.436% 2/24/2043 (USD-SOFR + 1.632% on 2/24/2042)6 | | | 4,855 | | | | 3,795 | |
GTCR W-2 Merger Sub, LLC 7.50% 1/15/20315 | | | 14,000 | | | | 14,803 | |
Hightower Holding, LLC 6.75% 4/15/20295 | | | 3,380 | | | | 3,073 | |
HSBC Holdings PLC 2.251% 11/22/2027 (USD-SOFR + 1.10% on 11/22/2026)6 | | | 20,000 | | | | 18,364 | |
HSBC Holdings PLC 2.804% 5/24/2032 (USD-SOFR + 1.187% on 5/24/2031)6 | | | 9,888 | | | | 8,259 | |
HSBC Holdings PLC 5.402% 8/11/2033 (USD-SOFR + 2.87% on 8/11/2032)6 | | | 9,000 | | | | 9,044 | |
HSBC Holdings PLC 6.254% 3/9/2034 (USD-SOFR + 2.39% on 3/9/2033)6 | | | 40,611 | | | | 43,185 | |
HSBC Holdings PLC 6.332% 3/9/2044 (USD-SOFR + 2.65% on 3/9/2043)6 | | | 12,600 | | | | 13,596 | |
14 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | |
Financials (continued) | | | | | | | | |
Huarong Finance 2017 Co., Ltd. 4.75% 4/27/2027 | | USD | 1,055 | | | $ | 990 | |
HUB International, Ltd. 5.625% 12/1/20295 | | | 7,300 | | | | 6,973 | |
HUB International, Ltd. 7.25% 6/15/20305 | | | 12,781 | | | | 13,508 | |
Intercontinental Exchange, Inc. 2.65% 9/15/2040 | | | 5,700 | | | | 4,256 | |
JPMorgan Chase & Co. 2.005% 3/13/2026 (USD-SOFR + 1.585% on 3/13/2025)6 | | | 10,000 | | | | 9,610 | |
JPMorgan Chase & Co. 2.947% 2/24/2028 (USD-SOFR + 1.17% on 2/24/2027)6 | | | 15,750 | | | | 14,825 | |
JPMorgan Chase & Co. 4.323% 4/26/2028 (USD-SOFR + 1.56% on 4/26/2027)6 | | | 11,000 | | | | 10,842 | |
JPMorgan Chase & Co. 4.851% 7/25/2028 (USD-SOFR + 1.99% on 7/25/2027)6 | | | 7,480 | | | | 7,486 | |
JPMorgan Chase & Co. 1.953% 2/4/2032 (USD-SOFR + 1.065% on 2/4/2031)6 | | | 11,613 | | | | 9,443 | |
JPMorgan Chase & Co. 2.545% 11/8/2032 (USD-SOFR + 1.18% on 11/8/2031)6 | | | 4,600 | | | | 3,840 | |
Kasikornbank PCL (Hong Kong Branch) 3.343% 10/2/2031 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.70% on 10/2/2026)6 | | | 5,000 | | | | 4,602 | |
KBC Groep NV 5.796% 1/19/2029 (1-year UST Yield Curve Rate T Note Constant Maturity + 2.10% on 1/19/2028)5,6 | | | 4,250 | | | | 4,325 | |
Marsh & McLennan Companies, Inc. 2.375% 12/15/2031 | | | 7,309 | | | | 6,231 | |
Morgan Stanley 1.593% 5/4/2027 (USD-SOFR + 0.879% on 5/4/2026)6 | | | 3,159 | | | | 2,912 | |
Morgan Stanley 4.21% 4/20/2028 (USD-SOFR + 1.61% on 4/20/2027)6 | | | 4,629 | | | | 4,527 | |
Morgan Stanley 5.123% 2/1/2029 (USD-SOFR + 1.73% on 2/1/2028)6 | | | 5,529 | | | | 5,557 | |
Morgan Stanley 5.164% 4/20/2029 (USD-SOFR + 1.59% on 4/20/2028)6 | | | 8,070 | | | | 8,121 | |
Morgan Stanley 2.239% 7/21/2032 (USD-SOFR + 1.178% on 7/21/2031)6 | | | 17,686 | | | | 14,443 | |
Morgan Stanley 4.889% 7/20/2033 (USD-SOFR + 2.077% on 7/20/2032)6 | | | 3,765 | | | | 3,673 | |
Morgan Stanley 5.424% 7/21/2034 (USD-SOFR + 1.88% on 7/21/2033)6 | | | 16,036 | | | | 16,282 | |
Morgan Stanley 6.627% 11/1/2034 (USD-SOFR + 2.05% on 11/1/2033)6 | | | 15,700 | | | | 17,391 | |
Nasdaq, Inc. 5.95% 8/15/2053 | | | 889 | | | | 957 | |
Nasdaq, Inc. 6.10% 6/28/2063 | | | 1,409 | | | | 1,525 | |
National Australia Bank, Ltd. 2.99% 5/21/20315 | | | 17,000 | | | | 14,237 | |
Navient Corp. 9.375% 7/25/2030 | | | 16,000 | | | | 16,776 | |
Navient Corp. 11.50% 3/15/2031 | | | 9,460 | | | | 10,371 | |
Navient Corp. 5.625% 8/1/2033 | | | 8,350 | | | | 6,863 | |
New York Life Global Funding 4.55% 1/28/20335 | | | 5,893 | | | | 5,813 | |
NFP Corp. 6.875% 8/15/20285 | | | 3,685 | | | | 3,749 | |
Osaic Holdings, Inc. 10.75% 8/1/20275 | | | 2,500 | | | | 2,540 | |
Oxford Finance, LLC 6.375% 2/1/20275 | | | 6,055 | | | | 5,729 | |
PNC Financial Services Group, Inc. 6.037% 10/28/2033 (USD-SOFR + 2.14% on 10/28/2032)6 | | | 18,000 | | | | 18,816 | |
PNC Financial Services Group, Inc. 5.939% 8/18/2034 (USD-SOFR + 1.946% on 8/18/2033)6 | | | 370 | | | | 385 | |
PNC Financial Services Group, Inc. 6.875% 10/20/2034 (USD-SOFR + 2.284% on 10/20/2033)6 | | | 48,160 | | | | 53,485 | |
Progressive Corp. 2.50% 3/15/2027 | | | 20,000 | | | | 18,783 | |
State Street Corp. 4.821% 1/26/2034 (USD-SOFR + 1.567% on 1/26/2033)6 | | | 20,807 | | | | 20,484 | |
Toronto-Dominion Bank (The) 2.00% 9/10/2031 | | | 20,000 | | | | 16,645 | |
Travelers Companies, Inc. 2.55% 4/27/2050 | | | 361 | | | | 238 | |
Truist Financial Corp. 5.867% 6/8/2034 (USD-SOFR + 2.361% on 6/8/2033)6 | | | 5,597 | | | | 5,713 | |
U.S. Bancorp 4.839% 2/1/2034 (USD-SOFR + 1.60% on 2/1/2033)6 | | | 9,000 | | | | 8,625 | |
U.S. Bancorp 5.836% 6/12/2034 (USD-SOFR + 2.26% on 6/10/2033)6 | | | 14,969 | | | | 15,448 | |
UBS Group AG 4.194% 4/1/2031 (USD-SOFR + 3.73% on 4/1/2030)5,6 | | | 22,550 | | | | 21,016 | |
UBS Group AG 4.375% junior subordinated perpetual bonds (5-year UST Yield Curve Rate T Note Constant Maturity + 3.313% on 2/10/2031)5,6 | | | 5,375 | | | | 4,259 | |
Wells Fargo & Co. 3.196% 6/17/2027 (3-month USD CME Term SOFR + 1.432% on 6/17/2026)6 | | | 1,650 | | | | 1,578 | |
Wells Fargo & Co. 4.808% 7/25/2028 (USD-SOFR + 1.98% on 7/25/2027)6 | | | 15,571 | | | | 15,465 | |
Wells Fargo & Co. 4.897% 7/25/2033 (USD-SOFR + 4.897% on 7/25/2032)6 | | | 4,891 | | | | 4,767 | |
Wells Fargo & Co. 6.491% 10/23/2034 (USD-SOFR + 2.06% on 10/23/2033)6 | | | 33,017 | | | | 35,938 | |
Wells Fargo & Co. 4.611% 4/25/2053 (USD-SOFR + 2.13% on 4/25/2052)6 | | | 17,317 | | | | 15,589 | |
Westpac Banking Corp. 1.953% 11/20/2028 | | | 7,248 | | | | 6,427 | |
| | | | | | | 1,227,680 | |
| | | | | | | | |
Health care 3.35% | | | | | | | | |
AbbVie, Inc. 2.60% 11/21/2024 | | | 3,616 | | | | 3,534 | |
AbbVie, Inc. 3.20% 11/21/2029 | | | 1,207 | | | | 1,129 | |
Amgen, Inc. 3.00% 2/22/2029 | | | 600 | | | | 565 | |
Amgen, Inc. 4.05% 8/18/2029 | | | 16,075 | | | | 15,747 | |
Amgen, Inc. 5.25% 3/2/2030 | | | 11,990 | | | | 12,331 | |
Amgen, Inc. 4.20% 3/1/2033 | | | 14,000 | | | | 13,326 | |
Amgen, Inc. 5.25% 3/2/2033 | | | 31,086 | | | | 31,882 | |
Amgen, Inc. 4.875% 3/1/2053 | | | 4,975 | | | | 4,654 | |
American Funds Strategic Bond Fund | 15 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Health care (continued) | | | | | | | | |
Amgen, Inc. 5.65% 3/2/2053 | | USD | 20,474 | | | $ | 21,556 | |
Amgen, Inc. 5.75% 3/2/2063 | | | 12,500 | | | | 13,130 | |
AstraZeneca Finance, LLC 1.75% 5/28/2028 | | | 3,050 | | | | 2,731 | |
AstraZeneca PLC 3.375% 11/16/2025 | | | 3,600 | | | | 3,522 | |
AthenaHealth Group, Inc. 6.50% 2/15/20305 | | | 10,000 | | | | 9,085 | |
Avantor Funding, Inc. 4.625% 7/15/20285 | | | 5,785 | | | | 5,595 | |
Banner Health 2.913% 1/1/2051 | | | 10,000 | | | | 6,856 | |
Bausch Health Americas, Inc. 9.25% 4/1/20265 | | | 4,635 | | | | 4,246 | |
Bausch Health Americas, Inc. 8.50% 1/31/20275 | | | 2,820 | | | | 1,551 | |
Bausch Health Companies, Inc. 5.00% 2/15/20295 | | | 5,100 | | | | 2,219 | |
Baxter International, Inc. 2.272% 12/1/2028 | | | 5,032 | | | | 4,507 | |
Baxter International, Inc. 2.539% 2/1/2032 | | | 8,938 | | | | 7,499 | |
Baxter International, Inc. 3.132% 12/1/2051 | | | 12,537 | | | | 8,633 | |
Bayer US Finance, LLC 6.50% 11/21/20335 | | | 21,658 | | | | 22,397 | |
Bayer US Finance, LLC 6.875% 11/21/20535 | | | 4,418 | | | | 4,710 | |
Baylor Scott & White Holdings 0.827% 11/15/2025 | | | 5,463 | | | | 5,028 | |
Baylor Scott & White Holdings 1.777% 11/15/2030 | | | 19,087 | | | | 15,906 | |
Centene Corp. 2.45% 7/15/2028 | | | 24,165 | | | | 21,540 | |
Centene Corp. 3.00% 10/15/2030 | | | 3,625 | | | | 3,144 | |
Centene Corp. 2.625% 8/1/2031 | | | 6,580 | | | | 5,467 | |
Cigna Group (The) 2.375% 3/15/2031 | | | 1,713 | | | | 1,465 | |
CVS Health Corp. 1.75% 8/21/2030 | | | 1,865 | | | | 1,541 | |
CVS Health Corp. 5.25% 2/21/2033 | | | 16,580 | | | | 16,955 | |
CVS Health Corp. 5.30% 6/1/2033 | | | 8,385 | | | | 8,608 | |
CVS Health Corp. 5.625% 2/21/2053 | | | 12,500 | | | | 12,689 | |
CVS Health Corp. 5.875% 6/1/2053 | | | 4,000 | | | | 4,213 | |
CVS Health Corp. 6.00% 6/1/2063 | | | 3,074 | | | | 3,266 | |
Elevance Health, Inc. 4.75% 2/15/2033 | | | 6,892 | | | | 6,898 | |
Elevance Health, Inc. 5.125% 2/15/2053 | | | 2,920 | | | | 2,927 | |
Endo DAC 6.875% 10/15/20245 | | | 625 | | | | 402 | |
Endo DAC 6.00% 6/30/20285,9 | | | 4,300 | | | | 306 | |
Endo Luxembourg Finance Co. I SARL 6.125% 4/1/20295 | | | 2,725 | | | | 1,746 | |
GE HealthCare Technologies, Inc. 5.65% 11/15/2027 | | | 15,000 | | | | 15,534 | |
Gilead Sciences, Inc. 2.80% 10/1/2050 | | | 1,462 | | | | 1,010 | |
HCA, Inc. 3.625% 3/15/2032 | | | 5,028 | | | | 4,498 | |
Organon & Co. 4.125% 4/30/20285 | | | 5,545 | | | | 5,109 | |
Owens & Minor, Inc. 6.625% 4/1/20305 | | | 8,825 | | | | 8,437 | |
Par Pharmaceutical, Inc. 7.50% 4/1/20275 | | | 3,000 | | | | 1,923 | |
Pfizer Investment Enterprises Pte., Ltd. 4.75% 5/19/2033 | | | 13,154 | | | | 13,188 | |
Pfizer Investment Enterprises Pte., Ltd. 5.11% 5/19/2043 | | | 20,000 | | | | 19,941 | |
Pfizer Investment Enterprises Pte., Ltd. 5.30% 5/19/2053 | | | 12,115 | | | | 12,377 | |
Radiology Partners, Inc. 9.25% 2/1/20285 | | | 665 | | | | 342 | |
Radiology Partners, Inc., Term Loan, (1-month USD CME Term SOFR + 4.25%) 10.179% 7/9/20254,8 | | | 1,144 | | | | 926 | |
Roche Holdings, Inc. 1.93% 12/13/20285 | | | 23,675 | | | | 21,152 | |
Roche Holdings, Inc. 2.607% 12/13/20515 | | | 9,473 | | | | 6,378 | |
RP Escrow Issuer, LLC 5.25% 12/15/20255 | | | 13,350 | | | | 10,696 | |
Summa Health 3.511% 11/15/2051 | | | 9,945 | | | | 7,144 | |
Sutter Health 1.321% 8/15/2025 | | | 6,000 | | | | 5,625 | |
Sutter Health 5.164% 8/15/2033 | | | 9,905 | | | | 10,042 | |
Team Health Holdings, Inc. 6.375% 2/1/20255 | | | 1,475 | | | | 1,237 | |
Tenet Healthcare Corp. 5.125% 11/1/2027 | | | 4,100 | | | | 4,011 | |
Tenet Healthcare Corp. 4.375% 1/15/2030 | | | 15,000 | | | | 13,917 | |
Teva Pharmaceutical Finance Netherlands III BV 6.00% 4/15/2024 | | | 3,462 | | | | 3,454 | |
Teva Pharmaceutical Finance Netherlands III BV 3.15% 10/1/2026 | | | 7,300 | | | | 6,764 | |
Teva Pharmaceutical Finance Netherlands III BV 4.75% 5/9/2027 | | | 14,245 | | | | 13,657 | |
Teva Pharmaceutical Finance Netherlands III BV 6.75% 3/1/2028 | | | 3,900 | | | | 3,990 | |
Teva Pharmaceutical Finance Netherlands III BV 5.125% 5/9/2029 | | | 16,280 | | | | 15,566 | |
Teva Pharmaceutical Finance Netherlands III BV 7.875% 9/15/2029 | | | 10,106 | | | | 10,904 | |
Teva Pharmaceutical Finance Netherlands III BV 8.125% 9/15/2031 | | | 9,012 | | | | 9,840 | |
Teva Pharmaceutical Finance Netherlands III BV 4.10% 10/1/2046 | | | 5,000 | | | | 3,391 | |
Thermo Fisher Scientific, Inc. 5.20% 1/31/2034 | | | 4,447 | | | | 4,658 | |
UnitedHealth Group, Inc. 5.30% 2/15/2030 | | | 7,300 | | | | 7,643 | |
UnitedHealth Group, Inc. 2.00% 5/15/2030 | | | 5,404 | | | | 4,673 | |
UnitedHealth Group, Inc. 4.20% 5/15/2032 | | | 4,599 | | | | 4,503 | |
UnitedHealth Group, Inc. 5.35% 2/15/2033 | | | 12,935 | | | | 13,690 | |
UnitedHealth Group, Inc. 3.25% 5/15/2051 | | | 14,216 | | | | 10,778 | |
16 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Health care (continued) | | | | | | | | |
UnitedHealth Group, Inc. 4.75% 5/15/2052 | | USD | 4,503 | | | $ | 4,333 | |
UnitedHealth Group, Inc. 5.875% 2/15/2053 | | | 7,300 | | | | 8,275 | |
West Virginia United Health System Obligated Group 3.129% 6/1/2050 | | | 2,775 | | | | 1,839 | |
| | | | | | | 604,951 | |
| | | | | | | | |
Energy 3.01% | | | | | | | | |
AI Candelaria (Spain), SLU 5.75% 6/15/20335 | | | 2,990 | | | | 2,322 | |
Apache Corp. 4.625% 11/15/2025 | | | 5,395 | | | | 5,268 | |
Apache Corp. 4.25% 1/15/2030 | | | 495 | | | | 463 | |
Apache Corp. 5.10% 9/1/2040 | | | 2,350 | | | | 2,017 | |
Apache Corp. 4.75% 4/15/2043 | | | 11,335 | | | | 8,938 | |
Apache Corp. 5.35% 7/1/2049 | | | 1,665 | | | | 1,387 | |
Borr IHC, Ltd. 10.00% 11/15/20285 | | | 6,209 | | | | 6,488 | |
Borr IHC, Ltd. 10.375% 11/15/20305 | | | 10,000 | | | | 10,350 | |
Callon Petroleum Co. 7.50% 6/15/20305 | | | 7,005 | | | | 7,072 | |
Canadian Natural Resources, Ltd. 3.85% 6/1/2027 | | | 2,000 | | | | 1,943 | |
Canadian Natural Resources, Ltd. 2.95% 7/15/2030 | | | 6,455 | | | | 5,694 | |
Cenovus Energy, Inc. 5.375% 7/15/2025 | | | 1,095 | | | | 1,097 | |
Cenovus Energy, Inc. 5.25% 6/15/2037 | | | 197 | | | | 189 | |
Cenovus Energy, Inc. 5.40% 6/15/2047 | | | 212 | | | | 201 | |
Cheniere Energy Partners, LP 4.00% 3/1/2031 | | | 4,790 | | | | 4,361 | |
Cheniere Energy Partners, LP 5.95% 6/30/20335 | | | 25,000 | | | | 25,700 | |
Chesapeake Energy Corp. 5.50% 2/1/20265 | | | 1,800 | | | | 1,786 | |
Chesapeake Energy Corp. 5.875% 2/1/20295 | | | 1,550 | | | | 1,521 | |
Chevron Corp. 2.236% 5/11/2030 | | | 3,290 | | | | 2,916 | |
Chevron Corp. 3.078% 5/11/2050 | | | 1,181 | | | | 893 | |
Civitas Resources, Inc. 8.375% 7/1/20285 | | | 12,575 | | | | 13,143 | |
Civitas Resources, Inc. 8.625% 11/1/20305 | | | 2,455 | | | | 2,606 | |
Civitas Resources, Inc. 8.75% 7/1/20315 | | | 9,090 | | | | 9,688 | |
CNX Resources Corp. 7.375% 1/15/20315 | | | 3,079 | | | | 3,104 | |
Columbia Pipelines Holding Co., LLC 6.544% 11/15/20535 | | | 3,145 | | | | 3,468 | |
Columbia Pipelines Operating Co., LLC 5.927% 8/15/20305 | | | 3,214 | | | | 3,326 | |
Columbia Pipelines Operating Co., LLC 6.036% 11/15/20335 | | | 2,903 | | | | 3,042 | |
Columbia Pipelines Operating Co., LLC 6.497% 8/15/20435 | | | 2,708 | | | | 2,905 | |
Comstock Resources, Inc. 5.875% 1/15/20305 | | | 3,015 | | | | 2,619 | |
ConocoPhillips Co. 5.55% 3/15/2054 | | | 12,000 | | | | 12,752 | |
Crescent Energy Finance, LLC 9.25% 2/15/20285 | | | 3,045 | | | | 3,162 | |
CrownRock, LP 5.00% 5/1/20295 | | | 3,030 | | | | 2,958 | |
DT Midstream, Inc. 4.375% 6/15/20315 | | | 9,905 | | | | 8,947 | |
Ecopetrol SA 4.625% 11/2/2031 | | | 220 | | | | 187 | |
Ecopetrol SA 8.875% 1/13/2033 | | | 15,765 | | | | 17,147 | |
Enbridge Energy Partners, LP 5.875% 10/15/2025 | | | 155 | | | | 157 | |
Enbridge, Inc. 6.70% 11/15/2053 | | | 14,331 | | | | 16,687 | |
Energean Israel Finance, Ltd. 5.875% 3/30/20315 | | | 2,765 | | | | 2,341 | |
Energy Transfer, LP 2.90% 5/15/2025 | | | 3,201 | | | | 3,104 | |
Energy Transfer, LP 6.40% 12/1/2030 | | | 9,174 | | | | 9,819 | |
Energy Transfer, LP 6.55% 12/1/2033 | | | 4,878 | | | | 5,301 | |
Energy Transfer, LP 6.50% junior subordinated perpetual bonds (5-year UST Yield Curve Rate T Note Constant Maturity + 5.694% on 11/15/2026)6 | | | 2,848 | | | | 2,713 | |
Energy Transfer, LP 6.625% junior subordinated perpetual bonds (3-month USD-LIBOR + 4.155% on 2/15/2028)6,10 | | | 2,700 | | | | 2,265 | |
EQM Midstream Partners, LP 6.00% 7/1/20255 | | | 7,200 | | | | 7,201 | |
EQM Midstream Partners, LP 6.50% 7/1/20275 | | | 3,620 | | | | 3,688 | |
EQM Midstream Partners, LP 4.50% 1/15/20295 | | | 2,555 | | | | 2,416 | |
EQM Midstream Partners, LP 4.75% 1/15/20315 | | | 2,850 | | | | 2,656 | |
EQT Corp. 6.125% 2/1/20256 | | | 1,107 | | | | 1,113 | |
Equinor ASA 3.70% 4/6/2050 | | | 1,217 | | | | 1,006 | |
Exxon Mobil Corp. 4.227% 3/19/2040 | | | 1,200 | | | | 1,115 | |
Exxon Mobil Corp. 3.452% 4/15/2051 | | | 1,229 | | | | 965 | |
Gray Oak Pipeline, LLC 2.60% 10/15/20255 | | | 4,442 | | | | 4,213 | |
Hilcorp Energy I, LP 5.75% 2/1/20295 | | | 1,285 | | | | 1,242 | |
Hilcorp Energy I, LP 6.00% 4/15/20305 | | | 2,700 | | | | 2,622 | |
Hilcorp Energy I, LP 6.00% 2/1/20315 | | | 865 | | | | 837 | |
Hilcorp Energy I, LP 6.25% 4/15/20325 | | | 4,550 | | | | 4,383 | |
Hilcorp Energy I, LP 8.375% 11/1/20335 | | | 5,220 | | | | 5,538 | |
Kinder Morgan, Inc. 5.20% 6/1/2033 | | | 4,016 | | | | 3,994 | |
Kinder Morgan, Inc. 3.25% 8/1/2050 | | | 3,345 | | | | 2,240 | |
American Funds Strategic Bond Fund | 17 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Energy (continued) | | | | | | | | |
Leviathan Bond, Ltd. 6.75% 6/30/20305 | | USD | 3,245 | | | $ | 2,971 | |
Magellan Midstream Partners, LP 3.95% 3/1/2050 | | | 12,500 | | | | 9,572 | |
Marathon Oil Corp. 4.40% 7/15/2027 | | | 1,175 | | | | 1,147 | |
Modec Finance BV 7.84% 7/15/20267,11 | | | 9,000 | | | | 9,049 | |
MPLX, LP 1.75% 3/1/2026 | | | 5,933 | | | | 5,552 | |
MPLX, LP 2.65% 8/15/2030 | | | 6,409 | | | | 5,534 | |
MPLX, LP 4.95% 9/1/2032 | | | 9,163 | | | | 8,972 | |
Murphy Oil Corp. 5.875% 12/1/2027 | | | 1,261 | | | | 1,256 | |
MV24 Capital BV 6.748% 6/1/2034 | | | 14,573 | | | | 13,652 | |
MV24 Capital BV 6.748% 6/1/20345 | | | 1,157 | | | | 1,084 | |
Neptune Energy Bondco PLC 6.625% 5/15/20255 | | | 2,775 | | | | 2,752 | |
New Fortress Energy, Inc. 6.50% 9/30/20265 | | | 6,985 | | | | 6,715 | |
NGL Energy Operating, LLC 7.50% 2/1/20265 | | | 12,925 | | | | 13,065 | |
NGPL PipeCo, LLC 3.25% 7/15/20315 | | | 5,000 | | | | 4,344 | |
Noble Finance II, LLC 8.00% 4/15/20305 | | | 1,850 | | | | 1,927 | |
Northern Oil and Gas, Inc. 8.75% 6/15/20315 | | | 4,475 | | | | 4,667 | |
Occidental Petroleum Corp. 6.125% 1/1/2031 | | | 12,000 | | | | 12,473 | |
Occidental Petroleum Corp. 6.45% 9/15/2036 | | | 12,000 | | | | 12,713 | |
Occidental Petroleum Corp. 6.60% 3/15/2046 | | | 12,000 | | | | 13,009 | |
ONEOK, Inc. 4.55% 7/15/2028 | | | 130 | | | | 128 | |
ONEOK, Inc. 4.35% 3/15/2029 | | | 230 | | | | 224 | |
ONEOK, Inc. 3.10% 3/15/2030 | | | 1,788 | | | | 1,605 | |
ONEOK, Inc. 5.80% 11/1/2030 | | | 2,126 | | | | 2,211 | |
ONEOK, Inc. 6.05% 9/1/2033 | | | 15,811 | | | | 16,759 | |
ONEOK, Inc. 4.95% 7/13/2047 | | | 402 | | | | 361 | |
ONEOK, Inc. 7.15% 1/15/2051 | | | 2,610 | | | | 3,002 | |
ONEOK, Inc. 6.625% 9/1/2053 | | | 6,437 | | | | 7,212 | |
Permian Resources Operating, LLC 9.875% 7/15/20315 | | | 7,285 | | | | 8,104 | |
Permian Resources Operating, LLC 7.00% 1/15/20325 | | | 2,150 | | | | 2,220 | |
Petroleos Mexicanos 4.50% 1/23/2026 | | | 2,188 | | | | 2,049 | |
Petroleos Mexicanos 6.875% 10/16/2025 | | | 25,000 | | | | 24,613 | |
Petroleos Mexicanos 6.70% 2/16/2032 | | | 11,544 | | | | 9,593 | |
Range Resources Corp. 4.75% 2/15/20305 | | | 1,340 | | | | 1,240 | |
Southwestern Energy Co. 8.375% 9/15/2028 | | | 1,035 | | | | 1,073 | |
Southwestern Energy Co. 5.375% 3/15/2030 | | | 8,780 | | | | 8,584 | |
Southwestern Energy Co. 4.75% 2/1/2032 | | | 2,200 | | | | 2,038 | |
Transocean Aquila, Ltd. 8.00% 9/30/20285 | | | 3,915 | | | | 3,976 | |
Transocean, Inc. 8.00% 2/1/20275 | | | 5,000 | | | | 4,880 | |
Transocean, Inc. 8.75% 2/15/20305 | | | 3,607 | | | | 3,771 | |
Transocean, Inc. 6.80% 3/15/2038 | | | 5,000 | | | | 4,015 | |
Venture Global Calcasieu Pass, LLC 6.25% 1/15/20305 | | | 10,796 | | | | 10,752 | |
Venture Global Calcasieu Pass, LLC 4.125% 8/15/20315 | | | 3,970 | | | | 3,503 | |
Venture Global LNG, Inc. 8.125% 6/1/20285 | | | 12,500 | | | | 12,635 | |
Venture Global LNG, Inc. 8.375% 6/1/20315 | | | 7,740 | | | | 7,748 | |
Western Midstream Operating, LP 3.10% 2/1/20256 | | | 1,532 | | | | 1,492 | |
Western Midstream Operating, LP 4.05% 2/1/20306 | | | 1,101 | | | | 1,031 | |
Western Midstream Operating, LP 5.25% 2/1/20506 | | | 2,539 | | | | 2,280 | |
| | | | | | | 544,829 | |
| | | | | | | | |
Consumer discretionary 2.38% | | | | | | | | |
1011778 B.C. Unlimited Liability Co. 5.75% 4/15/20255 | | | 3,200 | | | | 3,192 | |
Advance Auto Parts, Inc. 5.95% 3/9/2028 | | | 1,402 | | | | 1,396 | |
Advance Auto Parts, Inc. 3.50% 3/15/2032 | | | 2,766 | | | | 2,290 | |
Alibaba Group Holding, Ltd. 2.125% 2/9/2031 | | | 20,000 | | | | 16,585 | |
Allied Universal Holdco, LLC 4.625% 6/1/20285 | | | 4,720 | | | | 4,296 | |
Allied Universal Holdco, LLC 6.00% 6/1/20295 | | | 1,915 | | | | 1,563 | |
Amazon.com, Inc. 1.00% 5/12/2026 | | | 20,000 | | | | 18,482 | |
Amazon.com, Inc. 2.10% 5/12/2031 | | | 20,000 | | | | 17,254 | |
Amazon.com, Inc. 3.10% 5/12/2051 | | | 10,000 | | | | 7,443 | |
Asbury Automotive Group, Inc. 4.625% 11/15/20295 | | | 2,865 | | | | 2,655 | |
Asbury Automotive Group, Inc. 5.00% 2/15/20325 | | | 3,495 | | | | 3,180 | |
Atlas LuxCo 4 SARL 4.625% 6/1/20285 | | | 3,605 | | | | 3,299 | |
AutoNation, Inc. 3.85% 3/1/2032 | | | 15,000 | | | | 13,340 | |
BMW US Capital, LLC 3.90% 4/9/20255 | | | 5,300 | | | | 5,242 | |
BMW US Capital, LLC 3.45% 4/1/20275 | | | 8,625 | | | | 8,301 | |
BMW US Capital, LLC 2.55% 4/1/20315 | | | 2,600 | | | | 2,258 | |
Booking Holdings, Inc. 4.625% 4/13/2030 | | | 4,000 | | | | 4,033 | |
18 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Consumer discretionary (continued) | | | | | | | | |
Boyd Gaming Corp. 4.75% 12/1/2027 | | USD | 2,300 | | | $ | 2,217 | |
Boyd Gaming Corp. 4.75% 6/15/20315 | | | 9,565 | | | | 8,789 | |
Caesars Entertainment, Inc. 6.25% 7/1/20255 | | | 2,795 | | | | 2,805 | |
Carnival Corp. 5.75% 3/1/20275 | | | 11,000 | | | | 10,738 | |
Carnival Corp. 4.00% 8/1/20285 | | | 11,000 | | | | 10,234 | |
Carnival Corp. 6.00% 5/1/20295 | | | 14,555 | | | | 14,016 | |
Carnival Corp. 7.00% 8/15/20295 | | | 3,470 | | | | 3,625 | |
Carnival Corp. 10.50% 6/1/20305 | | | 1,975 | | | | 2,162 | |
Daimler Trucks Finance North America, LLC 5.125% 1/19/20285 | | | 24,000 | | | | 24,158 | |
Daimler Trucks Finance North America, LLC 2.375% 12/14/20285 | | | 7,775 | | | | 6,931 | |
Daimler Trucks Finance North America, LLC 2.50% 12/14/20315 | | | 7,835 | | | | 6,505 | |
Everi Holdings, Inc. 5.00% 7/15/20295 | | | 5,750 | | | | 5,226 | |
Fertitta Entertainment, LLC 4.625% 1/15/20295 | | | 5,000 | | | | 4,541 | |
Fertitta Entertainment, LLC 6.75% 1/15/20305 | | | 10,000 | | | | 8,791 | |
Ford Motor Co. 4.75% 1/15/2043 | | | 3,329 | | | | 2,752 | |
Ford Motor Co. 5.291% 12/8/2046 | | | 6,671 | | | | 5,885 | |
Ford Motor Credit Co., LLC 5.125% 6/16/2025 | | | 4,175 | | | | 4,124 | |
Ford Motor Credit Co., LLC 2.70% 8/10/2026 | | | 7,820 | | | | 7,246 | |
Ford Motor Credit Co., LLC 4.95% 5/28/2027 | | | 7,775 | | | | 7,591 | |
Ford Motor Credit Co., LLC 3.815% 11/2/2027 | | | 10,000 | | | | 9,343 | |
Ford Motor Credit Co., LLC 2.90% 2/10/2029 | | | 5,725 | | | | 5,019 | |
Ford Motor Credit Co., LLC 7.20% 6/10/2030 | | | 2,895 | | | | 3,086 | |
Ford Motor Credit Co., LLC 7.122% 11/7/2033 | | | 4,866 | | | | 5,245 | |
General Motors Co. 6.80% 10/1/2027 | | | 1,882 | | | | 1,996 | |
Grand Canyon University 4.375% 10/1/2026 | | | 10,000 | | | | 9,650 | |
Grand Canyon University 5.125% 10/1/2028 | | | 7,000 | | | | 6,277 | |
Grupo Axo, SAPI de CV 5.75% 6/8/20265 | | | 4,450 | | | | 4,138 | |
Hanesbrands, Inc. 9.00% 2/15/20315 | | | 2,000 | | | | 1,962 | |
Hanesbrands, Inc., Term Loan B, (3-month USD CME Term SOFR + 3.75%) 9.106% 3/8/20304,8 | | | 2,824 | | | | 2,824 | |
Hilton Grand Vacations Borrower, LLC 5.00% 6/1/20295 | | | 3,403 | | | | 3,144 | |
Home Depot, Inc. 2.95% 6/15/2029 | | | 1,435 | | | | 1,350 | |
Jacobs Entertainment, Inc. 6.75% 2/15/20295 | | | 5,305 | | | | 4,992 | |
Marriott International, Inc. 5.75% 5/1/2025 | | | 129 | | | | 130 | |
McDonald’s Corp. 3.625% 9/1/2049 | | | 979 | | | | 786 | |
McDonald’s Corp. 4.20% 4/1/2050 | | | 2,259 | | | | 2,001 | |
McDonald’s Corp. 5.15% 9/9/2052 | | | 2,620 | | | | 2,666 | |
MercadoLibre, Inc. 2.375% 1/14/2026 | | | 4,255 | | | | 3,977 | |
MGM Resorts International 6.75% 5/1/2025 | | | 3,500 | | | | 3,513 | |
Mohegan Gaming & Entertainment 8.00% 2/1/20265 | | | 13,167 | | | | 12,435 | |
NCL Corp., Ltd. 5.875% 3/15/20265 | | | 5,600 | | | | 5,476 | |
NCL Corp., Ltd. 5.875% 2/15/20275 | | | 3,805 | | | | 3,774 | |
NCL Corp., Ltd. 7.75% 2/15/20295 | | | 4,880 | | | | 4,914 | |
Nordstrom, Inc. 4.25% 8/1/2031 | | | 4,000 | | | | 3,333 | |
Party City Holdings, Inc. 0% 10/12/20287 | | | 560 | | | | — | 2 |
Party City Holdings, Inc. 12.00% PIK or 12.00% Cash 1/11/20295,12 | | | 2,281 | | | | 2,228 | |
Royal Caribbean Cruises, Ltd. 4.25% 7/1/20265 | | | 16,160 | | | | 15,619 | |
Royal Caribbean Cruises, Ltd. 5.50% 4/1/20285 | | | 5,000 | | | | 4,939 | |
Royal Caribbean Cruises, Ltd. 8.25% 1/15/20295 | | | 11,931 | | | | 12,686 | |
Sally Holdings, LLC 5.625% 12/1/2025 | | | 5,600 | | | | 5,605 | |
Scientific Games Holdings, LP 6.625% 3/1/20305 | | | 5,195 | | | | 4,918 | |
Tapestry, Inc. 7.85% 11/27/2033 | | | 8,782 | | | | 9,373 | |
Toyota Motor Credit Corp. 3.375% 4/1/2030 | | | 2,865 | | | | 2,694 | |
Universal Entertainment Corp. 8.75% 12/11/20245 | | | 5,500 | | | | 5,921 | |
Wynn Resorts Finance, LLC 5.125% 10/1/20295 | | | 5,490 | | | | 5,188 | |
Wynn Resorts Finance, LLC 7.125% 2/15/20315 | | | 5,229 | | | | 5,452 | |
| | | | | | | 429,799 | |
| | | | | | | | |
Industrials 2.33% | | | | | | | | |
Allison Transmission, Inc. 3.75% 1/30/20315 | | | 4,575 | | | | 4,047 | |
Atlantic Aviation FBO, Inc., Term Loan, (3-month USD CME Term SOFR + 2.75%) 8.22% 9/22/20284,8 | | | 8,820 | | | | 8,822 | |
Boeing Co. 4.875% 5/1/2025 | | | 162 | | | | 161 | |
Boeing Co. 5.15% 5/1/2030 | | | 22,866 | | | | 23,291 | |
Boeing Co. 3.625% 2/1/2031 | | | 7,848 | | | | 7,293 | |
Boeing Co. 3.60% 5/1/2034 | | | 6,460 | | | | 5,712 | |
Boeing Co. 5.705% 5/1/2040 | | | 4,000 | | | | 4,140 | |
American Funds Strategic Bond Fund | 19 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Industrials (continued) | | | | | | | | |
Boeing Co. 5.93% 5/1/2060 | | USD | 11,000 | | | $ | 11,410 | |
Bombardier, Inc. 7.125% 6/15/20265 | | | 5,097 | | | | 5,078 | |
Bombardier, Inc. 7.875% 4/15/20275 | | | 2,610 | | | | 2,613 | |
Bombardier, Inc. 6.00% 2/15/20285 | | | 4,180 | | | | 4,077 | |
Bombardier, Inc. 7.50% 2/1/20295 | | | 9,000 | | | | 9,157 | |
Bombardier, Inc. 8.75% 11/15/20305 | | | 12,000 | | | | 12,791 | |
Burlington Northern Santa Fe, LLC 3.30% 9/15/2051 | | | 3,856 | | | | 2,933 | |
BWX Technologies, Inc. 4.125% 6/30/20285 | | | 4,760 | | | | 4,419 | |
Canadian Pacific Railway Co. 2.05% 3/5/2030 | | | 2,000 | | | | 1,713 | |
Canadian Pacific Railway Co. 3.10% 12/2/2051 | | | 16,554 | | | | 11,975 | |
Carrier Global Corp. 2.722% 2/15/2030 | | | 2,736 | | | | 2,449 | |
Carrier Global Corp. 2.70% 2/15/2031 | | | 2,736 | | | | 2,392 | |
Carrier Global Corp. 5.90% 3/15/20345 | | | 12,611 | | | | 13,645 | |
Carrier Global Corp. 3.577% 4/5/2050 | | | 1,955 | | | | 1,531 | |
Carrier Global Corp. 6.20% 3/15/20545 | | | 11,737 | | | | 13,582 | |
Clarivate Science Holdings Corp. 3.875% 7/1/20285 | | | 2,525 | | | | 2,383 | |
CoreLogic, Inc. 4.50% 5/1/20285 | | | 14,000 | | | | 12,278 | |
CoreLogic, Inc., Term Loan, (3-month USD CME Term SOFR + 6.50%) 11.97% 6/4/20294,8 | | | 3,375 | | | | 3,040 | |
CSX Corp. 2.40% 2/15/2030 | | | 2,228 | | | | 1,971 | |
CSX Corp. 3.80% 4/15/2050 | | | 546 | | | | 447 | |
Icahn Enterprises, LP 9.75% 1/15/20295 | | | 13,000 | | | | 13,279 | |
Lockheed Martin Corp. 5.10% 11/15/2027 | | | 8,371 | | | | 8,645 | |
Lockheed Martin Corp. 5.25% 1/15/2033 | | | 13,204 | | | | 14,013 | |
Lockheed Martin Corp. 5.70% 11/15/2054 | | | 6,373 | | | | 7,177 | |
Mileage Plus Holdings, LLC 6.50% 6/20/20275 | | | 2,734 | | | | 2,743 | |
Norfolk Southern Corp. 4.45% 3/1/2033 | | | 1,343 | | | | 1,326 | |
Norfolk Southern Corp. 5.35% 8/1/2054 | | | 15,905 | | | | 16,553 | |
PM General Purchaser, LLC 9.50% 10/1/20285 | | | 6,330 | | | | 6,426 | |
Regal Rexnord Corp. 6.30% 2/15/20305 | | | 15,000 | | | | 15,402 | |
Regal Rexnord Corp. 6.40% 4/15/20335 | | | 15,000 | | | | 15,646 | |
Ritchie Bros. Holdings, Inc. 6.75% 3/15/20285 | | | 5,956 | | | | 6,140 | |
Ritchie Bros. Holdings, Inc. 7.75% 3/15/20315 | | | 6,860 | | | | 7,322 | |
Rolls-Royce PLC 5.75% 10/15/20275 | | | 10,265 | | | | 10,289 | |
RTX Corp. 6.10% 3/15/2034 | | | 7,284 | | | | 7,908 | |
RTX Corp. 5.375% 2/27/2053 | | | 12,191 | | | | 12,398 | |
RTX Corp. 6.40% 3/15/2054 | | | 4,069 | | | | 4,714 | |
SkyMiles IP, Ltd. 4.50% 10/20/20255 | | | 3,002 | | | | 2,957 | |
SkyMiles IP, Ltd. 4.75% 10/20/20285 | | | 2,760 | | | | 2,716 | |
SkyMiles IP, Ltd., Term Loan, (3-month USD CME Term SOFR + 3.75%) 9.166% 10/20/20274,8 | | | 2,400 | | | | 2,461 | |
Spirit AeroSystems, Inc. 4.60% 6/15/2028 | | | 8,180 | | | | 7,245 | |
Spirit AeroSystems, Inc. 9.375% 11/30/20295 | | | 2,492 | | | | 2,730 | |
Spirit AeroSystems, Inc. 9.75% 11/15/20305 | | | 4,400 | | | | 4,735 | |
TK Elevator Holdco GmbH 7.625% 7/15/20285 | | | 7,875 | | | | 7,745 | |
TK Elevator U.S. Newco, Inc. 5.25% 7/15/20275 | | | 2,625 | | | | 2,580 | |
TransDigm, Inc. 5.50% 11/15/2027 | | | 5,000 | | | | 4,903 | |
TransDigm, Inc. 4.875% 5/1/2029 | | | 1,990 | | | | 1,862 | |
Triumph Group, Inc. 9.00% 3/15/20285 | | | 4,754 | | | | 5,061 | |
Union Pacific Corp. 2.375% 5/20/2031 | | | 26,768 | | | | 23,282 | |
Union Pacific Corp. 2.80% 2/14/2032 | | | 9,999 | | | | 8,876 | |
Union Pacific Corp. 2.95% 3/10/2052 | | | 9,118 | | | | 6,475 | |
United Airlines, Inc. 4.375% 4/15/20265 | | | 3,605 | | | | 3,516 | |
United Airlines, Inc. 4.625% 4/15/20295 | | | 2,920 | | | | 2,734 | |
WESCO Distribution, Inc. 7.125% 6/15/20255 | | | 5,835 | | | | 5,882 | |
WESCO Distribution, Inc. 7.25% 6/15/20285 | | | 3,095 | | | | 3,183 | |
| | | | | | | 422,274 | |
| | | | | | | | |
Utilities 2.13% | | | | | | | | |
AEP Transmission Co., LLC 3.65% 4/1/2050 | | | 725 | | | | 572 | |
AES Corp. 2.45% 1/15/2031 | | | 7,500 | | | | 6,306 | |
AES Panama Generation Holdings SRL 4.375% 5/31/20305 | | | 2,799 | | | | 2,355 | |
Alabama Power Co. 3.94% 9/1/2032 | | | 15,000 | | | | 14,315 | |
Alabama Power Co. 5.85% 11/15/2033 | | | 2,900 | | | | 3,120 | |
Alabama Power Co. 3.00% 3/15/2052 | | | 13,130 | | | | 9,191 | |
Alfa Desarrollo SpA 4.55% 9/27/20515 | | | 5,858 | | | | 4,579 | |
Alliant Energy Finance, LLC 3.60% 3/1/20325 | | | 6,800 | | | | 5,974 | |
20 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Utilities (continued) | | | | | | | | |
Consumers Energy Co. 3.60% 8/15/2032 | | USD | 5,148 | | | $ | 4,775 | |
Consumers Energy Co. 4.625% 5/15/2033 | | | 14,550 | | | | 14,535 | |
DTE Electric Co. 3.65% 3/1/2052 | | | 5,750 | | | | 4,551 | |
DTE Energy Co. 3.00% 3/1/2032 | | | 9,475 | | | | 8,405 | |
Duke Energy Corp. 5.75% 9/15/2033 | | | 12,000 | | | | 12,705 | |
Duke Energy Corp. 6.10% 9/15/2053 | | | 8,000 | | | | 8,689 | |
Duke Energy Florida, LLC 5.95% 11/15/2052 | | | 2,850 | | | | 3,124 | |
Edison International 4.125% 3/15/2028 | | | 2,165 | | | | 2,093 | |
Edison International 5.00% junior subordinated perpetual bonds (5-year UST Yield Curve Rate T Note Constant Maturity + 3.901% on 3/15/2027)6 | | | 10,000 | | | | 9,336 | |
Electricité de France SA 9.125% junior subordinated perpetual bonds (5-year UST Yield Curve Rate T Note Constant Maturity + 5.411% on 6/15/2033)5,6 | | | 9,825 | | | | 10,993 | |
Emera, Inc. 6.75% 6/15/2076 (3-month USD-LIBOR + 5.44% on 6/15/2026)6,10 | | | 350 | | | | 344 | |
Entergy Louisiana, LLC 4.75% 9/15/2052 | | | 650 | | | | 599 | |
FirstEnergy Corp. 2.65% 3/1/2030 | | | 3,712 | | | | 3,211 | |
Florida Power & Light Co. 5.05% 4/1/2028 | | | 8,525 | | | | 8,721 | |
Florida Power & Light Co. 5.10% 4/1/2033 | | | 10,525 | | | | 10,870 | |
Florida Power & Light Co. 5.30% 4/1/2053 | | | 5,391 | | | | 5,647 | |
Georgia Power Co. 4.95% 5/17/2033 | | | 7,250 | | | | 7,314 | |
Oncor Electric Delivery Co., LLC 4.55% 9/15/2032 | | | 7,150 | | | | 7,088 | |
Pacific Gas and Electric Co. 3.15% 1/1/2026 | | | 104 | | | | 100 | |
Pacific Gas and Electric Co. 2.95% 3/1/2026 | | | 355 | | | | 336 | |
Pacific Gas and Electric Co. 3.30% 3/15/2027 | | | 144 | | | | 135 | |
Pacific Gas and Electric Co. 3.30% 12/1/2027 | | | 304 | | | | 284 | |
Pacific Gas and Electric Co. 3.00% 6/15/2028 | | | 11,450 | | | | 10,444 | |
Pacific Gas and Electric Co. 4.65% 8/1/2028 | | | 141 | | | | 136 | |
Pacific Gas and Electric Co. 4.55% 7/1/2030 | | | 15,281 | | | | 14,568 | |
Pacific Gas and Electric Co. 2.50% 2/1/2031 | | | 11,399 | | | | 9,414 | |
Pacific Gas and Electric Co. 3.25% 6/1/2031 | | | 28,176 | | | | 24,428 | |
Pacific Gas and Electric Co. 6.40% 6/15/2033 | | | 24,575 | | | | 25,883 | |
Pacific Gas and Electric Co. 3.50% 8/1/2050 | | | 16,250 | | | | 11,253 | |
Pacific Gas and Electric Co. 6.75% 1/15/2053 | | | 2,560 | | | | 2,792 | |
PacifiCorp 4.15% 2/15/2050 | | | 2,950 | | | | 2,395 | |
PacifiCorp 3.30% 3/15/2051 | | | 1,750 | | | | 1,216 | |
PacifiCorp 2.90% 6/15/2052 | | | 608 | | | | 392 | |
PacifiCorp 5.35% 12/1/2053 | | | 13,534 | | | | 13,038 | |
PacifiCorp 5.50% 5/15/2054 | | | 6,216 | | | | 6,113 | |
PG&E Corp. 5.00% 7/1/2028 | | | 1,995 | | | | 1,942 | |
PG&E Corp. 5.25% 7/1/2030 | | | 1,485 | | | | 1,434 | |
Public Service Company of Colorado 2.70% 1/15/2051 | | | 1,794 | | | | 1,131 | |
Southern California Edison Co. 2.85% 8/1/2029 | | | 1,100 | | | | 1,003 | |
Southern California Edison Co. 2.75% 2/1/2032 | | | 16,975 | | | | 14,618 | |
Southern California Edison Co. 3.60% 2/1/2045 | | | 1,009 | | | | 786 | |
Southern California Edison Co. 3.65% 2/1/2050 | | | 930 | | | | 721 | |
Southern California Edison Co. 3.45% 2/1/2052 | | | 25,000 | | | | 18,270 | |
Southern California Gas Co. 2.55% 2/1/2030 | | | 875 | | | | 770 | |
Talen Energy Supply, LLC 8.625% 6/1/20305 | | | 12,341 | | | | 13,122 | |
Venture Global Calcasieu Pass, LLC 3.875% 8/15/20295 | | | 4,855 | | | | 4,411 | |
Virginia Electric & Power 2.30% 11/15/2031 | | | 4,100 | | | | 3,448 | |
Virginia Electric & Power 2.40% 3/30/2032 | | | 10,250 | | | | 8,633 | |
Virginia Electric & Power 2.45% 12/15/2050 | | | 8,041 | | | | 4,945 | |
WEC Energy Group, Inc. 5.15% 10/1/2027 | | | 4,100 | | | | 4,162 | |
Xcel Energy, Inc. 4.60% 6/1/2032 | | | 4,275 | | | | 4,171 | |
Xcel Energy, Inc. 5.45% 8/15/2033 | | | 7,725 | | | | 7,971 | |
Xcel Energy, Inc. 3.50% 12/1/2049 | | | 885 | | | | 653 | |
| | | | | | | 384,530 | |
| | | | | | | | |
Communication services 2.05% | | | | | | | | |
América Móvil, SAB de CV, 9.50% 1/27/2031 | | MXN | 823,210 | | | | 47,179 | |
AT&T, Inc. 4.35% 3/1/2029 | | USD | 1,250 | | | | 1,234 | |
AT&T, Inc. 2.25% 2/1/2032 | | | 5,000 | | | | 4,137 | |
AT&T, Inc. 3.50% 9/15/2053 | | | 22,215 | | | | 16,140 | |
CCO Holdings, LLC 4.75% 3/1/20305 | | | 2,200 | | | | 2,013 | |
CCO Holdings, LLC 4.25% 2/1/20315 | | | 13,500 | | | | 11,816 | |
CCO Holdings, LLC 4.75% 2/1/20325 | | | 20,000 | | | | 17,662 | |
CCO Holdings, LLC 4.50% 6/1/20335 | | | 7,875 | | | | 6,674 | |
CCO Holdings, LLC 4.25% 1/15/20345 | | | 8,725 | | | | 7,102 | |
American Funds Strategic Bond Fund | 21 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | |
Communication services (continued) | | | | | | | | |
Charter Communications Operating, LLC 5.25% 4/1/2053 | | USD | 15,000 | | | $ | 12,583 | |
Consolidated Communications, Inc. 5.00% 10/1/20285 | | | 2,800 | | | | 2,299 | |
DISH Network Corp. 11.75% 11/15/20275 | | | 10,125 | | | | 10,577 | |
Embarq Corp. 7.995% 6/1/2036 | | | 1,250 | | | | 783 | |
Gray Escrow II, Inc. 5.375% 11/15/20315 | | | 2,650 | | | | 2,002 | |
Meta Platforms, Inc. 3.85% 8/15/2032 | | | 45,000 | | | | 42,819 | |
Meta Platforms, Inc. 4.45% 8/15/2052 | | | 22,500 | | | | 20,689 | |
Midas OpCo Holdings, LLC 5.625% 8/15/20295 | | | 5,810 | | | | 5,351 | |
Netflix, Inc. 3.625% 6/15/20255 | | | 2,225 | | | | 2,185 | |
Netflix, Inc. 4.875% 4/15/2028 | | | 15,250 | | | | 15,464 | |
Netflix, Inc. 5.875% 11/15/2028 | | | 15,466 | | | | 16,321 | |
Netflix, Inc. 6.375% 5/15/2029 | | | 275 | | | | 299 | |
Netflix, Inc. 5.375% 11/15/20295 | | | 1,050 | | | | 1,086 | |
Netflix, Inc. 4.875% 6/15/20305 | | | 1,535 | | | | 1,556 | |
News Corp. 3.875% 5/15/20295 | | | 3,725 | | | | 3,429 | |
Nexstar Media, Inc. 4.75% 11/1/20285 | | | 6,000 | | | | 5,534 | |
Sirius XM Radio, Inc. 4.00% 7/15/20285 | | | 7,600 | | | | 7,034 | |
Sirius XM Radio, Inc. 3.875% 9/1/20315 | | | 10,575 | | | | 9,060 | |
Tencent Holdings, Ltd. 3.68% 4/22/2041 | | | 2,304 | | | | 1,814 | |
Tencent Holdings, Ltd. 3.24% 6/3/20505 | | | 14,410 | | | | 9,622 | |
Tencent Holdings, Ltd. 3.24% 6/3/2050 | | | 6,816 | | | | 4,551 | |
Tencent Holdings, Ltd. 3.84% 4/22/2051 | | | 19,747 | | | | 14,774 | |
Tencent Holdings, Ltd. 3.84% 4/22/20515 | | | 2,135 | | | | 1,597 | |
T-Mobile USA, Inc. 2.55% 2/15/2031 | | | 19,963 | | | | 17,204 | |
T-Mobile USA, Inc. 2.875% 2/15/2031 | | | 3,037 | | | | 2,679 | |
T-Mobile USA, Inc. 3.40% 10/15/2052 | | | 7,214 | | | | 5,260 | |
Univision Communications, Inc. 6.625% 6/1/20275 | | | 7,100 | | | | 7,086 | |
Univision Communications, Inc. 8.00% 8/15/20285 | | | 5,485 | | | | 5,662 | |
Univision Communications, Inc. 4.50% 5/1/20295 | | | 6,750 | | | | 6,030 | |
Univision Communications, Inc. 7.375% 6/30/20305 | | | 2,050 | | | | 2,046 | |
Verizon Communications, Inc. 2.55% 3/21/2031 | | | 8,188 | | | | 7,062 | |
Verizon Communications, Inc. 3.55% 3/22/2051 | | | 15,000 | | | | 11,569 | |
| | | | | | | 369,984 | |
| | | | | | | | |
Materials 1.58% | | | | | | | | |
Anglo American Capital PLC 5.375% 4/1/20255 | | | 919 | | | | 915 | |
Anglo American Capital PLC 5.625% 4/1/20305 | | | 6,000 | | | | 6,097 | |
Ball Corp. 6.875% 3/15/2028 | | | 10,635 | | | | 11,056 | |
Ball Corp. 2.875% 8/15/2030 | | | 14,060 | | | | 12,079 | |
BHP Billiton Finance (USA), Ltd. 4.90% 2/28/2033 | | | 4,431 | | | | 4,534 | |
BHP Billiton Finance (USA), Ltd. 5.25% 9/8/2033 | | | 22,008 | | | | 22,834 | |
BHP Billiton Finance (USA), Ltd. 5.50% 9/8/2053 | | | 5,284 | | | | 5,770 | |
Braskem Idesa SAPI 7.45% 11/15/2029 | | | 13,000 | | | | 8,184 | |
Braskem Idesa SAPI 6.99% 2/20/20325 | | | 13,676 | | | | 8,019 | |
Braskem Idesa SAPI 6.99% 2/20/2032 | | | 3,618 | | | | 2,121 | |
Braskem Netherlands Finance BV 4.50% 1/10/2028 | | | 4,397 | | | | 3,602 | |
Braskem Netherlands Finance BV 8.50% 1/12/20315 | | | 8,660 | | | | 8,065 | |
Braskem Netherlands Finance BV 8.50% 1/12/2031 | | | 2,603 | | | | 2,424 | |
Braskem Netherlands Finance BV 7.25% 2/13/20335 | | | 7,945 | | | | 6,699 | |
Braskem Netherlands Finance BV 7.25% 2/13/2033 | | | 3,000 | | | | 2,529 | |
Celanese US Holdings, LLC 6.35% 11/15/2028 | | | 12,754 | | | | 13,388 | |
Celanese US Holdings, LLC 6.55% 11/15/2030 | | | 8,884 | | | | 9,403 | |
Celanese US Holdings, LLC 6.70% 11/15/2033 | | | 6,765 | | | | 7,342 | |
CVR Partners, LP 6.125% 6/15/20285 | | | 5,290 | | | | 4,941 | |
EIDP, Inc. 4.80% 5/15/2033 | | | 6,692 | | | | 6,767 | |
First Quantum Minerals, Ltd. 6.875% 3/1/20265 | | | 800 | | | | 717 | |
First Quantum Minerals, Ltd. 6.875% 10/15/20275 | | | 6,500 | | | | 5,533 | |
FXI Holdings, Inc. 12.25% 11/15/20265 | | | 13,721 | | | | 12,246 | |
FXI Holdings, Inc. 12.25% 11/15/20265 | | | 8,422 | | | | 7,559 | |
International Flavors & Fragrances, Inc. 2.30% 11/1/20305 | | | 15,800 | | | | 13,078 | |
LABL, Inc. 9.50% 11/1/20285 | | | 4,370 | | | | 4,419 | |
LYB International Finance III, LLC 4.20% 5/1/2050 | | | 2,800 | | | | 2,237 | |
LYB International Finance III, LLC 3.625% 4/1/2051 | | | 8,366 | | | | 6,101 | |
Mauser Packaging Solutions Holding Co. 7.875% 8/15/20265 | | | 12,605 | | | | 12,839 | |
Mineral Resources, Ltd. 9.25% 10/1/20285 | | | 8,230 | | | | 8,765 | |
NOVA Chemicals Corp. 5.25% 6/1/20275 | | | 6,050 | | | | 5,679 | |
NOVA Chemicals Corp. 8.50% 11/15/20285 | | | 3,165 | | | | 3,323 | |
22 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | |
Materials (continued) | | | | | | | | |
NOVA Chemicals Corp. 4.25% 5/15/20295 | | USD | 10,000 | | | $ | 8,432 | |
Nutrien, Ltd. 5.80% 3/27/2053 | | | 4,119 | | | | 4,412 | |
OCI NV 6.70% 3/16/20335 | | | 14,213 | | | | 14,529 | |
Sasol Financing USA, LLC 8.75% 5/3/20295 | | | 21,000 | | | | 21,448 | |
Tronox, Inc. 4.625% 3/15/20295 | | | 9,435 | | | | 8,364 | |
| | | | | | | 286,450 | |
| | | | | | | | |
Consumer staples 1.27% | | | | | | | | |
7-Eleven, Inc. 0.95% 2/10/20265 | | | 6,625 | | | | 6,126 | |
7-Eleven, Inc. 1.30% 2/10/20285 | | | 1,890 | | | | 1,655 | |
7-Eleven, Inc. 1.80% 2/10/20315 | | | 12,000 | | | | 9,760 | |
7-Eleven, Inc. 2.50% 2/10/20415 | | | 12,000 | | | | 8,291 | |
7-Eleven, Inc. 2.80% 2/10/20515 | | | 10,835 | | | | 6,979 | |
Albertsons Companies, Inc. 3.50% 3/15/20295 | | | 5,730 | | | | 5,209 | |
Altria Group, Inc. 3.70% 2/4/2051 | | | 1,811 | | | | 1,277 | |
BAT Capital Corp. 2.726% 3/25/2031 | | | 5,000 | | | | 4,197 | |
BAT Capital Corp. 4.742% 3/16/2032 | | | 15,000 | | | | 14,403 | |
BAT Capital Corp. 6.421% 8/2/2033 | | | 8,939 | | | | 9,361 | |
BAT Capital Corp. 4.39% 8/15/2037 | | | 1,050 | | | | 881 | |
BAT Capital Corp. 3.734% 9/25/2040 | | | 2,640 | | | | 1,944 | |
BAT Capital Corp. 4.54% 8/15/2047 | | | 1,719 | | | | 1,323 | |
BAT Capital Corp. 4.758% 9/6/2049 | | | 941 | | | | 747 | |
BAT Capital Corp. 5.65% 3/16/2052 | | | 4,750 | | | | 4,295 | |
BAT Capital Corp. 7.081% 8/2/2053 | | | 19,446 | | | | 20,809 | |
Constellation Brands, Inc. 4.35% 5/9/2027 | | | 11,513 | | | | 11,421 | |
Constellation Brands, Inc. 4.75% 5/9/2032 | | | 6,096 | | | | 6,077 | |
H.J. Heinz Co. 3.00% 6/1/2026 | | | 2,567 | | | | 2,467 | |
H.J. Heinz Co. 3.875% 5/15/2027 | | | 2,236 | | | | 2,195 | |
J. M. Smucker Co. (The) 6.20% 11/15/2033 | | | 4,213 | | | | 4,597 | |
J. M. Smucker Co. (The) 6.50% 11/15/2043 | | | 1,086 | | | | 1,211 | |
J. M. Smucker Co. (The) 6.50% 11/15/2053 | | | 3,058 | | | | 3,531 | |
Kronos Acquisition Holdings, Inc. 7.00% 12/31/20275 | | | 5,000 | | | | 4,780 | |
MARB BondCo PLC 3.95% 1/29/20315 | | | 2,821 | | | | 2,293 | |
Minerva Luxembourg SA 8.875% 9/13/20335 | | | 10,745 | | | | 11,379 | |
NBM US Holdings, Inc. 6.625% 8/6/202911 | | | 3,667 | | | | 3,599 | |
Philip Morris International, Inc. 5.125% 11/17/2027 | | | 16,032 | | | | 16,328 | |
Philip Morris International, Inc. 5.625% 11/17/2029 | | | 7,731 | | | | 8,112 | |
Philip Morris International, Inc. 1.75% 11/1/2030 | | | 6,736 | | | | 5,556 | |
Philip Morris International, Inc. 5.75% 11/17/2032 | | | 10,007 | | | | 10,507 | |
Philip Morris International, Inc. 5.625% 9/7/2033 | | | 20,000 | | | | 20,899 | |
Post Holdings, Inc. 5.50% 12/15/20295 | | | 4,000 | | | | 3,858 | |
Post Holdings, Inc. 4.625% 4/15/20305 | | | 4,000 | | | | 3,684 | |
Post Holdings, Inc. 4.50% 9/15/20315 | | | 10,920 | | | | 9,801 | |
Reynolds American, Inc. 5.85% 8/15/2045 | | | 105 | | | | 98 | |
| | | | | | | 229,650 | |
| | | | | | | | |
Real estate 1.11% | | | | | | | | |
Boston Properties, LP 2.55% 4/1/2032 | | | 904 | | | | 720 | |
Boston Properties, LP 2.45% 10/1/2033 | | | 593 | | | | 452 | |
Boston Properties, LP 6.50% 1/15/2034 | | | 19,565 | | | | 20,661 | |
Corp. Inmobiliaria Vesta, SAB de CV 3.625% 5/13/20315 | | | 4,075 | | | | 3,504 | |
Crown Castle, Inc. 5.00% 1/11/2028 | | | 1,877 | | | | 1,871 | |
Crown Castle, Inc. 5.80% 3/1/2034 | | | 8,403 | | | | 8,703 | |
Equinix, Inc. 2.625% 11/18/2024 | | | 2,226 | | | | 2,169 | |
Equinix, Inc. 2.90% 11/18/2026 | | | 883 | | | | 839 | |
Equinix, Inc. 2.00% 5/15/2028 | | | 4,765 | | | | 4,254 | |
Equinix, Inc. 3.20% 11/18/2029 | | | 798 | | | | 734 | |
Equinix, Inc. 2.50% 5/15/2031 | | | 8,771 | | | | 7,451 | |
Equinix, Inc. 3.40% 2/15/2052 | | | 4,370 | | | | 3,205 | |
FibraSOMA 4.375% 7/22/20315 | | | 7,079 | | | | 5,371 | |
GLP Capital, LP 4.00% 1/15/2030 | | | 2,000 | | | | 1,827 | |
Highwoods Realty, LP 7.65% 2/1/2034 | | | 868 | | | | 937 | |
Howard Hughes Corp. (The) 5.375% 8/1/20285 | | | 2,135 | | | | 2,055 | |
Howard Hughes Corp. (The) 4.375% 2/1/20315 | | | 4,025 | | | | 3,498 | |
Hudson Pacific Properties, LP 4.65% 4/1/2029 | | | 182 | | | | 148 | |
Hudson Pacific Properties, LP 3.25% 1/15/2030 | | | 320 | | | | 235 | |
Iron Mountain, Inc. 5.00% 7/15/20285 | | | 4,000 | | | | 3,847 | |
American Funds Strategic Bond Fund | 23 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Corporate bonds, notes & loans (continued) | | | | | | | | |
Real estate (continued) | | | | | | | | |
Kennedy-Wilson, Inc. 4.75% 3/1/2029 | | USD | 2,325 | | | $ | 1,944 | |
Kennedy-Wilson, Inc. 5.00% 3/1/2031 | | | 2,300 | | | | 1,829 | |
Kilroy Realty, LP 2.65% 11/15/2033 | | | 1,513 | | | | 1,149 | |
Ladder Capital Finance Holdings LLLP 4.25% 2/1/20275 | | | 3,425 | | | | 3,231 | |
MPT Operating Partnership, LP 5.25% 8/1/2026 | | | 2,000 | | | | 1,790 | |
Public Storage Operating Co. 1.85% 5/1/2028 | | | 3,147 | | | | 2,829 | |
Public Storage Operating Co. 2.30% 5/1/2031 | | | 1,902 | | | | 1,636 | |
Public Storage Operating Co. 5.10% 8/1/2033 | | | 14,875 | | | | 15,410 | |
Public Storage Operating Co. 5.35% 8/1/2053 | | | 10,690 | | | | 11,179 | |
Service Properties Trust 8.625% 11/15/20315 | | | 5,145 | | | | 5,393 | |
Sun Communities Operating, LP 2.30% 11/1/2028 | | | 4,193 | | | | 3,672 | |
Sun Communities Operating, LP 2.70% 7/15/2031 | | | 14,919 | | | | 12,442 | |
Sun Communities Operating, LP 4.20% 4/15/2032 | | | 18,016 | | | | 16,451 | |
VICI Properties, LP 3.75% 2/15/20275 | | | 955 | | | | 902 | |
VICI Properties, LP 3.875% 2/15/20295 | | | 6,800 | | | | 6,252 | |
VICI Properties, LP 4.125% 8/15/20305 | | | 7,860 | | | | 7,168 | |
VICI Properties, LP 5.125% 5/15/2032 | | | 22,827 | | | | 22,277 | |
Vornado Realty, LP 2.15% 6/1/2026 | | | 934 | | | | 843 | |
WeWork Companies, LLC 6.00% PIK and 5.00% Cash 8/15/20275,9,12 | | | 16,031 | | | | 3,367 | |
WeWork Companies, LLC 8.00% PIK and 7.00% Cash 8/15/20275,9,12 | | | 12,775 | | | | 4,407 | |
XHR, LP 4.875% 6/1/20295 | | | 4,350 | | | | 4,009 | |
| | | | | | | 200,661 | |
| | | | | | | | |
Information technology 1.06% | | | | | | | | |
Analog Devices, Inc. 1.70% 10/1/2028 | | | 6,752 | | | | 5,993 | |
Analog Devices, Inc. 2.10% 10/1/2031 | | | 12,879 | | | | 10,967 | |
BMC Software, Inc., Term Loan, (1-month USD CME Term SOFR + 5.50%) 10.97% 2/27/20264,8 | | | 8,950 | | | | 8,958 | |
Broadcom, Inc. 4.75% 4/15/2029 | | | 6,000 | | | | 6,018 | |
Broadcom, Inc. 3.419% 4/15/20335 | | | 8,000 | | | | 7,030 | |
Broadcom, Inc. 3.469% 4/15/20345 | | | 10,000 | | | | 8,704 | |
Broadcom, Inc. 3.187% 11/15/20365 | | | 5,996 | | | | 4,862 | |
Broadcom, Inc. 3.50% 2/15/20415 | | | 6,686 | | | | 5,306 | |
Cloud Software Group, Inc. 9.00% 9/30/20295 | | | 14,175 | | | | 13,485 | |
CommScope, Inc. 7.125% 7/1/20285 | | | 2,162 | | | | 1,029 | |
Diebold Nixdorf, Inc., Term Loan, (3-month USD CME Term SOFR + 7.00%) 12.86% 8/11/20284,5,8 | | | 23,886 | | | | 24,633 | |
Entegris Escrow Corp. 4.75% 4/15/20295 | | | 9,885 | | | | 9,535 | |
Finastra USA, Inc., Term Loan, (3-month USD CME Term SOFR + 7.25%) 12.61% 9/13/20294,8,11 | | | 80 | | | | 79 | |
Finastra USA, Inc., Term Loan B, (3-month USD CME Term SOFR + 7.25%) 12.713% 9/13/20294,8,11 | | | 2,915 | | | | 2,871 | |
NCR Atleos Corp. 9.50% 4/1/20295 | | | 14,074 | | | | 14,966 | |
Oracle Corp. 3.60% 4/1/2050 | | | 5,000 | | | | 3,708 | |
Oracle Corp. 3.95% 3/25/2051 | | | 6,167 | | | | 4,838 | |
Roper Technologies, Inc. 1.75% 2/15/2031 | | | 23,000 | | | | 18,956 | |
SK hynix, Inc. 6.375% 1/17/20285 | | | 4,820 | | | | 4,978 | |
SK hynix, Inc. 2.375% 1/19/20315 | | | 2,979 | | | | 2,418 | |
SK hynix, Inc. 6.50% 1/17/2033 | | | 3,688 | | | | 3,897 | |
SK hynix, Inc. 6.50% 1/17/20335 | | | 1,312 | | | | 1,386 | |
Tibco Software, Inc., Term Loan A, (3-month USD CME Term SOFR + 4.50%) 9.948% 9/29/20284,8 | | | 10,907 | | | | 10,680 | |
UKG, Inc., Term Loan, (3-month USD CME Term SOFR + 5.25%) 10.764% 5/3/20274,8 | | | 3,075 | | | | 3,088 | |
Unisys Corp. 6.875% 11/1/20275 | | | 2,675 | | | | 2,411 | |
Wolfspeed, Inc. 9.875% 6/23/2030 (10.875% on 6/23/2026)6,7,11 | | | 10,655 | | | | 10,841 | |
| | | | | | | 191,637 | |
| | | | | | | | |
Total corporate bonds, notes & loans | | | | | | | 4,892,445 | |
| | | | | | | | |
U.S. Treasury bonds & notes 16.94% | | | | | | | | |
U.S. Treasury 14.13% | | | | | | | | |
U.S. Treasury 2.25% 4/30/2024 | | | 1,224 | | | | 1,212 | |
U.S. Treasury 3.25% 8/31/2024 | | | 165 | | | | 163 | |
U.S. Treasury 4.25% 9/30/2024 | | | 94 | | | | 94 | |
U.S. Treasury 4.375% 10/31/2024 | | | 2,004 | | | | 1,996 | |
U.S. Treasury 3.875% 4/30/2025 | | | 1,978 | | | | 1,961 | |
U.S. Treasury 4.00% 2/15/2026 | | | 6,003 | | | | 5,977 | |
U.S. Treasury 4.625% 3/15/2026 | | | 3,158 | | | | 3,186 | |
24 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
U.S. Treasury bonds & notes (continued) | | | | | | |
U.S. Treasury (continued) | | | | | | | | |
U.S. Treasury 4.125% 6/15/2026 | | USD | 408 | | | $ | 408 | |
U.S. Treasury 1.875% 6/30/2026 | | | 566 | | | | 537 | |
U.S. Treasury 0.875% 9/30/2026 | | | 2,093 | | | | 1,923 | |
U.S. Treasury 1.625% 9/30/2026 | | | 385 | | | | 361 | |
U.S. Treasury 4.75% 10/15/2026 | | | 3,268 | | | | 3,317 | |
U.S. Treasury 4.375% 12/15/2026 | | | 2,000 | | | | 2,020 | |
U.S. Treasury 1.75% 12/31/2026 | | | 24,924 | | | | 23,361 | |
U.S. Treasury 4.125% 10/31/2027 | | | 1,908 | | | | 1,921 | |
U.S. Treasury 3.625% 3/31/2028 | | | 6,311 | | | | 6,244 | |
U.S. Treasury 4.875% 10/31/2028 | | | 2,631 | | | | 2,747 | |
U.S. Treasury 3.125% 11/15/2028 | | | 205 | | | | 198 | |
U.S. Treasury 4.375% 11/30/2028 | | | 2,439 | | | | 2,496 | |
U.S. Treasury 1.875% 2/28/2029 | | | 47,310 | | | | 42,917 | |
U.S. Treasury 3.50% 1/31/203013 | | | 344,000 | | | | 336,662 | |
U.S. Treasury 1.375% 11/15/2031 | | | 4,248 | | | | 3,530 | |
U.S. Treasury 1.875% 2/15/2032 | | | 247,136 | | | | 212,595 | |
U.S. Treasury 2.875% 5/15/2032 | | | 155,367 | | | | 144,066 | |
U.S. Treasury 2.75% 8/15/2032 | | | 3,174 | | | | 2,909 | |
U.S. Treasury 4.125% 11/15/2032 | | | 17,130 | | | | 17,423 | |
U.S. Treasury 3.50% 2/15/203313 | | | 338,979 | | | | 328,915 | |
U.S. Treasury 3.875% 8/15/203313 | | | 331,284 | | | | 331,077 | |
U.S. Treasury 4.50% 11/15/2033 | | | 25,248 | | | | 26,520 | |
U.S. Treasury 4.375% 11/15/203913 | | | 209,700 | | | | 218,728 | |
U.S. Treasury 1.125% 8/15/2040 | | | 45,000 | | | | 28,795 | |
U.S. Treasury 1.875% 2/15/204113 | | | 268,000 | | | | 193,086 | |
U.S. Treasury 2.25% 5/15/2041 | | | 98,018 | | | | 74,838 | |
U.S. Treasury 1.75% 8/15/204113 | | | 447,578 | | | | 312,011 | |
U.S. Treasury 3.00% 5/15/2042 | | | 50,082 | | | | 42,457 | |
U.S. Treasury 3.25% 5/15/2042 | | | 36,720 | | | | 32,282 | |
U.S. Treasury 3.875% 2/15/2043 | | | 1,690 | | | | 1,615 | |
U.S. Treasury 4.375% 8/15/2043 | | | 1,867 | | | | 1,909 | |
U.S. Treasury 1.375% 8/15/2050 | | | 29,660 | | | | 16,577 | |
U.S. Treasury 1.625% 11/15/2050 | | | 66,000 | | | | 39,439 | |
U.S. Treasury 2.375% 5/15/2051 | | | 77,828 | | | | 55,714 | |
U.S. Treasury 3.625% 2/15/2053 | | | 15,719 | | | | 14,554 | |
U.S. Treasury 4.125% 8/15/2053 | | | 15,220 | | | | 15,426 | |
| | | | | | | 2,554,167 | |
| | | | | | | | |
U.S. Treasury inflation-protected securities 2.81% | | | | | | | | |
U.S. Treasury Inflation-Protected Security 0.375% 7/15/202514 | | | 50,340 | | | | 48,787 | |
U.S. Treasury Inflation-Protected Security 0.625% 7/15/203214 | | | 170,715 | | | | 156,204 | |
U.S. Treasury Inflation-Protected Security 0.125% 2/15/205014 | | | 3,904 | | | | 2,560 | |
U.S. Treasury Inflation-Protected Security 0.125% 2/15/205113,14 | | | 395,952 | | | | 246,693 | |
U.S. Treasury Inflation-Protected Security 0.125% 2/15/205214 | | | 86,227 | | | | 53,225 | |
| | | | | | | 507,469 | |
| | | | | | | | |
Total U.S. Treasury bonds & notes | | | | | | | 3,061,636 | |
| | | | | | | | |
Bonds & notes of governments & government agencies outside the U.S. 5.63% |
Angola (Republic of) 9.50% 11/12/2025 | | | 5,570 | | | | 5,481 | |
Angola (Republic of) 8.00% 11/26/2029 | | | 6,000 | | | | 5,346 | |
Argentine Republic 1.00% 7/9/2029 | | | 161 | | | | 65 | |
Argentine Republic 3.625% 7/9/2035 (4.125% on 7/9/2024)6 | | | 16,951 | | | | 5,858 | |
Brazil (Federative Republic of) 6.00% 8/15/204014 | | BRL | 55,670 | | | | 12,248 | |
Brazil (Federative Republic of) 6.00% 8/15/205014 | | | 1,025,272 | | | | 227,234 | |
Brazil (Federative Republic of) 6.00% 5/15/205514 | | | 9,160 | | | | 2,037 | |
Brazil (Federative Republic of) 6.00% 8/15/206014 | | | 55,670 | | | | 12,378 | |
Chile (Republic of) 4.34% 3/7/2042 | | USD | 3,565 | | | | 3,196 | |
Chile (Republic of) 3.10% 1/22/2061 | | | 21,959 | | | | 14,805 | |
Colombia (Republic of) 3.00% 1/30/2030 | | | 5,422 | | | | 4,589 | |
Colombia (Republic of) 3.125% 4/15/2031 | | | 3,297 | | | | 2,692 | |
Colombia (Republic of) 8.00% 4/20/2033 | | | 22,365 | | | | 24,434 | |
Colombia (Republic of) 7.50% 2/2/2034 | | | 7,660 | | | | 8,105 | |
Colombia (Republic of) 8.00% 11/14/2035 | | | 5,815 | | | | 6,373 | |
Colombia (Republic of) 5.625% 2/26/2044 | | | 200 | | | | 169 | |
Colombia (Republic of) 5.00% 6/15/2045 | | | 7,341 | | | | 5,721 | |
Colombia (Republic of) 5.20% 5/15/2049 | | | 1,279 | | | | 1,003 | |
American Funds Strategic Bond Fund | 25 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Bonds & notes of governments & government agencies outside the U.S. (continued) | | | | | | | | |
Egypt (Arab Republic of) 8.15% 11/20/2059 | | USD | 24,000 | | | $ | 14,816 | |
European Investment Bank 0.625% 10/21/2027 | | | 15,310 | | | | 13,498 | |
Gabonese Republic 7.00% 11/24/20315 | | | 10,000 | | | | 8,364 | |
Ghana (Republic of) 3.35% PIK and 5.00% Cash 2/16/202712 | | GHS | 21,135 | | | | 983 | |
Ghana (Republic of) 3.50% PIK and 5.00% Cash 2/15/202812 | | | 21,150 | | | | 850 | |
Ghana (Republic of) 3.65% PIK and 5.00% Cash 2/13/202912 | | | 20,399 | | | | 727 | |
Ghana (Republic of) 3.80% PIK and 5.00% Cash 2/12/203012 | | | 20,414 | | | | 661 | |
Ghana (Republic of) 3.95% PIK and 5.00% Cash 2/11/203112 | | | 19,353 | | | | 580 | |
Ghana (Republic of) 4.10% PIK and 5.00% Cash 2/10/203212 | | | 19,368 | | | | 549 | |
Ghana (Republic of) 4.25% PIK and 5.00% Cash 2/8/203312 | | | 19,382 | | | | 527 | |
Ghana (Republic of) 4.40% PIK and 5.00% Cash 2/7/203412 | | | 8,628 | | | | 228 | |
Ghana (Republic of) 4.55% PIK and 5.00% Cash 2/6/203512 | | | 8,635 | | | | 224 | |
Ghana (Republic of) 4.70% PIK and 5.00% Cash 2/5/203612 | | | 8,641 | | | | 222 | |
Ghana (Republic of) 4.85% PIK and 5.00% Cash 2/3/203712 | | | 8,647 | | | | 221 | |
Ghana (Republic of) 5.00% PIK and 5.00% Cash 2/2/203812 | | | 8,654 | | | | 221 | |
Greece (Hellenic Republic of) 3.45% 4/2/2024 | | EUR | 1,220 | | | | 1,347 | |
Greece (Hellenic Republic of) 3.375% 2/15/2025 | | | 1,480 | | | | 1,645 | |
India (Republic of) 7.88% 3/19/2030 | | INR | 333,000 | | | | 4,156 | |
India (Republic of) 7.61% 5/9/2030 | | | 367,000 | | | | 4,509 | |
Inter-American Development Bank 0.625% 7/15/2025 | | USD | 13,000 | | | | 12,252 | |
Israel (State of) 3.75% 2/28/2029 | | ILS | 148,960 | | | | 41,410 | |
Israel (State of) 1.30% 4/30/2032 | | | 775,347 | | | | 174,442 | |
Japan, Series 20, 0.10% 3/10/202514 | | JPY | 543,000 | | | | 3,949 | |
Japan Bank for International Cooperation 1.25% 1/21/2031 | | USD | 11,352 | | | | 9,227 | |
Mic Capital Management (Rsc) Seven, Ltd. 5.084% 5/22/20535 | | | 1,420 | | | | 1,401 | |
Mozambique (Republic of) 9.00% 9/15/2031 | | | 30,000 | | | | 25,629 | |
Oman (Sultanate of) 7.00% 1/25/20515 | | | 10,000 | | | | 10,820 | |
OMERS Finance Trust 3.50% 4/19/20325 | | | 20,000 | | | | 18,450 | |
OMERS Finance Trust 4.00% 4/19/20525 | | | 20,000 | | | | 16,462 | |
Panama (Republic of) 3.298% 1/19/2033 | | | 7,940 | | | | 6,292 | |
Panama (Republic of) 6.40% 2/14/2035 | | | 8,595 | | | | 8,411 | |
Panama (Republic of) 6.875% 1/31/2036 | | | 10,460 | | | | 10,463 | |
Panama (Republic of) 4.50% 4/16/2050 | | | 7,400 | | | | 5,153 | |
Panama (Republic of) 6.853% 3/28/2054 | | | 8,060 | | | | 7,562 | |
Panama (Republic of) 4.50% 4/1/2056 | | | 1,475 | | | | 994 | |
Panama (Republic of) 3.87% 7/23/2060 | | | 4,293 | | | | 2,582 | |
Panama (Republic of) 4.50% 1/19/2063 | | | 8,157 | | | | 5,357 | |
Peru (Republic of) 2.392% 1/23/2026 | | | 1,365 | | | | 1,301 | |
Peru (Republic of) 6.15% 8/12/2032 | | PEN | 254,420 | | | | 67,201 | |
Peru (Republic of) 3.00% 1/15/2034 | | USD | 7,055 | | | | 5,977 | |
Peru (Republic of) 2.78% 12/1/2060 | | | 17,695 | | | | 11,073 | |
Philippines (Republic of) 1.648% 6/10/2031 | | | 13,830 | | | | 11,401 | |
Philippines (Republic of) 2.65% 12/10/2045 | | | 7,941 | | | | 5,666 | |
Romania 3.50% 4/3/2034 | | EUR | 995 | | | | 936 | |
Saskatchewan (Province of) 3.25% 6/8/2027 | | USD | 8,047 | | | | 7,796 | |
Sharjah (Emirate of) 6.50% 11/23/20325 | | | 8,015 | | | | 8,432 | |
South Africa (Republic of) 5.875% 4/20/2032 | | | 15,000 | | | | 14,247 | |
Spain (Kingdom of) 1.25% 10/31/2030 | | EUR | 12,245 | | | | 12,313 | |
Ukraine 7.375% 9/25/20349 | | USD | 5,370 | | | | 1,276 | |
United Kingdom 0.125% 8/10/204114 | | GBP | 3,197 | | | | 3,675 | |
United Mexican States 5.00% 4/27/2051 | | USD | 3,290 | | | | 2,864 | |
United Mexican States 6.338% 5/4/2053 | | | 6,235 | | | | 6,363 | |
United Mexican States 3.75% 4/19/2071 | | | 13,080 | | | | 8,769 | |
United Mexican States, Series M20, 10.00% 12/5/2024 | | MXN | 1,060,000 | | | | 62,124 | |
United Mexican States, Series M, 7.50% 6/3/2027 | | | 60,000 | | | | 3,349 | |
United Mexican States, Series M, 8.00% 11/7/2047 | | | 496,456 | | | | 26,152 | |
| | | | | | | 1,017,833 | |
| | | | | | | | |
Asset-backed obligations 5.38% | | | | | | | | |
AB BSL CLO 2, Ltd., Series 2021-2, Class D, (3-month USD CME Term SOFR + 3.612%) 9.005% 4/15/20341,4,5 | | USD | 1,500 | | | | 1,452 | |
AB BSL CLO, Ltd., Series 2023-4, Class A, (3-month USD CME Term SOFR + 2.00%) 7.367% 4/20/20361,4,5 | | | 2,000 | | | | 2,007 | |
AB BSL CLO, Ltd., Series 2023-4, Class B, (3-month USD CME Term SOFR + 2.50%) 7.916% 4/20/20361,4,5 | | | 500 | | | | 501 | |
ACHV ABS Trust, Series 2023-2PL, Class A, 6.42% 5/20/20301,5 | | | 5 | | | | 5 | |
26 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Asset-backed obligations (continued) | | | | | | |
ACHV ABS Trust, Series 2023-2PL, Class B, 6.88% 5/20/20301,5 | | USD | 562 | | | $ | 563 | |
ACHV ABS Trust, Series 2023-3PL, Class A, 6.60% 8/19/20301,5 | | | 45 | | | | 45 | |
ACHV ABS Trust, Series 2023-3PL, Class B, 7.17% 8/19/20301,5 | | | 173 | | | | 173 | |
Affirm Asset Securitization Trust, Series 2022-X1, Class A, 1.75% 2/15/20271,5 | | | 51 | | | | 50 | |
Affirm Asset Securitization Trust, Series 2023-A, Class A, 6.61% 1/18/20281,5 | | | 450 | | | | 453 | |
AGL CLO, Ltd., Series 2022-18A, Class A1, (3-month USD CME Term SOFR + 1.32%) 6.732% 4/21/20311,4,5 | | | 14,513 | | | | 14,510 | |
AGL CLO, Ltd., Series 2023-24, Class A1, (3-month USD CME Term SOFR + 2.00%) 7.378% 7/25/20361,4,5 | | | 30,950 | | | | 31,164 | |
American Credit Acceptance Receivables Trust, Series 2022-3, Class B, 4.55% 10/13/20261,5 | | | 206 | | | | 205 | |
American Credit Acceptance Receivables Trust, Series 2022-4, Class B, 6.75% 10/13/20261,5 | | | 859 | | | | 860 | |
American Credit Acceptance Receivables Trust, Series 2021-3, Class C, 0.98% 11/15/20271,5 | | | 211 | | | | 210 | |
American Credit Acceptance Receivables Trust, Series 2022-2, Class C, 4.41% 6/13/20281,5 | | | 1,442 | | | | 1,434 | |
American Credit Acceptance Receivables Trust, Series 2022-3, Class C, 4.86% 10/13/20281,5 | | | 2,220 | | | | 2,205 | |
American Credit Acceptance Receivables Trust, Series 2022-3, Class D, 5.83% 10/13/20281,5 | | | 554 | | | | 551 | |
American Credit Acceptance Receivables Trust, Series 2022-4, Class C, 7.86% 2/15/20291,5 | | | 880 | | | | 891 | |
American Express Credit Account Master Trust, Series 2023-2, Class A, 4.80% 5/15/20301 | | | 1,045 | | | | 1,058 | |
American Express Credit Account Master Trust, Series 2023-4, Class A, 5.15% 9/16/20301 | | | 1,576 | | | | 1,622 | |
American Money Management Corp., Series 2016-18, Class BR, (3-month USD CME Term SOFR + 1.862%) 7.241% 5/26/20311,4,5 | | | 1,000 | | | | 998 | |
AmeriCredit Automobile Receivables Trust, Series 2020-3, Class D, 1.49% 9/18/20261 | | | 7,032 | | | | 6,652 | |
AmeriCredit Automobile Receivables Trust, Series 2023-2, Class B, 5.84% 7/18/20291 | | | 1,985 | | | | 2,019 | |
Anchorage Capital CLO, Ltd., Series 2019-11, Class AR, (3-month USD CME Term SOFR + 1.402%) 6.814% 7/22/20321,4,5 | | | 3,350 | | | | 3,344 | |
Apex Credit CLO, LLC, Series 2019-2, Class A1R, (3-month USD CME Term SOFR + 1.412%) 6.790% 10/25/20321,4,5 | | | 1,449 | | | | 1,447 | |
Apidos CLO, Ltd., Series 2023-45, Class D, (3-month USD CME Term SOFR + 5.20%) 10.58% 4/26/20361,4,5 | | | 800 | | | | 804 | |
Ares CLO, Ltd., Series 2021-61, Class A, (3-month USD CME Term SOFR + 1.412%) 6.827% 10/20/20341,4,5 | | | 1,050 | | | | 1,048 | |
ARES CLO, Ltd., Series 2018-50, Class D, (3-month USD CME Term SOFR + 3.162%) 8.555% 1/15/20321,4,5 | | | 500 | | | | 489 | |
Avis Budget Rental Car Funding (AESOP), LLC, Series 2019-2A, Class D, 3.04% 9/22/20251,5 | | | 10,000 | | | | 9,691 | |
Avis Budget Rental Car Funding (AESOP), LLC, Series 2019-3A, Class B, 2.65% 3/20/20261,5 | | | 425 | | | | 410 | |
Avis Budget Rental Car Funding (AESOP), LLC, Series 2022-5, Class A, 6.12% 4/20/20271,5 | | | 5,911 | | | | 6,009 | |
Avis Budget Rental Car Funding (AESOP), LLC, Series 2023-4A, Class C, 7.24% 6/20/20291,5 | | | 1,780 | | | | 1,822 | |
Babson CLO, Ltd., Series 2020-2, Class AR, (3-month USD CME Term SOFR + 1.272%) 6.665% 10/15/20331,4,5 | | | 4,400 | | | | 4,399 | |
Babson CLO, Ltd., Series 2021-3, Class A, (3-month USD CME Term SOFR + 1.412%) 6.807% 1/18/20351,4,5 | | | 1,500 | | | | 1,493 | |
Bain Capital Credit CLO, Ltd., Series 2023-3, Class D, (3-month USD CME Term SOFR + 5.25%) 10.621% 7/24/20361,4,5 | | | 500 | | | | 504 | |
Ballyrock, Ltd., CLO, Series 2018-1, Class C, (3-month USD CME Term SOFR + 3.412%) 8.827% 4/20/20311,4,5 | | | 3,275 | | | | 3,267 | |
Bankers Healthcare Group Securitization Trust, Series 2020-A, Class A, 2.56% 9/17/20311,5 | | | 128 | | | | 127 | |
Bankers Healthcare Group Securitization Trust, Series 2020-A, Class B, 3.59% 9/17/20311,5 | | | 7,500 | | | | 7,255 | |
Bankers Healthcare Group Securitization Trust, Series 2020-A, Class C, 5.17% 9/17/20311,5 | | | 7,500 | | | | 7,190 | |
Bankers Healthcare Group Securitization Trust, Series 2021-A, Class B, 2.79% 11/17/20331,5 | | | 4,000 | | | | 3,594 | |
Bankers Healthcare Group Securitization Trust, Series 2021-B, Class A, 0.90% 10/17/20341,5 | | | 1,044 | | | | 1,012 | |
American Funds Strategic Bond Fund | 27 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Asset-backed obligations (continued) | | | | | | | | |
Bankers Healthcare Group Securitization Trust, Series 2021-B, Class B, 1.67% 10/17/20341,5 | | USD | 7,800 | | | $ | 7,120 | |
Bankers Healthcare Group Securitization Trust, Series 2021-B, Class C, 2.24% 10/17/20341,5 | | | 8,400 | | | | 7,258 | |
Barings Middle Market CLO, Ltd., Series 2021-I, Class A1, (3-month USD CME Term SOFR + 0.262%) + 1.55%) 7.227% 7/20/20331,4,5 | | | 3,500 | | | | 3,460 | |
Battalion CLO, Ltd., Series 2021-17A, Class D, (3-month USD CME Term SOFR + 3.512%) 8.927% 3/9/20341,4,5 | | | 1,000 | | | | 972 | |
Battalion CLO, Ltd., Series 2017-11A, Class BR, (3-month USD CME Term SOFR + 1.982%) 7.380% 4/24/20341,4,5 | | | 1,000 | | | | 987 | |
Birch Grove CLO, Ltd., Series 2023-6, Class A1, (3-month USD CME Term SOFR + 2.20%) 7.489% 7/20/20351,4,5 | | | 41,465 | | | | 41,632 | |
Blackbird Capital II Aircraft Lease, Ltd. / Blackbird Capital II Aircraft Lease US, LLC, Series 2021-1, Class B, 3.446% 7/15/20461,5 | | | 1,497 | | | | 1,246 | |
Bluemountain CLO, Ltd., Series 2014-2, Class CR2, (3-month USD CME Term SOFR + 2.462%) 7.877% 10/20/20301,4,5 | | | 700 | | | | 683 | |
Bluemountain CLO, Ltd., Series 2018-2, Class D, (3-month USD CME Term SOFR + 3.412%) 8.791% 8/15/20311,4,5 | | | 250 | | | | 232 | |
Brex Commercial Charge Card Master Trust, Series 2022-1, Class A, 4.63% 7/15/20251,5 | | | 4,500 | | | | 4,461 | |
Carvana Auto Receivables Trust, Series 2023-P3, Class A3, 5.82% 8/10/20281,5 | | | 100 | | | | 101 | |
Carvana Auto Receivables Trust, Series 2023-P3, Class A4, 5.71% 7/10/20291,5 | | | 118 | | | | 120 | |
Castlelake Aircraft Securitization Trust, Series 2021-1, Class A, 2.868% 5/11/20371,5 | | | 7,487 | | | | 6,499 | |
Castlelake Aircraft Securitization Trust, Series 2017-1R, Class A, 2.741% 8/15/20411,5 | | | 2,218 | | | | 2,015 | |
CF Hippolyta, LLC, Series 2020-1, Class A1, 1.69% 7/15/20601,5 | | | 3,854 | | | | 3,565 | |
CF Hippolyta, LLC, Series 2020-1, Class A2, 1.99% 7/15/20601,5 | | | 600 | | | | 512 | |
CF Hippolyta, LLC, Series 2021-1, Class A1, 1.53% 3/15/20611,5 | | | 4,456 | | | | 3,988 | |
CF Hippolyta, LLC, Series 2022-1, Class A1, 5.97% 8/15/20621,5 | | | 17,067 | | | | 16,815 | |
CF Hippolyta, LLC, Series 2022-1, Class A2, 6.11% 8/15/20621,5 | | | 2,905 | | | | 2,845 | |
CFG Investments, Ltd., Series 2023-1, Class A, 8.56% 7/25/20341,5 | | | 1,530 | | | | 1,549 | |
CIFC Funding, Ltd., CLO, Series 2019-5A, Class A1R1, (3-month USD CME Term SOFR + 1.402%) 6.795% 1/15/20351,4,5 | | | 500 | | | | 498 | |
Citizens Auto Receivables Trust, Series 2023-2, Class A3, 5.83% 2/15/20281,5 | | | 504 | | | | 511 | |
Citizens Auto Receivables Trust, Series 2023-2, Class A4, 5.74% 10/15/20301,5 | | | 599 | | | | 612 | |
CLI Funding V, LLC, Series 2020-2A, Class B, 3.56% 9/15/20451,5 | | | 713 | | | | 647 | |
CLI Funding V, LLC, Series 2020-1A, Class B, 3.62% 9/18/20451,5 | | | 1,324 | | | | 1,207 | |
Cook Park CLO, Ltd., Series 2018-1A, Class B, (3-month USD CME Term SOFR + 1.662%) 7.064% 4/17/20301,4,5 | | | 500 | | | | 494 | |
CPS Auto Receivables Trust, Series 2020-B, Class D, 4.75% 4/15/20261,5 | | | 32 | | | | 32 | |
CPS Auto Receivables Trust, Series 2023-A, Class B, 5.47% 11/16/20261,5 | | | 164 | | | | 163 | |
CPS Auto Receivables Trust, Series 2022-B, Class D, 5.19% 8/15/20281,5 | | | 2,500 | | | | 2,445 | |
CPS Auto Receivables Trust, Series 2023-A, Class C, 5.54% 4/16/20291,5 | | | 351 | | | | 348 | |
CPS Auto Receivables Trust, Series 2023-A, Class D, 6.44% 4/16/20291,5 | | | 526 | | | | 526 | |
CPS Auto Receivables Trust, Series 2023-C, Class C, 6.27% 10/15/20291,5 | | | 689 | | | | 695 | |
CPS Auto Receivables Trust, Series 2022-C, Class B, 4.88% 4/15/20301,5 | | | 1,000 | | | | 991 | |
CPS Auto Receivables Trust, Series 2022-C, Class C, 5.28% 4/15/20301,5 | | | 1,130 | | | | 1,118 | |
CPS Auto Receivables Trust, Series 2022-C, Class D, 6.45% 4/15/20301,5 | | | 1,013 | | | | 1,018 | |
CPS Auto Trust, Series 2023-C, Class D, 6.77% 10/15/20291,5 | | | 622 | | | | 629 | |
Credit Acceptance Auto Loan Trust, Series 2022-1A, Class C, 5.70% 10/15/20321,5 | | | 2,000 | | | | 1,954 | |
Credit Acceptance Auto Loan Trust, Series 2022-1A, Class D, 6.63% 12/15/20321,5 | | | 3,000 | | | | 2,933 | |
Credit Acceptance Auto Loan Trust, Series 2023-1, Class B, 7.02% 5/16/20331,5 | | | 2,000 | | | | 2,023 | |
Credit Acceptance Auto Loan Trust, Series 2023-1, Class C, 7.71% 7/15/20331,5 | | | 3,000 | | | | 3,058 | |
Credit Acceptance Auto Loan Trust, Series 2023-3, Class B, 7.09% 10/17/20331,5 | | | 212 | | | | 215 | |
Credit Acceptance Auto Loan Trust, Series 2023-3, Class C, 7.62% 12/15/20331,5 | | | 245 | | | | 249 | |
Diameter Capital CLO, Series 2023-5, Class A1, (3-month USD CME Term SOFR + 1.85%) 7.164% 10/15/20361,4,5 | | | 1,667 | | | | 1,671 | |
Diameter Capital CLO, Series 2023-5, Class A2, | | | | | | | | |
(3-month USD CME Term SOFR + 2.40%) 7.714% 10/15/20361,4,5 | | | 1,714 | | | | 1,718 | |
Drive Auto Receivables Trust, Series 2020-1, Class D, 2.70% 5/17/20271 | | | 3,301 | | | | 3,275 | |
DriveTime Auto Owner Trust, Series 2020-2A, Class C, 3.28% 3/16/20261,5 | | | 37 | | | | 37 | |
DriveTime Auto Owner Trust, Series 2020-2A, Class D, 4.73% 3/16/20261,5 | | | 200 | | | | 199 | |
DriveTime Auto Owner Trust, Series 2023-1, Class C, 5.55% 10/16/20281,5 | | | 400 | | | | 396 | |
DriveTime Auto Owner Trust, Series 2023-1, Class D, 6.44% 11/15/20281,5 | | | 1,125 | | | | 1,126 | |
DriveTime Auto Owner Trust, Series 2023-3, Class C, 6.40% 5/15/20291,5 | | | 524 | | | | 530 | |
DriveTime Auto Owner Trust, Series 2023-3, Class D, 7.12% 5/15/20291,5 | | | 541 | | | | 550 | |
Dryden Senior Loan Fund, CLO, Series 2020-83, Class A, (3-month USD CME Term SOFR + 1.482%) 6.877% 1/18/20321,4,5 | | | 700 | | | | 700 | |
28 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Asset-backed obligations (continued) | | | | | | | | |
Dryden Senior Loan Fund, CLO, Series 2022-98, Class D, (3-month USD CME Term SOFR + 3.10%) 8.516% 4/20/20351,4,5 | | USD | 300 | | | $ | 285 | |
Dryden Senior Loan Fund, CLO, Series 2023-113, Class DR, (3-month USD CME Term SOFR + 4.40%) 9.816% 10/20/20351,4,5 | | | 1,800 | | | | 1,800 | |
EDvestinU Private Education Loan, LLC, Series 2021-A, Class A, 1.80% 11/25/20451,5 | | | 3,072 | | | | 2,717 | |
Elmwood CLO II, Ltd., Series 2019-2, Class AR, (3-month USD CME Term SOFR + 1.412%) 6.827% 4/20/20341,4,5 | | | 1,800 | | | | 1,801 | |
Elmwood CLO X, Ltd., Series 2021-3, Class A, (3-month USD CME Term SOFR + 1.302%) 6.717% 10/20/20341,4,5 | | | 1,000 | | | | 1,000 | |
Exeter Automobile Receivables Trust, Series 2022-6, Class A2, 5.73% 11/17/20251 | | | 5 | | | | 5 | |
Exeter Automobile Receivables Trust, Series 2020-1A, Class D, 2.73% 12/15/20251,5 | | | 2,231 | | | | 2,202 | |
Exeter Automobile Receivables Trust, Series 2020-2, Class D, 4.73% 4/15/20261,5 | | | 247 | | | | 246 | |
Exeter Automobile Receivables Trust, Series 2019-3, Class E, 4.00% 8/17/20261,5 | | | 3,595 | | | | 3,567 | |
Exeter Automobile Receivables Trust, Series 2022-4A, Class B, 4.57% 1/15/20271 | | | 555 | | | | 552 | |
Exeter Automobile Receivables Trust, Series 2023-1, Class B, 5.72% 4/15/20271 | | | 616 | | | | 615 | |
Exeter Automobile Receivables Trust, Series 2022-6, Class B, 6.03% 8/16/20271 | | | 286 | | | | 287 | |
Exeter Automobile Receivables Trust, Series 2023-3, Class B, 6.11% 9/15/20271 | | | 227 | | | | 228 | |
Exeter Automobile Receivables Trust, Series 2023-4, Class B, 6.31% 10/15/20271 | | | 695 | | | | 700 | |
Exeter Automobile Receivables Trust, Series 2022-6, Class C, 6.32% 5/15/20281 | | | 1,422 | | | | 1,430 | |
Exeter Automobile Receivables Trust, Series 2023-3, Class C, 6.21% 6/15/20281 | | | 125 | | | | 126 | |
Exeter Automobile Receivables Trust, Series 2022-2, Class C, 3.85% 7/17/20281 | | | 2,275 | | | | 2,231 | |
Exeter Automobile Receivables Trust, Series 2022-2A, Class D, 4.56% 7/17/20281 | | | 1,165 | | | | 1,131 | |
Exeter Automobile Receivables Trust, Series 2023-4, Class C, 6.51% 8/15/20281 | | | 695 | | | | 704 | |
Exeter Automobile Receivables Trust, Series 2022-4A, Class C, 4.92% 12/15/20281 | | | 517 | | | | 511 | |
Exeter Automobile Receivables Trust, Series 2022-4A, Class D, 5.98% 12/15/20281 | | | 1,498 | | | | 1,485 | |
Exeter Automobile Receivables Trust, Series 2022-6, Class D, 8.03% 4/6/20291 | | | 430 | | | | 447 | |
Exeter Automobile Receivables Trust, Series 2023-3, Class D, 6.68% 4/16/20291 | | | 226 | | | | 228 | |
Exeter Automobile Receivables Trust, Series 2023-1, Class D, 6.69% 6/15/20291 | | | 725 | | | | 731 | |
Exeter Automobile Receivables Trust, Series 2023-4, Class D, 6.95% 12/17/20291 | | | 991 | | | | 1,011 | |
Exeter Automobile Receivables Trust, Series 2023-1, Class E, 12.07% 9/16/20301,5 | | | 6,737 | | | | 7,399 | |
Exeter Automobile Receivables Trust, Series 2023-2, Class E, 9.75% 11/15/20301,5 | | | 1,697 | | | | 1,757 | |
Exeter Automobile Receivables Trust, Series 2023-3, Class E, 9.98% 1/15/20311,5 | | | 2,028 | | | | 2,101 | |
Exeter Automobile Receivables Trust, Series 2023-4, Class E, 9.57% 2/18/20311,5 | | | 2,408 | | | | 2,473 | |
Exeter Automobile Receivables Trust, Series 2023-5, Class E, 9.58% 6/16/20311,5 | | | 4,052 | | | | 4,176 | |
First National Master Note Trust, Series 2023-1, Class A, 5.13% 4/16/20291 | | | 414 | | | | 416 | |
FirstKey Homes Trust, Series 2020-SFR2, Class A, 1.266% 10/19/20371,5 | | | 10,333 | | | | 9,583 | |
Flagship Credit Auto Trust, Series 2023-3, Class A3, 5.44% 4/17/20281,5 | | | 57 | | | | 57 | |
Flagship Credit Auto Trust, Series 2023-3, Class B, 5.64% 7/16/20291,5 | | | 214 | | | | 216 | |
Flagship Credit Auto Trust, Series 2023-3, Class C, 6.01% 7/16/20291,5 | | | 99 | | | | 99 | |
Flagship Credit Auto Trust, Series 2023-3, Class D, 6.58% 8/15/20291,5 | | | 67 | | | | 67 | |
Flagship Credit Auto Trust, Series 2023-3, Class E, 9.74% 6/17/20301,5 | | | 671 | | | | 664 | |
Ford Credit Auto Owner Trust, Series 2018-1, Class A, 3.52% 7/15/20301,5 | | | 2,467 | | | | 2,465 | |
Ford Credit Floorplan Master Owner Trust, Series 2023-1, Class D, 6.62% 5/15/20281,5 | | | 2,918 | | | | 2,909 | |
GCI Funding I, LLC, Series 2021-1, Class A, 2.38% 6/18/20461,5 | | | 3,927 | | | | 3,457 | |
GCI Funding I, LLC, Series 2021-1, Class B, 3.04% 6/18/20461,5 | | | 223 | | | | 187 | |
Genesis Sales Finance Master Trust, Series 2021-A, Class D, 2.09% 12/21/20261,5 | | | 2,000 | | | | 1,788 | |
Genesis Sales Finance Master Trust, Series 2021-A, Class E, 3.77% 12/21/20261,5 | | | 6,000 | | | | 5,202 | |
Gilbert Park CLO, Ltd., Series 2017-1, Class A, (3-month USD CME Term SOFR + 1.452%) 6.845% 10/15/20301,4,5 | | | 425 | | | | 425 | |
Global SC Finance V SRL, Series 2019-1A, Class B, 4.81% 9/17/20391,5 | | | 1,493 | | | | 1,416 | |
Global SC Finance V SRL, Series 2020-1A, Class A, 2.17% 10/17/20401,5 | | | 2,909 | | | | 2,680 | |
Global SC Finance V SRL, Series 2020-1A, Class B, 3.55% 10/17/20401,5 | | | 799 | | | | 740 | |
GLS Auto Receivables Trust, Series 2023-3, Class B, 5.89% 1/18/20281,5 | | | 989 | | | | 994 | |
GLS Auto Receivables Trust, Series 2023-3, Class C, 6.01% 5/15/20291,5 | | | 122 | | | | 123 | |
GLS Auto Receivables Trust, Series 2023-3, Class D, 6.44% 5/15/20291,5 | | | 110 | | | | 111 | |
GLS Auto Receivables Trust, Series 2023-3, Class E, 9.27% 8/15/20301,5 | | | 1,900 | | | | 1,939 | |
GLS Auto Receivables Trust, Series 2023-4, Class E, 9.72% 8/15/20301,5 | | | 1,430 | | | | 1,468 | |
GM Financial Automobile Leasing Trust, Series 2023-3, Class A3, 5.38% 11/20/20261 | | | 82 | | | | 83 | |
GM Financial Automobile Leasing Trust, Series 2023-3, Class A4, 5.44% 8/20/20271 | | | 69 | | | | 70 | |
GMF Floorplan Owner Revolving Trust, Series 2023-1, Class A, 5.34% 6/17/20301,5 | | | 615 | | | | 629 | |
GoldenTree Loan Opportunities XI, Ltd., CLO, Series 2015-11A, Class AR2, (3-month USD CME Term SOFR + 1.332%) 6.727% 1/18/20311,4,5 | | | 4,389 | | | | 4,390 | |
Golub Capital Partners CLO, Ltd., Series 2014-21, Class AR, (3-month USD CME Term SOFR + 1.732%) 7.11% 1/25/20311,4,5 | | | 886 | | | | 886 | |
Golub Capital Partners CLO, Ltd., Series 2021-57, Class A1, (3-month USD CME Term SOFR + 1.752%) 7.130% 10/25/20341,4,5 | | | 3,420 | | | | 3,379 | |
American Funds Strategic Bond Fund | 29 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Asset-backed obligations (continued) | | | | | | | | |
Greywolf CLO, Ltd., Series 2018-1, Class A1, (3-month USD CME Term SOFR + 1.29%) 6.671% 4/26/20311,4,5 | | USD | 300 | | | $ | 300 | |
Greywolf CLO, Ltd., Series 2013-1A, Class B1RR, ((3-month USD CME Term SOFR + 2.60%) + 2.30%) 7.955% 4/15/20341,4,5 | | | 500 | | | | 491 | |
HalseyPoint CLO, Ltd., Series 2023-7, Class B, (3-month USD CME Term SOFR + 2.95%) 8.209% 7/20/20361,4,5 | | | 1,500 | | | | 1,503 | |
Harbor Park CLO, Ltd., Series 2018-1, Class D, (3-month USD CME Term SOFR + 3.162%) 8.577% 1/20/20311,4,5 | | | 400 | | | | 391 | |
Hayfin Kingsland XI, Ltd., Series 2019-2, Class CR, (3-month USD CME Term SOFR + 2.712%) 8.127% 10/20/20341,4,5 | | | 295 | | | | 288 | |
Hertz Vehicle Financing III, LLC, Series 2021-A, Class B, 9.44% 6/25/20251,5,7 | | | 20,116 | | | | 20,116 | |
Hertz Vehicle Financing III, LLC, Series 2021-1A, Class B, 1.56% 12/26/20251,5 | | | 3,660 | | | | 3,527 | |
Hertz Vehicle Financing III, LLC, Series 2021-1A, Class C, 2.05% 12/26/20251,5 | | | 2,336 | | | | 2,249 | |
Hertz Vehicle Financing III, LLC, Series 2022-1A, Class C, 2.63% 6/25/20261,5 | | | 3,493 | | | | 3,313 | |
Hertz Vehicle Financing III, LLC, Series 2023-1, Class 1D, 9.13% 6/25/20271,5 | | | 4,450 | | | | 4,479 | |
Hertz Vehicle Financing III, LLC, Series 2021-2A, Class A, 1.68% 12/27/20271,5 | | | 10,573 | | | | 9,590 | |
Hertz Vehicle Financing III, LLC, Series 2021-2A, Class B, 2.12% 12/27/20271,5 | | | 3,950 | | | | 3,573 | |
Hertz Vehicle Financing III, LLC, Series 2021-2A, Class C, 2.52% 12/27/20271,5 | | | 2,477 | | | | 2,223 | |
Hertz Vehicle Financing III, LLC, Series 2023-3, Class B, 6.53% 2/25/20281,5 | | | 275 | | | | 280 | |
Hertz Vehicle Financing III, LLC, Series 2023-3, Class C, 7.26% 2/25/20281,5 | | | 853 | | | | 867 | |
Hertz Vehicle Financing III, LLC, Series 2023-3, Class D, 9.43% 2/25/20281,5 | | | 1,342 | | | | 1,360 | |
Hertz Vehicle Financing III, LLC, Series 2022-2A, Class C, 2.95% 6/26/20281,5 | | | 6,036 | | | | 5,401 | |
Hertz Vehicle Financing III, LLC, Series 2022-2, Class D, 5.16% 6/26/20281,5 | | | 14,209 | | | | 12,778 | |
Hertz Vehicle Financing III, LLC, Series 2022-5, Class D, 6.78% 9/25/20281,5 | | | 10,701 | | | | 10,069 | |
Hertz Vehicle Financing III, LLC, Series 2023-2, Class C, 7.13% 9/25/20291,5 | | | 1,806 | | | | 1,841 | |
Hertz Vehicle Financing III, LLC, Series 2023-4, Class A, 6.15% 3/25/20301,5 | | | 490 | | | | 509 | |
Hertz Vehicle Financing III, LLC, Series 2023-4, Class B, 6.73% 3/25/20301,5 | | | 315 | | | | 326 | |
Hertz Vehicle Financing III, LLC, Series 2023-4, Class C, 7.51% 3/25/20301,5 | | | 2,669 | | | | 2,773 | |
Hertz Vehicle Financing III, LLC, Series 2023-4, Class D, 9.44% 3/25/20301,5 | | | 3,442 | | | | 3,531 | |
HPS Loan Management 6-2015, Ltd., Series 6A-2015, Class A1R, (3-month USD CME Term SOFR + 1.262%) 6.654% 2/5/20311,4,5 | | | 689 | | | | 689 | |
Jamestown CLO, Ltd., Series 2018-11, Class A2, (3-month USD CME Term SOFR + 1.962%) 7.355% 7/14/20311,4,5 | | | 500 | | | | 495 | |
Jamestown CLO, Ltd., Series 2019-14, Class A2R, (3-month USD CME Term SOFR + 2.012%) 7.427% 10/20/20341,4,5 | | | 1,700 | | | | 1,703 | |
KKR Static CLO I, Ltd., Series 2022-1A, Class B, (3-month USD CME Term SOFR + 2.60%) 8.016% 7/20/20311,4,5 | | | 9,200 | | | | 9,200 | |
LAD Auto Receivables Trust, Series 2023-1, Class A2, 5.68% 10/15/20261,5 | | | 264 | | | | 264 | |
LAD Auto Receivables Trust, Series 2023-1, Class A3, 5.48% 6/15/20271,5 | | | 550 | | | | 550 | |
LAD Auto Receivables Trust, Series 2023-2, Class A2, 5.93% 6/15/20271,5 | | | 23,622 | | | | 23,643 | |
LAD Auto Receivables Trust, Series 2023-1, Class C, 6.18% 12/15/20271,5 | | | 1,575 | | | | 1,584 | |
LAD Auto Receivables Trust, Series 2023-2, Class B, 5.45% 4/15/20281,5 | | | 510 | | | | 510 | |
LAD Auto Receivables Trust, Series 2023-3, Class B, 6.09% 6/15/20281,5 | | | 586 | | | | 595 | |
LAD Auto Receivables Trust, Series 2023-2, Class C, 5.58% 9/15/20281,5 | | | 1,127 | | | | 1,125 | |
LAD Auto Receivables Trust, Series 2023-3, Class C, 6.43% 12/15/20281,5 | | | 493 | | | | 502 | |
LAD Auto Receivables Trust, Series 2022-1, Class C, 6.85% 4/15/20301,5 | | | 1,771 | | | | 1,778 | |
LAD Auto Receivables Trust, Series 2023-1, Class D, 7.30% 6/17/20301,5 | | | 219 | | | | 223 | |
LAD Auto Receivables Trust, Series 2023-3, Class D, 6.92% 12/16/20301,5 | | | 334 | | | | 340 | |
LAD Auto Receivables Trust, Series 2023-2, Class D, 6.30% 2/15/20311,5 | | | 1,712 | | | | 1,705 | |
Logan CLO II, Ltd., Series 21-2, Class A, (3-month USD CME Term SOFR + 1.412%) 6.827% 1/20/20351,4,5 | | | 1,700 | | | | 1,697 | |
Marathon CLO, Ltd., Series 2017-10, Class A1AR, (3-month USD CME Term SOFR + 1.262%) 6.641% 11/15/20291,4,11 | | | 164 | | | | 164 | |
Marble Point CLO XXIII, Ltd., Series 2021-4, Class C1, (3-month USD CME Term SOFR + 2.862%) 8.274% 1/22/20351,4,5 | | | 435 | | | | 429 | |
Marble Point CLO, Ltd., Series 2019-1, Class CR, (3-month USD CME Term SOFR + 2.612%) 8.024% 7/23/20321,4,5 | | | 1,600 | | | | 1,575 | |
Marble Point CLO, Ltd., Series 2020-1, Class D, (3-month USD CME Term SOFR + 4.012%) 9.427% 4/20/20331,4,5 | | | 1,721 | | | | 1,666 | |
Marble Point CLO, Ltd., Series 2019-2, Class D1R, (3-month USD CME Term SOFR + 3.662%) 9.058% 11/16/20341,4,5 | | | 1,000 | | | | 959 | |
MidOcean Credit CLO, Series 2017-7, Class A2R, (3-month USD CME Term SOFR + 1.712%) 7.105% 7/15/20291,4,5 | | | 4,000 | | | | 3,991 | |
MidOcean Credit CLO, Series 2023-12, Class A1, (3-month USD CME Term SOFR + 2.00%) 7.395% 4/18/20341,4,5 | | | 1,500 | | | | 1,502 | |
MidOcean Credit CLO, Series 2023-12, Class B, (3-month USD CME Term SOFR + 2.55%) 7.945% 4/18/20341,4,5 | | | 500 | | | | 500 | |
30 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Asset-backed obligations (continued) | | | | | | |
Mission Lane Credit Card Master Trust, Series 2022-A, Class A, 6.92% 9/15/20271,5 | | USD | 34,067 | | | $ | 33,884 | |
Mission Lane Credit Card Master Trust, Series 2022-A, Class B, 9.20% 9/15/20271,5 | | | 400 | | | | 397 | |
Mission Lane Credit Card Master Trust, Series 2022-A, Class C, 11.82% 9/15/20271,5 | | | 2,400 | | | | 2,372 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class A1, 8.25% 1/15/20281,7,11 | | | 16,102 | | | | 16,147 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class A2, 8.73% 1/15/20281,7,11 | | | 2,605 | | | | 2,612 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class B, 10.42% 1/15/20281,7,11 | | | 8,615 | | | | 8,711 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class C, 12.09% 1/15/20281,7,11 | | | 12,000 | | | | 12,200 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class D, 14.45% 1/15/20281,7,11 | | | 5,000 | | | | 5,070 | |
Mission Lane Credit Card Master Trust, Series 2023-A, Class B, 8.15% 7/17/20281,5 | | | 1,639 | | | | 1,641 | |
Mission Lane Credit Card Master Trust, Series 2023-A, Class D, 11.95% 7/17/20281,5 | | | 7,000 | | | | 7,020 | |
Mission Lane Credit Card Master Trust, Series 2023-B, Class D, 11.97% 11/15/20281,5 | | | 5,000 | | | | 5,069 | |
Mission Lane Credit Card Master Trust, Series 2023-B, Class E, 15.56% 11/15/20281,5 | | | 5,000 | | | | 5,050 | |
Navient Student Loan Trust, Series 2021-FA, Class A, 1.11% 2/18/20701,5 | | | 706 | | | | 602 | |
Navigator Aircraft ABS, Ltd., Series 2021-1, Class A, 2.771% 11/15/20461,5 | | | 5,854 | | | | 5,120 | |
Navigator Aircraft ABS, Ltd., Series 2021-1, Class B, 3.571% 11/15/20461,5 | | | 3,989 | | | | 3,256 | |
Nelnet Student Loan Trust, Series 2021-A, Class APT1, 1.36% 4/20/20621,5 | | | 64 | | | | 58 | |
Nelnet Student Loan Trust, Series 2021-CA, Class C, 3.36% 4/20/20621,5 | | | 5,313 | | | | 4,302 | |
Nelnet Student Loan Trust, Series 2021-CA, Class D, 4.44% 4/20/20621,5 | | | 11,333 | | | | 9,357 | |
Neuberger Berman CLO, Ltd., Series 2018-29, Class C, (3-month USD CME Term SOFR + 2.412%) 7.808% 10/19/20311,4,5 | | | 500 | | | | 496 | |
Neuberger Berman CLO, Ltd., Series 2015-20A, Class ARR, (3-month USD CME Term SOFR + 1.422%) 6.815% 7/15/20341,4,5 | | | 1,000 | | | | 999 | |
New Economy Assets Phase 1 Issuer, LLC, Series 2021-1, Class A1, 1.91% 10/20/20611,5 | | | 42,939 | | | | 37,645 | |
Oak Hill Credit Partners, CLO, Series 2023-15, Class B1, (3-month USD CME Term SOFR + 2.50%) 7.619% 4/20/20351,4,5 | | | 250 | | | | 251 | |
Oaktree CLO, Ltd., Series 2019-1, Class A1R, (3-month USD CME Term SOFR + 1.372%) 6.784% 4/22/20301,4,5 | | | 2,600 | | | | 2,596 | |
Ocean Trails CLO, Series 2020-10, Class AR, (3-month USD CME Term SOFR + 1.22%) 6.875% 10/15/20341,4,5 | | | 750 | | | | 747 | |
OCP CLO, Ltd., Series 2018-15A, Class A1, (3-month USD CME Term SOFR + 1.362%) 6.777% 7/20/20311,4,5 | | | 5,049 | | | | 5,048 | |
OCP CLO, Ltd., Series 2019-16A, Class AR, (3-month USD CME Term SOFR + 1.262%) 6.668% 4/10/20331,4,5 | | | 3,500 | | | | 3,489 | |
OCP CLO, Ltd., Series 2023-28, Class D, (3-month USD CME Term SOFR + 5.35%) 10.77% 7/16/20361,4,5 | | | 500 | | | | 509 | |
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class A, 1.59% 5/17/20271,5 | | | 3,712 | | | | 3,632 | |
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class B, 2.28% 5/17/20271,5 | | | 4,316 | | | | 4,214 | |
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class C, 2.97% 5/17/20271,5 | | | 1,350 | | | | 1,298 | |
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class D, 4.94% 5/17/20271,5 | | | 1,350 | | | | 1,292 | |
OnDeck Asset Securitization Trust, LLC, Series 2023-1A, Class B, 8.25% 8/19/20301,5 | | | 1,122 | | | | 1,133 | |
Oportun Funding, LLC, Series 2021-B, Class A, 1.47% 5/8/20311,5 | | | 3,866 | | | | 3,613 | |
Oportun Funding, LLC, Series 2021-B, Class B, 1.96% 5/8/20311,5 | | | 6,202 | | | | 5,743 | |
Oportun Funding, LLC, Series 2022-A, Class B, 5.25% 6/9/20311,5 | | | 3,500 | | | | 3,333 | |
Orion CLO, Ltd., Series 2023-1, Class C, (3-month USD CME Term SOFR + 3.25%) 8.681% 10/25/20361,4,5 | | | 1,400 | | | | 1,403 | |
Orion CLO, Ltd., Series 2023-1, Class D, (3-month USD CME Term SOFR + 5.15%) 10.584% 10/25/20361,4,5 | | | 1,703 | | | | 1,713 | |
Palmer Square Loan Funding, CLO, Series 2022-1A, Class A1, (3-month USD CME Term SOFR + 1.05%) 6.444% 4/15/20301,4,5 | | | 1,132 | | | | 1,128 | |
Palmer Square Loan Funding, CLO, Series 2023-1, Class C, (3-month USD CME Term SOFR + 4.75%) 9.862% 7/20/20311,4,5 | | | 1,297 | | | | 1,306 | |
Park Avenue Institutional Advisers CLO, Series 2017-AR, Class A2R, (3-month USD CME Term SOFR + 1.812%) 7.189% 2/14/20341,4,5 | | | 1,000 | | | | 981 | |
PFS Financing Corp., Series 2022-D, Class A, 4.27% 8/16/20271,5 | | | 7,728 | | | | 7,596 | |
PFS Financing Corp., Series 2023-D, Class A, (30-day Average USD-SOFR + 1.15%) 6.488% 8/16/20271,4,5 | | | 961 | | | | 962 | |
PFS Financing Corp., Series 2023-B, Class A, 5.27% 5/15/20281,5 | | | 561 | | | | 564 | |
PFS Financing Corp., Series 2023-C, Class A, 5.52% 10/16/20281,5 | | | 627 | | | | 635 | |
Pikes Peak CLO, Series 2023-14, Class A1, (3-month USD CME Term SOFR + 1.95%) 7.366% 4/20/20361,4,5 | | | 3,000 | | | | 3,018 | |
Pikes Peak CLO, Series 2023-14, Class C, (3-month USD CME Term SOFR + 3.30%) 8.716% 4/20/20361,4,5 | | | 214 | | | | 215 | |
Pikes Peak CLO, Series 2023-14, Class D, (3-month USD CME Term SOFR + 5.45%) 10.866% 4/20/20361,4,5 | | | 500 | | | | 503 | |
Pikes Peak CLO, Series 2018-1, Class D, (3-month USD CME Term SOFR + 3.412%) 8.810% 7/24/20311,4,5 | | | 325 | | | | 317 | |
American Funds Strategic Bond Fund | 31 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Asset-backed obligations (continued) | | | | | | |
Prestige Auto Receivables Trust, Series 2023-1, Class D, 6.33% 4/16/20291,5 | | USD | 1,366 | | | $ | 1,361 | |
Prodigy Finance DAC, Series 2021-1A, Class A, (1-month USD CME Term SOFR + 1.364%) 6.72% 7/25/20511,4,5 | | | 767 | | | | 761 | |
RAD CLO, Ltd., Series 2019-5, Class AR, (3-month USD CME Term SOFR + 1.382%) 6.780% 7/24/20321,4,5 | | | 1,950 | | | | 1,947 | |
RAD CLO, Ltd., Series 2019-6A, Class A1, (3-month USD CME Term SOFR + 1.642%) 7.057% 1/20/20331,4,5 | | | 250 | | | | 250 | |
RAD CLO, Ltd., Series 2023-20, Class D, (3-month USD CME Term SOFR + 5.00%) 10.406% 7/20/20361,4,5 | | | 870 | | | | 872 | |
Reach Financial, LLC, Series 2023-1, Class A, 7.05% 2/18/20311,5 | | | 255 | | | | 256 | |
Regatta XIV Funding, Ltd., CLO, Series 2019-1A, Class AR, (3-month USD CME Term SOFR + 1.362%) 6.755% 10/15/20321,4,5 | | | 1,500 | | | | 1,499 | |
Regatta XXIII Funding, Ltd., Series 2021-4, Class A1, (3-month USD CME Term SOFR + 1.412%) 6.827% 1/20/20351,4,5 | | | 800 | | | | 798 | |
Research-Driven Pagaya Motor Asset Trust I, Series 2022-3, Class A, 5.38% 11/25/20301,5 | | | 8,898 | | | | 8,810 | |
Research-Driven Pagaya Motor Asset Trust I, Series 2022-3, Class B, 6.58% 11/25/20301,5 | | | 7,757 | | | | 7,653 | |
Rockford Tower CLO, Ltd., Series 2021-1, Class D, (3-month USD CME Term SOFR + 3.262%) 8.677% 7/20/20341,4,5 | | | 1,191 | | | | 1,149 | |
Romark CLO, Ltd., Series 2018-1, Class A1, (3-month USD CME Term SOFR + 1.292%) 6.707% 4/20/20311,4,5 | | | 309 | | | | 309 | |
RRAM, CLO, Series 2021-14, Class A1, (3-month USD CME Term SOFR + 1.382%) 6.775% 4/15/20361,4,5 | | | 1,500 | | | | 1,496 | |
Santander Drive Auto Receivables Trust, Series 2022-7, Class A2, 5.81% 1/15/20261 | | | 3,461 | | | | 3,461 | |
Santander Drive Auto Receivables Trust, Series 2020-4, Class D, 1.48% 1/15/20271 | | | 10,840 | | | | 10,603 | |
Santander Drive Auto Receivables Trust, Series 2022-5, Class B, 4.43% 3/15/20271 | | | 3,288 | | | | 3,250 | |
Santander Drive Auto Receivables Trust, Series 2022-7, Class A3, 5.75% 4/15/20271 | | | 6,685 | | | | 6,688 | |
Santander Drive Auto Receivables Trust, Series 2022-6, Class B, 4.72% 6/15/20271 | | | 1,098 | | | | 1,088 | |
Santander Drive Auto Receivables Trust, Series 2023-3, Class A3, 5.61% 10/15/20271 | | | 184 | | | | 185 | |
Santander Drive Auto Receivables Trust, Series 2022-4, Class B, 4.42% 11/15/20271 | | | 1,550 | | | | 1,532 | |
Santander Drive Auto Receivables Trust, Series 2022-7, Class B, 5.95% 1/17/20281 | | | 3,626 | | | | 3,645 | |
Santander Drive Auto Receivables Trust, Series 2023-1, Class B, 4.98% 2/15/20281 | | | 1,263 | | | | 1,254 | |
Santander Drive Auto Receivables Trust, Series 2023-3, Class B, 5.61% 7/17/20281 | | | 679 | | | | 683 | |
Santander Drive Auto Receivables Trust, Series 2022-5, Class C, 4.74% 10/15/20281 | | | 3,071 | | | | 3,026 | |
Santander Drive Auto Receivables Trust, Series 2022-6, Class C, 4.96% 11/15/20281 | | | 1,072 | | | | 1,057 | |
Santander Drive Auto Receivables Trust, Series 2023-4, Class B, 5.77% 12/15/20281 | | | 484 | | | | 491 | |
Santander Drive Auto Receivables Trust, Series 2023-1, Class C, 5.09% 5/15/20301 | | | 887 | | | | 881 | |
Santander Drive Auto Receivables Trust, Series 2023-3, Class C, 5.77% 11/15/20301 | | | 531 | | | | 538 | |
Santander Drive Auto Receivables Trust, Series 2022-7, Class C, 6.69% 3/17/20311 | | | 6,560 | | | | 6,689 | |
SFS Auto Receivables Securitization Trust, Series 2023-1, Class A2A, 5.89% 3/22/20271,5 | | | 103 | | | | 103 | |
SFS Auto Receivables Securitization Trust, Series 2023-1, Class A3, 5.47% 10/20/20281,5 | | | 203 | | | | 205 | |
SFS Auto Receivables Securitization Trust, Series 2023-1, Class A4, 5.47% 12/20/20291,5 | | | 117 | | | | 119 | |
SMB Private Education Loan Trust, Series 2023-C, Class B, 6.36% 11/15/20521,5 | | | 455 | | | | 463 | |
SMB Private Education Loan Trust, Series 2023-C, Class A1B, (30-day Average USD-SOFR + 1.55%) 6.888% 11/15/20521,4,5 | | | 289 | | | | 290 | |
SMB Private Education Loan Trust, Series 2021-A, Class D1, 3.86% 1/15/20531,5 | | | 1,945 | | | | 1,752 | |
SMB Private Education Loan Trust, Series 2021-A, Class D2, 3.86% 1/15/20531,5 | | | 1,945 | | | | 1,752 | |
SMB Private Education Loan Trust, Series 2023-D, Class D, 8.87% 9/15/20531,5 | | | 2,106 | | | | 2,218 | |
SMB Private Education Loan Trust, Series 2022-A, Class D, 4.75% 11/16/20541,5 | | | 5,001 | | | | 4,693 | |
SMB Private Education Loan Trust, Series 2022-B, Class D, 5.95% 2/16/20551,5 | | | 5,000 | | | | 4,779 | |
SMB Private Education Loan Trust, Series 2023-B, Class D, 7.56% 10/16/20561,5 | | | 5,000 | | | | 4,984 | |
SMB Private Education Loan Trust, Series 2022-D, Class D, 7.23% 10/15/20581,5 | | | 3,000 | | | | 3,007 | |
SOLRR Aircraft Aviation Holding, Ltd., Series 2021-1, Class A, 2.636% 10/15/20461,5 | | | 6,397 | | | | 5,529 | |
SPRITE, Ltd., Series 2021-1, Class A, 3.75% 11/15/20461,5 | | | 2,527 | | | | 2,320 | |
Stellar Jay Ireland DAC, Series 2021-1, Class A, 3.967% 10/15/20411,5 | | | 11,419 | | | | 9,727 | |
Stellar Jay Ireland DAC, Series 2021-1, Class B, 5.926% 10/15/20411,5 | | | 16,126 | | | | 13,130 | |
Stonepeak Infrastructure Partners, Series 2021-1A, Class AA, 2.301% 2/28/20331,5 | | | 630 | | | | 579 | |
Stonepeak Infrastructure Partners, Series 2021-1A, Class B, 3.821% 2/28/20331,5 | | | 5,824 | | | | 4,987 | |
Stratus Static CLO, Ltd., Series 2022-1A, Class B, (3-month USD CME Term SOFR + 2.35%) 7.766% 7/20/20301,4,5 | | | 18,570 | | | | 18,570 | |
SuttonPark Structured Settlements, Series 2021-1, Class A, 1.95% 9/15/20751,5 | | | 2,695 | | | | 2,510 | |
Sycamore Tree CLO, Ltd., Series 2023-3, Class A1, (3-month USD CME Term SOFR + 2.20%) 7.616% 4/20/20351,4,5 | | | 1,500 | | | | 1,501 | |
32 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Asset-backed obligations (continued) | | | | | | |
Sycamore Tree CLO, Ltd., Series 2023-3, Class B1, | | | | | | | | |
(3-month USD CME Term SOFR + 3.00%) 8.416% 4/20/20351,4,5 | | USD | 750 | | | $ | 751 | |
Synchrony Card Issuance Trust, Series 2023-A, Class A, 5.54% 7/15/20291 | | | 12,743 | | | | 12,989 | |
TCW CLO, Ltd., Series 2019-1, Class ASNR, (3-month USD CME Term SOFR + 1.482%) 6.872% 8/16/20341,4,5 | | | 1,000 | | | | 997 | |
Textainer Marine Containers, Ltd., Series 2020-1A, Class B, 4.94% 8/21/20451,5 | | | 1,376 | | | | 1,317 | |
Textainer Marine Containers, Ltd., Series 2020-2A, Class B, 3.34% 9/20/20451,5 | | | 2,448 | | | | 2,229 | |
TIAA CLO, Ltd., Series 2018-1, Class B, (3-month USD CME Term SOFR + 2.412%) 7.827% 1/20/20321,4,5 | | | 750 | | | | 743 | |
TICP CLO, Ltd., Series 2018-12, Class DR, (3-month USD CME Term SOFR + 3.562%) 8.955% 7/15/20341,4,5 | | | 1,000 | | | | 980 | |
Toyota Auto Receivables Owner Trust, Series 2023-C, Class A3, 5.16% 4/17/20281 | | | 243 | | | | 245 | |
Toyota Auto Receivables Owner Trust, Series 2023-C, Class A4, 5.01% 2/15/20291 | | | 94 | | | | 95 | |
Tralee CDO, Ltd., Series 2021-7, Class D, (3-month USD CME Term SOFR + 3.442%) 8.82% 4/25/20341,4,5 | | | 900 | | | | 860 | |
Trestles CLO, Ltd., Series 2023-6, Class A, (3-month USD CME Term SOFR + 1.70%) 7.08% 1/25/20361,4,5 | | | 29,000 | | | | 28,995 | |
Trinitas CLO, Ltd., Series 2023-22A, Class D, (3-month USD CME Term SOFR + 6.19%) 11.263% 7/20/20361,4,5 | | | 500 | | | | 503 | |
Triton Container Finance VIII, LLC, Series 2020-1, Class A, 2.11% 9/20/20451,5 | | | 999 | | | | 889 | |
Triton Container Finance VIII, LLC, Series 2020-1, Class B, 3.74% 9/20/20451,5 | | | 3,593 | | | | 3,259 | |
Trysail CLO, Ltd., Series 2021-1, Class C, (3-month USD CME Term SOFR + 2.662%) 8.077% 7/20/20321,4,5 | | | 1,500 | | | | 1,488 | |
Valley Stream Park CLO, Ltd., Series 2022-1, Class AR, (3-month USD CME Term SOFR + 1.63%) 7.046% 10/20/20341,4,5 | | | 20,000 | | | | 20,007 | |
Vibrant CLO, Ltd., Series 2017-7, Class B, (3-month USD CME Term SOFR + 2.662%) 8.077% 9/15/20301,4,5 | | | 730 | | | | 726 | |
Vibrant CLO, Ltd., Series 2023-16, Class A2, (3-month USD CME Term SOFR + 2.80%) 8.194% 4/15/20361,4,5 | | | 1,000 | | | | 1,003 | |
Wellfleet CLO, Ltd., Series 2018-2, Class A1, (3-month USD CME Term SOFR + 1.462%) 6.877% 10/20/20311,4,5 | | | 330 | | | | 330 | |
Westlake Automobile Receivables Trust, Series 2023-1, Class A2A, 5.51% 6/15/20261,5 | | | 160 | | | | 160 | |
Westlake Automobile Receivables Trust, Series 2023-3, Class A3, 5.82% 5/17/20271,5 | | | 810 | | | | 814 | |
Westlake Automobile Receivables Trust, Series 2022-3, Class B, 5.99% 12/15/20271,5 | | | 2,110 | | | | 2,114 | |
Westlake Automobile Receivables Trust, Series 2022-3, Class C, 6.44% 12/15/20271,5 | | | 1,606 | | | | 1,613 | |
Westlake Automobile Receivables Trust, Series 2023-1, Class A3, 5.21% 1/18/20281,5 | | | 99 | | | | 99 | |
Westlake Automobile Receivables Trust, Series 2023-1, Class B, 5.41% 1/18/20281,5 | | | 212 | | | | 211 | |
Westlake Automobile Receivables Trust, Series 2023-1, Class C, 5.74% 8/15/20281,5 | | | 412 | | | | 411 | |
Westlake Automobile Receivables Trust, Series 2023-3, Class B, 5.92% 9/15/20281,5 | | | 1,308 | | | | 1,315 | |
Westlake Automobile Receivables Trust, Series 2023-3, Class C, 6.02% 9/15/20281,5 | | | 483 | | | | 485 | |
Westlake Automobile Receivables Trust, Series 2023-1, Class D, 6.79% 11/15/20281,5 | | | 1,207 | | | | 1,222 | |
Westlake Automobile Receivables Trust, Series 2023-2, Class D, 7.01% 11/15/20281,5 | | | 6,972 | | | | 7,080 | |
Westlake Automobile Receivables Trust, Series 2023-3, Class D, 6.47% 3/15/20291,5 | | | 269 | | | | 269 | |
Wind River CLO, Ltd., Series 2023-1, Class B, (3-month USD CME Term SOFR + 2.50%) 7.878% 4/25/20361,4,5 | | | 750 | | | | 752 | |
Wind River CLO, Ltd., Series 2023-1, Class C1, (3-month USD CME Term SOFR + 3.50%) 8.878% 4/25/20361,4,5 | | | 500 | | | | 504 | |
World Omni Auto Receivables Trust, Series 2023-C, Class A3, 5.15% 11/15/20281 | | | 199 | | | | 201 | |
World Omni Auto Receivables Trust, Series 2023-C, Class A4, 5.03% 11/15/20291 | | | 159 | | | | 160 | |
| | | | | | | 972,230 | |
| | | | | | | | |
Municipals 1.34% | | | | | | | | |
California 0.21% | | | | | | | | |
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2021-A-1, 3.487% 6/1/2036 | | | 4,470 | | | | 3,646 | |
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset- Backed Bonds, Series 2021-A-1, 3.714% 6/1/2041 | | | 6,710 | | | | 5,129 | |
Regents of the University of California, General Rev. Bonds, Series 2020-BG, 0.883% 5/15/2025 | | | 5,000 | | | | 4,745 | |
Regents of the University of California, General Rev. Bonds, Series 2020-BG, 1.316% 5/15/2027 | | | 5,400 | | | | 4,893 | |
Regents of the University of California, General Rev. Bonds, Series 2020-BG, 1.614% 5/15/2030 | | | 6,450 | | | | 5,459 | |
Regents of the University of California, General Rev. Bonds, Series 2023-BR, 5.10% 5/15/2033 | | | 13,795 | | | | 14,312 | |
| | | | | | | 38,184 | |
American Funds Strategic Bond Fund | 33 |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Municipals (continued) | | | | | | | | |
Florida 0.15% | | | | | | | | |
Board of Administration Fin. Corp., Rev. Bonds, Series 2020-A, 1.258% 7/1/2025 | | USD | 15,075 | | | $ | 14,308 | |
Board of Administration Fin. Corp., Rev. Bonds, Series 2020-A, 2.154% 7/1/2030 | | | 14,910 | | | | 12,733 | |
| | | | | | | 27,041 | |
| | | | | | | | |
Illinois 0.18% | | | | | | | | |
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2010-C, 6.319% 11/1/2029 | | | 555 | | | | 556 | |
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2009-E, 6.138% 12/1/2039 | | | 2,645 | | | | 2,507 | |
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2010-D, 6.519% 12/1/2040 | | | 960 | | | | 921 | |
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2017-A, 7.00% 12/1/20465 | | | 1,780 | | | | 1,919 | |
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Qualified School Construction Bonds), Series 2009-G, 1.75% 12/15/2025 | | | 19,120 | | | | 17,588 | |
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Series 2016-A, 7.00% 12/1/2044 | | | 100 | | | | 104 | |
Metropolitan Pier and Exposition Auth., McCormick Place Expansion Project Rev. Ref. Bonds, Series 2020-C, 3.955% 12/15/2026 | | | 6,385 | | | | 6,144 | |
Metropolitan Pier and Exposition Auth., McCormick Place Expansion Project Rev. Ref. Bonds, Capital Appreciation Bonds, Series 2017-A, | | | | | | | | |
Assured Guaranty Municipal insured, 0% 12/15/2056 | | | 13,690 | | | | 2,996 | |
| | | | | | | 32,735 | |
New Jersey 0.01% | | | | | | | | |
Econ. Dev. Auth., State Pension Funding Bonds, Series 1997-A, National insured, 7.425% 2/15/2029 | | | 987 | | | | 1,067 | |
| | | | | | | | |
Ohio 0.23% | | | | | | | | |
Cleveland-Cuyahoga Port Auth., Federal Lease Rev. Bonds (VA Cleveland Health Care Center Project), Series 2021, 4.425% 5/1/2031 | | | 48,115 | | | | 42,178 | |
| | | | | | | | |
Puerto Rico 0.17% | | | | | | | | |
G.O. Restructured Bonds, Series 2022-A-1, 5.375% 7/1/2025 | | | 1,275 | | | | 1,304 | |
G.O. Restructured Bonds, Series 2022-A-1, 5.625% 7/1/2027 | | | 1,264 | | | | 1,337 | |
G.O. Restructured Bonds, Series 2022-A-1, 5.625% 7/1/2029 | | | 1,243 | | | | 1,350 | |
G.O. Restructured Bonds, Series 2022-A-1, 5.75% 7/1/2031 | | | 1,207 | | | | 1,345 | |
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 7/1/2033 | | | 1,145 | | | | 1,124 | |
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 7/1/2035 | | | 1,029 | | | | 998 | |
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 7/1/2037 | | | 883 | | | | 846 | |
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 7/1/2041 | | | 1,201 | | | | 1,105 | |
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 7/1/2046 | | | 1,249 | | | | 1,117 | |
G.O. Restructured Bonds, Capital Appreciation Bonds, Series 2022-A-1, 0% 7/1/2024 | | | 186 | | | | 183 | |
G.O. Restructured Bonds, Capital Appreciation Bonds, Series 2022-A-1, 0% 7/1/2033 | | | 1,473 | | | | 921 | |
G.O. Taxable Bonds, Series 2022, 0% 11/1/20434 | | | 5,061 | | | | 2,765 | |
Sales Tax Fncg. Corp., Sales Tax Rev. Restructured Bonds, Capital Appreciation Bonds, Series 2018-A-1, 0% 7/1/2046 | | | 50,777 | | | | 15,983 | |
| | | | | | | 30,378 | |
| | | | | | | | |
Texas 0.07% | | | | | | | | |
Brazoria County Industrial Dev. Corp., Solid Waste Disposal Facs. Rev. Bonds (Aleon Renewable Metals, LLC Project), Series 2023, AMT, 12.00% 6/1/20435 | | | 12,500 | | | | 12,594 | |
| | | | | | | | |
Washington 0.14% | | | | | | | | |
Econ. Dev. Fin. Auth., Environmental Facs. Rev. Bonds (North Pacific Paper Co. Recycling Project), Series 2020-B, 9.00% 12/1/20365 | | | 24,900 | | | | 25,719 | |
34 | American Funds Strategic Bond Fund |
Bonds, notes & other debt instruments (continued) | | Principal amount (000) | | | Value (000) | |
Municipals (continued) | | | | | | | | |
Wisconsin 0.18% | | | | | | | | |
Public Fin. Auth., Certs. of Part. (Legacy Hills Capital Recovery Fee Projects), Series 2021, 0% 12/17/2061 | | USD | 11,375 | | | $ | 11,375 | |
Public Fin. Auth., Federal Lease Rev. Bonds (Fort Sam Acquisition Fncg.), Series 2022, 4.95% 3/1/2034 | | | 21,870 | | | | 20,720 | |
| | | | | | | 32,095 | |
| | | | | | | | |
Total municipals | | | | | | | 241,991 | |
| | | | | | | | |
Federal agency bonds & notes 0.18% | | | | | | | | |
Fannie Mae 0.875% 8/5/203013 | | | 19,166 | | | | 15,636 | |
Federal Farm Credit Banks 1.75% 2/14/2025 | | | 3,107 | | | | 3,009 | |
Korea Housing Finance Corp. 4.625% 2/24/20285 | | | 14,900 | | | | 14,882 | |
| | | | | | | 33,527 | |
| | | | | | | | |
Total bonds, notes & other debt instruments (cost: $17,143,880,000) | | | | | | | 16,419,629 | |
| | | | | | | | |
Common stocks 0.12% | | | Shares | | | | | |
Information technology 0.10% | | | | | | | | |
Diebold Nixdorf, Inc.5,15 | | | 634,882 | | | | 18,380 | |
| | | | | | | | |
Consumer discretionary 0.02% | | | | | | | | |
Party City Holdco, Inc.7,15 | | | 130,501 | | | | 2,980 | |
Party City Holdco, Inc.5,7,15 | | | 1,303 | | | | 30 | |
NMG Parent, LLC15 | | | 1,149 | | | | 126 | |
MYT Holding Co., Class B7,15 | | | 130,350 | | | | 98 | |
| | | | | | | 3,234 | |
| | | | | | | | |
Total common stocks (cost: $31,332,000) | | | | | | | 21,614 | |
| | | | | | | | |
Preferred securities 0.00% | | | | | | | | |
Consumer discretionary 0.00% | | | | | | | | |
MYT Holdings, LLC, Series A, 10.00% preferred shares15 | | | 224,416 | | | | 146 | |
| | | | | | | | |
Total preferred securities (cost: $201,000) | | | | | | | 146 | |
| | | | | | | | |
Rights & warrants 0.00% | | | | | | | | |
Consumer discretionary 0.00% | | | | | | | | |
NMG Parent, LLC, warrants, expire 9/24/202715 | | | 4,602 | | | | 37 | |
| | | | | | | | |
Total rights & warrants (cost: $28,000) | | | | | | | 37 | |
| | | | | | | | |
Short-term securities 14.72% | | | | | | | | |
Money market investments 14.72% | | | | | | | | |
Capital Group Central Cash Fund 5.44%16,17 | | | 26,610,027 | | | | 2,660,737 | |
| | | | | | | | |
Total short-term securities (cost: $2,660,799,000) | | | | | | | 2,660,737 | |
| | | | | | | | |
Options purchased (equity style) 0.66% | | | | | | | | |
Options purchased (equity style)* | | | | | | | 118,352 | |
| | | | | | | | |
Total options purchased (equity style) (cost: $60,864,000) | | | | | | | 118,352 | |
| | | | | | | | |
Total investment securities 106.33% (cost: $19,897,104,000) | | | | | | | 19,220,515 | |
Total options written (0.72)%† | | | | | | | (129,381 | ) |
Other assets less liabilities (5.61)% | | | | | | | (1,013,819 | ) |
| | | | | | | | |
Net assets 100.00% | | | | | | $ | 18,077,315 | |
American Funds Strategic Bond Fund | 35 |
*Options purchased (equity style)
Options on futures
Description | | Number of contracts | | | Notional amount (000) | | | Exercise price | | | Expiration date | | Value at 12/31/2023 (000) | |
Call | | | | | | | | | | | | | | | | | | | |
3 Month SOFR Futures Option | | | 49,192 | | | USD | 12,298,000 | | | USD | 96.00 | | | 6/14/2024 | | | $ | 108,530 | |
3 Month SOFR Futures Option | | | 7,111 | | | | 1,777,750 | | | | 96.50 | | | 6/14/2024 | | | | 9,822 | |
| | | | | | | | | | | | | | | | | $ | 118,352 | |
†Options written (equity style)
Options on futures
Description | | Number of contracts | | | Notional amount (000) | | | Exercise price | | | Expiration date | | Value at 12/31/2023 (000) | |
Call | | | | | | | | | | | | | | | | | | | |
3 Month SOFR Futures Option | | | 49,191 | | | USD | (12,297,750 | ) | | USD | 96.00 | | | 6/14/2024 | | | $ | (118,981 | ) |
3 Month SOFR Futures Option | | | 7,111 | | | | (1,777,750 | ) | | | 96.50 | | | 6/14/2024 | | | | (10,400 | ) |
| | | | | | | | | | | | | | | | | $ | (129,381 | ) |
Futures contracts
Contracts | | Type | | Number of contracts | | | Expiration date | | Notional amount (000) | | | Value and unrealized appreciation (depreciation) at 12/31/2023 (000) | |
30 Day Federal Funds Futures | | Short | | | 74,640 | | | 2/1/2024 | | USD | (29,445,503 | ) | | | $ | (21,106 | ) |
3 Month SOFR Futures | | Long | | | 17,237 | | | 3/20/2024 | | | 4,078,382 | | | | | 2,572 | |
2 Year U.S. Treasury Note Futures | | Long | | | 70,834 | | | 4/3/2024 | | | 14,585,716 | | | | | 145,750 | |
5 Year Euro-Bobl Futures | | Short | | | 5,630 | | | 3/11/2024 | | | (741,354 | ) | | | | (10,076 | ) |
5 Year U.S. Treasury Note Futures | | Long | | | 47,159 | | | 4/3/2024 | | | 5,129,647 | | | | | 119,345 | |
10 Year Euro-Bund Futures | | Long | | | 747 | | | 3/11/2024 | | | 113,159 | | | | | 3,257 | |
10 Year Italy Government Bond Futures | | Short | | | 8,832 | | | 3/11/2024 | | | (1,161,723 | ) | | | | (36,724 | ) |
10 Year Japanese Government Bond Futures | | Short | | | 1,762 | | | 3/20/2024 | | | (1,833,355 | ) | | | | (6,394 | ) |
10 Year U.S. Treasury Note Futures | | Short | | | 12,194 | | | 3/28/2024 | | | (1,376,588 | ) | | | | (44,147 | ) |
10 Year Ultra U.S. Treasury Note Futures | | Short | | | 22,404 | | | 3/28/2024 | | | (2,644,022 | ) | | | | (118,307 | ) |
20 Year U.S. Treasury Bond Futures | | Short | | | 23 | | | 3/28/2024 | | | (2,874 | ) | | | | (219 | ) |
30 Year Euro-Buxl Futures | | Long | | | 199 | | | 3/11/2024 | | | 31,134 | | | | | 2,482 | |
30 Year Ultra U.S. Treasury Bond Futures | | Short | | | 3,866 | | | 3/28/2024 | | | (516,473 | ) | | | | (45,980 | ) |
| | | | | | | | | | | | | | | $ | (9,547 | ) |
Forward currency contracts
| | | | | | | | | Unrealized | |
| | | | | | appreciation | |
Contract amount | | | | | | (depreciation) | |
Currency purchased | | Currency sold | | | | | Settlement | | at 12/31/2023 | |
(000) | | (000) | | | Counterparty | | date | | (000) | |
USD | 64,286 | | EUR | 59,240 | | | Morgan Stanley | | 1/8/2024 | | $ | (1,138 | ) |
USD | 47,926 | | ZAR | 906,875 | | | UBS AG | | 1/9/2024 | | | (1,603 | ) |
USD | 50,825 | | ILS | 196,387 | | | Goldman Sachs | | 1/9/2024 | | | (3,427 | ) |
COP | 465,641,550 | | USD | 116,475 | | | Citibank | | 1/12/2024 | | | 3,323 | |
COP | 351,273,450 | | USD | 87,512 | | | Morgan Stanley | | 1/12/2024 | | | 2,861 | |
USD | 7,212 | | KRW | 9,269,600 | | | Citibank | | 1/12/2024 | | | 56 | |
EUR | 5,860 | | MXN | 110,000 | | | Citibank | | 1/12/2024 | | | 10 | |
USD | 8,631 | | INR | 720,000 | | | Standard Chartered Bank | | 1/12/2024 | | | (14 | ) |
36 | American Funds Strategic Bond Fund |
Forward currency contracts (continued)
| | | | | | | | Unrealized | |
| | | | | | | | appreciation | |
Contract amount | | | | | (depreciation) | |
Currency purchased | | Currency sold | | | | | Settlement | at 12/31/2023 | |
(000) | | (000) | | | Counterparty | | date | | (000) | |
USD | 23,839 | | BRL | 117,230 | | | Citibank | | 1/12/2024 | | $ | (269 | ) |
CLP | 74,789,700 | | USD | 85,822 | | | Morgan Stanley | | 1/12/2024 | | | (996 | ) |
MXN | 2,632,154 | | USD | 151,388 | | | Citibank | | 1/18/2024 | | | 3,072 | |
MXN | 2,068,121 | | USD | 119,798 | | | Morgan Stanley | | 1/18/2024 | | | 1,563 | |
USD | 460,833 | | MXN | 8,043,204 | | | Morgan Stanley | | 1/18/2024 | | | (11,156 | ) |
JPY | 52,836,526 | | USD | 362,201 | | | Morgan Stanley | | 1/19/2024 | | | 13,800 | |
EUR | 164,725 | | USD | 181,332 | | | HSBC Bank | | 1/22/2024 | | | 703 | |
USD | 3,191 | | SEK | 32,500 | | | Bank of America | | 1/22/2024 | | | (35 | ) |
USD | 360,679 | | MXN | 6,271,738 | | | Morgan Stanley | | 1/22/2024 | | | (7,080 | ) |
JPY | 25,890,190 | | USD | 178,110 | | | Morgan Stanley | | 1/23/2024 | | | 6,254 | |
USD | 4,469 | | SGD | 5,945 | | | HSBC Bank | | 1/23/2024 | | | (41 | ) |
JPY | 24,294,000 | | USD | 170,106 | | | Morgan Stanley | | 2/9/2024 | | | 3,345 | |
JPY | 1,831,000 | | EUR | 11,640 | | | Citibank | | 2/9/2024 | | | 201 | |
USD | 50,954 | | ILS | 196,387 | | | BNP Paribas | | 2/9/2024 | | | (3,345 | ) |
USD | 40,059 | | ILS | 147,671 | | | BNP Paribas | | 3/11/2024 | | | (817 | ) |
USD | 51,367 | | ILS | 196,387 | | | Barclays Bank PLC | | 5/9/2024 | | | (3,127 | ) |
| | | | | | | | | | $ | 2,140 | |
Swap contracts
Interest rate swaps
Centrally cleared interest rate swaps
| | | | | | | | | | | | | | | | | Upfront | | | Unrealized | |
| | | | | | | | | | | | | | | | | premium | | | appreciation | |
Receive | | Pay | | | | Notional | | | Value at | | | paid | | | (depreciation) | |
| | Payment | | | | Payment | | Expiration | | amount | | | 12/31/2023 | | | (received) | | | at 12/31/2023 | |
Rate | | frequency | | Rate | | frequency | | date | | (000) | | | | | (000) | | | | | (000) | | | | | (000) | |
5.018% | | Annual | | SOFR | | Annual | | 10/2/2025 | | USD | 1,439,800 | | | | $ | 19,111 | | | | $ | — | | | | $ | 19,111 | |
(0.445)% | | Annual | | 6-month EURIBOR | | Semi-annual | | 12/3/2025 | | EUR | 448,100 | | | | | (30,440 | ) | | | | — | | | | | (30,440 | ) |
(0.452)% | | Annual | | 6-month EURIBOR | | Semi-annual | | 12/3/2025 | | 448,100 | | | | | (30,504 | ) | | | | — | | | | | (30,504 | ) |
TONAR | | Annual | | (0.01246731)% | | Annual | | 10/1/2026 | | JPY | 1,442,100 | | | | | 82 | | | | | (3 | ) | | | | 85 | |
U.S. EFFR | | Annual | | 2.438% | | Annual | | 1/11/2029 | | USD | 44,000 | | | | | 2,103 | | | | | — | | | | | 2,103 | |
28-day MXN-TIIE | | 28-day | | 6.95% | | 28-day | | 3/22/2030 | | MXN | 636,500 | | | | | 2,752 | | | | | — | | | | | 2,752 | |
3.18% | | Annual | | SOFR | | Annual | | 4/17/2030 | | USD | 166,100 | | | | | (2,992 | ) | | | | — | | | | | (2,992 | ) |
3.275% | | Annual | | SOFR | | Annual | | 4/18/2030 | | 166,100 | | | | | (2,109 | ) | | | | — | | | | | (2,109 | ) |
3.353% | | Annual | | SOFR | | Annual | | 4/19/2030 | | 166,100 | | | | | (1,384 | ) | | | | — | | | | | (1,384 | ) |
3.342% | | Annual | | SOFR | | Annual | | 4/19/2030 | | 166,100 | | | | | (1,486 | ) | | | | — | | | | | (1,486 | ) |
3.344% | | Annual | | SOFR | | Annual | | 4/20/2030 | | 166,200 | | | | | (1,471 | ) | | | | — | | | | | (1,471 | ) |
3.128% | | Annual | | SOFR | | Annual | | 4/28/2030 | | 166,200 | | | | | (3,490 | ) | | | | — | | | | | (3,490 | ) |
3.285% | | Annual | | SOFR | | Annual | | 5/1/2030 | | 166,200 | | | | | (2,023 | ) | | | | — | | | | | (2,023 | ) |
3.259% | | Annual | | SOFR | | Annual | | 5/1/2030 | | 166,300 | | | | | (2,267 | ) | | | | — | | | | | (2,267 | ) |
3.186% | | Annual | | SOFR | | Annual | | 5/9/2030 | | 166,300 | | | | | (2,955 | ) | | | | — | | | | | (2,955 | ) |
3.215% | | Annual | | SOFR | | Annual | | 5/10/2030 | | 166,300 | | | | | (2,684 | ) | | | | — | | | | | (2,684 | ) |
3.29% | | Annual | | SOFR | | Annual | | 5/19/2030 | | 199,300 | | | | | (2,378 | ) | | | | — | | | | | (2,378 | ) |
U.S. EFFR | | Annual | | 0.666% | | Annual | | 11/19/2030 | | 153,800 | | | | | 25,840 | | | | | — | | | | | 25,840 | |
28-day MXN-TIIE | | 28-day | | 8.188% | | 28-day | | 1/27/2031 | | MXN | 647,600 | | | | | 526 | | | | | — | | | | | 526 | |
28-day MXN-TIIE | | 28-day | | 8.3425% | | 28-day | | 1/27/2031 | | 122,650 | | | | | 40 | | | | | — | | | | | 40 | |
SOFR | | Annual | | 3.10% | | Annual | | 6/20/2033 | | USD | 90,300 | | | | | 2,763 | | | | | — | | | | | 2,763 | |
SOFR | | Annual | | 3.175% | | Annual | | 2/1/2038 | | 20,700 | | | | | 430 | | | | | — | | | | | 430 | |
3.095% | | Annual | | SOFR | | Annual | | 9/27/2048 | | 27,500 | | | | | (1,442 | ) | | | | — | | | | | (1,442 | ) |
U.S. EFFR | | Annual | | 0.6193% | | Annual | | 4/6/2050 | | 12,600 | | | | | 5,842 | | | | | — | | | | | 5,842 | |
U.S. EFFR | | Annual | | 0.60602% | | Annual | | 4/6/2050 | | 5,800 | | | | | 2,702 | | | | | — | | | | | 2,702 | |
U.S. EFFR | | Annual | | 0.616917% | | Annual | | 4/6/2050 | | 5,200 | | | | | 2,413 | | | | | — | | | | | 2,413 | |
6-month EURIBOR | | Semi-annual | | 0.0897% | | Annual | | 6/4/2050 | | EUR | 16,100 | | | | | 7,957 | | | | | — | | | | | 7,957 | |
6-month EURIBOR | | Semi-annual | | 0.006% | | Annual | | 12/3/2050 | | 74,200 | | | | | 38,381 | | | | | — | | | | | 38,381 | |
6-month EURIBOR | | Semi-annual | | 0.0175% | | Annual | | 12/3/2050 | | 74,200 | | | | | 38,196 | | | | | — | | | | | 38,196 | |
6-month EURIBOR | | Semi-annual | | 0.068% | | Annual | | 1/15/2051 | | 39,980 | | | | | 20,159 | | | | | — | | | | | 20,159 | |
0.702% | | Annual | | 6-month EURIBOR | | Semi-annual | | 3/3/2052 | | 39,150 | | | | | (14,614 | ) | | | | — | | | | | (14,614 | ) |
0.672% | | Annual | | 6-month EURIBOR | | Semi-annual | | 3/3/2052 | | 39,150 | | | | | (14,877 | ) | | | | — | | | | | (14,877 | ) |
American Funds Strategic Bond Fund | 37 |
Swap contracts (continued)
Interest rate swaps (continued)
Centrally cleared interest rate swaps (continued)
| | | | | | | | | | | | | | | | | Upfront | | Unrealized | |
| | | | | | | | | | | | | | | | | premium | | appreciation | |
Receive | | Pay | | | | Notional | | | Value at | | | paid | | (depreciation) | |
| | Payment | | | | Payment | | Expiration | | amount | | | 12/31/2023 | | | (received) | | at 12/31/2023 | |
Rate | | frequency | | Rate | | frequency | | date | | | (000) | | | | | (000) | | | | | (000) | | | | (000) | |
0.649% | | Annual | | 6-month EURIBOR | | Semi-annual | | 3/3/2052 | | EUR | 46,200 | | | | $ | (17,794 | ) | | | $ | — | | | $ | (17,794 | ) |
SOFR | | Annual | | 3.01413% | | Annual | | 1/12/2053 | | USD | 118,924 | | | | | 7,046 | | | | | — | | | | 7,046 | |
SOFR | | Annual | | 3.02% | | Annual | | 1/12/2053 | | | 118,900 | | | | | 6,917 | | | | | — | | | | 6,917 | |
SOFR | | Annual | | 2.974% | | Annual | | 4/17/2053 | | | 52,200 | | | | | 3,460 | | | | | — | | | | 3,460 | |
SOFR | | Annual | | 3.044% | | Annual | | 4/18/2053 | | | 52,700 | | | | | 2,814 | | | | | — | | | | 2,814 | |
SOFR | | Annual | | 3.0875% | | Annual | | 4/19/2053 | | | 52,600 | | | | | 2,387 | | | | | — | | | | 2,387 | |
SOFR | | Annual | | 3.1035% | | Annual | | 4/19/2053 | | | 52,500 | | | | | 2,228 | | | | | — | | | | 2,228 | |
SOFR | | Annual | | 3.0895% | | Annual | | 4/20/2053 | | | 52,600 | | | | | 2,368 | | | | | — | | | | 2,368 | |
SOFR | | Annual | | 2.9405% | | Annual | | 4/28/2053 | | | 52,500 | | | | | 3,802 | | | | | — | | | | 3,802 | |
SOFR | | Annual | | 3.0535% | | Annual | | 5/1/2053 | | | 105,100 | | | | | 5,422 | | | | | — | | | | 5,422 | |
SOFR | | Annual | | 3.085% | | Annual | | 5/9/2053 | | | 53,100 | | | | | 2,429 | | | | | — | | | | 2,429 | |
SOFR | | Annual | | 3.1135% | | Annual | | 5/10/2053 | | | 52,800 | | | | | 2,137 | | | | | — | | | | 2,137 | |
SOFR | | Annual | | 3.1605% | | Annual | | 5/19/2053 | | | 63,500 | | | | | 2,017 | | | | | — | | | | 2,017 | |
| | | | | | | | | | | | | | | $ | 77,414 | | | | $ | (3 | ) | | $ | 77,417 | |
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
| | | | | | | | | | | | | | Upfront | | | Unrealized | |
| | | | | | | | | | | | | | premium | | | appreciation | |
| | | | | | | | Notional | | Value at | | | paid | | | (depreciation) | |
Reference | | Financing | | Payment | | Expiration | | amount | | 12/31/2023 | | | (received) | | | at 12/31/2023 | |
index | | rate paid | | frequency | | date | | (000) | | (000) | | | (000) | | | | (000) | |
CDX.NA.IG.41 | | 1.00% | | Quarterly | | 12/20/2028 | | USD | 1,889,524 | | | $ | (36,719 | ) | | | $ | (26,322 | ) | | | $ | (10,397 | ) |
CDX.NA.HY.41 | | 5.00% | | Quarterly | | 12/20/2028 | | | 4,544,696 | | | | (265,079 | ) | | | | (97,477 | ) | | | | (167,602 | ) |
| | | | | | | | | | | | $ | (301,798 | ) | | | $ | (123,799 | ) | | | $ | (177,999 | ) |
Investments in affiliates17
| | | | | | | | | | | | | | Net | | | | | | | |
| | | | | | | | | | | Net | | | unrealized | | | | | | Dividend | |
| | Value at | | | | | | | | | realized | | | appreciation | | | Value at | | | or interest | |
| | 1/1/2023 | | | Additions | | | Reductions | | | gain (loss) | | | (depreciation) | | | 12/31/2023 | | | income | |
| | (000) | | | (000) | | | (000) | | | (000) | | | (000) | | | (000) | | | (000) | |
Short-term securities 14.72% | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market investments 14.72% | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital Group Central Cash Fund 5.44%16 | | $ | 1,602,581 | | | $ | 12,015,388 | | | $ | 10,957,203 | | | $ | 289 | | | $ | (318 | ) | | $ | 2,660,737 | | | $ | 216,691 | |
Restricted securities11
| | Acquisition date(s) | | Cost (000) | | | Value (000) | | | Percent of net assets | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class A1, 8.25% 1/15/20281,7 | | 12/6/2022 | | $ | 16,101 | | | $ | 16,147 | | | | .09 | % |
Mission Lane Credit Card Master Trust, Series 2022-B, Class C, 12.09% 1/15/20281,7 | | 12/6/2022 | | | 12,000 | | | | 12,200 | | | | .07 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class B, 10.42% 1/15/20281,7 | | 12/6/2022 | | | 8,615 | | | | 8,711 | | | | .05 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class D, 14.45% 1/15/20281,7 | | 12/6/2022 | | | 4,999 | | | | 5,070 | | | | .03 | |
Mission Lane Credit Card Master Trust, Series 2022-B, Class A2, 8.73% 1/15/20281,7 | | 12/6/2022 | | | 2,605 | | | | 2,612 | | | | .01 | |
38 | American Funds Strategic Bond Fund |
Restricted securities11 (continued)
| | Acquisition date(s) | | Cost (000) | | | Value (000) | | | Percent of net assets | |
Wolfspeed, Inc. 9.875% 6/23/2030 (10.875% on 6/23/2026)6,7 | | 6/23/2023 | | $ | 10,294 | | | $ | 10,841 | | | | .06 | % |
Modec Finance BV 7.84% 7/15/20267 | | 7/28/2023 | | | 9,000 | | | | 9,049 | | | | .05 | |
NBM US Holdings, Inc. 6.625% 8/6/2029 | | 9/17/2020 | | | 3,826 | | | | 3,599 | | | | .02 | |
Finastra USA, Inc., Term Loan B, (3-month USD CME Term SOFR + 7.25%) 12.713% 9/13/20294,8 | | 9/13/2023 | | | 2,858 | | | | 2,871 | | | | .01 | |
Finastra USA, Inc., Term Loan, (3-month USD CME Term SOFR + 7.25%) 12.61% 9/13/20294,8 | | 9/13/2023-12/13/2023 | | | 77 | | | | 79 | | | | .0018 | |
Marathon CLO, Ltd., Series 2017-10, Class A1AR, (3-month USD CME Term SOFR + 1.262%) 6.641% 11/15/20291,4 | | 8/18/2023 | | | 162 | | | | 164 | | | | .0018 | |
Total | | | | $ | 70,537 | | | $ | 71,343 | | | | .39 | % |
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
2 | Amount less than one thousand. |
3 | Purchased on a TBA basis. |
4 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
5 | Acquired in a transaction exempt from registration under Rule 144A or, for commercial paper, Section 4(a)(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 $3,351,091,000, which represented 18.54% of the net assets of the fund. |
6 | Step bond; coupon rate may change at a later date. |
7 | Value determined using significant unobservable inputs. |
8 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $71,795,000, which represented .40% of the net assets of the fund. |
9 | Scheduled interest and/or principal payment was not received. |
10 | Securities referencing LIBOR are expected to transition to an alternative reference rate by the security’s next scheduled coupon reset date. |
11 | Restricted security, other than Rule 144A securities or commercial paper issued pursuant to Section 4(a)(2) of the Securities Act of 1933. The total value of all such restricted securities was $71,343,000, which represented .39% of the net assets of the fund. |
12 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Payment methods and rates are as of the most recent payment when available. |
13 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $553,842,000, which represented 3.06% of the net assets of the fund. |
14 | Index-linked bond whose principal amount moves with a government price index. |
15 | Security did not produce income during the last 12 months. |
16 | Rate represents the seven-day yield at 12/31/2023. |
17 | Part of the same “group of investment companies” as the fund as defined under the Investment Company Act of 1940, as amended. |
18 | Amount less than .01%. |
American Funds Strategic Bond Fund | 39 |
Key to abbreviation(s)
AMT = Alternative Minimum Tax
Assn. = Association
Auth. = Authority
BRL = Brazilian reais
Certs. = Certificates
CLO = Collateralized Loan Obligations
CLP = Chilean pesos
CME = CME Group
CMO = Collateralized Mortgage Obligations
COP = Colombian pesos
DAC = Designated Activity Company
Dev. = Development
Econ. = Economic
EFFR = Effective Federal Funds Rate
EUR = Euros
EURIBOR = Euro Interbank Offered Rate
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
GBP = British pounds
GHS = Ghanaian cedi
ILS = Israeli shekels
INR = Indian rupees
JPY = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
Part. = Participation
PEN = Peruvian nuevos soles
PIK = Payment In Kind
Ref. = Refunding
Rev. = Revenue
SEK = Swedish kronor
SGD = Singapore dollars
SOFR = Secured Overnight Financing Rate
TBA = To be announced
TIIE = Equilibrium Interbank Interest Rate
TONAR = Tokyo Overnight Average Rate
USD = U.S. dollars
ZAR = South African rand
Refer to the notes to financial statements.
40 | American Funds Strategic Bond Fund |
Financial statements
Statement of assets and liabilities | |
at December 31, 2023 | (dollars in thousands) |
Assets: | | | | | | |
Investment securities, at value: | | | | | | | | |
Unaffiliated issuers (cost: $17,236,305) | | $ | 16,559,778 | | | | | |
Affiliated issuers (cost: $2,660,799) | | | 2,660,737 | | | $ | 19,220,515 | |
Cash | | | | | | | 4,472 | |
Cash collateral pledged for forward currency contracts | | | | | | | 380 | |
Unrealized appreciation on open forward currency contracts | | | | | | | 35,188 | |
Receivables for: | | | | | | | | |
Sales of investments | | | 1,423,278 | | | | | |
Sales of fund’s shares | | | 61,781 | | | | | |
Dividends and interest | | | 156,328 | | | | | |
Variation margin on futures contracts | | | 44,554 | | | | | |
Variation margin on centrally cleared swap contracts | | | 16,795 | | | | | |
Other | | | 297 | | | | 1,703,033 | |
| | | | | | | 20,963,588 | |
Liabilities: | | | | | | | | |
Unrealized depreciation on open forward currency contracts | | | | | | | 33,048 | |
Unrealized depreciation on unfunded commitments* | | | | | | | 3 | |
Options written, at value (premium received: $62,220) | | | | | | | 129,381 | |
Payables for: | | | | | | | | |
Purchases of investments | | | 2,675,677 | | | | | |
Repurchases of fund’s shares | | | 28,871 | | | | | |
Investment advisory services | | | 4,161 | | | | | |
Services provided by related parties | | | 1,527 | | | | | |
Trustees’ deferred compensation | | | 53 | | | | | |
Variation margin on futures contracts | | | 4,780 | | | | | |
Variation margin on centrally cleared swap contracts | | | 8,639 | | | | | |
Other | | | 133 | | | | 2,723,841 | |
Commitments and contingencies* | | | | | | | | |
Net assets at December 31, 2023 | | | | | | $ | 18,077,315 | |
| | | | | | | | |
Net assets consist of: | | | | | | | | |
Capital paid in on shares of beneficial interest | | | | | | $ | 20,586,424 | |
Total distributable earnings (accumulated loss) | | | | | | | (2,509,109 | ) |
Net assets at December 31, 2023 | | | | | | $ | 18,077,315 | |
* | Refer to Note 5 for further information on unfunded commitments. |
Refer to the notes to financial statements.
American Funds Strategic Bond Fund | 41 |
Financial statements (continued)
Statement of assets and liabilities | |
at December 31, 2023 (continued) | (dollars and shares in thousands, except per-share amounts) |
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (1,945,144 total shares outstanding)
| | Net assets | | | Shares outstanding | | | Net asset value per share | |
Class A | | $ | 2,740,554 | | | | 295,103 | | | $ | 9.29 | |
Class C | | | 96,224 | | | | 10,422 | | | | 9.23 | |
Class T | | | 9 | | | | 1 | | | | 9.29 | |
Class F-1 | | | 188,312 | | | | 20,297 | | | | 9.28 | |
Class F-2 | | | 5,619,692 | | | | 604,733 | | | | 9.29 | |
Class F-3 | | | 2,827,899 | | | | 304,442 | | | | 9.29 | |
Class 529-A | | | 85,178 | | | | 9,179 | | | | 9.28 | |
Class 529-C | | | 5,686 | | | | 615 | | | | 9.24 | |
Class 529-E | | | 2,742 | | | | 295 | | | | 9.28 | |
Class 529-T | | | 11 | | | | 1 | | | | 9.30 | |
Class 529-F-1 | | | 9 | | | | 1 | | | | 9.28 | |
Class 529-F-2 | | | 27,978 | | | | 3,012 | | | | 9.29 | |
Class 529-F-3 | | | 9 | | | | 1 | | | | 9.28 | |
Class R-1 | | | 1,410 | | | | 152 | | | | 9.28 | |
Class R-2 | | | 6,617 | | | | 715 | | | | 9.26 | |
Class R-2E | | | 3,546 | | | | 383 | | | | 9.27 | |
Class R-3 | | | 18,396 | | | | 1,985 | | | | 9.27 | |
Class R-4 | | | 24,745 | | | | 2,667 | | | | 9.28 | |
Class R-5E | | | 5,915 | | | | 636 | | | | 9.30 | |
Class R-5 | | | 11,468 | | | | 1,233 | | | | 9.30 | |
Class R-6 | | | 6,410,915 | | | | 689,271 | | | | 9.30 | |
Refer to the notes to financial statements.
42 | American Funds Strategic Bond Fund |
Financial statements (continued)
Statement of operations | |
for the year ended December 31, 2023 | (dollars in thousands) |
Investment income: | | | | | | |
Income: | | | | | | | | |
Interest from unaffiliated issuers (net of non-U.S. taxes of $116) | | $ | 663,371 | | | | | |
Dividends from affiliated issuers | | | 216,691 | | | $ | 880,062 | |
Fees and expenses*: | | | | | | | | |
Investment advisory services | | | 48,218 | | | | | |
Distribution services | | | 9,881 | | | | | |
Transfer agent services | | | 9,335 | | | | | |
Administrative services | | | 5,262 | | | | | |
529 plan services | | | 70 | | | | | |
Reports to shareholders | | | 572 | | | | | |
Registration statement and prospectus | | | 1,645 | | | | | |
Trustees’ compensation | | | 66 | | | | | |
Auditing and legal | | | 36 | | | | | |
Custodian | | | 295 | | | | | |
Other | | | 36 | | | | | |
Total fees and expenses before waiver | | | 75,416 | | | | | |
Less waiver of fees and expenses: | | | | | | | | |
Investment advisory services waiver | | | 63 | | | | | |
Total fees and expenses after waiver | | | | | | | 75,353 | |
Net investment income | | | | | | | 804,709 | |
| | | | | | | | |
Net realized gain (loss) and unrealized appreciation (depreciation): | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investments: | | | | | | | | |
Unaffiliated issuers | | | (849,622 | ) | | | | |
Affiliated issuers | | | 289 | | | | | |
Options purchased (futures style) | | | (277 | ) | | | | |
Options written | | | 434 | | | | | |
Futures contracts | | | (361,883 | ) | | | | |
Forward currency contracts | | | (81,560 | ) | | | | |
Swap contracts | | | (460,013 | ) | | | | |
Currency transactions | | | (505 | ) | | | (1,753,137 | ) |
Net unrealized appreciation (depreciation) on: | | | | | | | | |
Investments (net of non-U.S. taxes of $50): | | | | | | | | |
Unaffiliated issuers | | | 1,179,820 | | | | | |
Affiliated issuers | | | (318 | ) | | | | |
Options written | | | (67,161 | ) | | | | |
Futures contracts | | | (152,316 | ) | | | | |
Forward currency contracts | | | (18,949 | ) | | | | |
Swap contracts | | | 259,149 | | | | | |
Currency translations | | | 117 | | | | 1,200,342 | |
Net realized gain (loss) and unrealized appreciation (depreciation) | | | | | | | (552,795 | ) |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | | | | $ | 251,914 | |
* | Additional information related to class-specific fees and expenses is included in the notes to financial statements. |
Refer to the notes to financial statements.
American Funds Strategic Bond Fund | 43 |
Financial statements (continued)
Statements of changes in net assets | |
| (dollars in thousands) |
| | Year ended December 31, | |
| | 2023 | | | 2022 | |
Operations: | | | | | | | | |
Net investment income | | $ | 804,709 | | | $ | 517,924 | |
Net realized gain (loss) | | | (1,753,137 | ) | | | (60,155 | ) |
Net unrealized appreciation (depreciation) | | | 1,200,342 | | | | (2,071,864 | ) |
Net increase (decrease) in net assets resulting from operations | | | 251,914 | | | | (1,614,095 | ) |
| | | | | | | | |
Distributions paid to shareholders: | | | | | | | | |
Distributions | | | (352,708 | ) | | | (752,862 | ) |
Return of capital | | | (214,753 | ) | | | (10,274 | ) |
Total distributions paid and return of capital paid to shareholders | | | (567,461 | ) | | | (763,136 | ) |
| | | | | | | | |
Net capital share transactions | | | 2,589,750 | | | | 7,978,611 | |
| | | | | | | | |
Total increase (decrease) in net assets | | | 2,274,203 | | | | 5,601,380 | |
| | | | | | | | |
Net assets: | | | | | | | | |
Beginning of year | | | 15,803,112 | | | | 10,201,732 | |
End of year | | $ | 18,077,315 | | | $ | 15,803,112 | |
Refer to the notes to financial statements.
44 | American Funds Strategic Bond Fund |
Notes to financial statements
1. Organization
American Funds Strategic Bond Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end, diversified management investment company. The fund seeks to provide maximum total return consistent with preservation of capital.
The fund has 21 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), seven 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T, 529-F-1, 529-F-2 and 529-F-3) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:
Share class | | Initial sales charge | | Contingent deferred sales charge upon redemption | | Conversion feature |
Class A | | Up to 3.75% | | None (except 0.75% for certain redemptions within 18 months of purchase without an initial sales charge) | | None |
Class 529-A | | Up to 3.50% | | None (except 1.00% for certain redemptions within 18 months of purchase without an initial sales charge) | | None |
Classes C and 529-C | | None | | 1.00% for redemptions within one year of purchase | | Class C converts to Class A after eight years and Class 529-C converts to Class 529-A after five years |
Class 529-E | | None | | None | | None |
Classes T and 529-T* | | Up to 2.50% | | None | | None |
Classes F-1, F-2, F-3, 529-F-1, 529-F-2 and 529-F-3 | | None | | None | | None |
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 | | None | | None | | None |
* | Class T and 529-T shares are not available for purchase. |
Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution, transfer agent and administrative services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.
2. Significant accounting policies
The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations — Income, fees and expenses (other than class-specific fees and expenses), realized gains and losses and unrealized appreciation and depreciation are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, transfer agent and administrative services, are charged directly to the respective share class.
American Funds Strategic Bond Fund | 45 |
Distributions paid to shareholders — Income dividends and capital gain distributions are recorded on the ex-dividend date. The fund may deem a portion of the income dividends and/or capital gain distributions as a return of capital for tax purposes.
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.
3. Valuation
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities, including depositary receipts, 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 evaluated prices obtained from third-party pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | | Examples of standard inputs |
All | | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds, notes & loans; convertible securities | | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
Municipal securities | | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information. Exchange-traded options and futures are generally valued at the official closing price for options and official settlement price for futures of the exchange or market on which such instruments are traded, as of the close of business on the day such instruments are being valued. Forward currency contracts are valued based on the spot and forward exchange rates obtained from a third-party pricing vendor. Swaps are generally valued using evaluated prices obtained from third-party pricing vendors who calculate these values based on market inputs that may include the yields of the indices referenced in the instrument and the relevant curve, dealer quotes, default probabilities and recovery rates, and terms of the contract.
46 | American Funds Strategic Bond Fund |
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 the fund’s investment adviser and approved by the 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, restrictions on resale of the security, relevant financial or business developments of the issuer, actively traded similar or related securities, dealer or broker quotes, conversion or exchange rights on the security, related corporate actions, significant events occurring after the close of trading in the security, and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations 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 designated 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 “Committee”) to administer, implement and oversee the fair valuation process and to make fair value decisions. The Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation team. The Committee reviews changes in fair value measurements from period to period, pricing vendor information and market data, and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews facilitated by the investment adviser’s global risk management group. The Committee reports changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of December 31, 2023 (dollars in thousands):
| | Investment securities | |
| | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Bonds, notes & other debt instruments: | | | | | | | | | | | | | | | | |
Mortgage-backed obligations | | $ | — | | | $ | 6,126,986 | | | $ | 72,981 | | | $ | 6,199,967 | |
Corporate bonds, notes & loans | | | — | | | | 4,872,555 | | | | 19,890 | | | | 4,892,445 | |
U.S. Treasury bonds & notes | | | — | | | | 3,061,636 | | | | — | | | | 3,061,636 | |
Bonds & notes of governments & government agencies outside the U.S. | | | — | | | | 1,017,833 | | | | — | | | | 1,017,833 | |
Asset-backed obligations | | | — | | | | 907,374 | | | | 64,856 | | | | 972,230 | |
Municipals | | | — | | | | 241,991 | | | | — | | | | 241,991 | |
Federal agency bonds & notes | | | — | | | | 33,527 | | | | — | | | | 33,527 | |
Common stocks | | | 18,380 | | | | 126 | | | | 3,108 | | | | 21,614 | |
Preferred securities | | | — | | | | 146 | | | | — | | | | 146 | |
Rights & warrants | | | — | | | | 37 | | | | — | | | | 37 | |
Short-term securities | | | 2,660,737 | | | | — | | | | — | | | | 2,660,737 | |
Options purchased on futures (equity style) | | | 118,352 | | | | — | | | | — | | | | 118,352 | |
Total | | $ | 2,797,469 | | | $ | 16,262,211 | | | $ | 160,835 | | | $ | 19,220,515 | |
American Funds Strategic Bond Fund | 47 |
| | Other investments* | |
| | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Unrealized appreciation on futures contracts | | $ | 273,406 | | | $ | — | | | $ | — | | | $ | 273,406 | |
Unrealized appreciation on open forward currency contracts | | | — | | | | 35,188 | | | | — | | | | 35,188 | |
Unrealized appreciation on centrally cleared interest rate swaps | | | — | | | | 212,327 | | | | — | | | | 212,327 | |
Liabilities: | | | | | | | | | | | | | | | | |
Value of options written | | | (129,381 | ) | | | — | | | | — | | | | (129,381 | ) |
Unrealized depreciation on futures contracts | | | (282,953 | ) | | | — | | | | — | | | | (282,953 | ) |
Unrealized depreciation on open forward currency contracts | | | — | | | | (33,048 | ) | | | — | | | | (33,048 | ) |
Unrealized depreciation on centrally cleared interest rate swaps | | | — | | | | (134,910 | ) | | | — | | | | (134,910 | ) |
Unrealized depreciation on centrally cleared credit default swaps | | | — | | | | (177,999 | ) | | | — | | | | (177,999 | ) |
Total | | $ | (138,928 | ) | | $ | (98,442 | ) | | $ | — | | | $ | (237,370 | ) |
| |
* | Options written, futures contracts, forward currency contracts, interest rate swaps and credit default swaps are not included in the fund’s investment portfolio. |
4. Risk factors
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the securities held by the fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries or companies; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; changes in inflation rates; and currency exchange rate, interest rate and commodity price fluctuations.
Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease), bank failures and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the fund’s investments may be negatively affected by developments in other countries and regions.
Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in the issuer’s financial condition or credit rating, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives. An individual security may also be affected by factors relating to the industry or sector of the issuer or the securities markets as a whole, and conversely an industry or sector or the securities markets may be affected by a change in financial condition or other event affecting a single issuer.
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 factors such as the interest rates, maturities and credit quality of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Also, when interest rates rise, issuers of debt securities which may be prepaid at any time, such as mortgage- or other asset-backed securities, are less likely to refinance existing debt securities, causing the average life of such securities to extend. A general change in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Changes in actual or perceived creditworthiness may occur quickly. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit
48 | American Funds Strategic Bond Fund |
ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in assessing credit and default risks.
Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.
Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Notwithstanding that these securities are backed by the full faith and credit of the U.S. government, circumstances could arise that would prevent or delay the payment of interest or principal on these securities, which could adversely affect their value and cause the fund to suffer losses. Such an event could lead to significant disruptions in U.S. and global markets. Securities issued by U.S. 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. U.S. government securities are subject to market risk, interest rate risk and credit risk.
Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and the fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.
Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates —i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.
Investing in inflation-linked bonds may also reduce the fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the fund.
Investing in future delivery contracts — The fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve the fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While the fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions increase the turnover rate of the fund.
Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may cause the fund to lose significantly more than its initial investment. Derivatives may be difficult to value, difficult for the fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or
American Funds Strategic Bond Fund | 49 |
delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses. Derivatives are also subject to operational risk (such as documentation issues, settlement issues and systems failures) and legal risk (such as insufficient documentation, insufficient capacity or authority of a counterparty, and issues with the legality or enforceability of a contract).
Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile or difficult to determine, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or to try to limit losses, or may be forced to sell at a loss.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S. or with significant operations or revenues outside the U.S., and securities tied economically to countries outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers are domiciled, operate or generate revenue or to which the securities are tied economically. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls, sanctions, or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different regulatory, legal, accounting, auditing, financial reporting and recordkeeping requirements, 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, which could impact the liquidity of the fund’s portfolio. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries tend to have less developed political, economic and legal systems than those in developed countries. Accordingly, the governments of these countries may be less stable and more likely to intervene in the market economy, for example, by imposing capital controls, nationalizing a company or industry, placing restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or imposing punitive taxes that could adversely affect the prices of securities. Information regarding issuers in emerging markets may be limited, incomplete or inaccurate, and such issuers may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which issuers in more developed markets are subject. The fund’s rights with respect to its investments in emerging markets, if any, will generally be governed by local law, which may make it difficult or impossible for the fund to pursue legal remedies or to obtain and enforce judgments in local courts. In addition, the economies of these countries may be dependent on relatively few industries, may have limited access to capital and may be more susceptible to changes in local and global trade conditions and downturns in the world economy. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, more vulnerable to market manipulation, and more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.
Currency — The prices of, and the income generated by, many debt securities held by the fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of the fund’s securities denominated in such currencies would generally fall and vice versa.
Portfolio turnover — The fund may engage in frequent and active trading of its portfolio securities. Higher portfolio turnover may involve correspondingly greater transaction costs in the form of dealer spreads, brokerage commissions and other transaction costs on the sale of securities and on reinvestment in other securities. The sale of portfolio securities may also result in the realization of net capital gains, which are taxable when distributed to shareholders, unless the shareholder is exempt from taxation or his or her account is tax-favored. These costs and tax effects may adversely affect the fund’s returns to shareholders. The fund’s portfolio turnover rate may vary from year to year, as well as within a year.
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or
50 | American Funds Strategic Bond Fund |
incorrect and may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
5. Certain investment techniques
Index-linked bonds — The fund has invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.
Mortgage dollar rolls — The fund has entered into mortgage dollar roll transactions of TBA securities in which the fund sells a TBA mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar TBA security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions and may result in an increase to the fund’s portfolio turnover rate. Portfolio turnover rates excluding and including mortgage dollar rolls are presented at the end of the fund’s financial highlights table.
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.
Unfunded commitments — The fund has participated in transactions that involve unfunded commitments, which may obligate the fund to purchase new or additional bonds if certain contingencies are met. As of December 31, 2023, the fund’s maximum exposure of unfunded bond commitments was $947,000, which would represent less than .01% of the net assets of the fund should such commitments become due. Unrealized depreciation of $3,000 is disclosed as unrealized depreciation on unfunded commitments in the fund’s statement of assets and liabilities and is included in net unrealized appreciation on investments in unaffiliated issuers in the fund’s statement of operations.
Option contracts — The fund has entered into option contracts, which give the purchaser of the option, in return for a premium payment, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the reference instrument underlying the option (or the cash value of the instrument underlying the option) at a specified exercise price. The writer of an option on a security has the obligation, upon exercise of the option, to cash settle or deliver the underlying currency or instrument upon payment of the exercise price (in the case of a call) or to cash settle or take delivery of the underlying currency or instrument and pay the exercise price (in the case of a put).
By purchasing a put option, the fund obtains the right (but not the obligation) to sell the currency or instrument underlying the option (or to deliver the cash value of the instrument underlying the option) at a specified exercise price. In return for this right, the fund pays the current market price, or the option premium, for the option. The fund may terminate its position in a put option by allowing the option to expire or by exercising the option. If the option is allowed to expire, the fund will lose the entire amount of the premium paid. If the option is exercised, the fund completes the sale of the underlying instrument (or cash settles) at the exercise price. The fund may also terminate a put option position by entering into opposing close-out transactions in advance of the option expiration date.
The features of call options are essentially the same as those of put options, except that the purchaser of a call option obtains the right (but not the obligation) to purchase, rather than sell, the underlying currency or instrument (or cash settle) at the specified exercise price. The buyer of a call option typically attempts to participate in potential price increases of the underlying currency or instrument with risk limited to the cost of the option if the price of the underlying currency or instrument falls. At the same time, the call option buyer can expect to suffer a loss if the price of the underlying currency or instrument does not rise sufficiently to offset the cost of the option.
The writer of a put or call option takes the opposite side of the transaction from the option purchaser. In return for receipt of the option premium, the writer assumes the obligation to pay or receive the exercise price for the option’s underlying currency or instrument if the other party to the option chooses to exercise it. The writer may seek to terminate a position in a put option before exercise by entering into opposing close-out transactions in advance of the option expiration date. If the market for the relevant put option is not liquid, however, the writer must be prepared to pay the exercise price while the option is outstanding, regardless of price changes. Writing a call option obligates the writer to, upon exercise of the option, deliver the option’s underlying currency or instrument in return for the exercise price or to make a net cash settlement payment, as applicable. The characteristics of writing call options are similar to those of writing put options, except that writing call options is generally a profitable strategy if prices remain the same or fall. The potential gain for the option seller in such a transaction would be capped at the premium received.
American Funds Strategic Bond Fund | 51 |
Option contracts can be either equity style (premium is paid in full when the option is opened) or futures style (premium moves as part of variation margin over the life of the option, and is paid in full when the option is closed). For equity style options, premiums paid on options purchased, as well as the daily fluctuation in market value, are included in investment securities from unaffiliated issuers in the fund’s statement of asset and liabilities, and premiums received on options written, as well as the daily fluctuation in market value, are included in options written at value in the fund’s statement of assets and liabilities. For futures style options, on a daily basis for both purchased and written options, the fund pays or receives variation margin based on the premium paid and the daily fluctuation in market value, and records variation margin in the statement of assets and liabilities. Realized gains or losses are recorded at the time the option contract is closed or expires. For purchased options, the net realized gains or losses and net unrealized appreciation or depreciation from equity style options are recorded in investments in unaffiliated issuers in the fund’s statement of operations, and from futures style options are recorded in options purchased (futures style) in the fund’s statement of operations. For written options, the net realized gains or losses and net unrealized appreciation or depreciation are recorded in options written in the fund’s statement of operations.
Option contracts can take different forms. The fund has entered into the following types of option contracts:
Options on futures — The fund has entered into options on futures contracts to seek to manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. An option on a futures contract gives the purchaser of the option the right to buy or sell a position in a futures contract from or to the writer of the option, at a specified price on or before the specified expiration date. The average month-end notional amount of options on futures while held was $16,119,813,000.
Futures contracts — The fund has entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio.
Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, known as a futures commission merchant (“FCM”), in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract.
On a daily basis, the fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in the statement of assets and liabilities. Futures contracts may involve a risk of loss in excess of the variation margin shown on the fund’s statement of assets and liabilities. The fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in the fund’s statement of operations. The average month-end notional amount of futures contracts while held was $49,822,662,000.
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. The average month-end notional amount of open forward currency contracts while held was $2,108,176,000.
52 | American Funds Strategic Bond Fund |
Swap contracts — The fund has entered into swap agreements, which are two-party contracts entered into primarily by institutional investors for a specified time period. In a typical swap transaction, two parties agree to exchange the returns earned or realized from one or more underlying assets or rates of return. Swap agreements can be traded on a swap execution facility (SEF) and cleared through a central clearinghouse (cleared), traded over-the-counter (OTC) and cleared, or traded bilaterally and not cleared. Because clearing interposes a central clearinghouse as the ultimate counterparty to each participant’s swap, and margin is required to be exchanged under the rules of the clearinghouse, central clearing is intended to decrease (but not eliminate) counterparty risk relative to uncleared bilateral swaps. To the extent the fund enters into bilaterally negotiated swap transactions, the fund will enter into swap agreements only with counterparties that meet certain credit standards and subject to agreed collateralized procedures. The term of a swap can be days, months or years and certain swaps may be less liquid than others.
Upon entering into a centrally cleared 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 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, interest accruals related to the exchange of future payments are recorded as a receivable and payable in the fund’s statement of assets and liabilities for centrally cleared swaps and as unrealized appreciation or depreciation in the fund’s statement of assets and liabilities for bilateral swaps. For centrally cleared swaps, the fund also pays or receives a variation margin based on the increase or decrease in the value of the swaps, including accrued interest as applicable, and records variation margin in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from swaps are recorded in the fund’s statement of operations.
Swap agreements can take different forms. The fund has entered into the following types of swap agreements:
Interest rate swaps — The fund has entered into interest rate swaps, which seek to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. An interest rate swap is an agreement between two parties to exchange or swap payments based on changes in an interest rate or rates. Typically, one interest rate is fixed and the other is variable based on a designated short-term interest rate such as the Secured Overnight Financing Rate (SOFR), prime rate or other benchmark, or on an inflation index such as the U.S. Consumer Price Index (which is a measure that examines the weighted average of prices of a basket of consumer goods and services and measures changes in the purchasing power of the U.S. dollar and the rate of inflation). In other types of interest rate swaps, known as basis swaps, the parties agree to swap variable interest rates based on different designated short-term interest rates. Interest rate swaps generally do not involve the delivery of securities or other principal amounts. Rather, cash payments are exchanged by the parties based on the application of the designated interest rates to a notional amount, which is the predetermined dollar principal of the trade upon which payment obligations are computed. Accordingly, the fund’s current obligation or right under the swap agreement is generally equal to the net amount to be paid or received under the swap agreement based on the relative value of the position held by each party. The average month-end notional amount of interest rate swaps while held was $8,106,012,000.
Credit default swap indices — The fund has entered into centrally cleared credit default swap indices, including CDX and iTraxx indices (collectively referred to as “CDSI”), in order to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks. A CDSI is based on a portfolio of credit default swaps with similar characteristics, such as credit default swaps on high-yield bonds. In a typical CDSI transaction, one party (the protection buyer) is obligated to pay the other party (the protection seller) a stream of periodic payments over the term of the contract. If a credit event, such as a default or restructuring, occurs with respect to any of the underlying reference obligations, the protection seller must pay the protection buyer the loss on those credits.
American Funds Strategic Bond Fund | 53 |
The fund may enter into a CDSI transaction as either protection buyer or protection seller. If the fund is a protection buyer, it would pay the counterparty a periodic stream of payments over the term of the contract and would not recover any of those payments if no credit events were to occur with respect to any of the underlying reference obligations. However, if a credit event did occur, the fund, as a protection buyer, would have the right to deliver the referenced debt obligations or a specified amount of cash, depending on the terms of the applicable agreement, and to receive the par value of such debt obligations from the counterparty protection seller. As a protection seller, the fund would receive fixed payments throughout the term of the contract if no credit events were to occur with respect to any of the underlying reference obligations. If a credit event were to occur, however, the value of any deliverable obligation received by the fund, coupled with the periodic payments previously received by the fund, may be less than the full notional value that the fund, as a protection seller, pays to the counterparty protection buyer, effectively resulting in a loss of value to the fund. Furthermore, as a protection seller, the fund would effectively add leverage to its portfolio because it would have investment exposure to the notional amount of the swap transaction. The average month-end notional amount of credit default swaps while held was $5,002,764,000.
The following tables identify the location and fair value amounts on the fund’s statement of assets and liabilities and the effect on the fund’s statement of operations resulting from the fund’s use of option contracts, futures contracts, forward currency contracts, interest rate swaps and credit default swaps as of, or for the year ended, December 31, 2023 (dollars in thousands):
| | | | Assets | | | Liabilities | |
Contracts | | Risk type | | Location on statement of assets and liabilities | | Value | | | Location on statement of assets and liabilities | | Value | |
Options purchased (equity style) | | Interest | | Investment securities from unaffiliated issuers | | $ | 118,352 | | | Investment securities from unaffiliated issuers | | $ | — | |
Options written (equity style) | | Interest | | Options written, at value | | | — | | | Options written, at value | | | 129,381 | |
Futures | | Interest | | Unrealized appreciation* | | | 273,406 | | | Unrealized depreciation* | | | 282,953 | |
Forward currency | | Currency | | Unrealized appreciation on open forward currency contracts | | | 35,188 | | | Unrealized depreciation on open forward currency contracts | | | 33,048 | |
Swap (centrally cleared) | | Interest | | Unrealized appreciation* | | | 212,327 | | | Unrealized depreciation* | | | 134,910 | |
Swap (centrally cleared) | | Credit | | Unrealized appreciation* | | | — | | | Unrealized depreciation* | | | 177,999 | |
| | | | | | $ | 639,273 | | | | | $ | 758,291 | |
| | | | | | | | | | | | | | |
| | | | Net realized gain (loss) | | | Net unrealized appreciation (depreciation) | |
Contracts | | Risk type | | Location on statement of operations | | Value | | | Location on statement of operations | | Value | |
Options purchased (equity style) | | Interest | | Net realized loss on investments in unaffiliated issuers | | $ | (538 | ) | | Net unrealized appreciation on investments in unaffiliated issuers | | $ | 57,488 | |
Options purchased (futures style) | | Interest | | Net realized loss on options purchased (futures style) | | | (277 | ) | | Net unrealized appreciation on options purchased (futures style) | | | — | |
Options written | | Interest | | Net realized gain on options written | | | 434 | | | Net unrealized appreciation on options written | | | (67,161 | ) |
Futures | | Interest | | Net realized loss on futures contracts | | | (361,883 | ) | | Net unrealized depreciation on futures contracts | | | (152,316 | ) |
Forward currency | | Currency | | Net realized loss on forward currency contracts | | | (81,560 | ) | | Net unrealized depreciation on forward currency contracts | | | (18,949 | ) |
Swap | | Interest | | Net realized loss on swap contracts | | | (206,237 | ) | | Net unrealized appreciation on swap contracts | | | 328,027 | |
Swap | | Credit | | Net realized loss on swap contracts | | | (253,776 | ) | | Net unrealized depreciation on swap contracts | | | (68,878 | ) |
| | | | | | $ | (903,837 | ) | | | | $ | 78,211 | |
| |
* | Includes cumulative appreciation/depreciation on futures contracts, centrally cleared interest rate swaps and centrally cleared credit default swaps as reported in the applicable tables following the fund’s investment portfolio. Only current day’s variation margin is reported within the fund’s statement of assets and liabilities. |
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54 | American Funds Strategic Bond Fund |
Collateral — The fund receives or pledges highly liquid assets, such as cash or U.S. government securities, as collateral due to its use of option contracts, futures contracts, forward currency contracts, interest rate swaps, credit default swaps, total return swaps and future delivery contracts. For options on futures, futures contracts, centrally cleared interest rate swaps and centrally cleared credit default swaps, the fund pledges collateral for initial and variation margin by contract. For forward currency contracts, the fund either receives or pledges collateral based on the net gain or loss on unsettled contracts by counterparty. For future delivery contracts, the fund either receives or pledges collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by the fund, if any, is disclosed in the fund’s investment portfolio, and cash collateral pledged by the fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash collateral in the fund’s statement of assets and liabilities.
Rights of offset — The fund has entered into enforceable master netting agreements with certain counterparties for forward currency contracts, where on any date amounts payable by each party to the other (in the same currency with respect to the same transaction) may be closed or offset by each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statement of assets and liabilities.
The following table presents the fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the fund’s statement of assets and liabilities. The net amount column shows the impact of offsetting on the fund’s statement of assets and liabilities as of December 31, 2023, if close-out netting was exercised (dollars in thousands):
| | Gross amounts recognized in the statement of assets and liabilities | | | Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | | | | |
Counterparty | | | | Available to offset | | | Non-cash collateral* | | | Cash collateral* | | | Net amount | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Citibank | | $ | 6,662 | | | $ | (269 | ) | | $ | — | | | $ | (6,393 | ) | | $ | — | |
HSBC Bank | | | 703 | | | | (41 | ) | | | — | | | | (662 | ) | | | — | |
Morgan Stanley | | | 27,823 | | | | (20,370 | ) | | | — | | | | (2,015 | ) | | | 5,438 | |
Total | | $ | 35,188 | | | $ | (20,680 | ) | | $ | — | | | $ | (9,070 | ) | | $ | 5,438 | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Bank of America | | $ | 35 | | | $ | — | | | $ | — | | | $ | — | | | $ | 35 | |
Barclays Bank PLC | | | 3,127 | | | | — | | | | (2,995 | ) | | | — | | | | 132 | |
BNP Paribas | | | 4,162 | | | | — | | | | (3,560 | ) | | | (380 | ) | | | 222 | |
Citibank | | | 269 | | | | (269 | ) | | | — | | | | — | | | | — | |
Goldman Sachs | | | 3,427 | | | | — | | | | (3,369 | ) | | | — | | | | 58 | |
HSBC Bank | | | 41 | | | | (41 | ) | | | — | | | | — | | | | — | |
Morgan Stanley | | | 20,370 | | | | (20,370 | ) | | | — | | | | — | | | | — | |
Standard Chartered Bank | | | 14 | | | | — | | | | — | | | | — | | | | 14 | |
UBS AG | | | 1,603 | | | | — | | | | (1,383 | ) | | | — | | | | 220 | |
Total | | $ | 33,048 | | | $ | (20,680 | ) | | $ | (11,307 | ) | | $ | (380 | ) | | $ | 681 | |
| |
* | Collateral is shown on a settlement basis. |
| |
American Funds Strategic Bond Fund | 55 |
6. Taxation and distributions
Federal income taxation — The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies 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 year ended December 31, 2023, 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 year, the fund did not incur any significant interest or penalties.
The fund’s tax returns are generally not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is typically three years after the date of filing but can be extended in certain jurisdictions.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. The fund generally records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
Distributions — Distributions determined on a tax basis 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; deferred expenses; cost of investments sold; net capital losses; amortization of premiums and discounts 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.
During the year ended December 31, 2023, the fund reclassified $14,000 from total accumulated loss to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.
As of December 31, 2023, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):
Distributions in excess of ordinary income | | $ | 214,753 | |
Late year ordinary loss deferral1 | | | (322,900 | ) |
Capital loss carryforward2 | | | (1,504,394 | ) |
Gross unrealized appreciation on investments | | | 1,186,912 | |
Gross unrealized depreciation on investments | | | (1,859,141 | ) |
Net unrealized appreciation (depreciation) on investments | | | (672,229 | ) |
Cost of investments | | | 19,779,176 | |
| |
1 | This deferral is considered incurred in the subsequent year. |
2 | The capital loss carryforward will be used to offset any capital gains realized by the fund in future years. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
| |
56 | American Funds Strategic Bond Fund |
For the year ended December 31, 2023, the fund’s distributions exceeded total taxable income resulting in a return of capital for tax purposes. Distributions paid were characterized for tax purposes as follows (dollars in thousands):
| | Year ended December 31, 2023 | | | Year ended December 31, 2022 | |
Share class | | Ordinary income | | | Return of capital | | | Total paid | | | Ordinary income | | | Return of capital | | | Total distributions paid | |
Class A | | $ | 46,991 | | | $ | 28,611 | | | $ | 75,602 | | | $ | 115,711 | | | $ | 1,564 | | | $ | 117,275 | |
Class C | | | 1,351 | | | | 822 | | | | 2,173 | | | | 3,901 | | | | 53 | | | | 3,954 | |
Class T | | | — | 3 | | | — | 3 | | | — | 3 | | | 1 | | | | — | 3 | | | 1 | |
Class F-1 | | | 4,874 | | | | 2,968 | | | | 7,842 | | | | 14,822 | | | | 200 | | | | 15,022 | |
Class F-2 | | | 115,560 | | | | 70,361 | | | | 185,921 | | | | 236,506 | | | | 3,226 | | | | 239,732 | |
Class F-3 | | | 55,560 | | | | 33,829 | | | | 89,389 | | | | 106,928 | | | | 1,462 | | | | 108,390 | |
Class 529-A | | | 1,485 | | | | 904 | | | | 2,389 | | | | 3,780 | | | | 51 | | | | 3,831 | |
Class 529-C | | | 84 | | | | 51 | | | | 135 | | | | 288 | | | | 4 | | | | 292 | |
Class 529-E | | | 51 | | | | 31 | | | | 82 | | | | 156 | | | | 2 | | | | 158 | |
Class 529-T | | | — | 3 | | | — | 3 | | | — | 3 | | | 1 | | | | — | 3 | | | 1 | |
Class 529-F-1 | | | — | 3 | | | — | 3 | | | — | 3 | | | — | 3 | | | — | 3 | | | — | 3 |
Class 529-F-2 | | | 535 | | | | 326 | | | | 861 | | | | 1,296 | | | | 17 | | | | 1,313 | |
Class 529-F-3 | | | — | 3 | | | — | 3 | | | — | 3 | | | 1 | | | | — | 3 | | | 1 | |
Class R-1 | | | 19 | | | | 11 | | | | 30 | | | | 69 | | | | 1 | | | | 70 | |
Class R-2 | | | 115 | | | | 70 | | | | 185 | | | | 258 | | | | 4 | | | | 262 | |
Class R-2E | | | 54 | | | | 33 | | | | 87 | | | | 114 | | | | 2 | | | | 116 | |
Class R-3 | | | 271 | | | | 165 | | | | 436 | | | | 567 | | | | 8 | | | | 575 | |
Class R-4 | | | 431 | | | | 263 | | | | 694 | | | | 870 | | | | 12 | | | | 882 | |
Class R-5E | | | 111 | | | | 68 | | | | 179 | | | | 229 | | | | 3 | | | | 232 | |
Class R-5 | | | 210 | | | | 128 | | | | 338 | | | | 218 | | | | 3 | | | | 221 | |
Class R-6 | | | 125,006 | | | | 76,112 | | | | 201,118 | | | | 267,146 | | | | 3,662 | | | | 270,808 | |
Total | | $ | 352,708 | | | $ | 214,753 | | | $ | 567,461 | | | $ | 752,862 | | | $ | 10,274 | | | $ | 763,136 | |
| |
3 | Amount less than one thousand. |
7. Fees and transactions with related parties
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors®, Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.
Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.280% on the first $15 billion of daily net assets and decreasing to 0.245% on such assets in excess of $15 billion. During the year ended December 31, 2023, CRMC waived investment advisory services fees of $63,000. CRMC does not intend to recoup this waiver. As a result, the fees shown on the fund’s statement of operations of $48,218,000 were reduced to $48,155,000, both of which were equivalent to an annualized rate of 0.275% of average daily net assets.
American Funds Strategic Bond Fund | 57 |
Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are further described below:
Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, 529-F-2, 529-F-3, R-5E, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted in this section. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
Share class | | Currently approved limits | | Plan limits |
Class A | | | 0.30 | % | | | 0.30 | % |
Class 529-A | | | 0.30 | | | | 0.50 | |
Classes C, 529-C and R-1 | | | 1.00 | | | | 1.00 | |
Class R-2 | | | 0.75 | | | | 1.00 | |
Class R-2E | | | 0.60 | | | | 0.85 | |
Classes 529-E and R-3 | | | 0.50 | | | | 0.75 | |
Classes T, F-1, 529-T, 529-F-1 and R-4 | | | 0.25 | | | | 0.50 | |
For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limits are not exceeded. As of December 31, 2023, unreimbursed expenses subject to reimbursement totaled $912,000 for Class A shares. There were no unreimbursed expenses subject to reimbursement for Class 529-A shares.
Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to all share classes. Administrative services are provided by CRMC and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in-depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides the fund the ability to charge an administrative services fee at the annual rate of 0.05% of the average daily net assets attributable to each share class of the fund. Currently the fund pays CRMC an administrative services fee at the annual rate of 0.03% of the average daily net assets attributable to each share class of the fund for CRMC’s provision of administrative services.
529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the CollegeAmerica 529 college savings plan. The fees are based on the combined net assets invested in Class 529 and ABLE shares of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica®, a tax-advantaged savings program for individuals with disabilities. Virginia529 is not considered a related party to the fund.
The quarterly fees are based on a series of decreasing annual rates beginning with 0.09% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $75 billion. The fees for any given calendar quarter are accrued and calculated on the basis of the average net assets of Class 529 and ABLE shares of the American Funds for the last month of the prior calendar quarter. For the year ended December 31, 2023, the 529 plan services fees were $70,000, which were equivalent to 0.059% of the average daily net assets of each 529 share class.
58 | American Funds Strategic Bond Fund |
For the year ended December 31, 2023, 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 | | | $7,692 | | | | $2,771 | | | | $769 | | | | Not applicable | |
Class C | | | 977 | | | | 106 | | | | 29 | | | | Not applicable | |
Class T | | | — | | | | — | * | | | — | * | | | Not applicable | |
Class F-1 | | | 713 | | | | 356 | | | | 86 | | | | Not applicable | |
Class F-2 | | | Not applicable | | | | 5,848 | | | | 1,725 | | | | Not applicable | |
Class F-3 | | | Not applicable | | | | 22 | | | | 791 | | | | Not applicable | |
Class 529-A | | | 190 | | | | 83 | | | | 24 | | | | $48 | |
Class 529-C | | | 65 | | | | 7 | | | | 2 | | | | 4 | |
Class 529-E | | | 16 | | | | 1 | | | | 1 | | | | 2 | |
Class 529-T | | | — | | | | — | * | | | — | * | | | — | * |
Class 529-F-1 | | | — | | | | — | * | | | — | * | | | — | * |
Class 529-F-2 | | | Not applicable | | | | 8 | | | | 8 | | | | 16 | |
Class 529-F-3 | | | Not applicable | | | | — | * | | | — | * | | | — | * |
Class R-1 | | | 13 | | | | 1 | | | | — | * | | | Not applicable | |
Class R-2 | | | 61 | | | | 23 | | | | 3 | | | | Not applicable | |
Class R-2E | | | 20 | | | | 7 | | | | 1 | | | | Not applicable | |
Class R-3 | | | 77 | | | | 21 | | | | 5 | | | | Not applicable | |
Class R-4 | | | 57 | | | | 18 | | | | 7 | | | | Not applicable | |
Class R-5E | | | Not applicable | | | | 8 | | | | 2 | | | | Not applicable | |
Class R-5 | | | Not applicable | | | | 5 | | | | 3 | | | | Not applicable | |
Class R-6 | | | Not applicable | | | | 50 | | | | 1,806 | | | | Not applicable | |
Total class-specific expenses | | | $9,881 | | | | $9,335 | | | | $5,262 | | | | $70 | |
| |
* | Amount less than one thousand. |
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $66,000 in the fund’s statement of operations reflects $63,000 in current fees (either paid in cash or deferred) and a net increase of $3,000 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.
Investment in CCF — The fund holds shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for the fund’s short-term instruments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC or its affiliates, and are not available to the public. CRMC does not receive an investment advisory services fee from CCF.
Security transactions with related funds — The fund may purchase investment securities from, or sell investment securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act. During the year ended December 31, 2023, the fund did not engage in any such purchase or sale transactions with any related funds.
Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the year ended December 31, 2023.
American Funds Strategic Bond Fund | 59 |
8. Indemnifications
The fund’s organizational documents provide board members and officers with indemnification against certain liabilities or expenses in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown since it is dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote. Insurance policies are also available to the fund’s board members and officers.
9. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| | Sales* | | | Reinvestments of distributions | | | Repurchases* | | | Net increase (decrease) | |
Share class | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Year ended December 31, 2023 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Class A | | $ | 924,561 | | | | 99,048 | | | $ | 75,128 | | | | 8,103 | | | $ | (583,406 | ) | | | (63,062 | ) | | $ | 416,283 | | | | 44,089 | |
Class C | | | 41,189 | | | | 4,391 | | | | 2,162 | | | | 235 | | | | (34,989 | ) | | | (3,800 | ) | | | 8,362 | | | | 826 | |
Class T | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class F-1 | | | 138,698 | | | | 14,689 | | | | 7,824 | | | | 842 | | | | (235,311 | ) | | | (25,865 | ) | | | (88,789 | ) | | | (10,334 | ) |
Class F-2 | | | 3,472,887 | | | | 370,595 | | | | 181,683 | | | | 19,579 | | | | (2,893,879 | ) | | | (315,253 | ) | | | 760,691 | | | | 74,921 | |
Class F-3 | | | 1,529,253 | | | | 163,548 | | | | 87,364 | | | | 9,427 | | | | (930,160 | ) | | | (100,888 | ) | | | 686,457 | | | | 72,087 | |
Class 529-A | | | 29,598 | | | | 3,182 | | | | 2,388 | | | | 257 | | | | (22,692 | ) | | | (2,447 | ) | | | 9,294 | | | | 992 | |
Class 529-C | | | 3,731 | | | | 395 | | | | 135 | | | | 15 | | | | (4,538 | ) | | | (493 | ) | | | (672 | ) | | | (83 | ) |
Class 529-E | | | 683 | | | | 72 | | | | 83 | | | | 9 | | | | (1,121 | ) | | | (121 | ) | | | (355 | ) | | | (40 | ) |
Class 529-T | | | — | | | | — | | | | — | † | | | — | † | | | — | | | | — | | | | — | † | | | — | † |
Class 529-F-1 | | | — | | | | — | | | | — | † | | | — | † | | | — | | | | — | | | | — | † | | | — | † |
Class 529-F-2 | | | 10,336 | | | | 1,113 | | | | 860 | | | | 93 | | | | (7,368 | ) | | | (794 | ) | | | 3,828 | | | | 412 | |
Class 529-F-3 | | | — | | | | — | | | | — | † | | | — | † | | | — | | | | — | | | | — | † | | | — | † |
Class R-1 | | | 295 | | | | 31 | | | | 30 | | | | 3 | | | | (148 | ) | | | (15 | ) | | | 177 | | | | 19 | |
Class R-2 | | | 5,057 | | | | 534 | | | | 185 | | | | 20 | | | | (4,282 | ) | | | (473 | ) | | | 960 | | | | 81 | |
Class R-2E | | | 1,629 | | | | 174 | | | | 87 | | | | 10 | | | | (970 | ) | | | (104 | ) | | | 746 | | | | 80 | |
Class R-3 | | | 10,851 | | | | 1,162 | | | | 435 | | | | 47 | | | | (4,889 | ) | | | (521 | ) | | | 6,397 | | | | 688 | |
Class R-4 | | | 9,663 | | | | 1,038 | | | | 692 | | | | 74 | | | | (4,314 | ) | | | (465 | ) | | | 6,041 | | | | 647 | |
Class R-5E | | | 1,729 | | | | 186 | | | | 173 | | | | 18 | | | | (1,665 | ) | | | (177 | ) | | | 237 | | | | 27 | |
Class R-5 | | | 8,814 | | | | 928 | | | | 330 | | | | 36 | | | | (2,111 | ) | | | (230 | ) | | | 7,033 | | | | 734 | |
Class R-6 | | | 947,024 | | | | 101,563 | | | | 200,469 | | | | 21,576 | | | | (374,433 | ) | | | (40,145 | ) | | | 773,060 | | | | 82,994 | |
Total net increase (decrease) | | $ | 7,135,998 | | | | 762,649 | | | $ | 560,028 | | | | 60,344 | | | $ | (5,106,276 | ) | | | (554,853 | ) | | $ | 2,589,750 | | | | 268,140 | |
Refer to the end of the table for footnotes.
60 | American Funds Strategic Bond Fund |
| | Sales* | | | Reinvestments of distributions | | | Repurchases* | | | Net increase (decrease) | |
Share class | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | |
| | | | | | | | | | | | | | | | | | |
Year ended December 31, 2022 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,014,827 | | | | 98,010 | | | $ | 116,524 | | | | 11,882 | | | $ | (557,717 | ) | | | (54,740 | ) | | $ | 573,634 | | | | 55,152 | |
Class C | | | 39,293 | | | | 3,811 | | | | 3,945 | | | | 406 | | | | (42,915 | ) | | | (4,144 | ) | | | 323 | | | | 73 | |
Class T | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class F-1 | | | 224,573 | | | | 22,060 | | | | 14,984 | | | | 1,528 | | | | (217,743 | ) | | | (21,440 | ) | | | 21,814 | | | | 2,148 | |
Class F-2 | | | 4,288,636 | | | | 422,518 | | | | 238,583 | | | | 24,432 | | | | (1,886,924 | ) | | | (186,116 | ) | | | 2,640,295 | | | | 260,834 | |
Class F-3 | | | 1,902,351 | | | | 184,608 | | | | 106,710 | | | | 10,926 | | | | (672,654 | ) | | | (66,935 | ) | | | 1,336,407 | | | | 128,599 | |
Class 529-A | | | 24,226 | | | | 2,341 | | | | 3,829 | | | | 390 | | | | (19,088 | ) | | | (1,840 | ) | | | 8,967 | | | | 891 | |
Class 529-C | | | 2,335 | | | | 225 | | | | 292 | | | | 30 | | | | (3,406 | ) | | | (329 | ) | | | (779 | ) | | | (74 | ) |
Class 529-E | | | 407 | | | | 39 | | | | 158 | | | | 16 | | | | (671 | ) | | | (65 | ) | | | (106 | ) | | | (10 | ) |
Class 529-T | | | — | | | | — | | | | 1 | | | | — | † | | | — | | | | — | | | | 1 | | | | — | † |
Class 529-F-1 | | | — | | | | — | | | | — | † | | | — | † | | | — | | | | — | | | | — | † | | | — | † |
Class 529-F-2 | | | 9,296 | | | | 885 | | | | 1,312 | | | | 133 | | | | (6,303 | ) | | | (608 | ) | | | 4,305 | | | | 410 | |
Class 529-F-3 | | | — | | | | — | | | | — | † | | | — | † | | | — | | | | — | | | | — | † | | | — | † |
Class R-1 | | | 1,591 | | | | 147 | | | | 70 | | | | 7 | | | | (1,396 | ) | | | (140 | ) | | | 265 | | | | 14 | |
Class R-2 | | | 2,103 | | | | 205 | | | | 261 | | | | 27 | | | | (2,467 | ) | | | (234 | ) | | | (103 | ) | | | (2 | ) |
Class R-2E | | | 2,357 | | | | 228 | | | | 115 | | | | 12 | | | | (572 | ) | | | (54 | ) | | | 1,900 | | | | 186 | |
Class R-3 | | | 7,906 | | | | 762 | | | | 574 | | | | 59 | | | | (5,289 | ) | | | (516 | ) | | | 3,191 | | | | 305 | |
Class R-4 | | | 9,733 | | | | 984 | | | | 880 | | | | 90 | | | | (4,776 | ) | | | (471 | ) | | | 5,837 | | | | 603 | |
Class R-5E | | | 4,581 | | | | 457 | | | | 220 | | | | 23 | | | | (749 | ) | | | (74 | ) | | | 4,052 | | | | 406 | |
Class R-5 | | | 4,351 | | | | 419 | | | | 201 | | | | 21 | | | | (2,136 | ) | | | (202 | ) | | | 2,416 | | | | 238 | |
Class R-6 | | | 3,396,111 | | | | 330,417 | | | | 269,679 | | | | 27,661 | | | | (289,598 | ) | | | (28,746 | ) | | | 3,376,192 | | | | 329,332 | |
Total net increase (decrease) | | $ | 10,934,677 | | | | 1,068,116 | | | $ | 758,338 | | | | 77,643 | | | $ | (3,714,404 | ) | | | (366,654 | ) | | $ | 7,978,611 | | | | 779,105 | |
| |
* | Includes exchanges between share classes of the fund. |
† | Amount less than one thousand. |
10. Investment transactions
The fund engaged in purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $87,091,628,000 and $82,697,112,000, respectively, during the year ended December 31, 2023.
American Funds Strategic Bond Fund | 61 |
Financial highlights
| | | | | Income (loss) from investment operations1 | | | Dividends, distributions and return of capital | | | | | | | | | | | | | | | | | | | |
Year ended | | Net asset value, beginning of year | | | Net investment income | | | Net (losses) gains on securities (both realized and unrealized) | | | Total from investment operations | | | Dividends (from net investment income) | | | Distributions (from capital gains) | | | Return of capital | | | Total dividends, distributions and return of capital | | | Net assets value, end of year | | | Total return2,3 | | | Net assets, end of year (in millions) | | | Ratio of expenses to average net assets before waivers/ reimburse- ments4 | | | Ratio of expenses to average net assets after waivers/ reimburse- ments3,4 | | | Ratio of net income to average net assets3 | |
Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | $ | 9.42 | | | $ | .40 | | | $ | (.26 | ) | | $ | .14 | ) | | $ | (.17 | ) | | $ | — | | | $ | (.10 | ) | | $ | (.27 | ) | | $ | 9.29 | | | | 1.52 | % | | $ | 2,741 | | | | .73 | % | | | .73 | % | | | 4.29 | % |
12/31/2022 | | | 11.36 | | | | .39 | | | | (1.83 | ) | | | (1.44 | ) | | | (.49 | ) | | | — | | | | (.01 | ) | | | (.50 | ) | | | 9.42 | | | | (12.72 | ) | | | 2,364 | | | | .73 | | | | .73 | | | | 3.78 | |
12/31/2021 | | | 11.68 | | | | .28 | | | | (.40 | ) | | | (.12 | ) | | | (.20 | ) | | | — | | | | — | | | | (.20 | ) | | | 11.36 | | | | (1.13 | ) | | | 2,224 | | | | .75 | | | | .75 | | | | 2.45 | |
12/31/2020 | | | 10.28 | | | | .15 | | | | 1.70 | | | | 1.85 | | | | (.22 | ) | | | (.23 | ) | | | — | | | | (.45 | ) | | | 11.68 | | | | 18.09 | | | | 1,681 | | | | .85 | | | | .83 | | | | 1.33 | |
12/31/2019 | | | 9.83 | | | | .23 | | | | .54 | | | | .77 | | | | (.10 | ) | | | (.22 | ) | | | — | | | | (.32 | ) | | | 10.28 | | | | 7.84 | | | | 669 | | | | .96 | | | | .95 | | | | 2.28 | |
Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.36 | | | | .33 | | | | (.25 | ) | | | .08 | | | | (.13 | ) | | | — | | | | (.08 | ) | | | (.21 | ) | | | 9.23 | | | | .82 | | | | 96 | | | | 1.43 | | | | 1.43 | | | | 3.58 | |
12/31/2022 | | | 11.30 | | | | .31 | | | | (1.82 | ) | | | (1.51 | ) | | | (.42 | ) | | | — | | | | (.01 | ) | | | (.43 | ) | | | 9.36 | | | | (13.41 | ) | | | 90 | | | | 1.43 | | | | 1.43 | | | | 3.05 | |
12/31/2021 | | | 11.61 | | | | .19 | | | | (.39 | ) | | | (.20 | ) | | | (.11 | ) | | | — | | | | — | | | | (.11 | ) | | | 11.30 | | | | (1.77 | ) | | | 108 | | | | 1.46 | | | | 1.45 | | | | 1.70 | |
12/31/2020 | | | 10.23 | | | | .07 | | | | 1.69 | | | | 1.76 | | | | (.15 | ) | | | (.23 | ) | | | — | | | | (.38 | ) | | | 11.61 | | | | 17.16 | | | | 125 | | | | 1.54 | | | | 1.53 | | | | .62 | |
12/31/2019 | | | 9.80 | | | | .16 | | | | .53 | | | | .69 | | | | (.04 | ) | | | (.22 | ) | | | — | | | | (.26 | ) | | | 10.23 | | | | 7.13 | | | | 35 | | | | 1.67 | | | | 1.66 | | | | 1.56 | |
Class T: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.42 | | | | .43 | | | | (.26 | ) | | | .17 | | | | (.19 | ) | | | — | | | | (.11 | ) | | | (.30 | ) | | | 9.29 | | | | 1.88 | 5 | | | — | 6 | | | .37 | 5 | | | .37 | 5 | | | 4.62 | 5 |
12/31/2022 | | | 11.36 | | | | .42 | | | | (1.83 | ) | | | (1.41 | ) | | | (.52 | ) | | | — | | | | (.01 | ) | | | (.53 | ) | | | 9.42 | | | | (12.55 | )5 | | | — | 6 | | | .43 | 5 | | | .43 | 5 | | | 4.06 | 5 |
12/31/2021 | | | 11.69 | | | | .31 | | | | (.41 | ) | | | (.10 | ) | | | (.23 | ) | | | — | | | | — | | | | (.23 | ) | | | 11.36 | | | | (.85 | )5 | | | — | 6 | | | .46 | 5 | | | .45 | 5 | | | 2.70 | 5 |
12/31/2020 | | | 10.28 | | | | .18 | | | | 1.71 | | | | 1.89 | | | | (.25 | ) | | | (.23 | ) | | | — | | | | (.48 | ) | | | 11.69 | | | | 18.37 | 5 | | | — | 6 | | | .58 | 5 | | | .56 | 5 | | | 1.61 | 5 |
12/31/2019 | | | 9.83 | | | | .26 | | | | .54 | | | | .80 | | | | (.13 | ) | | | (.22 | ) | | | — | | | | (.35 | ) | | | 10.28 | | | | 8.22 | 5 | | | — | 6 | | | .69 | 5 | | | .68 | 5 | | | 2.57 | 5 |
Class F-1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.41 | | | | .40 | | | | (.26 | ) | | | .14 | | | | (.17 | ) | | | — | | | | (.10 | ) | | | (.27 | ) | | | 9.28 | | | | 1.63 | | | | 188 | | | | .70 | | | | .69 | | | | 4.28 | |
12/31/2022 | | | 11.34 | | | | .39 | | | | (1.81 | ) | | | (1.42 | ) | | | (.50 | ) | | | — | | | | (.01 | ) | | | (.51 | ) | | | 9.41 | | | | (12.82 | ) | | | 288 | | | | .71 | | | | .71 | | | | 3.78 | |
12/31/2021 | | | 11.66 | | | | .28 | | | | (.40 | ) | | | (.12 | ) | | | (.20 | ) | | | — | | | | — | | | | (.20 | ) | | | 11.34 | | | | (1.04 | ) | | | 323 | | | | .74 | | | | .73 | | | | 2.45 | |
12/31/2020 | | | 10.28 | | | | .15 | | | | 1.69 | | | | 1.84 | | | | (.23 | ) | | | (.23 | ) | | | — | | | | (.46 | ) | | | 11.66 | | | | 18.02 | | | | 289 | | | | .79 | | | | .78 | | | | 1.30 | |
12/31/2019 | | | 9.82 | | | | .24 | | | | .54 | | | | .78 | | | | (.10 | ) | | | (.22 | ) | | | — | | | | (.32 | ) | | | 10.28 | | | | 7.94 | | | | 13 | | | | .95 | | | | .95 | | | | 2.29 | |
Class F-2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.42 | | | | .43 | | | | (.26 | ) | | | .17 | | | | (.19 | ) | | | — | | | | (.11 | ) | | | (.30 | ) | | | 9.29 | | | | 1.82 | | | | 5,620 | | | | .42 | | | | .42 | | | | 4.60 | |
12/31/2022 | | | 11.36 | | | | .42 | | | | (1.83 | ) | | | (1.41 | ) | | | (.52 | ) | | | — | | | | (.01 | ) | | | (.53 | ) | | | 9.42 | | | | (12.55 | ) | | | 4,992 | | | | .44 | | | | .44 | | | | 4.09 | |
12/31/2021 | | | 11.68 | | | | .32 | | | | (.41 | ) | | | (.09 | ) | | | (.23 | ) | | | — | | | | — | | | | (.23 | ) | | | 11.36 | | | | (.77 | ) | | | 3,056 | | | | .47 | | | | .46 | | | | 2.78 | |
12/31/2020 | | | 10.28 | | | | .19 | | | | 1.69 | | | | 1.88 | | | | (.25 | ) | | | (.23 | ) | | | — | | | | (.48 | ) | | | 11.68 | | | | 18.31 | | | | 1,680 | | | | .53 | | | | .52 | | | | 1.58 | |
12/31/2019 | | | 9.83 | | | | .26 | | | | .54 | | | | .80 | | | | (.13 | ) | | | (.22 | ) | | | — | | | | (.35 | ) | | | 10.28 | | | | 8.23 | | | | 124 | | | | .67 | | | | .66 | | | | 2.56 | |
Class F-3: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.42 | | | | .44 | | | | (.26 | ) | | | .18 | | | | (.19 | ) | | | — | | | | (.12 | ) | | | (.31 | ) | | | 9.29 | | | | 1.93 | | | | 2,828 | | | | .32 | | | | .32 | | | | 4.72 | |
12/31/2022 | | | 11.36 | | | | .43 | | | | (1.83 | ) | | | (1.40 | ) | | | (.53 | ) | | | — | | | | (.01 | ) | | | (.54 | ) | | | 9.42 | | | | (12.46 | ) | | | 2,188 | | | | .33 | | | | .33 | | | | 4.21 | |
12/31/2021 | | | 11.68 | | | | .33 | | | | (.41 | ) | | | (.08 | ) | | | (.24 | ) | | | — | | | | — | | | | (.24 | ) | | | 11.36 | | | | (.67 | ) | | | 1,179 | | | | .37 | | | | .36 | | | | 2.89 | |
12/31/2020 | | | 10.28 | | | | .20 | | | | 1.69 | | | | 1.89 | | | | (.26 | ) | | | (.23 | ) | | | — | | | | (.49 | ) | | | 11.68 | | | | 18.51 | | | | 549 | | | | .45 | | | | .44 | | | | 1.69 | |
12/31/2019 | | | 9.82 | | | | .28 | | | | .54 | | | | .82 | | | | (.14 | ) | | | (.22 | ) | | | — | | | | (.36 | ) | | | 10.28 | | | | 8.34 | | | | 82 | | | | .56 | | | | .56 | | | | 2.68 | |
Class 529-A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.41 | | | | .40 | | | | (.26 | ) | | | .14 | | | | (.17 | ) | | | — | | | | (.10 | ) | | | (.27 | ) | | | 9.28 | | | | 1.53 | | | | 85 | | | | .71 | | | | .71 | | | | 4.29 | |
12/31/2022 | | | 11.35 | | | | .39 | | | | (1.83 | ) | | | (1.44 | ) | | | (.49 | ) | | | — | | | | (.01 | ) | | | (.50 | ) | | | 9.41 | | | | (12.74 | ) | | | 77 | | | | .72 | | | | .72 | | | | 3.79 | |
12/31/2021 | | | 11.67 | | | | .28 | | | | (.40 | ) | | | (.12 | ) | | | (.20 | ) | | | — | | | | — | | | | (.20 | ) | | | 11.35 | | | | (1.13 | ) | | | 83 | | | | .75 | | | | .74 | | | | 2.45 | |
12/31/2020 | | | 10.27 | | | | .15 | | | | 1.70 | | | | 1.85 | | | | (.22 | ) | | | (.23 | ) | | | — | | | | (.45 | ) | | | 11.67 | | | | 18.13 | | | | 69 | | | | .84 | | | | .82 | | | | 1.35 | |
12/31/2019 | | | 9.82 | | | | .23 | | | | .54 | | | | .77 | | | | (.10 | ) | | | (.22 | ) | | | — | | | | (.32 | ) | | | 10.27 | | | | 7.83 | | | | 33 | | | | .96 | | | | .95 | | | | 2.28 | |
Refer to the end of the table for footnotes.
62 | American Funds Strategic Bond Fund |
Financial highlights (continued)
| | | | | Income (loss) from investment operations1 | | | Dividends, distributions and return of capital | | | | | | | | | | | | | | | | | | | |
Year ended | | Net asset value, beginning of year | | | Net investment income | | | Net (losses) gains on securities (both realized and unrealized) | | | Total from investment operations | | | Dividends (from net investment income) | | | Distributions (from capital gains) | | | Return of capital | | | Total dividends, distributions and return of capital | | | Net assets value, end of year | | | Total return2,3 | | | Net assets, end of year (in millions) | | | Ratio of expenses to average net assets before waivers/ reimburse- ments4 | | | Ratio of expenses to average net assets after waivers/ reimburse- ments3,4 | | | Ratio of net income to average net assets3 | |
Class 529-C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | $ | 9.37 | | | $ | .32 | | | $ | (.26 | ) | | $ | .06 | | | $ | (.12 | ) | | $ | — | | | $ | (.07 | ) | | $ | (.19 | ) | | $ | 9.24 | | | | .74 | % | | $ | 6 | | | | 1.48 | % | | | 1.48 | % | | | 3.50 | % |
12/31/2022 | | | 11.30 | | | | .31 | | | | (1.82 | ) | | | (1.51 | ) | | | (.41 | ) | | | — | | | | (.01 | ) | | | (.42 | ) | | | 9.37 | | | | (13.46 | ) | | | 7 | | | | 1.49 | | | | 1.49 | | | | 3.01 | |
12/31/2021 | | | 11.62 | | | | .19 | | | | (.40 | ) | | | (.21 | ) | | | (.11 | ) | | | — | | | | — | | | | (.11 | ) | | | 11.30 | | | | (1.81 | ) | | | 9 | | | | 1.51 | | | | 1.50 | | | | 1.66 | |
12/31/2020 | | | 10.23 | | | | .07 | | | | 1.68 | | | | 1.75 | | | | (.13 | ) | | | (.23 | ) | | | — | | | | (.36 | ) | | | 11.62 | | | | 17.17 | | | | 9 | | | | 1.63 | | | | 1.61 | | | | .59 | |
12/31/2019 | | | 9.80 | | | | .15 | | | | .53 | | | | .68 | | | | (.03 | ) | | | (.22 | ) | | | — | | | | (.25 | ) | | | 10.23 | | | | 7.09 | | | | 9 | | | | 1.73 | | | | 1.72 | | | | 1.50 | |
Class 529-E: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.41 | | | | .38 | | | | (.25 | ) | | | .13 | | | | (.16 | ) | | | — | | | | (.10 | ) | | | (.26 | ) | | | 9.28 | | | | 1.32 | | | | 3 | | | | .91 | | | | .91 | | | | 4.07 | |
12/31/2022 | | | 11.35 | | | | .37 | | | | (1.83 | ) | | | (1.46 | ) | | | (.47 | ) | | | — | | | | (.01 | ) | | | (.48 | ) | | | 9.41 | | | | (12.99 | ) | | | 3 | | | | .92 | | | | .92 | | | | 3.57 | |
12/31/2021 | | | 11.67 | | | | .25 | | | | (.40 | ) | | | (.15 | ) | | | (.17 | ) | | | — | | | | — | | | | (.17 | ) | | | 11.35 | | | | (1.26 | ) | | | 4 | | | | .96 | | | | .95 | | | | 2.18 | |
12/31/2020 | | | 10.27 | | | | .13 | | | | 1.70 | | | | 1.83 | | | | (.20 | ) | | | (.23 | ) | | | — | | | | (.43 | ) | | | 11.67 | | | | 17.75 | | | | 4 | | | | 1.05 | | | | 1.03 | | | | 1.12 | |
12/31/2019 | | | 9.82 | | | | .21 | | | | .54 | | | | .75 | | | | (.08 | ) | | | (.22 | ) | | | — | | | | (.30 | ) | | | 10.27 | | | | 7.73 | | | | 2 | | | | 1.16 | | | | 1.15 | | | | 2.08 | |
Class 529-T: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.43 | | | | .42 | | | | (.26 | ) | | | .16 | | | | (.18 | ) | | | — | | | | (.11 | ) | | | (.29 | ) | | | 9.30 | | | | 1.82 | 5 | | | — | 6 | | | .43 | 5 | | | .43 | 5 | | | 4.55 | 5 |
12/31/2022 | | | 11.37 | | | | .41 | | | | (1.82 | ) | | | (1.41 | ) | | | (.52 | ) | | | — | | | | (.01 | ) | | | (.53 | ) | | | 9.43 | | | | (12.58 | )5 | | | — | 6 | | | .49 | 5 | | | .49 | 5 | | | 4.00 | 5 |
12/31/2021 | | | 11.69 | | | | .30 | | | | (.40 | ) | | | (.10 | ) | | | (.22 | ) | | | — | | | | — | | | | (.22 | ) | | | 11.37 | | | | (.83 | )5 | | | — | 6 | | | .53 | 5 | | | .52 | 5 | | | 2.64 | 5 |
12/31/2020 | | | 10.29 | | | | .18 | | | | 1.69 | | | | 1.87 | | | | (.24 | ) | | | (.23 | ) | | | — | | | | (.47 | ) | | | 11.69 | | | | 18.30 | 5 | | | — | 6 | | | .64 | 5 | | | .62 | 5 | | | 1.57 | 5 |
12/31/2019 | | | 9.83 | | | | .26 | | | | .54 | | | | .80 | | | | (.12 | ) | | | (.22 | ) | | | — | | | | (.34 | ) | | | 10.29 | | | | 8.15 | 5 | | | — | 6 | | | .74 | 5 | | | .73 | 5 | | | 2.52 | 5 |
Class 529-F-1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.42 | | | | .42 | | | | (.27 | ) | | | .15 | | | | (.18 | ) | | | — | | | | (.11 | ) | | | (.29 | ) | | | 9.28 | | | | 1.75 | 5 | | | — | 6 | | | .50 | 5 | | | .50 | 5 | | | 4.50 | 5 |
12/31/2022 | | | 11.35 | | | | .41 | | | | (1.82 | ) | | | (1.41 | ) | | | (.51 | ) | | | — | | | | (.01 | ) | | | (.52 | ) | | | 9.42 | | | | (12.63 | )5 | | | — | 6 | | | .52 | 5 | | | .52 | 5 | | | 3.96 | 5 |
12/31/2021 | | | 11.68 | | | | .30 | | | | (.41 | ) | | | (.11 | ) | | | (.22 | ) | | | — | | | | — | | | | (.22 | ) | | | 11.35 | | | | (.94 | )5 | | | — | 6 | | | .55 | 5 | | | .54 | 5 | | | 2.60 | 5 |
12/31/2020 | | | 10.28 | | | | .18 | | | | 1.70 | | | | 1.88 | | | | (.25 | ) | | | (.23 | ) | | | — | | | | (.48 | ) | | | 11.68 | | | | 18.35 | 5 | | | — | 6 | | | .63 | 5 | | | .61 | 5 | | | 1.57 | 5 |
12/31/2019 | | | 9.83 | | | | .26 | | | | .53 | | | | .79 | | | | (.12 | ) | | | (.22 | ) | | | — | | | | (.34 | ) | | | 10.28 | | | | 8.07 | | | | 13 | | | | .73 | | | | .72 | | | | 2.50 | |
Class 529-F-2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.42 | | | | .43 | | | | (.26 | ) | | | .17 | | | | (.19 | ) | | | — | | | | (.11 | ) | | | (.30 | ) | | | 9.29 | | | | 1.84 | | | | 28 | | | | .41 | | | | .41 | | | | 4.61 | |
12/31/2022 | | | 11.36 | | | | .42 | | | | (1.83 | ) | | | (1.41 | ) | | | (.52 | ) | | | — | | | | (.01 | ) | | | (.53 | ) | | | 9.42 | | | | (12.47 | ) | | | 24 | | | | .43 | | | | .43 | | | | 4.09 | |
12/31/2021 | | | 11.68 | | | | .31 | | | | (.40 | ) | | | (.09 | ) | | | (.23 | ) | | | — | | | | — | | | | (.23 | ) | | | 11.36 | | | | (.86 | ) | | | 25 | | | | .48 | | | | .47 | | | | 2.72 | |
12/31/20207,8 | | | 11.78 | | | | .03 | | | | .21 | | | | .24 | | | | (.11 | ) | | | (.23 | ) | | | — | | | | (.34 | ) | | | 11.68 | | | | 2.04 | 9 | | | 21 | | | | .09 | 9 | | | .08 | 9 | | | .28 | 9 |
Class 529-F-3: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.41 | | | | .43 | | | | (.26 | ) | | | .17 | | | | (.19 | ) | | | — | | | | (.11 | ) | | | (.30 | ) | | | 9.28 | | | | 1.87 | | | | — | 6 | | | .38 | | | | .38 | | | | 4.62 | |
12/31/2022 | | | 11.35 | | | | .42 | | | | (1.82 | ) | | | (1.40 | ) | | | (.53 | ) | | | — | | | | (.01 | ) | | | (.54 | ) | | | 9.41 | | | | (12.52 | ) | | | — | 6 | | | .39 | | | | .39 | | | | 4.09 | |
12/31/2021 | | | 11.68 | | | | .31 | | | | (.41 | ) | | | (.10 | ) | | | (.23 | ) | | | — | | | | — | | | | (.23 | ) | | | 11.35 | | | | (.83 | ) | | | — | 6 | | | .46 | | | | .43 | | | | 2.71 | |
12/31/20207,8 | | | 11.78 | | | | .03 | | | | .21 | | | | .24 | | | | (.11 | ) | | | (.23 | ) | | | — | | | | (.34 | ) | | | 11.68 | | | | 2.07 | 9 | | | — | 6 | | | .12 | 9 | | | .08 | 9 | | | .28 | 9 |
Class R-1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.42 | | | | .33 | | | | (.26 | ) | | | .07 | | | | (.13 | ) | | | — | | | | (.08 | ) | | | (.21 | ) | | | 9.28 | | | | .76 | | | | 1 | | | | 1.42 | | | | 1.42 | | | | 3.59 | |
12/31/2022 | | | 11.34 | | | | .32 | | | | (1.82 | ) | | | (1.50 | ) | | | (.41 | ) | | | — | | | | (.01 | ) | | | (.42 | ) | | | 9.42 | | | | (13.36 | ) | | | 1 | | | | 1.38 | | | | 1.38 | | | | 3.16 | |
12/31/2021 | | | 11.66 | | | | .20 | | | | (.40 | ) | | | (.20 | ) | | | (.12 | ) | | | — | | | | — | | | | (.12 | ) | | | 11.34 | | | | (1.70 | ) | | | 2 | | | | 1.43 | | | | 1.43 | | | | 1.74 | |
12/31/2020 | | | 10.25 | | | | .08 | | | | 1.69 | | | | 1.77 | | | | (.13 | ) | | | (.23 | ) | | | — | | | | (.36 | ) | | | 11.66 | | | | 17.19 | | | | 1 | | | | 1.53 | | | | 1.50 | | | | .71 | |
12/31/2019 | | | 9.82 | | | | .16 | | | | .53 | | | | .69 | | | | (.04 | ) | | | (.22 | ) | | | — | | | | (.26 | ) | | | 10.25 | | | | 7.26 | | | | 2 | | | | 1.60 | | | | 1.60 | | | | 1.52 | |
Refer to the end of the table for footnotes.
American Funds Strategic Bond Fund | 63 |
Financial highlights (continued)
| | | | | Income (loss) from investment operations1 | | | Dividends, distributions and return of capital | | | | | | | | | | | | | | | | | | | |
Year ended | | Net asset value, beginning of year | | | Net investment income | | | Net (losses) gains on securities (both realized and unrealized) | | | Total from investment operations | | | Dividends (from net investment income) | | | Distributions (from capital gains) | | | Return of capital | | | Total dividends, distributions and return of capital | | | Net assets value, end of year | | | Total return2,3 | | | Net assets, end of year (in millions) | | | Ratio of expenses to average net assets before waivers/ reimburse- ments4 | | | Ratio of expenses to average net assets after waivers/ reimburse- ments3,4 | | | Ratio of net income to average net assets3 | |
Class R-2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | $ | 9.39 | | | $ | .34 | | | $ | (.26 | ) | | $ | .08 | | | $ | (.13 | ) | | $ | — | | | $ | (.08 | ) | | $ | (.21 | ) | | $ | 9.26 | | | | .88 | % | | $ | 7 | | | | 1.36 | % | | | 1.36 | % | | | 3.66 | % |
12/31/2022 | | | 11.32 | | | | .32 | | | | (1.81 | ) | | | (1.49 | ) | | | (.43 | ) | | | — | | | | (.01 | ) | | | (.44 | ) | | | 9.39 | | | | (13.42 | ) | | | 6 | | | | 1.37 | | | | 1.37 | | | | 3.10 | |
12/31/2021 | | | 11.64 | | | | .20 | | | | (.40 | ) | | | (.20 | ) | | | (.12 | ) | | | — | | | | — | | | | (.12 | ) | | | 11.32 | | | | (1.71 | ) | | | 7 | | | | 1.40 | | | | 1.39 | | | | 1.78 | |
12/31/2020 | | | 10.25 | | | | .08 | | | | 1.69 | | | | 1.77 | | | | (.15 | ) | | | (.23 | ) | | | — | | | | (.38 | ) | | | 11.64 | | | | 17.32 | | | | 7 | | | | 1.51 | | | | 1.49 | | | | .67 | |
12/31/2019 | | | 9.81 | | | | .16 | | | | .54 | | | | .70 | | | | (.04 | ) | | | (.22 | ) | | | — | | | | (.26 | ) | | | 10.25 | | | | 7.14 | | | | 3 | | | | 1.64 | | | | 1.63 | | | | 1.61 | |
Class R-2E: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.40 | | | | .36 | | | | (.25 | ) | | | .11 | | | | (.15 | ) | | | — | | | | (.09 | ) | | | (.24 | ) | | | 9.27 | | | | 1.14 | | | | 3 | | | | 1.12 | | | | 1.12 | | | | 3.91 | |
12/31/2022 | | | 11.35 | | | | .35 | | | | (1.83 | ) | | | (1.48 | ) | | | (.46 | ) | | | — | | | | (.01 | ) | | | (.47 | ) | | | 9.40 | | | | (13.12 | ) | | | 3 | | | | 1.13 | | | | 1.13 | | | | 3.42 | |
12/31/2021 | | | 11.67 | | | | .24 | | | | (.41 | ) | | | (.17 | ) | | | (.15 | ) | | | — | | | | — | | | | (.15 | ) | | | 11.35 | | | | (1.53 | ) | | | 1 | | | | 1.15 | | | | 1.15 | | | | 2.07 | |
12/31/2020 | | | 10.28 | | | | .11 | | | | 1.70 | | | | 1.81 | | | | (.19 | ) | | | (.23 | ) | | | — | | | | (.42 | ) | | | 11.67 | | | | 17.66 | | | | 1 | | | | 1.25 | | | | 1.23 | | | | .96 | |
12/31/2019 | | | 9.83 | | | | .20 | | | | .54 | | | | .74 | | | | (.07 | ) | | | (.22 | ) | | | — | | | | (.29 | ) | | | 10.28 | | | | 7.55 | 5 | | | — | 6 | | | 1.26 | 5 | | | 1.23 | 5 | | | 1.98 | 5 |
Class R-3: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.40 | | | | .38 | | | | (.26 | ) | | | .12 | | | | (.16 | ) | | | — | | | | (.09 | ) | | | (.25 | ) | | | 9.27 | | | | 1.31 | | | | 18 | | | | .96 | | | | .96 | | | | 4.09 | |
12/31/2022 | | | 11.34 | | | | .37 | | | | (1.83 | ) | | | (1.46 | ) | | | (.47 | ) | | | — | | | | (.01 | ) | | | (.48 | ) | | | 9.40 | | | | (13.02 | ) | | | 12 | | | | .97 | | | | .97 | | | | 3.55 | |
12/31/2021 | | | 11.66 | | | | .25 | | | | (.40 | ) | | | (.15 | ) | | | (.17 | ) | | | — | | | | — | | | | (.17 | ) | | | 11.34 | | | | (1.28 | ) | | | 11 | | | | .99 | | | | .99 | | | | 2.21 | |
12/31/2020 | | | 10.26 | | | | .13 | | | | 1.69 | | | | 1.82 | | | | (.19 | ) | | | (.23 | ) | | | — | | | | (.42 | ) | | | 11.66 | | | | 17.75 | | | | 8 | | | | 1.09 | | | | 1.07 | | | | 1.10 | |
12/31/2019 | | | 9.82 | | | | .21 | | | | .53 | | | | .74 | | | | (.08 | ) | | | (.22 | ) | | | — | | | | (.30 | ) | | | 10.26 | | | | 7.71 | | | | 4 | | | | 1.18 | | | | 1.17 | | | | 2.05 | |
Class R-4: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.41 | | | | .41 | | | | (.27 | ) | | | .14 | | | | (.17 | ) | | | — | | | | (.10 | ) | | | (.27 | ) | | | 9.28 | | | | 1.60 | | | | 25 | | | | .65 | | | | .65 | | | | 4.39 | |
12/31/2022 | | | 11.35 | | | | .40 | | | | (1.83 | ) | | | (1.43 | ) | | | (.50 | ) | | | — | | | | (.01 | ) | | | (.51 | ) | | | 9.41 | | | | (12.75 | ) | | | 19 | | | | .66 | | | | .66 | | | | 3.84 | |
12/31/2021 | | | 11.67 | | | | .29 | | | | (.40 | ) | | | (.11 | ) | | | (.21 | ) | | | — | | | | — | | | | (.21 | ) | | | 11.35 | | | | (.96 | ) | | | 16 | | | | .69 | | | | .68 | | | | 2.56 | |
12/31/2020 | | | 10.27 | | | | .16 | | | | 1.70 | | | | 1.86 | | | | (.23 | ) | | | (.23 | ) | | | — | | | | (.46 | ) | | | 11.67 | | | | 18.07 | | | | 7 | | | | .79 | | | | .77 | | | | 1.40 | |
12/31/2019 | | | 9.82 | | | | .24 | | | | .54 | | | | .78 | | | | (.11 | ) | | | (.22 | ) | | | — | | | | (.33 | ) | | | 10.27 | | | | 8.00 | | | | 4 | | | | .90 | | | | .89 | | | | 2.34 | |
Class R-5E: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.43 | | | | .42 | | | | (.26 | ) | | | .16 | | | | (.18 | ) | | | — | | | | (.11 | ) | | | (.29 | ) | | | 9.30 | | | | 1.78 | | | | 6 | | | | .46 | | | | .46 | | | | 4.53 | |
12/31/2022 | | | 11.37 | | | | .41 | | | | (1.82 | ) | | | (1.41 | ) | | | (.52 | ) | | | — | | | | (.01 | ) | | | (.53 | ) | | | 9.43 | | | | (12.58 | ) | | | 6 | | | | .46 | | | | .46 | | | | 4.01 | |
12/31/2021 | | | 11.69 | | | | .31 | | | | (.41 | ) | | | (.10 | ) | | | (.22 | ) | | | — | | | | — | | | | (.22 | ) | | | 11.37 | | | | (.91 | ) | | | 2 | | | | .52 | | | | .51 | | | | 2.73 | |
12/31/2020 | | | 10.29 | | | | .18 | | | | 1.70 | | | | 1.88 | | | | (.25 | ) | | | (.23 | ) | | | — | | | | (.48 | ) | | | 11.69 | | | | 18.35 | | | | 2 | | | | .60 | | | | .58 | | | | 1.59 | |
12/31/2019 | | | 9.83 | | | | .26 | | | | .54 | | | | .80 | | | | (.12 | ) | | | (.22 | ) | | | — | | | | (.34 | ) | | | 10.29 | | | | 8.19 | | | | — | 6 | | | .72 | | | | .71 | | | | 2.51 | |
Class R-5: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.43 | | | | .44 | | | | (.27 | ) | | | .17 | | | | (.19 | ) | | | — | | | | (.11 | ) | | | (.30 | ) | | | 9.30 | | | | 1.88 | | | | 11 | | | | .37 | | | | .37 | | | | 4.72 | |
12/31/2022 | | | 11.37 | | | | .42 | | | | (1.82 | ) | | | (1.40 | ) | | | (.53 | ) | | | — | | | | (.01 | ) | | | (.54 | ) | | | 9.43 | | | | (12.48 | ) | | | 5 | | | | .38 | | | | .38 | | | | 4.11 | |
12/31/2021 | | | 11.69 | | | | .32 | | | | (.40 | ) | | | (.08 | ) | | | (.24 | ) | | | — | | | | — | | | | (.24 | ) | | | 11.37 | | | | (.70 | ) | | | 3 | | | | .40 | | | | .40 | | | | 2.79 | |
12/31/2020 | | | 10.29 | | | | .19 | | | | 1.70 | | | | 1.89 | | | | (.26 | ) | | | (.23 | ) | | | — | | | | (.49 | ) | | | 11.69 | | | | 18.44 | | | | 3 | | | | .51 | | | | .49 | | | | 1.67 | |
12/31/2019 | | | 9.83 | | | | .27 | | | | .54 | | | | .81 | | | | (.13 | ) | | | (.22 | ) | | | — | | | | (.35 | ) | | | 10.29 | | | | 8.28 | | | | 1 | | | | .62 | | | | .61 | | | | 2.62 | |
Class R-6: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/2023 | | | 9.43 | | | | .44 | | | | (.26 | ) | | | .18 | | | | (.19 | ) | | | — | | | | (.12 | ) | | | (.31 | ) | | | 9.30 | | | | 1.93 | | | | 6,411 | | | | .32 | | | | .32 | | | | 4.69 | |
12/31/2022 | | | 11.37 | | | | .43 | | | | (1.83 | ) | | | (1.40 | ) | | | (.53 | ) | | | — | | | | (.01 | ) | | | (.54 | ) | | | 9.43 | | | | (12.45 | ) | | | 5,718 | | | | .33 | | | | .33 | | | | 4.19 | |
12/31/2021 | | | 11.69 | | | | .34 | | | | (.42 | ) | | | (.08 | ) | | | (.24 | ) | | | — | | | | — | | | | (.24 | ) | | | 11.37 | | | | (.67 | ) | | | 3,149 | | | | .36 | | | | .36 | | | | 2.94 | |
12/31/2020 | | | 10.29 | | | | .20 | | | | 1.69 | | | | 1.89 | | | | (.26 | ) | | | (.23 | ) | | | — | | | | (.49 | ) | | | 11.69 | | | | 18.49 | | | | 1,243 | | | | .42 | | | | .42 | | | | 1.68 | |
12/31/2019 | | | 9.83 | | | | .26 | | | | .56 | | | | .82 | | | | (.14 | ) | | | (.22 | ) | | | — | | | | (.36 | ) | | | 10.29 | | | | 8.33 | | | | 10 | | | | .63 | | | | .59 | | | | 2.52 | |
Refer to the end of the table for footnotes.
64 | American Funds Strategic Bond Fund |
Financial highlights (continued)
| | Year ended December 31, |
Portfolio turnover rate for all share classes10,11 | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Excluding mortgage dollar roll transactions | | | 74 | % | | | 75 | % | | | 106 | % | | | 155 | % | | | 410 | % |
Including mortgage dollar roll transactions | | | 542 | % | | | 228 | % | | | 164 | % | | | 367 | % | | | 428 | % |
1 | Based on average shares outstanding. |
2 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
3 | This column reflects the impact, if any, of certain waivers/reimbursements from CRMC. During some of the years shown, CRMC waived a portion of investment advisory services fees, reimbursed a portion of transfer agent services fees for certain share classes and/or reimbursed a portion of miscellaneous fees and expenses. |
4 | Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds. |
5 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
6 | Amount less than $1 million. |
7 | Based on operations for a period that is less than a full year. |
8 | Class 529-F-2 and 529-F-3 shares began investment operations on October 30, 2020. |
9 | Not annualized. |
10 | Rates do not include the fund’s portfolio activity with respect to any Central Funds. |
11 | Refer to Note 5 for more information on mortgage dollar rolls. |
Refer to the notes to financial statements.
American Funds Strategic Bond Fund | 65 |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of American Funds Strategic Bond Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of American Funds Strategic Bond Fund (the “Fund”), including the investment portfolio, as of December 31, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/Deloitte & Touche LLP
Costa Mesa, California
February 8, 2024
We have served as the auditor of one or more American Funds investment companies since 1956.
66 | American Funds Strategic Bond Fund |
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 (July 1, 2023, through December 31, 2023).
Actual expenses:
The first line of each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3, 529-F-1, 529-F-2 and 529-F-3 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following page are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
American Funds Strategic Bond Fund | 67 |
Expense example (continued)
| | Beginning account value 7/1/2023 | | | Ending account value 12/31/2023 | | | Expenses paid during period* | | | Annualized expense ratio | |
Class A – actual return | | $ | 1,000.00 | | | $ | 1,020.94 | | | $ | 3.67 | | | | .72 | % |
Class A – assumed 5% return | | | 1,000.00 | | | | 1,021.58 | | | | 3.67 | | | | .72 | |
Class C – actual return | | | 1,000.00 | | | | 1,016.32 | | | | 7.22 | | | | 1.42 | |
Class C – assumed 5% return | | | 1,000.00 | | | | 1,018.05 | | | | 7.22 | | | | 1.42 | |
Class T – actual return | | | 1,000.00 | | | | 1,021.46 | | | | 2.04 | | | | .40 | |
Class T – assumed 5% return | | | 1,000.00 | | | | 1,023.19 | | | | 2.04 | | | | .40 | |
Class F-1 – actual return | | | 1,000.00 | | | | 1,020.76 | | | | 3.57 | | | | .70 | |
Class F-1 – assumed 5% return | | | 1,000.00 | | | | 1,021.68 | | | | 3.57 | | | | .70 | |
Class F-2 – actual return | | | 1,000.00 | | | | 1,021.31 | | | | 2.14 | | | | .42 | |
Class F-2 – assumed 5% return | | | 1,000.00 | | | | 1,023.09 | | | | 2.14 | | | | .42 | |
Class F-3 – actual return | | | 1,000.00 | | | | 1,021.89 | | | | 1.58 | | | | .31 | |
Class F-3 – assumed 5% return | | | 1,000.00 | | | | 1,023.64 | | | | 1.58 | | | | .31 | |
Class 529-A – actual return | | | 1,000.00 | | | | 1,019.91 | | | | 3.61 | | | | .71 | |
Class 529-A – assumed 5% return | | | 1,000.00 | | | | 1,021.63 | | | | 3.62 | | | | .71 | |
Class 529-C – actual return | | | 1,000.00 | | | | 1,015.71 | | | | 7.52 | | | | 1.48 | |
Class 529-C – assumed 5% return | | | 1,000.00 | | | | 1,017.74 | | | | 7.53 | | | | 1.48 | |
Class 529-E – actual return | | | 1,000.00 | | | | 1,018.79 | | | | 4.58 | | | | .90 | |
Class 529-E – assumed 5% return | | | 1,000.00 | | | | 1,020.67 | | | | 4.58 | | | | .90 | |
Class 529-T – actual return | | | 1,000.00 | | | | 1,022.27 | | | | 2.29 | | | | .45 | |
Class 529-T – assumed 5% return | | | 1,000.00 | | | | 1,022.94 | | | | 2.29 | | | | .45 | |
Class 529-F-1 – actual return | | | 1,000.00 | | | | 1,021.01 | | | | 2.50 | | | | .49 | |
Class 529-F-1 – assumed 5% return | | | 1,000.00 | | | | 1,022.74 | | | | 2.50 | | | | .49 | |
Class 529-F-2 – actual return | | | 1,000.00 | | | | 1,022.49 | | | | 2.09 | | | | .41 | |
Class 529-F-2 – assumed 5% return | | | 1,000.00 | | | | 1,023.14 | | | | 2.09 | | | | .41 | |
Class 529-F-3 – actual return | | | 1,000.00 | | | | 1,021.67 | | | | 1.83 | | | | .36 | |
Class 529-F-3 – assumed 5% return | | | 1,000.00 | | | | 1,023.39 | | | | 1.84 | | | | .36 | |
Class R-1 – actual return | | | 1,000.00 | | | | 1,016.22 | | | | 7.17 | | | | 1.41 | |
Class R-1 – assumed 5% return | | | 1,000.00 | | | | 1,018.10 | | | | 7.17 | | | | 1.41 | |
Class R-2 – actual return | | | 1,000.00 | | | | 1,016.39 | | | | 6.96 | | | | 1.37 | |
Class R-2 – assumed 5% return | | | 1,000.00 | | | | 1,018.30 | | | | 6.97 | | | | 1.37 | |
Class R-2E – actual return | | | 1,000.00 | | | | 1,017.86 | | | | 5.70 | | | | 1.12 | |
Class R-2E – assumed 5% return | | | 1,000.00 | | | | 1,019.56 | | | | 5.70 | | | | 1.12 | |
Class R-3 – actual return | | | 1,000.00 | | | | 1,019.83 | | | | 4.84 | | | | .95 | |
Class R-3 – assumed 5% return | | | 1,000.00 | | | | 1,020.42 | | | | 4.84 | | | | .95 | |
Class R-4 – actual return | | | 1,000.00 | | | | 1,021.31 | | | | 3.31 | | | | .65 | |
Class R-4 – assumed 5% return | | | 1,000.00 | | | | 1,021.93 | | | | 3.31 | | | | .65 | |
Class R-5E – actual return | | | 1,000.00 | | | | 1,021.15 | | | | 2.34 | | | | .46 | |
Class R-5E – assumed 5% return | | | 1,000.00 | | | | 1,022.89 | | | | 2.35 | | | | .46 | |
Class R-5 – actual return | | | 1,000.00 | | | | 1,022.72 | | | | 1.84 | | | | .36 | |
Class R-5 – assumed 5% return | | | 1,000.00 | | | | 1,023.39 | | | | 1.84 | | | | .36 | |
Class R-6 – actual return | | | 1,000.00 | | | | 1,021.87 | | | | 1.58 | | | | .31 | |
Class R-6 – assumed 5% return | | | 1,000.00 | | | | 1,023.64 | | | | 1.58 | | | | .31 | |
| |
* | 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). |
| |
68 | American Funds Strategic Bond Fund |
We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended December 31, 2023:
Qualified dividend income | | $1,184,000 |
Section 163(j) interest dividends | | $352,215,000 |
Corporate dividends received deduction | | $500,000 |
U.S. government income that may be exempt from state taxation | | $179,720,000 |
Individual shareholders should refer to their Form 1099 or other tax information, which was mailed in January 2024, to determine the calendar year amounts to be included on their 2023 tax returns. Shareholders should consult their tax advisors.
American Funds Strategic Bond Fund | 69 |
Liquidity Risk Management Program | unaudited |
The fund has adopted a liquidity risk management program (the “program”). The fund’s board has designated Capital Research and Management Company (“CRMC”) as the administrator of the program. Personnel of CRMC or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by the Capital Group Liquidity Risk Management Committee.
Under the program, CRMC manages the fund’s liquidity risk, which is the risk that the fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the fund. This risk is managed by monitoring the degree of liquidity of the fund’s investments, limiting the amount of the fund’s illiquid investments, and utilizing various risk management tools and facilities available to the fund for meeting shareholder redemptions, among other means. CRMC’s process of determining the degree of liquidity of the fund’s investments is supported by one or more third-party liquidity assessment vendors.
The fund’s board reviewed a report prepared by CRMC regarding the operation and effectiveness of the program for the period October 1, 2022, through September 30, 2023. No significant liquidity events impacting the fund were noted in the report. In addition, CRMC provided its assessment that the program had been effective in managing the fund’s liquidity risk.
70 | American Funds Strategic Bond Fund |
Board of trustees and other officers
Independent trustees1
Name and year of birth | | Year first elected a trustee of the fund2 | | Principal occupation(s) during past five years | | Number of portfolios in fund complex overseen by trustee | | Other directorships3 held by trustee |
Francisco G. Cigarroa, MD, 1957 | | 2021 | | Professor of Surgery, University of Texas Health San Antonio; Trustee, Ford Foundation; Clayton Research Scholar, Clayton Foundation for Biomedical Research | | 88 | | None |
Nariman Farvardin, 1956 | | 2018 | | President, Stevens Institute of Technology | | 93 | | None |
Jennifer C. Feikin, 1968 | | 2022 | | Business Advisor; previously held positions at Google, AOL, 20th Century Fox and McKinsey & Company; Trustee, The Nature Conservancy of Utah; former Trustee, The Nature Conservancy of California | | 102 | | Hertz Global Holdings, Inc. |
Leslie Stone Heisz, 1961 | | 2022 | | Former Managing Director, Lazard (retired, 2010); Director, Kaiser Permanente (California public benefit corporation); former Lecturer, UCLA Anderson School of Management | | 102 | | Edwards Lifesciences; Public Storage, Inc. |
Mary Davis Holt, 1950 | | 2015–2016 2017 | | Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former COO, Time Life Inc. (1993 –2003) | | 89 | | None |
Merit E. Janow, 1958 | | 2015 | | Dean Emerita and Professor of Practice, International Economic Law & International Affairs, Columbia University, School of International and Public Affairs | | 99 | | Aptiv (autonomous and green vehicle technology); Mastercard Incorporated |
Margaret Spellings, 1957 Chair of the Board (Independent and Non-Executive) | | 2015 | | President and CEO, Bipartisan Policy Center; former President and CEO, Texas 2036; former President, Margaret Spellings & Company (public policy and strategic consulting); former President, The University of North Carolina | | 93 | | None |
Alexandra Trower, 1964 | | 2018 | | Former Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies | | 88 | | None |
Paul S. Williams, 1959 | | 2020 | | Former Partner/Managing Director, Major, Lindsey & Africa (executive recruiting firm) | | 88 | | Air Transport Services Group, Inc. (aircraft leasing and air cargo transportation); Public Storage, Inc. |
Interested trustees4,5
Name, year of birth and position with fund | | Year first elected a trustee or officer of the fund2 | | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund | | Number of portfolios in fund complex overseen by trustee | | Other directorships3 held by trustee |
Michael C. Gitlin, 1970 | | 2015 | | Partner — Capital Fixed Income Investors, Capital Research and Management Company; President, Chief Executive Officer and Director, The Capital Group Companies, Inc.6; Vice Chairman and Director, Capital Research and Management Company | | 88 | | None |
Karl J. Zeile, 1966 | | 2019 | | Partner — Capital Fixed Income Investors, Capital Research and Management Company | | 23 | | None |
The fund’s statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the Capital Group website at capitalgroup.com. The address for all trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
Refer to page 72 for footnotes.
American Funds Strategic Bond Fund | 71 |
Other officers5
Name, year of birth and position with fund | | Year first elected an officer of the fund2 | | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund |
Ritchie Tuazon, 1978 President | | 2015 | | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Partner — Capital Fixed Income Investors, Capital Bank and Trust Company6 |
Kristine M. Nishiyama, 1970 Principal Executive Officer | | 2015 | | Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Chair, Senior Vice President, General Counsel and Director, Capital Bank and Trust Company6 |
Michael W. Stockton, 1967 Executive Vice President | | 2021 | | Senior Vice President — Fund Business Management Group, Capital Research and Management Company |
Damien J. McCann, 1977 Senior Vice President | | 2015 | | Partner — Capital Fixed Income Investors, Capital Research and Management Company |
Xavier Goss, 1980 Vice President | | 2022 | | Vice President — Capital Fixed Income Investors, Capital Research and Management Company |
Timothy Ng, 1982 Vice President | | 2023 | | Vice President — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Strategy Research, Inc.6 |
Courtney R. Taylor, 1975 Secretary | | 2023 | | Assistant Vice President — Fund Business Management Group, Capital Research and Management Company |
Becky L. Park, 1979 Treasurer | | 2021 | | Vice President — Investment Operations, Capital Research and Management Company |
Jane Y. Chung, 1974 Assistant Secretary | | 2015 | | Associate — Fund Business Management Group, Capital Research and Management Company |
Sandra Chuon, 1972 Assistant Treasurer | | 2019 | | Vice President — Investment Operations, Capital Research and Management Company |
Brian C. Janssen, 1972 Assistant Treasurer | | 2015 | | Senior Vice President — Investment Operations, Capital Research and Management Company |
1 | The term independent trustee refers to a trustee who is not an “interested person” of the fund within the meaning of the Investment Company Act of 1940. |
2 | Trustees and officers of the fund serve until their resignation, removal or retirement. |
3 | This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
4 | The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter). |
5 | All of the trustees and/or officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
6 | Company affiliated with Capital Research and Management Company. |
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72 | American Funds Strategic Bond Fund |
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American Funds Strategic Bond Fund | 73 |
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74 | American Funds Strategic Bond Fund |
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American Funds Strategic Bond Fund | 75 |
Office of the fund
6455 Irvine Center Drive
Irvine, CA 92618-4518
Investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address nearest you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726
Independent registered public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1000
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
76 | American Funds Strategic Bond Fund |
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on our website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on our website.
American Funds Strategic Bond Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form NPORT-P. The list of portfolio holdings is available free of charge on the SEC website and on our website.
This report is for the information of shareholders of American Funds Strategic Bond Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after March 31, 2024, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
This report, and any product, index or fund referred to herein, is not sponsored, endorsed or promoted in any way by J.P. Morgan or any of its affiliates who provide no warranties whatsoever, express or implied, and shall have no liability to any prospective investor, in connection with this report. J.P. Morgan disclaimer: https://www.jpmm.com/research/disclosures
American Funds Distributors, Inc.
The Capital Advantage®
Since 1931, Capital Group, home of American Funds, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemTM — has resulted in superior outcomes.
Aligned with investor success
We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 28 years of investment industry experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1
The Capital System
The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.
American Funds’ superior outcomes
Equity-focused funds have beaten their Lipper peer indexes in 90% of 10-year periods and 99% of 20-year periods.2 Relative to their peers, our fixed income funds have helped investors achieve better diversification through attention to correlation between bonds and equities.3 Fund management fees have been among the lowest in the industry.4
| 1 | Investment industry experience as of December 31, 2022. |
| 2 | Based on Class F-2 share results for rolling monthly 10- and 20-year periods starting with the first 10- or 20-year period after each mutual fund’s inception through December 31, 2022. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Past results are not predictive of results in future periods. |
| 3 | Based on Class F-2 share results as of December 31, 2022. Sixteen of the 18 fixed income American Funds that have been in existence for the three-year period showed a three-year correlation lower than their respective Morningstar peer group averages. S&P 500 Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. |
| | A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction. |
| 4 | On average, our mutual fund management fees were in the lowest quintile 62% of the time, based on the 20-year period ended December 31, 2022, versus comparable Lipper categories, excluding funds of funds. |
| | |
Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on the results of the original share class of the fund without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Refer to capitalgroup.com for more information on specific expense adjustments and the actual dates of first sale. |
| | |
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies. |
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ITEM 2 – Code of Ethics
The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made by calling 800/421-4225 or to the Secretary of the Registrant, 6455 Irvine Center Drive, Irvine, California 92618.
ITEM 3 – Audit Committee Financial Expert
The Registrant’s board has determined that Paul S. Williams, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.
ITEM 4 – Principal Accountant Fees and Services
a) Audit Fees: | | |
Audit | 2022 | 98,000 |
| 2023 | 5,000 |
| | |
b) Audit-Related Fees: | | |
| 2022 | 2,000 |
| 2023 | 3,000 |
| | |
c) Tax Fees: | | |
| 2022 | 10,000 |
| 2023 | 10,000 |
| The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. | |
| | |
d) All Other Fees: | | |
| 2022 | None |
| 2023 | None |
| | |
| Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below): | |
a) Audit Fees: | | |
| Not Applicable | |
| | |
b) Audit-Related Fees: | | |
| 2022 | 2,394,000 |
| 2023 | 1,979,000 |
| The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 18 issued by the American Institute of Certified Public Accountants. | |
| | |
c) Tax Fees: | | |
| 2022 | 394,000 |
| 2023 | None |
| The tax fees consist of consulting services relating to the Registrant’s investments. | |
| | |
| | |
d) All Other Fees: | | |
| 2022 | None |
| 2023 | None |
| The other fees consist of subscription services related to an accounting research tool. | |
| | |
| | |
| All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates. | |
| | |
| Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $2,801,000 for fiscal year 2022 and $1,992,000 for fiscal year 2023. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence. | |
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
Not applicable, insofar as the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 11 – Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
| |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 – Exhibits
(a)(1) | The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto. |
| |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AMERICAN FUNDS STRATEGIC BOND FUND |
| |
| By __/s/ Kristine M. Nishiyama________________ |
| Kristine M. Nishiyama, Principal Executive Officer |
| |
| Date: February 29, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By _ /s/ Kristine M. Nishiyama_____________ |
Kristine M. Nishiyama, Principal Executive Officer |
|
Date: February 29, 2024 |
By ___/s/ Becky L. Park__________________ |
Becky L. Park, Treasurer and Principal Financial Officer |
|
Date: February 29, 2024 |