![](https://capedge.com/proxy/NPORT-P/0001145549-19-047692/img5d2dc5ec1.jpg)
American Funds Multi-Sector Income FundSM
Investment portfolio
September 30, 2019
unaudited
Bonds, notes & other debt instruments 97.23% Corporate bonds & notes 69.38% Energy 8.00% | Principal amount (000) | Value (000) |
Apache Corp. 4.25% 2030 | $30 | $31 |
Apache Corp. 5.35% 2049 | 125 | 130 |
Ascent Resources - Utica LLC 7.00% 20261 | 50 | 42 |
Baker Hughes, a GE Co. 3.337% 2027 | 35 | 36 |
Berry Petroleum Corp. 7.00% 20261 | 10 | 10 |
BP Capital Markets PLC 4.234% 2028 | 95 | 108 |
California Resources Corp., Term Loan B, (3-month USD-LIBOR + 4.75%) 6.794% 20222,3 | 35 | 32 |
Canadian Natural Resources Ltd. 4.95% 2047 | 65 | 77 |
Carrizo Oil & Gas Inc. 6.25% 2023 | 95 | 90 |
Cenovus Energy Inc. 3.80% 2023 | 30 | 31 |
Cenovus Energy Inc. 4.25% 2027 | 135 | 141 |
Cenovus Energy Inc. 5.40% 2047 | 35 | 39 |
Centennial Resource Production, LLC 6.875% 20271 | 30 | 30 |
Cheniere Energy Partners, LP 4.50% 20291 | 77 | 79 |
Cheniere Energy, Inc. 7.00% 2024 | 100 | 115 |
Chesapeake Energy Corp. 8.00% 2025 | 30 | 22 |
Concho Resources Inc. 4.30% 2028 | 40 | 43 |
Denbury Resources Inc. 9.00% 20211 | 60 | 56 |
Diamond Offshore Drilling, Inc. 7.875% 2025 | 30 | 24 |
Enbridge Energy Partners, LP 7.375% 2045 | 40 | 59 |
Energy Transfer Partners, LP 6.125% 2045 | 20 | 23 |
Energy Transfer Partners, LP 5.30% 2047 | 35 | 38 |
Energy Transfer Partners, LP 6.00% 2048 | 80 | 95 |
Energy Transfer Partners, LP 6.25% 2049 | 60 | 73 |
Equinor ASA 3.625% 2028 | 35 | 39 |
Matador Resources Co. 5.875% 2026 | 35 | 35 |
MV24 Capital BV 6.748% 20341 | 200 | 207 |
Nabors Industries Inc. 5.75% 2025 | 30 | 22 |
NGL Energy Partners LP 7.50% 2023 | 25 | 26 |
Noble Energy, Inc. 3.25% 2029 | 140 | 139 |
NuStar Logistics, LP 6.00% 2026 | 40 | 43 |
Oasis Petroleum Inc. 6.875% 2022 | 100 | 94 |
Oasis Petroleum Inc. 6.25% 20261 | 170 | 139 |
Occidental Petroleum Corp. 2.90% 2024 | 39 | 39 |
Occidental Petroleum Corp. 3.20% 2026 | 25 | 25 |
Occidental Petroleum Corp. 3.50% 2029 | 58 | 59 |
Petrobras Global Finance Co. 5.093% 20301 | 113 | 118 |
Petróleos Mexicanos 6.50% 2029 | 45 | 46 |
Petróleos Mexicanos 6.84% 20301 | 63 | 65 |
Petróleos Mexicanos 5.625% 2046 | 27 | 23 |
Petróleos Mexicanos 7.69% 20501 | 114 | 119 |
QEP Resources, Inc. 5.25% 2023 | 20 | 19 |
QEP Resources, Inc. 5.625% 2026 | 235 | 203 |
Range Resources Corp. 5.00% 2023 | 25 | 22 |
Range Resources Corp. 4.875% 2025 | 150 | 125 |
Sanchez Energy Corp. 7.25% 20231,4 | 30 | 22 |
American Funds Multi-Sector Income Fund — Page 1 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Sanchez Energy Corp., Term Loan, (3-month USD-LIBOR + 8.00%) 10.176% 20202,3,5,6 | $3 | $3 |
SM Energy Co. 5.625% 2025 | 30 | 26 |
SM Energy Co. 6.625% 2027 | 175 | 151 |
Southwestern Energy Co. 7.50% 2026 | 50 | 44 |
Sunoco LP 4.875% 2023 | 45 | 46 |
Sunoco LP 6.00% 2027 | 40 | 43 |
Targa Resources Partners LP 6.50% 20271 | 15 | 16 |
Targa Resources Partners LP 6.875% 20291 | 15 | 16 |
Teekay Corp. 9.25% 20221 | 80 | 82 |
Total Capital International 2.434% 2025 | 50 | 51 |
Total Capital International 3.455% 2029 | 75 | 81 |
Total Capital International 3.461% 2049 | 40 | 42 |
TransCanada PipeLines Ltd. 4.25% 2028 | 75 | 83 |
Transocean Guardian Ltd. 5.875% 20241 | 36 | 36 |
Transocean Inc. 8.375% 20217 | 45 | 46 |
Transocean Inc. 9.00% 20231 | 20 | 21 |
Transocean Inc. 6.125% 20251 | 36 | 36 |
Transocean Poseidon Ltd. 6.875% 20271 | 40 | 41 |
Valaris PLC 7.75% 2026 | 30 | 16 |
Whiting Petroleum Corp. 6.25% 2023 | 50 | 39 |
Whiting Petroleum Corp. 6.625% 2026 | 205 | 139 |
4,111 | ||
Financials 7.72% | ||
AG Merger Sub II, Inc. 10.75% 20271 | 133 | 136 |
Alliant Holdings Intermediate LLC 8.25% 20231 | 40 | 41 |
Allstate Corp. 3.85% 2049 | 20 | 22 |
Ally Financial Inc. 8.00% 2031 | 110 | 153 |
Ally Financial Inc. 8.00% 2031 | 25 | 35 |
AssuredPartners, Inc. 8.00% 20271 | 80 | 82 |
Bank of America Corp. 3.419% 2028 (3-month USD-LIBOR + 1.04% on 12/20/2027)7 | 114 | 119 |
Bank of America Corp. 3.194% 2030 (3-month USD-LIBOR + 1.18% on 7/23/2029)7 | 125 | 129 |
Bank of Montreal 2.50% 2024 | 110 | 111 |
CIT Group Inc. 4.125% 2021 | 50 | 51 |
Citigroup Inc. 3.98% 2030 (3-month USD-LIBOR + 1.023% on 3/20/2029)7 | 110 | 120 |
Compass Diversified Holdings 8.00% 20261 | 75 | 80 |
Danske Bank AS 3.875% 20231 | 300 | 311 |
Fairstone Financial Inc. 7.875% 20241 | 87 | 91 |
FS Energy and Power Fund 7.50% 20231 | 230 | 233 |
Goldman Sachs Group, Inc. 2.55% 2019 | 125 | 125 |
Hartford Financial Services Group, Inc. 2.80% 2029 | 60 | 60 |
HSBC Holdings PLC 3.973% 2030 (3-month USD-LIBOR + 1.61% on 5/22/2029)7 | 200 | 214 |
HUB International Ltd. 7.00% 20261 | 180 | 186 |
JPMorgan Chase & Co. 2.301% 2025 (USD-SOFR + 1.16% on 10/15/2024)7 | 25 | 25 |
JPMorgan Chase & Co. 2.739% 2030 (USD-SOFR + 1.51% on 10/15/2029)7 | 340 | 338 |
Marsh & McLennan Companies, Inc. 4.375% 2029 | 25 | 28 |
Metropolitan Life Global Funding I 2.40% 20211 | 150 | 151 |
Morgan Stanley 2.72% 2025 (USD-SOFR + 1.152% on 7/22/2024)7 | 50 | 51 |
Morgan Stanley 4.431% 2030 (3-month USD-LIBOR + 1.628% on 1/23/2029)7 | 140 | 157 |
Prudential Financial, Inc. 3.70% 2051 | 25 | 26 |
Travelers Companies, Inc. 4.10% 2049 | 20 | 23 |
American Funds Multi-Sector Income Fund — Page 2 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Financials (continued) | Principal amount (000) | Value (000) |
UniCredit SpA 4.625% 20271 | $250 | $266 |
Wells Fargo & Co. 2.15% 2020 | 600 | 600 |
3,964 | ||
Consumer discretionary 7.46% | ||
Adient US LLC 7.00% 20261 | 60 | 63 |
Allied Universal Holdco LLC 6.625% 20261 | 30 | 32 |
Allied Universal Holdco LLC 9.75% 20271 | 145 | 151 |
Bayerische Motoren Werke AG 2.95% 20221 | 200 | 204 |
Bayerische Motoren Werke AG 3.15% 20241 | 35 | 36 |
Cedar Fair, LP 5.25% 20291 | 10 | 11 |
Churchill Downs Inc. 4.75% 20281 | 75 | 77 |
Cirsa Gaming Corp. SA 7.875% 20231 | 269 | 286 |
Extended Stay America Inc. 4.625% 20271 | 91 | 91 |
Fertitta Entertainment, Inc. 8.75% 20251 | 200 | 209 |
General Motors Co. 5.95% 2049 | 35 | 38 |
Hanesbrands Inc. 4.875% 20261 | 125 | 133 |
Hilton Worldwide Holdings Inc. 4.875% 20301 | 20 | 21 |
Home Depot, Inc. 4.50% 2048 | 20 | 25 |
Levi Strauss & Co. 5.00% 2025 | 25 | 26 |
Lowe’s Companies, Inc. 3.65% 2029 | 40 | 43 |
Lowe’s Companies, Inc. 4.55% 2049 | 10 | 12 |
Merlin Entertainment 5.75% 20261 | 200 | 208 |
MGM Resorts International 7.75% 2022 | 25 | 28 |
MGM Resorts International 6.00% 2023 | 85 | 94 |
MGM Resorts International 5.50% 2027 | 85 | 93 |
Neiman Marcus Group Ltd. LLC 8.00% 20241 | 90 | 27 |
Neiman Marcus Group Ltd. LLC 14.00% 20241,8 | 65 | 37 |
Neiman Marcus Group Ltd. LLC, Term Loan B, (3-month USD-LIBOR + 6.00%) 8.73% 2023 (11.46% PIK)2,3,8 | 55 | 43 |
Panther BF Aggregator 2, LP 6.25% 20261 | 40 | 42 |
Panther BF Aggregator 2, LP 8.50% 20271 | 80 | 81 |
PetSmart, Inc. 7.125% 20231 | 150 | 142 |
PetSmart, Inc. 5.875% 20251 | 75 | 75 |
PetSmart, Inc. 8.875% 20251 | 150 | 143 |
Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 100 | 102 |
Scientific Games Corp. 8.25% 20261 | 225 | 240 |
Six Flags Entertainment Corp. 4.875% 20241 | 150 | 156 |
Sotheby’s 4.875% 20251 | 150 | 152 |
Staples, Inc. 7.50% 20261 | 150 | 155 |
Volkswagen Group of America Finance, LLC 4.75% 20281 | 200 | 223 |
William Carter Co. 5.625% 20271 | 40 | 43 |
Wyndham Worldwide Corp. 5.375% 20261 | 50 | 53 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 4.25% 20231 | 75 | 77 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.25% 20271 | 45 | 46 |
Wynn Resorts Ltd. 5.125% 20291 | 110 | 115 |
3,833 | ||
Industrials 7.36% | ||
Allison Transmission Holdings, Inc. 5.00% 20241 | 50 | 51 |
ARAMARK Corp. 5.125% 2024 | 90 | 93 |
Ashtead Group PLC 4.125% 20251 | 200 | 205 |
Associated Materials, LLC 9.00% 20241 | 158 | 139 |
Avolon Holdings Funding Ltd. 3.95% 20241 | 97 | 100 |
Avolon Holdings Funding Ltd. 4.375% 20261 | 125 | 129 |
American Funds Multi-Sector Income Fund — Page 3 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Industrials (continued) | Principal amount (000) | Value (000) |
Beacon Roofing Supply, Inc. 4.875% 20251 | $110 | $108 |
Boeing Co. 2.70% 2022 | 130 | 133 |
Boeing Co. 3.10% 2026 | 84 | 88 |
Boeing Co. 3.20% 2029 | 30 | 32 |
Boeing Co. 2.95% 2030 | 5 | 5 |
Boeing Co. 3.60% 2034 | 80 | 87 |
Boeing Co. 3.90% 2049 | 80 | 88 |
CSX Corp. 4.50% 2049 | 25 | 29 |
Dun & Bradstreet Corp. 6.875% 20261 | 180 | 197 |
Dun & Bradstreet Corp. 10.25% 20271 | 200 | 222 |
Harsco Corp. 5.75% 20271 | 20 | 21 |
Honeywell International Inc. 2.30% 2024 | 75 | 76 |
Honeywell International Inc. 2.70% 2029 | 35 | 36 |
JELD-WEN Holding, Inc. 4.875% 20271 | 70 | 69 |
KAR Auction Services, Inc. 5.125% 20251 | 70 | 73 |
LABL Escrow Issuer, LLC 6.75% 20261 | 100 | 104 |
LABL Escrow Issuer, LLC 10.50% 20271 | 45 | 46 |
LSC Communications, Inc. 8.75% 20231 | 50 | 37 |
Mexican Government 5.50% 2047 | 200 | 199 |
Pisces Parent LLC 8.00% 20261 | 200 | 198 |
Pisces Parent LLC, Term Loan B, (3-month USD-LIBOR + 3.75%) 5.789% 20252,3 | 149 | 146 |
PrimeSource Building Products Inc. 9.00% 20231 | 225 | 212 |
Republic Services, Inc. 2.50% 2024 | 180 | 182 |
Rexnord Corp. 4.875% 20251 | 100 | 103 |
Sensata Technologies Holding BV 4.875% 20231 | 25 | 26 |
TransDigm Inc. 6.00% 2022 | 30 | 31 |
Uber Technologies, Inc. 8.00% 20261 | 185 | 188 |
Union Pacific Corp. 4.30% 2049 | 75 | 88 |
United Parcel Service, Inc. 4.25% 2049 | 20 | 23 |
United Rentals, Inc. 4.625% 2025 | 65 | 67 |
Virgin Australia Holdings Ltd. 7.875% 20211 | 100 | 102 |
Westinghouse Air Brake Technologies Corp. 4.40% 20247 | 42 | 45 |
3,778 | ||
Health care 7.23% | ||
Abbott Laboratories 3.75% 2026 | 30 | 33 |
AbbVie Inc. 4.45% 2046 | 95 | 99 |
AstraZeneca PLC 3.375% 2025 | 65 | 68 |
Auris Luxembourg III SARL, Term Loan, (3-month USD-LIBOR + 3.75%) 5.794% 20262,3,5 | 50 | 49 |
Becton, Dickinson and Co. 3.70% 2027 | 33 | 35 |
Boston Scientific Corp. 3.75% 2026 | 45 | 48 |
Boston Scientific Corp. 4.70% 2049 | 5 | 6 |
Bristol-Myers Squibb Co. 4.125% 20391 | 116 | 132 |
Charles River Laboratories International, Inc. 5.50% 20261 | 45 | 48 |
Cigna Corp. 4.375% 2028 | 70 | 77 |
Cigna Corp. 4.80% 2038 | 60 | 68 |
Cigna Corp. 4.90% 2048 | 60 | 69 |
Eagle Holding Co. II LLC 7.625% 20221,8 | 25 | 25 |
Eagle Holding Co. II LLC 7.75% 20221,8 | 80 | 81 |
Encompass Health Corp. 4.50% 2028 | 17 | 17 |
Encompass Health Corp. 4.75% 2030 | 30 | 30 |
HCA Inc. 5.875% 2023 | 75 | 83 |
HCA Inc. 5.375% 2026 | 75 | 83 |
HCA Inc. 4.125% 2029 | 15 | 16 |
American Funds Multi-Sector Income Fund — Page 4 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Health care (continued) | Principal amount (000) | Value (000) |
HCA Inc. 5.25% 2049 | $45 | $50 |
IMS Health Holdings, Inc. 5.00% 20261 | 200 | 210 |
inVentiv Health, Inc. 7.50% 20241 | 50 | 52 |
Jaguar Holding Co. 6.375% 20231 | 60 | 62 |
Kinetic Concepts, Inc. 12.50% 20211 | 160 | 170 |
Merck & Co., Inc. 3.40% 2029 | 30 | 33 |
Molina Healthcare, Inc. 5.375% 2022 | 100 | 106 |
NVA Holdings Inc. 6.875% 20261 | 75 | 80 |
Par Pharmaceutical Companies Inc. 7.50% 20271 | 30 | 27 |
PAREXEL International Corp. 6.375% 20251 | 100 | 92 |
Pfizer Inc. 3.45% 2029 | 40 | 43 |
Pfizer Inc. 4.00% 2049 | 10 | 12 |
Prestige Brands International Inc. 6.375% 20241 | 25 | 26 |
Sotera Health Topco, Inc. 8.125% 20211,8 | 90 | 90 |
Sterigenics-Nordion Holdings, LLC 6.50% 20231 | 35 | 36 |
Surgery Center Holdings 10.00% 20271 | 45 | 46 |
Takeda Pharmaceutical Co., Ltd. 5.00% 20281 | 280 | 328 |
Tenet Healthcare Corp. 4.625% 2024 | 50 | 52 |
Tenet Healthcare Corp. 4.875% 20261 | 60 | 62 |
Tenet Healthcare Corp. 5.125% 20271 | 50 | 52 |
Teva Pharmaceutical Finance Co. BV 3.15% 2026 | 475 | 334 |
Teva Pharmaceutical Finance Co. BV 6.75% 2028 | 200 | 165 |
UnitedHealth Group Inc. 2.375% 2024 | 15 | 15 |
UnitedHealth Group Inc. 2.875% 2029 | 15 | 15 |
UnitedHealth Group Inc. 4.45% 2048 | 35 | 42 |
Valeant Pharmaceuticals International, Inc. 6.125% 20251 | 155 | 161 |
Valeant Pharmaceuticals International, Inc. 9.00% 20251 | 100 | 113 |
Valeant Pharmaceuticals International, Inc. 9.25% 20261 | 75 | 85 |
Valeant Pharmaceuticals International, Inc. 8.50% 20271 | 75 | 84 |
Vizient Inc. 6.25% 20271 | 5 | 5 |
3,715 | ||
Materials 6.61% | ||
AK Steel Holding Corp. 7.625% 2021 | 35 | 35 |
AK Steel Holding Corp. 7.50% 2023 | 50 | 50 |
ArcelorMittal 3.60% 2024 | 100 | 101 |
Axalta Coating Systems LLC 4.875% 20241 | 150 | 156 |
Ball Corp. 5.00% 2022 | 70 | 74 |
BWAY Parent Co., Inc. 5.50% 20241 | 75 | 78 |
BWAY Parent Co., Inc. 7.25% 20251 | 100 | 95 |
Cleveland-Cliffs Inc. 4.875% 20241 | 55 | 56 |
Cleveland-Cliffs Inc. 5.875% 20271 | 40 | 38 |
CVR Partners, LP 9.25% 20231 | 100 | 105 |
Cydsa, SAB de CV 6.25% 2027 | 200 | 205 |
Dow Chemical Co. 4.80% 20491 | 82 | 91 |
First Quantum Minerals Ltd. 7.50% 20251 | 520 | 515 |
Freeport-McMoRan Inc. 3.55% 2022 | 85 | 85 |
Freeport-McMoRan Inc. 3.875% 2023 | 55 | 55 |
FXI Holdings, Inc. 7.875% 20241 | 275 | 240 |
Greif, Inc. 6.50% 20271 | 25 | 27 |
H.I.G. Capital, LLC 6.75% 20241 | 20 | 18 |
Hexion Inc. 7.875% 20271 | 110 | 109 |
INEOS Group Holdings SA 5.625% 20241 | 200 | 207 |
LSB Industries, Inc. 9.625% 20231 | 145 | 154 |
American Funds Multi-Sector Income Fund — Page 5 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Materials (continued) | Principal amount (000) | Value (000) |
Mineral Resources Ltd. 8.125% 20271 | $50 | $52 |
Owens-Illinois, Inc. 5.875% 20231 | 120 | 128 |
Platform Specialty Products Corp. 5.875% 20251 | 40 | 42 |
Reynolds Group Inc. 7.00% 20241 | 75 | 78 |
Sealed Air Corp. 5.25% 20231 | 25 | 27 |
Sherwin-Williams Co. 2.95% 2029 | 70 | 70 |
Starfruit US Holdco LLC 8.00% 20261 | 150 | 150 |
Summit Materials, Inc. 6.125% 2023 | 20 | 20 |
Summit Materials, Inc. 6.50% 20271 | 25 | 27 |
TPC Group Inc. 10.50% 20241 | 91 | 95 |
Tronox Ltd. 5.75% 20251 | 30 | 28 |
Tronox Ltd. 6.50% 20261 | 120 | 115 |
Venator Materials Corp. 5.75% 20251 | 80 | 68 |
3,394 | ||
Information technology 6.44% | ||
Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 9.446% 20252,3 | 140 | 135 |
Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 7.00%) 9.104% 20252,3 | 25 | 25 |
Banff Merger Sub Inc. 9.75% 20261 | 75 | 72 |
Blackboard Inc., Term Loan B4, (3-month USD-LIBOR + 5.00%) 7.30% 20212,3 | 65 | 65 |
Broadcom Inc. 4.75% 20291 | 490 | 518 |
Broadcom Ltd. 3.875% 2027 | 110 | 111 |
Broadcom Ltd. 3.50% 2028 | 30 | 29 |
Camelot Finance SA 7.875% 20241 | 110 | 115 |
CDK Global Inc. 5.25% 20291 | 30 | 31 |
Diebold Nixdorf AG, Term Loan A1, (3-month USD-LIBOR + 9.25%) 11.313% 20222,3 | 49 | 52 |
Diebold, Inc. 8.50% 2024 | 175 | 166 |
Diebold, Inc., Term Loan A, (3-month USD-LIBOR + 4.75%) 6.813% 20222,3 | 150 | 147 |
Financial & Risk US Holdings, Inc. 6.25% 20261 | 105 | 113 |
Financial & Risk US Holdings, Inc. 8.25% 20261 | 115 | 127 |
Fiserv, Inc. 3.20% 2026 | 55 | 57 |
Fiserv, Inc. 3.50% 2029 | 220 | 232 |
Genesys Telecommunications Laboratories, Inc. 10.00% 20241 | 85 | 92 |
Global Payments Inc. 3.20% 2029 | 21 | 21 |
Global Payments Inc. 4.15% 2049 | 8 | 9 |
Go Daddy Operating Co. 5.25% 20271 | 15 | 16 |
Infor, Inc. 6.50% 2022 | 160 | 163 |
Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 10.503% 20242,3 | 175 | 178 |
MoneyGram International Inc., Term Loan B, (3-month USD-LIBOR + 6.00%) 8.044% 20232,3 | 150 | 144 |
PayPal Holdings, Inc. 2.40% 2024 | 100 | 101 |
PayPal Holdings, Inc. 2.65% 2026 | 59 | 59 |
PayPal Holdings, Inc. 2.85% 2029 | 115 | 116 |
Solera Holdings, Inc. 10.50% 20241 | 50 | 53 |
Tempo Acquisition LLC 6.75% 20251 | 85 | 88 |
Unisys Corp. 10.75% 20221 | 55 | 60 |
Veritas Holdings Ltd. 10.50% 20241 | 200 | 190 |
Veritas US Inc., Term Loan B, (3-month USD-LIBOR + 4.50%) 6.544% 20232,3 | 25 | 24 |
3,309 | ||
Utilities 6.23% | ||
AEP Transmission Co. LLC 3.80% 2049 | 20 | 22 |
AES Corp. 4.875% 2023 | 17 | 17 |
AES Corp. 6.00% 2026 | 130 | 138 |
American Electric Power Co., Inc. 3.65% 2021 | 140 | 144 |
American Funds Multi-Sector Income Fund — Page 6 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Utilities (continued) | Principal amount (000) | Value (000) |
American Electric Power Co., Inc. 4.30% 2028 | $240 | $269 |
Calpine Corp. 5.375% 2023 | 25 | 25 |
Calpine Corp. 5.875% 20241 | 75 | 77 |
CenterPoint Energy, Inc. 3.85% 2024 | 65 | 69 |
Connecticut Light and Power Co. 3.20% 2027 | 25 | 26 |
Consolidated Edison Co. of New York, Inc. 4.65% 2048 | 25 | 31 |
Consolidated Edison Co. of New York, Inc. 4.125% 2049 | 20 | 23 |
Consumers Energy Co. 3.25% 2046 | 34 | 35 |
Consumers Energy Co. 3.10% 2050 | 30 | 30 |
Dominion Resources, Inc., junior subordinated, 3.071% 20247 | 50 | 51 |
DTE Energy Co. 3.95% 2049 | 20 | 23 |
DTE Energy Co., Series C, 2.529% 20243 | 75 | 75 |
Duke Energy Carolinas, LLC 2.45% 2029 | 40 | 40 |
Duke Energy Indiana, Inc. 3.25% 2049 | 50 | 50 |
Duke Energy Progress, LLC 3.60% 2047 | 5 | 5 |
Emera US Finance LP 4.75% 2046 | 35 | 41 |
Entergy Corp. 2.95% 2026 | 65 | 66 |
FirstEnergy Corp. 3.90% 2027 | 85 | 91 |
Florida Power & Light Co. 3.15% 2049 | 32 | 33 |
Jersey Central Power & Light Co. 4.30% 20261 | 50 | 55 |
Mississippi Power Co. 3.95% 2028 | 105 | 115 |
NGL Energy Partners LP 7.50% 20261 | 150 | 151 |
NiSource Finance Corp. 2.65% 2022 | 10 | 10 |
Northern States Power Co. 2.90% 2050 | 45 | 44 |
NRG Energy, Inc. 7.25% 2026 | 35 | 38 |
Pacific Gas and Electric Co. 2.45% 20224 | 60 | 60 |
Pacific Gas and Electric Co. 4.65% 20281,4 | 125 | 133 |
Pacific Gas and Electric Co. 3.95% 20474 | 125 | 122 |
Public Service Electric and Gas Co. 3.20% 2029 | 30 | 32 |
Public Service Electric and Gas Co. 3.85% 2049 | 65 | 74 |
Public Service Enterprise Group Inc. 2.875% 2024 | 25 | 26 |
Puget Sound Energy, Inc. 3.25% 2049 | 25 | 25 |
San Diego Gas & Electric Co. 4.10% 2049 | 50 | 57 |
SCANA Corp. 6.25% 2020 | 30 | 30 |
Southern California Edison Co. 3.50% 2023 | 243 | 254 |
Southern California Edison Co. 2.85% 2029 | 25 | 25 |
Southern California Edison Co. 4.125% 2048 | 186 | 203 |
State Grid Overseas Investment Ltd. 3.50% 20271 | 200 | 211 |
Talen Energy Corp. 10.50% 20261 | 30 | 26 |
Talen Energy Corp. 7.25% 20271 | 50 | 51 |
Vistra Energy Corp. 7.625% 2024 | 74 | 77 |
3,200 | ||
Communication services 5.89% | ||
AT&T Inc. 4.35% 2029 | 45 | 50 |
CBS Corp. 7.25% 20241 | 25 | 26 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.00% 20281 | 200 | 207 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.75% 20301 | 120 | 122 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.125% 2049 | 133 | 142 |
Cinemark USA, Inc. 4.875% 2023 | 50 | 51 |
Clear Channel Worldwide Holdings, Inc. 9.25% 20241 | 85 | 94 |
Comcast Corp. 4.00% 2048 | 35 | 39 |
Cumulus Media New Holdings Inc. 6.75% 20261 | 35 | 37 |
Diamond Sports Group LLC 5.375% 20261 | 38 | 40 |
American Funds Multi-Sector Income Fund — Page 7 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Communication services (continued) | Principal amount (000) | Value (000) |
Diamond Sports Group LLC 6.625% 20271 | $30 | $31 |
Entercom Media Corp. 6.50% 20271 | 5 | 5 |
Frontier Communications Corp. 10.50% 2022 | 175 | 81 |
Frontier Communications Corp. 8.50% 20261 | 50 | 50 |
Frontier Communications Corp. 8.00% 20271 | 50 | 53 |
Gray Television, Inc. 7.00% 20271 | 40 | 44 |
iHeartCommunications, Inc. 5.25% 20271 | 32 | 33 |
Inmarsat PLC 4.875% 20221 | 125 | 127 |
Intelsat Jackson Holding Co. 5.50% 2023 | 110 | 103 |
Intelsat Jackson Holding Co. 6.625% 20242 | 35 | 36 |
Intelsat Jackson Holding Co. 8.50% 20241 | 45 | 45 |
Live Nation Entertainment, Inc. 4.875% 20241 | 50 | 52 |
Live Nation Entertainment, Inc. 5.625% 20261 | 35 | 37 |
Loral Space & Communications Inc. 6.50% 20271 | 39 | 40 |
MDC Partners Inc. 6.50% 20241 | 235 | 215 |
Meredith Corp. 6.875% 2026 | 125 | 128 |
Nexstar Escrow Corp. 5.625% 20271 | 10 | 10 |
OUTFRONT Media Cap LLC 5.00% 20271 | 25 | 26 |
Sirius XM Radio Inc. 4.625% 20231 | 75 | 77 |
Sirius XM Radio Inc. 4.625% 20241 | 10 | 10 |
Sprint Corp. 7.25% 2021 | 110 | 118 |
Sprint Corp. 6.875% 2028 | 340 | 372 |
Sprint Corp. 8.75% 2032 | 20 | 25 |
T-Mobile US, Inc. 4.00% 2022 | 50 | 51 |
T-Mobile US, Inc. 6.375% 2025 | 25 | 26 |
Univision Communications Inc. 5.125% 20231 | 100 | 100 |
Univision Communications Inc. 5.125% 20251 | 100 | 98 |
Verizon Communications Inc. 4.862% 2046 | 10 | 12 |
Vodafone Group PLC 5.25% 2048 | 48 | 56 |
Vodafone Group PLC 4.25% 2050 | 25 | 26 |
Warner Music Group 5.00% 20231 | 75 | 77 |
Warner Music Group 5.50% 20261 | 50 | 53 |
3,025 | ||
Consumer staples 4.76% | ||
Altria Group, Inc. 5.95% 2049 | 72 | 85 |
Anheuser-Busch Co./InBev Worldwide 4.90% 2046 | 90 | 107 |
B&G Foods, Inc. 5.25% 2025 | 125 | 128 |
B&G Foods, Inc. 5.25% 2027 | 60 | 61 |
British American Tobacco PLC 3.215% 2026 | 40 | 40 |
British American Tobacco PLC 3.557% 2027 | 20 | 20 |
British American Tobacco PLC 4.39% 2037 | 15 | 15 |
British American Tobacco PLC 4.54% 2047 | 225 | 216 |
Conagra Brands, Inc. 5.40% 2048 | 105 | 125 |
Cott Beverages Inc. 5.50% 20251 | 50 | 52 |
Darling Ingredients Inc. 5.25% 20271 | 125 | 132 |
Energizer Holdings, Inc. 7.75% 20271 | 100 | 112 |
Energizer SpinCo Inc. 5.50% 20251 | 25 | 26 |
First Quality Enterprises, Inc. 5.00% 20251 | 120 | 124 |
First Quality Finance Co., Inc. 4.625% 20211 | 10 | 10 |
JBS Investments GmbH II 5.75% 20281 | 200 | 209 |
Keurig Dr Pepper Inc. 4.057% 2023 | 90 | 95 |
Keurig Dr Pepper Inc. 4.417% 2025 | 20 | 22 |
Keurig Dr Pepper Inc. 5.085% 2048 | 20 | 24 |
American Funds Multi-Sector Income Fund — Page 8 of 15
unaudited
Bonds, notes & other debt instruments (continued) Corporate bonds & notes (continued) Consumer staples (continued) | Principal amount (000) | Value (000) |
Kraft Heinz Co. 4.875% 20491 | $120 | $121 |
Molson Coors Brewing Co. 4.20% 2046 | 20 | 20 |
Nestle Skin Health SA, Term Loan B, (3-month USD-LIBOR + 4.00%) 6.313% 20262,3 | 89 | 89 |
Performance Food Group, Inc. 5.50% 20271 | 84 | 89 |
Philip Morris International Inc. 3.375% 2029 | 235 | 247 |
Post Holdings, Inc. 5.00% 20261 | 75 | 78 |
Post Holdings, Inc. 5.50% 20291 | 30 | 31 |
Prestige Brands International Inc. 5.375% 20211 | 35 | 35 |
Wal-Mart Stores, Inc. 2.55% 2023 | 130 | 133 |
2,446 | ||
Real estate 1.68% | ||
Alexandria Real Estate Equities, Inc. 2.75% 2029 | 19 | 19 |
American Campus Communities, Inc. 3.30% 2026 | 38 | 39 |
Brookfield Property REIT Inc. 5.75% 20261 | 95 | 100 |
Gaming and Leisure Properties, Inc. 3.35% 2024 | 34 | 34 |
Gaming and Leisure Properties, Inc. 4.00% 2030 | 50 | 50 |
Howard Hughes Corp. 5.375% 20251 | 150 | 157 |
Iron Mountain Inc. 5.75% 2024 | 60 | 61 |
Medical Properties Trust, Inc. 5.00% 2027 | 50 | 53 |
Realogy Corp. 4.875% 20231 | 30 | 28 |
Realogy Corp. 9.375% 20271 | 180 | 168 |
SBA Communications Corp. 4.00% 2022 | 100 | 102 |
Westfield Corp. Ltd. 3.50% 20291 | 50 | 52 |
863 | ||
Total corporate bonds & notes | 35,638 | |
Mortgage-backed obligations 13.74% Commercial mortgage-backed securities 7.87% | ||
Citigroup Commercial Mortgage Trust, Series 2013-CG11, Class B, 3.732% 20463,9 | 95 | 98 |
Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class D, 5.389% 20461,3,9 | 250 | 265 |
Commercial Mortgage Trust, Series 2013-LC6, Class D, 4.404% 20461,3,9 | 113 | 116 |
Commercial Mortgage Trust, Series 2013-CR10, Class D, 4.949% 20461,3,9 | 200 | 207 |
Commercial Mortgage Trust, Series 2014-UBS2, Class AM, 4.048% 20479 | 100 | 107 |
Commercial Mortgage Trust, Series 2014-CR19, Class C, 4.906% 20473,9 | 300 | 321 |
Commercial Mortgage Trust, Series 2016-COR1, Class A4, 3.091% 20499 | 25 | 26 |
GS Mortgage Securities Corp., Series 2013-GC14, Class D, 4.907% 20461,3,9 | 370 | 379 |
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class D, 4.307% 20463,9 | 435 | 390 |
JPMBB Commercial Mortgage Securities Trust, Series 2013-C14, Class C, 4.859% 20463,9 | 230 | 244 |
JPMBB Commercial Mortgage Securities Trust, Series 2014-C19, Class D, 4.854% 20471,3,9 | 141 | 145 |
JPMBB Commercial Mortgage Securities Trust, Series 2015-C-31, Class C, 4.77% 20483,9 | 150 | 160 |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C7, Class C, 4.261% 20463,9 | 100 | 103 |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C7, Class D, 4.377% 20461,3,9 | 400 | 392 |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class AS, 4.499% 20463,9 | 40 | 43 |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C15, Class B, 4.565% 20473,9 | 100 | 108 |
Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class C, 4.693% 20453,9 | 20 | 21 |
Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class D, 4.917% 20451,3,9 | 44 | 46 |
Wells Fargo Commercial Mortgage Trust, Series 2016-C34, Class A4, 3.096% 20499 | 25 | 26 |
WF-RBS Commercial Mortgage Trust, Series 2013-C13, Class D, 4.276% 20451,3,9 | 40 | 41 |
WF-RBS Commercial Mortgage Trust, Series 2013-C11, Class C, 4.347% 20453,9 | 240 | 248 |
WF-RBS Commercial Mortgage Trust, Series 2012-C6, Class B, 4.697% 20459 | 40 | 42 |
American Funds Multi-Sector Income Fund — Page 9 of 15
unaudited
Bonds, notes & other debt instruments (continued) Mortgage-backed obligations (continued) Commercial mortgage-backed securities (continued) | Principal amount (000) | Value (000) |
WF-RBS Commercial Mortgage Trust, Series 2012-C7, Class C, 4.969% 20453,9 | $300 | $308 |
WF-RBS Commercial Mortgage Trust, Series 2013-C14, Class B, 3.841% 20463,9 | 198 | 205 |
4,041 | ||
Collateralized mortgage-backed obligations (privately originated) 4.74% | ||
Bellemeade Re Ltd., Series 2019-3A, Class M1B, (1-month USD-LIBOR + 1.60%) 3.618% 20291,3,9 | 400 | 401 |
Cascade Funding Mortgage Trust, Series 2018-RM2, Class A, 4.00% 20681,3,9 | 88 | 91 |
Commercial Mortgage Trust, Series 2012-CR3, Class C, 4.584% 20451,3,9 | 300 | 307 |
Commercial Mortgage Trust, Series 2013 CR7, Class C, 4.206% 20461,3,9 | 177 | 176 |
Commercial Mortgage Trust, Series 2013-LC13, Class B, 5.009% 20461,3,9 | 200 | 217 |
Finance of America Structured Securities Trust, Series 2019-JR2, Class A1, 2.00% 20691,9 | 368 | 392 |
Finance of America Structured Securities Trust, Series 2019-JR1, Class A, 2.00% 20691,9 | 139 | 149 |
Homeward Opportunities Fund Trust, Series 2019-01, Class A3, 3.606% 20591,3,9 | 253 | 255 |
Legacy Mortgage Asset Trust, Series 2019-GS5, Class A1, 3.20% 20591,3,9 | 202 | 203 |
Legacy Mortgage Asset Trust, Series 2019-GS2, Class A1, 3.75% 20591,3,9 | 243 | 245 |
2,436 | ||
Federal agency mortgage-backed obligations 1.13% | ||
Commercial Mortgage Trust, Series 2013-CR12, Class B, 4.762% 20463,9 | 210 | 221 |
Commercial Mortgage Trust, Series 2014-UBS4, Class AM, 3.968% 20479 | 68 | 73 |
WF-RBS Commercial Mortgage Trust, Series 2012-C8, Class B, 4.311% 20459 | 275 | 288 |
582 | ||
Total mortgage-backed obligations | 7,059 | |
Bonds & notes of governments & government agencies outside the U.S. 10.29% | ||
Argentine Republic 5.625% 2022 | 400 | 174 |
Argentine Republic 6.875% 2027 | 200 | 85 |
Bahrain (Kingdom of) 6.125% 2022 | 250 | 265 |
Banque Centrale de Tunisie 6.375% 2026 | €100 | 106 |
Cameroon (Republic of) 9.50% 2025 | $200 | 219 |
Costa Rica (Republic of) 4.375% 2025 | 200 | 192 |
Dominican Republic 5.95% 2027 | 250 | 271 |
Egypt (Arab Republic of) 7.50% 2027 | 250 | 269 |
Ghana (Republic of) 8.125% 20321 | 200 | 201 |
Greece (Hellenic Republic of) 3.75% 2028 | €200 | 260 |
Kazakhstan (Republic of) 4.875% 2044 | $200 | 241 |
Kenya (Republic of) 7.25% 2028 | 200 | 208 |
Pakistan (Islamic Republic of) 8.25% 2024 | 400 | 433 |
Poland (Republic of) 3.25% 2026 | 250 | 266 |
Qatar (State of) 3.375% 20241 | 200 | 210 |
Romania 3.50% 2034 | €30 | 38 |
Romania 5.125% 2048 | $100 | 116 |
Russian Federation 4.375% 2029 | 400 | 429 |
South Africa (Republic of) 5.875% 2030 | 200 | 214 |
Turkey (Republic of) 7.375% 2025 | 400 | 426 |
Ukraine Government 7.75% 2020 | 100 | 102 |
Ukraine Government 7.75% 2026 | 200 | 209 |
United Mexican States 4.50% 2029 | 200 | 218 |
United Mexican States 6.75% 2034 | 100 | 135 |
5,287 |
American Funds Multi-Sector Income Fund — Page 10 of 15
unaudited
Bonds, notes & other debt instruments (continued) U.S. Treasury bonds & notes���2.38% U.S. Treasury 2.38% | Principal amount (000) | Value (000) |
U.S. Treasury 1.25% 2024 | $189 | $187 |
U.S. Treasury 1.75% 202410 | 316 | 319 |
U.S. Treasury 1.625% 2029 | 445 | 443 |
U.S. Treasury 2.875% 204910 | 233 | 271 |
Total U.S. Treasury bonds & notes | 1,220 | |
Asset-backed obligations 1.07% | ||
Drive Auto Receivables Trust, Series 2018-1 Class D, 3.81% 20249 | 50 | 51 |
Global SC Finance V SRL, Series 2019-1A, Class B, 4.81% 20391,9 | 500 | 498 |
549 | ||
Municipals 0.37% Illinois 0.19% | ||
G.O. Bonds, Pension Funding, Series 2003, 5.10% 2033 | 90 | 98 |
South Carolina 0.18% | ||
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2015-E, 5.25% 2055 | 30 | 35 |
Public Service Auth., Rev. Ref. Obligations (Santee Cooper), Series 2016-C, 5.00% 2035 | 50 | 59 |
94 | ||
Total municipals | 192 | |
Total bonds, notes & other debt instruments (cost: $48,893,000) | 49,945 | |
Common stocks 0.10% Materials 0.10% | Shares | |
Hexion Holdings Corp., Class B11 | 4,181 | 50 |
Total common stocks (cost: $66,000) | 50 | |
Short-term securities 3.13% Money market investments 3.13% | ||
Capital Group Central Cash Fund 2.07%12 | 16,094 | 1,609 |
Total short-term securities (cost: $1,609,000) | 1,609 | |
Total investment securities100.46% (cost: $50,568,000) | 51,604 | |
Other assets less liabilities (0.46)% | (238) | |
Net assets100.00% | $51,366 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount13 (000) | Value at 9/30/201914 (000) | Unrealized (depreciation) appreciation at 9/30/2019 (000) |
2 Year U.S. Treasury Note Futures | Long | 113 | January 2020 | $22,600 | $24,352 | $(54) |
5 Year U.S. Treasury Note Futures | Long | 16 | January 2020 | 1,600 | 1,906 | (3) |
10 Year U.S. Treasury Note Futures | Long | 18 | December 2019 | 1,800 | 2,346 | 3 |
10 Year Ultra U.S. Treasury Note Futures | Short | 76 | December 2019 | (7,600) | (10,823) | 125 |
American Funds Multi-Sector Income Fund — Page 11 of 15
unaudited
Futures contracts (continued)
Contracts | Type | Number of contracts | Expiration | Notional amount13 (000) | Value at 9/30/201914 (000) | Unrealized (depreciation) appreciation at 9/30/2019 (000) |
20 Year U.S. Treasury Bond Futures | Long | 7 | December 2019 | $700 | $1,136 | $(27) |
30 Year Ultra U.S. Treasury Bond Futures | Short | 4 | December 2019 | (400) | (768) | (1) |
$43 |
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized appreciation at 9/30/2019 (000) | |
Purchases (000) | Sales (000) | |||
USD17 | EUR15 | JPMorgan Chase | 10/21/2019 | $—15 |
USD110 | EUR100 | Citibank | 10/28/2019 | 1 |
$1 |
Swap contracts
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 9/30/2019 (000) | Upfront payments (000) | Unrealized depreciation at 9/30/2019 (000) |
CDX.NA.HY.32 | 5.00%/Quarterly | 6/20/2024 | $2,029 | $(145) | $(112) | $(33) |
CDX.NA.HY.33 | 5.00%/Quarterly | 12/20/2024 | 200 | (13) | (13) | —15 |
$(125) | $(33) |
1 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $23,485,000, which represented 45.72% of the net assets of the fund. |
2 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $1,168,000, which represented 2.27% of the net assets of the fund. |
3 | Coupon rate may change periodically. |
4 | Scheduled interest and/or principal payment was not received. |
5 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $52,000, which represented .10% of the net assets of the fund. |
6 | Value determined using significant unobservable inputs. |
7 | Step bond; coupon rate may change at a later date. |
8 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
9 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
10 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $185,000, which represented .36% of the net assets of the fund. |
11 | Security did not produce income during the last 12 months. |
12 | Rate represents the seven-day yield at 9/30/2019. |
13 | Notional amount is calculated based on the number of contracts and notional contract size. |
14 | Value is calculated based on the notional amount and current market price. |
15 | Amount less than one thousand. |
American Funds Multi-Sector Income Fund — Page 12 of 15
unaudited
Valuation disclosures
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
Exchange-traded futures are generally valued at the official settlement price of the exchange or market on which such instruments are traded, as of the close of business on the day the futures are being valued. The average month-end notional amount of futures contracts while held was $33,800,000. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. The average month-end notional amount of open forward currency contracts while held was $65,000. Credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency. The average month-end notional amount of credit default swaps while held was $3,653,000.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
American Funds Multi-Sector Income Fund — Page 13 of 15
unaudited
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of September 30, 2019 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Bonds, notes & other debt instruments: | ||||
Corporate bonds & notes | $— | $35,635 | $3 | $35,638 |
Mortgage-backed obligations | — | 7,059 | — | 7,059 |
Bonds & notes of governments & government agencies outside the U.S. | — | 5,287 | — | 5,287 |
U.S. Treasury bonds & notes | — | 1,220 | — | 1,220 |
Asset-backed obligations | — | 549 | — | 549 |
Municipals | — | 192 | — | 192 |
Common stocks | — | 50 | — | 50 |
Short-term securities | 1,609 | — | — | 1,609 |
Total | $1,609 | $49,992 | $3 | $51,604 |
Other investments* | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Unrealized appreciation on futures contracts | $128 | $— | $— | $128 |
Unrealized appreciation on open forward currency contracts | — | 1 | — | 1 |
Liabilities: | ||||
Unrealized depreciation on futures contracts | (85) | — | — | (85) |
Unrealized depreciation on credit default swaps | — | (33) | — | (33) |
Total | $43 | $(32) | $— | $11 |
* | Futures contract, forward currency contracts and credit default swaps are not included in the investment portfolio. |
American Funds Multi-Sector Income Fund — Page 14 of 15
unaudited
Key to abbreviations and symbols |
Auth. = Authority |
EUR/€ = Euros |
G.O. = General Obligation |
LIBOR = London Interbank Offered Rate |
Ref. = Refunding |
Rev. = Revenue |
SOFR = Secured Overnight Financing Rate |
USD/$ = U.S. dollars |
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.
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.
American Funds Distributors, Inc., member FINRA.
© 2019 Capital Group. All rights reserved.
MFGEFPX-126-1119O-S75490 | American Funds Multi-Sector Income Fund — Page 15 of 15 |