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American Funds Launches Two New Fixed Income Funds

American Funds, a family of mutual funds from Capital Group, has launched two new fixed income funds, American Funds Corporate Bond Fund and American Funds Emerging Markets Bond Fund.

According to a press release, the Corporate Bond Fund will invest at least 80% of its assets in corporate bonds and will invest exclusively in investment-grade securities. It will be benchmarked against the Barclay's U.S. Corporate Investment Grade Bond Index. The fund may invest in debt securities issued by companies domiciled outside the United States, including issuers domiciled in developing countries. All securities held by the fund will be denominated in U.S. dollars.

Emerging Markets Bond Fund

The Emerging Markets Bond Fund will invest at least 80% of its assets in securities of emerging markets issuers, including sovereign debt and debt of companies located in or with substantial business in emerging markets. The fund may also invest in debt securities with a wide range of maturities of any quality, which gives the fund the ability to pursue a high level of total return over the long term. The fund may invest up to 100% of its assets in securities denominated in currencies other than the U.S. dollar.

American Funds now has 17 fixed income funds available to investors.

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