INVESTMENT INSIGHTS | September 2016 | FEATURING John R. Queen , Gregory D. Johnson & Hilda L. Applbaum
In recent years, many investors have turned to balanced funds to navigate a challenging market environment. Although the U.S. remains a bright spot in global financial markets, low bond yields have made income generation more difficult while equities on the whole appear fully valued following a sharp run-up since the financial crisis. Managers of balanced funds can more nimbly explore evolving opportunity sets using both allocation and security selection. In this Q&A, three portfolio managers with American Balanced Fund® discuss their investment approach in the current environment
INVESTMENT INSIGHTS | December 2015
MARKET COMMENTARY | September 2015
INVESTMENT INSIGHTS | September 2015 | FEATURING Stephen Green & Andrew H. Dougherty
The Rise and Fall of China’s Stock Market
A sharp selloff in China’s stock market, a surprise currency devaluation and a persistent slowdown in economic activity have raised doubts about the ability of the world’s second-largest economy to maintain the hypergrowth levels of the past two decades.
Against this backdrop, economist Stephen Green and China affairs specialist Andrew Dougherty discuss:
INVESTMENT INSIGHTS | August 2015 | FEATURING Hilda L. Applbaum
In a Low-Yield Environment, Income Stocks Remain in Demand
With central banks around the world aggressively suppressing interest rates, the challenge of finding reliable income-producing investments has never been greater. Few investors are more familiar with this dilemma than portfolio manager Hilda Applbaum, the principal investment officer of The Income Fund of America®. In this conversation, Hilda shares her perspective on:
A portfolio manager discusses the recent evolution among some Japanese companies toward a more shareholder-friendly management strategy.
INVESTMENT INSIGHTS | August 2013 | FEATURING Joyce E. Gordon
Portfolio manager Joyce Gordon tackles the challenge of finding yield in today’s market, where many traditional dividend-paying stocks have risen sharply, making valuations more expensive. She is finding newer sources of dividend growth, such as technology companies, as well as attractive opportunities outside the U.S. She is also bracing for higher U.S. interest rates and the implications for funds such as Capital Income Builder and American Mutual Fund.
INVESTMENT INSIGHTS | July 2013 | FEATURING Steven T. Watson
A flood of assets into higher yielding equities and a slowdown in economic growth in China are two of the major issues shaking the confidence of global investors. Portfolio manager Steve Watson explains how a contrarian approach to the market can help uncover opportunities even when investors are most doubtful.
As a manager in several dividend-focused funds, particularly International Growth and Income Fund, where are you currently finding value among dividend-paying companies?
Insurance companies have done very well over the past few months. The insurance companies were hurt by being part of the financials sector during the global financial crisis, even though their business models were much more robust than their share prices indicated.
INVESTMENT INSIGHTS | March 2012
The top-yielding quintile of the Standard & Poor’s 500 Composite Index had the worst returns in 2009 and the best returns in 2011. We are often asked the question, “Where do these stocks go from here?” While there may be some value in trying to time an entry point into dividend-focused strategies, there is only so far one can go with that approach; we believe it is best to take a strategic, long-term approach to dividend investing.
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the funds’ characteristics statement, which can be obtained from a financial professional or your relationship manager, and should be read carefully before investing.
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. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness. If agency ratings differ, the security will be considered to have received the of those ratings, consistent with the fund's investment policies. Securities in the Unrated category 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 fund investment policies. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus.
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