Earlier this month, Capital Research made some manager changes to American Funds Intermediate Bond Fund of America (AIBAX), which has a Neutral Morningstar Analyst Rating, in an effort to boost the fund's lackluster returns.
Longtime comanager David Hoag, who had been a named manager on the $9.3 billion fund for more than a decade and had managed approximately 30% of the fund, was reassigned to focus his energies on the $4.5 billion, Neutral-rated American Funds Short-Term Bond Fund of America (ASBAX), which he has managed since 2006. Replacing him were David Lee and Fergus MacDonald, who are focusing primarily on corporate bonds and mortgages, respectively. Longtime managers John Smet and Mark Brett, who manage more-diversified sleeves of the portfolio, remain on the fund. They also serve as members of Capital Research's Portfolio Strategy Group, which in early 2013 started setting more-explicit parameters for all American Funds bond funds, including duration, curve positioning, inflation protection, credit, and sector weightings.
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