American Funds U.S. Government Securities is designed to provide straightforward government exposure to serve as portfolio ballast when credit and equity markets are stressed. However, its intermediate government Morningstar Category has become increasingly competitive in recent years, and this offering hasn’t differentiated itself relative to those options, resulting in a Morningstar Analyst Rating of Neutral on its cheaper share classes and Negative on its more-expensive share classes.
Will UGSFX outperform in future?
Get our overall rating based on a fundamental assessment of the pillar’s below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable UGSFX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the UGSFX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of UGSFX’s parent organization’s priorities and whether they’re in line with investors’ interests.