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15 important things you should know about American Funds AHITX mutual fund

Updated: September 09, 2020
N/A
Bull Case
  • No Bull case arguments for now!
Bear Case
  • 3-year return below the benchmark
  • 5-year return below the benchmark
  • 10-year return below the benchmark
  • 15-year return below the benchmark
  • High expense ratio
  • Sales load and/or distribution fees

Before we start: if you’re looking for AHITX “stock” price, you can quickly find it out by visiting Finny and typing "AHITX quote". If you’re looking for a quick scoop on AHITX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "AHITX". You’ll get all this info in one place.

Are you looking to buy or sell AHITX? Or perhaps you’re looking for AHITX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this AHITX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: AHITX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: AHITX buy or sell; the pros and cons of investing in AHITX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to AHITX.

And here is the list of questions we’ll answer:

  1. Describe American High-Income Trust; Class A Shares (AHITX).
  2. What are AHITX holdings?
  3. What is AHITX performance? What are AHITX historical returns?
  4. How many up and down years did AHITX have historically?
  5. What is AHITX dividend yield?
  6. What is AHITX minimum initial investment amount?
  7. What is AHITX expense ratio?
  8. Does AHITX have any sales loads or 12b-1 distribution expenses?
  9. What is AHITX tax efficiency (tax-cost ratio)?
  10. What is AHITX beta? How would you assess AHITX risk?
  11. What is AHITX Sharpe ratio?
  12. What is AHITX Finny Score? AHITX buy or sell?
  13. What are the pros of investing in AHITX? What are AHITX buy reasons?
  14. What are the cons of investing in AHITX? What are AHITX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American High-Income Trust; Class A Shares (AHITX).

The Fund seeks to provide a high level of current income and, secondarily, capital appreciation. At least 65% of the portfolio will be invested in high-yield, lower rated bonds (Ba or BB or below at the time of purchase) and other similar securities, including preferred stocks.

2. What are AHITX top holdings?

AHITX has 30 stock holdings and 680 bond holdings.

The top 10 holdings represent 8.62% of total assets. Here are the top holdings:

Name Symbol % Assets
Bausch Health Companies Inc 6.12% N/A 1.03%
Sprint Capital Corporation 8.75% N/A 0.97%
Petsmart Inc 7.12% N/A 0.96%
Gogo Intermediate Holdings LLC and Gogo Finance Co. Inc. 9.88% N/A 0.89%
MDC Partners Inc. 6.5% N/A 0.89%
Sprint Capital Corporation 6.88% N/A 0.85%
First Quantum Minerals Ltd. 7.5% N/A 0.81%
Petsmart Inc 8.88% N/A 0.78%
Tenet Healthcare Corporation 4.88% N/A 0.77%
Petsmart Inc 5.88% N/A 0.67%

3. What is AHITX performance? What are AHITX historical returns?

AHITX has generated the following returns:

  • 1-month return is 1.39%;
  • 3-month return is 4.98%;
  • 1-year return is 3.11%;
  • 3-year return is 3.70%;
  • 5-year return is 5.12%;
  • 10-year return is 5.30%;
  • 15-year return is 5.51%.

4. How many up and down years did AHITX have historically?

In the last 10 years, AHITX had 8 up years and 2 down years.

5. What is AHITX dividend yield?

AHITX yield is 6.18%.

6. What is AHITX minimum initial investment amount?

AHITX minimum initial investment amount is $1.00K.

7. What is AHITX expense ratio?

AHITX expense ratio is 0.73%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does AHITX have any sales loads or 12b-1 distribution expenses?

AHITX 12b-1 distribution fee is 0.26. AHITX front-end sales load is 3.75. AHITX back-end sales load is 0.

9. What is AHITX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 2.46%;
  • 3-year ax cost ratio is 2.43%.

10. What is AHITX beta? How would you assess AHITX risk?

  • 3-year beta is 0.26;
  • 5-year beta is 0.29;
  • 10-year beta is 0.28.

11. What is AHITX Sharpe ratio?

  • 3-year Sharpe ratio is 0.08;
  • 5-year Sharpe ratio is 0.29;
  • 10-year Sharpe ratio is 0.66.

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 0. Our quantitative analysis shows 0 reasons to buy and 6 reasons to sell it, resulting in the Finny Score of 0.

13. What are the pros of investing in AHITX? What are AHITX buy reasons?

We don't see any strong reasons to buy AHITX.

14. What are the cons of investing in AHITX? What are AHITX negatives?

The following are AHITX weaknesses from our perspective:

  • AHITX 3-year return is 3.7%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 4.81%.
  • AHITX 5-year return is 5.12%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 6.39%.
  • AHITX 10-year return is 5.3%, which is lower than the 10-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 6.82%.
  • AHITX 15-year return is 5.51%, which is lower than the 15-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 7.11%.
  • AHITX expense ratio is 0.73%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.26%, while the maximum front-end sales load is 3.75%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.
In the AHITX review, we covered AHITX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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