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

Updated: September 09, 2020
N/A
Bull Case
  • No Bull case arguments for now!
Bear Case
  • Low net assets
  • 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 AHTCX “stock” price, you can quickly find it out by visiting Finny and typing "AHTCX quote". If you’re looking for a quick scoop on AHTCX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "AHTCX". You’ll get all this info in one place.

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

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

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

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

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 AHTCX top holdings?

AHTCX 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 AHTCX performance? What are AHTCX historical returns?

AHTCX has generated the following returns:

  • 1-month return is 1.32%;
  • 3-month return is 4.78%;
  • 1-year return is 2.35%;
  • 3-year return is 2.91%;
  • 5-year return is 4.31%;
  • 10-year return is 4.48%;
  • 15-year return is 4.68%.

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

In the last 10 years, AHTCX had 7 up years and 3 down years.

5. What is AHTCX dividend yield?

AHTCX yield is 5.44%.

6. What is AHTCX minimum initial investment amount?

AHTCX minimum initial investment amount is $1.00K.

7. What is AHTCX expense ratio?

AHTCX expense ratio is 1.48%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

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

AHTCX 12b-1 distribution fee is 1. AHTCX front-end sales load is 0. AHTCX back-end sales load is 1.

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

  • 1-year ax cost ratio is 2.19%;
  • 3-year ax cost ratio is 2.12%.

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

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

11. What is AHTCX Sharpe ratio?

  • 3-year Sharpe ratio is -0.01;
  • 5-year Sharpe ratio is 0.20;
  • 10-year Sharpe ratio is 0.55.

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 0. Our quantitative analysis shows 0 reasons to buy and 7 reasons to sell it, resulting in the Finny Score of 0.

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

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

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

The following are AHTCX weaknesses from our perspective:

  • AHTCX net assets are $504.10 million. This fund is not a popular choice with retail investors.
  • AHTCX 3-year return is 2.91%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 4.81%.
  • AHTCX 5-year return is 4.31%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 6.39%.
  • AHTCX 10-year return is 4.48%, which is lower than the 10-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 6.82%.
  • AHTCX 15-year return is 4.68%, which is lower than the 15-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 7.11%.
  • AHTCX expense ratio is 1.48%, 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 deferred sales fee. The maximum 12b1 fee is 1%, while the maximum deferred sales load is 1%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Deferred sales load is a back-end sales charge and is imposed when an investor redeems shares.
In the AHTCX review, we covered AHTCX 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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