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

Updated: September 19, 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 CGTCX “stock” price, you can quickly find it out by visiting Finny and typing "CGTCX quote". If you’re looking for a quick scoop on CGTCX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "CGTCX". You’ll get all this info in one place.

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

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

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

  1. Describe American Funds Income Series: US Government Securities Fund; Class 529-C Shares (CGTCX).
  2. What are CGTCX holdings?
  3. What is CGTCX performance? What are CGTCX historical returns?
  4. How many up and down years did CGTCX have historically?
  5. What is CGTCX dividend yield?
  6. What is CGTCX minimum initial investment amount?
  7. What is CGTCX expense ratio?
  8. Does CGTCX have any sales loads or 12b-1 distribution expenses?
  9. What is CGTCX tax efficiency (tax-cost ratio)?
  10. What is CGTCX beta? How would you assess CGTCX risk?
  11. What is CGTCX Sharpe ratio?
  12. What is CGTCX Finny Score? CGTCX buy or sell?
  13. What are the pros of investing in CGTCX? What are CGTCX buy reasons?
  14. What are the cons of investing in CGTCX? What are CGTCX sell reasons?

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

Fact Sheet

1. Describe American Funds Income Series: US Government Securities Fund; Class 529-C Shares (CGTCX).

The Fund seeks to provide a high level of current income as well as preserve your investment, by investing primarily in securities that are guaranteed by the United States Government. Securities in the Fund will be rated AAA/Aaa.

2. What are CGTCX top holdings?

CGTCX has 0 stock holdings and 474 bond holdings.

The top 9 holdings represent 31.47% of total assets. Here are the top holdings:

Name Symbol % Assets
Federal National Mortgage Association 3.5% N/A 7.91%
Government National Mortgage Association 3.5% N/A 6.45%
Federal National Mortgage Association 3% N/A 5.26%
United States Treasury Notes 0.38% N/A 2.72%
Federal National Mortgage Association 2% N/A 2.33%
United States Treasury Notes 1.5% N/A 1.83%
Federal Home Loan Banks N/A 1.81%
United States Treasury Notes 1.88% N/A 1.69%
United States Treasury Notes 2.12% N/A 1.47%

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

CGTCX has generated the following returns:

  • 1-month return is -0.73%;
  • 3-month return is 0.89%;
  • 1-year return is 7.55%;
  • 3-year return is 3.75%;
  • 5-year return is 2.56%;
  • 10-year return is 2.03%;
  • 15-year return is 2.77%.

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

In the last 10 years, CGTCX had 7 up years and 3 down years. See Performances

5. What is CGTCX dividend yield?

CGTCX yield is 1.1%.

6. What is CGTCX minimum initial investment amount?

CGTCX minimum initial investment amount is N/A.

7. What is CGTCX expense ratio?

CGTCX expense ratio is 1.45%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses. See Expenses

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

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

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

  • 1-year ax cost ratio is 0.64%;
  • 3-year ax cost ratio is 0.47%.

See Taxes

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

  • 3-year beta is 0.72;
  • 5-year beta is 0.76;
  • 10-year beta is 0.84.

See Risks

11. What is CGTCX Sharpe ratio?

  • 3-year Sharpe ratio is 0.64;
  • 5-year Sharpe ratio is 0.48;
  • 10-year Sharpe ratio is 0.52.

See Risks

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 CGTCX? What are CGTCX buy reasons?

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

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

The following are CGTCX weaknesses from our perspective:

  • <strong>CGTCX net assets</strong> are $28.10 million. This fund is not a popular choice with retail investors.
  • <strong>CGTCX 3-year return</strong> is 3.75%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 4.57%.
  • <strong>CGTCX 5-year return</strong> is 2.56%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 3.51%.
  • <strong>CGTCX 10-year return</strong> is 2.03%, which is lower than the 10-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 3.1%.
  • <strong>CGTCX 15-year return</strong> is 2.77%, which is lower than the 15-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 4.05%.
  • <strong>CGTCX expense ratio</strong> is 1.45%, 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 CGTCX review, we covered CGTCX 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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