14 important things you should know about American Funds TEPAX mutual fund

Updated: June 29, 2020
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Before we start: if you’re looking for TEPAX “stock” price, you can quickly find it out by visiting Finny and typing "TEPAX quote". If you’re looking for a quick scoop on TEPAX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "TEPAX". You’ll get all this info in one place.

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

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

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

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

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

Fact Sheet

1. Describe American Funds Portfolio Series: American Funds Tax-Exempt Preservation Portfolio; Class A Series (TEPAX).

The Fund seeks to current income that is exempt from federal income tax, consistent with preservation of capital. Under normal market conditions, the fund seeks to generate a material portion of its current income from underlying funds that invest in bonds that are exempt from regular income tax, such as municipal bonds.

2. What are TEPAX top holdings?

TEPAX has 0 stock holdings and 0 bond holdings.

The top 2 holdings represent 100.03% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Ltd-Term Tx-Ex Bd R-6 N/A 70.14%
American Funds Shrt-Term Tx-Exmpt Bd R-6 N/A 29.89%

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

TEPAX has generated the following returns:

  • 1-month return is 0.13%;
  • 3-month return is -0.55%;
  • 1-year return is 2.36%;
  • 3-year return is 2.03%;
  • 5-year return is 1.81%.

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

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

5. What is TEPAX dividend yield?

TEPAX yield is 1.79%.

6. What is TEPAX minimum initial investment amount?

TEPAX minimum initial investment amount is $1.00K.

7. What is TEPAX expense ratio?

TEPAX expense ratio is 0.67%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

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

TEPAX 12b-1 distribution fee is 0.3. TEPAX front-end sales load is 2.5. TEPAX back-end sales load is 0.

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

  • 1-year ax cost ratio is 0%;
  • 3-year ax cost ratio is 0%.

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

  • 3-year beta is 0.46;
  • 5-year beta is 0.53.

11. What is TEPAX Sharpe ratio?

  • 3-year Sharpe ratio is 0.17;
  • 5-year Sharpe ratio is 0.24.

Analysis

12. What is TEPAX Finny Score? TEPAX buy or sell?

TEPAX Finny Score is 29. Our quantitative analysis shows 2 reasons to buy TEPAX and 5 reasons to sell it, resulting in the Finny Score of 29.

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

The following are TEPAX strengths from our perspective:

  • TEPAX 3-year Beta is 0.46, which is inversely correlated with the index (BBgBarc Municipal TR USD). The could be good if you're trying to hedge your portfolio.
  • TEPAX 5-year Beta is 0.53, which is inversely correlated with the index (BBgBarc Municipal TR USD). The could be good if you're trying to hedge your portfolio.

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

The following are TEPAX weaknesses from our perspective:

  • TEPAX net assets are $339.70 million. This fund is not a popular choice with retail investors.
  • TEPAX 3-year return is 2.03%, which is lower than the 3-year return of the benchmark index (BBgBarc Municipal 1-7 Yr Blend TR USD), 2.29%.
  • TEPAX 5-year return is 1.81%, which is lower than the 5-year return of the benchmark index (BBgBarc Municipal 1-7 Yr Blend TR USD), 2.08%.
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.3%, while the maximum front-end sales load is 2.5%. 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.
  • TEPAX expense ratio is 0.67%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the TEPAX review, we covered TEPAX 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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