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10 important things you should know about American Funds UGSCX mutual fund

Updated: October 10, 2021
14
Bull Case
  • 3-year return above the benchmark
Bear Case
  • Low net assets
  • 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 UGSCX “stock” price, you can quickly find it out by visiting Finny and typing "UGSCX quote". If you’re looking for a quick scoop on UGSCX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "UGSCX". You’ll get all this info in one place.

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

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

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

  1. Describe American Funds Income Series: US Government Securities Fund; Class C Shares (UGSCX).
  2. What are UGSCX holdings?
  3. What is UGSCX performance? What are UGSCX historical returns?
  4. What is UGSCX dividend yield?
  5. What is UGSCX minimum initial investment amount?
  6. Does UGSCX have any sales loads or 12b-1 distribution expenses?
  7. What is UGSCX Finny Score? UGSCX buy or sell?
  8. What are the pros of investing in UGSCX? What are UGSCX buy reasons?
  9. What are the cons of investing in UGSCX? What are UGSCX 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 C Shares (UGSCX).

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 UGSCX top holdings?

UGSCX has 0 stock holdings and 555 bond holdings.

The top 9 holdings represent 31.88% of total assets. Here are the top holdings:

Name Symbol % Assets
Federal National Mortgage Association 1.5% N/A 10.63%
Government National Mortgage Association 2% N/A 6.36%
United States Treasury Bonds 1.25% N/A 2.97%
United States Treasury Bonds 1.38% N/A 2.77%
GNMA 2.5% N/A 2.43%
Federal National Mortgage Association 2% N/A 1.97%
Federal National Mortgage Association 0.62% N/A 1.66%
United States Treasury Notes 1.5% N/A 1.55%
United States Treasury Bills N/A 1.54%

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

UGSCX has generated the following returns:

  • 1-month return is -0.75%;
  • 3-month return is -0.50%;
  • 1-year return is -0.50%;
  • 3-year return is 4.70%;
  • 5-year return is 1.86%;
  • 10-year return is 1.45%;
  • 15-year return is 2.66%.

4. What is UGSCX dividend yield?

UGSCX yield is 0.38%.

5. What is UGSCX minimum initial investment amount?

UGSCX minimum initial investment amount is $1.00K.

6. Does UGSCX have any sales loads or 12b-1 distribution expenses?

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

Analysis

7. What is Finny Score? buy or sell?

Finny Score is 14. Our quantitative analysis shows 1 reason to buy and 6 reasons to sell it, resulting in the Finny Score of 14.

8. What are the pros of investing in UGSCX? What are UGSCX buy reasons?

The following are UGSCX strengths from our perspective:

  • UGSCX 3-year return is 4.7%, which is higher than the 3-year return of the benchmark index (Bloomberg US Govt/Mortgage TR USD), 4.68%.

9. What are the cons of investing in UGSCX? What are UGSCX negatives?

The following are UGSCX weaknesses from our perspective:

  • UGSCX net assets are $171.30 million. This fund is not a popular choice with retail investors.
  • UGSCX 5-year return is 1.86%, which is lower than the 5-year return of the benchmark index (Bloomberg US Govt/Mortgage TR USD), 2.27%.
  • UGSCX 10-year return is 1.45%, which is lower than the 10-year return of the benchmark index (Bloomberg US Govt/Mortgage TR USD), 2.32%.
  • UGSCX 15-year return is 2.66%, which is lower than the 15-year return of the benchmark index (Bloomberg US Govt/Mortgage TR USD), 3.71%.
  • UGSCX expense ratio is 1.34%, 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 UGSCX review, we covered UGSCX 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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