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

Updated: September 28, 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 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. How many up and down years did UGSCX have historically?
  5. What is UGSCX dividend yield?
  6. What is UGSCX minimum initial investment amount?
  7. What is UGSCX expense ratio?
  8. Does UGSCX have any sales loads or 12b-1 distribution expenses?
  9. What is UGSCX tax efficiency (tax-cost ratio)?
  10. What is UGSCX beta? How would you assess UGSCX risk?
  11. What is UGSCX Sharpe ratio?
  12. What is UGSCX Finny Score? UGSCX buy or sell?
  13. What are the pros of investing in UGSCX? What are UGSCX buy reasons?
  14. 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 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 UGSCX performance? What are UGSCX historical returns?

UGSCX has generated the following returns:

  • 1-month return is -0.33%;
  • 3-month return is 0.55%;
  • 1-year return is 8.82%;
  • 3-year return is 3.91%;
  • 5-year return is 2.57%;
  • 10-year return is 2.04%;
  • 15-year return is 2.86%.

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

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

UGSCX up and down years

5. What is UGSCX dividend yield?

UGSCX yield is 1.12%.

6. What is UGSCX minimum initial investment amount?

UGSCX minimum initial investment amount is $1.00K.

7. What is UGSCX expense ratio?

UGSCX expense ratio is 1.4%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

UGSCX expenses

8. 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.

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

  • 1-year ax cost ratio is 0.64%;
  • 3-year ax cost ratio is 0.48%.
UGSCX tax costs

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

  • 3-year beta is 0.71;
  • 5-year beta is 0.76;
  • 10-year beta is 0.83;
  • 15-year beta is 0.87.
UGSCX Beta

11. What is UGSCX Sharpe ratio?

  • 3-year Sharpe ratio is 0.65;
  • 5-year Sharpe ratio is 0.50;
  • 10-year Sharpe ratio is 0.53;
  • 15-year Sharpe ratio is 0.50.
UGSCX Sharpe ratio

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 UGSCX? What are UGSCX buy reasons?

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

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

The following are UGSCX weaknesses from our perspective:

  • <strong>UGSCX net assets</strong> are $178.90 million. This fund is not a popular choice with retail investors.
  • <strong>UGSCX 3-year return</strong> is 3.91%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 4.73%.
  • <strong>UGSCX 5-year return</strong> is 2.57%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 3.57%.
  • <strong>UGSCX 10-year return</strong> is 2.04%, which is lower than the 10-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 3.08%.
  • <strong>UGSCX 15-year return</strong> is 2.86%, which is lower than the 15-year return of the benchmark index (Bloomberg Barclays US Govt/Mortgage TR USD), 4.09%.
  • <strong>UGSCX expense ratio</strong> is 1.4%, 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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