UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
Certified Shareholder Report of
Registered Management Investment Companies
Investment Company Act File Number: 811-22496
American Funds Global Balanced Fund
(Exact Name of Registrant as Specified in Charter)
6455 Irvine Center Drive
Irvine, California 92618
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (949) 975-5000
Date of fiscal year end: October 31
Date of reporting period: October 31, 2022
Hong T. Le
American Funds Global Balanced Fund
6455 Irvine Center Drive
Irvine, California 92618
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
American Funds®
Annual report |
A balanced fund with
global scope
American Funds Global Balanced Fund seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.
This fund is one of more than 40 offered by Capital Group, home of American Funds, one of the nation’s largest mutual fund families. For over 90 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class F-2 and Class A shares at net asset value. If a sales charge (maximum 5.75% for Class A shares) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com.
Here are the average annual total returns on a $1,000 investment for periods ended September 30, 2022 (the most recent calendar quarter-end):
1 year | 5 years | 10 years | ||||
Class F-2 shares | –19.02% | 1.45% | 4.41% | |||
Class A shares (reflecting 5.75% maximum sales charge) | –23.87 | 0.03 | 3.57 |
For other share class results, visit capitalgroup.com and americanfundsretirement.com.
The total annual fund operating expense ratios are 0.59% for Class F-2 shares and 0.83% for Class A shares as of the prospectus dated January 1, 2023 (unaudited). The expense ratios are restated to reflect current fees.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information.
The fund’s 30-day yield as of October 31, 2022, was 2.34% for Class F-2 shares and 2.02% for Class A shares, calculated in accordance with the U.S. Securities and Exchange Commission formula. The fund’s 12-month distribution rate as of that date was 2.03% for Class F-2 shares and 1.67% for Class A shares. The Class A share values reflect the 5.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Investing outside the U.S. may be subject to additional risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Contents
1 | Letter to investors |
4 | The value of a long-term perspective |
5 | Investment portfolio |
24 | Financial statements |
51 | Board of trustees and other officers |
Fellow investors
American Funds Global Balanced Fund faced a challenging landscape in its latest fiscal year but outpaced its primary benchmark. Global stocks and bonds posted double-digit declines as surging inflation prompted major central banks to aggressively raise interest rates, driving recession fears in many countries. The backdrop was further complicated by Russia’s invasion of Ukraine, which spurred volatility in energy prices. Relentless strength in the U.S. dollar weighed on non-U.S. stocks and bonds.
U.S. stocks lost less ground than most other developed markets. European equities fell sharply as spiking energy prices threatened to thrust the continent into recession. Asian stocks struggled amid an economic slowdown in China. Some emerging markets bucked the trend, led by advances in Brazil and Turkey. Global bonds, which can often provide a counterweight to stock market losses, posted deeply negative returns. The MSCI ACWI (All Country World Index), which measures global equity markets, lost 19.96%. The Bloomberg Global Aggregate Index, which measures investment-grade bonds (rated BBB–/Baa3 and above)1, dropped 20.79%.
For the 12 months ended October 31, 2022, Class F-2 shares of American Funds Global Balanced Fund fell 17.78%. The fund exceeded its primary benchmark, the 60%/40% MSCI ACWI/Bloomberg Global Aggregate Index, which lost 20.11%. Over its lifetime, the fund has returned an annualized 4.85%, outpacing the 60%/40% blend’s 4.24% lifetime return. The fund made dividend distributions during the past year totaling approximately 66 cents per share (Class F-2).
Results at a glance
For periods ended October 31, 2022, with all distributions reinvested
Cumulative total returns | Average annual total returns | |||||||||||||||
1 year | 5 years | 10 years | Lifetime2 | |||||||||||||
American Funds Global Balanced Fund (Class F-2 shares)3 | –17.78 | % | 2.19 | % | 4.83 | % | 4.85 | % | ||||||||
American Funds Global Balanced Fund (Class A shares) | –17.99 | 1.95 | 4.60 | 4.61 | ||||||||||||
60%/40% MSCI All Country World Index/Bloomberg Global Aggregate Index4,5,6 | –20.11 | 2.41 | 4.51 | 4.24 | ||||||||||||
MSCI All Country World Index (ACWI)4 | –19.96 | 5.24 | 7.98 | 6.82 | ||||||||||||
Bloomberg Global Aggregate Index5 | –20.79 | –2.38 | –0.98 | –0.02 |
The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
1 | Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer’s creditworthiness. |
2 | Since Class A inception on 2/1/11. |
3 | Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on the results of the original share class of the fund without a sales charge, adjusted for typical estimated expenses. Visit capitalgroup.com for more information on specific expense adjustments and the actual dates of first sale. |
4 | Source: MSCI. The index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. |
5 | Source: Bloomberg Index Services Ltd. The index represents the global investment-grade fixed income markets. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. |
6 | The 60%/40% MSCI ACWI/Bloomberg Global Aggregate Index blends the MSCI ACWI with the Bloomberg Global Aggregate Index by weighting their total returns at 60% and 40%, respectively. Results assume the blend is rebalanced monthly. Effective January 1, 2021, the 60%/40% MSCI ACWI/Bloomberg Global Aggregate Index became the fund’s primary benchmark. |
American Funds Global Balanced Fund | 1 |
Market review
U.S. stocks saw a broad selloff as the U.S. Federal Reserve took aim at the highest inflation readings since the 1980s. The S&P 500 Index fell 15% for the year. Stock markets in other advanced economies also experienced double-digit declines. In Europe, countries with significant dependence on Russian energy lost ground. Stocks in Germany and Italy dropped 33% and 24%, respectively. Elsewhere, shares fell 12% in the U.K. and 25% in Japan.
Energy was the sole sector in the MSCI ACWI to notch gains as oil and gas prices rose. In contrast, the information technology and consumer discretionary sectors were among the biggest laggards. Both sectors had seen triple-digit gains from the trough of the COVID-19 bear market in early 2020 until the start of 2022.
Expectations of a recession hung over the U.S. economy for most of the fiscal year. While U.S. gross domestic product opened 2022 by contracting for two consecutive quarters — meeting one commonly held definition of recession — output rebounded in the third quarter. However, economic data suggested that rising interest rates are pressuring the U.S. housing market and weighing on consumer spending. Meanwhile, the Fed continued its aggressive campaign of tighter monetary policy, raising rates from near-zero to a target range of 3.00%–3.25%, the highest since 2008.
In the euro area, inflation reached a record 10.7% in October, even as growth slowed sharply in the third quarter. The European Central Bank raised rates for the first time since 2011. The invasion of Ukraine underscored the continent’s high degree of energy dependence on Russia, as soaring utility bills cut deeply into household budgets. Europe’s export-dependent economy is also vulnerable to weak demand from China, which has seen growth slow amid a series of lockdowns under its zero-COVID policy and stress in its property sector.
In the U.K., high inflation, weak growth and climbing interest rates have occurred alongside political upheaval. Rishi Sunak became the country’s third prime minister in seven weeks when he was appointed in late October to replace the embattled Liz Truss.
In Asia, most equity markets fell sharply. The Bank of Japan maintained ultra-loose monetary policy despite rising inflation, leading the government to intervene in foreign exchange markets to support the yen, which hit a 32-year low in October.
Most currencies saw double-digit declines against the U.S. dollar. The Japanese yen lost 23%, the euro fell 15%, the British pound declined 16% and the Chinese renminbi dropped 12%.
The global bond market tumbled as inflation and interest rates soared. The benchmark 10-year U.S. Treasury yield rose 249 basis points to 4.05%. The U.S. Treasury yield curve inverted as yields on shorter-term bonds that are more sensitive to Fed rate hikes rose more than those on longer-term bonds. U.S. investment-grade corporate bond spreads nearly doubled, and their negative returns trailed those of their high-yield counterparts.
Portfolio review
The fund posted a negative absolute return over the full fiscal year but outpaced the unmanaged 60%/40% MSCI ACWI/Bloomberg Global Aggregate Index blend.
The equity portion of the fund declined in value, but results outpaced the benchmark MSCI ACWI. The less-than-benchmark position in the consumer discretionary sector helped the fund’s results relative to the index. Less-than-benchmark holdings in Amazon, Tesla and Alibaba were the main positive contributors. The industrials sector was another bright spot, helped by greater-than-benchmark exposures to defense companies Raytheon, General Dynamics and BAE Systems. The fund’s less-than-benchmark exposure to information technology was also helpful. Broadcom was a large positive contributor, and lack of exposure to Nvidia, Paypal and Shopify was also beneficial. Elsewhere in technology, an underweight holding in Apple was the largest detractor from relative returns for the fund.
The energy sector was a modest contributor to relative results, helped by a larger-than-index holding in Canadian Natural Resources, the fund’s top equity contributor.
The health care sector was the largest sector detractor. Not holding drug companies Eli Lilly and Johnson & Johnson had a negative impact. However, biotech Gilead was one of the larger contributors to relative returns across the fund.
2 | American Funds Global Balanced Fund |
Elsewhere, investments in Netflix in the communication services sector and ING Group in the financials sector detracted.
In fixed income, the speed and magnitude of central bank rate hikes weighed heavily on returns. The fixed income portion of the fund posted negative returns but exceeded the benchmark Bloomberg Global Aggregate Index. Sector selection was positive for relative returns, owing mostly to a greater-than-benchmark exposure to U.S. dollar denominated assets. Less-than-benchmark exposures to the euro, British pound and Chinese yuan renminbi also helped. A small exposure to Russian bonds hurt the fund’s relative returns.
American Funds Global Balanced Fund strives for the balanced accomplishment of three equally important objectives: long-term growth of capital, conservation of principal and current income. The fund remains tilted toward stocks with above average dividend yields and those we expect to be resilient during periods of market volatility. Our asset allocation remains well balanced, with approximately 60% of assets in equities, 34% in bonds and 6% in cash and equivalents (includes short-term securities, accrued income and other assets less liabilities) as of October 31, compared with 62%, 29% and 9%, respectively, a year ago.
The road ahead
Investors face a continued combination of risks in the year ahead. We are likely in the early stages of an extended period of weak economic growth. High inflation is a dynamic that central banks, businesses and households are encountering for the first time in more than 20 years. Interest rates will retain a pronounced influence on both the economy and the valuation of financial assets.
Geopolitical risks are another challenge. The conflict between Russia and Ukraine, as well as tension between China and the U.S. over Taiwan rank high among our investment considerations. These conflicts are hard to predict and potentially consequential for energy security, national security and resource security.
We are closely watching the U.S. dollar, whose strength has been a headwind for the non-U.S. holdings that account for about half of the fund’s net assets. We expect the dollar to remain strong into 2023, given a weak global growth outlook and a hawkish Fed, which should continue to draw foreign capital to U.S. assets.
Among stock sectors, we believe that U.S. utilities will benefit from government incentives that encourage the transition to renewable energy. We also have a positive view of the health care sector, which stands to benefit from demographic tailwinds and a strong innovation pipeline. Within the hard-hit information technology sector, we are seeing attractive entry points to invest in innovative companies. We also expect the defense sector to benefit from new spending commitments in Europe.
Within fixed income, the fund remains cautiously positioned. We expect high inflation and interest rates to persist, but we think that bonds are appealing over a multi-year time frame. We are preparing for an eventual peak for inflation, interest rates and the U.S. dollar, and a stabilization of credit spreads. We see non-U.S. bond markets as attractively valued owing to weak currencies and higher yields, particularly emerging markets in Latin America and parts of Asia. Credit spreads look quite attractive in Europe.
We also note that fixed income is delivering meaningful income for the first time in years. With the yield to maturity of the Bloomberg Global Aggregate Index at 3.8% at fiscal year-end, compared with 1.3% a year earlier, we expect our bond holdings to play an important role in providing ballast to the portfolio, downside protection during equity market volatility and solid income to distribute to investors.
Overall, we are defensively positioned as we pursue the fund’s objectives of long-term growth of capital, conservation of principal and current income.
We welcome new shareholders to the fund, and we thank you for your trust. We look forward to reporting to you again in six months.
Cordially,
L. Alfonso Barroso
President
December 8, 2022
For current information about the fund, visit capitalgroup.com.
American Funds Global Balanced Fund | 3 |
The value of a $10,000 investment
How a hypothetical $10,000 investment has grown (for the period February 1, 2011, to October 31, 2022, with distributions reinvested)
Fund results shown are for Class F-2 shares and Class A shares. Class A share results reflect deduction of the maximum sales charge of 5.75% on the $10,000 investment1; thus, the net amount invested was $9,425. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit capitalgroup.com.
1 | As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares. |
2 | The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. |
3 | Source: MSCI. |
4 | The 60%/40% MSCI ACWI/Bloomberg Global Aggregate Index blends the MSCI ACWI with the Bloomberg Global Aggregate Index by weighting their total returns at 60% and 40%, respectively. Results assume the blend is rebalanced monthly. |
5 | Source: Bloomberg Index Services Ltd. |
6 | Results reflect dividends net of withholding taxes. |
7 | For the period February 1, 2011, commencement of operations, through October 31, 2011. |
The results shown are before taxes on fund distributions and sale of fund shares.
Average annual total returns based on a $1,000 investment (for periods ended October 31, 2022)
1 year | 5 years | 10 years | ||||||||||
Class F-2 shares | –17.78 | % | 2.19 | % | 4.83 | % | ||||||
Class A shares* | –22.70 | 0.75 | 3.98 |
* | Assumes payment of the maximum 5.75% sales charge. |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, results reflect fee waivers and/or expense reimbursements, without which they would have been lower.
4 | American Funds Global Balanced Fund |
Investment portfolio October 31, 2022
Investment mix by security type | Percent of net assets |
Country diversification by domicile | Percent of net assets |
Equity securities | Bonds, notes & other debt instruments | Short-term securities & other assets less liabilities | Total | |||||||||||||
United States | 30.26 | % | 19.00 | % | 5.73 | % | 54.99 | % | ||||||||
Eurozone* | 8.08 | 3.68 | — | 11.76 | ||||||||||||
United Kingdom | 3.93 | 1.33 | — | 5.26 | ||||||||||||
Canada | 3.30 | 1.02 | — | 4.32 | ||||||||||||
India | 3.56 | .04 | — | 3.60 | ||||||||||||
Switzerland | 3.33 | .09 | — | 3.42 | ||||||||||||
Japan | 1.05 | 2.12 | — | 3.17 | ||||||||||||
Brazil | 1.94 | .18 | — | 2.12 | ||||||||||||
China | .44 | 1.40 | — | 1.84 | ||||||||||||
Australia | .90 | .83 | — | 1.73 | ||||||||||||
Other countries | 2.99 | 4.80 | — | 7.79 | ||||||||||||
Total | 100.00 | % |
* | Countries using the euro as a common currency; those represented in the fund’s portfolio are Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. |
Common stocks 57.56% | Shares | Value (000) | ||||||
Financials 10.23% | ||||||||
B3 SA-Brasil, Bolsa, Balcao | 130,427,439 | $ | 379,756 | |||||
Zurich Insurance Group AG | 686,725 | 293,042 | ||||||
DNB Bank ASA | 9,999,828 | 176,986 | ||||||
Toronto-Dominion Bank (CAD denominated) | 2,099,492 | 134,367 | ||||||
PNC Financial Services Group, Inc. | 754,850 | 122,157 | ||||||
Kotak Mahindra Bank, Ltd. | 4,963,621 | 114,047 | ||||||
Housing Development Finance Corp., Ltd. | 3,500,000 | 104,428 | ||||||
Citigroup, Inc. | 1,945,000 | 89,198 | ||||||
DBS Group Holdings, Ltd. | 3,500,000 | 84,558 | ||||||
BlackRock, Inc. | 120,434 | 77,790 | ||||||
HDFC Bank, Ltd. | 4,280,581 | 77,397 | ||||||
Tradeweb Markets, Inc., Class A | 1,250,000 | 68,850 | ||||||
ING Groep NV | 6,244,000 | 61,422 | ||||||
AIA Group, Ltd. | 7,932,400 | 60,077 | ||||||
Nasdaq, Inc. | 764,655 | 47,592 | ||||||
JPMorgan Chase & Co. | 344,000 | 43,303 | ||||||
Bank Central Asia Tbk PT | 71,770,000 | 40,492 |
American Funds Global Balanced Fund | 5 |
Common stocks (continued) | Shares | Value (000) | ||||||
Financials (continued) | ||||||||
BNP Paribas SA | 819,600 | $ | 38,469 | |||||
Aegon NV | 7,948,000 | 36,799 | ||||||
KBC Groep NV | 722,000 | 36,175 | ||||||
Tryg A/S | 1,575,482 | 34,095 | ||||||
Münchener Rückversicherungs-Gesellschaft AG | 121,473 | 32,100 | ||||||
Banco Santander, SA | 11,233,000 | 29,107 | ||||||
CME Group, Inc., Class A | 144,100 | 24,973 | ||||||
FinecoBank SpA | 1,706,184 | 22,999 | ||||||
Ping An Insurance (Group) Company of China, Ltd., Class H | 4,188,360 | 16,754 | ||||||
Ping An Insurance (Group) Company of China, Ltd., Class A | 691,969 | 3,427 | ||||||
Fairfax Financial Holdings, Ltd., subordinate voting shares | 33,043 | 16,228 | ||||||
Allfunds Group PLC | 1,083,800 | 6,839 | ||||||
Great-West Lifeco, Inc. | 199,800 | 4,626 | ||||||
Lufax Holding, Ltd. (ADR) | 2,853,800 | 4,538 | ||||||
2,282,591 | ||||||||
Industrials 7.89% | ||||||||
Raytheon Technologies Corp. | 4,550,000 | 431,431 | ||||||
General Electric Co. | 2,525,097 | 196,478 | ||||||
Thales SA | 1,272,503 | 161,784 | ||||||
BAE Systems PLC | 16,784,149 | 156,756 | ||||||
General Dynamics Corp. | 538,400 | 134,492 | ||||||
Carrier Global Corp. | 3,117,000 | 123,932 | ||||||
Siemens AG | 850,000 | 92,939 | ||||||
Honeywell International, Inc. | 417,755 | 85,230 | ||||||
RELX PLC | 3,000,000 | 80,540 | ||||||
CSX Corp. | 2,442,000 | 70,964 | ||||||
LIXIL Corp. | 3,500,000 | 52,984 | ||||||
Deutsche Post AG | 1,120,000 | 39,747 | ||||||
L3Harris Technologies, Inc. | 142,905 | 35,222 | ||||||
Safran SA | 286,500 | 31,915 | ||||||
Trelleborg AB, Class B | 700,000 | 15,425 | ||||||
Brenntag SE | 232,000 | 14,087 | ||||||
Airbus SE, non-registered shares | 118,700 | 12,854 | ||||||
Melrose Industries PLC | 9,400,660 | 12,603 | ||||||
NIBE Industrier AB, Class B | 1,398,700 | 11,160 | ||||||
1,760,543 | ||||||||
Health care 7.66% | ||||||||
Abbott Laboratories | 3,648,762 | 361,009 | ||||||
UnitedHealth Group, Inc. | 288,700 | 160,272 | ||||||
Gilead Sciences, Inc. | 1,982,930 | 155,581 | ||||||
Siemens Healthineers AG | 3,299,000 | 151,862 | ||||||
Novartis AG | 1,838,750 | 148,554 | ||||||
Thermo Fisher Scientific, Inc. | 212,625 | 109,283 | ||||||
AstraZeneca PLC | 800,000 | 94,074 | ||||||
Merck KGaA | 520,334 | 84,846 | ||||||
AbbVie, Inc. | 520,500 | 76,201 | ||||||
PerkinElmer, Inc. | 550,000 | 73,469 | ||||||
Medtronic PLC | 716,446 | 62,574 | ||||||
Stryker Corp. | 257,070 | 58,931 | ||||||
Amgen, Inc. | 216,424 | 58,510 | ||||||
Humana, Inc. | 75,374 | 42,065 | ||||||
BioMarin Pharmaceutical, Inc.1 | 426,517 | 36,949 | ||||||
Bayer AG | 660,500 | 34,739 | ||||||
1,708,919 | ||||||||
Information technology 6.79% | ||||||||
Broadcom, Inc. | 1,040,820 | 489,310 | ||||||
Microsoft Corp. | 1,989,955 | 461,928 | ||||||
Micron Technology, Inc. | 2,839,800 | 153,633 | ||||||
Apple, Inc. | 929,523 | 142,533 | ||||||
Taiwan Semiconductor Manufacturing Company, Ltd. | 6,246,200 | 75,600 | ||||||
GlobalWafers Co., Ltd. | 5,500,000 | 61,192 | ||||||
ServiceNow, Inc.1 | 140,000 | 58,904 |
6 | American Funds Global Balanced Fund |
Common stocks (continued) | Shares | Value (000) | ||||||
Information technology (continued) | ||||||||
Accenture PLC, Class A | 190,700 | $ | 54,140 | |||||
Applied Materials, Inc. | 147,100 | 12,987 | ||||||
Texas Instruments, Inc. | 23,538 | 3,781 | ||||||
1,514,008 | ||||||||
Consumer staples 5.25% | ||||||||
Nestlé SA | 2,283,281 | 248,633 | ||||||
ITC, Ltd. | 54,446,915 | 229,357 | ||||||
Philip Morris International, Inc. | 2,291,243 | 210,451 | ||||||
Imperial Brands PLC | 6,131,200 | 149,344 | ||||||
Seven & i Holdings Co., Ltd. | 2,000,000 | 74,703 | ||||||
British American Tobacco PLC | 1,760,700 | 69,328 | ||||||
Pernod Ricard SA | 356,500 | 62,606 | ||||||
Altria Group, Inc. | 921,500 | 42,638 | ||||||
Heineken NV | 476,000 | 39,796 | ||||||
Inner Mongolia Yili Industrial Group Co., Ltd., Class A | 6,543,509 | 22,629 | ||||||
Treasury Wine Estates, Ltd. | 1,775,000 | 14,703 | ||||||
Kweichow Moutai Co., Ltd., Class A | 45,509 | 8,418 | ||||||
1,172,606 | ||||||||
Utilities 4.44% | ||||||||
DTE Energy Company | 1,894,124 | 212,350 | ||||||
Power Grid Corporation of India, Ltd. | 64,518,175 | 177,824 | ||||||
NextEra Energy, Inc. | 1,802,000 | 139,655 | ||||||
Duke Energy Corp. | 1,070,600 | 99,759 | ||||||
E.ON SE | 10,009,000 | 83,839 | ||||||
Dominion Energy, Inc. | 916,900 | 64,155 | ||||||
Iberdrola, SA, non-registered shares | 4,945,691 | 50,220 | ||||||
National Grid PLC | 4,103,765 | 44,634 | ||||||
ENN Energy Holdings, Ltd. | 4,116,000 | 40,926 | ||||||
Enel SpA | 7,686,600 | 34,328 | ||||||
Entergy Corp. | 280,523 | 30,055 | ||||||
Public Service Enterprise Group, Inc. | 229,000 | 12,840 | ||||||
990,585 | ||||||||
Energy 4.35% | ||||||||
Canadian Natural Resources, Ltd. (CAD denominated) | 8,043,458 | 482,425 | ||||||
Neste OYJ | 2,614,323 | 114,557 | ||||||
Shell PLC (GBP denominated) | 3,463,400 | 95,483 | ||||||
Chevron Corp. | 515,900 | 93,326 | ||||||
BP PLC | 11,837,132 | 65,132 | ||||||
DT Midstream, Inc. | 644,300 | 38,465 | ||||||
TC Energy Corp. (CAD denominated) | 768,647 | 33,762 | ||||||
Baker Hughes Co., Class A | 1,109,000 | 30,675 | ||||||
Woodside Energy Group, Ltd. (CDI) | 713,735 | 16,501 | ||||||
970,326 | ||||||||
Materials 3.77% | ||||||||
Freeport-McMoRan, Inc. | 5,565,400 | 176,367 | ||||||
Linde PLC | 412,987 | 122,802 | ||||||
Evonik Industries AG | 6,164,000 | 113,638 | ||||||
BHP Group, Ltd. (CDI) | 3,949,810 | 94,058 | ||||||
Fortescue Metals Group, Ltd. | 8,055,400 | 75,744 | ||||||
Shin-Etsu Chemical Co., Ltd. | 700,000 | 73,156 | ||||||
Rio Tinto PLC | 1,297,433 | 67,506 | ||||||
Vale SA (ADR), ordinary nominative shares | 4,102,535 | 53,087 | ||||||
UPM-Kymmene OYJ | 946,000 | 31,702 | ||||||
International Flavors & Fragrances, Inc. | 169,800 | 16,574 | ||||||
Air Liquide SA, non-registered shares | 123,100 | 16,095 | ||||||
840,729 | ||||||||
Communication services 3.20% | ||||||||
Alphabet, Inc., Class A1 | 1,405,774 | 132,860 | ||||||
Alphabet, Inc., Class C1 | 521,420 | 49,357 | ||||||
Netflix, Inc.1 | 510,070 | 148,879 | ||||||
Singapore Telecommunications, Ltd. | 45,106,500 | 79,660 | ||||||
BCE, Inc. | 1,428,000 | 64,411 | ||||||
Comcast Corp., Class A | 1,942,000 | 61,639 |
American Funds Global Balanced Fund | 7 |
Common stocks (continued) | Shares | Value (000) | ||||||
Communication services (continued) | ||||||||
Omnicom Group, Inc. | 676,000 | $ | 49,179 | |||||
Universal Music Group NV | 1,986,932 | 38,981 | ||||||
SoftBank Corp. | 3,497,851 | 34,474 | ||||||
Electronic Arts, Inc. | 251,600 | 31,692 | ||||||
Meta Platforms, Inc., Class A1 | 254,751 | 23,733 | ||||||
Yandex NV, Class A1,2 | 234,900 | — | 3 | |||||
714,865 | ||||||||
Consumer discretionary 2.32% | ||||||||
LVMH Moët Hennessy-Louis Vuitton SE | 154,160 | 97,351 | ||||||
General Motors Company | 1,781,800 | 69,936 | ||||||
Ferrari NV | 253,100 | 49,802 | ||||||
Ferrari NV (EUR denominated) | 68,200 | 13,446 | ||||||
Cie. Financière Richemont SA, Class A | 545,374 | 53,342 | ||||||
Tesla, Inc.1 | 220,743 | 50,228 | ||||||
InterContinental Hotels Group PLC | 787,200 | 42,394 | ||||||
Royal Caribbean Cruises, Ltd.1,4 | 528,200 | 28,195 | ||||||
Astra International Tbk PT | 66,063,040 | 28,166 | ||||||
Amazon.com, Inc.1 | 253,122 | 25,930 | ||||||
Starbucks Corp. | 295,400 | 25,579 | ||||||
Aptiv PLC1 | 164,516 | 14,982 | ||||||
Airbnb, Inc., Class A1 | 120,800 | 12,915 | ||||||
D.R. Horton, Inc. | 53,649 | 4,124 | ||||||
JD.com, Inc., Class A | 63,244 | 1,169 | ||||||
517,559 | ||||||||
Real estate 1.66% | ||||||||
Embassy Office Parks REIT | 22,000,000 | 91,527 | ||||||
Crown Castle, Inc. REIT | 661,525 | 88,155 | ||||||
Equinix, Inc. REIT | 130,319 | 73,818 | ||||||
CTP NV | 6,561,334 | 68,084 | ||||||
Digital Realty Trust, Inc. REIT | 291,500 | 29,223 | ||||||
Americold Realty Trust, Inc. REIT | 824,500 | 19,994 | ||||||
370,801 | ||||||||
Total common stocks (cost: $10,993,944,000) | 12,843,532 | |||||||
Preferred securities 0.79% | ||||||||
Consumer discretionary 0.44% | ||||||||
Dr. Ing. h.c. F. Porsche AG, nonvoting non-registered preferred shares1 | 944,714 | 96,629 | ||||||
Financials 0.35% | ||||||||
Fannie Mae, Series S, 8.25% noncumulative preferred shares1,4 | 13,366,000 | 43,573 | ||||||
Federal Home Loan Mortgage Corp., Series Z, 8.375% noncumulative preferred shares1 | 11,506,000 | 35,093 | ||||||
78,666 | ||||||||
Total preferred securities (cost: $164,919,000) | 175,295 | |||||||
Convertible stocks 0.31% | ||||||||
Utilities 0.21% | ||||||||
NextEra Energy, Inc., noncumulative convertible preferred units, 6.926% 9/1/2025 | 1,025,600 | 47,691 | ||||||
Health care 0.10% | ||||||||
Danaher Corp., Series B, cumulative convertible preferred shares, 5.00% 4/15/20234 | 17,500 | 22,898 | ||||||
Total convertible stocks (cost: $73,288,000) | 70,589 | |||||||
Investment funds 1.12% | ||||||||
Capital Group Central Corporate Bond Fund5 | 31,698,644 | 249,468 | ||||||
Total investment funds (cost: $252,581,000) | 249,468 |
8 | American Funds Global Balanced Fund |
Bonds, notes & other debt instruments 34.49% | Principal amount (000) | Value (000) | ||||||
U.S. Treasury bonds & notes 12.71% | ||||||||
U.S. Treasury 12.13% | ||||||||
U.S. Treasury 0.125% 1/31/2023 | USD | 2,270 | $ | 2,248 | ||||
U.S. Treasury 2.50% 3/31/2023 | 73,869 | 73,358 | ||||||
U.S. Treasury 2.75% 4/30/2023 | 89,023 | 88,345 | ||||||
U.S. Treasury 2.50% 4/30/2024 | 59,500 | 57,678 | ||||||
U.S. Treasury 3.25% 8/31/2024 | 42,800 | 41,834 | ||||||
U.S. Treasury 4.25% 9/30/2024 | 149,200 | 148,465 | ||||||
U.S. Treasury 1.50% 10/31/2024 | 77,600 | 73,186 | ||||||
U.S. Treasury 2.875% 7/31/2025 | 64,451 | 61,870 | ||||||
U.S. Treasury 0.25% 8/31/2025 | 74,243 | 66,053 | ||||||
U.S. Treasury 3.50% 9/15/20256 | 443,000 | 431,947 | ||||||
U.S. Treasury 4.25% 10/15/2025 | 9,349 | 9,301 | ||||||
U.S. Treasury 0.75% 3/31/2026 | 104,551 | 92,563 | ||||||
U.S. Treasury 2.125% 5/31/2026 | 7,420 | 6,869 | ||||||
U.S. Treasury 0.875% 6/30/2026 | 70,876 | 62,537 | ||||||
U.S. Treasury 0.625% 7/31/2026 | 38,600 | 33,649 | ||||||
U.S. Treasury 0.75% 8/31/2026 | 2,092 | 1,827 | ||||||
U.S. Treasury 0.875% 9/30/2026 | 172,146 | 150,797 | ||||||
U.S. Treasury 1.125% 10/31/20266 | 333,272 | 294,213 | ||||||
U.S. Treasury 2.25% 2/15/2027 | 18,600 | 17,101 | ||||||
U.S. Treasury 2.50% 3/31/2027 | 104,520 | 97,034 | ||||||
U.S. Treasury 2.75% 4/30/2027 | 30,000 | 28,127 | ||||||
U.S. Treasury 3.125% 8/31/2027 | 207,375 | 197,488 | ||||||
U.S. Treasury 4.125% 9/30/2027 | 93,895 | 93,426 | ||||||
U.S. Treasury 4.125% 10/31/2027 | 30,344 | 30,200 | ||||||
U.S. Treasury 2.75% 2/15/2028 | 26,500 | 24,611 | ||||||
U.S. Treasury 0.625% 5/15/20306 | 107,320 | 83,492 | ||||||
U.S. Treasury 0.625% 8/15/2030 | 22,050 | 17,053 | ||||||
U.S. Treasury 1.25% 8/15/20316 | 26,825 | 21,359 | ||||||
U.S. Treasury 1.375% 11/15/2031 | 74,740 | 59,728 | ||||||
U.S. Treasury 1.875% 2/15/2032 | 24,265 | 20,208 | ||||||
U.S. Treasury 2.875% 5/15/2032 | 35,790 | 32,474 | ||||||
U.S. Treasury 2.75% 8/15/2032 | 79,121 | 70,892 | ||||||
U.S. Treasury 1.875% 2/15/20416 | 29,135 | 19,768 | ||||||
U.S. Treasury 2.25% 5/15/20416 | 31,225 | 22,598 | ||||||
U.S. Treasury 3.375% 8/15/2042 | 66,960 | 57,920 | ||||||
U.S. Treasury 2.875% 5/15/2052 | 38,445 | 29,973 | ||||||
U.S. Treasury 3.00% 8/15/20526 | 108,680 | 87,372 | ||||||
2,707,564 | ||||||||
U.S. Treasury inflation-protected securities 0.58% | ||||||||
U.S. Treasury Inflation-Protected Security 0.125% 7/15/20247 | 64,024 | 62,426 | ||||||
U.S. Treasury Inflation-Protected Security 0.125% 10/15/20247 | 34,519 | 33,521 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 7/15/20277 | 22,830 | 21,585 | ||||||
U.S. Treasury Inflation-Protected Security 0.125% 2/15/20517 | 17,451 | 11,255 | ||||||
128,787 | ||||||||
Total U.S. Treasury bonds & notes | 2,836,351 | |||||||
Bonds & notes of governments & government agencies outside the U.S. 12.42% | ||||||||
Abu Dhabi (Emirate of) 0.75% 9/2/20238 | 10,835 | 10,475 | ||||||
Agricultural Development Bank of China 3.75% 1/25/2029 | CNY | 1,030 | 149 | |||||
Asian Development Bank 1.125% 6/10/2025 | GBP | 9,045 | 9,637 | |||||
Australia (Commonwealth of), Series 139, 3.25% 4/21/2025 | AUD | 37,975 | 24,296 | |||||
Australia (Commonwealth of), Series 152, 2.75% 11/21/2028 | 26,025 | 15,946 | ||||||
Australia (Commonwealth of), Series 157, 1.50% 6/21/2031 | 65,980 | 35,354 | ||||||
Australia (Commonwealth of), Series 163, 1.00% 11/21/2031 | 43,200 | 21,884 | ||||||
Australia (Commonwealth of), Series 166, 3.00% 11/21/2033 | 95,590 | 56,764 | ||||||
Austria (Republic of) 0% 2/20/2031 | EUR | 37,380 | 29,506 | |||||
Brazil (Federative Republic of) 10.00% 1/1/2023 | BRL | 55,300 | 10,617 | |||||
Brazil (Federative Republic of) 0% 1/1/2024 | 66,761 | 11,229 | ||||||
Brazil (Federative Republic of) 10.00% 1/1/2025 | 84,799 | 15,870 | ||||||
Canada 0.75% 10/1/2024 | CAD | 106,870 | 73,941 | |||||
Canada 2.25% 6/1/2025 | 39,295 | 27,774 | ||||||
Canada 0.25% 3/1/2026 | 36,425 | 23,900 | ||||||
Canada 2.25% 6/1/2029 | 51,945 | 35,836 | ||||||
Canada 2.00% 6/1/2032 | 1,800 | 1,184 | ||||||
Canada 2.75% 12/1/2048 | 9,900 | 6,493 |
American Funds Global Balanced Fund | 9 |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Bonds & notes of governments & government agencies outside the U.S. (continued) | ||||||||
Chile (Republic of) 5.80% 6/1/2024 | CLP | 10,245,000 | $ | 10,389 | ||||
Chile (Republic of) 4.70% 9/1/2030 | 9,705,000 | 9,148 | ||||||
China (People’s Republic of), Series 1906, 3.29% 5/23/2029 | CNY | 26,590 | 3,803 | |||||
China (People’s Republic of), Series 1910, 3.86% 7/22/2049 | 137,440 | 21,215 | ||||||
China (People’s Republic of), Series INBK, 3.39% 3/16/2050 | 106,390 | 15,201 | ||||||
China (People’s Republic of), Series INBK, 3.81% 9/14/2050 | 643,000 | 99,137 | ||||||
China Development Bank Corp., Series 2008, 2.89% 6/22/2025 | 213,410 | 29,724 | ||||||
China Development Bank Corp., Series 1904, 3.68% 2/26/2026 | 53,480 | 7,631 | ||||||
China Development Bank Corp., Series 1909, 3.50% 8/13/2026 | 28,330 | 4,026 | ||||||
China Development Bank Corp., Series 2004, 3.43% 1/14/2027 | 194,070 | 27,536 | ||||||
China Development Bank Corp., Series 2009, 3.39% 7/10/2027 | 181,600 | 25,857 | ||||||
China Development Bank Corp., Series 1805, 4.88% 2/9/2028 | 128,750 | 19,553 | ||||||
China Development Bank Corp., Series 2109, 3.09% 8/9/2028 | 136,660 | 19,155 | ||||||
China Development Bank Corp., Series 2005, 3.07% 3/10/2030 | 2,860 | 398 | ||||||
Colombia (Republic of), Series B, 5.75% 11/3/2027 | COP | 148,968,400 | 21,898 | |||||
Colombia (Republic of), Series B, 7.00% 3/26/2031 | 254,621,500 | 34,606 | ||||||
Colombia (Republic of), Series B, 7.25% 10/18/2034 | 3,151,000 | 400 | ||||||
Colombia (Republic of), Series B, 7.25% 10/26/2050 | 57,462,000 | 6,244 | ||||||
Costa Rica (Republic of) 6.125% 2/19/20318 | USD | 3,080 | 2,868 | |||||
European Financial Stability Facility 0.40% 2/17/2025 | EUR | 13,200 | 12,445 | |||||
European Financial Stability Facility 0% 10/15/2025 | 1,200 | 1,103 | ||||||
European Investment Bank 0.375% 9/15/2027 | 8,975 | 7,965 | ||||||
European Investment Bank 0.25% 1/20/2032 | 39,615 | 30,889 | ||||||
European Union 0% 7/6/2026 | 12,100 | 10,874 | ||||||
European Union 0.25% 10/22/2026 | 5,265 | 4,749 | ||||||
European Union 0% 6/2/2028 | 10,920 | 9,292 | ||||||
European Union 1.625% 12/4/2029 | 2,080 | 1,898 | ||||||
French Republic O.A.T. 0.75% 2/25/2028 | 40,010 | 36,425 | ||||||
French Republic O.A.T. 0% 11/25/2030 | 130,490 | 105,957 | ||||||
French Republic O.A.T. 2.00% 11/25/2032 | 37,915 | 35,224 | ||||||
French Republic O.A.T. 3.25% 5/25/2045 | 6,700 | 6,785 | ||||||
French Republic O.A.T. 0.75% 5/25/2052 | 800 | 448 | ||||||
Germany (Federal Republic of) 0% 4/11/2025 | 72,390 | 68,310 | ||||||
Germany (Federal Republic of) 0% 10/9/2026 | 1,460 | 1,335 | ||||||
Germany (Federal Republic of) 0% 4/16/2027 | 80,675 | 72,985 | ||||||
Germany (Federal Republic of) 0% 8/15/2030 | 35,175 | 29,685 | ||||||
Germany (Federal Republic of) 0% 8/15/2031 | 64,485 | 53,179 | ||||||
Germany (Federal Republic of) 1.70% 8/15/2032 | 17,236 | 16,359 | ||||||
Germany (Federal Republic of) 1.00% 5/15/2038 | 39,600 | 32,407 | ||||||
Germany (Federal Republic of) 0% 8/15/2050 | 14,895 | 8,133 | ||||||
Germany (Federal Republic of) 0% 8/15/2052 | 1,745 | 917 | ||||||
Greece (Hellenic Republic of) 3.375% 2/15/2025 | 19,678 | 19,535 | ||||||
Greece (Hellenic Republic of) 0% 2/12/2026 | 3,070 | 2,703 | ||||||
Greece (Hellenic Republic of) 1.75% 6/18/2032 | 38,300 | 29,659 | ||||||
Hungary (Republic of) 2.125% 9/22/20318 | USD | 30,165 | 21,673 | |||||
Hungary (Republic of) 3.125% 9/21/20518 | 6,865 | 3,795 | ||||||
India (Republic of) 5.15% 11/9/2025 | INR | 799,470 | 9,120 | |||||
Indonesia (Republic of), Series 78, 8.25% 5/15/2029 | IDR | 62,796,000 | 4,196 | |||||
Indonesia (Republic of), Series 68, 8.375% 3/15/2034 | 62,682,000 | 4,249 | ||||||
Israel (State of) 2.50% 1/15/2030 | USD | 11,080 | 9,550 | |||||
Israel (State of) 3.375% 1/15/2050 | 2,970 | 2,061 | ||||||
Israel (State of) 3.875% 7/3/2050 | 550 | 418 | ||||||
Italy (Republic of) 0.95% 9/15/2027 | EUR | 626 | 549 | |||||
Italy (Republic of) 1.35% 4/1/2030 | 15,565 | 12,895 | ||||||
Italy (Republic of) 1.45% 3/1/2036 | 7,100 | 5,026 | ||||||
Japan, Series 21, 0.10% 3/10/20267 | JPY | 1,359,956 | 9,547 | |||||
Japan, Series 346, 0.10% 3/20/2027 | 12,172,200 | 82,094 | ||||||
Japan, Series 23, 0.10% 3/10/20287 | 5,448,500 | 38,522 | ||||||
Japan, Series 359, 0.10% 6/20/2030 | 332,600 | 2,216 | ||||||
Japan, Series 363, 0.10% 6/20/2031 | 4,556,600 | 30,237 | ||||||
Japan, Series 145, 1.70% 6/20/2033 | 6,000,000 | 45,852 | ||||||
Japan, Series 152, 1.20% 3/20/2035 | 21,629,000 | 156,884 | ||||||
Japan, Series 21, 2.30% 12/20/2035 | 1,360,000 | 11,126 | ||||||
Japan, Series 179, 0.50% 12/20/2041 | 6,707,750 | 40,991 | ||||||
Japan, Series 36, 2.00% 3/20/2042 | 200,000 | 1,573 | ||||||
Japan, Series 42, 1.70% 3/20/2044 | 928,200 | 6,940 | ||||||
Japan, Series 37, 0.60% 6/20/2050 | 5,484,650 | 30,396 |
10 | American Funds Global Balanced Fund |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Bonds & notes of governments & government agencies outside the U.S. (continued) | ||||||||
Japan, Series 70, 0.70% 3/20/2051 | JPY | 2,291,250 | $ | 12,968 | ||||
KfW 1.125% 7/4/2025 | GBP | 8,400 | 8,939 | |||||
Malaysia (Federation of), Series 0413, 3.844% 4/15/2033 | MYR | 26,848 | 5,322 | |||||
Malaysia (Federation of), Series 0318, 4.642% 11/7/2033 | 51,530 | 10,919 | ||||||
Morocco (Kingdom of) 1.50% 11/27/2031 | EUR | 12,240 | 8,105 | |||||
Morocco (Kingdom of) 1.50% 11/27/2031 | 1,290 | 854 | ||||||
Panama (Republic of) 3.75% 4/17/20268 | USD | 1,000 | 939 | |||||
Panama (Republic of) 4.50% 4/1/2056 | 650 | 429 | ||||||
PETRONAS Capital, Ltd. 4.55% 4/21/20508 | 1,070 | 883 | ||||||
Philippines (Republic of) 0.001% 4/12/2024 | JPY | 2,600,000 | 17,311 | |||||
Philippines (Republic of) 0.25% 4/28/2025 | EUR | 3,750 | 3,384 | |||||
Philippines (Republic of) 0.70% 2/3/2029 | 4,970 | 3,868 | ||||||
Poland (Republic of), Series 1029, 2.75% 10/25/2029 | PLN | 16,670 | 2,497 | |||||
Portuguese Republic 0.475% 10/18/2030 | EUR | 14,440 | 11,846 | |||||
PT Indonesia Asahan Aluminium Tbk 5.45% 5/15/20308 | USD | 1,580 | 1,387 | |||||
Romania 2.125% 3/7/2028 | EUR | 11,270 | 8,807 | |||||
Romania 3.624% 5/26/2030 | 22,233 | 17,303 | ||||||
Romania 3.624% 5/26/2030 | 3,925 | 3,055 | ||||||
Romania 1.75% 7/13/2030 | 18,620 | 12,525 | ||||||
Romania 2.00% 1/28/2032 | 3,500 | 2,233 | ||||||
Romania 2.00% 4/14/2033 | 11,910 | 7,223 | ||||||
Romania 3.75% 2/7/2034 | 600 | 422 | ||||||
Romania 3.375% 2/8/2038 | 2,695 | 1,674 | ||||||
Russian Federation 7.00% 8/16/20239 | RUB | 822,035 | 5,432 | |||||
Russian Federation 7.15% 11/12/20259 | 95,900 | 634 | ||||||
Russian Federation 2.875% 12/4/2025 | EUR | 6,100 | 2,502 | |||||
Russian Federation 2.875% 12/4/2025 | 2,200 | 902 | ||||||
Russian Federation 4.25% 6/23/20279 | USD | 4,200 | 1,932 | |||||
Russian Federation 4.375% 3/21/20299 | 34,800 | 12,702 | ||||||
Russian Federation 4.375% 3/21/20298,9 | 5,000 | 1,825 | ||||||
Russian Federation 6.90% 5/23/20299 | RUB | 1,241,325 | 8,202 | |||||
Russian Federation 7.65% 4/10/20309 | 5,682,760 | 37,549 | ||||||
Russian Federation 5.90% 3/12/20319 | 366,860 | 2,424 | ||||||
Russian Federation 6.90% 7/23/20319 | 2,981,770 | 19,702 | ||||||
Russian Federation 8.50% 9/17/20319 | 151,920 | 1,004 | ||||||
Russian Federation 7.70% 3/23/20339 | 854,120 | 5,506 | ||||||
Russian Federation 7.25% 5/10/20349 | 697,860 | 4,499 | ||||||
Russian Federation 5.10% 3/28/20358,9 | USD | 3,200 | 1,168 | |||||
Saskatchewan (Province of) 3.05% 12/2/2028 | CAD | 8,000 | 5,607 | |||||
Serbia (Republic of) 3.125% 5/15/2027 | EUR | 31,390 | 26,522 | |||||
Serbia (Republic of) 3.125% 5/15/2027 | 30,650 | 25,897 | ||||||
Serbia (Republic of) 1.00% 9/23/2028 | 5,092 | 3,553 | ||||||
Serbia (Republic of) 1.50% 6/26/2029 | 8,959 | 6,235 | ||||||
Serbia (Republic of) 2.05% 9/23/2036 | 16,380 | 8,990 | ||||||
South Africa (Republic of), Series R-2030, 8.00% 1/31/2030 | ZAR | 173,400 | 8,107 | |||||
South Korea (Republic of), Series 2503, 1.50% 3/10/2025 | KRW | 3,342,160 | 2,205 | |||||
South Korea (Republic of), Series 2712, 2.375% 12/10/2027 | 26,409,910 | 16,994 | ||||||
Spain (Kingdom of) 0% 1/31/2027 | EUR | 20,670 | 18,315 | |||||
Spain (Kingdom of) 0.80% 7/30/2027 | 23,070 | 20,972 | ||||||
Spain (Kingdom of) 1.45% 4/30/2029 | 5,780 | 5,259 | ||||||
Spain (Kingdom of) 1.25% 10/31/2030 | 2,260 | 1,964 | ||||||
Spain (Kingdom of) 0.50% 10/31/2031 | 33,820 | 26,733 | ||||||
Spain (Kingdom of) 0.70% 4/30/2032 | 35,985 | 28,500 | ||||||
Spain (Kingdom of) 2.70% 10/31/2048 | 2,690 | 2,253 | ||||||
Sri Lanka (Democratic Socialist Republic of) 5.75% 4/18/20239 | USD | 6,416 | 1,506 | |||||
Sri Lanka (Democratic Socialist Republic of) 5.75% 4/18/20238,9 | 214 | 50 | ||||||
Tunisia (Republic of) 6.75% 10/31/2023 | EUR | 10,125 | 8,223 | |||||
Tunisia (Republic of) 6.75% 10/31/2023 | 4,519 | 3,670 | ||||||
Tunisia (Republic of) 6.375% 7/15/2026 | 12,100 | 7,263 | ||||||
Turkey (Republic of) 6.35% 8/10/2024 | USD | 8,300 | 8,143 | |||||
Ukraine 7.75% 9/1/20249 | 200 | 49 | ||||||
Ukraine 15.84% 2/26/2025 | UAH | 13,500 | 61 | |||||
Ukraine 6.75% 6/20/2028 | EUR | 2,121 | 323 | |||||
Ukraine 6.876% 5/21/2031 | USD | 12,813 | 1,941 | |||||
Ukraine 4.375% 1/27/2032 | EUR | 8,640 | 1,315 | |||||
United Kingdom 2.75% 9/7/2024 | GBP | 5,310 | 6,026 | |||||
United Kingdom 1.25% 7/22/2027 | 9,740 | 10,029 |
American Funds Global Balanced Fund | 11 |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Bonds & notes of governments & government agencies outside the U.S. (continued) | ||||||||
United Kingdom 4.25% 12/7/2027 | GBP | 18,480 | $ | 21,741 | ||||
United Kingdom 0.375% 10/22/2030 | 36,465 | 32,673 | ||||||
United Kingdom 0.25% 7/31/2031 | 48,265 | 41,665 | ||||||
United Kingdom 1.00% 1/31/2032 | 69,490 | 63,550 | ||||||
United Kingdom 4.25% 6/7/2032 | 20,035 | 24,331 | ||||||
United Kingdom 3.25% 1/22/2044 | 3,650 | 3,834 | ||||||
United Kingdom 3.50% 1/22/2045 | 2,850 | 3,115 | ||||||
United Kingdom 0.625% 10/22/2050 | 634 | 349 | ||||||
United Kingdom 1.25% 7/31/2051 | 28,405 | 18,877 | ||||||
United Mexican States 2.659% 5/24/2031 | USD | 308 | 239 | |||||
United Mexican States, Series M20, 10.00% 12/5/2024 | MXN | 397,100 | 19,958 | |||||
United Mexican States, Series M, 5.75% 3/5/2026 | 1,517,490 | 67,568 | ||||||
United Mexican States, Series M, 7.50% 6/3/2027 | 69,237 | 3,200 | ||||||
United Mexican States, Series M, 7.75% 5/29/2031 | 310,758 | 13,822 | ||||||
United Mexican States, Series M, 8.00% 11/7/2047 | 71,410 | 2,955 | ||||||
United Mexican States, Series M, 8.00% 7/31/2053 | 1,215,490 | 49,943 | ||||||
2,772,216 | ||||||||
Corporate bonds, notes & loans 6.03% | ||||||||
Financials 1.94% | ||||||||
ACE INA Holdings, Inc. 2.875% 11/3/2022 | USD | 645 | 645 | |||||
ACE INA Holdings, Inc. 3.35% 5/3/2026 | 645 | 608 | ||||||
ACE INA Holdings, Inc. 4.35% 11/3/2045 | 665 | 543 | ||||||
AIA Group, Ltd. 0.88% 9/9/2033 (5-year EUR Annual Swap + 1.10% on 9/9/2028)10 | EUR | 11,880 | 8,940 | |||||
AIB Group PLC 7.583% 10/14/2026 (USD-SOFR + 3.456% on 10/14/2025)8,10 | USD | 10,985 | 10,905 | |||||
Allianz SE 4.75% perpetual bonds (3-month EUR-EURIBOR + 3.60% on 10/24/2023)10 | EUR | 9,000 | 8,896 | |||||
American Express Co. 3.375% 5/3/2024 | USD | 1,508 | 1,463 | |||||
Aon Corp. / Aon Global Holdings PLC 2.85% 5/28/2027 | 1,300 | 1,155 | ||||||
Banco Santander, SA 5.147% 8/18/2025 | 8,800 | 8,463 | ||||||
Bangkok Bank PCL 3.733% 9/25/2034 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.90% on 9/25/2029)10 | 3,710 | 2,762 | ||||||
Bank of America Corp. 3.55% 3/5/2024 (3-month USD-LIBOR + 0.78% on 3/5/2023)10 | 2,100 | 2,083 | ||||||
Bank of America Corp. 1.843% 2/4/2025 (USD-SOFR + 0.67% on 2/4/2024)10 | 1,700 | 1,611 | ||||||
Bank of America Corp. 0.976% 4/22/2025 (USD-SOFR + 0.69% on 4/22/2024)10 | 12,375 | 11,489 | ||||||
Bank of America Corp. 1.319% 6/19/2026 (USD-SOFR + 1.15% on 6/19/2025)10 | 9,500 | 8,393 | ||||||
Bank of America Corp. 1.734% 7/22/2027 (USD-SOFR + 0.96% on 7/22/2026)10 | 10,330 | 8,840 | ||||||
Bank of America Corp. 3.419% 12/20/2028 (3-month USD-LIBOR + 1.04% on 12/20/2027)10 | 3,402 | 3,006 | ||||||
Bank of America Corp. 2.496% 2/13/2031 (3-month USD-LIBOR + 0.99% on 2/13/2030)10 | 5,200 | 4,091 | ||||||
Bank of America Corp. 2.299% 7/21/2032 (USD-SOFR + 1.22% on 7/21/2031)10 | 1,690 | 1,253 | ||||||
Bank of America Corp. 4.083% 3/20/2051 (3-month USD-LIBOR + 3.15% on 3/20/2050)10 | 5,600 | 4,170 | ||||||
Barclays Bank PLC 5.304% 8/9/2026 (1-year UST Yield Curve Rate T Note Constant Maturity + 2.30% on 8/9/2025)10 | 8,725 | 8,311 | ||||||
Barclays Bank PLC 5.501% 8/9/2028 (1-year UST Yield Curve Rate T Note Constant Maturity + 2.65% on 8/5/2027)10 | 11,970 | 11,058 | ||||||
Citigroup, Inc. 0.981% 5/1/2025 (USD-SOFR + 0.669% on 5/1/2024)10 | 6,401 | 5,911 | ||||||
Citigroup, Inc. 3.106% 4/8/2026 (USD-SOFR + 2.842% on 3/8/2026)10 | 14,050 | 13,122 | ||||||
Citigroup, Inc. 1.462% 6/9/2027 (USD-SOFR + 0.67% on 6/9/2026)10 | 18,700 | 15,852 | ||||||
Citigroup, Inc. 2.976% 11/5/2030 (USD-SOFR + 1.422% on 11/5/2029)10 | 2,535 | 2,070 | ||||||
Commonwealth Bank of Australia 2.688% 3/11/20318 | 14,075 | 10,206 | ||||||
Corebridge Financial, Inc. 3.90% 4/5/20328 | 5,620 | 4,705 | ||||||
Credit Suisse Group AG 2.593% 9/11/2025 (USD-SOFR + 1.56% on 9/11/2024)8,10 | 650 | 577 | ||||||
Credit Suisse Group AG 4.194% 4/1/2031 (USD-SOFR + 3.73% on 4/1/2030)8,10 | 600 | 464 | ||||||
Danske Bank AS 3.875% 9/12/20238 | 5,300 | 5,190 | ||||||
Deutsche Bank AG 2.129% 11/24/2026 (USD-SOFR + 1.87% on 11/24/2025)10 | 225 | 189 | ||||||
Deutsche Bank AG 2.311% 11/16/2027 (USD-SOFR + 1.219% on 11/16/2026)10 | 10,270 | 8,204 | ||||||
Deutsche Bank AG 4.00% 6/24/2032 (3-month EUR-EURIBOR + 3.30% on 6/24/2027)10 | EUR | 6,300 | 5,462 | |||||
Goldman Sachs Group, Inc. 3.20% 2/23/2023 | USD | 4,000 | 3,978 | |||||
Goldman Sachs Group, Inc. 3.50% 4/1/2025 | 5,126 | 4,859 | ||||||
Goldman Sachs Group, Inc. 1.542% 9/10/2027 (USD-SOFR + 0.818% on 9/10/2026)10 | 1,400 | 1,176 | ||||||
Goldman Sachs Group, Inc. 2.64% 2/24/2028 (USD-SOFR + 1.114% on 2/24/2027)10 | 460 | 398 | ||||||
Goldman Sachs Group, Inc. 2.60% 2/7/2030 | 640 | 510 | ||||||
Goldman Sachs Group, Inc. 2.615% 4/22/2032 (USD-SOFR + 1.281% on 4/22/2031)10 | 8,046 | 6,148 | ||||||
Goldman Sachs Group, Inc. 1.00% 3/18/203311 | EUR | 13,530 | 9,402 | |||||
Groupe BPCE SA 5.70% 10/22/20238 | USD | 7,625 | 7,465 |
12 | American Funds Global Balanced Fund |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds, notes & loans (continued) | ||||||||
Financials (continued) | ||||||||
Groupe BPCE SA 1.625% 1/14/20258 | USD | 1,490 | $ | 1,363 | ||||
Groupe BPCE SA 1.00% 4/1/2025 | EUR | 6,800 | 6,284 | |||||
HSBC Holdings PLC 3.033% 11/22/2023 (3-month USD-LIBOR + 0.923% on 11/12/2022)10 | USD | 4,670 | 4,661 | |||||
HSBC Holdings PLC 4.292% 9/12/2026 (3-month USD-LIBOR + 1.348% on 9/12/2025)10 | 9,368 | 8,643 | ||||||
HSBC Holdings PLC 2.206% 8/17/2029 (USD-SOFR + 1.285% on 8/17/2028)10 | 680 | 516 | ||||||
HSBC Holdings PLC 4.95% 3/31/2030 | 1,200 | 1,076 | ||||||
HSBC Holdings PLC 2.871% 11/22/2032 (USD-SOFR + 1.41% on 11/22/2031)10 | 624 | 443 | ||||||
Intercontinental Exchange, Inc. 4.00% 9/15/2027 | 15,420 | 14,633 | ||||||
Intesa Sanpaolo SpA 5.017% 6/26/20248 | 10,165 | 9,600 | ||||||
JPMorgan Chase & Co. 2.70% 5/18/2023 | 4,225 | 4,178 | ||||||
JPMorgan Chase & Co. 1.045% 11/19/2026 (USD-SOFR + 0.80% on 11/19/2025)10 | 850 | 733 | ||||||
JPMorgan Chase & Co. 1.578% 4/22/2027 (USD-SOFR + 0.885% on 4/22/2026)10 | 12,058 | 10,378 | ||||||
JPMorgan Chase & Co. 4.323% 4/26/2028 (USD-SOFR + 1.56% on 4/26/2027)10 | 3,000 | 2,793 | ||||||
JPMorgan Chase & Co. 4.452% 12/5/2029 (3-month USD-LIBOR + 1.33% on 12/5/2028)10 | 900 | 822 | ||||||
JPMorgan Chase & Co. 4.493% 3/24/2031 (USD-SOFR + 3.79% on 3/24/2030)10 | 11,445 | 10,352 | ||||||
Kasikornbank PCL HK 3.343% 10/2/2031 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.70% on 10/2/2026)10 | 1,230 | 1,034 | ||||||
Lloyds Banking Group PLC 7.625% 4/22/2025 | GBP | 1,225 | 1,459 | |||||
Lloyds Banking Group PLC 1.627% 5/11/2027 (1-year UST Yield Curve Rate T Note Constant Maturity + 0.85% on 5/11/2026)10 | USD | 800 | 670 | |||||
Morgan Stanley 0.985% 12/10/2026 (USD-SOFR + 0.72% on 12/10/2025)10 | 9,110 | 7,802 | ||||||
Morgan Stanley 1.593% 5/4/2027 (USD-SOFR + 0.879% on 5/4/2026)10 | 8,173 | 6,999 | ||||||
Morgan Stanley 2.475% 1/21/2028 (USD-SOFR + 1.00% on 1/21/2027)10 | 515 | 445 | ||||||
Morgan Stanley 4.21% 4/20/2028 (USD-SOFR + 1.61% on 4/20/2027)10 | 857 | 794 | ||||||
Morgan Stanley 3.772% 1/24/2029 (3-month USD-LIBOR + 1.14% on 1/24/2028)10 | 1,000 | 893 | ||||||
Morgan Stanley 2.699% 1/22/2031 (USD-SOFR + 1.143% on 1/22/2030)10 | 2,586 | 2,073 | ||||||
Morgan Stanley 1.928% 4/28/2032 (USD-SOFR + 1.02% on 4/28/2031)10 | 925 | 672 | ||||||
Morgan Stanley 2.95% 5/7/2032 (3-month EUR-EURIBOR + 1.245% on 5/7/2031)10 | EUR | 25,585 | 22,265 | |||||
National Australia Bank, Ltd. 2.99% 5/21/20318 | USD | 420 | 316 | |||||
New York Life Global Funding 1.45% 1/14/20258 | 1,700 | 1,568 | ||||||
New York Life Global Funding 1.20% 8/7/20308 | 6,520 | 4,830 | ||||||
New York Life Insurance Company 3.75% 5/15/20508 | 1,261 | 892 | ||||||
PNC Financial Services Group, Inc. 2.854% 11/9/202210 | 2,000 | 1,999 | ||||||
Royal Bank of Canada 1.20% 4/27/2026 | 10,600 | 9,153 | ||||||
Santander Holdings USA, Inc. 3.244% 10/5/2026 | 7,400 | 6,561 | ||||||
Swiss Re Finance (Luxembourg) SA 5.00% 4/2/2049 (5-year UST Yield Curve Rate T Note Constant Maturity + 3.582% on 4/2/2029)8,10 | 2,600 | 2,270 | ||||||
U.S. Bancorp 2.215% 1/27/2028 (USD-SOFR + 0.73% on 1/27/2027)10 | 1,060 | 926 | ||||||
UBS Group AG 4.49% 8/5/2025 (1-year UST Yield Curve Rate T Note Constant Maturity + 1.60% on 8/5/2024)8,10 | 19,810 | 19,145 | ||||||
Wells Fargo & Company 3.908% 4/25/2026 (USD-SOFR + 1.32% on 4/25/2025)10 | 1,081 | 1,031 | ||||||
Wells Fargo & Company 3.526% 3/24/2028 (USD-SOFR + 1.51% on 3/24/2027)10 | 19,528 | 17,599 | ||||||
Wells Fargo & Company 2.393% 6/2/2028 (USD-SOFR + 2.10% on 6/2/2027)10 | 14,700 | 12,568 | ||||||
Wells Fargo & Company 4.611% 4/25/2053 (USD-SOFR + 2.13% on 4/25/2052)10 | 700 | 559 | ||||||
Westpac Banking Corp. 2.894% 2/4/2030 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.35% on 2/4/2025)10 | 18,960 | 17,317 | ||||||
432,888 | ||||||||
Consumer discretionary 0.73% | ||||||||
Amazon.com, Inc. 2.80% 8/22/2024 | 7,345 | 7,102 | ||||||
Amazon.com, Inc. 3.45% 4/13/2029 | 1,600 | 1,469 | ||||||
Amazon.com, Inc. 3.60% 4/13/2032 | 1,600 | 1,434 | ||||||
Amazon.com, Inc. 2.50% 6/3/2050 | 4,165 | 2,480 | ||||||
American Honda Finance Corp. 0.75% 11/25/2026 | GBP | 510 | 492 | |||||
Bayerische Motoren Werke AG 3.90% 4/9/20258 | USD | 2,780 | 2,688 | |||||
Bayerische Motoren Werke AG 1.25% 8/12/20268 | 325 | 277 | ||||||
Bayerische Motoren Werke AG 4.15% 4/9/20308 | 2,780 | 2,541 | ||||||
Daimler Trucks Finance North America, LLC 3.65% 4/7/20278 | 5,900 | 5,336 | ||||||
General Motors Company 5.40% 10/2/2023 | 7,130 | 7,102 | ||||||
General Motors Financial Co. 1.05% 3/8/2024 | 225 | 211 | ||||||
General Motors Financial Co. 2.40% 4/10/2028 | 10,250 | 8,310 | ||||||
Hyundai Capital America 0.875% 6/14/20248 | 6,740 | 6,194 | ||||||
Hyundai Capital America 1.50% 6/15/20268 | 5,310 | 4,433 | ||||||
Hyundai Capital America 1.65% 9/17/20268 | 275 | 229 |
American Funds Global Balanced Fund | 13 |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds, notes & loans (continued) | ||||||||
Consumer discretionary (continued) | ||||||||
Hyundai Capital America 2.375% 10/15/20278 | USD | 4,619 | $ | 3,764 | ||||
Hyundai Capital America 2.00% 6/15/20288 | 3,275 | 2,551 | ||||||
Lowe’s Companies, Inc. 3.00% 10/15/2050 | 400 | 240 | ||||||
NIKE, Inc. 3.375% 3/27/2050 | 1,875 | 1,371 | ||||||
Royal Caribbean Cruises, Ltd. 11.50% 6/1/20258 | 13,776 | 14,854 | ||||||
Royal Caribbean Cruises, Ltd. 5.50% 4/1/20288 | 11,135 | 8,606 | ||||||
Royal Caribbean Cruises, Ltd. 8.25% 1/15/20298 | 4,362 | 4,354 | ||||||
Royal Caribbean Cruises, Ltd. 9.25% 1/15/20298 | 3,626 | 3,686 | ||||||
Stellantis Finance US, Inc. 1.711% 1/29/20278 | 3,350 | 2,772 | ||||||
Stellantis Finance US, Inc. 5.625% 1/12/20288 | 20,580 | 19,452 | ||||||
Stellantis Finance US, Inc. 2.691% 9/15/20318 | 925 | 660 | ||||||
Stellantis NV 0.75% 1/18/2029 | EUR | 625 | 486 | |||||
Stellantis NV 1.25% 6/20/2033 | 25,580 | 17,509 | ||||||
Toyota Motor Credit Corp. 1.90% 1/13/2027 | USD | 703 | 616 | |||||
Toyota Motor Credit Corp. 3.375% 4/1/2030 | 1,239 | 1,101 | ||||||
Volkswagen Financial Services NV 0.875% 2/20/2025 | GBP | 1,000 | 1,025 | |||||
Volkswagen Group of America Finance, LLC 3.125% 5/12/20238 | USD | 7,666 | 7,577 | |||||
Volkswagen Group of America Finance, LLC 4.25% 11/13/20238 | 6,300 | 6,225 | ||||||
Volkswagen Group of America Finance, LLC 4.625% 11/13/20258 | 5,445 | 5,271 | ||||||
Volkswagen International Finance NV 2.70% junior subordinated perpetual bonds (5-year EUR Mid-Swap + 2.54% on 12/14/2022)10 | EUR | 1,400 | 1,383 | |||||
Volkswagen International Finance NV 4.375% junior subordinated perpetual bonds (9-year EUR Mid-Swap + 3.36% on 3/28/2031)10 | 10,600 | 8,555 | ||||||
162,356 | ||||||||
Utilities 0.70% | ||||||||
Alabama Power Co. 3.00% 3/15/2052 | USD | 20,000 | 12,624 | |||||
American Electric Power Company, Inc. 1.00% 11/1/2025 | 100 | 88 | ||||||
Berkshire Hathaway Energy Company 3.50% 2/1/2025 | 4,200 | 4,070 | ||||||
Berkshire Hathaway Energy Company 1.65% 5/15/2031 | 6,375 | 4,774 | ||||||
Berkshire Hathaway Energy Company 2.85% 5/15/2051 | 1,142 | 686 | ||||||
CMS Energy Corp. 3.60% 11/15/2025 | 2,000 | 1,896 | ||||||
CMS Energy Corp. 3.00% 5/15/2026 | 1,960 | 1,801 | ||||||
CMS Energy Corp. 3.45% 8/15/2027 | 890 | 804 | ||||||
Consumers Energy Co. 3.60% 8/15/2032 | 11,990 | 10,550 | ||||||
Dominion Energy, Inc. 2.25% 8/15/2031 | 250 | 193 | ||||||
Duke Energy Carolinas, LLC 3.05% 3/15/2023 | 4,535 | 4,516 | ||||||
Duke Energy Corp. 3.75% 4/15/2024 | 3,950 | 3,877 | ||||||
Duke Energy Progress, LLC 3.70% 9/1/2028 | 2,400 | 2,222 | ||||||
Duke Energy Progress, LLC 2.00% 8/15/2031 | 4,725 | 3,613 | ||||||
E.On SE 1.625% 3/29/2031 | EUR | 14,570 | 11,809 | |||||
Edison International 5.75% 6/15/2027 | USD | 833 | 813 | |||||
Edison International 4.125% 3/15/2028 | 4,942 | 4,400 | ||||||
Enel Finance International SA 1.875% 7/12/20288 | 9,491 | 7,144 | ||||||
Enersis Américas SA 4.00% 10/25/2026 | 1,215 | 1,126 | ||||||
ENN Energy Holdings, Ltd. 2.625% 9/17/20308 | 8,481 | 6,476 | ||||||
Entergy Louisiana, LLC 4.75% 9/15/2052 | 500 | 417 | ||||||
Eversource Energy 1.40% 8/15/2026 | 425 | 366 | ||||||
Exelon Corp. 3.40% 4/15/2026 | 4,390 | 4,099 | ||||||
FirstEnergy Transmission, LLC 2.866% 9/15/20288 | 225 | 190 | ||||||
Florida Power & Light Company 2.875% 12/4/2051 | 10,150 | 6,490 | ||||||
Grupo Energia Bogota SA ESP 4.875% 5/15/20308 | 3,590 | 3,038 | ||||||
Interstate Power and Light Co. 2.30% 6/1/2030 | 2,650 | 2,114 | ||||||
NextEra Energy Capital Holdings, Inc. 2.25% 6/1/2030 | 447 | 355 | ||||||
NextEra Energy Capital Holdings, Inc. 2.44% 1/15/2032 | 11,550 | 8,922 | ||||||
Niagara Mohawk Power Corp. 3.508% 10/1/20248 | 2,380 | 2,275 | ||||||
Pacific Gas and Electric Co. 2.95% 3/1/2026 | 1,035 | 917 | ||||||
Pacific Gas and Electric Co. 3.30% 3/15/2027 | 1,775 | 1,531 | ||||||
Pacific Gas and Electric Co. 2.10% 8/1/2027 | 5,108 | 4,204 | ||||||
Pacific Gas and Electric Co. 4.65% 8/1/2028 | 1,049 | 919 | ||||||
Pacific Gas and Electric Co. 4.55% 7/1/2030 | 2,327 | 2,041 | ||||||
Pacific Gas and Electric Co. 2.50% 2/1/2031 | 20,358 | 15,234 | ||||||
Pacific Gas and Electric Co. 3.25% 6/1/2031 | 3,600 | 2,806 | ||||||
Pacific Gas and Electric Co. 3.30% 8/1/2040 | 11,495 | 7,483 | ||||||
Pacific Gas and Electric Co. 3.50% 8/1/2050 | 7,757 | 4,746 | ||||||
Public Service Electric and Gas Co. 2.05% 8/1/2050 | 1,595 | 820 |
14 | American Funds Global Balanced Fund |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds, notes & loans (continued) | ||||||||
Utilities (continued) | ||||||||
San Diego Gas & Electric Co. 2.95% 8/15/2051 | USD | 400 | $ | 253 | ||||
Southern California Edison Co. 2.85% 8/1/2029 | 525 | 440 | ||||||
Xcel Energy, Inc. 3.35% 12/1/2026 | 4,502 | 4,150 | ||||||
157,292 | ||||||||
�� | ||||||||
Communication services 0.66% | ||||||||
AT&T, Inc. 2.30% 6/1/2027 | 1,000 | 873 | ||||||
AT&T, Inc. 2.75% 6/1/2031 | 12,327 | 9,873 | ||||||
AT&T, Inc. 2.05% 5/19/2032 | EUR | 3,440 | 2,876 | |||||
AT&T, Inc. 2.55% 12/1/2033 | USD | 9,200 | 6,790 | |||||
AT&T, Inc. 3.50% 9/15/2053 | 652 | 419 | ||||||
Baidu, Inc. 3.425% 4/7/2030 | 1,220 | 1,011 | ||||||
Comcast Corp. 3.95% 10/15/2025 | 7,695 | 7,445 | ||||||
Comcast Corp. 0% 9/14/2026 | EUR | 4,905 | 4,254 | |||||
Comcast Corp. 0.25% 5/20/2027 | 3,570 | 3,063 | ||||||
Comcast Corp. 0.25% 9/14/2029 | 5,185 | 4,130 | ||||||
Deutsche Telekom International Finance BV 4.375% 6/21/20288 | USD | 6,025 | 5,658 | |||||
Deutsche Telekom International Finance BV 9.25% 6/1/2032 | 1,510 | 1,825 | ||||||
Discovery Communications, Inc. 3.625% 5/15/2030 | 1,467 | 1,186 | ||||||
France Télécom 5.375% 11/22/2050 | GBP | 2,000 | 2,418 | |||||
Netflix, Inc. 4.875% 4/15/2028 | USD | 574 | 545 | |||||
Netflix, Inc. 5.875% 11/15/2028 | 667 | 664 | ||||||
Netflix, Inc. 6.375% 5/15/2029 | 259 | 264 | ||||||
Netflix, Inc. 3.875% 11/15/202911 | EUR | 13,730 | 12,642 | |||||
Tencent Holdings, Ltd. 2.39% 6/3/20308 | USD | 13,730 | 9,992 | |||||
Tencent Holdings, Ltd. 3.24% 6/3/20508 | 6,050 | 3,162 | ||||||
Tencent Music Entertainment Group 2.00% 9/3/2030 | 2,055 | 1,391 | ||||||
T-Mobile US, Inc. 1.50% 2/15/2026 | 3,900 | 3,422 | ||||||
T-Mobile US, Inc. 2.05% 2/15/2028 | 2,500 | 2,077 | ||||||
T-Mobile US, Inc. 2.55% 2/15/2031 | 3,900 | 3,088 | ||||||
T-Mobile US, Inc. 3.00% 2/15/2041 | 500 | 337 | ||||||
T-Mobile US, Inc. 3.30% 2/15/2051 | 600 | 386 | ||||||
Verizon Communications, Inc. 0.375% 3/22/2029 | EUR | 9,780 | 7,834 | |||||
Verizon Communications, Inc. 3.15% 3/22/2030 | USD | 2,050 | 1,734 | |||||
Verizon Communications, Inc. 1.68% 10/30/2030 | 298 | 222 | ||||||
Verizon Communications, Inc. 2.55% 3/21/2031 | 28,040 | 22,176 | ||||||
Verizon Communications, Inc. 0.75% 3/22/2032 | EUR | 4,480 | 3,298 | |||||
Walt Disney Company 2.65% 1/13/2031 | USD | 7,420 | 6,154 | |||||
WarnerMedia Holdings, Inc. 4.279% 3/15/20328 | 873 | 706 | ||||||
WarnerMedia Holdings, Inc. 5.05% 3/15/20428 | 19,461 | 14,270 | ||||||
146,185 | ||||||||
Energy 0.49% | ||||||||
Baker Hughes Co. 4.486% 5/1/2030 | 1,258 | 1,156 | ||||||
Canadian Natural Resources, Ltd. 2.95% 7/15/2030 | 9,875 | 8,110 | ||||||
Cenovus Energy, Inc. 5.40% 6/15/2047 | 900 | 769 | ||||||
Continental Resources, Inc. 2.875% 4/1/20328 | 11,773 | 8,615 | ||||||
Enbridge, Inc. 2.50% 1/15/2025 | 2,800 | 2,625 | ||||||
Enbridge, Inc. 4.25% 12/1/2026 | 2,685 | 2,543 | ||||||
Enbridge, Inc. 3.70% 7/15/2027 | 2,083 | 1,912 | ||||||
Kinder Morgan, Inc. 4.30% 6/1/2025 | 10,300 | 10,029 | ||||||
Kinder Morgan, Inc. 3.60% 2/15/2051 | 10,050 | 6,525 | ||||||
MPLX, LP 2.65% 8/15/2030 | 3,002 | 2,367 | ||||||
ONEOK, Inc. 2.20% 9/15/2025 | 535 | 483 | ||||||
ONEOK, Inc. 3.10% 3/15/2030 | 3,835 | 3,104 | ||||||
Petróleos Mexicanos 7.19% 9/12/2024 | MXN | 158,687 | 7,299 | |||||
Petróleos Mexicanos 6.875% 10/16/2025 | USD | 210 | 202 | |||||
Petróleos Mexicanos 5.95% 1/28/2031 | 587 | 424 | ||||||
Petróleos Mexicanos 6.75% 9/21/2047 | 6,438 | 3,889 | ||||||
Petróleos Mexicanos 6.95% 1/28/2060 | 414 | 249 | ||||||
Plains All American Pipeline, LP 3.80% 9/15/2030 | 1,081 | 902 | ||||||
PTT Exploration and Production PCL 2.587% 6/10/20278 | 740 | 635 | ||||||
Qatar Petroleum 1.375% 9/12/20268 | 680 | 599 | ||||||
Qatar Petroleum 3.125% 7/12/20418 | 20,550 | 14,622 | ||||||
SA Global Sukuk, Ltd. 0.946% 6/17/20248 | 1,500 | 1,398 | ||||||
Shell International Finance BV 3.50% 11/13/2023 | 3,505 | 3,457 | ||||||
Shell International Finance BV 2.375% 11/7/2029 | 2,060 | 1,738 |
American Funds Global Balanced Fund | 15 |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds, notes & loans (continued) | ||||||||
Energy (continued) | ||||||||
TotalEnergies SE 2.708% junior subordinated perpetual bonds (5-year EUR-EURIBOR + 2.75% on 5/5/2023)10 | EUR | 1,100 | $ | 1,081 | ||||
TransCanada Corp. 5.875% 8/15/2076 (3-month USD-LIBOR + 4.64% on 8/15/2026)10 | USD | 18,000 | 16,790 | |||||
TransCanada PipeLines, Ltd. 4.10% 4/15/2030 | 3,360 | 3,011 | ||||||
Williams Companies, Inc. 3.50% 11/15/2030 | 2,749 | 2,318 | ||||||
Williams Companies, Inc. 2.60% 3/15/2031 | 470 | 369 | ||||||
Williams Partners, LP 4.30% 3/4/2024 | 2,000 | 1,970 | ||||||
Williams Partners, LP 3.90% 1/15/2025 | 945 | 912 | ||||||
110,103 | ||||||||
Industrials 0.36% | ||||||||
Boeing Company 4.508% 5/1/2023 | 26,500 | 26,394 | ||||||
Boeing Company 3.25% 2/1/2028 | 650 | 564 | ||||||
Canadian Pacific Railway, Ltd. 2.45% 12/2/2031 | 164 | 130 | ||||||
Canadian Pacific Railway, Ltd. 3.10% 12/2/2051 | 13,661 | 8,711 | ||||||
Carrier Global Corp. 2.242% 2/15/2025 | 210 | 196 | ||||||
Carrier Global Corp. 2.493% 2/15/2027 | 277 | 244 | ||||||
CSX Corp. 2.50% 5/15/2051 | 275 | 157 | ||||||
General Electric Capital Corp. 4.418% 11/15/2035 | 8,830 | 7,802 | ||||||
Honeywell International, Inc. 0.75% 3/10/2032 | EUR | 1,060 | 793 | |||||
Masco Corp. 1.50% 2/15/2028 | USD | 309 | 248 | |||||
MISC Capital Two (Labuan), Ltd. 3.75% 4/6/20278 | 15,523 | 14,106 | ||||||
Singapore Airlines, Ltd. 3.375% 1/19/2029 | 17,940 | 15,292 | ||||||
Union Pacific Corp. 2.80% 2/14/2032 | 800 | 664 | ||||||
United Technologies Corp. 4.125% 11/16/2028 | 5,000 | 4,658 | ||||||
79,959 | ||||||||
Information technology 0.35% | ||||||||
Adobe, Inc. 2.15% 2/1/2027 | 3,585 | 3,220 | ||||||
Apple, Inc. 3.35% 2/9/2027 | 2,650 | 2,516 | ||||||
Apple, Inc. 3.35% 8/8/2032 | 20,330 | 17,943 | ||||||
Apple, Inc. 2.375% 2/8/2041 | 750 | 503 | ||||||
Apple, Inc. 2.40% 8/20/2050 | 500 | 298 | ||||||
Broadcom, Inc. 3.15% 11/15/2025 | 659 | 615 | ||||||
Broadcom, Inc. 4.00% 4/15/20298 | 3,915 | 3,438 | ||||||
Broadcom, Inc. 4.15% 11/15/2030 | 3,330 | 2,868 | ||||||
Broadcom, Inc. 3.419% 4/15/20338 | 2,171 | 1,652 | ||||||
Broadcom, Inc. 3.137% 11/15/20358 | 75 | 52 | ||||||
Broadcom, Inc. 3.75% 2/15/20518 | 101 | 65 | ||||||
Lenovo Group, Ltd. 5.875% 4/24/2025 | 16,810 | 16,311 | ||||||
Mastercard, Inc. 2.00% 11/18/2031 | 8,291 | 6,524 | ||||||
Microsoft Corp. 2.40% 8/8/2026 | 10,568 | 9,787 | ||||||
Microsoft Corp. 3.30% 2/6/2027 | 2,600 | 2,474 | ||||||
Oracle Corp. 2.65% 7/15/2026 | 5,224 | 4,700 | ||||||
Oracle Corp. 3.25% 11/15/2027 | 4,246 | 3,771 | ||||||
PayPal Holdings, Inc. 2.30% 6/1/2030 | 1,701 | 1,373 | ||||||
ServiceNow, Inc. 1.40% 9/1/2030 | 140 | 103 | ||||||
78,213 | ||||||||
Health care 0.28% | ||||||||
Abbott Laboratories 3.75% 11/30/2026 | 1,133 | 1,089 | ||||||
AbbVie, Inc. 3.80% 3/15/2025 | 5,000 | 4,826 | ||||||
AbbVie, Inc. 3.20% 5/14/2026 | 3,000 | 2,797 | ||||||
Amgen, Inc. 1.90% 2/21/2025 | 1,644 | 1,533 | ||||||
Amgen, Inc. 2.20% 2/21/2027 | 1,261 | 1,121 | ||||||
Amgen, Inc. 4.20% 3/1/2033 | 1,425 | 1,285 | ||||||
AstraZeneca Finance, LLC 1.75% 5/28/2028 | 3,480 | 2,909 | ||||||
AstraZeneca Finance, LLC 2.25% 5/28/2031 | 5,028 | 4,053 | ||||||
AstraZeneca PLC 3.50% 8/17/2023 | 4,500 | 4,451 | ||||||
Bayer US Finance II, LLC 3.875% 12/15/20238 | 2,582 | 2,533 | ||||||
Bayer US Finance II, LLC 4.25% 12/15/20258 | 419 | 401 | ||||||
Becton, Dickinson and Company 3.734% 12/15/2024 | 322 | 312 | ||||||
Becton, Dickinson and Company 3.70% 6/6/2027 | 1,888 | 1,752 | ||||||
Becton, Dickinson and Company 2.823% 5/20/2030 | 1,089 | 909 | ||||||
Becton, Dickinson and Company 4.298% 8/22/2032 | 12,340 | 11,178 | ||||||
Cigna Corp. 4.125% 11/15/2025 | 1,010 | 977 | ||||||
Cigna Corp. 2.375% 3/15/2031 | 49 | 39 |
16 | American Funds Global Balanced Fund |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds, notes & loans (continued) | ||||||||
Health care (continued) | ||||||||
EMD Finance, LLC 3.25% 3/19/20258 | USD | 9,675 | $ | 9,225 | ||||
Regeneron Pharmaceuticals, Inc. 1.75% 9/15/2030 | 3,502 | 2,641 | ||||||
Shire PLC 2.875% 9/23/2023 | 988 | 966 | ||||||
Shire PLC 3.20% 9/23/2026 | 905 | 832 | ||||||
Stryker Corp. 0.25% 12/3/2024 | EUR | 1,200 | 1,112 | |||||
Stryker Corp. 0.75% 3/1/2029 | 2,440 | 1,991 | ||||||
Stryker Corp. 1.00% 12/3/2031 | 1,130 | 854 | ||||||
Takeda Pharmaceutical Company, Ltd. 0.75% 7/9/2027 | 1,984 | 1,732 | ||||||
61,518 | ||||||||
Consumer staples 0.25% | ||||||||
Altria Group, Inc. 1.70% 6/15/2025 | 12,300 | 11,466 | ||||||
Altria Group, Inc. 2.20% 6/15/2027 | 6,300 | 5,503 | ||||||
Altria Group, Inc. 3.40% 2/4/2041 | USD | 600 | 368 | |||||
Anheuser-Busch InBev NV 4.00% 4/13/2028 | 2,800 | 2,648 | ||||||
Anheuser-Busch InBev NV 4.75% 1/23/2029 | 8,970 | 8,733 | ||||||
Anheuser-Busch InBev NV 4.50% 6/1/2050 | 845 | 691 | ||||||
BAT Netherlands Finance 3.125% 4/7/2028 | EUR | 1,900 | 1,674 | |||||
British American Tobacco PLC 3.215% 9/6/2026 | USD | 2,181 | 1,940 | |||||
British American Tobacco PLC 4.70% 4/2/2027 | 4,193 | 3,889 | ||||||
British American Tobacco PLC 3.557% 8/15/2027 | 2,610 | 2,274 | ||||||
British American Tobacco PLC 3.462% 9/6/2029 | 2,625 | 2,123 | ||||||
Conagra Brands, Inc. 4.30% 5/1/2024 | 6,130 | 6,036 | ||||||
Conagra Brands, Inc. 1.375% 11/1/2027 | 355 | 287 | ||||||
Kimberly-Clark Corp. 3.10% 3/26/2030 | 374 | 328 | ||||||
Philip Morris International, Inc. 2.10% 5/1/2030 | 2,078 | 1,586 | ||||||
Philip Morris International, Inc. 4.125% 3/4/2043 | 819 | 561 | ||||||
Philip Morris International, Inc. 4.875% 11/15/2043 | 1,081 | 833 | ||||||
Reynolds American, Inc. 4.45% 6/12/2025 | 4,190 | 4,047 | ||||||
54,987 | ||||||||
Materials 0.17% | ||||||||
Anglo American Capital PLC 5.375% 4/1/20258 | 9,050 | 8,919 | ||||||
Anglo American Capital PLC 5.625% 4/1/20308 | 600 | 567 | ||||||
Celanese US Holdings, LLC 5.337% 1/19/2029 | EUR | 18,820 | 16,695 | |||||
Celanese US Holdings, LLC 6.379% 7/15/2032 | USD | 3,255 | 2,966 | |||||
Dow Chemical Co. 0.50% 3/15/2027 | EUR | 3,140 | 2,635 | |||||
Dow Chemical Co. 1.125% 3/15/2032 | 2,890 | 2,034 | ||||||
Fresnillo PLC 4.25% 10/2/20508 | USD | 1,797 | 1,225 | |||||
Newcrest Finance Pty, Ltd. 3.25% 5/13/20308 | 1,055 | 854 | ||||||
Vale Overseas, Ltd. 3.75% 7/8/2030 | 3,478 | 2,866 | ||||||
38,761 | ||||||||
Real estate 0.09% | ||||||||
American Tower Corp. 0.45% 1/15/2027 | EUR | 7,635 | 6,376 | |||||
American Tower Corp. 0.875% 5/21/2029 | 5,170 | 3,997 | ||||||
American Tower Corp. 1.25% 5/21/2033 | 2,165 | 1,518 | ||||||
Corporate Office Properties, LP 2.75% 4/15/2031 | USD | 180 | 130 | |||||
Equinix, Inc. 3.20% 11/18/2029 | 650 | 545 | ||||||
Equinix, Inc. 2.15% 7/15/2030 | 5,662 | 4,315 | ||||||
Equinix, Inc. 3.00% 7/15/2050 | 1,738 | 1,010 | ||||||
VICI Properties, LP 4.375% 5/15/2025 | 561 | 534 | ||||||
WEA Finance, LLC 3.75% 9/17/20248 | 2,070 | 1,949 | ||||||
20,374 | ||||||||
Municipals 0.01% | ||||||||
Aeropuerto International de Tocume SA 5.125% 8/11/20618 | 3,390 | 2,309 | ||||||
Total corporate bonds, notes & loans | 1,344,945 | |||||||
Mortgage-backed obligations 2.65% | ||||||||
Federal agency mortgage-backed obligations 1.73% | ||||||||
Fannie Mae Pool #MA3539 4.50% 12/1/203812 | 113 | 109 | ||||||
Fannie Mae Pool #CA7599 2.50% 11/1/205012 | 6,404 | 5,318 | ||||||
Fannie Mae Pool #FS0647 3.00% 2/1/205212 | 282 | 244 | ||||||
Freddie Mac Pool #SI2002 4.00% 3/1/204812 | 4 | 4 | ||||||
Freddie Mac, Series K153, Class A2, Multi Family, 3.82% 1/25/203312 | 36,020 | 32,620 | ||||||
Government National Mortgage Assn. 4.00% 10/20/204512 | 372 | 349 |
American Funds Global Balanced Fund | 17 |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Mortgage-backed obligations (continued) | ||||||||
Federal agency mortgage-backed obligations (continued) | ||||||||
Government National Mortgage Assn. 3.50% 11/1/205212,13 | USD | 59,655 | $ | 53,405 | ||||
Government National Mortgage Assn. 5.00% 11/1/205212,13 | 49,980 | 48,631 | ||||||
Uniform Mortgage-Backed Security 2.50% 11/1/205212,13 | 3,295 | 2,698 | ||||||
Uniform Mortgage-Backed Security 3.50% 11/1/205212,13 | 30,208 | 26,556 | ||||||
Uniform Mortgage-Backed Security 4.00% 11/1/205212,13 | 35,127 | 31,938 | ||||||
Uniform Mortgage-Backed Security 4.50% 11/1/205212,13 | 68,564 | 64,332 | ||||||
Uniform Mortgage-Backed Security 5.00% 11/1/205212,13 | 33,776 | 32,580 | ||||||
Uniform Mortgage-Backed Security 5.50% 11/1/205212,13 | 2,093 | 2,065 | ||||||
Uniform Mortgage-Backed Security 3.50% 12/1/205212,13 | 17,933 | 15,760 | ||||||
Uniform Mortgage-Backed Security 4.00% 12/1/205212,13 | 3,266 | 2,968 | ||||||
Uniform Mortgage-Backed Security 5.00% 12/1/205212,13 | 36,414 | 35,088 | ||||||
Uniform Mortgage-Backed Security 5.50% 12/1/205212,13 | 32,707 | 32,207 | ||||||
386,872 | ||||||||
Other mortgage-backed securities 0.92% | ||||||||
Nordea Kredit 0.50% 10/1/204012 | DKK | 60,726 | 6,286 | |||||
Nykredit Realkredit AS, Series 01E, 2.00% 7/1/203712 | 15,627 | 1,839 | ||||||
Nykredit Realkredit AS, Series 01E, 0.50% 10/1/204012 | 661,014 | 68,515 | ||||||
Nykredit Realkredit AS, Series 01E, 1.50% 10/1/204012 | 150,075 | 17,199 | ||||||
Nykredit Realkredit AS, Series 01E, 0.50% 10/1/204312 | 872,225 | 88,707 | ||||||
Nykredit Realkredit AS, Series 01E, 0.50% 10/1/205012 | 51,246 | 4,647 | ||||||
Nykredit Realkredit AS, Series CCE, 1.00% 10/1/205012 | 49,252 | 4,760 | ||||||
Nykredit Realkredit AS, Series 01E, 1.00% 10/1/205312 | 112,475 | 10,723 | ||||||
Realkredit Danmark AS 1.00% 10/1/205312 | 20,149 | 1,928 | ||||||
204,604 | ||||||||
Total mortgage-backed obligations | 591,476 | |||||||
Asset-backed obligations 0.65% | ||||||||
AmeriCredit Automobile Receivables Trust, Series 2022-2, Class A2B, (30-day Average USD-SOFR + 1.15%) 3.967% 12/18/202512,14 | USD | 14,040 | 14,040 | |||||
CarMaxAuto Owner Trust, Series 2022-3, Class A2B, (30-day Average USD-SOFR + 0.77%) 3.561% 9/15/202512,14 | 8,122 | 8,137 | ||||||
Exeter Automobile Receivables Trust, Series 2022-3A, Class A2, 3.45% 8/15/202412 | 4,900 | 4,884 | ||||||
Exeter Automobile Receivables Trust, Series 2022-4A, Class A2, 3.99% 8/15/202412 | 4,476 | 4,465 | ||||||
Ford Credit Auto Owner Trust, Series 2022-B, Class A2B, (30-day Average USD-SOFR + 0.60%) 3.391% 2/15/202512,14 | 6,646 | 6,647 | ||||||
GM Financial Automobile Leasing Trust, Series 2022-3, Class A2B, (30-day Average USD-SOFR + 0.71%) 3.63% 10/21/202412,14 | 6,900 | 6,897 | ||||||
GM Financial Consumer Automobile Receivables Trust, Series 2022-3, Class A2B, (30-day Average USD-SOFR + 0.60%) 3.391% 9/16/202512,14 | 7,391 | 7,392 | ||||||
Hyundai Auto Receivables Trust, Series 2022-B, Class A2B, (30-day Average USD-SOFR + 0.58%) 3.371% 5/15/202512,14 | 6,830 | 6,830 | ||||||
Nissan Auto Lease Trust, Series 2021-A, Class A3, 0.52% 8/15/202412 | 18,200 | 17,611 | ||||||
Nissan Auto Lease Trust, Series 2022-A, Class A2B, (30-day Average USD-SOFR + 0.68%) 3.471% 8/15/202412,14 | 17,200 | 17,204 | ||||||
Santander Drive Auto Receivables Trust, Series 2022-4, Class A2, 4.05% 7/15/202512 | 12,790 | 12,700 | ||||||
Toyota Auto Receivables Owner Trust, Series 2022-C, Class A2B, (1-month USD-SOFR + 0.57%) 3.361% 8/15/202512,14 | 2,464 | 2,461 | ||||||
Verizon Master Trust, Series 2022-3, Class A, 3.01% 5/20/2027 (3.76% on 11/20/2023)10,12 | 14,770 | 14,433 | ||||||
Volkswagen Auto Lease Trust, Series 2022-A, Class A2, 3.02% 10/21/202412 | 9,937 | 9,777 | ||||||
Westlake Automobile Receivables Trust, Series 2022-2A, Class A2A, 3.36% 8/15/20258,12 | 11,208 | 11,061 | ||||||
144,539 | ||||||||
Municipals 0.03% | ||||||||
Ohio 0.01% | ||||||||
Turnpike and Infrastructure Commission, Turnpike Rev. Ref. Bonds (Infrastructure Projects), Series 2020-A, 3.216% 2/15/2048 | 4,090 | 2,820 |
18 | American Funds Global Balanced Fund |
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Municipals (continued) | ||||||||
Texas 0.02% | ||||||||
Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Ref. Bonds, Series 2020-B, 3.236% 10/1/2052 | USD | 5,670 | $ | 3,619 | ||||
Total municipals | 6,439 | |||||||
Total bonds, notes & other debt instruments (cost: $9,111,294,000) | 7,695,966 | |||||||
Short-term securities 7.23% | Shares | |||||||
Money market investments 7.18% | ||||||||
Capital Group Central Cash Fund 3.18%5,15 | 16,029,906 | 1,602,670 | ||||||
Money market investments purchased with collateral from securities on loan 0.05% | ||||||||
Capital Group Central Cash Fund 3.18%5,15,16 | 42,889 | 4,288 | ||||||
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 3.07%15,16 | 1,638,679 | 1,639 | ||||||
Goldman Sachs Financial Square Government Fund, Institutional Shares 3.09%15,16 | 1,620,654 | 1,621 | ||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 3.01%15,16 | 1,300,000 | 1,300 | ||||||
Dreyfus Treasury Obligations Cash Management, Institutional Shares 3.00%15,16 | 596,582 | 596 | ||||||
BlackRock Liquidity Funds – FedFund, Institutional Shares 2.87%15,16 | 300,000 | 300 | ||||||
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, Institutional Class 2.88%15,16 | 300,000 | 300 | ||||||
10,044 | ||||||||
Total short-term securities (cost: $1,612,709,000) | 1,612,714 | |||||||
Total investment securities 101.50% (cost: $22,208,735,000) | 22,647,564 | |||||||
Other assets less liabilities (1.50)% | (334,908 | ) | ||||||
Net assets 100.00% | $ | 22,312,656 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | Value and unrealized (depreciation) appreciation at 10/31/2022 (000) | |||||||||
90 Day Eurodollar Futures | Long | 37 | December 2022 | USD8,777 | $ | (402 | ) | |||||||
2 Year U.S. Treasury Note Futures | Long | 601 | December 2022 | 122,834 | (2,616 | ) | ||||||||
5 Year Euro-Bobl Futures | Long | 2,589 | December 2022 | 306,185 | (3,209 | ) | ||||||||
5 Year U.S. Treasury Note Futures | Long | 5,962 | December 2022 | 635,512 | (12,335 | ) | ||||||||
10 Year Euro-Bund Futures | Long | 1,002 | December 2022 | 137,087 | (2,218 | ) | ||||||||
10 Year Italy Government Bond Futures | Long | 11 | December 2022 | 1,246 | (28 | ) | ||||||||
10 Year Japanese Government Bond Futures | Short | 108 | December 2022 | (108,054 | ) | (77 | ) | |||||||
10 Year Australian Treasury Bond Futures | Long | 298 | December 2022 | 22,584 | (417 | ) | ||||||||
10 Year U.S. Treasury Note Futures | Short | 692 | December 2022 | (76,531 | ) | 2,315 | ||||||||
10 Year UK Gilt Futures | Long | 3 | December 2022 | 351 | 19 | |||||||||
20 Year U.S. Treasury Bond Futures | Long | 207 | December 2022 | 24,944 | (3,295 | ) | ||||||||
30 Year Euro-Buxl Futures | Long | 91 | December 2022 | 12,970 | (1,382 | ) | ||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 470 | December 2022 | (59,998 | ) | 10,039 | ||||||||
$ | (13,606 | ) |
American Funds Global Balanced Fund | 19 |
Forward currency contracts
Contract amount | Unrealized appreciation (depreciation) | |||||||||||||
Currency purchased (000) | Currency sold (000) | Counterparty | Settlement date | at 10/31/2022 (000) | ||||||||||
USD | 49,592 | JPY | 7,312,100 | JPMorgan Chase | 11/1/2022 | $ | 411 | |||||||
USD | 3,992 | JPY | 588,630 | JPMorgan Chase | 11/1/2022 | 33 | ||||||||
JPY | 588,630 | USD | 4,407 | Bank of America | 11/1/2022 | (448 | ) | |||||||
JPY | 7,312,100 | USD | 54,744 | Bank of America | 11/1/2022 | (5,563 | ) | |||||||
KRW | 747,200 | USD | 519 | Goldman Sachs | 11/3/2022 | 5 | ||||||||
USD | 523 | KRW | 747,200 | UBS AG | 11/3/2022 | (1 | ) | |||||||
USD | 30,230 | AUD | 47,115 | Standard Chartered Bank | 11/10/2022 | 85 | ||||||||
AUD | 43,175 | USD | 27,558 | HSBC Bank | 11/10/2022 | 66 | ||||||||
AUD | 3,940 | USD | 2,517 | Standard Chartered Bank | 11/10/2022 | 4 | ||||||||
JPY | 417,157 | AUD | 4,480 | JPMorgan Chase | 11/10/2022 | (58 | ) | |||||||
JPY | 4,786,129 | AUD | 51,400 | JPMorgan Chase | 11/10/2022 | (664 | ) | |||||||
JPY | 16,346,450 | USD | 113,477 | Bank of America | 11/10/2022 | (3,423 | ) | |||||||
JPY | 16,346,450 | USD | 113,477 | Citibank | 11/10/2022 | (3,424 | ) | |||||||
JPY | 21,892,260 | USD | 151,844 | JPMorgan Chase | 11/10/2022 | (4,454 | ) | |||||||
KRW | 25,025,338 | USD | 17,457 | Citibank | 11/14/2022 | 75 | ||||||||
USD | 224 | INR | 18,470 | Standard Chartered Bank | 11/14/2022 | 1 | ||||||||
IDR | 12,592,370 | USD | 818 | Citibank | 11/14/2022 | (12 | ) | |||||||
EUR | 179,939 | USD | 175,077 | JPMorgan Chase | 11/16/2022 | 2,947 | ||||||||
EUR | 42,980 | USD | 41,819 | JPMorgan Chase | 11/16/2022 | 704 | ||||||||
CAD | 29,702 | USD | 21,488 | UBS AG | 11/16/2022 | 316 | ||||||||
PLN | 7,770 | EUR | 1,586 | UBS AG | 11/16/2022 | 56 | ||||||||
EUR | 2,440 | USD | 2,374 | JPMorgan Chase | 11/16/2022 | 40 | ||||||||
SEK | 6,730 | USD | 594 | Bank of America | 11/16/2022 | 16 | ||||||||
CAD | 4,610 | USD | 3,386 | JPMorgan Chase | 11/16/2022 | (2 | ) | |||||||
USD | 889 | NZD | 1,590 | HSBC Bank | 11/16/2022 | (36 | ) | |||||||
USD | 24,097 | MXN | 484,930 | UBS AG | 11/16/2022 | (305 | ) | |||||||
USD | 42,827 | AUD | 68,181 | UBS AG | 11/16/2022 | (805 | ) | |||||||
MXN | 1,642,110 | USD | 82,351 | Citibank | 11/18/2022 | 246 | ||||||||
NZD | 8,661 | USD | 4,802 | Standard Chartered Bank | 11/18/2022 | 236 | ||||||||
SEK | 73,900 | USD | 6,495 | Standard Chartered Bank | 11/18/2022 | 206 | ||||||||
EUR | 9,058 | USD | 8,796 | JPMorgan Chase | 11/18/2022 | 167 | ||||||||
NZD | 2,340 | USD | 1,297 | Standard Chartered Bank | 11/18/2022 | 64 | ||||||||
MXN | 143,280 | USD | 7,185 | Citibank | 11/18/2022 | 22 | ||||||||
EUR | 13,066 | DKK | 97,170 | Bank of America | 11/18/2022 | 14 | ||||||||
USD | 1,114 | MYR | 5,220 | JPMorgan Chase | 11/18/2022 | 10 | ||||||||
USD | 37,818 | JPY | 5,612,000 | Morgan Stanley | 11/18/2022 | 1 | ||||||||
USD | 3 | GBP | 3 | Morgan Stanley | 11/18/2022 | — | 3 | |||||||
USD | 3,289 | JPY | 488,140 | Standard Chartered Bank | 11/18/2022 | (1 | ) | |||||||
CAD | 54,230 | USD | 39,831 | JPMorgan Chase | 11/18/2022 | (22 | ) | |||||||
CNH | 29,370 | USD | 4,074 | JPMorgan Chase | 11/18/2022 | (66 | ) | |||||||
USD | 12,770 | EUR | 13,150 | JPMorgan Chase | 11/18/2022 | (242 | ) | |||||||
JPY | 3,442,980 | USD | 23,449 | Bank of America | 11/18/2022 | (249 | ) | |||||||
USD | 15,840 | EUR | 16,312 | JPMorgan Chase | 11/18/2022 | (301 | ) | |||||||
USD | 38,287 | BRL | 200,675 | Morgan Stanley | 11/18/2022 | (402 | ) | |||||||
EUR | 58,400 | USD | 58,285 | Goldman Sachs | 11/18/2022 | (499 | ) | |||||||
USD | 56,339 | EUR | 57,725 | Goldman Sachs | 11/18/2022 | (780 | ) | |||||||
USD | 38,951 | CAD | 54,230 | JPMorgan Chase | 11/18/2022 | (858 | ) | |||||||
JPY | 13,809,154 | USD | 94,063 | Morgan Stanley | 11/18/2022 | (1,008 | ) | |||||||
USD | 163,412 | MXN | 3,301,140 | Morgan Stanley | 11/18/2022 | (2,634 | ) | |||||||
EUR | 30,647 | USD | 30,069 | Citibank | 11/21/2022 | 263 | ||||||||
USD | 7,769 | CNH | 55,806 | Standard Chartered Bank | 11/21/2022 | 153 | ||||||||
CZK | 44,185 | USD | 1,739 | HSBC Bank | 11/22/2022 | 42 | ||||||||
USD | 15,685 | MYR | 74,150 | Standard Chartered Bank | 11/22/2022 | (7 | ) | |||||||
EUR | 64,850 | USD | 63,668 | Citibank | 11/23/2022 | 524 | ||||||||
PLN | 7,170 | USD | 1,465 | Citibank | 11/23/2022 | 32 | ||||||||
EUR | 1,950 | PLN | 9,370 | Citibank | 11/23/2022 | (27 | ) | |||||||
EUR | 5,120 | USD | 5,115 | HSBC Bank | 11/23/2022 | (47 | ) | |||||||
USD | 13,827 | COP | 69,460,470 | Morgan Stanley | 11/23/2022 | (180 | ) | |||||||
JPY | 588,630 | USD | 4,008 | JPMorgan Chase | 12/6/2022 | (32 | ) | |||||||
JPY | 7,312,100 | USD | 49,784 | JPMorgan Chase | 12/6/2022 | (395 | ) | |||||||
GBP | 24,030 | USD | 27,180 | Citibank | 12/7/2022 | 410 | ||||||||
EUR | 132,712 | DKK | 987,155 | Morgan Stanley | 12/7/2022 | 104 |
20 | American Funds Global Balanced Fund |
Forward currency contracts (continued)
Contract amount | Unrealized appreciation (depreciation) | ||||||||||||||
Currency purchased (000) | Currency sold (000) | Counterparty | Settlement date | at 10/31/2022 (000) | |||||||||||
USD | 2,983 | COP | 14,363,080 | Citibank | 12/7/2022 | $ | 94 | ||||||||
CAD | 14,745 | USD | 10,741 | HSBC Bank | 12/7/2022 | 86 | |||||||||
EUR | 7,785 | USD | 7,706 | Bank of New York Mellon | 12/7/2022 | 10 | |||||||||
USD | 4,304 | DKK | 32,364 | Bank of New York Mellon | 12/7/2022 | (5 | ) | ||||||||
USD | 1,273 | MXN | 25,612 | Goldman Sachs | 12/7/2022 | (11 | ) | ||||||||
USD | 3,001 | CAD | 4,120 | HSBC Bank | 12/7/2022 | (24 | ) | ||||||||
AUD | 26,450 | USD | 17,141 | Standard Chartered Bank | 12/7/2022 | (203 | ) | ||||||||
KRW | 747,200 | USD | 523 | UBS AG | 12/8/2022 | 1 | |||||||||
PLN | 9,600 | USD | 2,315 | BNP Paribas | 2/2/2023 | (338 | ) | ||||||||
PLN | 181,720 | USD | 43,818 | BNP Paribas | 2/2/2023 | (6,408 | ) | ||||||||
$ | (26,490 | ) |
Swap contracts
Interest rate swaps
Centrally cleared interest rate swaps
Receive | Pay | Notional | Value at | Upfront premium | Unrealized depreciation | |||||||||||||||||||
Rate | Payment frequency | Rate | Payment frequency | Expiration date | amount (000) | 10/31/2022 (000) | paid (000) | at 10/31/2022 (000) | ||||||||||||||||
1.2475% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 8/20/2023 | NZD23,959 | $ | (394 | ) | $ | — | $ | (394 | ) | |||||||||||
1.234974% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 8/20/2023 | 204,176 | (3,371 | ) | — | (3,371 | ) | ||||||||||||||
1.2375% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 8/26/2023 | 75,250 | (1,271 | ) | — | (1,271 | ) | ||||||||||||||
1.264% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 8/27/2023 | 188,099 | (3,153 | ) | — | (3,153 | ) | ||||||||||||||
1.26% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 8/30/2023 | 31,027 | (524 | ) | — | (524 | ) | ||||||||||||||
1.28% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 8/31/2023 | 31,027 | (523 | ) | — | (523 | ) | ||||||||||||||
1.30% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 9/3/2023 | 34,062 | (579 | ) | — | (579 | ) | ||||||||||||||
1.4975% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 9/21/2023 | 63,786 | (1,087 | ) | — | (1,087 | ) | ||||||||||||||
1.445% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 9/28/2023 | 63,714 | (1,133 | ) | — | (1,133 | ) | ||||||||||||||
1.4475% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 9/29/2023 | 64,930 | (1,156 | ) | — | (1,156 | ) | ||||||||||||||
1.4475% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 9/30/2023 | 65,200 | (1,162 | ) | — | (1,162 | ) | ||||||||||||||
1.5212% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 10/14/2023 | 15,900 | (295 | ) | — | (295 | ) | ||||||||||||||
1.5125% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 10/14/2023 | 57,556 | (1,070 | ) | — | (1,070 | ) | ||||||||||||||
1.53% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 10/14/2023 | 65,649 | (1,214 | ) | — | (1,214 | ) | ||||||||||||||
1.5625% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 10/15/2023 | 65,577 | (1,202 | ) | — | (1,202 | ) | ||||||||||||||
1.59% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 10/18/2023 | 65,577 | (1,201 | ) | — | (1,201 | ) | ||||||||||||||
1.62% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 10/19/2023 | 72,901 | (1,335 | ) | — | (1,335 | ) | ||||||||||||||
2.2525% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 11/8/2023 | 193,402 | (3,039 | ) | — | (3,039 | ) | ||||||||||||||
2.24% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 11/8/2023 | 193,402 | (3,053 | ) | — | (3,053 | ) | ||||||||||||||
2.20% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 11/9/2023 | 16,270 | (261 | ) | — | (261 | ) | ||||||||||||||
3.6097% | Semi-annual | 3-month NZD-BBR-FRA | Quarterly | 4/14/2024 | 23,900 | (278 | ) | — | (278 | ) | ||||||||||||||
2.495% | Annual | SONIA | Annual | 5/5/2024 | GBP181,830 | (4,739 | ) | — | (4,739 | ) | ||||||||||||||
2.42% | Annual | SONIA | Annual | 5/5/2024 | 362,600 | (9,745 | ) | — | (9,745 | ) | ||||||||||||||
2.9588% | Annual | SONIA | Annual | 6/9/2024 | 246,870 | (5,171 | ) | — | (5,171 | ) | ||||||||||||||
SONIA | Annual | 5.6325% | Annual | 9/25/2024 | 453,970 | (3,783 | ) | — | (3,783 | ) | ||||||||||||||
6.59% | 28-day | 28-day MXN-TIIE | 28-day | 6/25/2026 | MXN126,900 | (559 | ) | — | (559 | ) | ||||||||||||||
6.585% | 28-day | 28-day MXN-TIIE | 28-day | 6/25/2026 | 166,800 | (736 | ) | — | (736 | ) | ||||||||||||||
6.64% | 28-day | 28-day MXN-TIIE | 28-day | 6/25/2026 | 205,100 | (888 | ) | — | (888 | ) | ||||||||||||||
6.6175% | 28-day | 28-day MXN-TIIE | 28-day | 6/25/2026 | 543,800 | (2,373 | ) | — | (2,373 | ) | ||||||||||||||
6.633% | 28-day | 28-day MXN-TIIE | 28-day | 6/25/2026 | 565,700 | (2,455 | ) | — | (2,455 | ) | ||||||||||||||
6.58% | 28-day | 28-day MXN-TIIE | 28-day | 6/25/2026 | 716,200 | (3,168 | ) | — | (3,168 | ) | ||||||||||||||
6.605% | 28-day | 28-day MXN-TIIE | 28-day | 7/6/2026 | 466,325 | (2,054 | ) | — | (2,054 | ) | ||||||||||||||
7.59% | 28-day | 28-day MXN-TIIE | 28-day | 10/29/2026 | 212,700 | (637 | ) | — | (637 | ) | ||||||||||||||
7.62% | 28-day | 28-day MXN-TIIE | 28-day | 10/29/2026 | 318,971 | (939 | ) | — | (939 | ) | ||||||||||||||
7.66% | 28-day | 28-day MXN-TIIE | 28-day | 10/29/2026 | 520,800 | (1,498 | ) | — | (1,498 | ) | ||||||||||||||
7.64% | 28-day | 28-day MXN-TIIE | 28-day | 10/29/2026 | 520,800 | (1,515 | ) | — | (1,515 | ) | ||||||||||||||
7.52% | 28-day | 28-day MXN-TIIE | 28-day | 10/30/2026 | 657,429 | (2,046 | ) | — | (2,046 | ) |
American Funds Global Balanced Fund | 21 |
Swap contracts (continued)
Interest rate swaps (continued)
Centrally cleared interest rate swaps (continued)
Receive | Pay | Notional | Value at | Upfront premium | Unrealized depreciation | |||||||||||||||||||
Rate | Payment frequency | Rate | Payment frequency | Expiration date | amount (000) | 10/31/2022 (000) | paid (000) | at 10/31/2022 (000) | ||||||||||||||||
7.475% | 28-day | 28-day MXN-TIIE | 28-day | 2/3/2027 | MXN79,150 | $ | (262 | ) | $ | — | $ | (262 | ) | |||||||||||
8.715% | 28-day | 28-day MXN-TIIE | 28-day | 4/7/2027 | 162,800 | (184 | ) | — | (184 | ) | ||||||||||||||
$ | (70,053 | ) | $ | — | $ | (70,053 | ) |
Investments in affiliates5
Value of affiliates at 11/1/2021 (000) | Additions (000) | Reductions (000) | Net realized loss (000) | Net unrealized depreciation (000) | Value of affiliates at 10/31/2022 (000) | Dividend income (000) | ||||||||||||||||||||||
Investment funds 1.12% | ||||||||||||||||||||||||||||
Capital Group Central Corporate Bond Fund | $ | — | $ | 252,581 | $ | — | $ | — | $ | (3,113 | ) | $ | 249,468 | $ | 623 | |||||||||||||
Short-term securities 7.20% | ||||||||||||||||||||||||||||
Money market investments 7.18% | ||||||||||||||||||||||||||||
Capital Group Central Cash Fund 3.18%15 | 693,043 | 5,709,076 | 4,799,096 | (310 | ) | (43 | ) | 1,602,670 | 16,482 | |||||||||||||||||||
Money market investments purchased with collateral from securities on loan 0.02% | ||||||||||||||||||||||||||||
Capital Group Central Cash Fund 3.18%15,16 | — | 4,28817 | 4,288 | — | 18 | |||||||||||||||||||||||
Total short-term securities | 1,606,958 | |||||||||||||||||||||||||||
Total 8.32% | $ | (310 | ) | $ | (3,156 | ) | $ | 1,856,426 | $ | 17,105 |
Restricted securities11
Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | |||||||||||||
Netflix, Inc. 3.875% 11/15/2029 | 2/8/2022-7/13/2022 | $ | 13,388 | $ | 12,642 | .06 | % | |||||||||
Goldman Sachs Group, Inc. 1.00% 3/18/2033 | 5/19/2021 | 16,197 | 9,402 | .04 | ||||||||||||
Total | $ | 29,585 | $ | 22,044 | .10 | % |
1 | Security did not produce income during the last 12 months. |
2 | Value determined using significant unobservable inputs. |
3 | Amount less than one thousand. |
4 | All or a portion of this security was on loan. The total value of all such securities was $9,840,000, which represented .04% of the net assets of the fund. Refer to Note 5 for more information on securities lending. |
5 | Part of the same “group of investment companies” as the fund as defined under the Investment Company Act of 1940, as amended. |
6 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $62,765,000, which represented .28% of the net assets of the fund. |
7 | Index-linked bond whose principal amount moves with a government price index. |
8 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $363,165,000, which represented 1.63% of the net assets of the fund. |
9 | Scheduled interest and/or principal payment was not received. |
10 | Step bond; coupon rate may change at a later date. |
11 | Restricted security, other than Rule 144A, subject to legal or contractual restrictions on resale, including securities not registered under the Securities Act of 1933. The total value of all such restricted securities was $22,044,000, which represented .10% of the net assets of the fund. |
12 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
13 | Purchased on a TBA basis. |
14 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
15 | Rate represents the seven-day yield at 10/31/2022. |
16 | Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending. |
17 | Represents net activity. Refer to Note 5 for more information on securities lending. |
18 | Dividend income is included with securities lending income in the fund’s statement of operations and is not shown in this table. |
22 | American Funds Global Balanced Fund |
Key to abbreviations
ADR = American Depositary Receipts
Assn. = Association
AUD = Australian dollars
BBR = Bank Base Rate
BRL = Brazilian reais
CAD = Canadian dollars
CDI = CREST Depository Interest
CLP = Chilean pesos
CNH = Chinese yuan renminbi
CNY = Chinese yuan
COP = Colombian pesos
CZK = Czech korunas
DKK = Danish kroner
EUR = Euros
EURIBOR = Euro Interbank Offered Rate
FRA = Forward Rate Agreement
GBP = British pounds
IDR = Indonesian rupiah
INR = Indian rupees
JPY = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
MYR = Malaysian ringgits
NZD = New Zealand dollars
PLN = Polish zloty
Ref. = Refunding
REIT = Real Estate Investment Trust
Rev. = Revenue
RUB = Russian rubles
SEK = Swedish kronor
SOFR = Secured Overnight Financing Rate
SONIA = Sterling Overnight Interbank Average Rate
TBA = To be announced
TIIE = Equilibrium Interbank Interest Rate
UAH = Ukrainian hryvnia
USD = U.S. dollars
ZAR = South African rand
Refer to the notes to financial statements.
American Funds Global Balanced Fund | 23 |
Financial statements
Statement of assets and liabilities at October 31, 2022 | (dollars in thousands) |
Assets: | ||||||||
Investment securities, at value (includes $9,840 of investment securities on loan): | ||||||||
Unaffiliated issuers (cost: $20,349,201) | $ | 20,791,138 | ||||||
Affiliated issuers (cost: $1,859,534) | 1,856,426 | $ | 22,647,564 | |||||
Cash | 953 | |||||||
Cash denominated in currencies other than U.S. dollars (cost: $5,311) | 5,311 | |||||||
Unrealized appreciation on open forward currency contracts | 7,444 | |||||||
Receivables for: | ||||||||
Sales of investments | 196,006 | |||||||
Sales of fund’s shares | 11,582 | |||||||
Dividends and interest | 85,374 | |||||||
Securities lending income | — | * | ||||||
Closed forward currency contracts | 259 | |||||||
Variation margin on futures contracts | 1,251 | |||||||
Variation margin on centrally cleared swap contracts | 1,710 | |||||||
Other | — | * | 296,182 | |||||
22,957,454 | ||||||||
Liabilities: | ||||||||
Collateral for securities on loan | 10,044 | |||||||
Unrealized depreciation on open forward currency contracts | 33,934 | |||||||
Payables for: | ||||||||
Purchases of investments | 543,730 | |||||||
Repurchases of fund’s shares | 12,242 | |||||||
Investment advisory services | 8,097 | |||||||
Services provided by related parties | 2,150 | |||||||
Trustees’ deferred compensation | 1,151 | |||||||
Closed forward currency contracts | 72 | |||||||
Variation margin on futures contracts | 6,673 | |||||||
Variation margin on centrally cleared swap contracts | 2,623 | |||||||
Other | 24,082 | 600,820 | ||||||
Net assets at October 31, 2022 | $ | 22,312,656 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 22,521,162 | ||||||
Total accumulated loss | (208,506 | ) | ||||||
Net assets at October 31, 2022 | $ | 22,312,656 |
* | Amount less than one thousand. |
Refer to the notes to financial statements.
24 | American Funds Global Balanced Fund |
Financial statements (continued)
Statement of assets and liabilities
at October 31, 2022 (continued)
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (721,181 total shares outstanding)
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 4,880,399 | 157,799 | $ | 30.93 | |||||||
Class C | 266,051 | 8,624 | 30.85 | |||||||||
Class T | 10 | — | * | 30.87 | ||||||||
Class F-1 | 107,873 | 3,486 | 30.95 | |||||||||
Class F-2 | 2,749,373 | 88,875 | 30.94 | |||||||||
Class F-3 | 772,343 | 24,981 | 30.92 | |||||||||
Class 529-A | 275,370 | 8,910 | 30.90 | |||||||||
Class 529-C | 19,235 | 624 | 30.80 | |||||||||
Class 529-E | 11,122 | 360 | 30.88 | |||||||||
Class 529-T | 12 | — | * | 30.87 | ||||||||
Class 529-F-1 | 10 | — | * | 30.92 | ||||||||
Class 529-F-2 | 37,959 | 1,228 | 30.92 | |||||||||
Class 529-F-3 | 10 | — | * | 30.93 | ||||||||
Class R-1 | 3,368 | 109 | 30.87 | |||||||||
Class R-2 | 39,746 | 1,291 | 30.78 | |||||||||
Class R-2E | 3,271 | 106 | 30.84 | |||||||||
Class R-3 | 48,527 | 1,572 | 30.87 | |||||||||
Class R-4 | 38,283 | 1,238 | 30.93 | |||||||||
Class R-5E | 6,245 | 202 | 30.90 | |||||||||
Class R-5 | 20,000 | 646 | 30.97 | |||||||||
Class R-6 | 13,033,449 | 421,130 | 30.95 |
* | Amount less than one thousand. |
Refer to the notes to financial statements.
American Funds Global Balanced Fund | 25 |
Financial statements (continued)
Statement of operations for the year ended October 31, 2022 | (dollars in thousands) |
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $23,775; also includes $17,105 from affiliates) | $ | 422,234 | ||||||
Interest from unaffiliated issuers (net of non-U.S. taxes of $585) | 190,103 | |||||||
Securities lending income (net of fees) | 1,265 | $ | 613,602 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 106,641 | |||||||
Distribution services | 20,200 | |||||||
Transfer agent services | 8,990 | |||||||
Administrative services | 7,353 | |||||||
529 plan services | 229 | |||||||
Reports to shareholders | 341 | |||||||
Registration statement and prospectus | 524 | |||||||
Trustees’ compensation | (119 | ) | ||||||
Auditing and legal | 157 | |||||||
Custodian | 1,520 | |||||||
Other | 105 | 145,941 | ||||||
Net investment income | 467,661 | |||||||
Net realized loss and unrealized depreciation: | ||||||||
Net realized (loss) gain on: | ||||||||
Investments (net of non-U.S. taxes of $1,810): | ||||||||
Unaffiliated issuers | (427,770 | ) | ||||||
Affiliated issuers | (310 | ) | ||||||
Futures contracts | 2,773 | |||||||
Forward currency contracts | (174,647 | ) | ||||||
Swap contracts | 23,694 | |||||||
Currency transactions | (13,362 | ) | (589,622 | ) | ||||
Net unrealized depreciation on: | ||||||||
Investments (net of non-U.S. taxes of $21,758): | ||||||||
Unaffiliated issuers | (4,582,092 | ) | ||||||
Affiliated issuers | (3,156 | ) | ||||||
Futures contracts | (18,073 | ) | ||||||
Forward currency contracts | (27,280 | ) | ||||||
Swap contracts | (51,398 | ) | ||||||
Currency translations | (670 | ) | (4,682,669 | ) | ||||
Net realized loss and unrealized depreciation | (5,272,291 | ) | ||||||
Net decrease in net assets resulting from operations | $ | (4,804,630 | ) |
* | Additional information related to class-specific fees and expenses is included in the notes to financial statements. |
Refer to the notes to financial statements.
26 | American Funds Global Balanced Fund |
Financial statements (continued)
Statements of changes in net assets | (dollars in thousands) |
Year ended October 31, | ||||||||
2022 | 2021 | |||||||
Operations: | ||||||||
Net investment income | $ | 467,661 | $ | 447,699 | ||||
Net realized (loss) gain | (589,622 | ) | 1,506,057 | |||||
Net unrealized (depreciation) appreciation | (4,682,669 | ) | 2,510,063 | |||||
Net (decrease) increase in net assets resulting from operations | (4,804,630 | ) | 4,463,819 | |||||
Distributions paid to shareholders | (1,547,789 | ) | (441,590 | ) | ||||
Net capital share transactions | 2,698,831 | 1,492,264 | ||||||
Total (decrease) increase in net assets | (3,653,588 | ) | 5,514,493 | |||||
Net assets: | ||||||||
Beginning of year | 25,966,244 | 20,451,751 | ||||||
End of year | $ | 22,312,656 | $ | 25,966,244 |
Refer to the notes to financial statements.
American Funds Global Balanced Fund | 27 |
Notes to financial statements
1. Organization
American Funds Global Balanced Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end, diversified management investment company. The fund seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.
The fund has 21 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), seven 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T, 529-F-1, 529-F-2 and 529-F-3) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature | |||
Classes A and 529-A | Up to 5.75% for Class A; up to 3.50% for Class 529-A | None (except 1.00% for certain redemptions within 18 months of purchase without an initial sales charge) | None | |||
Classes C and 529-C | None | 1.00% for redemptions within one year of purchase | Class C converts to Class A after eight years and Class 529-C converts to Class 529-A after five years | |||
Class 529-E | None | None | None | |||
Classes T and 529-T* | Up to 2.50% | None | None | |||
Classes F-1, F-2, F-3, 529-F-1, 529-F-2 and 529-F-3 | None | None | None | |||
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 | None | None | None |
* | Class T and 529-T shares are not available for purchase. |
Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution, transfer agent and administrative services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.
2. Significant accounting policies
The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations — Income, fees and expenses (other than class-specific fees and expenses), realized gains and losses and unrealized appreciation and depreciation are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, transfer agent and administrative services, are charged directly to the respective share class.
Distributions paid to shareholders — Income dividends and capital gain distributions are recorded on the ex-dividend date.
28 | American Funds Global Balanced Fund |
Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in the fund’s statement of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
3. Valuation
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities, including depositary receipts, are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities, are generally valued at evaluated prices obtained from third-party pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs | |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) | |
Corporate bonds, notes & loans; convertible securities | Standard inputs and underlying equity of the issuer | |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities | |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information | |
Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Corporate Bond Fund (“CCBF”), a fund within the Capital Group Central Fund Series II, and Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (collectively the “Central Funds”), are each valued based upon a floating net asset value, which fluctuates with changes in the value of each fund’s portfolio securities. The underlying securities are valued based on the policies and procedures in the Central Funds’ statements of additional information. Exchange-traded futures are generally valued at the official settlement price of the exchange or market on which such instruments are traded, as of the close of business on the day the futures are being valued. Forward currency contracts are valued based on the spot and forward exchange rates obtained from a third-party pricing vendor. Swaps are generally valued using evaluated prices obtained from third-party pricing vendors who calculate these values based on market inputs that may include the yields of the indices referenced in the instrument and the relevant curve, dealer quotes, default probabilities and recovery rates, other reference data, and terms of the contract.
American Funds Global Balanced Fund | 29 |
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by the fund’s investment adviser and approved by the board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security, contractual or legal restrictions on resale of the security, relevant financial or business developments of the issuer, actively traded similar or related securities, dealer or broker quotes, conversion or exchange rights on the security, related corporate actions, significant events occurring after the close of trading in the security, and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The fund’s board of trustees has designated the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation team. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews facilitated by the investment adviser’s global risk management group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The tables on the following page present the fund’s valuation levels as of October 31, 2022 (dollars in thousands):
30 | American Funds Global Balanced Fund |
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 2,282,591 | $ | — | $ | — | $ | 2,282,591 | ||||||||
Industrials | 1,760,543 | — | — | 1,760,543 | ||||||||||||
Health care | 1,708,919 | — | — | 1,708,919 | ||||||||||||
Information technology | 1,514,008 | — | — | 1,514,008 | ||||||||||||
Consumer staples | 1,172,606 | — | — | 1,172,606 | ||||||||||||
Utilities | 990,585 | — | — | 990,585 | ||||||||||||
Energy | 970,326 | — | — | 970,326 | ||||||||||||
Materials | 840,729 | — | — | 840,729 | ||||||||||||
Communication services | 714,865 | — | — | * | 714,865 | |||||||||||
Consumer discretionary | 517,559 | — | — | 517,559 | ||||||||||||
Real estate | 370,801 | — | — | 370,801 | ||||||||||||
Preferred securities | 175,295 | — | — | 175,295 | ||||||||||||
Convertible stocks | 70,589 | — | — | 70,589 | ||||||||||||
Investment funds | 249,468 | — | — | 249,468 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 2,836,351 | — | 2,836,351 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 2,772,216 | — | 2,772,216 | ||||||||||||
Corporate bonds, notes & loans | — | 1,344,945 | — | 1,344,945 | ||||||||||||
Mortgage-backed obligations | — | 591,476 | — | 591,476 | ||||||||||||
Asset-backed obligations | — | 144,539 | — | 144,539 | ||||||||||||
Municipals | — | 6,439 | — | 6,439 | ||||||||||||
Short-term securities | 1,612,714 | — | — | 1,612,714 | ||||||||||||
Total | $ | 14,951,598 | $ | 7,695,966 | $ | — | * | $ | 22,647,564 | |||||||
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 12,373 | $ | — | $ | — | $ | 12,373 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 7,444 | — | 7,444 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (25,979 | ) | — | — | (25,979 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (33,934 | ) | — | (33,934 | ) | ||||||||||
Unrealized depreciation on centrally cleared interest rate swaps | — | (70,053 | ) | — | (70,053 | ) | ||||||||||
Total | $ | (13,606 | ) | $ | (96,543 | ) | $ | — | $ | (110,149 | ) |
* | Amount less than one thousand. |
† | Futures contracts, forward currency contracts and interest rate swaps are not included in the fund’s investment portfolio. |
4. Risk factors
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries or companies; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the fund’s investments may be negatively affected by developments in other countries and regions.
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Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation, investigations or other controversies related to the issuer, changes in financial condition or credit rating, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.
Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments.
Investing in income-oriented stocks — The value of the fund’s securities and income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend payments at, the companies in which the fund invests.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls, sanctions, or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different regulatory, legal, accounting, auditing, financial reporting and recordkeeping requirements, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund, which could impact the liquidity of the fund’s portfolio. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries tend to have less developed political, economic and legal systems than those in developed countries. Accordingly, the governments of these countries may be less stable and more likely to intervene in the market economy, for example, by imposing capital controls, nationalizing a company or industry, placing restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or imposing punitive taxes that could adversely affect the prices of securities. Information regarding issuers in emerging markets may be limited, incomplete or inaccurate, and such issuers may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which issuers in more developed markets are subject. The fund’s rights with respect to its investments in emerging markets, if any, will generally be governed by local law, which may make it difficult or impossible for the fund to pursue legal remedies or to obtain and enforce judgments in local courts. In addition, the economies of these countries may be dependent on relatively few industries, may have limited access to capital and may be more susceptible to changes in local and global trade conditions and downturns in the world economy. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.
Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the fund may be affected by factors such as the interest rates, maturities and credit quality of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Also, when interest rates rise, issuers are less likely to refinance existing debt securities in order to enjoy lower interest rates in a higher interest rate environment, causing the market prices of such securities to decline. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
32 | American Funds Global Balanced Fund |
Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Changes in actual or perceived creditworthiness may occur quickly. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in assessing credit and default risks.
Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income- bearing assets, such as consumer loans or receivables. While such securities are subject to the risks associated with investments in debt instruments generally (for example, credit, extension and interest rate risks), they are also subject to other and different risks. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and the fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.
Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile or difficult to determine, and reduced liquidity may have an adverse impact on the market price of such holdings. During times of market turmoil, there have been, and may be, no buyers or sellers for securities in entire asset classes. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs, or to try to limit losses, or may be forced to sell at a loss.
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
5. Certain investment techniques
Securities lending — The fund has entered into securities lending transactions in which the fund earns income by lending investment securities to brokers, dealers or other institutions. Each transaction involves three parties: the fund, acting as the lender of the securities, a borrower, and a lending agent that acts as an intermediary.
Securities lending transactions are entered into by the fund under a securities lending agent agreement with the lending agent. The lending agent facilitates the exchange of securities between the fund and approved borrowers, ensures that securities loans are properly coordinated and documented, marks-to-market the value of collateral daily, secures additional collateral from a borrower if it falls below preset terms, and may reinvest cash collateral on behalf of the fund according to agreed parameters. The lending agent provides indemnification to the fund against losses resulting from a borrower default. Although risk is mitigated by the collateral and indemnification, the fund could experience a delay in recovering its securities and a potential loss of income or value if a borrower fails to return securities, collateral investments decline in value or the lending agent fails to perform.
The borrower is required to post highly liquid assets, such as cash or U.S. government securities, as collateral for the loan in an amount at least equal to the value of the securities loaned. Investments made with cash collateral are recognized as assets in the fund’s investment portfolio. The same amount is recorded as a liability in the fund’s statement of assets and liabilities. While securities are on loan, the fund will continue to receive the equivalent of the interest, dividends or other distributions paid by the issuer, as well as a portion of the interest on the investment of the collateral. Additionally, although the fund does not have the right to vote on securities while they are on loan, the fund has a right to consent on corporate actions and a right to recall loaned securities to vote. A borrower is obligated to return loaned securities at the conclusion of a loan or, during the pendency of a loan, on demand from the fund.
American Funds Global Balanced Fund | 33 |
As of October 31, 2022, the total value of securities on loan was $9,840,000, and the total value of collateral received was $10,044,000, which consisted entirely of cash. Investment securities purchased from cash collateral are disclosed in the fund’s investment portfolio as short-term securities. Securities received as collateral, if any, are not recognized as fund assets. The contractual maturity of cash collateral received under the securities lending agreement is classified as overnight and continuous.
Index-linked bonds — The fund has invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.
Mortgage dollar rolls — The fund has entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions. Portfolio turnover rates excluding and including mortgage dollar rolls are presented at the end of the fund’s financial highlights table.
Futures contracts — The fund has entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio.
Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, known as a futures commission merchant (“FCM”), in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract.
On a daily basis, the fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in the statement of assets and liabilities. Futures contracts may involve a risk of loss in excess of the variation margin shown on the fund’s statement of assets and liabilities. The fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in the fund’s statement of operations. The average month-end notional amount of futures contracts while held was $1,097,746,000.
Forward currency contracts — The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the fund’s investment adviser values forward currency contracts and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency.
Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations. The average month-end notional amount of open forward currency contracts while held was $1,994,681,000.
Swap contracts — The fund has entered into swap agreements, which are two-party contracts entered into primarily by institutional investors for a specified time period. In a typical swap transaction, two parties agree to exchange the returns earned or realized from one or more underlying assets or rates of return. Swap agreements can be traded on a swap execution facility (SEF) and cleared through a central clearinghouse (cleared), traded over-the-counter (OTC) and cleared, or traded bilaterally and not cleared. Because clearing interposes a central clearinghouse as the ultimate counterparty to each participant’s swap, and margin is required to be exchanged under the rules of the clearinghouse, central clearing is intended to decrease (but not eliminate) counterparty risk relative to uncleared bilateral swaps. To the extent the fund enters into bilaterally negotiated swap transactions, the fund will enter into swap agreements only with counterparties that meet certain credit standards and subject to agreed collateralized procedures. The term of a swap can be days, months or years and certain swaps may be less liquid than others.
34 | American Funds Global Balanced Fund |
Upon entering into a centrally cleared swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.
On a daily basis, interest accruals related to the exchange of future payments are recorded as a receivable and payable in the fund’s statement of assets and liabilities for centrally cleared swaps and as unrealized appreciation or depreciation in the fund’s statement of assets and liabilities for bilateral swaps. For centrally cleared swaps, the fund also pays or receives a variation margin based on the increase or decrease in the value of the swaps, including accrued interest as applicable, and records variation margin in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from swaps are recorded in the fund’s statement of operations.
Swap agreements can take different forms. The fund has entered into the following types of swap agreements:
Interest rate swaps — The fund has entered into interest rate swaps, which seek to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. An interest rate swap is an agreement between two parties to exchange or swap payments based on changes in an interest rate or rates. Typically, one interest rate is fixed and the other is variable based on a designated short-term interest rate such as the Secured Overnight Financing Rate (SOFR), prime rate or other benchmark, or on an inflation index such as the U.S. Consumer Price Index (which is a measure that examines the weighted average of prices of a basket of consumer goods and services and measures changes in the purchasing power of the U.S. dollar and the rate of inflation). In other types of interest rate swaps, known as basis swaps, the parties agree to swap variable interest rates based on different designated short-term interest rates. Interest rate swaps generally do not involve the delivery of securities or other principal amounts. Rather, cash payments are exchanged by the parties based on the application of the designated interest rates to a notional amount, which is the predetermined dollar principal of the trade upon which payment obligations are computed. Accordingly, the fund’s current obligation or right under the swap agreement is generally equal to the net amount to be paid or received under the swap agreement based on the relative value of the position held by each party. The average month-end notional amount of interest rate swaps while held was $2,211,368,000.
Credit default swap indices — The fund has entered into centrally cleared credit default swap indices, including CDX and iTraxx indices (collectively referred to as “CDSIs”), in order to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks. A CDSI is based on a portfolio of credit default swaps with similar characteristics, such as credit default swaps on high-yield bonds. In a typical CDSI transaction, one party (the protection buyer) is obligated to pay the other party (the protection seller) a stream of periodic payments over the term of the contract. If a credit event, such as a default or restructuring, occurs with respect to any of the underlying reference obligations, the protection seller must pay the protection buyer the loss on those credits.
The fund may enter into a CDSI transaction as either protection buyer or protection seller. If the fund is a protection buyer, it would pay the counterparty a periodic stream of payments over the term of the contract and would not recover any of those payments if no credit events were to occur with respect to any of the underlying reference obligations. However, if a credit event did occur, the fund, as a protection buyer, would have the right to deliver the referenced debt obligations or a specified amount of cash, depending on the terms of the applicable agreement, and to receive the par value of such debt obligations from the counterparty protection seller. As a protection seller, the fund would receive fixed payments throughout the term of the contract if no credit events were to occur with respect to any of the underlying reference obligations. If a credit event were to occur, however, the value of any deliverable obligation received by the fund, coupled with the periodic payments previously received by the fund, may be less than the full notional value that the fund, as a protection seller, pays to the counterparty protection buyer, effectively resulting in a loss of value to the fund. Furthermore, as a protection seller, the fund would effectively add leverage to its portfolio because it would have investment exposure to the notional amount of the swap transaction. As of October 31, 2022, the fund did not have any credit default swaps. The average month-end notional amount of credit default swaps while held was $331,790,000.
American Funds Global Balanced Fund | 35 |
The following tables identify the location and fair value amounts on the fund’s statement of assets and liabilities and the effect on the fund’s statement of operations resulting from the fund’s use of futures contracts, forward currency contracts, interest rate swaps and credit default swaps as of, or for the year ended, October 31, 2022 (dollars in thousands):
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation* | $ | 12,373 | Unrealized depreciation* | $ | 25,979 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 7,444 | Unrealized depreciation on open forward currency contracts | 33,934 | |||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | 259 | Payables for closed forward currency contracts | 72 | |||||||||
Swap (centrally cleared) | Interest | Unrealized appreciation* | — | Unrealized depreciation* | 70,053 | |||||||||
$ | 20,076 | $ | 130,038 | |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 2,773 | Net unrealized depreciation on futures contracts | $ | (18,073 | ) | ||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (174,647 | ) | Net unrealized depreciation on forward currency contracts | (27,280 | ) | |||||||
Swap | Interest | Net realized gain on swap contracts | 22,802 | Net unrealized depreciation on swap contracts | (51,409 | ) | ||||||||
Swap | Credit | Net realized gain on swap contracts | 892 | Net unrealized appreciation on swap contracts | 11 | |||||||||
$ | (148,180 | ) | $ | (96,751 | ) |
* | Includes cumulative appreciation/depreciation on futures contracts, centrally cleared interest rate swaps and centrally cleared credit default swaps as reported in the applicable tables following the fund’s investment portfolio. Only current day’s variation margin is reported within the fund’s statement of assets and liabilities. |
Collateral — The fund receives or pledges highly liquid assets, such as cash or U.S. government securities, as collateral due to securities lending and its use of futures contracts, forward currency contracts, interest rate swaps, credit default swaps and future delivery contracts. For securities lending, the fund receives collateral in exchange for lending investment securities. The lending agent may reinvest cash collateral from securities lending transactions according to agreed parameters. Cash collateral reinvested by the lending agent, if any, is disclosed in the fund’s investment portfolio. For futures contracts, centrally cleared interest rate swaps and centrally cleared credit default swaps, the fund pledges collateral for initial and variation margin by contract. For forward currency contracts, the fund either receives or pledges collateral based on the net gain or loss on unsettled contracts by counterparty. For future delivery contracts, the fund either receives or pledges collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by the fund, if any, is disclosed in the fund’s investment portfolio, and cash collateral pledged by the fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash collateral in the fund’s statement of assets and liabilities.
Rights of offset — The fund has entered into enforceable master netting agreements with certain counterparties for forward currency contracts, where on any date amounts payable by each party to the other (in the same currency with respect to the same transaction) may be closed or offset by each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statement of assets and liabilities.
36 | American Funds Global Balanced Fund |
The following table presents the fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the fund’s statement of assets and liabilities. The net amount column shows the impact of offsetting on the fund’s statement of assets and liabilities as of October 31, 2022, if close-out netting was exercised (dollars in thousands):
Gross amounts recognized in the statement of assets and liabilities | Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | |||||||||||||||||||
Counterparty | Available to offset | Non-cash collateral* | Cash collateral* | Net amount | ||||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America | $ | 30 | $ | (30 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 10 | (5 | ) | — | — | 5 | ||||||||||||||
Citibank | 1,925 | (1,925 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 5 | (5 | ) | — | — | — | ||||||||||||||
HSBC Bank | 194 | (107 | ) | (87 | ) | — | — | |||||||||||||
JPMorgan Chase | 4,312 | (4,312 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 105 | (105 | ) | — | — | — | ||||||||||||||
Standard Chartered Bank | 749 | (211 | ) | — | (538 | ) | — | |||||||||||||
UBS AG | 373 | (373 | ) | — | — | — | ||||||||||||||
Total | $ | 7,703 | $ | (7,073 | ) | $ | (87 | ) | $ | (538 | ) | $ | 5 | |||||||
Liabilities: | ||||||||||||||||||||
Bank of America | $ | 9,683 | $ | (30 | ) | $ | (8,136 | ) | $ | — | $ | 1,517 | ||||||||
Bank of New York Mellon | 5 | (5 | ) | — | — | — | ||||||||||||||
BNP Paribas | 6,746 | — | (6,279 | ) | — | 467 | ||||||||||||||
Citibank | 3,535 | (1,925 | ) | — | — | 1,610 | ||||||||||||||
Goldman Sachs | 1,290 | (5 | ) | (1,013 | ) | — | 272 | |||||||||||||
HSBC Bank | 107 | (107 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 7,094 | (4,312 | ) | — | — | 2,782 | ||||||||||||||
Morgan Stanley | 4,224 | (105 | ) | (2,861 | ) | — | 1,258 | |||||||||||||
Standard Chartered Bank | 211 | (211 | ) | — | — | — | ||||||||||||||
UBS AG | 1,111 | (373 | ) | (738 | ) | — | — | |||||||||||||
Total | $ | 34,006 | $ | (7,073 | ) | $ | (19,027 | ) | $ | — | $ | 7,906 |
* | Collateral is shown on a settlement basis. |
6. Taxation and distributions
Federal income taxation — The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the year ended October 31, 2022, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the year, the fund did not incur any significant interest or penalties.
The fund’s tax returns are generally not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is typically three years after the date of filing but can be extended in certain jurisdictions.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the fund filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. During the year ended October 31, 2022, the fund recognized $4,360,000 in reclaims (net of $1,595,000 in fees and the effect of realized gain or loss from currency translations) and $702,000 in interest related to European court rulings, which is included in dividend income and interest income, respectively, in the fund’s statement of operations. Gains realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the fund records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
American Funds Global Balanced Fund | 37 |
Distributions — Distributions determined on a tax basis may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; deferred expenses; cost of investments sold; net capital losses; non-U.S. taxes on capital gains; amortization of premiums and discounts and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
During the year ended October 31, 2022, the fund reclassified $23,000 from total accumulated loss to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.
As of October 31, 2022, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):
Undistributed ordinary income | $ | 17,618 | ||
Capital loss carryforward* | (544,550 | ) | ||
Gross unrealized appreciation on investments | 2,906,353 | |||
Gross unrealized depreciation on investments | (2,556,232 | ) | ||
Net unrealized appreciation on investments | 350,121 | |||
Cost of investments | 22,187,294 |
* | The capital loss carryforward will be used to offset any capital gains realized by the fund in future years. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
Distributions paid were characterized for tax purposes as follows (dollars in thousands):
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class A | $ | 93,422 | $ | 262,297 | $ | 355,719 | $ | 97,554 | $ | — | $ | 97,554 | ||||||||||||
Class C | 3,210 | 16,787 | 19,997 | 3,632 | — | 3,632 | ||||||||||||||||||
Class T | — | † | 1 | 1 | — | † | — | — | † | |||||||||||||||
Class F-1 | 2,113 | 6,234 | 8,347 | 2,492 | — | 2,492 | ||||||||||||||||||
Class F-2 | 56,351 | 131,384 | 187,735 | 50,448 | — | 50,448 | ||||||||||||||||||
Class F-3 | 17,543 | 40,162 | 57,705 | 16,666 | — | 16,666 | ||||||||||||||||||
Class 529-A | 5,118 | 14,365 | 19,483 | 5,243 | — | 5,243 | ||||||||||||||||||
Class 529-C | 227 | 1,248 | 1,475 | 275 | — | 275 | ||||||||||||||||||
Class 529-E | 181 | 597 | 778 | 191 | — | 191 | ||||||||||||||||||
Class 529-T | — | † | 1 | 1 | — | † | — | — | † | |||||||||||||||
Class 529-F-1 | — | † | — | † | — | † | — | † | — | — | † | |||||||||||||
Class 529-F-2 | 794 | 1,869 | 2,663 | 816 | — | 816 | ||||||||||||||||||
Class 529-F-3 | — | † | — | † | — | † | — | † | — | — | † | |||||||||||||
Class R-1 | 38 | 182 | 220 | 46 | — | 46 | ||||||||||||||||||
Class R-2 | 441 | 2,077 | 2,518 | 430 | — | 430 | ||||||||||||||||||
Class R-2E | 40 | 145 | 185 | 36 | — | 36 | ||||||||||||||||||
Class R-3 | 748 | 2,570 | 3,318 | 816 | — | 816 | ||||||||||||||||||
Class R-4 | 698 | 1,938 | 2,636 | 787 | — | 787 | ||||||||||||||||||
Class R-5E | 123 | 303 | 426 | 105 | — | 105 | ||||||||||||||||||
Class R-5 | 448 | 1,142 | 1,590 | 510 | — | 510 | ||||||||||||||||||
Class R-6 | 272,729 | 610,263 | 882,992 | 261,543 | — | 261,543 | ||||||||||||||||||
Total | $ | 454,224 | $ | 1,093,565 | $ | 1,547,789 | $ | 441,590 | $ | — | $ | 441,590 |
† | Amount less than one thousand. |
7. Fees and transactions with related parties
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors®, Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.
38 | American Funds Global Balanced Fund |
Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. At the beginning of the year, these fees were based on a series of decreasing annual rates beginning with 0.660% on the first $500 million of daily net assets and decreasing to 0.417% on such assets in excess of $17 billion. On March 8, 2022, the fund’s board of trustees approved an amended investment advisory and service agreement effective May 1, 2022, decreasing the annual rate to 0.414% on daily net assets in excess of $27.5 billion. For the year ended October 31, 2022, the investment advisory services fees were $106,641,000, which were equivalent to an annualized rate of 0.435% of average daily net assets.
Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are further described below:
Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, 529-F-2, 529-F-3, R-5E, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted in this section. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
Share class | Currently approved limits | Plan limits | ||||||
Class A | 0.30 | % | 0.30 | % | ||||
Class 529-A | 0.30 | 0.50 | ||||||
Classes C, 529-C and R-1 | 1.00 | 1.00 | ||||||
Class R-2 | 0.75 | 1.00 | ||||||
Class R-2E | 0.60 | 0.85 | ||||||
Classes 529-E and R-3 | 0.50 | 0.75 | ||||||
Classes T, F-1, 529-T, 529-F-1 and R-4 | 0.25 | 0.50 |
For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limits are not exceeded. As of October 31, 2022, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to all share classes. Administrative services are provided by CRMC and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in-depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides the fund the ability to charge an administrative services fee at the annual rate of 0.05% of the average daily net assets attributable to each share class of the fund. Currently the fund pays CRMC an administrative services fee at the annual rate of 0.03% of the average daily net assets attributable to each share class of the fund for CRMC’s provision of administrative services.
529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the CollegeAmerica 529 college savings plan. The fees are based on the combined net assets invested in Class 529 and ABLE shares of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica®, a tax-advantaged savings program for individuals with disabilities. Virginia529 is not considered a related party to the fund.
American Funds Global Balanced Fund | 39 |
Prior to January 1, 2022, the quarterly fees were based on a series of decreasing annual rates beginning with 0.09% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. Effective January 1, 2022, the quarterly fees were amended to a series of decreasing annual rates beginning with 0.09% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $75 billion. The fees for any given calendar quarter are accrued and calculated on the basis of the average net assets of Class 529 and ABLE shares of the American Funds for the last month of the prior calendar quarter. For the year ended October 31, 2022, the 529 plan services fees were $229,000, which were equivalent to 0.058% of the average daily net assets of each 529 share class.
For the year ended October 31, 2022, class-specific expenses under the agreements were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | ||||||||||||
Class A | $14,620 | $4,664 | $1,712 | Not applicable | ||||||||||||
Class C | 3,416 | 282 | 103 | Not applicable | ||||||||||||
Class T | — | — | * | — | * | Not applicable | ||||||||||
Class F-1 | 327 | 174 | 39 | Not applicable | ||||||||||||
Class F-2 | Not applicable | 3,283 | 902 | Not applicable | ||||||||||||
Class F-3 | Not applicable | 2 | 266 | Not applicable | ||||||||||||
Class 529-A | 734 | 231 | 95 | $183 | ||||||||||||
Class 529-C | 248 | 19 | 7 | 14 | ||||||||||||
Class 529-E | 65 | 5 | 4 | 8 | ||||||||||||
Class 529-T | — | — | * | — | * | — | * | |||||||||
Class 529-F-1 | — | — | * | — | * | — | * | |||||||||
Class 529-F-2 | Not applicable | 17 | 13 | 24 | ||||||||||||
Class 529-F-3 | Not applicable | — | — | * | — | * | ||||||||||
Class R-1 | 41 | 2 | 1 | Not applicable | ||||||||||||
Class R-2 | 341 | 146 | 14 | Not applicable | ||||||||||||
Class R-2E | 21 | 7 | 1 | Not applicable | ||||||||||||
Class R-3 | 279 | 75 | 17 | Not applicable | ||||||||||||
Class R-4 | 108 | 37 | 13 | Not applicable | ||||||||||||
Class R-5E | Not applicable | 10 | 2 | Not applicable | ||||||||||||
Class R-5 | Not applicable | 11 | 7 | Not applicable | ||||||||||||
Class R-6 | Not applicable | 25 | 4,157 | Not applicable | ||||||||||||
Total class-specific expenses | $20,200 | $8,990 | $7,353 | $229 |
* | Amount less than one thousand. |
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $(119,000) in the fund’s statement of operations reflects $128,000 in current fees (either paid in cash or deferred) and a net decrease of $247,000 in the value of the deferred amounts.
Affiliated officers and trustees — Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.
Investments in CCBF and CCF — The fund holds shares of CCBF, a corporate bond fund, and CCF, an institutional prime money market fund, which are both managed by CRMC. CCBF seeks to provide maximum total return consistent with capital preservation and prudent risk management by investing primarily in corporate debt instruments. CCBF is used as an investment vehicle for the fund’s corporate bond investments. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for the fund’s short-term instruments. Both CCBF and CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC or its affiliates, and are not available to the public. CRMC does not receive an investment advisory services fee from either CCBF or CCF.
Security transactions with related funds — The fund purchased investment securities from, and sold investment securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. Each transaction was executed at the current market price of the security and no brokerage commissions or fees were paid in accordance with Rule 17a-7 of the 1940 Act. During the year ended October 31, 2022, the fund engaged in such purchase and sale transactions with related funds in the amounts of $164,047,000 and $180,220,000, respectively, which generated $11,523,000 of net realized gains from such sales.
40 | American Funds Global Balanced Fund |
Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the year ended October 31, 2022.
8. Indemnifications
The fund’s organizational documents provide board members and officers with indemnification against certain liabilities or expenses in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown since it is dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote. Insurance policies are also available to the fund’s board members and officers.
9. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Sales* | Reinvestments of distributions | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended October 31, 2022 | ||||||||||||||||||||||||||||||||
Class A | $ | 419,398 | 11,798 | $ | 351,396 | 9,514 | $ | (808,397 | ) | (23,596 | ) | $ | (37,603 | ) | (2,284 | ) | ||||||||||||||||
Class C | 31,610 | 886 | 19,902 | 534 | (112,512 | ) | (3,245 | ) | (61,000 | ) | (1,825 | ) | ||||||||||||||||||||
Class T | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class F-1 | 14,200 | 392 | 8,246 | 223 | (33,275 | ) | (958 | ) | (10,829 | ) | (343 | ) | ||||||||||||||||||||
Class F-2 | 886,512 | 25,243 | 180,191 | 4,901 | (657,475 | ) | (19,269 | ) | 409,228 | 10,875 | ||||||||||||||||||||||
Class F-3 | 191,492 | 5,435 | 55,901 | 1,522 | (204,226 | ) | (5,990 | ) | 43,167 | 967 | ||||||||||||||||||||||
Class 529-A | 34,401 | 970 | 19,477 | 527 | (46,060 | ) | (1,328 | ) | 7,818 | 169 | ||||||||||||||||||||||
Class 529-C | 3,899 | 111 | 1,468 | 39 | (11,064 | ) | (316 | ) | (5,697 | ) | (166 | ) | ||||||||||||||||||||
Class 529-E | 1,494 | 41 | 777 | 21 | (2,366 | ) | (67 | ) | (95 | ) | (5 | ) | ||||||||||||||||||||
Class 529-T | — | — | 1 | — | † | — | — | 1 | — | † | ||||||||||||||||||||||
Class 529-F-1 | — | — | 1 | — | † | — | — | 1 | — | † | ||||||||||||||||||||||
Class 529-F-2 | 8,926 | 251 | 2,663 | 73 | (8,298 | ) | (236 | ) | 3,291 | 88 | ||||||||||||||||||||||
Class 529-F-3 | — | — | 1 | — | † | — | — | 1 | — | † | ||||||||||||||||||||||
Class R-1 | 368 | 11 | 220 | 6 | (1,552 | ) | (43 | ) | (964 | ) | (26 | ) | ||||||||||||||||||||
Class R-2 | 10,110 | 287 | 2,504 | 67 | (11,652 | ) | (333 | ) | 962 | 21 | ||||||||||||||||||||||
Class R-2E | 831 | 23 | 185 | 5 | (245 | ) | (7 | ) | 771 | 21 | ||||||||||||||||||||||
Class R-3 | 10,876 | 305 | 3,313 | 90 | (13,666 | ) | (388 | ) | 523 | 7 | ||||||||||||||||||||||
Class R-4 | 8,203 | 231 | 2,636 | 71 | (11,074 | ) | (304 | ) | (235 | ) | (2 | ) | ||||||||||||||||||||
Class R-5E | 1,395 | 41 | 426 | 12 | (1,358 | ) | (39 | ) | 463 | 14 | ||||||||||||||||||||||
Class R-5 | 5,591 | 160 | 1,573 | 43 | (8,634 | ) | (242 | ) | (1,470 | ) | (39 | ) | ||||||||||||||||||||
Class R-6 | 1,632,681 | 45,411 | 882,912 | 24,039 | (165,095 | ) | (4,737 | ) | 2,350,498 | 64,713 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 3,261,987 | 91,596 | $ | 1,533,793 | 41,687 | $ | (2,096,949 | ) | (61,098 | ) | $ | 2,698,831 | 72,185 |
Refer to the end of the table for footnotes.
American Funds Global Balanced Fund | 41 |
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended October 31, 2021 | ||||||||||||||||||||||||||||||||
Class A | $ | 657,803 | 17,079 | $ | 96,117 | 2,485 | $ | (652,057 | ) | (16,955 | ) | $ | 101,863 | 2,609 | ||||||||||||||||||
Class C | 58,409 | 1,523 | 3,608 | 94 | (120,290 | ) | (3,138 | ) | (58,273 | ) | (1,521 | ) | ||||||||||||||||||||
Class T | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class F-1 | 50,560 | 1,320 | 2,460 | 64 | (78,376 | ) | (2,036 | ) | (25,356 | ) | (652 | ) | ||||||||||||||||||||
Class F-2 | 1,004,641 | 26,086 | 48,385 | 1,249 | (469,060 | ) | (12,136 | ) | 583,966 | 15,199 | ||||||||||||||||||||||
Class F-3 | 274,533 | 7,148 | 16,099 | 416 | (139,663 | ) | (3,628 | ) | 150,969 | 3,936 | ||||||||||||||||||||||
Class 529-A | 46,330 | 1,208 | 5,242 | 136 | (45,149 | ) | (1,175 | ) | 6,423 | 169 | ||||||||||||||||||||||
Class 529-C | 7,689 | 204 | 274 | 7 | (14,533 | ) | (378 | ) | (6,570 | ) | (167 | ) | ||||||||||||||||||||
Class 529-E | 1,497 | 39 | 191 | 5 | (1,865 | ) | (49 | ) | (177 | ) | (5 | ) | ||||||||||||||||||||
Class 529-T | — | — | — | † | — | † | — | — | — | † | — | † | ||||||||||||||||||||
Class 529-F-1 | — | — | — | † | — | † | — | † | — | † | — | † | — | † | ||||||||||||||||||
Class 529-F-2 | 12,960 | 339 | 816 | 21 | (11,145 | ) | (287 | ) | 2,631 | 73 | ||||||||||||||||||||||
Class 529-F-3 | — | — | — | † | — | † | — | — | — | † | — | † | ||||||||||||||||||||
Class R-1 | 1,456 | 38 | 46 | 1 | (1,528 | ) | (40 | ) | (26 | ) | (1 | ) | ||||||||||||||||||||
Class R-2 | 12,944 | 337 | 428 | 11 | (12,810 | ) | (335 | ) | 562 | 13 | ||||||||||||||||||||||
Class R-2E | 1,008 | 26 | 36 | 1 | (571 | ) | (15 | ) | 473 | 12 | ||||||||||||||||||||||
Class R-3 | 9,888 | 257 | 814 | 21 | (16,913 | ) | (440 | ) | (6,211 | ) | (162 | ) | ||||||||||||||||||||
Class R-4 | 9,499 | 247 | 785 | 20 | (12,477 | ) | (322 | ) | (2,193 | ) | (55 | ) | ||||||||||||||||||||
Class R-5E | 4,226 | 110 | 105 | 3 | (2,186 | ) | (57 | ) | 2,145 | 56 | ||||||||||||||||||||||
Class R-5 | 9,386 | 242 | 502 | 13 | (8,534 | ) | (219 | ) | 1,354 | 36 | ||||||||||||||||||||||
Class R-6 | 2,435,502 | 63,539 | 261,521 | 6,760 | (1,956,339 | ) | (50,417 | ) | 740,684 | 19,882 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 4,598,331 | 119,742 | $ | 437,429 | 11,307 | $ | (3,543,496 | ) | (91,627 | ) | $ | 1,492,264 | 39,422 |
* | Includes exchanges between share classes of the fund. |
† | Amount less than one thousand. |
10. Investment transactions
The fund engaged in purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $13,265,923,000 and $11,990,881,000, respectively, during the year ended October 31, 2022.
42 | American Funds Global Balanced Fund |
Financial highlights
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended | Net asset value, beginning of year | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of year | Total return2,3 | Net assets, end of year (in millions) | Ratio of expenses to average net assets before reimbursement4 | Ratio of expenses to average net assets after reimbursement3,4 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | $ | 39.99 | $ | .59 | $ | (7.43 | ) | $ | (6.84 | ) | $ | (.58 | ) | $ | (1.64 | ) | $ | (2.22 | ) | $ | 30.93 | (17.99 | )% | $ | 4,881 | .81 | % | .81 | % | 1.68 | % | |||||||||||||||||||||
10/31/2021 | 33.54 | .62 | 6.45 | 7.07 | (.62 | ) | — | (.62 | ) | 39.99 | 21.16 | 6,402 | .82 | .82 | 1.61 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.93 | .59 | .50 | 1.09 | (.48 | ) | — | (.48 | ) | 33.54 | 3.36 | 5,282 | .83 | .83 | 1.76 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.44 | .71 | 2.43 | 3.14 | (.65 | ) | — | (.65 | ) | 32.93 | 10.40 | 5,422 | .83 | .83 | 2.24 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.48 | .70 | (1.58 | ) | (.88 | ) | (.68 | ) | (.48 | ) | (1.16 | ) | 30.44 | (2.85 | ) | 5,091 | .84 | .84 | 2.15 | |||||||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.91 | .32 | (7.41 | ) | (7.09 | ) | (.33 | ) | (1.64 | ) | (1.97 | ) | 30.85 | (18.60 | ) | 266 | 1.55 | 1.55 | .92 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.47 | .34 | 6.43 | 6.77 | (.33 | ) | — | (.33 | ) | 39.91 | 20.26 | 417 | 1.55 | 1.55 | .87 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.85 | .35 | .49 | .84 | (.22 | ) | — | (.22 | ) | 33.47 | 2.58 | 401 | 1.57 | 1.57 | 1.07 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.36 | .47 | 2.42 | 2.89 | (.40 | ) | — | (.40 | ) | 32.85 | 9.57 | 576 | 1.59 | 1.59 | 1.48 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.39 | .45 | (1.56 | ) | (1.11 | ) | (.44 | ) | (.48 | ) | (.92 | ) | 30.36 | (3.58 | ) | 606 | 1.61 | 1.61 | 1.39 | |||||||||||||||||||||||||||||||||
Class T: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.93 | .68 | (7.43 | ) | (6.75 | ) | (.67 | ) | (1.64 | ) | (2.31 | ) | 30.87 | (17.73 | )5 | — | 6 | .54 | 5 | .54 | 5 | 1.96 | 5 | |||||||||||||||||||||||||||||
10/31/2021 | 33.49 | .71 | 6.44 | 7.15 | (.71 | ) | — | (.71 | ) | 39.93 | 21.44 | 5 | — | 6 | .56 | 5 | .56 | 5 | 1.85 | 5 | ||||||||||||||||||||||||||||||||
10/31/2020 | 32.91 | .65 | .49 | 1.14 | (.56 | ) | — | (.56 | ) | 33.49 | 3.55 | 5 | — | 6 | .58 | 5 | .58 | 5 | 1.97 | 5 | ||||||||||||||||||||||||||||||||
10/31/2019 | 30.43 | .78 | 2.43 | 3.21 | (.73 | ) | — | (.73 | ) | 32.91 | 10.65 | 5 | — | 6 | .58 | 5 | .58 | 5 | 2.45 | 5 | ||||||||||||||||||||||||||||||||
10/31/2018 | 32.48 | .76 | (1.57 | ) | (.81 | ) | (.76 | ) | (.48 | ) | (1.24 | ) | 30.43 | (2.67 | )5 | — | 6 | .62 | 5 | .62 | 5 | 2.34 | 5 | |||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 40.01 | .57 | (7.43 | ) | (6.86 | ) | (.56 | ) | (1.64 | ) | (2.20 | ) | 30.95 | (18.02 | ) | 108 | .85 | .85 | 1.64 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.55 | .61 | 6.45 | 7.06 | (.60 | ) | — | (.60 | ) | 40.01 | 21.11 | 153 | .85 | .85 | 1.58 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.95 | .58 | .49 | 1.07 | (.47 | ) | — | (.47 | ) | 33.55 | 3.33 | 150 | .86 | .86 | 1.75 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.45 | .70 | 2.43 | 3.13 | (.63 | ) | — | (.63 | ) | 32.95 | 10.37 | 175 | .88 | .88 | 2.18 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.49 | .69 | (1.58 | ) | (.89 | ) | (.67 | ) | (.48 | ) | (1.15 | ) | 30.45 | (2.90 | ) | 158 | .89 | .89 | 2.12 | |||||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 40.01 | .67 | (7.44 | ) | (6.77 | ) | (.66 | ) | (1.64 | ) | (2.30 | ) | 30.94 | (17.78 | ) | 2,750 | .58 | .58 | 1.93 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.55 | .72 | 6.45 | 7.17 | (.71 | ) | — | (.71 | ) | 40.01 | 21.45 | 3,121 | .58 | .58 | 1.86 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.95 | .67 | .49 | 1.16 | (.56 | ) | — | (.56 | ) | 33.55 | 3.59 | 2,107 | .59 | .59 | 2.01 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.46 | .78 | 2.43 | 3.21 | (.72 | ) | — | (.72 | ) | 32.95 | 10.63 | 2,137 | .61 | .61 | 2.44 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.50 | .77 | (1.57 | ) | (.80 | ) | (.76 | ) | (.48 | ) | (1.24 | ) | 30.46 | (2.63 | ) | 1,602 | .62 | .62 | 2.38 | |||||||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.99 | .71 | (7.44 | ) | (6.73 | ) | (.70 | ) | (1.64 | ) | (2.34 | ) | 30.92 | (17.70 | ) | 772 | .48 | .48 | 2.02 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.53 | .76 | 6.44 | 7.20 | (.74 | ) | — | (.74 | ) | 39.99 | 21.58 | 960 | .48 | .48 | 1.96 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.93 | .70 | .49 | 1.19 | (.59 | ) | — | (.59 | ) | 33.53 | 3.71 | 673 | .49 | .49 | 2.11 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.44 | .81 | 2.43 | 3.24 | (.75 | ) | — | (.75 | ) | 32.93 | 10.75 | 647 | .51 | .51 | 2.54 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.48 | .80 | (1.57 | ) | (.77 | ) | (.79 | ) | (.48 | ) | (1.27 | ) | 30.44 | (2.54 | ) | 421 | .52 | .52 | 2.48 | |||||||||||||||||||||||||||||||||
Class 529-A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.97 | .58 | (7.44 | ) | (6.86 | ) | (.57 | ) | (1.64 | ) | (2.21 | ) | 30.90 | (17.99 | ) | 275 | .84 | .84 | 1.66 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.52 | .61 | 6.44 | 7.05 | (.60 | ) | — | (.60 | ) | 39.97 | 21.12 | 349 | .85 | .85 | 1.59 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.91 | .57 | .51 | 1.08 | (.47 | ) | — | (.47 | ) | 33.52 | 3.34 | 287 | .86 | .86 | 1.72 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.42 | .69 | 2.43 | 3.12 | (.63 | ) | — | (.63 | ) | 32.91 | 10.34 | 266 | .88 | .88 | 2.19 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.47 | .68 | (1.58 | ) | (.90 | ) | (.67 | ) | (.48 | ) | (1.15 | ) | 30.42 | (2.93 | ) | 253 | .89 | .89 | 2.11 |
Refer to the end of the table for footnotes.
American Funds Global Balanced Fund | 43 |
Financial highlights (continued)
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended | Net asset value, beginning of year | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of year | Total return2,3 | Net assets, end of year (in millions) | Ratio of expenses to average net assets before reimbursement4 | Ratio of expenses to average net assets after reimbursement3,4 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||||||||
Class 529-C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | $ | 39.85 | $ | .30 | $ | (7.40 | ) | $ | (7.10 | ) | $ | (.31 | ) | $ | (1.64 | ) | $ | (1.95 | ) | $ | 30.80 | (18.62 | )% | $ | 19 | 1.60 | % | 1.60 | % | .87 | % | |||||||||||||||||||||
10/31/2021 | 33.42 | .32 | 6.42 | 6.74 | (.31 | ) | — | (.31 | ) | 39.85 | 20.24 | 31 | 1.59 | 1.59 | .83 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.79 | .36 | .47 | .83 | (.20 | ) | — | (.20 | ) | 33.42 | 2.54 | 32 | 1.62 | 1.62 | 1.08 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.31 | .45 | 2.41 | 2.86 | (.38 | ) | — | (.38 | ) | 32.79 | 9.50 | 72 | 1.64 | 1.64 | 1.43 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.34 | .43 | (1.57 | ) | (1.14 | ) | (.41 | ) | (.48 | ) | (.89 | ) | 30.31 | (3.66 | ) | 75 | 1.66 | 1.66 | 1.33 | |||||||||||||||||||||||||||||||||
Class 529-E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.93 | .50 | (7.42 | ) | (6.92 | ) | (.49 | ) | (1.64 | ) | (2.13 | ) | 30.88 | (18.18 | ) | 11 | 1.07 | 1.07 | 1.43 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.49 | .53 | 6.43 | 6.96 | (.52 | ) | — | (.52 | ) | 39.93 | 20.85 | 15 | 1.07 | 1.07 | 1.37 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.88 | .51 | .50 | 1.01 | (.40 | ) | — | (.40 | ) | 33.49 | 3.11 | 12 | 1.08 | 1.08 | 1.52 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.39 | .63 | 2.42 | 3.05 | (.56 | ) | — | (.56 | ) | 32.88 | 10.11 | 13 | 1.10 | 1.10 | 1.97 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.43 | .61 | (1.57 | ) | (.96 | ) | (.60 | ) | (.48 | ) | (1.08 | ) | 30.39 | (3.13 | ) | 14 | 1.12 | 1.12 | 1.88 | |||||||||||||||||||||||||||||||||
Class 529-T: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.93 | .66 | (7.42 | ) | (6.76 | ) | (.66 | ) | (1.64 | ) | (2.30 | ) | 30.87 | (17.79 | )5 | — | 6 | .59 | 5 | .59 | 5 | 1.89 | 5 | |||||||||||||||||||||||||||||
10/31/2021 | 33.49 | .70 | 6.43 | 7.13 | (.69 | ) | — | (.69 | ) | 39.93 | 21.42 | 5 | — | 6 | .61 | 5 | .61 | 5 | 1.80 | 5 | ||||||||||||||||||||||||||||||||
10/31/2020 | 32.91 | .64 | .49 | 1.13 | (.55 | ) | — | (.55 | ) | 33.49 | 3.50 | 5 | — | 6 | .63 | 5 | .63 | 5 | 1.92 | 5 | ||||||||||||||||||||||||||||||||
10/31/2019 | 30.43 | .75 | 2.44 | 3.19 | (.71 | ) | — | (.71 | ) | 32.91 | 10.57 | 5 | — | 6 | .64 | 5 | .64 | 5 | 2.37 | 5 | ||||||||||||||||||||||||||||||||
10/31/2018 | 32.48 | .75 | (1.57 | ) | (.82 | ) | (.75 | ) | (.48 | ) | (1.23 | ) | 30.43 | (2.71 | )5 | — | 6 | .65 | 5 | .65 | 5 | 2.31 | 5 | |||||||||||||||||||||||||||||
Class 529-F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.98 | .64 | (7.43 | ) | (6.79 | ) | (.63 | ) | (1.64 | ) | (2.27 | ) | 30.92 | (17.87 | )5 | — | 6 | .67 | 5 | .67 | 5 | 1.83 | 5 | |||||||||||||||||||||||||||||
10/31/2021 | 33.53 | .69 | 6.45 | 7.14 | (.69 | ) | — | (.69 | ) | 39.98 | 21.40 | 5 | — | 6 | .65 | 5 | .65 | 5 | 1.80 | 5 | ||||||||||||||||||||||||||||||||
10/31/2020 | 32.93 | .65 | .50 | 1.15 | (.55 | ) | — | (.55 | ) | 33.53 | 3.56 | 5 | — | 6 | .63 | 5 | .63 | 5 | 1.96 | 5 | ||||||||||||||||||||||||||||||||
10/31/2019 | 30.44 | .77 | 2.42 | 3.19 | (.70 | ) | — | (.70 | ) | 32.93 | 10.60 | 35 | .65 | .65 | 2.42 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.48 | .75 | (1.56 | ) | (.81 | ) | (.75 | ) | (.48 | ) | (1.23 | ) | 30.44 | (2.67 | ) | 32 | .66 | .66 | 2.33 | |||||||||||||||||||||||||||||||||
Class 529-F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.99 | .67 | (7.44 | ) | (6.77 | ) | (.66 | ) | (1.64 | ) | (2.30 | ) | 30.92 | (17.78 | ) | 38 | .57 | .57 | 1.93 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.54 | .71 | 6.44 | 7.15 | (.70 | ) | — | (.70 | ) | 39.99 | 21.43 | 46 | .60 | .60 | 1.84 | |||||||||||||||||||||||||||||||||||||
10/31/20207,8 | 33.54 | — | — | — | — | — | — | 33.54 | — | 36 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Class 529-F-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 40.00 | .69 | (7.45 | ) | (6.76 | ) | (.67 | ) | (1.64 | ) | (2.31 | ) | 30.93 | (17.75 | ) | — | 6 | .54 | .54 | 1.97 | ||||||||||||||||||||||||||||||||
10/31/2021 | 33.54 | .73 | 6.45 | 7.18 | (.72 | ) | — | (.72 | ) | 40.00 | 21.50 | — | 6 | .59 | .54 | 1.90 | ||||||||||||||||||||||||||||||||||||
10/31/20207,8 | 33.54 | — | — | — | — | — | — | 33.54 | — | — | 6 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Class R-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.92 | .34 | (7.42 | ) | (7.08 | ) | (.33 | ) | (1.64 | ) | (1.97 | ) | 30.87 | (18.58 | ) | 3 | 1.52 | 1.52 | .96 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.49 | .35 | 6.42 | 6.77 | (.34 | ) | — | (.34 | ) | 39.92 | 20.27 | 5 | 1.55 | 1.55 | .90 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.88 | .34 | .50 | .84 | (.23 | ) | — | (.23 | ) | 33.49 | 2.56 | 5 | 1.59 | 1.59 | 1.01 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.38 | .47 | 2.42 | 2.89 | (.39 | ) | — | (.39 | ) | 32.88 | 9.57 | 5 | 1.61 | 1.61 | 1.47 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.42 | .44 | (1.57 | ) | (1.13 | ) | (.43 | ) | (.48 | ) | (.91 | ) | 30.38 | (3.62 | ) | 5 | 1.62 | 1.62 | 1.37 |
Refer to the end of the table for footnotes.
44 | American Funds Global Balanced Fund |
Financial highlights (continued)
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended | Net asset value, beginning of year | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of year | Total return2,3 | Net assets, end of year (in millions) | Ratio of expenses to average net assets before reimbursement4 | Ratio of expenses to average net assets after reimbursement3,4 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||||||||
Class R-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | $ | 39.83 | $ | .33 | $ | (7.40 | ) | $ | (7.07 | ) | $ | (.34 | ) | $ | (1.64 | ) | $ | (1.98 | ) | $ | 30.78 | (18.58 | )% | $ | 40 | 1.55 | % | 1.55 | % | .96 | % | |||||||||||||||||||||
10/31/2021 | 33.41 | .34 | 6.42 | 6.76 | (.34 | ) | — | (.34 | ) | 39.83 | 20.26 | 51 | 1.56 | 1.56 | .88 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.80 | .34 | .50 | .84 | (.23 | ) | — | (.23 | ) | 33.41 | 2.61 | 42 | 1.58 | 1.58 | 1.02 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.33 | .47 | 2.41 | 2.88 | (.41 | ) | — | (.41 | ) | 32.80 | 9.54 | 46 | 1.59 | 1.59 | 1.47 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.37 | .45 | (1.57 | ) | (1.12 | ) | (.44 | ) | (.48 | ) | (.92 | ) | 30.33 | (3.57 | ) | 44 | 1.60 | 1.60 | 1.39 | |||||||||||||||||||||||||||||||||
Class R-2E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.89 | .43 | (7.43 | ) | (7.00 | ) | (.41 | ) | (1.64 | ) | (2.05 | ) | 30.84 | (18.38 | ) | 3 | 1.28 | 1.28 | 1.24 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.46 | .45 | 6.43 | 6.88 | (.45 | ) | — | (.45 | ) | 39.89 | 20.59 | 3 | 1.28 | 1.28 | 1.17 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.86 | .43 | .50 | .93 | (.33 | ) | — | (.33 | ) | 33.46 | 2.86 | 3 | 1.30 | 1.30 | 1.31 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.37 | .56 | 2.43 | 2.99 | (.50 | ) | — | (.50 | ) | 32.86 | 9.92 | 3 | 1.30 | 1.30 | 1.75 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.44 | .56 | (1.59 | ) | (1.03 | ) | (.56 | ) | (.48 | ) | (1.04 | ) | 30.37 | (3.34 | ) | 2 | 1.31 | 1.31 | 1.75 | |||||||||||||||||||||||||||||||||
Class R-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.92 | .48 | (7.42 | ) | (6.94 | ) | (.47 | ) | (1.64 | ) | (2.11 | ) | 30.87 | (18.21 | ) | 49 | 1.11 | 1.11 | 1.39 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.48 | .50 | 6.44 | 6.94 | (.50 | ) | — | (.50 | ) | 39.92 | 20.79 | 63 | 1.12 | 1.12 | 1.31 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.87 | .49 | .50 | .99 | (.38 | ) | — | (.38 | ) | 33.48 | 3.06 | 58 | 1.13 | 1.13 | 1.47 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.39 | .61 | 2.41 | 3.02 | (.54 | ) | — | (.54 | ) | 32.87 | 10.03 | 62 | 1.15 | 1.15 | 1.91 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.43 | .59 | (1.57 | ) | (.98 | ) | (.58 | ) | (.48 | ) | (1.06 | ) | 30.39 | (3.16 | ) | 57 | 1.16 | 1.16 | 1.83 | |||||||||||||||||||||||||||||||||
Class R-4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.99 | .59 | (7.44 | ) | (6.85 | ) | (.57 | ) | (1.64 | ) | (2.21 | ) | 30.93 | (17.97 | ) | 38 | .81 | .81 | 1.68 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.53 | .62 | 6.45 | 7.07 | (.61 | ) | — | (.61 | ) | 39.99 | 21.14 | 50 | .82 | .82 | 1.61 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.93 | .59 | .49 | 1.08 | (.48 | ) | — | (.48 | ) | 33.53 | 3.36 | 43 | .83 | .83 | 1.77 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.44 | .70 | 2.43 | 3.13 | (.64 | ) | — | (.64 | ) | 32.93 | 10.37 | 49 | .85 | .85 | 2.21 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.48 | .69 | (1.57 | ) | (.88 | ) | (.68 | ) | (.48 | ) | (1.16 | ) | 30.44 | (2.87 | ) | 42 | .86 | .86 | 2.14 | |||||||||||||||||||||||||||||||||
Class R-5E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 39.96 | .65 | (7.43 | ) | (6.78 | ) | (.64 | ) | (1.64 | ) | (2.28 | ) | 30.90 | (17.82 | ) | 6 | .63 | .63 | 1.86 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.51 | .70 | 6.44 | 7.14 | (.69 | ) | — | (.69 | ) | 39.96 | 21.39 | 8 | .63 | .63 | 1.80 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.92 | .65 | .48 | 1.13 | (.54 | ) | — | (.54 | ) | 33.51 | 3.55 | 4 | .64 | .64 | 1.95 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.43 | .76 | 2.44 | 3.20 | (.71 | ) | — | (.71 | ) | 32.92 | 10.58 | 3 | .65 | .65 | 2.38 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.48 | .73 | (1.54 | ) | (.81 | ) | (.76 | ) | (.48 | ) | (1.24 | ) | 30.43 | (2.66 | ) | 1 | .65 | .65 | 2.31 | |||||||||||||||||||||||||||||||||
Class R-5: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 40.05 | .69 | (7.45 | ) | (6.76 | ) | (.68 | ) | (1.64 | ) | (2.32 | ) | 30.97 | (17.74 | ) | 20 | .52 | .52 | 1.96 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.58 | .75 | 6.45 | 7.20 | (.73 | ) | — | (.73 | ) | 40.05 | 21.49 | 27 | .53 | .53 | 1.93 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.98 | .68 | .50 | 1.18 | (.58 | ) | — | (.58 | ) | 33.58 | 3.68 | 22 | .54 | .54 | 2.05 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.48 | .79 | 2.44 | 3.23 | (.73 | ) | — | (.73 | ) | 32.98 | 10.71 | 21 | .56 | .56 | 2.47 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.53 | .79 | (1.59 | ) | (.80 | ) | (.77 | ) | (.48 | ) | (1.25 | ) | 30.48 | (2.61 | ) | 22 | .57 | .57 | 2.43 | |||||||||||||||||||||||||||||||||
Class R-6: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10/31/2022 | 40.02 | .71 | (7.44 | ) | (6.73 | ) | (.70 | ) | (1.64 | ) | (2.34 | ) | 30.95 | (17.71 | ) | 13,034 | .48 | .48 | 2.03 | |||||||||||||||||||||||||||||||||
10/31/2021 | 33.56 | .76 | 6.44 | 7.20 | (.74 | ) | — | (.74 | ) | 40.02 | 21.59 | 14,265 | .48 | .48 | 1.96 | |||||||||||||||||||||||||||||||||||||
10/31/2020 | 32.96 | .70 | .49 | 1.19 | (.59 | ) | — | (.59 | ) | 33.56 | 3.71 | 11,295 | .49 | .49 | 2.11 | |||||||||||||||||||||||||||||||||||||
10/31/2019 | 30.47 | .81 | 2.43 | 3.24 | (.75 | ) | — | (.75 | ) | 32.96 | 10.74 | 10,683 | .50 | .50 | 2.55 | |||||||||||||||||||||||||||||||||||||
10/31/2018 | 32.51 | .80 | (1.57 | ) | (.77 | ) | (.79 | ) | (.48 | ) | (1.27 | ) | 30.47 | (2.53 | ) | 8,032 | .52 | .52 | 2.48 |
Refer to the end of the table for footnotes.
American Funds Global Balanced Fund | 45 |
Financial highlights (continued)
Year ended October 31, | ||||||||||||||||||||
Portfolio turnover rate for all share classes9,10 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||
Excluding mortgage dollar roll transactions | 43% | 56% | 65% | 44% | 45% | |||||||||||||||
Including mortgage dollar roll transactions | 61% | 69% | 83% | 60% | 59% |
1 | Based on average shares outstanding. |
2 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
3 | This column reflects the impact, if any, of certain reimbursements from CRMC. During one of the years shown, CRMC reimbursed a portion of transfer agent services fees for Class 529-F-3. |
4 | Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds. |
5 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
6 | Amount less than $1 million. |
7 | Based on operations for a period that is less than a full year. |
8 | Class 529-F-2 and 529-F-3 shares began investment operations on October 30, 2020. |
9 | Rates do not include the fund’s portfolio activity with respect to any Central Funds. |
10 | Refer to Note 5 for more information on mortgage dollar rolls. |
Refer to the notes to financial statements.
46 | American Funds Global Balanced Fund |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of American Funds Global Balanced Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of American Funds Global Balanced Fund (the “Fund”), including the investment portfolio, as of October 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Costa Mesa, California
December 8, 2022
We have served as the auditor of one or more American Funds investment companies since 1956.
American Funds Global Balanced Fund | 47 |
Expense example | unaudited |
As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (May 1, 2022, through October 31, 2022).
Actual expenses:
The first line of each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3, 529-F-1, 529-F-2 and 529-F-3 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following page are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
48 | American Funds Global Balanced Fund |
Expense example (continued)
Beginning account value 5/1/2022 | Ending account value 10/31/2022 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A – actual return | $ | 1,000.00 | $ | 918.40 | $ | 3.92 | .81 | % | ||||||||
Class A – assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | ||||||||||||
Class C – actual return | 1,000.00 | 914.86 | 7.53 | 1.56 | ||||||||||||
Class C – assumed 5% return | 1,000.00 | 1,017.34 | 7.93 | 1.56 | ||||||||||||
Class T – actual return | 1,000.00 | 919.88 | 2.61 | .54 | ||||||||||||
Class T – assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class F-1 – actual return | 1,000.00 | 918.44 | 4.16 | .86 | ||||||||||||
Class F-1 – assumed 5% return | 1,000.00 | 1,020.87 | 4.38 | .86 | ||||||||||||
Class F-2 – actual return | 1,000.00 | 919.57 | 2.85 | .59 | ||||||||||||
Class F-2 – assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class F-3 – actual return | 1,000.00 | 920.02 | 2.27 | .47 | ||||||||||||
Class F-3 – assumed 5% return | 1,000.00 | 1,022.84 | 2.40 | .47 | ||||||||||||
Class 529-A – actual return | 1,000.00 | 918.46 | 4.11 | .85 | ||||||||||||
Class 529-A – assumed 5% return | 1,000.00 | 1,020.92 | 4.33 | .85 | ||||||||||||
Class 529-C – actual return | 1,000.00 | 914.90 | 7.77 | 1.61 | ||||||||||||
Class 529-C – assumed 5% return | 1,000.00 | 1,017.09 | 8.19 | 1.61 | ||||||||||||
Class 529-E – actual return | 1,000.00 | 917.29 | 5.17 | 1.07 | ||||||||||||
Class 529-E – assumed 5% return | 1,000.00 | 1,019.81 | 5.45 | 1.07 | ||||||||||||
Class 529-T – actual return | 1,000.00 | 919.39 | 2.85 | .59 | ||||||||||||
Class 529-T – assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class 529-F-1 – actual return | 1,000.00 | 919.04 | 3.29 | .68 | ||||||||||||
Class 529-F-1 – assumed 5% return | 1,000.00 | 1,021.78 | 3.47 | .68 | ||||||||||||
Class 529-F-2 – actual return | 1,000.00 | 919.83 | 2.76 | .57 | ||||||||||||
Class 529-F-2 – assumed 5% return | 1,000.00 | 1,022.33 | 2.91 | .57 | ||||||||||||
Class 529-F-3 – actual return | 1,000.00 | 919.73 | 2.61 | .54 | ||||||||||||
Class 529-F-3 – assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class R-1 – actual return | 1,000.00 | 915.02 | 7.43 | 1.54 | ||||||||||||
Class R-1 – assumed 5% return | 1,000.00 | 1,017.44 | 7.83 | 1.54 | ||||||||||||
Class R-2 – actual return | 1,000.00 | 915.36 | 7.43 | 1.54 | ||||||||||||
Class R-2 – assumed 5% return | 1,000.00 | 1,017.44 | 7.83 | 1.54 | ||||||||||||
Class R-2E – actual return | 1,000.00 | 916.19 | 6.18 | 1.28 | ||||||||||||
Class R-2E – assumed 5% return | 1,000.00 | 1,018.75 | 6.51 | 1.28 | ||||||||||||
Class R-3 – actual return | 1,000.00 | 917.35 | 5.36 | 1.11 | ||||||||||||
Class R-3 – assumed 5% return | 1,000.00 | 1,019.61 | 5.65 | 1.11 | ||||||||||||
Class R-4 – actual return | 1,000.00 | 918.65 | 3.92 | .81 | ||||||||||||
Class R-4 – assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | ||||||||||||
Class R-5E – actual return | 1,000.00 | 919.21 | 3.05 | .63 | ||||||||||||
Class R-5E – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | ||||||||||||
Class R-5 – actual return | 1,000.00 | 919.62 | 2.52 | .52 | ||||||||||||
Class R-5 – assumed 5% return | 1,000.00 | 1,022.58 | 2.65 | .52 | ||||||||||||
Class R-6 – actual return | 1,000.00 | 920.08 | 2.27 | .47 | ||||||||||||
Class R-6 – assumed 5% return | 1,000.00 | 1,022.84 | 2.40 | .47 |
* | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period). |
American Funds Global Balanced Fund | 49 |
Tax information | unaudited |
We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended October 31, 2022:
Long-term capital gains | $1,092,288,000 |
Qualified dividend income | $383,473,000 |
Section 199A dividends | $4,988,000 |
Section 163(j) interest dividends | $175,028,000 |
Corporate dividends received deduction | $137,578,000 |
U.S. government income that may be exempt from state taxation | $51,238,000 |
Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2023, to determine the calendar year amounts to be included on their 2022 tax returns. Shareholders should consult their tax advisors.
50 | American Funds Global Balanced Fund |
Board of trustees and other officers
Independent trustees1
Name and year of birth | Year first elected a trustee of the fund2 | Principal occupation(s) during past five years | Number of portfolios in fund complex overseen by trustee3 | Other directorships4 held by trustee | ||||
Mary Anne Dolan, 1947 | 2010 | Founder and President, MAD Ink (communications company); former Editor-in-Chief, The Los Angeles Herald Examiner (retired 1989) | 10 | None | ||||
James G. Ellis, 1947 | 2010 | Former Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 96 | Advanced Merger Partners; EVe Mobility Acquisition Corp (acquisitions of companies in the electric vehicle market); J. G. Boswell (agricultural production); Mercury General Corporation | ||||
Pablo R. González Guajardo, 1967 Chair of the Board (Independent and Non-Executive) | 2015 | CEO, Kimberly-Clark de México, SAB de CV | 22 | América Móvil, SAB de CV (telecommunications company); Grupo Sanborns, SAB de CV (retail stores and restaurants); Kimberly-Clark de México, SAB de CV (consumer staples) | ||||
Merit E. Janow, 1958 | 2021 | Dean Emerita and Professor of Practice, International Economic Law & International Affairs, Columbia University, School of International and Public Affairs | 93 | Aptiv (autonomous and green vehicle technology); Mastercard Incorporated | ||||
William D. Jones, 1955 | 2010 | Real estate developer/owner, President and former CEO, CityLink Investment Corporation (acquires, develops and manages real estate ventures in urban communities) and for the former City Scene Management Company (provided commercial asset management services) | 23 | Biogen Inc. | ||||
John C. Mazziotta, MD, PhD, 1949 | 2011 | Physician; Professor of Neurology, University of California at Los Angeles; Vice Chancellor, UCLA Health Sciences; CEO, UCLA Health System | 4 | None | ||||
William R. McLaughlin, 1956 | 2015 | Advisor and former President and CEO, The Orvis Company (outdoor equipment retailer) | 4 | None | ||||
Kenneth M. Simril, 1965 | 2019 | President and CEO, SCI Ingredients Holdings, Inc. (food manufacturing) | 7 | Bunge Limited (agricultural business and food company) | ||||
Kathy J. Williams, 1955 | 2019 | Board Chair, Above and Beyond Teaching | 7 | None | ||||
Interested trustees5,6 | ||||||||
Name, year of birth and position with fund | Year first elected a trustee or officer of the fund2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund | Number of portfolios in fund complex overseen by trustee3 | Other directorships4 held by trustee | ||||
William L. Robbins, 1968 Trustee | 2019 | Partner — Capital International Investors, Capital Research and Management Company; Partner — Capital International Investors, Capital Bank and Trust Company6; Chair and Director, Capital Group International, Inc.6 | 13 | None | ||||
James Terrile, 1965 Trustee | 2019 | Partner — Capital Research Global Investors, Capital Research and Management Company | 4 | None |
The fund’s statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the Capital Group website at capitalgroup.com. The address for all trustees and officers of the fund is 6455 Irvine Center Drive, Irvine, CA 92618, Attention: Secretary.
See page 52 for footnotes.
American Funds Global Balanced Fund | 51 |
Other officers5
Name, year of birth and position with fund | Year first elected an officer of the fund2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund | ||
Alfonso Barroso, 1971 President | 2019 | Partner — Capital Research Global Investors, Capital Research Company6; Director, Capital Research and Management Company | ||
Herbert Y. Poon, 1973 Principal Executive Officer | 2012 | Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Chief Compliance Officer, Capital Research and Management Company; Chief Compliance Officer, Capital Research Company6 | ||
Michael W. Stockton, 1967 Executive Vice President | 2013-2016, 2019 | Senior Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Andrew A. Cormack, 1982 Senior Vice President | 2019 | Partner — Capital Fixed Income Investors, Capital Research Company6 | ||
Bradford F. Freer, 1969 Senior Vice President | 2020 | Partner — Capital Research Global Investors, Capital Research and Management Company | ||
Thomas H. Høgh, 1963 Senior Vice President | 2019 | Partner — Capital Fixed Income Investors, Capital Research Company6 | ||
Winnie Kwan, 1972 Senior Vice President | 2019 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
Julie E. Lawton, 1973 Secretary | 2021 | Assistant Vice President — Fund Business Management Group, Capital Research and Management Company; Secretary, Capital Research Company6 | ||
Hong T. Le, 1978 Treasurer | 2016 | Vice President — Investment Operations, Capital Research and Management Company | ||
Marilyn Paramo, 1982 Assistant Secretary | 2021 | Associate — Fund Business Management Group, Capital Research and Management Company | ||
Sandra Chuon, 1972 Assistant Treasurer | 2019 | Vice President — Investment Operations, Capital Research and Management Company | ||
Brian C. Janssen, 1972 Assistant Treasurer | 2016 | Senior Vice President — Investment Operations, Capital Research and Management Company |
1 | The term independent trustee refers to a trustee who is not an “interested person” of the fund within the meaning of the Investment Company Act of 1940. |
2 | Trustees and officers of the fund serve until their resignation, removal or retirement. |
3 | Funds managed by Capital Research and Management Company or its affiliates. |
4 | This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
5 | The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter). |
6 | All of the trustees and/or officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
7 | Company affiliated with Capital Research and Management Company. |
52 | American Funds Global Balanced Fund |
Office of the fund
6455 Irvine Center Drive
Irvine, CA 92618-4518
Investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address nearest you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
O’Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA 90071-2899
Independent registered public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1000
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on our website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on our website.
American Funds Global Balanced Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form NPORT-P. The list of portfolio holdings is available free of charge on the SEC website and on our website.
This report is for the information of shareholders of American Funds Global Balanced Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2022, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
American Funds Distributors, Inc., member of FINRA.
The Capital Advantage®
Since 1931, Capital Group, home of American Funds, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemTM — has resulted in superior outcomes.
Aligned with investor success
We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment industry experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1
The Capital System
The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.
American Funds’ superior outcomes
Equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 99% of 20-year periods.2 Fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.3 Fund management fees have been among the lowest in the industry.4
1 | Investment industry experience as of December 31, 2021. | |
2 | Based on Class F-2 share results for rolling calendar-year periods starting the first full calendar year after each fund’s inception through December 31, 2021. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. | |
3 | Based on Class F-2 share results as of December 31, 2021. Thirteen of the 17 fixed income American Funds that have been in existence for the three-year period showed a three-year correlation below 0.3. S&P 500 Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction. | |
4 | On average, our management fees were in the lowest quintile 63% of the time, based on the 20-year period ended December 31, 2021, versus comparable Lipper categories, excluding funds of funds. |
Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on the results of the original share class of the fund without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Visit capitalgroup.com for more information on specific expense adjustments and the actual dates of first sale.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
ITEM 2 – Code of Ethics
The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made by calling 800/421-4225 or to the Secretary of the Registrant, 6455 Irvine Center Drive, Irvine, California 92618.
ITEM 3 – Audit Committee Financial Expert
The Registrant’s board has determined that William R. McLaughlin, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.
ITEM 4 – Principal Accountant Fees and Services
GBAL | ||
Registrant: |
a) Audit Fees: | ||
Audit | 2021 | 105,000 |
2022 | 94,000 | |
b) Audit-Related Fees: | ||
2021 | 3,000 | |
2022 | 4,000 | |
c) Tax Fees: | ||
2021 | 15,000 | |
2022 | 19,000 | |
The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. | ||
d) All Other Fees: | ||
2021 | None | |
2022 | None | |
Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below): | ||
a) Audit Fees: | ||
Not Applicable | ||
b) Audit-Related Fees: | ||
2021 | 1,442,000 | |
2022 | 2,221,000 | |
The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 18 issued by the American Institute of Certified Public Accountants. | ||
c) Tax Fees: |
2021 | 1,000 | |
2022 | 394,000 | |
The tax fees consist of consulting services relating to the Registrant’s investments. | ||
d) All Other Fees: | ||
2021 | 2,000 | |
2022 | None | |
The other fees consist of subscription services related to an accounting research tool. | ||
All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates. | ||
Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $1,463,000 for fiscal year 2021 and $2,639,000 for fiscal year 2022. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence. |
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
Not applicable, insofar as the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 11 – Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
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ITEM 12 – Exhibits
(a)(1) | The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto. |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AMERICAN FUNDS GLOBAL BALANCED FUND | |
By __/s/ Herbert Y. Poon________________ | |
Herbert Y. Poon, Principal Executive Officer | |
Date: December 30, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By _ /s/ Herbert Y. Poon_____________ |
Herbert Y. Poon, Principal Executive Officer |
Date: December 30, 2022 |
By ___/s/ Hong T. Le__________________ |
Hong T. Le, Treasurer and Principal Financial Officer |
Date: December 30, 2022 |