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Form N-CSRS American Funds Multi-Sec For: Jun 30 #adessonews


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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: 811-23409

 

American Funds Multi-Sector Income 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: December 31

 

Date of reporting period: June 30, 2022

 

Brian C. Janssen

American Funds Multi-Sector Income Fund

6455 Irvine Center Drive

Irvine, California 92618

(Name and Address of Agent for Service)

 

ITEM 1 – Reports to Stockholders

 

 

American Funds Multi-Sector
Income FundSM

 

Semi-annual report
for the six months ended
June 30, 2022

 

 

Pursuing durable
and diversified
income

American Funds Multi-Sector Income Fund seeks to provide a high level of current income. Its secondary investment objective is capital appreciation.

 

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 shares. Class A share results are shown at net asset value unless otherwise indicated. If a sales charge (maximum 3.75%) had been deducted from Class A shares, 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 the periods ended June 30, 2022 (the most recent calendar quarter-end):

 

    1 year   Lifetime
(since 3/22/19)
         
Class F-2 shares     –11.80 %          2.18 %      
Class A shares (reflecting 3.75% maximum sales charge)     –15.35       0.82  

 

For other share class results, visit capitalgroup.com and americanfundsretirement.com.

 

The total annual fund operating expense ratios were 0.47% for Class F-2 shares and 0.73% for Class A shares as of the prospectus dated March 1, 2022 (as supplemented to date). The expense ratios are restated to reflect current fees.

 

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently reimbursing a portion of other expenses. This reimbursement will be in effect through at least May 1, 2023. After that time, the adviser may elect at its discretion to extend, modify or terminate the reimbursement. When applicable, investment 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 June 30, 2022, was 6.16% for Class F-2 shares and 5.65% for Class A shares calculated in accordance with the U.S. Securities and Exchange Commission formula. The Class A share results reflect the 3.75% maximum sales charge.

 

Investing outside the United States may be subject to risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. 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. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds. Refer to the fund prospectus and the Risk Factors section of this report for more information on 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.

Fellow investors

 

Results for American Funds Multi-Sector Income Fund for the periods ended June 30, 2022, are shown in the table below, as well as results for the fund’s benchmark and peer group.

 

For additional information about the fund, its investment results, holdings and portfolio managers, visit capitalgroup.com/individual/investments/fund/miayx. You can also access information about Capital Group’s American Funds and read our insights about the markets, retirement, saving for college, investing fundamentals and more at capitalgroup.com.

 

Contents

 

2 Investment portfolio
   
32 Financial statements
   
36 Notes to financial statements
   
51 Financial highlights

 

Results at a glance

 

For periods ended June 30, 2022, with all distributions reinvested

 

    Cumulative total returns   Average annual total returns
    6 months   1 year   3 years   Lifetime
(since 3/22/19)
                 
American Funds Multi-Sector Income Fund (Class F-2 shares)     –12.81 %        –11.80 %        1.04 %        2.18 %    
American Funds Multi-Sector Income Fund (Class A shares)     –12.93       –12.04       0.85       2.00  
Bloomberg U.S. Aggregate Index*     –10.35       –10.29       –0.93       0.17  
American Funds Multi-Sector Income Fund Custom Index†     –14.62       –14.14       –0.97       0.25  
   
* Source: Bloomberg Index Services Ltd. The Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. There have been periods when the fund has lagged the index.
†  Multi-Sector Income Fund Custom Index: 45% Bloomberg U.S. High Yield Index 2% Issuer Cap, 30% Bloomberg U.S. Corporate Index, 15% J.P. Morgan EMBI Global Diversified Index, 8% Bloomberg CMBS Ex AAA Index, and 2% Bloomberg ABS Ex AAA Index.

 

Class A shares of the fund include seed money invested by the fund’s investment adviser or its affiliates. Because 12b-1 fees are not paid on these investments, expenses are lower and results are higher than they would have been if the fees had been paid.

 

American Funds Multi-Sector Income Fund 1
Investment portfolio June 30, 2022 unaudited
   
Portfolio by type of security Percent of net assets

 

 

Portfolio quality summary*   Percent of
net assets
U.S. Treasury and agency†     .97 %
AAA/Aaa     3.14  
AA/Aa     8.38  
A/A     12.32  
BBB/Baa     20.40  
Below investment grade     52.06  
Unrated     .20  
Short-term securities & other assets less liabilities     2.53  
* 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. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and/or Fitch. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. Securities in the “unrated” category (above) have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with the fund’s investment policies.
These securities are guaranteed by the full faith and credit of the U.S. government.

 

Bonds, notes & other debt instruments 97.27%   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans 63.01%                
Financials 9.50%                
Advisor Group Holdings, LLC 6.25% 20281   USD 3,570     $ 3,120  
AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust 2.45% 2026     1,322       1,152  
AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust 3.00% 2028     980       826  
AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust 3.30% 2032     5,446       4,365  
AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust 3.40% 2033     300       237  
AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust 3.85% 2041     2,449       1,769  
AG Merger Sub II, Inc. 10.75% 20271     4,423       4,380  
Alliant Holdings Intermediate, LLC 6.75% 20271     5,068       4,511  
Alliant Holdings Intermediate, LLC / Alliant Holdings 4.25% 20271     2,815       2,440  
Alliant Holdings Intermediate, LLC / Alliant Holdings 5.875% 20291     2,990       2,485  
AmWINS Group, Inc. 4.875% 20291     8,230       6,750  
Aon Corp. 2.20% 2022     48       48  
Aretec Escrow Issuer, Inc. 7.50% 20291     4,554       3,888  
Arthur J. Gallagher & Co. 3.50% 2051     106       81  
Ascensus, Inc., Term Loan, (3-month USD-LIBOR + 6.50%) 7.50% 20292,3     3,065       2,839  
AssuredPartners, Inc. 8.00% 20271     1,320       1,237  
AssuredPartners, Inc. 5.625% 20291     2,110       1,692  
Bangkok Bank PCL 4.45% 2028     200       202  
Bangkok Bank PCL 3.733% 2034 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.90% on 9/25/2029)4     600       527  
Bank of America Corp. 1.734% 2027 (USD-SOFR + 0.96% on 7/22/2026)4     7,330       6,528  
Bank of America Corp. 2.551% 2028 (USD-SOFR + 1.05% on 2/4/2027)4     700       637  
Bank of America Corp. 1.922% 2031 (USD-SOFR + 1.37% on 10/24/2030)4     1,042       833  
Bank of America Corp. 2.651% 2032 (USD-SOFR + 1.22% on 3/11/2031)4     190       160  
Bank of America Corp. 2.972% 2033 (USD-SOFR + 1.33% on 2/4/2032)4     210       179  
Bank of America Corp. 4.571% 2033 (USD-SOFR + 1.83% on 4/27/2032)4     1,790       1,744  

 

2 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Financials (continued)                
Bank of Nova Scotia 2.45% 2032   USD 5,911     $ 4,917  
BNP Paribas 2.159% 2029 (USD-SOFR + 1.218% on 9/15/2028)1,4     200       168  
BNP Paribas 2.871% 2032 (USD-SOFR + 1.387% on 4/19/2031)1,4     3,600       2,979  
Canadian Imperial Bank of Commerce (CIBC) 3.60% 2032     1,950       1,772  
China Construction Bank Corp. 2.45% 2030 (5-year UST Yield Curve Rate T Note Constant Maturity + 2.15% on 6/24/2025)4     1,300       1,234  
China Construction Bank Corp. 2.85% 2032 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.40% on 1/21/2027)4     2,505       2,344  
China Ping An Insurance Overseas (Holdings), Ltd. 2.85% 2031     2,888       2,344  
Chubb INA Holdings, Inc. 2.85% 2051     113       83  
Chubb INA Holdings, Inc. 3.05% 2061     155       111  
Citigroup, Inc. 2.561% 2032 (USD-SOFR + 1.167% on 5/1/2031)4     2,208       1,820  
Citigroup, Inc. 3.057% 2033 (USD-SOFR + 1.351% on 1/25/2032)4     5,750       4,879  
Citigroup, Inc. 3.785% 2033 (USD-SOFR + 1.939% on 3/17/2032)4     2,495       2,250  
Citigroup, Inc. 4.91% 2033 (USD-SOFR + 2.086% on 5/24/2032)4     115       114  
Coinbase Global, Inc. 3.375% 20281     7,640       4,831  
Coinbase Global, Inc. 3.625% 20311     8,800       4,968  
Compass Diversified Holdings 5.25% 20291     14,830       12,267  
Compass Diversified Holdings 5.00% 20321     6,030       4,673  
Corebridge Financial, Inc. 3.85% 20291     5,959       5,512  
Corebridge Financial, Inc. 3.90% 20321     7,646       6,867  
Corebridge Financial, Inc. 4.35% 20421     1,724       1,474  
Corebridge Financial, Inc. 4.40% 20521     12,901       10,785  
Crédit Agricole SA 1.247% 2027 (USD-SOFR + 0.892% on 1/26/2026)1,4     250       221  
Credit Suisse Group AG 4.194% 2031 (USD-SOFR + 3.73% on 4/1/2030)1,4     1,400       1,240  
Credit Suisse Group AG 3.091% 2032 (USD-SOFR + 1.73% on 5/14/2031)1,4     2,075       1,653  
Danske Bank AS 4.298% 2028 (1-year UST Yield Curve Rate T Note Constant Maturity + 1.75% on 4/1/2027)1,4     3,950       3,750  
Deutsche Bank AG 2.129% 2026 (USD-SOFR + 1.87% on 11/24/2025)4     150       133  
Deutsche Bank AG 2.311% 2027 (USD-SOFR + 1.219% on 11/16/2026)4     300       259  
Deutsche Bank AG 3.547% 2031 (USD-SOFR + 3.043% on 9/18/2030)4     170       143  
Deutsche Bank AG 3.035% 2032 (USD-SOFR + 1.718% on 5/28/2031)4     2,450       1,941  
Digital Currency Group, Inc., Term Loan, (3-month USD-LIBOR + 7.00%) 8.00% 20262,3,5,6     3,054       2,703  
Digital Currency Group, Inc., Term Loan, 8.75% 20262,5,6     4,071       3,462  
DNB Bank ASA 1.535% 2027 (5-year UST Yield Curve Rate T Note Constant Maturity + 0.72% on 5/25/2026)1,4     2,550       2,278  
FS Energy and Power Fund 7.50% 20231     6,584       6,610  
Goldman Sachs Group, Inc. 1.948% 2027 (USD-SOFR + 0.913% on 10/21/2026)4     690       611  
Goldman Sachs Group, Inc. 2.383% 2032 (USD-SOFR + 1.248% on 7/21/2031)4     1,827       1,479  
Goldman Sachs Group, Inc. 2.615% 2032 (USD-SOFR + 1.281% on 4/22/2031)4     1,562       1,298  
Goldman Sachs Group, Inc. 3.436% 2043 (USD-SOFR + 1.632% on 2/24/2042)4     3,010       2,365  
Groupe BPCE SA 1.652% 2026 (USD-SOFR + 1.52% on 10/6/2025)1,4     250       224  
HDFC Bank, Ltd. 3.70% junior subordinated perpetual bonds (5-Year UST Yield Curve Rate T Note Constant Maturity + 2.925% on 2/25/2027)1,4     2,000       1,665  
Hightower Holding, LLC 6.75% 20291     6,955       5,240  
HSBC Holdings PLC 2.251% 2027 (USD-SOFR + 1.10% on 11/22/2026)4     890       794  
HSBC Holdings PLC 4.755% 2028 (USD-SOFR + 2.11% on 6/9/2027)4     1,065       1,036  
HSBC Holdings PLC 2.206% 2029 (USD-SOFR + 1.285% on 8/17/2028)4     2,602       2,188  
Huarong Finance 2017 Co., Ltd. (3-month USD-LIBOR + 1.15%) 2.552% 20223     271       268  
Huarong Finance 2017 Co., Ltd. (3-month USD-LIBOR + 1.325%) 2.287% 20233     1,360       1,328  
Huarong Finance 2017 Co., Ltd. 4.25% 2027     3,500       3,054  
Huarong Finance 2017 Co., Ltd. 4.75% 2027     1,000       904  
Huarong Finance 2019 Co., Ltd. 2.50% 2023     200       196  
Huarong Finance 2019 Co., Ltd. (3-month USD-LIBOR + 1.125%) 2.631% 20233     2,151       2,103  
Huarong Finance 2019 Co., Ltd. 3.75% 2024     200       192  
Huarong Finance 2019 Co., Ltd. (3-month USD-LIBOR + 1.25%) 2.756% 20253     1,862       1,748  
Huarong Finance II Co., Ltd. 5.00% 2025     200       189  
Huarong Finance II Co., Ltd. 5.50% 2025     438       425  
Huarong Finance II Co., Ltd. 4.625% 2026     216       198  
Huarong Finance II Co., Ltd. 4.875% 2026     698       641  
HUB International, Ltd. 7.00% 20261     3,695       3,482  
HUB International, Ltd. 5.625% 20291     3,235       2,676  
Icahn Enterprises Finance Corp. 5.25% 2027     2,500       2,220  
Icahn Enterprises Finance Corp. 4.375% 2029     1,660       1,345  
ICBCIL Finance Co., Ltd. 3.625% 2027     2,200       2,139  
ING Groep NV 4.252% 2033 (USD-SOFR + 2.07% on 3/28/2032)4     3,976       3,715  

 

American Funds Multi-Sector Income Fund 3
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Financials (continued)                
Intercontinental Exchange, Inc. 4.60% 2033   USD 304     $ 303  
Intercontinental Exchange, Inc. 2.65% 2040     575       423  
Intercontinental Exchange, Inc. 4.95% 2052     114       112  
Intercontinental Exchange, Inc. 3.00% 2060     55       37  
Iron Mountain Information Management Services, Inc. 5.00% 20321     4,610       3,730  
JPMorgan Chase & Co. 1.561% 2025 (USD-SOFR + 0.605% on 12/10/2024)4     76       71  
JPMorgan Chase & Co. 1.578% 2027 (USD-SOFR + 0.885% on 4/22/2026)4     1,126       1,004  
JPMorgan Chase & Co. 2.947% 2028 (USD-SOFR + 1.17% on 2/24/2027)4     5,325       4,938  
JPMorgan Chase & Co. 1.953% 2032 (USD-SOFR + 1.065% on 2/4/2031)4     1,300       1,040  
JPMorgan Chase & Co. 2.58% 2032 (USD-SOFR + 1.25% on 4/22/2031)4     628       529  
JPMorgan Chase & Co. 2.963% 2033 (USD-SOFR + 1.26% on 1/25/2032)4     2,326       1,998  
JPMorgan Chase & Co. 4.586% 2033 (USD-SOFR + 1.80% on 4/26/2032)4     931       915  
Kasikornbank PCL HK 3.343% 2031 (5-year UST Yield Curve Rate T Note Constant Maturity + 1.70% on 10/2/2026)4     600       541  
Keb Hana Bank 3.25% 20271     3,000       2,886  
Ladder Capital Corp. 4.25% 20271     2,820       2,281  
LPL Holdings, Inc. 4.625% 20271     140       131  
LPL Holdings, Inc. 4.00% 20291     3,000       2,571  
LPL Holdings, Inc. 4.375% 20311     1,770       1,515  
Marsh & McLennan Companies, Inc. 2.375% 2031     1,644       1,378  
MetLife, Inc. 4.55% 2030     40       40  
Metropolitan Life Global Funding I 1.95% 20231     150       149  
Morgan Stanley 1.512% 2027 (USD-SOFR + 0.858% on 7/20/2026)4     3,160       2,777  
Morgan Stanley 2.475% 2028 (USD-SOFR + 1.00% on 1/21/2027)4     1,490       1,356  
Morgan Stanley 4.21% 2028 (USD-SOFR + 1.61% on 4/20/2027)4     3,469       3,395  
Morgan Stanley 2.511% 2032 (USD-SOFR + 1.20% on 10/20/2031)4     459       380  
Morgan Stanley 2.943% 2033 (USD-SOFR + 1.29% on 1/21/2032)4     1,902       1,632  
Morgan Stanley 5.297% 2037 (USD-SOFR + 2.62% on 4/20/2032)4     2,691       2,609  
MSCI, Inc. 4.00% 20291     1,000       889  
MSCI, Inc. 3.625% 20301     3,680       3,074  
MSCI, Inc. 3.875% 20311     1,171       1,005  
National Financial Partners Corp. 6.875% 20281     4,349       3,600  
Navient Corp. 5.00% 2027     7,025       5,788  
Navient Corp. 4.875% 2028     1,775       1,390  
Navient Corp. 5.625% 2033     10,995       7,651  
New York Life Global Funding 0.85% 20261     80       72  
New York Life Global Funding 3.25% 20271     1,000       971  
New York Life Global Funding 1.20% 20301     21       17  
Oxford Finance, LLC / Oxford Finance Co-Issuer II, Inc. 6.375% 20271     6,520       6,255  
Power Financial Corp., Ltd. 6.15% 2028     1,200       1,249  
Power Financial Corp., Ltd. 4.50% 2029     2,100       1,961  
Power Financial Corp., Ltd. 3.35% 2031     3,000       2,493  
Rede D’Or Finance SARL 4.50% 20301     2,651       2,242  
Royal Bank of Canada 3.875% 2032     1,475       1,409  
Ryan Specialty Group, LLC 4.375% 20301     1,930       1,682  
Shriram Transport Finance Co., Ltd. 4.40% 20241     834       771  
SVB Financial Group 4.70% junior subordinated perpetual bonds (5-year UST Yield Curve Rate T Note Constant Maturity + 3.064% on 11/15/2031)4     3,843       2,900  
Toronto-Dominion Bank 2.45% 2032     185       155  
Toronto-Dominion Bank 3.20% 2032     595       532  
Toronto-Dominion Bank 4.456% 2032     227       225  
Travelers Companies, Inc. 4.10% 2049     20       18  
Travelers Companies, Inc. 2.55% 2050     3       2  
Wells Fargo & Company 3.35% 2033 (USD-SOFR + 1.50% on 3/2/2032)4     8,575       7,617  
Wells Fargo & Company 4.611% 2053 (USD-SOFR + 2.13% on 4/25/2052)4     3,649       3,383  
Xiaomi Best Time International, Ltd. 2.875% 20311     1,605       1,245  
Xiaomi Best Time International, Ltd. 4.10% 20511     1,120       754  
              295,229  
                 
Consumer discretionary 9.34%                
Affinity Gaming 6.875% 20271     1,600       1,346  
Alibaba Group Holding, Ltd. 2.125% 2031     1,900       1,573  
Allied Universal Holdco, LLC 6.625% 20261     900       828  
Allied Universal Holdco, LLC 9.75% 20271     1,680       1,426  
Allied Universal Holdco, LLC 4.625% 20281     5,300       4,386  
Allied Universal Holdco, LLC 6.00% 20291     4,410       3,215  

 

4 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Consumer discretionary (continued)                
Amazon.com, Inc. 1.65% 2028   USD 4,330     $ 3,840  
Arcos Dorados BV 6.125% 20291     2,000       1,884  
Asbury Automotive Group, Inc. 4.625% 20291     2,545       2,106  
Asbury Automotive Group, Inc. 5.00% 20321     785       643  
Atlas LuxCo 4 SARL 4.625% 20281     3,020       2,449  
AutoNation, Inc. 3.85% 2032     8,000       6,903  
Bayerische Motoren Werke AG 3.45% 20271     2,075       2,024  
Bayerische Motoren Werke AG 3.70% 20321     1,100       1,039  
Boyd Gaming Corp. 4.75% 2027     3,440       3,120  
Boyd Gaming Corp. 4.75% 20311     930       788  
Boyne USA, Inc. 4.75% 20291     2,930       2,542  
Caesars Entertainment, Inc. 6.25% 20251     655       633  
Caesars Entertainment, Inc. 4.625% 20291     2,500       1,950  
Caesars Resort Collection, LLC 5.75% 20251     690       662  
Carnival Corp. 7.625% 20261     1,000       777  
Carnival Corp. 5.75% 20271     4,500       3,266  
Carnival Corp. 4.00% 20281     3,500       2,882  
Carnival Corp. 6.00% 20291     3,000       2,118  
Carvana Co. 5.875% 20281     5,220       3,320  
CDI Escrow Issuer, Inc. 5.75% 20301     3,685       3,361  
CEC Entertainment, Inc. 6.75% 20261     2,975       2,624  
Cedar Fair LP / Canadas Wonderland Co. / Magnum Management Corp. / Millennium Operations, LLC 5.50% 20251     115       112  
Clarios Global LP 6.75% 20251     180       179  
Daimler Trucks Finance North America, LLC 3.65% 20271     825       791  
Daimler Trucks Finance North America, LLC 2.375% 20281     1,700       1,465  
Daimler Trucks Finance North America, LLC 2.50% 20311     4,750       3,876  
Empire Resorts, Inc. 7.75% 20261     10,370       9,300  
Fertitta Entertainment, Inc. 4.625% 20291     3,000       2,566  
Fertitta Entertainment, Inc. 6.75% 20301     10,000       7,704  
First Student Bidco, Inc. / First Transit Parent, Inc. 4.00% 20291     3,130       2,509  
Ford Motor Co. 3.25% 2032     1,325       996  
Ford Motor Co. 5.291% 2046     270       208  
Ford Motor Credit Company, LLC 4.063% 2024     2,500       2,379  
Ford Motor Credit Company, LLC 5.125% 2025     5,305       5,077  
Ford Motor Credit Company, LLC 2.70% 2026     4,200       3,584  
Ford Motor Credit Company, LLC 4.125% 2027     3,680       3,251  
Ford Motor Credit Company, LLC 4.95% 2027     7,875       7,332  
Ford Motor Credit Company, LLC 5.113% 2029     1,370       1,231  
Ford Motor Credit Company, LLC 4.00% 2030     1,720       1,397  
Ford Motor Credit Company, LLC 3.625% 2031     2,680       2,086  
Grand Canyon University 4.375% 2026     6,750       6,767  
Hanesbrands, Inc. 4.625% 20241     2,000       1,961  
Hanesbrands, Inc. 4.875% 20261     4,355       4,042  
Hilton Worldwide Holdings, Inc. 5.75% 20281     290       276  
Hilton Worldwide Holdings, Inc. 4.875% 2030     1,020       925  
Hilton Worldwide Holdings, Inc. 4.00% 20311     3,290       2,744  
Home Depot, Inc. 2.70% 2030     50       45  
Home Depot, Inc. 3.35% 2050     130       106  
Hyundai Capital America 1.50% 20261     2,643       2,342  
Hyundai Capital America 2.00% 20281     750       631  
Hyundai Capital America 2.10% 20281     675       570  
International Game Technology PLC 5.25% 20291     11,300       10,256  
LCM Investments Holdings II, LLC 4.875% 20291     1,718       1,312  
Levi Strauss & Co. 3.50% 20311     1,075       881  
Limited Brands, Inc. 6.625% 20301     1,565       1,356  
Limited Brands, Inc. 6.875% 2035     3,182       2,595  
Limited Brands, Inc. 6.75% 2036     380       305  
Lithia Motors, Inc. 4.375% 20311     250       214  
Lowe’s Companies, Inc. 3.75% 2032     6,035       5,606  
Lowe’s Companies, Inc. 4.25% 2052     1,137       987  
Macy’s Retail Holdings, LLC 5.875% 20301     675       568  
Marriott International, Inc. 2.85% 2031     315       262  
Marriott International, Inc. 2.75% 2033     1,846       1,454  
Marriott Ownership Resorts, Inc. 4.50% 20291     5,025       4,187  
Meituan Dianping 3.05% 2030     2,000       1,490  
Meituan Dianping 3.05% 20301     1,400       1,043  

 

 American Funds Multi-Sector Income Fund 5
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Consumer discretionary (continued)                
Melco International Development, Ltd. 5.375% 20291   USD 3,035     $ 1,836  
MercadoLibre, Inc. 2.375% 2026     300       259  
MercadoLibre, Inc. 3.125% 2031     625       451  
Merlin Entertainment 5.75% 20261     200       183  
MGM Resorts International 6.00% 2023     75       75  
MGM Resorts International 5.50% 2027     53       48  
Midas Intermediate Holdco II, LLC, Term Loan B, (USD Prime Rate + 7.75%) 9.70% Cash 20252,3,7     10       9  
Mohegan Gaming & Entertainment 8.00% 20261     6,460       5,510  
Motel 6 Operating LP, Term Loan B, (1-month USD-LIBOR + 5.00%) 6.666% 20262,3     2,139       2,107  
NCL Corp., Ltd. 5.875% 20261     1,250       985  
NCL Corp., Ltd. 5.875% 20271     2,280       1,954  
NCL Corp., Ltd. 7.75% 20291     2,925       2,242  
NCL Finance, Ltd. 6.125% 20281     2,500       1,822  
Newell Brands, Inc. 5.625% 20364     1,885       1,636  
Newell Rubbermaid, Inc. 4.875% 2025     200       197  
Newell Rubbermaid, Inc. 4.70% 2026     180       172  
Panther BF Aggregator 2, LP 6.25% 20261     36       35  
Panther BF Aggregator 2, LP 8.50% 20271     1,280       1,240  
Party City Holdings, Inc. 6.125% 20231     50       42  
Party City Holdings, Inc. 8.75% 20261     15,165       10,220  
PECF USS Intermediate Holding III Corp. 8.00% 20291     3,130       2,485  
Premier Entertainment Sub, LLC 5.625% 20291     6,000       4,281  
Premier Entertainment Sub, LLC 5.875% 20311     6,000       4,172  
Real Hero Merger Sub 2, Inc. 6.25% 20291     2,225       1,691  
Royal Caribbean Cruises, Ltd. 10.875% 20231     810       815  
Royal Caribbean Cruises, Ltd. 4.25% 20261     7,600       5,413  
Royal Caribbean Cruises, Ltd. 5.50% 20281     6,800       4,742  
Sally Holdings, LLC and Sally Capital, Inc. 5.625% 2025     100       94  
Sands China, Ltd. 4.375% 2030     2,200       1,612  
Scientific Games Corp. 8.625% 20251     710       729  
Scientific Games Corp. 7.00% 20281     1,910       1,795  
Scientific Games Corp. 7.25% 20291     1,125       1,057  
Scientific Games Holdings LP 6.625% 20301     8,755       7,455  
Six Flags Theme Parks, Inc. 7.00% 20251     315       319  
Sonic Automotive, Inc. 4.625% 20291     5,840       4,533  
Sonic Automotive, Inc. 4.875% 20311     6,305       4,752  
Stellantis Finance US, Inc. 1.711% 20271     4,325       3,764  
Stellantis Finance US, Inc. 2.691% 20311     5,095       4,039  
Studio City Co., Ltd. 7.00% 20271     6,705       5,822  
Toyota Motor Credit Corp. 1.90% 2028     910       810  
Toyota Motor Credit Corp. 3.375% 2030     57       54  
Universal Entertainment Corp. 8.50% 20241     3,580       3,473  
Vail Resorts, Inc. 6.25% 20251     110       110  
VICI Properties LP / VICI Note Co., Inc. 4.625% 20251     325       310  
VICI Properties LP / VICI Note Co., Inc. 3.875% 20291     3,880       3,345  
VICI Properties LP / VICI Note Co., Inc. 4.125% 20301     145       125  
Volkswagen Group of America Finance, LLC 3.125% 20231     248       246  
WASH Multifamily Acquisition, Inc. 5.75% 20261     8,135       7,681  
Wheel Pros, Inc. 6.50% 20291     6,750       4,779  
Wyndham Worldwide Corp. 4.375% 20281     1,125       986  
Wynn Las Vegas, LLC and Wynn Capital Corp. 4.25% 20231     60       58  
Wynn Macau, Ltd. 5.625% 20281     925       572  
Wynn Resorts Finance, LLC 7.75% 20251     1,780       1,735  
Wynn Resorts Finance, LLC 5.125% 20291     5,910       4,663  
              290,213  
                 
Energy 9.12%                
AI Candelaria (Spain), SLU 5.75% 20331     2,135       1,566  
Antero Resources Corp. 5.375% 20301     1,060       968  
Apache Corp. 4.625% 2025     985       983  
Apache Corp. 4.25% 2030     4,000       3,552  
Apache Corp. 6.00% 2037     55       51  
Apache Corp. 4.75% 2043     1,645       1,284  
Apache Corp. 5.35% 2049     50       40  
Ascent Resources – Utica, LLC 7.00% 20261     1,280       1,192  
Ascent Resources – Utica, LLC 8.25% 20281     1,492       1,423  

 

6 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Energy (continued)                
Ascent Resources – Utica, LLC 5.875% 20291   USD 995     $ 877  
Baker Hughes Co. 2.061% 2026     2,698       2,477  
Blue Racer Midstream, LLC and Blue Racer Finance Corp. 7.625% 20251     1,768       1,674  
Bonanza Creek Energy, Inc. 5.00% 20261     3,755       3,375  
California Resources Corp. 7.125% 20261     2,240       2,194  
Callon Petroleum Co. 8.00% 20281     4,300       4,137  
Callon Petroleum Co. 7.50% 20301     7,165       6,604  
Canadian Natural Resources, Ltd. 3.85% 2027     70       67  
Canadian Natural Resources, Ltd. 2.95% 2030     658       578  
Canadian Natural Resources, Ltd. 4.95% 2047     65       62  
Cenovus Energy, Inc. 5.375% 2025     172       177  
Centennial Resource Production, LLC 6.875% 20271     30       29  
Cheniere Energy Partners LP 4.50% 2029     2,107       1,885  
Cheniere Energy Partners LP 4.00% 2031     2,070       1,765  
Cheniere Energy Partners LP 3.25% 20321     1,585       1,252  
Cheniere Energy, Inc. 4.625% 2028     3,955       3,574  
Chesapeake Energy Corp. 5.50% 20261     880       840  
Chesapeake Energy Corp. 5.875% 20291     5,005       4,729  
Chesapeake Energy Corp. 6.75% 20291     1,280       1,242  
Chevron Corp. 2.236% 2030     35       31  
Chevron Corp. 3.078% 2050     214       171  
CNX Resources Corp. 7.25% 20271     1,625       1,595  
CNX Resources Corp. 6.00% 20291     610       571  
Comstock Resources, Inc. 6.75% 20291     1,540       1,382  
Comstock Resources, Inc. 5.875% 20301     2,475       2,135  
Continental Resources, Inc. 5.75% 20311     1,600       1,550  
Continental Resources, Inc. 2.875% 20321     3,734       2,923  
CQP Holdco LP / BIP-V Chinook Holdco, LLC 5.50% 20311     4,160       3,555  
CrownRock LP / CrownRock Finance, Inc. 5.00% 20291     6,750       6,064  
Diamond Foreign Asset Co. / Diamond Finance, LLC 9.00% Cash 20271,3,7     1       1  
Diamond Foreign Asset Co. / Diamond Finance, LLC 9.00% Cash 20273,7        
Diamondback Energy, Inc. 4.40% 2051     200       171  
Diamondback Energy, Inc. 4.25% 2052     3,425       2,848  
DT Midstream, Inc. 4.125% 20291     1,755       1,492  
Ecopetrol SA 6.875% 2030     2,000       1,774  
Enbridge, Inc. 3.40% 2051     718       541  
Endeavor Energy Resources LP 6.625% 20251     785       790  
Energean Israel Finance, Ltd. 4.50% 20241     805       760  
Energean Israel Finance, Ltd. 5.875% 20311     930       760  
Energy Transfer Operating LP 3.75% 2030     2,750       2,481  
Energy Transfer Operating LP 5.00% 2050     4,238       3,613  
Energy Transfer Partners LP 6.125% 2045     20       19  
Energy Transfer Partners LP 5.30% 2047     121       105  
Energy Transfer Partners LP 6.00% 2048     260       245  
Energy Transfer Partners LP 6.25% 2049     200       194  
Energy Transfer Partners LP 6.50% junior subordinated perpetual bonds (5-year UST Yield Curve Rate T Note Constant Maturity + 5.694% on 11/15/2026)4     1,107       981  
Enterprise Products Operating, LLC 3.20% 2052     118       85  
EQM Midstream Partners LP 4.00% 2024     936       871  
EQM Midstream Partners, LP 6.00% 20251     2,050       1,969  
EQM Midstream Partners, LP 6.50% 20271     2,330       2,171  
EQM Midstream Partners, LP 4.50% 20291     2,695       2,193  
EQM Midstream Partners, LP 7.50% 20301     1,761       1,694  
EQM Midstream Partners, LP 4.75% 20311     5,600       4,482  
EQT Corp. 6.625% 20254     80       82  
EQT Corp. 5.00% 2029     1,130       1,096  
EQT Corp. 3.625% 20311     3,525       3,053  
Exxon Mobil Corp. 3.452% 2051     1,170       959  
Genesis Energy, LP 8.00% 2027     7,782       6,909  
Guara Norte SARL 5.198% 20341     2,573       2,092  
Harvest Midstream I, LP 7.50% 20281     2,800       2,635  
Hess Midstream Operations LP 5.50% 20301     565       508  
Hilcorp Energy I, LP 5.75% 20291     1,665       1,465  
Hilcorp Energy I, LP 6.00% 20301     4,935       4,301  
Hilcorp Energy I, LP 6.00% 20311     1,130       976  
Hilcorp Energy I, LP 6.25% 20321     6,820       6,002  
Kinder Morgan, Inc. 5.20% 2048     15       14  

 

 American Funds Multi-Sector Income Fund 7
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Energy (continued)                
Kinder Morgan, Inc. 3.25% 2050   USD 669     $ 467  
Leviathan Bond, Ltd. 6.75% 20301     520       469  
Magellan Midstream Partners LP 3.95% 2050     1,000       791  
MPLX LP 1.75% 2026     280       253  
MPLX LP 2.65% 2030     651       544  
MPLX LP 5.50% 2049     982       913  
Murphy Oil Corp. 5.875% 2027     4,000       3,740  
MV24 Capital BV 6.748% 2034     6,338       5,690  
Nabors Industries, Inc. 7.375% 20271     1,520       1,446  
New Fortress Energy, Inc. 6.75% 20251     795       753  
New Fortress Energy, Inc. 6.50% 20261     12,605       11,440  
NGL Energy Operating, LLC 7.50% 20261     16,770       15,152  
NGL Energy Partners LP 7.50% 2023     369       334  
Northern Oil and Gas, Inc. 8.125% 20281     4,690       4,427  
NorthRiver Midstream Finance LP 5.625% 20261     1,250       1,135  
NuStar Logistics LP 5.75% 2025     700       656  
NuStar Logistics LP 6.00% 2026     225       211  
Oasis Midstream Partners LP / OMP Finance Corp. 8.00% 20291     4,090       3,806  
Occidental Petroleum Corp. 2.90% 2024     210       203  
Occidental Petroleum Corp. 5.875% 2025     4,927       4,916  
Occidental Petroleum Corp. 8.00% 2025     380       401  
Occidental Petroleum Corp. 6.625% 2030     4,438       4,579  
Occidental Petroleum Corp. 8.875% 2030     2,970       3,415  
Occidental Petroleum Corp. 6.125% 2031     2,360       2,397  
Occidental Petroleum Corp. 4.40% 2049     1,972       1,582  
Odebrecht Drilling Norbe 6.72% PIK and 1.00% Cash 20267     20,527       5,132  
Oleoducto Central SA 4.00% 20271     2,300       1,923  
ONEOK, Inc. 5.85% 2026     190       197  
ONEOK, Inc. 3.10% 2030     63       54  
ONEOK, Inc. 6.35% 2031     715       748  
ONEOK, Inc. 4.95% 2047     700       598  
ONEOK, Inc. 5.20% 2048     603       536  
ONEOK, Inc. 4.45% 2049     1,850       1,477  
ONEOK, Inc. 4.50% 2050     2,711       2,177  
ONEOK, Inc. 7.15% 2051     36       38  
Petrobras Global Finance Co. 8.75% 2026     1,500       1,686  
Petróleos Mexicanos 6.875% 2025     1,650       1,547  
Petróleos Mexicanos 4.50% 2026     3,220       2,777  
Petróleos Mexicanos 6.875% 2026     120       108  
Petróleos Mexicanos 6.49% 2027     4,240       3,682  
Petróleos Mexicanos 6.50% 2029     286       233  
Petróleos Mexicanos 8.75% 20291     1,791       1,624  
Petróleos Mexicanos 6.84% 2030     200       158  
Petróleos Mexicanos 5.95% 2031     2,280       1,675  
Petróleos Mexicanos 6.70% 2032     7,367       5,633  
Petróleos Mexicanos 6.95% 2060     1,400       866  
Petrorio Luxembourg SARL 6.125% 20261     6,090       5,612  
Plains All American Pipeline LP 3.80% 2030     116       103  
Qatar Petroleum 3.125% 20411     3,380       2,659  
Qatar Petroleum 3.30% 20511     200       155  
Range Resources Corp. 4.875% 2025     1,540       1,505  
Range Resources Corp. 8.25% 2029     1,450       1,481  
Range Resources Corp. 4.75% 20301     2,305       2,071  
Rattler Midstream Partners LP 5.625% 20251     350       350  
Rockcliff Energy II, LLC 5.50% 20291     475       433  
Sanchez Energy Corp. 7.25% 20231,9     27      
Shell International Finance BV 2.75% 2030     441       398  
Shell International Finance BV 3.25% 2050     24       19  
Shell International Finance BV 3.00% 2051     3       2  
SM Energy Co. 6.625% 2027     85       80  
SM Energy Co. 6.50% 2028     1,980       1,824  
Southwestern Energy Co. 5.95% 20254     2,825       2,795  
Southwestern Energy Co. 7.75% 2027     85       87  
Southwestern Energy Co. 8.375% 2028     2,900       3,061  
Southwestern Energy Co. 5.375% 2029     1,310       1,218  
Southwestern Energy Co. 5.375% 2030     4,555       4,200  
Southwestern Energy Co. 4.75% 2032     2,145       1,838  

 

8 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Energy (continued)                
Suburban Propane Partners LP / Suburban Energy Finance Corp. 5.00% 20311   USD 3,480     $ 2,965  
Sunoco LP 6.00% 2027     1,635       1,562  
Sunoco LP 4.50% 2029     6,875       5,680  
Superior Plus LP and Superior General Partner, Inc. 4.50% 20291     2,210       1,883  
Tallgrass Energy Partners, LP 7.50% 20251     355       344  
Targa Resources Partners LP 6.50% 2027     515       528  
Targa Resources Partners LP 6.875% 2029     15       15  
Total Capital International 3.127% 2050     36       28  
Transocean Guardian, Ltd. 5.875% 20241     70       65  
Transocean Poseidon, Ltd. 6.875% 20271     232       204  
Venture Global Calcasieu Pass, LLC 4.125% 20311     7,910       6,783  
Western Gas Partners LP 4.50% 2028     550       499  
Western Gas Partners LP 5.45% 2044     30       25  
Western Midstream Operating, LP 3.60% 2025 (3.35% on 8/1/2022)4     210       194  
Western Midstream Operating, LP 4.75% 2028     1,005       920  
Western Midstream Operating, LP 4.55% 2030 (4.30% on 8/1/2022)4     22       19  
Western Midstream Operating, LP 5.75% 2050 (5.50% on 8/1/2022)4     200       161  
Williams Companies, Inc. 3.50% 2030     39       35  
              283,296  
                 
Communication services 6.32%                
Alphabet, Inc. 2.25% 2060     30       20  
Altice France Holding SA 10.50% 20271     1,520       1,278  
Altice France SA 5.125% 20291     2,603       1,973  
AT&T, Inc. 2.75% 2031     45       39  
AT&T, Inc. 2.25% 2032     935       765  
AT&T, Inc. 3.50% 2053     6,259       4,755  
Axiata SPV5 Labuan, Ltd. 3.064% 2050     200       144  
Brightstar Escrow Corp. 9.75% 20251     4,350       4,123  
CCO Holdings, LLC and CCO Holdings Capital Corp. 5.00% 20281     200       185  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.50% 20301     5,140       4,284  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.75% 20301     4,200       3,605  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.25% 20311     4,600       3,762  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.50% 2032     685       557  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.75% 20321     8,000       6,570  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.50% 20331     3,450       2,726  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.25% 20341     6,500       5,044  
CCO Holdings, LLC and CCO Holdings Capital Corp. 5.125% 2049     13       11  
CCO Holdings, LLC and CCO Holdings Capital Corp. 4.80% 2050     280       222  
CCO Holdings, LLC and CCO Holdings Capital Corp. 3.70% 2051     30       20  
CCO Holdings, LLC and CCO Holdings Capital Corp. 3.90% 2052     710       494  
Centerfield Media Parent, Inc. 6.625% 20261     730       590  
Cinemark USA, Inc. 5.875% 20261     657       587  
Cogent Communications Group, Inc. 3.50% 20261     2,530       2,332  
Comcast Corp. 2.65% 2030     200       179  
Comcast Corp. 3.75% 2040     15       13  
Comcast Corp. 4.00% 2048     35       31  
Consolidated Communications, Inc. 5.00% 20281     1,400       1,121  
CSC Holdings, LLC 4.625% 20301     400       269  
Diamond Sports Group, LLC 6.625% 20271     3,175       397  
DIRECTV Financing, LLC, Term Loan, (3-month USD-LIBOR + 5.00%) 6.666% 20272,3     1,949       1,802  
DIRECTV Holdings, LLC and DIRECTV Financing Co., Inc. 5.875% 20271     2,435       2,085  
DISH DBS Corp. 5.125% 2029     1,850       1,130  
Embarq Corp. 7.995% 2036     475       358  
Front Range BidCo, Inc. 6.125% 20281     7,420       5,378  
Frontier Communications Corp. 5.875% 20271     1,440       1,299  
Frontier Communications Corp. 5.00% 20281     1,075       916  
Frontier Communications Corp. 6.75% 20291     869       717  
Frontier Communications Holdings, LLC 5.875% 2029     9       7  
Frontier Communications Holdings, LLC 8.75% 20301     1,475       1,494  
Gray Escrow II, Inc. 5.375% 20311     4,725       3,796  
Gray Television, Inc. 7.00% 20271     3,570       3,441  
Inmarsat PLC 6.75% 20261     230       208  
Kantar Group, LLC, Term Loan B2, (3-month USD-LIBOR + 4.50%) 6.75% 20262,3     1,295       1,205  
Lamar Media Corp. 4.875% 2029     2,030       1,831  
Lamar Media Corp. 4.00% 2030     3,100       2,608  
Lamar Media Corp. 3.625% 2031     175       144  

 

American Funds Multi-Sector Income Fund 9
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Communication services (continued)                
Level 3 Financing, Inc. 4.25% 20281   USD 1,710     $ 1,375  
Level 3 Financing, Inc. 3.75% 20291     2,670       2,069  
Ligado Networks, LLC 15.50% PIK 20231,7     1,445       787  
Magallanes, Inc. 5.05% 20421     360       307  
Magallanes, Inc. 5.141% 20521     10,506       8,832  
Magallanes, Inc. 5.391% 20621     319       267  
Midas OpCo Holdings, LLC 5.625% 20291     8,145       6,568  
Netflix, Inc. 4.875% 2028     882       832  
Netflix, Inc. 5.875% 2028     1,938       1,900  
Netflix, Inc. 5.375% 20291     10,929       10,348  
Netflix, Inc. 4.875% 20301     3,502       3,212  
News Corp. 3.875% 20291     5,410       4,686  
News Corp. 5.125% 20321     2,015       1,788  
Nexstar Broadcasting, Inc. 4.75% 20281     1,350       1,160  
Nexstar Escrow Corp. 5.625% 20271     3,270       2,991  
OUTFRONT Media Capital, LLC 4.25% 20291     3,000       2,394  
OUTFRONT Media Capital, LLC 4.625% 20301     1,990       1,570  
PLDT, Inc. 2.50% 2031     1,700       1,424  
SBA Tower Trust 1.631% 20261     4,000       3,583  
Scripps Escrow II, Inc. 3.875% 20291     1,500       1,260  
Sirius XM Radio, Inc. 5.00% 20271     1,075       1,000  
Sirius XM Radio, Inc. 4.00% 20281     4,825       4,191  
Sirius XM Radio, Inc. 4.125% 20301     2,185       1,830  
Sirius XM Radio, Inc. 3.875% 20311     2,700       2,155  
Sprint Corp. 6.875% 2028     2,470       2,605  
Sprint Corp. 8.75% 2032     4,330       5,225  
Summer (BC) BidCo B, LLC 5.50% 20261     1,210       1,086  
Tencent Holdings, Ltd. 3.975% 2029     900       853  
Tencent Holdings, Ltd. 3.24% 20501     1,400       968  
T-Mobile US, Inc. 2.55% 2031     121       102  
T-Mobile US, Inc. 3.30% 2051     246       180  
T-Mobile US, Inc. 3.40% 2052     1,160       859  
Twitter, Inc. 5.00% 20301     4,275       4,063  
Univision Communications, Inc. 4.50% 20291     13,480       11,325  
Univision Communications, Inc. 7.375% 20301     2,325       2,275  
UPC Broadband Finco BV 4.875% 20311     4,410       3,607  
Verizon Communications, Inc. 1.75% 2031     825       663  
Verizon Communications, Inc. 2.55% 2031     1,275       1,091  
Verizon Communications, Inc. 2.65% 2040     215       158  
Verizon Communications, Inc. 3.40% 2041     200       163  
Verizon Communications, Inc. 2.875% 2050     367       261  
Verizon Communications, Inc. 3.55% 2051     480       386  
Verizon Communications, Inc. 3.875% 2052     10,000       8,403  
VZ Secured Financing BV 5.00% 20321     7,890       6,565  
Warner Music Group 3.875% 20301     2,375       1,979  
Ziggo Bond Co. BV 5.125% 20301     1,100       864  
Ziggo Bond Finance BV 4.875% 20301     1,870       1,591  
              196,316  
                 
Materials 4.95%                
Alcoa Nederland Holding BV 5.50% 20271     300       285  
Allegheny Technologies, Inc. 4.875% 2029     3,190       2,548  
Allegheny Technologies, Inc. 5.125% 2031     1,690       1,297  
Alpek, SAB de CV, 3.25% 20311     1,100       884  
Anglo American Capital PLC 2.875% 20311     500       417  
Anglo American Capital PLC 3.95% 20501     206       158  
Arconic Corp. 6.00% 20251     115       112  
Ardagh Group SA 6.50% Cash 20271,7     953       708  
Ardagh Metal Packaging Finance USA, LLC 4.00% 20291     2,980       2,401  
Ardagh Packaging Finance 5.25% 20251     700       649  
Axalta Coating Systems, LLC 4.75% 20271     3,085       2,776  
Bluestar Finance Holdings, Ltd. 3.875% perpetual bonds (3-year UST Yield Curve Rate T Note Constant Maturity + 6.651% on 6/24/2023)4     1,600       1,599  
Braskem Idesa SAPI 7.45% 20291     2,150       1,848  
Braskem Idesa SAPI 7.45% 2029     500       430  
Braskem Idesa SAPI 6.99% 20321     5,880       4,556  
Braskem Netherlands Finance BV 4.50% 20301     1,170       1,001  

 

10 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Materials (continued)                
Braskem SA 4.50% 2030   USD 850     $ 727  
Braskem SA 5.875% 20501     400       317  
BWAY Parent Co., Inc. 5.50% 20241     1,995       1,909  
Can-Pack SA / Canpack US, LLC 3.875% 20291     4,100       3,205  
Cleveland-Cliffs, Inc. 6.75% 20261     260       259  
Cleveland-Cliffs, Inc. 5.875% 2027     160       150  
Cleveland-Cliffs, Inc. 4.875% 20311     1,850       1,635  
Constellium SE 3.75% 20291     3,140       2,495  
CVR Partners LP 6.125% 20281     5,965       5,342  
Diamond (BC) BV 4.625% 20291     720       577  
Ecolab, Inc. 2.125% 2032     1,300       1,098  
Element Solutions, Inc. 3.875% 20281     3,450       2,852  
First Quantum Minerals, Ltd. 6.50% 20241     4,950       4,764  
First Quantum Minerals, Ltd. 6.875% 20271     5,717       5,121  
FMG Resources 4.375% 20311     3,110       2,544  
Fresnillo PLC 4.25% 20501     1,100       809  
FXI Holdings, Inc. 7.875% 20241     2,333       2,028  
FXI Holdings, Inc. 12.25% 20261     11,891       10,605  
GC Treasury Center Co., Ltd. 4.40% 20321     1,600       1,471  
Glencore Funding, LLC 2.625% 20311     2,000       1,614  
Glencore Funding, LLC 3.875% 20511     2,000       1,503  
GPC Merger Sub, Inc. 7.125% 20281     2,017       1,621  
Gran Colombia Gold Corp. 6.875% 20261     1,860       1,458  
International Flavors & Fragrances, Inc. 1.832% 20271     24       21  
International Flavors & Fragrances, Inc. 2.30% 20301     1,044       859  
International Flavors & Fragrances, Inc. 3.468% 20501     850       621  
Labl, Inc. 8.25% 20291     2,175       1,646  
LSB Industries, Inc. 6.25% 20281     950       840  
LYB International Finance III, LLC 2.25% 2030     521       430  
LYB International Finance III, LLC 3.375% 2040     1,500       1,157  
LYB International Finance III, LLC 3.625% 2051     1,091       808  
Mercer International, Inc. 5.125% 2029     685       586  
Methanex Corp. 5.125% 2027     5,150       4,554  
Methanex Corp. 5.25% 2029     3,000       2,541  
Mineral Resources, Ltd. 8.50% 20301     2,340       2,309  
Newcrest Finance Pty, Ltd. 3.25% 20301     62       55  
Newcrest Finance Pty, Ltd. 4.20% 20501     15       12  
Nova Chemicals Corp. 5.25% 20271     3,100       2,667  
Nova Chemicals Corp. 4.25% 20291     6,400       5,012  
Novelis Corp. 4.75% 20301     3,371       2,808  
Novelis Corp. 3.875% 20311     2,556       1,973  
Olin Corp. 5.00% 2030     3,000       2,596  
Praxair, Inc. 2.00% 2050     18       11  
Rayonier A.M. Products, Inc. 7.625% 20261     23       20  
Rio Tinto Finance (USA), Ltd. 2.75% 2051     187       137  
SCIH Salt Holdings, Inc. 4.875% 20281     16,635       13,860  
SCIH Salt Holdings, Inc. 6.625% 20291     7,430       5,881  
Scotts Miracle-Gro Co. 4.50% 2029     2,068       1,700  
Scotts Miracle-Gro Co. 4.375% 2032     2,630       2,004  
Sealed Air Corp. 4.00% 20271     1,688       1,525  
Silgan Holdings, Inc. 4.125% 2028     1,474       1,324  
South32 Treasury (USA), Ltd. 4.35% 20321     157       147  
Summit Materials, Inc. 6.50% 20271     270       261  
Summit Materials, Inc. 5.25% 20291     2,900       2,535  
Trivium Packaging BV 5.50% 20261     200       190  
Trivium Packaging BV 8.50% 20271     1,200       1,127  
Valvoline, Inc. 4.25% 20301     2,265       1,895  
Valvoline, Inc. 3.625% 20311     2,535       2,033  
Venator Materials Corp. 5.75% 20251     2,815       2,258  
Venator Materials Corp. 9.50% 20251     4,410       4,431  
W. R. Grace Holdings, LLC 4.875% 20271     2,035       1,774  
W. R. Grace Holdings, LLC 5.625% 20291     2,055       1,518  
Warrior Met Coal, Inc. 7.875% 20281     2,100       2,004  
              153,903  

 

American Funds Multi-Sector Income Fund 11
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Health care 4.95%                
AmerisourceBergen Corp. 2.70% 2031   USD 1,950     $ 1,673  
Anthem, Inc. 4.55% 2052     254       240  
AstraZeneca Finance, LLC 1.75% 2028     751       663  
AstraZeneca Finance, LLC 2.25% 2031     121       105  
Avantor Funding, Inc. 4.625% 20281     1,835       1,687  
Avantor Funding, Inc. 3.875% 20291     3,740       3,277  
Bausch Health Americas, Inc. 9.25% 20261     1,370       983  
Bausch Health Americas, Inc. 8.50% 20271     75       53  
Bausch Health Companies, Inc. 5.75% 20271     200       166  
Bausch Health Companies, Inc. 5.00% 20281     660       353  
Bausch Health Companies, Inc. 7.00% 20281     830       476  
Bausch Health Companies, Inc. 5.25% 20301     1,220       634  
Bausch Health Companies, Inc. 5.25% 20311     7,680       3,953  
Baxter International, Inc. 1.915% 2027     2,150       1,927  
Boston Scientific Corp. 2.65% 2030     150       131  
Catalent Pharma Solutions, Inc. 5.00% 20271     455       429  
Catalent Pharma Solutions, Inc. 3.125% 20291     1,850       1,520  
Catalent Pharma Solutions, Inc. 3.50% 20301     3,265       2,668  
Centene Corp. 4.25% 2027     30       28  
Centene Corp. 2.45% 2028     10,155       8,497  
Centene Corp. 4.625% 2029     6,191       5,791  
Centene Corp. 3.00% 2030     610       507  
Centene Corp. 3.375% 2030     644       548  
Centene Corp. 2.50% 2031     3,280       2,614  
Centene Corp. 2.625% 2031     4,440       3,542  
Charles River Laboratories International, Inc. 4.25% 20281     1,923       1,731  
Charles River Laboratories International, Inc. 3.75% 20291     1,550       1,348  
Cigna Corp. 2.375% 2031     46       39  
Community Health Systems, Inc. 5.625% 20271     180       153  
Community Health Systems, Inc. 6.00% 20291     165       137  
Community Health Systems, Inc. 6.875% 20291     1,200       778  
DaVita, Inc. 4.625% 20301     3,470       2,717  
Encompass Health Corp. 4.50% 2028     1,267       1,087  
Encompass Health Corp. 4.75% 2030     1,280       1,075  
Endo DAC / Endo Finance, LLC / Endo Finco 6.00% 20281     1,100       88  
Endo Luxembourg Finance Co. I SARL / Endo U.S., Inc. 6.125% 20291     3,610       2,736  
Grifols Escrow Issuer SA 4.75% 20281     1,510       1,312  
HCA, Inc. 5.375% 2026     425       422  
HCA, Inc. 5.625% 2028     3,770       3,716  
HCA, Inc. 4.625% 20521     146       117  
HealthEquity, Inc. 4.50% 20291     1,410       1,236  
Humana, Inc. 3.70% 2029     225       213  
IMS Health Holdings, Inc. 5.00% 20261     600       573  
Johnson & Johnson 2.10% 2040     38       28  
Kaiser Foundation Hospitals 2.81% 2041     355       276  
Molina Healthcare, Inc. 4.375% 20281     1,621       1,451  
Molina Healthcare, Inc. 3.875% 20321     4,000       3,362  
Mozart Debt Merger Sub, Inc. 3.875% 20291     2,000       1,710  
Mozart Debt Merger Sub, Inc. 5.25% 20291     5,850       4,823  
Novartis Capital Corp. 1.75% 2025     32       31  
Novartis Capital Corp. 2.00% 2027     24       22  
Option Care Health, Inc. 4.375% 20291     1,330       1,142  
Organon Finance 1, LLC 5.125% 20311     1,335       1,157  
Owens & Minor, Inc. 6.625% 20301     4,480       4,098  
Par Pharmaceutical, Inc. 7.50% 20271     450       343  
Partners HealthCare System, Inc. 3.192% 2049     42       32  
Pfizer, Inc. 1.70% 2030     44       37  
Radiology Partners, Inc. 9.25% 20281     3,605       2,713  
Rede D’Or Finance SARL 4.50% 2030     2,605       2,203  
Roche Holdings, Inc. 1.93% 20281     4,670       4,132  
Roche Holdings, Inc. 2.076% 20311     7,854       6,704  
Roche Holdings, Inc. 2.607% 20511     791       575  
RP Escrow Issuer, LLC 5.25% 20251     1,635       1,416  
Select Medical Holdings Corp. 6.25% 20261     196       183  
Summa Health 3.511% 2051     1,325       1,091  
Surgery Center Holdings 10.00% 20271     235       228  
Syneos Health, Inc. 3.625% 20291     1,559       1,322  

 

12 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Health care (continued)                
Tenet Healthcare Corp. 4.625% 2024   USD 21     $ 20  
Tenet Healthcare Corp. 4.875% 20261     750       693  
Tenet Healthcare Corp. 5.125% 20271     1,230       1,109  
Tenet Healthcare Corp. 6.125% 20281     1,410       1,211  
Tenet Healthcare Corp. 4.375% 20301     6,000       5,088  
Teva Pharmaceutical Finance Co. BV 3.15% 2026     14,060       11,575  
Teva Pharmaceutical Finance Co. BV 4.75% 2027     10,380       8,879  
Teva Pharmaceutical Finance Co. BV 6.75% 2028     12,590       11,759  
Teva Pharmaceutical Finance Co. BV 5.125% 2029     11,970       9,891  
Teva Pharmaceutical Finance Co. BV 4.10% 2046     3,000       1,878  
UnitedHealth Group, Inc. 4.75% 2052     324       324  
UnitedHealth Group, Inc. 4.95% 2062     297       302  
Valeant Pharmaceuticals International, Inc. 9.00% 20251     200       148  
              153,899  
                 
Industrials 4.85%                
Atkore, Inc. 4.25% 20311     2,000       1,664  
Atlantic Aviation FBO, Inc., Term Loan, (3-month USD-LIBOR + 3.00%) 4.06% 20282,3     3,990       3,776  
ATS Automation Tooling Systems, Inc. 4.125% 20281     225       188  
Boeing Company 2.196% 2026     25       23  
Boeing Company 2.75% 2026     500       465  
Boeing Company 3.25% 2028     1,078       964  
Boeing Company 5.15% 2030     13,333       12,809  
Boeing Company 3.625% 2031     4,738       4,094  
Boeing Company 3.75% 2050     83       59  
Boeing Company 5.805% 2050     597       549  
Bombardier, Inc. 7.50% 20251     1,191       1,080  
Bombardier, Inc. 7.125% 20261     6,050       5,008  
Bombardier, Inc. 7.875% 20271     4,400       3,674  
Bombardier, Inc. 6.00% 20281     1,790       1,344  
Builders FirstSource, Inc. 4.25% 20321     2,175       1,660  
Burlington Northern Santa Fe, LLC 3.55% 2050     750       628  
Burlington Northern Santa Fe, LLC 3.30% 2051     479       385  
Burlington Northern Santa Fe, LLC 2.875% 2052     10       7  
BWX Technologies, Inc. 4.125% 20281     1,150       1,026  
BWX Technologies, Inc. 4.125% 20291     1,080       950  
Canadian Pacific Railway, Ltd. 1.75% 2026     435       394  
Canadian Pacific Railway, Ltd. 2.45% 2031     469       402  
Canadian Pacific Railway, Ltd. 3.00% 2041     423       332  
Canadian Pacific Railway, Ltd. 3.10% 2051     377       278  
Clarivate Science Holdings Corp. 3.875% 20281     4,910       4,117  
Clarivate Science Holdings Corp. 4.875% 20291     4,470       3,683  
CoreLogic, Inc. 4.50% 20281     11,844       9,139  
CoreLogic, Inc., Term Loan, (3-month USD-LIBOR + 6.50%) 8.188% 20292,3     3,950       2,903  
Cornerstone Building Brands, Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.574% 20282,3     145       121  
Covert Mergeco, Inc. 4.875% 20291     3,645       2,971  
CSX Corp. 4.50% 2049     25       23  
Dun & Bradstreet Corp. 5.00% 20291     1,203       1,041  
Empresa de Transporte de Pasajeros Metro SA 4.70% 20501     400       331  
General Dynamics Corp. 1.15% 2026     5,600       5,090  
General Electric Capital Corp. 4.418% 2035     800       748  
General Electric Capital Corp., Series A, 6.75% 2032     200       224  
GFL Environmental, Inc. 4.00% 20281     4,500       3,720  
Gol Finance SA 8.00% 2026     1,438       959  
Harsco Corp. 5.75% 20271     3,329       2,668  
Honeywell International, Inc. 2.70% 2029     35       32  
Howmet Aerospace, Inc. 6.875% 2025     3       3  
JELD-WEN Holding, Inc. 4.875% 20271     2,050       1,602  
Labl Escrow Issuer, LLC 10.50% 20271     500       436  
Lima Metro Line 2 Finance, Ltd. 5.875% 20341     2,629       2,599  
Lockheed Martin Corp. 1.85% 2030     353       302  
Lockheed Martin Corp. 4.50% 2036     39       39  
LSC Communications, Inc. 8.75% 20231,5,6,9     45      
Masco Corp. 2.00% 2031     48       38  
Maxar Technologies, Inc. 7.75% 20271     2,850       2,826  
Mexico City Airport Trust 4.25% 2026     1,600       1,476  

 

American Funds Multi-Sector Income Fund 13
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Industrials (continued)                
Moog, Inc. 4.25% 20271   USD 1,481     $ 1,286  
Mueller Water Products, Inc. 4.00% 20291     1,200       1,048  
Nielsen Finance, LLC and Nielsen Finance Co. 5.625% 20281     1,250       1,164  
Nielsen Finance, LLC and Nielsen Finance Co. 5.875% 20301     1,300       1,196  
Nielsen Finance, LLC and Nielsen Finance Co. 4.75% 20311     125       113  
Norfolk Southern Corp. 3.05% 2050     8       6  
PGT Innovations, Inc. 4.375% 20291     2,490       1,967  
PM General Purchaser, LLC 9.50% 20281     8,000       6,474  
Raytheon Technologies Corp. 1.90% 2031     1,515       1,243  
Republic Services, Inc. 2.375% 2033     1,390       1,138  
Roller Bearing Company of America, Inc. 4.375% 20291     2,755       2,348  
Rolls-Royce PLC 5.75% 20271     6,230       5,631  
Sensata Technologies Holding BV 4.00% 20291     2,230       1,896  
Sensata Technologies, Inc. 3.75% 20311     150       120  
Siemens AG 1.20% 20261     250       227  
SkyMiles IP, Ltd. 4.75% 20281     770       728  
SkyMiles IP, Ltd., Term Loan, (3-month USD-LIBOR + 3.75%) 4.75% 20272,3     750       745  
SRS Distribution, Inc. 4.625% 20281     5,810       5,093  
Stericycle, Inc. 3.875% 20291     3,180       2,604  
TransDigm, Inc. 6.25% 20261     1,250       1,209  
TransDigm, Inc. 5.50% 2027     1,235       1,052  
TransDigm, Inc. 4.625% 2029     5,050       4,077  
TransDigm, Inc. 4.875% 2029     1,990       1,623  
Uber Technologies, Inc. 8.00% 20261     2,185       2,180  
Union Pacific Corp. 2.375% 2031     2,480       2,145  
Union Pacific Corp. 2.80% 2032     4,580       4,082  
Union Pacific Corp. 4.30% 2049     75       70  
Union Pacific Corp. 3.25% 2050     13       10  
United Airlines Holdings, Inc. 6.50% 20271     975       961  
United Airlines, Inc. 4.375% 20261     2,385       2,110  
United Airlines, Inc. 4.625% 20291     1,920       1,635  
United Rentals, Inc. 5.25% 2030     960       892  
Vertical Holdco GMBH 7.625% 20281     1,302       1,171  
Waste Management, Inc. 4.15% 2032     940       922  
WESCO Distribution, Inc. 7.125% 20251     270       270  
WESCO Distribution, Inc. 7.25% 20281     2,465       2,444  
              150,730  
                 
Utilities 4.24%                
AEP Transmission Co., LLC 2.75% 2051     21       15  
AES Panama Generation Holdings SRL 4.375% 2030     1,400       1,200  
AES Panama Generation Holdings SRL 4.375% 20301     875       750  
Alabama Power Co. 3.00% 2052     330       243  
Alfa Desarrollo SpA 4.55% 20511     7,126       5,134  
Alliant Energy Finance, LLC 3.60% 20321     6,750       6,119  
American Electric Power Company, Inc. 1.00% 2025     25       23  
AmeriGas Partners LP 5.625% 2024     175       169  
Calpine Corp. 5.125% 20281     1,070       945  
Cleveland Electric Illuminating Co. 4.55% 20301     550       547  
Connecticut Light and Power Co. 2.05% 2031     175       148  
Consorcio Transmantaro SA 4.70% 2034     1,000       898  
Consumers Energy Co. 3.10% 2050     36       28  
Consumers Energy Co. 2.65% 2052     2,070       1,456  
DPL, Inc. 4.125% 2025     1,390       1,286  
DTE Electric Co. 3.65% 2052     2,100       1,818  
DTE Energy Company 1.90% 2028     1,010       901  
DTE Energy Company 3.00% 2032     3,350       3,029  
Duke Energy Progress, LLC 2.00% 2031     480       398  
Duke Energy Progress, LLC 2.50% 2050     134       92  
Edison International 4.95% 2025     130       130  
Edison International 5.75% 2027     16       16  
Edison International 4.125% 2028     1,384       1,292  
Edison International 5.00% junior subordinated perpetual bonds (5-year UST Yield Curve Rate T Note Constant Maturity + 3.901% on 3/15/2027)4     4,000       3,193  
Emera US Finance LP 2.639% 2031     1,325       1,102  
Empresas Publicas de Medellin ESP 4.25% 20291     500       391  
Empresas Publicas de Medellin ESP 4.25% 2029     200       157  

 

14 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Utilities (continued)                
Empresas Publicas de Medellin ESP 4.375% 20311   USD 950     $ 728  
Enfragen Energia Sur SA 5.375% 2030     2,760       1,868  
ENN Clean Energy International Investment, Ltd. 3.375% 20261     2,070       1,883  
ENN Energy Holdings, Ltd. 2.625% 2030     1,000       853  
ENN Energy Holdings, Ltd. 2.625% 20301     700       597  
Entergy Corp. 2.40% 2031     50       41  
FirstEnergy Corp. 4.10% 20281     675       659  
FirstEnergy Corp. 2.25% 2030     1,518       1,205  
FirstEnergy Corp. 2.65% 2030     12,512       10,341  
FirstEnergy Corp., Series B, 4.40% 20274     180       170  
FirstEnergy Transmission, LLC 2.866% 20281     325       275  
Florida Power & Light Company 2.45% 2032     600       523  
Florida Power & Light Company 2.875% 2051     2,150       1,603  
Instituto Costarricense de Electricidad 6.75% 2031     2,000       1,882  
Investment Energy Resources, Ltd. 6.25% 20291     350       296  
Jersey Central Power & Light Co. 4.30% 20261     50       49  
Jersey Central Power & Light Co. 2.75% 20321     250       213  
Monongahela Power Co. 3.55% 20271     1,775       1,690  
NextEra Energy Capital Holdings, Inc. 2.44% 2032     8,000       6,670  
NiSource Finance Corp. 5.00% 2052     200       196  
Northern States Power Co. 2.90% 2050     268       202  
Northern States Power Co. 4.50% 2052     50       49  
Pacific Gas and Electric Co. 2.95% 2026     29       26  
Pacific Gas and Electric Co. 2.10% 2027     300       252  
Pacific Gas and Electric Co. 3.30% 2027     373       334  
Pacific Gas and Electric Co. 3.00% 2028     225       194  
Pacific Gas and Electric Co. 3.75% 2028     1,094       967  
Pacific Gas and Electric Co. 4.65% 2028     125       116  
Pacific Gas and Electric Co. 4.55% 2030     7,282       6,477  
Pacific Gas and Electric Co. 2.50% 2031     3,210       2,458  
Pacific Gas and Electric Co. 3.25% 2031     1,550       1,254  
Pacific Gas and Electric Co. 3.50% 2050     4,576       3,065  
PG&E Corp. 5.00% 2028     1,610       1,363  
PG&E Corp. 5.25% 2030     2,490       2,053  
Public Service Company of Colorado 1.875% 2031     2,493       2,087  
Public Service Company of Colorado 1.90% 2031     2,784       2,353  
Public Service Electric and Gas Co. 1.90% 2031     300       250  
Public Service Electric and Gas Co. 3.10% 2032     1,180       1,085  
Southern California Edison Co. 0.975% 2024     275       259  
Southern California Edison Co. 2.25% 2030     50       42  
Southern California Edison Co. 2.50% 2031     3,800       3,195  
Southern California Edison Co. 2.75% 2032     4,175       3,531  
Southern California Edison Co. 3.45% 2052     5,000       3,731  
Southwestern Electric Power Co. 3.25% 2051     250       186  
State Grid Overseas Investment, Ltd. 4.375% 2043     1,200       1,189  
Talen Energy Corp. 10.50% 20261     7,960       5,174  
Talen Energy Corp. 7.25% 20271,9     1,255       1,238  
Talen Energy Corp., Term Loan, (3-month USD CME Term SOFR + 4.75%) 5.949% 20232,3     2,840       2,815  
Union Electric Co. 2.15% 2032     350       291  
Union Electric Co. 3.90% 2052     745       657  
Venture Global Calcasieu Pass, LLC 3.875% 20291     9,065       7,954  
Virginia Electric and Power Co. 2.30% 2031     175       148  
Virginia Electric and Power Co. 2.40% 2032     12,951       11,081  
Virginia Electric and Power Co. 2.45% 2050     25       17  
Wisconsin Power and Light Co. 1.95% 2031     275       229  
Xcel Energy, Inc. 1.75% 2027     1,100       984  
Xcel Energy, Inc. 2.60% 2029     181       158  
Xcel Energy, Inc. 2.35% 2031     846       699  
Xcel Energy, Inc. 3.50% 2049     290       230  
              131,615  
                 
Information technology 3.58%                
Almonde, Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.489% 20252,3     2,150       1,861  
Analog Devices, Inc. 1.70% 2028     398       349  
Analog Devices, Inc. 2.10% 2031     558       477  
Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 5.50%) 6.506% 20252,3     800       775  

 

 American Funds Multi-Sector Income Fund 15
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Information technology (continued)                
BMC Software, Inc. 7.125% 20251   USD 5,900     $ 5,657  
BMC Software, Inc. 9.125% 20261     90       84  
BMC Software, Inc., Term Loan, (3-month USD-LIBOR + 5.50%) 6.128% 20262,3     6,675       6,216  
Booz Allen Hamilton, Inc. 4.00% 20291     2,787       2,435  
Broadcom Corp. / Broadcom Cayman Finance, Ltd. 3.875% 2027     53       51  
Broadcom, Inc. 4.00% 20291     1,984       1,840  
Broadcom, Inc. 4.75% 2029     220       213  
Broadcom, Inc. 4.15% 2030     350       321  
Broadcom, Inc. 2.45% 20311     8,141       6,549  
Broadcom, Inc. 4.15% 20321     3,121       2,821  
Broadcom, Inc. 4.30% 2032     1,000       910  
Broadcom, Inc. 2.60% 20331     6,660       5,129  
Broadcom, Inc. 3.469% 20341     474       386  
Broadcom, Inc. 3.137% 20351     130       99  
Broadcom, Inc. 3.187% 20361     111       85  
Broadcom, Inc. 3.50% 20411     1,087       822  
Broadcom, Inc. 3.75% 20511     1,369       1,016  
CDK Global, Inc. 7.25% 20291     14,550       14,025  
CommScope, Inc. 7.125% 20281     5,000       3,807  
Diebold Nixdorf, Inc. 9.375% 20251     6,000       4,203  
Entegris Escrow Corp. 4.75% 20291     1,795       1,675  
Fair Isaac Corp. 4.00% 20281     2,640       2,343  
Gartner, Inc. 4.50% 20281     1,195       1,099  
Gartner, Inc. 3.625% 20291     225       195  
Gartner, Inc. 3.75% 20301     1,460       1,245  
Global Payments, Inc. 2.90% 2030     67       57  
Mastercard, Inc. 3.85% 2050     100       92  
MoneyGram International, Inc. 5.375% 20261     4,025       3,839  
NCR Corp. 5.125% 20291     3,986       3,380  
NCR Corp. 5.25% 20301     194       168  
Oracle Corp. 2.30% 2028     454       391  
Oracle Corp. 2.875% 2031     5,479       4,520  
Oracle Corp. 3.60% 2050     50       35  
Oracle Corp. 3.95% 2051     212       156  
PayPal Holdings, Inc. 2.85% 2029     43       39  
PayPal Holdings, Inc. 4.40% 2032     259       257  
PayPal Holdings, Inc. 5.05% 2052     720       716  
PayPal Holdings, Inc. 5.25% 2062     160       159  
Rocket Software, Inc. 6.50% 20291     8,750       6,341  
ServiceNow, Inc. 1.40% 2030     6,504       5,096  
Square, Inc. 3.50% 20311     15,000       11,986  
UKG, Inc., Term Loan, (3-month USD-LIBOR + 5.25%) 6.212% 20272,3     6,780       6,297  
VeriSign, Inc. 2.70% 2031     729       587  
Veritas Holdings, Ltd. 7.50% 20251     508       382  
Visa, Inc. 2.70% 2040     120       97  
              111,283  
                 
Real estate 3.12%                
American Campus Communities, Inc. 3.30% 2026     38       37  
American Campus Communities, Inc. 2.85% 2030     5       5  
American Campus Communities, Inc. 3.875% 2031     175       172  
American Tower Corp. 2.70% 2031     331       273  
American Tower Corp. 4.05% 2032     1,676       1,529  
Brookfield Property REIT, Inc. 5.75% 20261     3,770       3,451  
Corporacion Inmobiliaria Vesta, SAB de CV, 3.625% 20311     3,240       2,579  
Crown Castle International Corp. 2.50% 2031     242       198  
Equinix, Inc. 1.45% 2026     2,260       2,009  
Equinix, Inc. 2.90% 2026     68       63  
Equinix, Inc. 1.55% 2028     105       88  
Equinix, Inc. 2.00% 2028     894       768  
Equinix, Inc. 3.20% 2029     75       67  
Equinix, Inc. 2.15% 2030     4,030       3,264  
Equinix, Inc. 2.50% 2031     1,645       1,334  
Equinix, Inc. 3.90% 2032     1,150       1,041  
Equinix, Inc. 3.40% 2052     819       608  
Essex Portfolio LP 2.55% 2031     1,762       1,475  
Extra Space Storage, Inc. 2.35% 2032     168       133  

 

16 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Real estate (continued)                
FibraSOMA 4.375% 20311   USD 3,933     $ 2,810  
Howard Hughes Corp. 5.375% 20281     1,400       1,175  
Howard Hughes Corp. 4.125% 20291     5,840       4,515  
Howard Hughes Corp. 4.375% 20311     6,450       4,785  
Iron Mountain, Inc. 5.00% 20281     344       305  
Iron Mountain, Inc. 5.25% 20281     1,200       1,080  
Iron Mountain, Inc. 4.875% 20291     7,610       6,490  
Iron Mountain, Inc. 4.50% 20311     860       705  
Kennedy-Wilson Holdings, Inc. 4.75% 2029     5,410       4,390  
Kennedy-Wilson Holdings, Inc. 4.75% 2030     4,240       3,325  
Kennedy-Wilson Holdings, Inc. 5.00% 2031     1,805       1,402  
Ladder Capital Corp. 4.75% 20291     5,500       4,241  
Medical Properties Trust, Inc. 5.00% 2027     90       83  
Medical Properties Trust, Inc. 3.50% 2031     1,965       1,555  
Park Intermediate Holdings, LLC 4.875% 20291     8,230       7,080  
Public Storage 1.95% 2028     417       361  
Realogy Corp. 5.75% 20291     2,525       1,919  
Realogy Corp. 5.25% 20301     3,890       2,889  
RHP Hotel Properties LP / RHP Finance Corp. 4.50% 20291     2,060       1,751  
RLJ Lodging Trust, LP 4.00% 20291     1,380       1,136  
Sun Communities Operating LP 2.30% 2028     198       170  
Sun Communities Operating LP 2.70% 2031     3,382       2,729  
Sun Communities Operating LP 4.20% 2032     14,413       13,122  
VICI Properties LP 4.75% 2028     876       838  
VICI Properties LP 4.95% 2030     810       769  
VICI Properties LP 5.125% 2032     6,694       6,322  
Westfield Corp., Ltd. 3.50% 20291     10       9  
Xenia Hotels & Resorts, Inc. 4.875% 20291     2,120       1,822  
              96,872  
                 
Consumer staples 3.04%                
7-Eleven, Inc. 0.95% 20261     365       323  
7-Eleven, Inc. 1.30% 20281     445       370  
7-Eleven, Inc. 1.80% 20311     3,795       2,966  
7-Eleven, Inc. 2.50% 20411     900       611  
7-Eleven, Inc. 2.80% 20511     815       533  
Albertsons Companies, Inc. 3.50% 20291     4,175       3,391  
Altria Group, Inc. 4.80% 2029     2,000       1,903  
Altria Group, Inc. 3.40% 2030     800       679  
Altria Group, Inc. 4.45% 2050     650       469  
Altria Group, Inc. 3.70% 2051     3,710       2,377  
Anheuser-Busch Co. / InBev Worldwide 4.90% 2046     90       85  
Anheuser-Busch InBev NV 4.439% 2048     180       158  
Anheuser-Busch InBev NV 4.60% 2048     600       540  
Anheuser-Busch InBev NV 4.50% 2050     690       621  
B&G Foods, Inc. 5.25% 2025     245       226  
B&G Foods, Inc. 5.25% 2027     3,930       3,404  
British American Tobacco PLC 2.726% 2031     2,750       2,181  
British American Tobacco PLC 4.54% 2047     186       137  
British American Tobacco PLC 4.758% 2049     512       387  
British American Tobacco PLC 3.984% 2050     2,800       1,934  
British American Tobacco PLC 5.65% 2052     2,532       2,190  
Central Garden & Pet Co. 4.125% 2030     1,070       879  
Central Garden & Pet Co. 4.125% 20311     5,215       4,195  
Conagra Brands, Inc. 1.375% 2027     35       29  
Conagra Brands, Inc. 5.30% 2038     2       2  
Constellation Brands, Inc. 2.875% 2030     1,040       906  
Constellation Brands, Inc. 2.25% 2031     510       414  
Constellation Brands, Inc. 4.75% 2032     244       243  
Darling Ingredients, Inc. 5.25% 20271     280       271  
Darling Ingredients, Inc. 6.00% 20301     3,700       3,694  
Edgewell Personal Care Co. 5.50% 20281     1,770       1,614  
Energizer Holdings, Inc. 4.375% 20291     3,320       2,554  
Ingles Markets, Inc. 4.00% 20311     3,345       2,899  
InRetail Consumer 3.25% 20281     1,100       915  
Keurig Dr Pepper, Inc. 3.20% 2030     30       27  
Kraft Heinz Company 4.375% 2046     1,850       1,545  

 

 American Funds Multi-Sector Income Fund 17
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Corporate bonds, notes & loans (continued)                
Consumer staples (continued)                
Kraft Heinz Company 5.50% 2050   USD 1,500     $ 1,443  
Kronos Acquisition Holdings, Inc. 5.00% 20261     6,070       5,198  
Kronos Acquisition Holdings, Inc. 7.00% 20271     5,550       4,170  
Lamb Weston Holdings, Inc. 4.125% 20301     2,590       2,249  
MARB BondCo PLC 3.95% 20311     2,577       1,984  
Molson Coors Brewing Co. 4.20% 2046     20       16  
Natura Cosmeticos SA 4.125% 20281     3,800       3,134  
NBM US Holdings, Inc. 6.625% 20291     500       481  
Nestle Skin Health SA, Term Loan B3, (3-month USD-LIBOR + 3.75%) 6.00% 20262,3     5,553       5,157  
PepsiCo, Inc. 1.625% 2030     6       5  
PepsiCo, Inc. 1.40% 2031     34       28  
PepsiCo, Inc. 1.95% 2031     1,029       878  
Performance Food Group, Inc. 5.50% 20271     790       733  
Performance Food Group, Inc. 4.25% 20291     1,863       1,559  
Philip Morris International, Inc. 3.375% 2029     37       33  
Philip Morris International, Inc. 1.75% 2030     283       220  
Philip Morris International, Inc. 4.125% 2043     12       10  
Philip Morris International, Inc. 4.25% 2044     15       12  
Post Holdings, Inc. 5.625% 20281     320       304  
Post Holdings, Inc. 5.50% 20291     6,180       5,537  
Post Holdings, Inc. 4.625% 20301     4,556       3,852  
Post Holdings, Inc. 4.50% 20311     2,000       1,642  
Prestige Brands International, Inc. 5.125% 20281     2,000       1,863  
Prestige Brands International, Inc. 3.75% 20311     3,660       3,041  
Procter & Gamble Company 0.55% 2025     11       10  
PT Indofood CBP Sukses Makmur Tbk 3.398% 2031     445       347  
PT Indofood CBP Sukses Makmur Tbk 4.745% 2051     560       377  
Simmons Foods, Inc. 4.625% 20291     3,295       2,791  
US Foods, Inc. 4.625% 20301     1,880       1,587  
              94,333  
                 
Total corporate bonds, notes & loans             1,957,689  
                 
Mortgage-backed obligations 12.89%                
Commercial mortgage-backed securities 7.54%                
Arbor Multi Family Mortgage Securities Trust, Series 2020-MF1, Class B, 3.719% 20531,3,10     500       445  
Banc of America Commercial Mortgage, Inc., Series 2016-UB10, Class C, 5.008% 20493,10     3,560       3,406  
Banc of America Commercial Mortgage, Inc., Series 2017-BNK3, Class A4, 3.574% 205010     10       10  
Bank Commercial Mortgage Trust, Series 2017-BNK9, Class A4, 3.538% 205410     10       10  
Bank Commercial Mortgage Trust, Series 2019-BN19, Class B, 3.647% 206110     4,000       3,664  
Benchmark Mortgage Trust, Series 2018-B2, Class A4, 3.615% 205110     25       24  
Benchmark Mortgage Trust, Series 2018-B3, Class A5, 4.025% 205110     10       10  
Benchmark Mortgage Trust, Series 2018-B4, Class A5, 4.121% 20513,10     10       10  
Benchmark Mortgage Trust, Series 2018-B3, Class B, 4.295% 20513,10     1,445       1,368  
Benchmark Mortgage Trust, Series 2022-B35, Class C, 4.594% 20553,10     11,500       10,143  
Benchmark Mortgage Trust, Series 2019-B13, Class A4, 2.952% 205710     20       18  
Boca Commercial Mortgage Trust, Series 2022-BOCA, Class B, (1-month USD CME Term SOFR + 2.319%) 2.819% 20391,3,10     2,694       2,648  
BX Trust, Series 2022-CSMO, Class B, (1-month USD CME Term SOFR + 3.14%) 3.891% 20271,3,10     10,000       9,862  
BX Trust, Series 2021-SDMF, Class B, (1-month USD-LIBOR + 0.738%) 2.062% 20341,3,10     3,000       2,829  
BX Trust, Series 2021-SDMF, Class C, (1-month USD-LIBOR + 0.888%) 2.212% 20341,3,10     2,100       1,975  
BX Trust, Series 2021-SDMF, Class D, (1-month USD-LIBOR + 1.387%) 2.711% 20341,3,10     2,000       1,880  
BX Trust, Series 2021-VOLT, Class A, (1-month USD-LIBOR + 0.70%) 2.024% 20361,3,10     1,733       1,674  
BX Trust, Series 2021-ARIA, Class A, (1-month USD-LIBOR + 0.899%) 2.223% 20361,3,10     1,992       1,876  
BX Trust, Series 2021-VOLT, Class B, (1-month USD-LIBOR + 0.95%) 2.274% 20361,3,10     2,696       2,539  
BX Trust, Series 2021-ARIA, Class B, (1-month USD-LIBOR + 1.297%) 2.621% 20361,3,10     1,989       1,864  
BX Trust, Series 2021-ARIA, Class C, (1-month USD-LIBOR + 1.646%) 2.97% 20361,3,10     1,992       1,863  

 

18 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Mortgage-backed obligations (continued)                
Commercial mortgage-backed securities (continued)                
BX Trust, Series 2021-ARIA, Class D, (1-month USD-LIBOR + 1.895%) 3.219% 20361,3,10   USD 1,380     $ 1,289  
BX Trust, Series 2022-IND, Class D, (1-month USD CME Term SOFR + 2.839%) 4.173% 20371,3,10     787       753  
BX Trust, Series 2021-ACNT, Class A, (1-month USD-LIBOR + 0.85%) 2.174% 20381,3,10     2,102       2,026  
BX Trust, Series 2021-SOAR, Class B, (1-month USD-LIBOR + 0.87%) 2.194% 20381,3,10     811       779  
BX Trust, Series 2021-SOAR, Class C, (1-month USD-LIBOR + 1.10%) 2.424% 20381,3,10     731       696  
BX Trust, Series 2021-ACNT, Class B, (1-month USD-LIBOR + 1.25%) 2.574% 20381,3,10     5,988       5,745  
BX Trust, Series 2021-SOAR, Class D, (1-month USD-LIBOR + 1.40%) 2.724% 20381,3,10     9,259       8,770  
BX Trust, Series 2021-ACNT, Class C, (1-month USD-LIBOR + 1.50%) 2.825% 20381,3,10     1,962       1,873  
BX Trust, Series 2021-ACNT, Class D, (1-month USD-LIBOR + 1.85%) 3.175% 20381,3,10     2,982       2,841  
BX Trust, Series 2022-AHP, Class B, (1-month USD CME Term SOFR + 1.84%) 3.119% 20391,3,10     3,000       2,896  
BX Trust, Series 2022-LP2, Class D, (1-month USD CME Term SOFR + 1.961%) 3.295% 20391,3,10     2,801       2,615  
BX Trust, Series 2022-AHP, Class C, (1-month USD CME Term SOFR + 2.09%) 3.369% 20391,3,10     4,000       3,848  
BXSC Commercial Mortgage Trust, Series 2022-WSS, Class D, (1-month USD CME Term SOFR + 3.188%) 4.467% 20351,3,10     2,485       2,395  
CD Commercial Mortgage Trust, Series 2017-CD6, Class A5, 3.456% 205010     10       10  
Citigroup Commercial Mortgage Trust, Series 2012-GC8, Class B, 4.285% 20451,10     500       495  
Citigroup Commercial Mortgage Trust, Series 2013-GC11, Class B, 3.732% 20463,10     893       886  
Citigroup Commercial Mortgage Trust, Series 2013-GC11, Class C, 4.134% 20463,10     2,000       1,977  
Citigroup Commercial Mortgage Trust, Series 2014-GC25, Class AS, 4.017% 204710     438       433  
Citigroup Commercial Mortgage Trust, Series 2014-GC21, Class AS, 4.026% 204710     420       415  
Citigroup Commercial Mortgage Trust, Series 2014-GC21, Class B, 4.328% 20473,10     1,900       1,876  
Citigroup Commercial Mortgage Trust, Series 2015-GC27, Class B, 3.772% 204810     7,892       7,603  
Citigroup Commercial Mortgage Trust, Series 2015-GC29, Class C, 4.279% 20483,10     2,660       2,519  
Citigroup Commercial Mortgage Trust, Series 2015-GC27, Class C, 4.57% 20483,10     3,656       3,460  
Citigroup Commercial Mortgage Trust, Series 2015-GC33, Class A3, 3.515% 205810     303       297  
Commercial Mortgage Trust, Series 2012-CR3, Class AM, 3.416% 20451,10     500       498  
Commercial Mortgage Trust, Series 2012-CR2, Class AM, 3.791% 204510     32       32  
Commercial Mortgage Trust, Series 2012-CR2, Class B, 4.393% 204510     440       439  
Commercial Mortgage Trust, Series 2013-CR7, Class AM, 3.314% 20461,10     560       556  
Commercial Mortgage Trust, Series 2013-CR6, Class B, 3.397% 20461,10     1,505       1,485  
Commercial Mortgage Trust, Series 2013-CRE7, Class B, 3.613% 20461,10     500       495  
Commercial Mortgage Trust, Series 2013-LC6, Class B, 3.739% 204610     80       79  
Commercial Mortgage Trust, Series 2013-CR6, Class C, 3.777% 20461,3,10     1,310       1,293  
Commercial Mortgage Trust, Series 2013-LC13, Class B, 5.009% 20461,3,10     429       427  
Commercial Mortgage Trust, Series 2013-CR10, Class C, 5.063% 20461,3,10     1,309       1,293  
Commercial Mortgage Trust, Series 2014-UBS4, Class AM, 3.968% 204710     108       106  
Commercial Mortgage Trust, Series 2014-CR19, Class AM, 4.08% 204710     500       492  
Commercial Mortgage Trust, Series 2014-CR18, Class B, 4.456% 20473,10     381       371  
Commercial Mortgage Trust, Series 2014-LC17, Class B, 4.49% 20473,10     950       928  
Commercial Mortgage Trust, Series 2014-UBS6, Class C, 4.588% 20473,10     605       582  
Commercial Mortgage Trust, Series 2014-UBS4, Class B, 4.701% 204710     1,024       1,016  
Commercial Mortgage Trust, Series 2014-CR16, Class C, 5.082% 20473,10     460       447  
Commercial Mortgage Trust, Series 2015-CR26, Class B, 4.621% 20483,10     8,035       7,892  
Commercial Mortgage Trust, Series 2015-CCRE-26, Class C, 4.621% 20483,10     860       822  
Commercial Mortgage Trust, Series 2016-COR1, Class A4, 3.091% 204910     25       24  
Commercial Mortgage Trust, Series 2015-PC1, Class AM, 4.29% 20503,10     250       245  
Commercial Mortgage Trust, Series 2013-CR11, Class B, 5.276% 20503,10     570       571  
Commercial Mortgage Trust, Series 2013-CR11, Class C, 5.284% 20501,3,10     1,250       1,237  
Extended Stay America Trust, Series 2021-ESH, Class A, (1-month USD-LIBOR + 1.08%) 2.405% 20381,3,10     417       408  
Extended Stay America Trust, Series 2021-ESH, Class B, (1-month USD-LIBOR + 1.38%) 2.705% 20381,3,10     381       370  
Extended Stay America Trust, Series 2021-ESH, Class C, (1-month USD-LIBOR + 1.70%) 3.025% 20381,3,10     2,386       2,314  

 

 American Funds Multi-Sector Income Fund 19
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Mortgage-backed obligations (continued)                
Commercial mortgage-backed securities (continued)                
Extended Stay America Trust, Series 2021-ESH, Class D, (1-month USD-LIBOR + 2.25%) 3.575% 20381,3,10   USD 8,648     $ 8,367  
FREMF Mortgage Trust, Series 2017-K67, Class B, 4.08% 20491,3,10     2,000       1,935  
Great Wolf Trust, Series 2019-WOLF, Class D, (1-month USD-LIBOR + 1.933%) 3.257% 20361,3,10     1,213       1,149  
GS Mortgage Securities Trust, Series 2018-HULA, Class A, 2.244% 20251,3,10     2,287       2,235  
GS Mortgage Securities Trust, Series 2013-GC12, Class B, 3.777% 20463,10     650       644  
GS Mortgage Securities Trust, Series 2013-GC16, Class A3, 4.244% 204610     87       87  
GS Mortgage Securities Trust, Series 2020-GS1, Class A2, 3.47% 204810     200       195  
Hilton USA Trust, Series 2016-HHV, Class D, 4.194% 20381,10     1,230       1,121  
JPMBB Commercial Mortgage Securities Trust, Series 2014-C19, Class B, 4.394% 20473,10     920       908  
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2022-OPO, Class C, 3.377% 20391,10     2,602       2,390  
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2022-OPO, Class C, 3.45% 20391,3,10     2,092       1,868  
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2021-410T, Class A, 2.287% 20421,10     768       673  
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class B, 3.499% 204610     2,000       1,948  
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS, 3.372% 204710     500       496  
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class B, 3.674% 20473,10     650       644  
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class C, 4.235% 20473,10     500       491  
LUXE Commercial Mortgage Trust, Series 2021-TRIP, Class A, (1-month USD-LIBOR + 1.05%) 2.374% 20381,3,10     1,374       1,325  
LUXE Commercial Mortgage Trust, Series 2021-TRIP, Class B, (1-month USD-LIBOR + 1.40%) 2.724% 20381,3,10     1,142       1,096  
LUXE Commercial Mortgage Trust, Series 21-TRIP, Class C, (1-month USD-LIBOR + 1.75%) 3.074% 20381,3,10     5,000       4,738  
MHC Commercial Mortgage Trust, CMO, Series 2021-MHC, Class A, (1-month USD-LIBOR + 0.801%) 2.125% 20261,3,10     1,534       1,497  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C9, Class B, 3.708% 20463,10     923       905  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class A4, 4.295% 20463,10     2,876       2,863  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C12, Class AS, 4.482% 20463,10     500       498  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C17, Class A4, 3.443% 204710     151       149  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class B, 4.00% 20473,10     3,197       3,110  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class AS, 4.11% 20473,10     195       191  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C20, Class B, 4.16% 204810     18,113       17,643  
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C25, Class B, 4.677% 20483,10     74       72  
Morgan Stanley Capital I Trust, Series 2017-H1, Class A5, 3.53% 205010     45       44  
Morgan Stanley Capital I Trust, Series 2019-L3, Class B, 3.781% 20523,10     5,300       4,832  
Multi Family Connecticut Avenue Securities, Series 2019-1, Class M10, (1-month USD-LIBOR + 3.25%) 4.874% 20491,3,10     425       396  
Multi Family Connecticut Avenue Securities, Series 2020-1, Class M10, (1-month USD-LIBOR + 3.75%) 5.374% 20501,3,10     400       361  
SREIT Trust, Series 2021-FLWR, Class A, (1-month USD-LIBOR + 0.577%) 1.901% 20361,3,10     1,558       1,482  
SREIT Trust, Series 2021-FLWR, Class B, (1-month USD-LIBOR + 0.926%) 2.25% 20361,3,10     8,000       7,585  
SREIT Trust, Series 2021-MFP, Class A, (1-month USD-LIBOR + 0.731%) 2.055% 20381,3,10     1,442       1,372  
SREIT Trust, Series 2021-MFP, Class B, (1-month USD-LIBOR + 1.079%) 2.404% 20381,3,10     1,545       1,459  
SREIT Trust, Series 2021-MFP, Class C, (1-month USD-LIBOR + 1.329%) 2.653% 20381,3,10     2,077       1,952  

 

20 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Mortgage-backed obligations (continued)                
Commercial mortgage-backed securities (continued)                
Storagemart Commercial Mortgage Trust, Series 2022-MINI, Class D, (1-month USD CME Term SOFR + 1.95%) 3.229% 20391,3,10   USD 5,000     $ 4,691  
Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class C, 4.693% 20453,10     240       240  
Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class D, 4.869% 20451,3,10     44       44  
Wells Fargo Commercial Mortgage Trust, Series 2015-NXS1, Class C, 3.848% 20483,10     1,000       947  
Wells Fargo Commercial Mortgage Trust, Series 2015-C28, Class C, 4.219% 20483,10     500       475  
Wells Fargo Commercial Mortgage Trust, Series 2016-C34, Class A4, 3.096% 204910     25       24  
Wells Fargo Commercial Mortgage Trust, Series 2017-C40, Class C, 4.463% 20503,10     2,154       1,964  
Wells Fargo Commercial Mortgage Trust, Series 2015-NXS3, Class D, 3.153% 20571,10     3,561       3,116  
Wells Fargo Commercial Mortgage Trust, Series 2015-NXS3, Class B, 4.647% 20573,10     4,100       4,009  
Wells Fargo Commercial Mortgage Trust, Series 2015-LC22, Class B, 4.706% 20583,10     6,750       6,638  
Wells Fargo Commercial Mortgage Trust, Series 2015-LC22, Class C, 4.706% 20583,10     110       104  
WF-RBS Commercial Mortgage Trust, Series 2012-C10, Class AS, 3.241% 204510     740       734  
WF-RBS Commercial Mortgage Trust, Series 2012-C8, Class B, 4.311% 204510     705       704  
WF-RBS Commercial Mortgage Trust, Series 2013-C16, Class B, 5.149% 20463,10     1,251       1,236  
WF-RBS Commercial Mortgage Trust, Series 2014-C19, Class AS, 4.271% 204710     417       413  
WF-RBS Commercial Mortgage Trust, Series 2014-C19, Class B, 4.723% 20473,10     512       502  
WF-RBS Commercial Mortgage Trust, Series 2013-C12, Class B, 3.863% 20483,10     500       497  
WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class AS, 4.069% 20573,10     100       98  
              234,194  
                 
Collateralized mortgage-backed obligations (privately originated) 5.35%                
Bellemeade Re, Ltd., Series 2019-3A, Class M1B, (1-month USD-LIBOR + 1.60%) 3.224% 20291,3,10     310       309  
Binom Securitization Trust, Series 2022-RPL1, Class A1, 3.00% 20611,3,10     1,274       1,225  
BRAVO Residential Funding Trust, Series 2020-RPL2, Class A1, 2.00% 20591,3,10     212       195  
BRAVO Residential Funding Trust, Series 2022-RPL1, Class A1, 2.75% 20611,10     1,719       1,606  
BRAVO Residential Funding Trust, Series 2022-R1, Class A, 3.125% 2070 (6.125% on 1/29/2025)1,4,10     11,486       10,440  
Cascade Funding Mortgage Trust, Series 2020-HB4, Class M3, 2.72% 20301,3,10     225       216  
Cascade Funding Mortgage Trust, Series 2021-HB5, Class A, 0.801% 20311,3,10     185       182  
Cascade Funding Mortgage Trust, Series 2021-HB7, Class A, 1.151% 20311,3,10     823       807  
Cascade Funding Mortgage Trust, Series 2021-HB7, Class M1, 2.125% 20311,3,10     1,296       1,234  
Cascade Funding Mortgage Trust, Series 2021-HB6, Class A, 0.898% 20361,3,10     972       955  
Cascade Funding Mortgage Trust, Series 2018-RM2, Class A, 3.861% 20681,3,10     981       965  
Cascade Funding Mortgage Trust, Series 2018-RM2, Class B, 4.00% 20681,3,10     978       954  
Cascade Funding Mortgage Trust, Series 2018-RM2, Class C, 4.00% 20681,3,10     719       698  
Cascade Funding Mortgage Trust, Series 2018-RM2, Class D, 4.00% 20681,3,10     719       692  
CFCRE Commercial Mortgage Trust, Series 2016-C7, Class A2, 3.585% 205410     182       177  
Citigroup Mortgage Loan Trust, Inc., Series 2020-EXP1, Class A1A, 1.804% 20601,3,10     48       46  
Connecticut Avenue Securities, Series 2021-R01, Class 1M1, (30-day Average USD-SOFR + 0.75%) 1.676% 20411,3,10     1,607       1,591  
Connecticut Avenue Securities, Series 2022-R01, Class 1M1, (30-day Average USD-SOFR + 1.00%) 1.926% 20411,3,10     4,739       4,640  
Connecticut Avenue Securities, Series 2022-R04, Class 1M1, (30-day Average USD-SOFR + 2.00%) 2.926% 20421,3,10     1,232       1,209  
Connecticut Avenue Securities, Series 2022-R06, Class 1M1, (30-day Average USD-SOFR + 2.75%) 3.698% 20421,3,10     5,536       5,526  
Credit Suisse Mortgage Trust, Series 2020-NET, Class A, 2.257% 20371,10     111       102  
Credit Suisse Mortgage Trust, Series 2017-RPL3, Class A1, 2.00% 20601,3,10     575       542  
Finance of America HECM Buyout, Series 2020-HB2, Class M3, 4.57% 20301,3,10     225       216  
Flagstar Mortgage Trust, Series 2021-10INV, Class A3, 2.50% 20511,3,10     792       681  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2021-DNA5, Class M2, (30-day Average USD-SOFR + 1.65%) 2.576% 20341,3,10     780       753  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2021-DNA6, Class M1, (30-day Average USD-SOFR + 0.80%) 1.726% 20411,3,10     2,468       2,419  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA3, Class M1A, (30-day Average USD-SOFR + 2.00%) 2.926% 20421,3,10     2,439       2,402  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA4, Class M1A, (30-day Average USD-SOFR + 2.20%) 3.126% 20421,3,10     9,166       9,056  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2022-DNA5, Class M1A, (30-day Average USD-SOFR + 2.95%) 3.729% 20421,3,10     8,142       8,157  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA6, Class M2, (30-day Average USD-SOFR + 2.00%) 2.926% 20501,3,10     5,000       4,923  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA1, Class M2, (1-month USD-LIBOR + 1.70%) 3.324% 20501,3,10     2,667       2,638  

 

 American Funds Multi-Sector Income Fund 21
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Mortgage-backed obligations (continued)                
Collateralized mortgage-backed obligations (privately originated) (continued)                
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA2, Class M2, (1-month USD-LIBOR + 1.85%) 3.474% 20501,3,10   USD 4,692     $ 4,649  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA5, Class M2, (30-day Average USD-SOFR + 2.80%) 3.726% 20501,3,10     2,203       2,208  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA3, Class B1, (1-month USD-LIBOR + 5.10%) 6.724% 20501,3,10     11,348       11,580  
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2020-DNA4, Class B1, (1-month USD-LIBOR + 6.00%) 7.624% 20501,3,10     4,000       4,175  
Home Partners of America Trust, Series 2021-2, Class A, 1.901% 20261,10     2,178       1,948  
Hundred Acre Wood Trust, Series 2021-INV1, Class A9, 2.50% 20511,3,10     2,661       2,464  
Hundred Acre Wood Trust, Series 2021-INV1, Class A27, 2.50% 20511,3,10     2,621       2,212  
JPMorgan Mortgage Trust, Series 2018-3, Class A1, 3.50% 20481,3,10     211       199  
JPMorgan Mortgage Trust, Series 2020-1, Class A15, 3.50% 20501,3,10     860       805  
Legacy Mortgage Asset Trust, Series 2019-GS7, Class A1, 3.25% 20591,3,10     227       226  
Legacy Mortgage Asset Trust, Series 2020-GS4, Class A1, 3.25% 20601,3,10     268       263  
Legacy Mortgage Asset Trust, Series 2021-GS2, Class A1, 1.75% 20611,3,10     914       861  
Legacy Mortgage Asset Trust, Series 2022-GS1, Class A1, 4.00% 2061 (7.00% on 4/25/2025)1,4,5,10     13,173       12,708  
Legacy Mortgage Asset Trust, Series 2021-GS5, Class A1, 2.25% 2067 (5.25% on 11/25/2024)1,4,10     2,825       2,645  
Mello Warehouse Securitization Trust, Series 2021-3, Class A, (1-month USD-LIBOR + 0.85%) 2.474% 20551,3,10     1,616       1,570  
MRA Issuance Trust, Series 2020-10, Class A3, (1-month USD-LIBOR + 1.30%) 2.10% 20221,3,10     1,775       1,753  
New Residential Mortgage Loan Trust, Series 2018-1A, Class A1A, 4.00% 20571,3,10     52       51  
New Residential Mortgage Loan Trust, Series 2019-2A, Class A1, 4.25% 20571,3,10     148       146  
New Residential Mortgage Loan Trust, Series 2018-5A, Class A1, 4.75% 20571,3,10     120       120  
NewRez Warehouse Securitization Trust, Series 2021-1, Class A, (1-month USD-LIBOR + 0.75%) 2.374% 20551,3,10     2,250       2,228  
One Market Plaza Trust, Series 2017-1MKT, Class C, 4.016% 20321,10     3,000       2,903  
Progress Residential Trust, Series 2019-SFR3, Class A, 2.271% 20361,10     397       382  
Progress Residential Trust, Series 2020-SFR2, Class A, 2.078% 20371,10     100       94  
Progress Residential Trust, Series 2021-SFR4, Class F, 3.407% 20381,10     4,305       3,898  
Reverse Mortgage Investment Trust, Series 2021-HB1, Class A, 1.259% 20311,3,10     895       861  
RMF Proprietary Issuance Trust, Series 2019-1, Class A, 2.75% 20631,3,10     70       68  
Sequoia Mortgage Trust, Series 2013-2, Class A, 1.874% 20433,10     42       38  
Sequoia Mortgage Trust, Series 2018-CH1, Class A2, 3.50% 20481,3,10     73       70  
Towd Point Mortgage Trust, Series 2015-3, Class B1, 4.187% 20541,3,10     2,504       2,489  
Towd Point Mortgage Trust, Series 2017-2, Class B2, 4.079% 20571,3,10     2,400       2,338  
Towd Point Mortgage Trust, Series 2018-4, Class A1, 3.00% 20581,3,10     138       132  
Towd Point Mortgage Trust, Series 2018-1, Class A2, 3.25% 20581,3,10     2,477       2,375  
Towd Point Mortgage Trust, Series 2018-5, Class A1A, 3.25% 20581,3,10     305       299  
Towd Point Mortgage Trust, Series 2019-4, Class M1B, 3.00% 20591,3,10     3,000       2,571  
Treehouse Park Improvement Association No.1 – Anleihen 9.75% 20331,5,6     22,184       19,673  
Tricon Residential, Series 2021-SFR1, Class A, 1.943% 20381,10     2,344       2,132  
VM Fund I, LLC 8.625% 20281,5,6     7,828       7,711  
              166,401  
                 
Total mortgage-backed obligations             400,595  
                 
Asset-backed obligations 10.02%                
Aesop Funding, LLC, Series 2017-1A, Class B, 3.41% 20231,10     100       100  
Aesop Funding, LLC, Series 2020-1A, Class D, 3.34% 20261,10     10,000       8,996  
Aesop Funding, LLC, Series 2021-1A, Class B, 1.63% 20271,10     1,062       939  
Aesop Funding, LLC, Series 2021-1A, Class C, 2.13% 20271,10     551       485  
Aesop Funding, LLC, Series 2020-2A, Class B, 2.96% 20271,10     100       94  
Aesop Funding, LLC, Series 2021-1A, Class D, 3.71% 20271,10     8,000       7,167  
Aesop Funding, LLC, Series 2020-2A, Class C, 4.25% 20271,10     6,550       6,296  
Affirm Asset Securitization Trust, Series 2021-A, Class A, 0.88% 20251,10     577       570  
Affirm Asset Securitization Trust, Series 2021-B, Class A, 1.03% 20261,10     2,597       2,463  
Allegro CLO, Ltd., Series 2016-1A, Class AR2, (3-month USD-LIBOR + 0.95%) 1.994% 20301,3,10     3,044       3,001  
Allegro CLO, Ltd., Series 2017-1A, Class AR, (3-month USD-LIBOR + 0.95%) 1.994% 20301,3,10     477       467  
American Credit Acceptance Receivables Trust, Series 2020-3, Class C, 1.85% 20261,10     92       91  
American Credit Acceptance Receivables Trust, Series 2021-1, Class C, 0.83% 20271,10     100       98  
American Credit Acceptance Receivables Trust, Series 2021-1, Class D, 1.14% 20271,10     100       95  

 

22 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Asset-backed obligations (continued)                
American Credit Acceptance Receivables Trust, Series 2022-1, Class C, 2.12% 20281,10   USD 2,000     $ 1,886  
American Credit Acceptance Receivables Trust, Series 2022-1, Class D, 2.46% 20281,10     2,000       1,855  
American Credit Acceptance Receivables Trust, Series 2022-1, Class E, 3.64% 20281,10     1,236       1,133  
American Credit Acceptance Receivables Trust, Series 2022-2, Class F, 7.74% 20291,10     8,782       8,509  
Ballyrock CLO, Ltd., Series 2019-2A, Class A1AR, (3-month USD-LIBOR + 1.00%) 2.478% 20301,3,10     1,290       1,270  
Bankers Healthcare Group Securitization Trust, Series 2020-A, Class A, 2.56% 20311,10     174       171  
Bankers Healthcare Group Securitization Trust, Series 2020-A, Class B, 3.59% 20311,10     300       288  
Bankers Healthcare Group Securitization Trust, Series 2020-A, Class C, 5.17% 20311,10     300       288  
Bankers Healthcare Group Securitization Trust, Series 2021-A, Class A, 1.42% 20331,10     671       629  
Bankers Healthcare Group Securitization Trust, Series 2021-A, Class B, 2.79% 20331,10     4,733       4,277  
Bankers Healthcare Group Securitization Trust, Series 2021-A, Class C, 3.69% 20331,10     1,420       1,289  
Bankers Healthcare Group Securitization Trust, Series 2021-B, Class A, 0.90% 20341,10     646       613  
Bankers Healthcare Group Securitization Trust, Series 2022-A, Class A, 1.71% 20351,10     4,163       4,011  
Bankers Healthcare Group Securitization Trust, Series 2022-A, Class B, 2.70% 20351,10     5,000       4,729  
Blackbird Capital II Aircraft Lease, Ltd. / Blackbird Capital II Aircraft Lease US, LLC, Series 2021-1, Class A, 2.443% 20461,10     2,415       2,070  
Blackbird Capital II Aircraft Lease, Ltd. / Blackbird Capital II Aircraft Lease US, LLC, Series 2021-1, Class B, 3.446% 20461,10     753       608  
Carvana Auto Receivables Trust, Series 2021-N4, Class C, 1.72% 202810     757       724  
Castlelake Aircraft Securitization Trust, Series 2021-1, Class A, 2.868% 20371,10     2,613       2,314  
Castlelake Aircraft Securitization Trust, Series 2017-1R, Class A, 2.741% 20411,10     670       602  
Cent CLO, Ltd., Series 2014-21A, Class AR, (3-month USD-LIBOR + 0.97%) 2.195% 20301,3,10     1,418       1,400  
CF Hippolyta, LLC, Series 2020-1, Class A1, 1.69% 20601,10     1,574       1,428  
CF Hippolyta, LLC, Series 2020-1, Class A2, 1.99% 20601,10     321       275  
CF Hippolyta, LLC, Series 2020-1, Class B1, 2.28% 20601,10        
CF Hippolyta, LLC, Series 2021-1, Class A1, 1.53% 20611,10     96       85  
CFG Investments, Ltd., Series 2021-1, Class B, 5.82% 20321,10     3,000       2,881  
CIFC Funding, Ltd., CLO, Series 2017-1A, Class B, (3-month USD-LIBOR + 1.70%) 2.798% 20291,3,10     1,750       1,705  
CLI Funding V, LLC, Series 2020-2A, Class B, 3.56% 20451,10     232       215  
CLI Funding V, LLC, Series 2020-1A, Class B, 3.62% 20451,10     296       274  
CPS Auto Receivables Trust, Series 2021-A, Class C, 0.83% 20261,10     176       172  
CPS Auto Receivables Trust, Series 2020-B, Class C, 3.30% 20261,10     67       67  
CPS Auto Receivables Trust, Series 2020-B, Class D, 4.75% 20261,10     100       100  
CPS Auto Receivables Trust, Series 2021-B, Class C, 1.23% 20271,10     2,250       2,162  
CPS Auto Receivables Trust, Series 2021-B, Class D, 1.52% 20271,10     2,000       1,877  
CPS Auto Receivables Trust, Series 2022-B, Class D, 5.19% 20281,10     6,000       5,888  
Credit Acceptance Auto Loan Trust, Series 2021-3A, Class B, 1.38% 20301,10     2,000       1,842  
Credit Acceptance Auto Loan Trust, Series 2021-3A, Class C, 1.63% 20301,10     3,000       2,752  
Credit Acceptance Auto Loan Trust, Series 2022-1A, Class C, 5.70% 20321,10     6,000       5,985  
Credit Acceptance Auto Loan Trust, Series 2022-1A, Class D, 6.63% 20321,10     8,000       7,982  
Drive Auto Receivables Trust, Series 2020-2, Class D, 3.05% 202810     200       198  
Drivetime Auto Owner Trust, Series 2021-1A, Class C, 0.84% 20261,10     100       95  
Drivetime Auto Owner Trust, Series 2021-1A, Class D, 1.16% 20261,10     100       93  
Drivetime Auto Owner Trust, Series 2020-2A, Class D, 4.73% 20261,10     850       850  
Drivetime Auto Owner Trust, Series 2021-3A, Class C, 0.87% 20271,10     2,000       1,880  
Drivetime Auto Owner Trust, Series 2021-2A, Class C, 1.10% 20271,10     616       585  
Drivetime Auto Owner Trust, Series 2021-3A, Class D, 1.31% 20271,10     2,000       1,814  
Drivetime Auto Owner Trust, Series 2021-2A, Class D, 1.50% 20271,10     277       258  
Dryden Senior Loan Fund, Series 2017-47A, Class A2R, CLO, (3-month USD-LIBOR + 1.27%) 2.314% 20281,3,10     2,000       1,960  
Dryden Senior Loan Fund, Series 2017-47A, Class BR, CLO, (3-month USD-LIBOR + 1.47%) 2.514% 20281,3,10     2,000       1,949  
Dryden Senior Loan Fund, Series 2017-47A, Class CR, CLO, (3-month USD-LIBOR + 2.05%) 3.094% 20281,3,10     2,000       1,933  
Dryden Senior Loan Fund, Series 2013-28A, Class A2LR, CLO, (3-month USD-LIBOR + 1.65%) 3.061% 20301,3,10     3,000       2,918  
EDvestinU Private Education Loan, LLC, Series 2021-A, Class A, 1.80% 20451,10     154       137  
Exeter Automobile Receivables Trust, Series 2020-2A, Class C, 3.28% 20251,10     82       82  
Exeter Automobile Receivables Trust, Series 2020-2, Class D, 4.73% 20261,10     100       100  
Exeter Automobile Receivables Trust, Series 2022-2A, Class D, 4.56% 202810     469       446  
Exeter Automobile Receivables Trust, Series 2022-2A, Class E, 6.34% 20291,10     9,625       9,245  
Exeter Automobile Receivables Trust, Series 2022-3A, Class E, 9.09% 20301,10     10,000       10,158  
First Investors Auto Owner Trust, Series 2021-1A, Class B, 0.89% 20271,10     300       291  
First Investors Auto Owner Trust, Series 2021-1A, Class D, 1.62% 20271,10     300       281  

 

American Funds Multi-Sector Income Fund 23
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Asset-backed obligations (continued)                
FirstKey Homes Trust, Series 2022-SFR2, Class S, 5.197% 20391,10   USD 3,043     $ 2,977  
Freedom Financial, Series 2022-1FP, Class A, 0.94% 20291,10     577       571  
Freedom Financial, Series 2022-1FP, Class B, 1.91% 20291,10     2,462       2,372  
GCI Funding I, LLC, Series 2020-1, Class B, 3.81% 20451,10     129       120  
GCI Funding I, LLC, Series 2021-1, Class B, 3.04% 20461,10     2,729       2,396  
Global SC Finance SRL, Series 2021-1A, Class B, 2.76% 20411,10     1,738       1,572  
Global SC Finance V SRL, Series 2019-1A, Class B, 4.81% 20391,10     363       350  
Global SC Finance V SRL, Series 2020-1A, Class B, 3.55% 20401,10     402       377  
Global SC Finance VII SRL, Series 2021-2A, Class B, 2.49% 20411,10     721       635  
GSAMP Trust, Series 2005-SD2, Class M3, (1-month USD-LIBOR + 1.35%) 2.974% 20351,3,10     906       901  
Hertz Vehicle Financing III, LLC, Series 2021-A, Class B, 3.65% 20231,5,6,10     7,110       6,900  
Hertz Vehicle Financing III, LLC, Series 2021-1A, Class B, 1.56% 20251,10     1,220       1,129  
Hertz Vehicle Financing III, LLC, Series 2021-1A, Class C, 2.05% 20251,10     2,336       2,155  
Hertz Vehicle Financing III, LLC, Series 2022-1A, Class B, 2.19% 20261,10     1,776       1,651  
Hertz Vehicle Financing III, LLC, Series 2022-1A, Class C, 2.63% 20261,10     3,492       3,237  
Hertz Vehicle Financing III, LLC, Series 2021-2A, Class B, 2.12% 20271,10     1,317       1,165  
Hertz Vehicle Financing III, LLC, Series 2021-2A, Class C, 2.52% 20271,10     826       724  
Hertz Vehicle Financing III, LLC, Series 2022-2A, Class C, 2.95% 20281,10     4,025       3,568  
KKR Static CLO I, Ltd., Series 2022-1A, Class B, (3-month USD CME Term SOFR + 2.60%) 3.839% 20311,3,10     16,000       16,000  
LAD Auto Receivables Trust, Series 2021-1A, Class B, 1.94% 20261,10     751       706  
LAD Auto Receivables Trust, Series 2021-1A, Class C, 2.35% 20271,10     3,000       2,799  
Longfellow Place CLO, Ltd., Series 2013-1A, Class AR3, (3-month USD-LIBOR + 1.00%) 2.044% 20291,3,10     1,798       1,787  
Madison Park Funding, Ltd., CLO, Series 2015-17A, Class AR2, (3-month USD-LIBOR + 1.00%) 2.098% 20301,3,10     2,000       1,971  
Marathon CLO, Ltd., Series 2017-9A, Class A1AR, (3-month USD-LIBOR + 1.15%) 2.194% 20291,3,10     1,465       1,446  
Mercury Financial Credit Card Master Trust, Series 2021-1A, Class A, 1.54% 20261,10     1,500       1,428  
Mission Lane Credit Card Master Trust, Series 2021-A, Class A, 1.59% 20261,10     1,140       1,098  
Navient Student Loan Trust, Series 2021-FA, Class A, 1.11% 20701,10     3,247       2,847  
Navigator Aircraft ABS, Ltd., Series 2021-1, Class A, 2.771% 20461,10     3,953       3,528  
Navigator Aircraft ABS, Ltd., Series 2021-1, Class B, 3.571% 20461,10     898       707  
Nelnet Student Loan Trust, Series 2021-C, Class AFX, 1.32% 20621,10     3,313       3,045  
Nelnet Student Loan Trust, Series 2021-A, Class APT1, 1.36% 20621,10     2,981       2,760  
Nelnet Student Loan Trust, Series 2021-B, Class AFX, 1.42% 20621,10     2,482       2,303  
Nelnet Student Loan Trust, Series 2021-CA, Class C, 3.36% 20621,10     1,328       1,109  
Nelnet Student Loan Trust, Series 2021-CA, Class D, 4.44% 20621,10     1,889       1,604  
New Economy Assets Phase 1 Issuer, LLC, Series 2021-1, Class A1, 1.91% 20611,10     4,653       4,067  
Newark BSL CLO 2, Ltd., Series 2017-1A, Class A1R, (3-month USD-LIBOR + 0.97%) 2.154% 20301,3,10     640       631  
OCP CLO, Ltd., Series 2016-11A, Class A2R, (3-month USD-LIBOR + 1.75%) 2.964% 20301,3,10     1,000       970  
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class A, 1.59% 20271,10     2,475       2,256  
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class B, 2.28% 20271,10     1,167       1,043  
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class C, 2.97% 20271,10     1,150       1,028  
OnDeck Asset Securitization Trust, LLC, Series 2021-1A, Class D, 4.94% 20271,10     1,150       1,030  
Oportun Funding, LLC, Series 2021-A, Class A, 1.21% 20281,10     2,722       2,549  
Oportun Funding, LLC, Series 2021-B, Class A, 1.47% 20311,10     1,727       1,603  
Oportun Funding, LLC, Series 2021-B, Class B, 1.96% 20311,10     2,958       2,719  
Oportun Funding, LLC, Series 2021-B, Class C, 3.65% 20311,10     2,525       2,368  
Oportun Funding, LLC, Series 2022-A, Class B, 5.25% 20311,10     8,500       8,223  
Oportun Funding, LLC, Series 2021-B, Class D, 5.41% 20311,10     1,000       947  
Palmer Square Loan Funding, CLO, Series 2021-2A, Class A1, (3-month USD-LIBOR + 0.80%) 2.278% 20291,3,10     367       362  
Palmer Square Loan Funding, CLO, Series 2021-1, Class A2, (3-month USD-LIBOR + 1.25%) 2.313% 20291,3,10     500       486  
Palmer Square Loan Funding, CLO, Series 2021-1, Class B, (3-month USD-LIBOR + 1.80%) 2.863% 20291,3,10     890       860  
Palmer Square Loan Funding, CLO, Series 2021-2A, Class B, (3-month USD-LIBOR + 1.40%) 2.878% 20291,3,10     500       479  
Palmer Square Loan Funding, CLO, Series 2021-4A, Class A2, (3-month USD-LIBOR + 1.40%) 2.444% 20291,3,10     4,278       4,144  
Palmer Square Loan Funding, CLO, Series 2021-2A, Class A2, (3-month USD-LIBOR + 1.25%) 2.728% 20291,3,10     1,000       968  

 

24 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Asset-backed obligations (continued)                
Race Point CLO, Ltd., Series 2015-9A, Class A1A2, (3-month USD-LIBOR + 0.94%) 1.984% 20301,3,10   USD 1,266     $ 1,245  
Regatta VIII Funding, Ltd., CLO, Series 2017-1A, Class B, (3-month USD-LIBOR + 1.70%) 2.744% 20301,3,10     3,000       2,915  
Rockford Tower CLO, Ltd., Series 2018-2A, Class B, (3-month USD-LIBOR + 1.80%) 2.863% 20311,3,10     1,260       1,215  
Santander Consumer Auto Receivables Trust, Series 2020-A, Class C, 3.71% 20261,10     200       199  
Santander Drive Auto Receivables Trust, Series 2021-3, Class C, 0.95% 202710     1,105       1,064  
Santander Drive Auto Receivables Trust, Series 2021-3, Class D, 1.33% 202710     1,474       1,394  
Shackleton CLO, Ltd., Series 2013-4RA, Class A2A, (3-month USD-LIBOR + 1.60%) 2.621% 20311,3,10     2,275       2,198  
SMB Private Education Loan Trust, Series 2021-A, Class APT2, 1.07% 20531,10     419       371  
SMB Private Education Loan Trust, Series 2022-A, Class D, 4.75% 20541,10     2,083       1,982  
SOLRR Aircraft Aviation Holding, Ltd., Series 2021-1, Class A, 2.636% 20461,10     2,860       2,609  
Sound Point CLO, Ltd., Series 2015-1RA, Class AR, (3-month USD-LIBOR + 1.08%) 2.124% 20301,3,10     1,050       1,037  
Sprite, Ltd., Series 2021-1, Class A, 3.75% 20461,10     1,899       1,721  
Stellar Jay Ireland DAC, Series 2021-1, Class A, 3.967% 20411,10     1,697       1,515  
Stonepeak Infrastructure Partners, Series 2021-1A, Class AA, 2.301% 20331,10     1,691       1,580  
Stonepeak Infrastructure Partners, Series 2021-1A, Class B, 3.821% 20331,10     1,554       1,425  
Stratus CLO, Series 2022-1A, Class B, (3-month USD CME Term SOFR + 2.35%) 3.551% 20301,3,10     11,140       11,140  
SuttonPark Structured Settlements, Series 2021-1, Class A, 1.95% 20751,10     3,687       3,434  
Textainer Marine Containers, Ltd., Series 2020-2A, Class B, 3.34% 20451,10     406       373  
Textainer Marine Containers, Ltd., Series 2020-1A, Class B, 4.94% 20451,10     2,296       2,206  
Textainer Marine Containers, Ltd., Series 2021-1A, Class B, 2.52% 20461,10     329       293  
Textainer Marine Containers, Ltd., Series 2021-2A, Class B, 2.82% 20461,10     907       797  
TIF Funding II, LLC, Series 2020-1A, Class B, 3.82% 20451,10     1,202       1,125  
TIF Funding II, LLC, Series 2021-1A, Class B, 2.54% 20461,10     1,958       1,688  
Triton Container Finance VIII, LLC, Series 2020-1, Class B, 3.74% 20451,10     375       338  
Triton Container Finance VIII, LLC, Series 2021-1A, Class B, 2.58% 20461,10     3,249       2,819  
Voya CLO, Ltd., Series 2016-3A, Class A3R, 2.794% 20311,3,10     1,750       1,691  
Westlake Automobile Receivables Trust, Series 2022-2A, Class D, 5.48% 20271,10     7,813       7,800  
              311,336  
                 
Bonds & notes of governments & government agencies outside the U.S. 9.25%                
Abu Dhabi (Emirate of) 2.50% 20291     4,000       3,682  
Abu Dhabi (Emirate of) 1.70% 20311     7,800       6,564  
Abu Dhabi (Emirate of) 3.875% 2050     3,700       3,296  
Angola (Republic of) 8.00% 2029     9,440       7,500  
Argentine Republic 1.00% 2029     5,233       1,203  
Argentine Republic 0.50% 2030 (0.75% on 7/9/2023)4     22,185       5,262  
Argentine Republic 1.125% 2035 (1.50% on 7/9/2022)4     21,472       4,651  
Armenia (Republic of) 7.15% 2025     200       198  
Bahrain (Kingdom of) 6.125% 2022     250       250  
Bahrain (Kingdom of) 6.125% 2023     1,300       1,310  
Belarus (Republic of) 6.875% 2023     460       87  
Belarus (Republic of) 5.875% 2026     6,100       1,007  
Chile (Republic of) 3.10% 2041     3,600       2,748  
Chile (Republic of) 4.34% 2042     1,815       1,619  
Colombia (Republic of) 4.50% 2029     300       260  
Colombia (Republic of) 3.00% 2030     3,276       2,499  
Colombia (Republic of) 3.125% 2031     1,311       969  
Colombia (Republic of) 3.25% 2032     3,200       2,320  
Colombia (Republic of) 7.375% 2037     300       278  
Colombia (Republic of) 5.625% 2044     902       651  
Colombia (Republic of) 5.00% 2045     2,594       1,743  
Colombia (Republic of) 5.20% 2049     200       136  
Colombia (Republic of) 4.125% 2051     400       241  
Costa Rica (Republic of) 6.125% 20311     1,200       1,123  
Costa Rica (Republic of) 6.125% 2031     728       681  
Costa Rica (Republic of) 7.158% 2045     1,200       1,048  
Cote d’Ivoire (Republic of) 5.75% 20324     784       681  
Development Bank of Mongolia, LLC 7.25% 2023     3,000       2,903  
Dominican Republic 5.50% 2025     1,400       1,393  
Dominican Republic 6.875% 2026     1,000       1,023  

 

American Funds Multi-Sector Income Fund 25
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Bonds & notes of governments & government agencies outside the U.S. (continued)                
Dominican Republic 5.95% 2027   USD 1,650     $ 1,579  
Dominican Republic 4.50% 20301     5,789       4,663  
Dominican Republic 6.00% 20331     1,285       1,074  
Dominican Republic 5.30% 20411     412       287  
Dominican Republic 6.85% 2045     1,100       873  
Dominican Republic 5.875% 2060     4,900       3,365  
Dominican Republic 5.875% 20601     1,700       1,168  
Egypt (Arab Republic of) 6.588% 2028     2,800       2,037  
Egypt (Arab Republic of) 6.588% 20281     1,200       873  
Egypt (Arab Republic of) 7.60% 2029     3,600       2,637  
Egypt (Arab Republic of) 5.875% 20311     6,930       4,325  
Egypt (Arab Republic of) 7.625% 20321     4,200       2,762  
Egypt (Arab Republic of) 8.75% 2051     1,600       968  
Egypt (Arab Republic of) 8.15% 2059     4,000       2,326  
Ethiopia (Federal Democratic Republic of) 6.625% 2024     4,000       2,290  
Export-Import Bank of India 3.25% 2030     4,100       3,570  
Gabonese Republic 6.95% 2025     2,300       2,022  
Gabonese Republic 7.00% 20311     6,000       4,394  
Gabonese Republic 7.00% 2031     2,200       1,611  
Georgia (Republic of) 2.75% 20261     2,880       2,394  
Ghana (Republic of) 0% 2025     2,000       1,139  
Ghana (Republic of) 8.125% 2026     1,210       876  
Ghana (Republic of) 6.375% 2027     5,090       2,933  
Ghana (Republic of) 6.375% 20271     4,000       2,305  
Ghana (Republic of) 7.75% 20291     5,100       2,562  
Ghana (Republic of) 8.125% 2032     3,900       1,898  
Ghana (Republic of) 8.125% 20321     1,500       730  
Ghana (Republic of) 8.95% 2051     1,500       714  
Honduras (Republic of) 6.25% 2027     960       755  
Honduras (Republic of) 5.625% 20301     6,175       4,190  
Honduras (Republic of) 5.625% 2030     648       440  
Indonesia (Republic of) 6.625% 2037     900       990  
Indonesia (Republic of) 5.25% 2042     300       294  
Indonesia (Republic of) 4.625% 2043     5,800       5,274  
Israel (State of) 3.375% 2050     2,500       2,027  
Jordan (Hashemite Kingdom of) 5.75% 20271     2,500       2,203  
Jordan (Hashemite Kingdom of) 5.85% 20301     3,750       2,981  
Kazakhstan (Republic of) 4.875% 2044     3,200       2,674  
Kenya (Republic of) 6.875% 20241     200       168  
Kenya (Republic of) 7.25% 2028     3,100       2,250  
Kenya (Republic of) 7.25% 20281     2,600       1,887  
Kenya (Republic of) 6.30% 20341     2,700       1,693  
Kenya (Republic of) 8.25% 2048     1,200       741  
Mozambique (Republic of) 5.00% 2031 (9.00% on 9/15/2023)4     5,260       3,827  
Oman (Sultanate of) 5.375% 2027     9,000       8,767  
Pakistan (Islamic Republic of) 5.625% 2022     1,300       1,222  
Pakistan (Islamic Republic of) 8.25% 2024     400       313  
Pakistan (Islamic Republic of) 6.00% 20261     3,510       2,386  
Pakistan (Islamic Republic of) 6.875% 2027     3,850       2,627  
Panama (Republic of) 7.125% 2026     200       218  
Panama (Republic of) 3.16% 2030     400       356  
Panama (Republic of) 4.50% 2050     2,400       1,959  
Panama (Republic of) 4.30% 2053     2,800       2,206  
Panama (Republic of) 3.87% 2060     1,200       852  
Panama (Republic of) 4.50% 2063     3,545       2,737  
Paraguay (Republic of) 4.70% 20271     400       385  
Paraguay (Republic of) 4.95% 2031     6,150       5,699  
Peru (Republic of) 4.125% 2027     300       295  
Peru (Republic of) 2.783% 2031     2,200       1,876  
Peru (Republic of) 3.00% 2034     990       815  
Peru (Republic of) 6.55% 2037     1,000       1,087  
Peru (Republic of) 3.55% 2051     1,200       900  
Peru (Republic of) 2.78% 2060     1,699       1,056  
Peru (Republic of) 3.23% 2121     1,400       862  
PETRONAS Capital, Ltd. 3.50% 2030     1,900       1,789  
PETRONAS Capital, Ltd. 3.50% 20301     1,100       1,036  
PETRONAS Capital, Ltd. 4.55% 20501     800       766  

 

26 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Bonds & notes of governments & government agencies outside the U.S. (continued)                
Philippines (Republic of) 3.00% 2028   USD 2,800     $ 2,656  
Philippines (Republic of) 1.648% 2031     1,200       966  
Philippines (Republic of) 3.95% 2040     3,600       3,141  
Philippines (Republic of) 3.70% 2042     2,500       2,071  
Philippines (Republic of) 2.95% 2045     7,600       5,475  
Qatar (State of) 3.75% 20301     4,700       4,670  
Qatar (State of) 4.625% 2046     1,500       1,494  
Qatar (State of) 5.103% 2048     1,600       1,680  
Qatar (State of) 4.40% 20501     4,100       3,923  
Romania 2.00% 2032   EUR 3,300       2,368  
Romania 2.00% 2033     2,720       1,855  
Romania 3.50% 2034     30       23  
Romania 5.125% 2048   USD 400       312  
Romania 5.125% 20481     300       234  
Russian Federation 4.75% 20269     1,600       448  
Russian Federation 4.25% 20279     6,200       1,705  
Russian Federation 4.375% 2029     1,000       235  
Russian Federation 5.10% 2035     6,400       1,523  
Russian Federation 5.25% 20475,9     2,000       570  
Senegal (Republic of) 4.75% 2028   EUR 1,500       1,281  
Senegal (Republic of) 4.75% 2028     1,000       854  
South Africa (Republic of) 4.875% 2026   USD 2,500       2,376  
South Africa (Republic of) 4.30% 2028     2,200       1,885  
South Africa (Republic of) 5.875% 2030     500       452  
South Africa (Republic of) 5.875% 2032     6,600       5,650  
South Africa (Republic of) 6.30% 2048     3,800       2,840  
Sri Lanka (Democratic Socialist Republic of) 5.75% 20239     2,798       908  
Sri Lanka (Democratic Socialist Republic of) 6.125% 20259     2,300       766  
Sri Lanka (Democratic Socialist Republic of) 6.85% 20259     9,400       3,100  
Sri Lanka (Democratic Socialist Republic of) 6.20% 20279     1,780       579  
Sri Lanka (Democratic Socialist Republic of) 7.55% 2030     600       194  
Srpska (Republic of) 4.75% 2026   EUR 835       891  
Tunisia (Republic of) 6.75% 2023     200       146  
Tunisia (Republic of) 5.75% 2025   USD 6,490       3,628  
Turkey (Republic of) 6.375% 2025     1,200       1,066  
Turkey (Republic of) 5.125% 20261     4,000       3,578  
Turkey (Republic of) 7.625% 2029     2,450       2,071  
Turkey (Republic of) 5.875% 2031     4,050       2,916  
Turkey (Republic of) 6.50% 2033     2,000       1,438  
Turkey (Republic of) 6.00% 2041     200       128  
Turkey (Republic of) 5.75% 2047     4,300       2,659  
Ukraine 8.994% 2024     6,377       1,686  
Ukraine 7.75% 2026     4,500       1,170  
Ukraine 7.75% 2027     200       52  
Ukraine 9.75% 2028     200       51  
Ukraine 6.876% 20291     4,800       1,189  
Ukraine 7.375% 2032     4,500       1,127  
United Mexican States 3.75% 2028     200       192  
United Mexican States 4.50% 2029     4,100       3,989  
United Mexican States 2.659% 2031     649       536  
United Mexican States 3.50% 2034     7,500       6,214  
United Mexican States 6.75% 2034     2,000       2,183  
United Mexican States 6.05% 2040     3,600       3,551  
United Mexican States 4.75% 2044     200       167  
United Mexican States 5.00% 2051     1,200       1,000  
United Mexican States 4.40% 2052     550       415  
United Mexican States 3.75% 2071     1,170       747  
              287,328  

 

American Funds Multi-Sector Income Fund 27
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
Municipals 1.13%                
California 0.11%                
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2021-B-1, 1.85% 2031   USD 165     $ 162  
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2021-B, 2.746% 2034     65       56  
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2021-A-1, 3.487% 2036     1,490       1,255  
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2021-A-1, 3.714% 2041     2,235       1,821  
Regents of the University of California, General Rev. Bonds, Series 2020-BG, 1.614% 2030     35       29  
              3,323  
                 
Florida 0.00%                
County of Broward, Airport System Rev. Ref. Bonds, Series 2019-C, 3.477% 2043     75       63  
                 
                 
Illinois 0.14%                
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2018-A, Assured Guaranty Municipal insured, 5.00% 2034     150       154  
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2022-A, 4.00% 2047     4,020       3,522  
G.O. Bonds, Series 2017-A, 5.00% 2022     270       273  
G.O. Bonds, Pension Funding, Series 2003, 5.10% 2033     90       91  
Metropolitan Pier and Exposition Auth., McCormick Place Expansion Project Rev. Ref. Bonds, Capital Appreciation Bonds, Series 2017-A, Assured Guaranty Municipal insured, 0% 2056     1,810       336  
              4,376  
                 
Kansas 0.09%                
City of Manhattan, Health Care Facs. Rev. Bonds (Meadowlark Hills), Series 2021-B, 2.44% 2025     2,760       2,673  
                 
                 
Ohio 0.21%                
Cleveland-Cuyahoga Port Auth., Federal Lease Rev. Bonds (VA Cleveland Health Care Center Project), Series 2021, 4.425% 2031     6,385       5,987  
Higher Educational Facs. Commission, Healthcare Fac. Rev. Bonds (Judson Obligated Group 2020 Project), Series 2020-A, 3.75% 2023     605       600  
              6,587  
                 
Puerto Rico 0.52%                
G.O. Restructured Bonds, Series 2022-A-1, 5.25% 2023     980       998  
G.O. Restructured Bonds, Series 2022-A-1, 5.375% 2025     977       1,015  
G.O. Restructured Bonds, Series 2022-A-1, 5.625% 2027     968       1,031  
G.O. Restructured Bonds, Series 2022-A-1, 5.625% 2029     953       1,025  
G.O. Restructured Bonds, Series 2022-A-1, 5.75% 2031     925       1,013  
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 2033     877       806  
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 2035     789       708  
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 2037     677       601  
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 2041     920       799  
G.O. Restructured Bonds, Series 2022-A-1, 4.00% 2046     957       806  
G.O. Restructured Bonds, Capital Appreciation Bonds, Series 2022-A-1, 0% 2024     451       413  
G.O. Restructured Bonds, Capital Appreciation Bonds, Series 2022-A-1, 0% 2033     1,129       636  
G.O. Restructured Bonds, Capital Appreciation Bonds, Series 2022-A-1, 0% 2043     4,369       2,179  
Sales Tax Fncg. Corp., Sales Tax Rev. Restructured Bonds, Capital Appreciation Bonds, Series 2018-A-1, 0% 2051     20,000       4,002  
              16,032  
                 
Washington 0.06%                
Econ. Dev. Fin. Auth., Environmental Facs. Rev. Bonds (North Pacific Paper Co. Recycling Project), Series 2020-B, 9.00% 20361     2,000       1,993  
                 
Total municipals             35,047  

 

28 American Funds Multi-Sector Income Fund
Bonds, notes & other debt instruments (continued)   Principal amount
(000)
    Value
(000)
 
U.S. Treasury bonds & notes 0.97%                
U.S. Treasury 0.97%                
U.S. Treasury 0.25% 202411   USD 13     $ 12  
U.S. Treasury 0.375% 202411     60       57  
U.S. Treasury 0.375% 2024     54       51  
U.S. Treasury 0.625% 202411     106       100  
U.S. Treasury 0.75% 202411     2,056       1,949  
U.S. Treasury 1.00% 202411     613       584  
U.S. Treasury 2.50% 2024     358       355  
U.S. Treasury 2.875% 2025     250       249  
U.S. Treasury 0.75% 202611     1,418       1,291  
U.S. Treasury 0.875% 202611     10       9  
U.S. Treasury 0.50% 202711     118       104  
U.S. Treasury 2.625% 202711     4,338       4,256  
U.S. Treasury 1.875% 203211     331       299  
U.S. Treasury 2.875% 203211     8,363       8,263  
U.S. Treasury 2.375% 204211     378       319  
U.S. Treasury 3.25% 2042     155       151  
U.S. Treasury 2.25% 205211     15,007       12,296  
              30,345  
                 
Total bonds, notes & other debt instruments (cost: $3,545,625,000)             3,022,340  
                 
Convertible bonds & notes 0.00%                
Energy 0.00%                
Mesquite Energy, Inc., convertible notes, 13.14% Cash 20231,5,6,7     3       3  
                 
Total convertible bonds & notes (cost: $3,000)             3  
                 
      Shares          
Common stocks 0.20%                
Energy 0.20%                
Chesapeake Energy Corp.     75,595       6,131  
California Resources Corp.     633       24  
Mesquite Energy, Inc.5,6,12     127       1  
              6,156  
                 
Consumer discretionary 0.00%                
NMG Parent, LLC12     309       55  
MYT Holding Co., Class B5,6,12     8,984       16  
              71  
                 
Total common stocks (cost: $3,902,000)             6,227  
                 
Preferred securities 0.00%                
Industrials 0.00%                
ACR III LSC Holdings, LLC, Series B, preferred shares1,5,6,12     5       2  
                 
Total preferred securities (cost: $5,000)             2  
                 
Rights & warrants 0.00%                
Consumer discretionary 0.00%                
NMG Parent, LLC, warrants, expire 20275,12     374       18  
                 
Total rights & warrants (cost: $2,000)             18  
                 
Short-term securities 2.96%                
Money market investments 2.96%                
Capital Group Central Cash Fund 1.38%13,14     919,818       91,963  
                 
Total short-term securities (cost: $91,973,000)             91,963  
Total investment securities 100.43% (cost: $3,641,510,000)             3,120,553  
Other assets less liabilities (0.43)%             (13,498 )
                 
Net assets 100.00%           $ 3,107,055  

 

American Funds Multi-Sector Income Fund 29

Futures contracts

 

Contracts   Type   Number of
contracts
  Expiration   Notional
amount
(000)
    Value and
unrealized
(depreciation)
appreciation
at 6/30/2022
(000)
 
90 Day Eurodollar Futures   Long   3,288   September 2023   USD 795,326     $ (19,518 )
90 Day Eurodollar Futures   Short   3,597   December 2023     (871,418 )     18,942  
2 Year U.S. Treasury Note Futures   Short   2,547   September 2022     (534,910 )     (84 )
5 Year U.S. Treasury Note Futures   Short   6,319   September 2022     (709,308 )     6,537  
10 Year Euro-Bund Futures   Short   34   September 2022     (5,301 )     2  
10 Year U.S. Treasury Note Futures   Long   781   September 2022     92,573       (625 )
10 Year Ultra U.S. Treasury Note Futures   Short   852   September 2022     (108,523 )     (1,106 )
20 Year U.S. Treasury Bond Futures   Long   894   September 2022     123,931       (1,654 )
30 Year Ultra U.S. Treasury Bond Futures   Long   326   September 2022     50,316       (1,148 )
                        $ 1,346  

 

Forward currency contracts

 

Contract amount           Unrealized
appreciation
(depreciation)
 
Currency purchased
(000)
  Currency sold
(000)
  Counterparty   Settlement
date
  at 6/30/2022
(000)
 
USD 6,597   EUR 6,168   Standard Chartered Bank   7/11/2022     $ 129  
EUR 345   USD 365   Bank of New York Mellon   7/11/2022       (3 )
EUR 85   USD 91   Standard Chartered Bank   7/13/2022       (2 )
USD 16   EUR 15   UBS AG   7/27/2022      
EUR 190   USD 200   UBS AG   7/27/2022       (1 )
                      $ 123  

 

Swap contracts

 

Credit default swaps

 

Centrally cleared credit default swaps on credit indices — buy protection

 

Reference
index
  Financing
rate paid
  Payment
frequency
  Expiration
date
  Notional
amount
(000)
    Value at
6/30/2022
(000)
    Upfront
premium
received
(000)
    Unrealized
appreciation
at 6/30/2022
(000)
 
CDX.NA.HY.38   5.00%   Quarterly   6/20/2027   USD 320,265     $ 9,646     $ (3,318 )   $ 12,964  
CDX.NA.IG.38   1.00%   Quarterly   6/20/2027     20,960       9       (289 )     298  
                        $ 9,655     $ (3,607 )   $ 13,262  

 

Total return swaps

 

Bilateral total return swaps – receive total return

 

Reference index   Financing
rate paid
  Payment
frequency
  Counterparty   Expiration
date
  Notional
amount
(000)
    Value at
6/30/2022
(000)
    Upfront
premium
paid
(000)
    Unrealized
depreciation
at 6/30/2022
(000)
 
iBoxx USD Liquid HY Index   SOFR   Quarterly   Morgan Stanley   9/20/2022   USD 750     $ (18 )   $     $ (18 )

 

30 American Funds Multi-Sector Income Fund

Investments in affiliates14

 

    Value of
affiliate at
1/1/2022
(000)
    Additions
(000)
    Reductions
(000)
    Net
realized
loss
(000)
    Net
unrealized
depreciation
(000)
    Value of
affiliate at
6/30/2022
(000)
    Dividend
income
(000)
 
Short-term securities 2.96%                                                        
Money market investments 2.96%                                                        
Capital Group Central Cash Fund 1.38%13   $ 143,838     $ 517,750     $ 569,588     $ (16 )   $ (21 )   $ 91,963     $ 223  

 

1 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 $1,878,462,000, which represented 60.46% of the net assets of the fund.
2 Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $44,793,000, which represented 1.44% of the net assets of the fund.
3 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.
4 Step bond; coupon rate may change at a later date.
5 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $53,767,000, which represented 1.73% of the net assets of the fund.
6 Value determined using significant unobservable inputs.
7 Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Payment methods and rates are as of the most recent payment when available.
8 Amount less than one thousand.
9 Scheduled interest and/or principal payment was not received.
10 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
11 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $19,797,000, which represented .64% of the net assets of the fund.
12 Security did not produce income during the last 12 months.
13 Rate represents the seven-day yield at 6/30/2022.
14 Part of the same “group of investment companies” as the fund as defined under the Investment Company Act of 1940, as amended.

 

Key to abbreviations

Auth. = Authority

CLO = Collateralized Loan Obligations

CME = CME Group

CMO = Collateralized Mortgage Obligations

DAC = Designated Activity Company

Dev. = Development

Econ. = Economic

EUR = Euros

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LIBOR = London Interbank Offered Rate

Ref. = Refunding

REIT = Real Estate Investment Trust

Rev. = Revenue

SOFR = Secured Overnight Financing Rate

USD = U.S. dollars

Refer to the notes to financial statements.

 

American Funds Multi-Sector Income Fund 31

Financial statements

 

Statement of assets and liabilities unaudited
at June 30, 2022 (dollars in thousands)

 

Assets:                
Investment securities, at value:                
Unaffiliated issuers (cost: $3,549,537)   $ 3,028,590          
Affiliated issuers (cost: $91,973)     91,963     $ 3,120,553  
Cash             137  
Cash collateral pledged for futures contracts             3,761  
Cash collateral pledged for swap contracts             7,796  
Unrealized appreciation on open forward currency contracts             129  
Receivables for:                
Sales of investments     2,389          
Sales of fund’s shares     6,776          
Dividends and interest     37,985          
Variation margin on futures contracts     5,284          
Variation margin on centrally cleared swap contracts     685       53,119  
              3,185,495  
Liabilities:                
Unrealized depreciation on open forward currency contracts             6  
Bilateral total return swaps, at value             18  
Unrealized depreciation on unfunded commitments             *
Payables for:                
Purchases of investments     63,694          
Repurchases of fund’s shares     3,589          
Dividends on fund’s shares     120          
Investment advisory services     861          
Services provided by related parties     253          
Trustees’ deferred compensation     3          
Variation margin on futures contracts     9,837          
Variation margin on centrally cleared swap contracts     42          
Other     17       78,416  
Net assets at June 30, 2022           $ 3,107,055  
                 
Net assets consist of:                
Capital paid in on shares of beneficial interest           $ 3,610,966  
Total accumulated loss             (503,911 )
Net assets at June 30, 2022           $ 3,107,055  

 

* Amount less than one thousand.

 

Refer to the notes to financial statements.

 

32 American Funds Multi-Sector Income Fund

Financial statements (continued)

 

Statement of assets and liabilities unaudited
at June 30, 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 (341,710 total shares outstanding)

 

    Net assets     Shares
outstanding
    Net asset
value per share
 
Class A   $ 614,398       67,571     $ 9.09  
Class C     16,606       1,826       9.09  
Class T     24       3       9.09  
Class F-1     13,929       1,532       9.09  
Class F-2     754,307       82,958       9.09  
Class F-3     336,679       37,027       9.09  
Class 529-A     9,759       1,073       9.09  
Class 529-C     608       67       9.09  
Class 529-E     183       20       9.09  
Class 529-T     26       3       9.09  
Class 529-F-1     26       3       9.09  
Class 529-F-2     3,289       362       9.09  
Class 529-F-3     9       1       9.09  
Class R-1     71       8       9.09  
Class R-2     1,099       121       9.09  
Class R-2E     24       3       9.09  
Class R-3     1,265       139       9.09  
Class R-4     972       107       9.09  
Class R-5E     478       52       9.09  
Class R-5     203       22       9.09  
Class R-6     1,353,100       148,812       9.09  

 

Refer to the notes to financial statements.

 

American Funds Multi-Sector Income Fund 33

Financial statements (continued)

 

Statement of operations unaudited
for the six months ended June 30, 2022 (dollars in thousands)

 

Investment income:                
Income:                
Interest from unaffiliated issuers   $ 75,548          
Dividends (includes $223 from affiliates)     537     $ 76,085  
Fees and expenses*:                
Investment advisory services     6,245          
Distribution services     1,127          
Transfer agent services     635          
Administrative services     485          
529 plan services     4          
Reports to shareholders     56          
Registration statement and prospectus     522          
Trustees’ compensation     5          
Auditing and legal     5          
Custodian     18          
Other     15          
Total fees and expenses before waiver     9,117          
Less waiver of fees and expenses:                
Investment advisory services waiver     106          
Total fees and expenses after waiver             9,011  
Net investment income             67,074  
                 
Net realized loss and unrealized depreciation:                
Net realized (loss) gain on:                
Investments:                
Unaffiliated issuers     (37,562 )        
Affiliated issuers     (16 )        
Futures contracts     27,152          
Forward currency contracts     819          
Swap contracts     2,929          
Currency transactions     (33 )     (6,711 )
Net unrealized (depreciation) appreciation on:                
Investments:                
Unaffiliated issuers     (524,623 )        
Affiliated issuers     (21 )        
Futures contracts     4,864          
Forward currency contracts     128          
Swap contracts     13,163          
Currency translations     9       (506,480 )
Net realized loss and unrealized depreciation             (513,191 )
                 
Net decrease in net assets resulting from operations           $ (446,117 )

 

* Additional information related to class-specific fees and expenses is included in the notes to financial statements.

 

Refer to the notes to financial statements.

 

34 American Funds Multi-Sector Income Fund

Financial statements (continued)

 

Statements of changes in net assets  
  (dollars in thousands)

 

    Six months ended
June 30, 2022*
    Year ended
December 31, 2021
 
Operations:                
Net investment income   $ 67,074     $ 73,700  
Net realized (loss) gain     (6,711 )     25,430  
Net unrealized depreciation     (506,480 )     (24,476 )
Net (decrease) increase in net assets resulting from operations     (446,117 )     74,654  
                 
Distributions paid or accrued to shareholders     (62,408 )     (95,868 )
                 
Net capital share transactions     319,764       2,761,750  
                 
Total (decrease) increase in net assets     (188,761 )     2,740,536  
                 
Net assets:                
Beginning of period     3,295,816       555,280  
End of period   $ 3,107,055     $ 3,295,816  

 

 

Refer to the notes to financial statements.

 

American Funds Multi-Sector Income Fund 35
Notes to financial statements unaudited

 

1. Organization

 

American Funds Multi-Sector Income 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 to provide a high level of current income. Its secondary investment objective is capital appreciation.

 

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 3.75% 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) are allocated daily among the various share classes based on the relative value of their settled shares. 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 or accrued to shareholders — Income dividends are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Capital gain distributions are recorded on the ex-dividend date.

 

36 American Funds Multi-Sector Income 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 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 prices obtained from one or more 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

 

When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.

 

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 Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement 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 one or more pricing vendors. Credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency. Total return swaps are generally valued by pricing vendors which consider dealer quotes of the underlying asset along with other standard market and reference data inputs.

 

American Funds Multi-Sector Income Fund 37

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 authority of the fund’s 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; 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 and 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 delegated authority to 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 teams. 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 following tables present the fund’s valuation levels as of June 30, 2022 (dollars in thousands):

 

    Investment securities  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Bonds, notes & other debt instruments:                                
Corporate bonds, notes & loans   $     $ 1,951,524     $ 6,165     $ 1,957,689  
Mortgage-backed obligations           373,211       27,384       400,595  
Asset-backed obligations           304,436       6,900       311,336  
Bonds & notes of governments & government agencies outside the U.S.           287,328             287,328  
Municipals           35,047             35,047  
U.S. Treasury bonds & notes           30,345             30,345  
Convertible bonds & notes                 3       3  
Common stocks     6,155       55       17       6,227  
Preferred securities                 2       2  
Rights & warrants           18             18  
Short-term securities     91,963                   91,963  
Total   $ 98,118     $ 2,981,964     $ 40,471     $ 3,120,553  

 

38 American Funds Multi-Sector Income Fund
    Other investments1  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Unrealized appreciation on futures contracts   $ 25,481     $     $     $ 25,481  
Unrealized appreciation on open forward currency contracts           129             129  
Unrealized appreciation on centrally cleared credit default swaps           13,262             13,262  
Liabilities:                                
Unrealized depreciation on futures contracts     (24,135 )                 (24,135 )
Unrealized depreciation on open forward currency contracts           (6 )           (6 )
Unrealized depreciation on bilateral total return swaps           (18 )           (18 )
Total   $ 1,346     $ 13,367     $     $ 14,713  

 

1 Futures contracts, forward currency contracts, credit default swaps and total return swaps are not included in the investment portfolio.

 

The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the six months ended June 30, 2022 (dollars in thousands):

 

    Beginning
value at
1/1/2022
    Transfers
into
Level 32
    Purchases     Sales     Net
realized
gain3
    Unrealized
depreciation3
    Transfers
out of
Level 32
    Ending
value at
6/30/2022
 
Investment securities   $ 16,383     $ 7,115     $ 21,798     $ (2,022 )   $ 51     $ (2,854 )   $     $ 40,471  
                                                                 
Net unrealized depreciation during the period on Level 3 investment securities held at June 30, 2022     $ (2,848 )

 

2 Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. These transfers are the result of changes in the availability of pricing sources and/or in the observability of significant inputs used in valuing the securities.
3 Net realized gain and unrealized depreciation are included in the related amounts on investments in the fund’s statement of operations.

 

Unobservable inputs — Valuation of the fund’s Level 3 securities is 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 following table provides additional information used by the fund’s investment adviser to fair value the fund’s Level 3 securities (dollars in thousands):

 

    Value at
6/30/2022
  Valuation
techniques
  Unobservable
inputs
  Range
(if applicable)
  Weighted
average
* Impact to
valuation from
an increase in
input†
Bonds, notes & other debt instruments           Expected proceeds   N/A   N/A   N/A
      Estimated recovery value   Par value   N/A   N/A   N/A
            Risk discount   1.5%   1.5%   Decrease
  $ 40,449   Yield analysis   Yield   6.5% – 13.4%   9.4%   Decrease
            N/A   N/A   N/A   N/A
        Transaction price   Net adjustment based on market comparables movement (decrease)   10%   10%   Decrease
Convertible bonds & notes     3   Transaction price   N/A   N/A   N/A   N/A
Common stocks     17   Estimated recovery value   Exchange terms   N/A   N/A   N/A
        Risk discount   90%   90%   Decrease
        Net adjustment based on market comparables (decrease)   20%   20%   Decrease
          Recent market information   Broker quote   N/A   N/A   N/A
Preferred securities     2   Market comparable companies   EV/EBITDA multiple   3.5x   3.5x   Increase
        DLOM   30%   30%   Decrease
    $ 40,471                    

 

* Weighted average is by relative fair value.
This column represents the directional change in fair value of the Level 3 securities that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.

 

Key to abbreviations

DLOM = Discount for lack of marketability

EBITDA = Earnings before income taxes, depreciation and amortization

EV = Enterprise value

 

American Funds Multi-Sector Income Fund 39

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 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; 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.

 

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 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 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 ratings of these securities.

 

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. 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.

 

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. 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 seeking to assess credit and default risks.

 

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

 

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 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 accounting and auditing practices and standards and different regulatory, legal and reporting 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. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.

 

40 American Funds Multi-Sector Income Fund

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 and accounting and auditing practices and standards 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 there may be fewer rights and remedies available to the fund and its shareholders. 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 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.

 

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

 

Currency — The prices of, and the income generated by, many debt securities held by the fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of the fund’s securities denominated in such currencies would generally fall and vice versa.

 

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, and reduced liquidity may have an adverse impact on the market price of such holdings. 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 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.

 

American Funds Multi-Sector Income Fund 41

5. Certain investment techniques

 

Loan transactions — The fund has entered into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder’s portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan’s interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.

 

Unfunded commitments — The fund has participated in transactions that involve unfunded commitments, which may obligate the fund to purchase new or additional bonds if certain contingencies are met. As of June 30, 2022, the fund’s maximum exposure of unfunded bond commitments was $3,992,000, which would represent .13% of the net assets of the fund should such commitments become due. Unrealized depreciation of less than $1,000 is disclosed as unrealized depreciation on unfunded commitments in the fund’s statement of assets and liabilities and is included in net unrealized depreciation on investments in unaffiliated issuers in the fund’s statement of operations.

 

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 $3,923,427,000.

 

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 $7,807,000.

 

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.

 

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

 

42 American Funds Multi-Sector Income Fund

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:

 

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. The average month-end notional amount of credit default swaps while held was $164,528,000.

 

Total return swaps — The fund has entered into bilateral total return swaps in order to gain exposure to a market without investing directly in such market. A total return swap is an agreement in which one party agrees to make periodic payments to the other party based on the change in market value of the assets underlying the contract in exchange for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. The fund may invest in total return swaps where the asset underlying the contract is a securities index. The average month-end notional amount of total return swaps while held was $750,000.

 

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, credit default swaps and total return swaps as of, or for the six months ended, June 30, 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*   $ 25,481     Unrealized depreciation*   $ 24,135  
Forward currency   Currency   Unrealized appreciation on open forward currency contracts     129     Unrealized depreciation on open forward currency contracts     6  
Swap (centrally cleared)   Credit   Unrealized appreciation*     13,262     Unrealized depreciation*      
Swap (bilateral)   Credit   Bilateral total return swaps, at value         Bilateral total return swaps, at value     18  
            $ 38,872         $ 24,159  

 

Refer to the end of the table for footnote.

 

American Funds Multi-Sector Income Fund 43
        Net realized gain     Net unrealized appreciation  
Contracts   Risk type   Location on statement of operations   Value     Location on statement of operations   Value  
Futures   Interest   Net realized gain on futures contracts   $ 27,152     Net unrealized appreciation on futures contracts   $ 4,864  
Forward currency   Currency   Net realized gain on forward currency contracts     819     Net unrealized appreciation on forward currency contracts     128  
Swap   Credit   Net realized gain on swap contracts     2,929     Net unrealized appreciation on swap contracts     13,163  
            $ 30,900         $ 18,155  

 

* Includes cumulative appreciation/depreciation on futures contracts 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 its use of futures contracts, forward currency contracts, credit default swaps and total return swaps. For futures contracts and centrally cleared credit default swaps, the fund pledges collateral for initial and variation margin by contract. For forward currency contracts and bilateral total return swaps, the fund either receives or pledges collateral based on the net gain or loss on unsettled contracts by counterparty. 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 and bilateral total return swaps, 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.

 

The following table presents the fund’s forward currency contracts and bilateral total return swaps 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 June 30, 2022, if close-out netting was exercised (dollars in thousands):

 

    Gross amounts
recognized in the
    Gross amounts not offset in the
statement of assets and liabilities and
subject to a master netting agreement
       
Counterparty   statement of assets
and liabilities
    Available
to offset
    Non-cash
collateral*
    Cash
collateral*
    Net
amount
 
Assets:                                        
Standard Chartered Bank   $ 129     $ (2 )   $     $     $ 127  
UBS AG     †      †                   
Total   $ 129     $ (2 )   $     $     $ 127  
Liabilities:                                        
Bank of New York Mellon   $ 3     $     $     $     $ 3  
Morgan Stanley     18                         18  
Standard Chartered Bank     2       (2 )                  
UBS AG     1       †                  1  
Total   $ 24     $ (2 )   $     $     $ 22  

 

* Non-cash collateral is shown on a settlement basis.
Amount less than one thousand.

 

44 American Funds Multi-Sector Income Fund

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 period ended June 30, 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 period, 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. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. 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.

 

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; cost of investments sold 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.

 

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of December 31, 2021, the components of distributable earnings on a tax basis were as follows (dollars in thousands):

 

Undistributed ordinary income   $ 1,868  
Post-October capital loss deferral*     (214 )

 

* This deferral is considered incurred in the subsequent year.

 

As of June 30, 2022, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

 

Gross unrealized appreciation on investments   $ 42,588  
Gross unrealized depreciation on investments     (550,500 )
Net unrealized depreciation on investments     (507,912 )
Cost of investments     3,646,785  

 

American Funds Multi-Sector Income Fund 45

Distributions paid or accrued were characterized for tax purposes as follows (dollars in thousands):

 

    Six months ended June 30, 2022     Year ended December 31, 2021  
Share class   Ordinary
income
    Long-term
capital gains
    Total
distributions
paid or
accrued
    Ordinary
income
    Long-term
capital gains
    Total
distributions
paid or
accrued
 
Class A   $ 11,834     $     $ 11,834     $ 19,707     $ 1,823     $ 21,530  
Class C     278             278       545       63       608  
Class T     †            †      1       †      1  
Class F-1     266             266       427       39       466  
Class F-2     15,156             15,156       20,378       2,162       22,540  
Class F-3     6,478             6,478       7,841       799       8,640  
Class 529-A     178             178       227       26       253  
Class 529-C     9             9       12       2       14  
Class 529-E     4             4       7       1       8  
Class 529-T     1             1       1       †      1  
Class 529-F-1     1             1       1       †      1  
Class 529-F-2     66             66       67       8       75  
Class 529-F-3     †            †      †      †      † 
Class R-1     1             1       4       †      4  
Class R-2     18             18       23       4       27  
Class R-2E     1             1       1       †      1  
Class R-3     21             21       32       3       35  
Class R-4     35             35       80       6       86  
Class R-5E     9             9       19       1       20  
Class R-5     6             6       6       1       7  
Class R-6     28,046             28,046       37,647       3,904       41,551  
Total   $ 62,408     $     $ 62,408     $ 87,026     $ 8,842     $ 95,868  

 

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.

 

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 0.440% on the first $1.5 billion of daily net assets and decreasing to 0.390% on such assets in excess of $1.5 billion. On March 9, 2022, the fund’s board of trustees approved an amended investment advisory and service agreement effective May 1, 2022, replacing the prior series of rates and breakpoints with a new series of decreasing annual rates beginning with 0.332% on the first $15.0 billion of daily net assets and decreasing to 0.300% on such assets in excess of $15.0 billion. CRMC waived investment advisory services fees of $106,000 in advance of the amended investment advisory agreement. CRMC does not intend to recoup this waiver. As a result, the fees shown on the fund’s statement of operations of $6,245,000, which were equivalent to an annualized rate of 0.386% of average daily net assets, were reduced to $6,139,000, which were equivalent to an annualized rate of 0.380% of average daily net assets.

 

46 American Funds Multi-Sector Income Fund

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 0.30% 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 June 30, 2022, unreimbursed expenses subject to reimbursement totaled $865,000 for Class A shares. There were no unreimbursed expenses subject to reimbursement for Class 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.

 

The quarterly fees are 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 $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 six months ended June 30, 2022, the 529 plan services fees were $4,000, which were equivalent to 0.056% of the average daily net assets of each 529 share class.

 

American Funds Multi-Sector Income Fund 47

For the six months ended June 30, 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     $987       $228       $99     Not applicable  
Class C     97       7       3     Not applicable  
Class T           *     *   Not applicable  
Class F-1     19       9       2     Not applicable  
Class F-2     Not applicable       378       118     Not applicable  
Class F-3     Not applicable             49     Not applicable  
Class 529-A     11       3       1     $3  
Class 529-C     3       *     *   *
Class 529-E     1       *     *   *
Class 529-T           *     *   *
Class 529-F-1           *     *   *
Class 529-F-2     Not applicable       1       1     1  
Class 529-F-3     Not applicable       *     *   *
Class R-1     *     *     *   Not applicable  
Class R-2     4       1       *   Not applicable  
Class R-2E     *     *     *   Not applicable  
Class R-3     3       1       *   Not applicable  
Class R-4     2       1       *   Not applicable  
Class R-5E     Not applicable       *     *   Not applicable  
Class R-5     Not applicable       *     *   Not applicable  
Class R-6     Not applicable       6       212     Not applicable  
Total class-specific expenses     $1,127       $635       $485     $4  

 

* 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 in the fund’s statement of operations reflects the current fees (either paid in cash or deferred) and a net increase or decrease 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.

 

Investment in CCF — The fund holds shares of CCF, an institutional prime money market fund managed by CRMC. 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. 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 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 six months ended June 30, 2022, the fund engaged in such purchase and sale transactions with related funds in the amounts of $445,000 and $16,400,000, respectively, which generated $483,000 of net realized losses from such sales.

 

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 six months ended June 30, 2022.

 

48 American Funds Multi-Sector Income Fund

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 increase
(decrease)
 
Share class   Amount     Shares     Amount     Shares     Amount     Shares     Amount     Shares  
                                                 
Six months ended June 30, 2022                                    
                                                                 
Class A   $ 108,837       10,862     $ 11,689       1,198     $ (82,769 )     (8,468 )   $ 37,757       3,592  
Class C     5,170       514       274       28       (9,326 )     (928 )     (3,882 )     (386 )
Class T                                                
Class F-1     3,749       369       262       27       (2,276 )     (231 )     1,735       165  
Class F-2     247,398       25,127       14,931       1,531       (188,242 )     (19,342 )     74,087       7,316  
Class F-3     123,351       12,397       6,249       642       (38,970 )     (3,980 )     90,630       9,059  
Class 529-A     2,497       250       178       18       (1,014 )     (102 )     1,661       166  
Class 529-C     143       14       9       1       (99 )     (10 )     53       5  
Class 529-E     18       2       4       †      (36 )     (4 )     (14 )     (2 )
Class 529-T                 1       †                  1       † 
Class 529-F-1                 1       †                  1       † 
Class 529-F-2     919       90       65       7       (267 )     (27 )     717       70  
Class 529-F-3                 †      †                  †      † 
Class R-1     7       1       1       †      (2 )     †      6       1  
Class R-2     200       21       17       2       (324 )     (32 )     (107 )     (9 )
Class R-2E     †      †      †      †      (7 )     †      (7 )     † 
Class R-3     726       73       20       2       (500 )     (51 )     246       24  
Class R-4     456       44       34       4       (1,324 )     (138 )     (834 )     (90 )
Class R-5E     75       7       9       1       (17 )     (2 )     67       6  
Class R-5     88       8       6       †      (198 )     (20 )     (104 )     (12 )
Class R-6     100,104       9,951       28,031       2,875       (10,384 )     (1,113 )     117,751       11,713  
Total net increase (decrease)   $ 593,738       59,730     $ 61,781       6,336     $ (335,755 )     (34,448 )   $ 319,764       31,618  

 

Refer to the end of the table for footnotes.

 

American Funds Multi-Sector Income Fund 49
    Sales*     Reinvestments of
distributions
    Repurchases*     Net increase  
Share class   Amount     Shares     Amount     Shares     Amount     Shares     Amount     Shares  
                                                 
Year ended December 31, 2021                                
                                                                 
Class A   $ 398,079       37,138     $ 21,004       1,966     $ (86,231 )     (8,062 )   $ 332,852       31,042  
Class C     18,790       1,754       599       56       (5,627 )     (526 )     13,762       1,284  
Class T                             1             1        
Class F-1     11,542       1,075       458       43       (4,274 )     (398 )     7,726       720  
Class F-2     787,020       73,558       22,299       2,086       (118,245 )     (11,022 )     691,074       64,622  
Class F-3     258,332       24,132       8,558       801       (22,019 )     (2,052 )     244,871       22,881  
Class 529-A     7,977       744       252       23       (868 )     (81 )     7,361       686  
Class 529-C     609       57       13       1       (97 )     (9 )     525       49  
Class 529-E     240       22       7       1       (78 )     (7 )     169       16  
Class 529-T                 1       †                  1       † 
Class 529-F-1                 1       †                  1       † 
Class 529-F-2     1,979       185       76       8       (160 )     (15 )     1,895       178  
Class 529-F-3                 †      †                  †      † 
Class R-1     124       12       3       †      (140 )     (13 )     (13 )     (1 )
Class R-2     1,267       118       25       2       (36 )     (3 )     1,256       117  
Class R-2E     7       †      †      †      †      †      7       † 
Class R-3     967       90       35       3       (264 )     (24 )     738       69  
Class R-4     1,328       124       85       8       (1,263 )     (119 )     150       13  
Class R-5E     582       54       19       2       (202 )     (19 )     399       37  
Class R-5     432       40       6       1       (184 )     (17 )     254       24  
Class R-6     1,420,510       133,414       41,565       3,887       (3,354 )     (313 )     1,458,721       136,988  
Total net increase (decrease)   $ 2,909,785       272,517     $ 95,006       8,888     $ (243,041 )     (22,680 )   $ 2,761,750       258,725  

 

* 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 $1,070,574,000 and $610,179,000, respectively, during the six months ended June 30, 2022.

 

11. Ownership concentration

 

At June 30, 2022, the fund had one shareholder, American Funds Conservative Growth and Income Portfolio, with aggregate ownership of 36% of the fund’s outstanding shares. CRMC is the investment adviser to American Funds Conservative Growth and Income Portfolio.

 

50 American Funds Multi-Sector Income 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
waivers/
reimburse-
ments4
    Ratio of
expenses to
average net
assets after
waivers/
reimburse-
ments3,4
    Ratio of
net income
to average
net assets3
 
Class A:                                                                                                        
6/30/20225,6   $ 10.63     $ .19     $ (1.56 )   $ (1.37 )   $ (.17 )   $   $ (.17 )   $ 9.09       (12.93 )%8    $ 614       .82 %9      .82 %9      3.88 %9 
12/31/2021     10.81       .36       (.11 )     .25       (.36 )     (.07 )     (.43 )     10.63       2.38       680       .84       .83       3.34  
12/31/2020     10.32       .41       .68       1.09       (.43 )     (.17 )     (.60 )     10.81       11.07       356       1.09       .85       3.96  
12/31/20195,10     10.00       .37       .40       .77       (.35 )     (.10 )     (.45 )     10.32       7.76 8,11      52       .60 9,11      .53 9,11      4.61 9,11 
Class C:                                                                                                        
6/30/20225,6     10.63       .16       (1.56 )     (1.40 )     (.14 )         (.14 )     9.09       (13.24 )8      17       1.53     1.52     3.16
12/31/2021     10.81       .28       (.10 )     .18       (.29 )     (.07 )     (.36 )     10.63       1.67       24       1.54       1.53       2.63  
12/31/20205,12     9.67       .22       1.20       1.42       (.24 )     (.04 )     (.28 )     10.81       14.78     10       1.67     1.55     3.12
Class T:                                                                                                        
6/30/20225,6     10.63       .21       (1.56 )     (1.35 )     (.19 )         (.19 )     9.09       (12.80 )8,11      13      .52 9,11      .51 9,11      4.19 9,11 
12/31/2021     10.81       .39       (.11 )     .28       (.39 )     (.07 )     (.46 )     10.63       2.63 11      13      .59 11      .59 11      3.61 11 
12/31/20205,12     9.67       .29       1.19       1.48       (.30 )     (.04 )     (.34 )     10.81       15.45 8,11      13      .94 9,11      .62 9,11      4.22 9,11 
Class F-1:                                                                                                        
6/30/20225,6     10.63       .19       (1.56 )     (1.37 )     (.17 )         (.17 )     9.09       (12.93 )8      14       .83     .82     3.89
12/31/2021     10.81       .36       (.11 )     .25       (.36 )     (.07 )     (.43 )     10.63       2.37       15       .85       .85       3.33  
12/31/20205,12     9.67       .27       1.19       1.46       (.28 )     (.04 )     (.32 )     10.81       15.26     7       1.09     .88     3.84
Class F-2:                                                                                                        
6/30/20225,6     10.63       .20       (1.55 )     (1.35 )     (.19 )         (.19 )     9.09       (12.81 )8      754       .55     .55     4.16
12/31/2021     10.81       .38       (.10 )     .28       (.39 )     (.07 )     (.46 )     10.63       2.66       804       .56       .56       3.55  
12/31/2020     10.32       .44       .67       1.11       (.45 )     (.17 )     (.62 )     10.81       11.26       119       .78       .59       4.13  
12/31/20195,10     10.00       .36       .40       .76       (.34 )     (.10 )     (.44 )     10.32       7.75 8,11      13      .62 9,11      .54 9,11      4.59 9,11 
Class F-3:                                                                                                        
6/30/20225,6     10.63       .21       (1.56 )     (1.35 )     (.19 )         (.19 )     9.09       (12.77 )8      337       .45     .45     4.27
12/31/2021     10.81       .39       (.10 )     .29       (.40 )     (.07 )     (.47 )     10.63       2.73       297       .49       .48       3.64  
12/31/2020     10.32       .44       .68       1.12       (.46 )     (.17 )     (.63 )     10.81       11.32       55       .73       .53       4.18  
12/31/20195,10     10.00       .36       .40       .76       (.34 )     (.10 )     (.44 )     10.32       7.72 8,11      13      .64 9,11      .57 9,11      4.57 9,11 
Class 529-A:                                                                                                        
6/30/20225,6     10.63       .19       (1.55 )     (1.36 )     (.18 )         (.18 )     9.09       (12.91 )8      10       .78 9     .77     3.94
12/31/2021     10.81       .36       (.10 )     .26       (.37 )     (.07 )     (.44 )     10.63       2.43       10       .81       .80       3.35  
12/31/20205,12     9.67       .27       1.19       1.46       (.28 )     (.04 )     (.32 )     10.81       15.23     3       1.05     .92     3.78

 

Refer to the end of the table for footnotes.

 

American Funds Multi-Sector Income Fund 51

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
waivers/
reimburse-
ments4
    Ratio of
expenses to
average net
assets after
waivers/
reimburse-
ments3,4
    Ratio of
net income
to average
net assets3
 
Class 529-C:                                                                                                        
6/30/20225,6   $ 10.63     $ .16     $ (1.56 )   $ (1.40 )   $ (.14 )   $   $ (.14 )   $ 9.09       (13.24 )%8    $ 1       1.53 %9     1.52 %9     3.18 %9 
12/31/2021     10.81       .28       (.11 )     .17       (.28 )     (.07 )     (.35 )     10.63       1.65       1       1.54       1.54       2.61  
12/31/20205,12     9.67       .24       1.20       1.44       (.26 )     (.04 )     (.30 )     10.81       14.97 8,11      13      1.58 9,11      1.39 9,11      3.36 9,11 
Class 529-E:                                                                                                        
6/30/20225,6     10.63       .18       (1.55 )     (1.37 )     (.17 )         (.17 )     9.09       (12.99 )8,11     13      .96 9,11      .96 9,11      3.73 9,11 
12/31/2021     10.81       .34       (.10 )     .24       (.35 )     (.07 )     (.42 )     10.63       2.25 11      13      .98 11      .97 11      3.18 11 
12/31/20205,12     9.67       .28       1.19       1.47       (.29 )     (.04 )     (.33 )     10.81       15.38 8,11      13      .99 9,11      .75 9,11      4.03 9,11 
Class 529-T:                                                                                                        
6/30/20225,6     10.63       .20       (1.55 )     (1.35 )     (.19 )         (.19 )     9.09       (12.82 )8,11     13      .56 9,11      .55 9,11      4.15 9,11 
12/31/2021     10.81       .38       (.11 )     .27       (.38 )     (.07 )     (.45 )     10.63       2.57 11      13      .65 11      .65 11      3.55 11 
12/31/20205,12     9.67       .29       1.19       1.48       (.30 )     (.04 )     (.34 )     10.81       15.40 8,11      13      1.00 9,11      .68 9,11      4.15 9,11 
Class 529-F-1:                                                                                                        
6/30/20225,6     10.63       .20       (1.56 )     (1.36 )     (.18 )         (.18 )     9.09       (12.85 )8,11     13      .63 9,11      .62 9,11      4.08 9,11 
12/31/2021     10.81       .38       (.11 )     .27       (.38 )     (.07 )     (.45 )     10.63       2.57 11      13      .66 11      .65 11      3.54 11 
12/31/20205,12     9.67       .30       1.18       1.48       (.30 )     (.04 )     (.34 )     10.81       15.43 8,11      13      .82 9,11      .59 9,11      4.29 9,11 
Class 529-F-2:                                                                                                        
6/30/20225,6     10.63       .20       (1.55 )     (1.35 )     (.19 )         (.19 )     9.09       (12.81 )8      3       .55     .54     4.17
12/31/2021     10.81       .38       (.11 )     .27       (.38 )     (.07 )     (.45 )     10.63       2.59       3       .63       .63       3.55  
12/31/20205,14     10.41       .07       .45       .52       (.08 )     (.04 )     (.12 )     10.81       4.96     2       .12     .11     .65
Class 529-F-3:                                                                                                        
6/30/20225,6     10.63       .20       (1.55 )     (1.35 )     (.19 )         (.19 )     9.09       (12.81 )8      13      .53     .52     4.18
12/31/2021     10.81       .39       (.11 )     .28       (.39 )     (.07 )     (.46 )     10.63       2.67       13      .59       .57       3.64  
12/31/20205,14     10.41       .07       .45       .52       (.08 )     (.04 )     (.12 )     10.81       4.97     13      .14     .10     .66
Class R-1:                                                                                                        
6/30/20225,6     10.63       .18       (1.56 )     (1.38 )     (.16 )         (.16 )     9.09       (13.06 )8,11     13      1.11 9,11      1.11 9,11      3.60 9,11 
12/31/2021     10.81       .31       (.10 )     .21       (.32 )     (.07 )     (.39 )     10.63       1.97 11      13      1.29 11      1.28 11      2.90 11 
12/31/20205,12     9.67       .25       1.20       1.45       (.27 )     (.04 )     (.31 )     10.81       15.12 8,11      13      1.35 9,11      1.14 9,11      3.62 9,11 

 

Refer to the end of the table for footnotes.

 

52 American Funds Multi-Sector Income 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
waivers/
reimburse-
ments4
    Ratio of
expenses to
average net
assets after
waivers/
reimburse-
ments3,4
    Ratio of
net income
to average
net assets3
 
Class R-2:                                                                                                        
6/30/20225,6   $ 10.63     $ .17     $ (1.56 )   $ (1.39 )   $ (.15 )   $   $ (.15 )   $ 9.09       (13.15 )%8    $ 1       1.32 %9      1.31 %9      3.37 %9 
12/31/2021     10.81       .30       (.10 )     .20       (.31 )     (.07 )     (.38 )     10.63       1.87       1       1.31       1.31       2.82  
12/31/20205,12     9.67       .26       1.19       1.45       (.27 )     (.04 )     (.31 )     10.81       15.15 8,11      13      1.30 9,11      1.09 9,11      3.67 9,11 
Class R-2E:                                                                                                        
6/30/20225,6     10.63       .20       (1.55 )     (1.35 )     (.19 )         (.19 )     9.09       (12.82 )8,11     13      .57 9,11      .56 9,11      4.11 9,11 
12/31/2021     10.81       .39       (.11 )     .28       (.39 )     (.07 )     (.46 )     10.63       2.69 11      13      .54 11      .54 11      3.66 11 
12/31/20205,12     9.67       .29       1.19       1.48       (.30 )     (.04 )     (.34 )     10.81       15.44 8,11      13      .95 9,11      .63 9,11      4.21 9,11 
Class R-3:                                                                                                        
6/30/20225,6     10.63       .18       (1.56 )     (1.38 )     (.16 )         (.16 )     9.09       (13.05 )8      1       1.09     1.08     3.63
12/31/2021     10.81       .33       (.10 )     .23       (.34 )     (.07 )     (.41 )     10.63       2.15       1       1.07       1.07       3.11  
12/31/20205,12     9.67       .26       1.20       1.46       (.28 )     (.04 )     (.32 )     10.81       15.24     13      1.11     .99     3.73
Class R-4:                                                                                                        
6/30/20225,6     10.63       .19       (1.55 )     (1.36 )     (.18 )         (.18 )     9.09       (12.91 )8      1       .77     .76     3.89
12/31/2021     10.81       .37       (.11 )     .26       (.37 )     (.07 )     (.44 )     10.63       2.44       2       .78       .77       3.44  
12/31/20205,12     9.67       .26       1.21       1.47       (.29 )     (.04 )     (.33 )     10.81       15.38     2       .85     .78     3.69
Class R-5E:                                                                                                        
6/30/20225,6     10.63       .20       (1.55 )     (1.35 )     (.19 )         (.19 )     9.09       (12.84 )8      1       .61     .61     4.10
12/31/2021     10.81       .38       (.11 )     .27       (.38 )     (.07 )     (.45 )     10.63       2.60       1       .63       .63       3.56  
12/31/20205,12     9.67       .29       1.19       1.48       (.30 )     (.04 )     (.34 )     10.81       15.45     13      .76     .59     4.17
Class R-5:                                                                                                        
6/30/20225,6     10.63       .20       (1.55 )     (1.35 )     (.19 )         (.19 )     9.09       (12.80 )8      13      .52     .52     4.12
12/31/2021     10.81       .39       (.11 )     .28       (.39 )     (.07 )     (.46 )     10.63       2.69       13      .51       .51       3.64  
12/31/20205,12     9.67       .30       1.19       1.49       (.31 )     (.04 )     (.35 )     10.81       15.50     13      .82     .53     4.23
Class R-6:                                                                                                        
6/30/20225,6     10.63       .21       (1.56 )     (1.35 )     (.19 )         (.19 )     9.09       (12.77 )8     1,353       .46     .45     4.26
12/31/2021     10.81       .39       (.10 )     .29       (.40 )     (.07 )     (.47 )     10.63       2.74       1,457       .47       .47       3.61  
12/31/2020     10.32       .44       .68       1.12       (.46 )     (.17 )     (.63 )     10.81       11.32       1       .69       .52       4.17  
12/31/20195,10     10.00       .36       .40       .76       (.34 )     (.10 )     (.44 )     10.32       7.72 8,11      13      .64 9,11      .56 9,11      4.57 9,11 

 

Refer to the end of the table for footnotes.

 

American Funds Multi-Sector Income Fund 53

Financial highlights (continued)

    Six months ended
June 30, 20225,6,8
          For the period ended
December 31, 20195,10
      Year ended December 31,  
      2021   2020  
Portfolio turnover rate for all share classes15     21%       36%       73%       115%  
   
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 waivers/reimbursements from CRMC and/or AFS. During one of the years shown, CRMC waived a portion of investment advisory services fees. In addition, during one of the years shown, AFS waived a portion of transfer agent services fees for Class F-3 shares. In addition, during some of the years shown, CRMC reimbursed a portion of transfer agent services fees for certain share classes and/or reimbursed a portion of miscellaneous fees and expenses.
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 Based on operations for a period that is less than a full year.
6 Unaudited.
7 Amount less than $.01.
8 Not annualized.
9 Annualized.
10 For the period March 22, 2019, commencement of operations, through December 31, 2019.
11 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.
12 This share class began investment operations on May 1, 2020.
13 Amount less than $1 million.
14 Class 529-F-2 and 529-F-3 shares began investment operations on October 30, 2020.
15 Rate does not include the fund’s portfolio activity with respect to any Central Funds.

 

Refer to the notes to financial statements.

 

54 American Funds Multi-Sector Income Fund
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 (January 1, 2022, through June 30, 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.

 

American Funds Multi-Sector Income Fund 55

Expense example (continued)

 

    Beginning
account value
1/1/2022
    Ending
account value
6/30/2022
    Expenses paid
during period*
    Annualized
expense ratio
 
Class A – actual return   $ 1,000.00     $ 870.68     $ 3.80       .82 %
Class A – assumed 5% return     1,000.00       1,020.73       4.11       .82  
Class C – actual return     1,000.00       867.62       7.04       1.52  
Class C – assumed 5% return     1,000.00       1,017.26       7.60       1.52  
Class T – actual return     1,000.00       872.02       2.37       .51  
Class T – assumed 5% return     1,000.00       1,022.27       2.56       .51  
Class F-1 – actual return     1,000.00       870.67       3.80       .82  
Class F-1 – assumed 5% return     1,000.00       1,020.73       4.11       .82  
Class F-2 – actual return     1,000.00       871.86       2.55       .55  
Class F-2 – assumed 5% return     1,000.00       1,022.07       2.76       .55  
Class F-3 – actual return     1,000.00       872.29       2.09       .45  
Class F-3 – assumed 5% return     1,000.00       1,022.56       2.26       .45  
Class 529-A – actual return     1,000.00       870.87       3.57       .77  
Class 529-A – assumed 5% return     1,000.00       1,020.98       3.86       .77  
Class 529-C – actual return     1,000.00       867.62       7.04       1.52  
Class 529-C – assumed 5% return     1,000.00       1,017.26       7.60       1.52  
Class 529-E – actual return     1,000.00       870.07       4.45       .96  
Class 529-E – assumed 5% return     1,000.00       1,020.03       4.81       .96  
Class 529-T – actual return     1,000.00       871.84       2.55       .55  
Class 529-T – assumed 5% return     1,000.00       1,022.07       2.76       .55  
Class 529-F-1 – actual return     1,000.00       871.54       2.88       .62  
Class 529-F-1 – assumed 5% return     1,000.00       1,021.72       3.11       .62  
Class 529-F-2 – actual return     1,000.00       871.88       2.51       .54  
Class 529-F-2 – assumed 5% return     1,000.00       1,022.12       2.71       .54  
Class 529-F-3 – actual return     1,000.00       871.95       2.41       .52  
Class 529-F-3 – assumed 5% return     1,000.00       1,022.22       2.61       .52  
Class R-1 – actual return     1,000.00       869.43       5.15       1.11  
Class R-1 – assumed 5% return     1,000.00       1,019.29       5.56       1.11  
Class R-2 – actual return     1,000.00       868.53       6.07       1.31  
Class R-2 – assumed 5% return     1,000.00       1,018.30       6.56       1.31  
Class R-2E – actual return     1,000.00       871.84       2.60       .56  
Class R-2E – assumed 5% return     1,000.00       1,022.02       2.81       .56  
Class R-3 – actual return     1,000.00       869.49       5.01       1.08  
Class R-3 – assumed 5% return     1,000.00       1,019.44       5.41       1.08  
Class R-4 – actual return     1,000.00       870.92       3.53       .76  
Class R-4 – assumed 5% return     1,000.00       1,021.03       3.81       .76  
Class R-5E – actual return     1,000.00       871.59       2.83       .61  
Class R-5E – assumed 5% return     1,000.00       1,021.77       3.06       .61  
Class R-5 – actual return     1,000.00       872.02       2.41       .52  
Class R-5 – assumed 5% return     1,000.00       1,022.22       2.61       .52  
Class R-6 – actual return     1,000.00       872.29       2.09       .45  
Class R-6 – assumed 5% return     1,000.00       1,022.56       2.26       .45  

 

* 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).

 

56 American Funds Multi-Sector Income Fund

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American Funds Multi-Sector Income Fund 57

Approval of Investment Advisory and Service Agreement

 

The fund’s board has approved the continuation of the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through April 30, 2023. The agreement was amended to lower the current fee schedule resulting in an overall lower advisory fee. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all the fund’s independent board members. The board and the committee determined in the exercise of their business judgment that the fund’s advisory fee structure was fair and reasonable in relation to the services provided, and that approving the agreement was in the best interests of the fund and its shareholders.

 

In reaching this decision, the board and the committee took into account their interactions with CRMC as well as information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreement, and were advised by their independent counsel with respect to the matters considered. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.

 

1. Nature, extent and quality of services

 

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management (the manner in which the fund’s assets are managed, including liquidity management), financial, investment operations, compliance, trading, proxy voting, shareholder communications, and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative and shareholder services provided by CRMC to the fund under the agreement and other agreements, as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee considered the risks assumed by CRMC in providing services to the fund, including operational, business, financial, reputational, regulatory and litigation risks. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

 

2. Investment results

 

The board and the committee considered the investment results of the fund in light of its objective. They compared the fund’s investment results with those of other funds (including funds that currently form the basis of the Lipper index for the category in which the fund is included) and data such as relevant market and fund indexes over various periods (including the fund’s lifetime) through September 30, 2021, while recognizing the fund’s short operational history. On the basis of this evaluation and the board’s and the committee’s ongoing review of investment results, and considering the relative market conditions during certain reporting periods, the board and the committee concluded that the fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

 

3. Advisory fees and total expenses

 

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses generally compared favorably to those of other similar funds included in the comparable Lipper category. The board and the committee also considered the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. The board also considered and approved the amended fee schedule to the agreement that lowered the current fee schedule and resulted in an overall lower advisory fee. The board noted that there would be no diminution in services provided as a result of the lower advisory fee.

 

In addition, the board and the committee reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational, regulatory and market differences between advising the fund and the other clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, as well as in relation to the risks assumed by the adviser in sponsoring and managing the fund, and that the fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

 

58 American Funds Multi-Sector Income Fund

4. Ancillary benefits

 

The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the fund and other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that through December 31, 2018, CRMC benefited from research obtained with commissions from portfolio transactions made on behalf of each fund, and since that time has undertaken to bear the cost of obtaining such research. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

 

5. Adviser financial information

 

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its track record of investing in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. They reviewed information on the profitability of the investment adviser and its affiliates. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and CRMC’s sharing of potential economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

 

American Funds Multi-Sector Income Fund 59

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

State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111-2900

 

Counsel

Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726

 

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

 

60 American Funds Multi-Sector Income Fund

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 Multi-Sector Income 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 avaliable free of charge on the SEC website and on our website.

 

This report is for the information of shareholders of American Funds Multi-Sector Income 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 September 30, 2022, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

 

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 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 SystemSM — 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

 

Not applicable for filing of semi-annual reports to shareholders.

 

ITEM 3 – Audit Committee Financial Expert

 

Not applicable for filing of semi-annual reports to shareholders.

 

ITEM 4 – Principal Accountant Fees and Services

 

Not applicable for filing of semi-annual reports to shareholders.

 

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.

 

 

ITEM 12 – Exhibits

 

(a)(1) Not applicable for filing of semi-annual reports to shareholders.
   
(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 MULTI-SECTOR INCOME FUND
   
  By __/s/ Kristine M. Nishiyama____________________
 

Kristine M. Nishiyama,

Principal Executive Officer

   
  Date: August 31, 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/ Kristine M. Nishiyama_________________

Kristine M. Nishiyama,

Principal Executive Officer

 
Date: August 31, 2022

 

 

 

By ___/s/ Brian C. Janssen    __________

Brian C. Janssen, Treasurer and

Principal Financial Officer

 
Date: August 31, 2022

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