Firm to pass more savings to investors with new management fee tiers on two funds
Capital Group Canada has announced plans to pass more economies of scale to investors with new management fee tiers on two of its funds.
The expanded tiered pricing model, to be applied to the Capital Group Income Builder and Capital Group International Equity Fund, will take effect on June 1, 2020 to pass economies of scale to investors as fund assets grow.
The new annual management fee rates, along with the applicable asset tiers and fund series, are:
Capital Group Capital Income Builder (Canada)
Capital Group International Equity Fund (Canada)
The new fee tiers will also impact series with negotiated fees, the firm said, as negotiated fees for series I units will not exceed fees payable for series F units of the funds, and negotiated management fees for series O units will not exceed fees payable for series A units.
Investors and advisors may refer to the fund prospectus for additional details.