Capital Group making mutual-fund changes

The firm is instituting lower management fee tiers and reduced fees for several funds

Capital Group making mutual-fund changes

Capital International Asset Management (Canada), also known as Capital Group, has announced several upcoming changes across its mutual funds.

Effective June 1, the firm is implementing new management fee tiers on three funds. The Capital Group Global Equity Fund (Canada), Capital Group Global Balanced Fund (Canada), and Capital Group World Bond Fund (Canada) will each be offered with new low rates applied to assets in excess of $6.5 billion, $1.5 billion, and $500 million, respectively:

The administration fee for Global Balanced Fund has decreased by 3 basis points in the wake of the portfolio recently surpassing $1 billion in assets. The firm added that the new fee tiers may also impact Series I units and Series O units, as their management fees have been negotiated to not exceed fees payable for Series F and Series A units, respectively.

A 10-basis-point fee reduction was also announced for several series of the Capital Group Emerging Markets Total Opportunities Fund (Canada). Effective June 1, the following fees will be applied:

Capital Group also announced upcoming portfolio-manager additions:

  • Capital Group Canadian Core Plus Fixed Income Fund (Canada) – Effective May 31, the mandate will add Thomas H. Høgh (32 years of experience, based in London) and Thomas Reithinger (8, London), while Mark Brett will transition off of the portfolio;
  • Capital Group U.S. Equity Fund (Canada) – On or about June 1, the mandate will add Grant L. Cambridge (26, Los Angeles), Joyce E. Gordon (38, Los Angeles), James B. Lovelace (37, Los Angeles), Donald D. O'Neal (33, San Francisco), Eric S. Richter (27, Washington, D.C.), and Martin Romo (27, San Francisco). On the same date, Mark Hickey will also transition off of the portfolio.


Follow WP on Facebook, LinkedIn and Twitter