A globally diversified multi-asset approach to building income

Research-driven approach

Capital Income Builder®

INCEPTION DATE
July 30, 1987

IMPLEMENTATION
Consider for a global equity-income allocation

OBJECTIVE
Seeks to provide a level of current income that exceeds the average yield on U.S. stocks generally and a growing stream of income over the years. Secondarily, the fund also seeks to provide growth of capital.

VEHICLE

Capital Income Builder

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DISCIPLINED ELIGIBILITY PROCESS

Capital Income Builder’s investment professionals adhere to a strict methodology to select equities that meet stringent income and income-growth requirements.

DISCIPLINED ELIGIBILITY PROCESS

A rigorous, research-driven approach

For 38 years, Capital Income Builder has had a focus on income driven by a disciplined eligibility process. The fund’s portfolio managers and analysts use a rigorous, research driven approach to identify companies around the world that can meet the income and income-growth needs of investors. This disciplined approach is intended to result in long-term growth of income.

Looking more closely at dividends, Capital Income Builder invests across the spectrum of dividend payers and growers. The fund’s investment professionals seek companies with sustainable business models, strong financial positions and a combination of current yield and future dividend growth. For investors, one of the benefits of focusing on equities as a source of income is the potential for growth and a degree of greater consistency than relying exclusively on bonds. Just as Capital Income Builder can serve different purposesfor investors, dividend-paying companies can fulfill different roles in the fund’s portfolio.

A DISCIPLINED ELIGIBILITY PROCESS TO DRIVE LONG-TERM INCOME GROWTH

A disciplined eligibility process to drive long-term income growth. The graphic shows “Extensive global research” flowing to “Eligibility process” flowing to “Security selection.” Extensive global research’s additional text reads: A global team of analysts seeks out the best dividend opportunities from around the world. Analysts conduct deep research of the company’s financial health and have extensive conversations with management. Investment analysts and portfolio managers engage in thousands of meetings a year to discuss areas such as business policies, practices and material ESG considerations.* Eligibility process’ additional text reads: Eligible securities must meet stringent income and income-growth requirements. Analysts review 20 years of dividend history (or longest available) and forecast three-year dividend growth. Portfolio manager approval is required for a company to appear on the list of eligible securities for investment.Security selection’s additional text reads: Portfolio managers carefully review and select companies from those that emerge from the strict eligibility process. Equity managers are accountable to meet individual income and dividend growth targets.We analyze material ESG issues as a part of our investment research to better understand long-term risks and opportunities as we strive to maximize returns for our investors.*

Capital Income Builder

Capital Income Builder is offered in various share classes designed for retirement plans, nonprofits and other institutional and individual investors.

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
The return of principal for bond portfolios and portfolios with significant underlying bond holdings is not guaranteed. Investments are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
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