OUR PORTFOLIOS
A tailored tax-aware approach for your clients
We know that your clients all have different questions and goals when it comes to investing. That's why our six tax-aware model portfolios are built in line with tax-aware investment strategies, including, for the first time, the use of Capital Group exchange-traded funds (ETFs).
Focus on investor
goals
Underlying funds are selected primarily with specific objectives in mind.
Goal: Reduce taxable
distributions
These model portfolios are built to help reduce investors’ tax bills.
Goal: Reduce short-term
capital gains
Many of the underlying funds have had low turnover rates, helping reduce short-term capital gains.
OUR TAX-AWARE MODELS
The measures of tax efficiency
Investors don’t have to lose sight of their goals in order to reduce their tax bills. These after-tax measures can help investors better understand and compare the tax-efficiency of investments.
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Growth
Holdings are weighted averages of the underlying funds. The underlying funds are managed, so holdings will change. Totals may not reconcile due to rounding.
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Growth and income
Holdings are weighted averages of the underlying funds. The underlying funds are managed, so holdings will change. Totals may not reconcile due to rounding.
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Preservation and income
Holdings are weighted averages of the underlying funds. The underlying funds are managed, so holdings will change. Totals may not reconcile due to rounding.
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OUR RESULTS
Working toward better long-term outcomes at different risk levels
We offer you model portfolio solutions built to enable you to manage risk, with the goal of stronger longer term outcomes. These model portfolios are built with investors’ risk tolerance, time horizons and goals in mind, making it easier for you to help your clients achieve their goals.
Read important investment disclosures.
Source: Capital Group. Model results are average annual total returns and reflect changes, if any, in the underlying fund allocations (rebalanced monthly) over the model’s lifetime. Rebalancing approaches may differ depending on where the account is held. Volatility is calculated at net asset value using annualized standard deviation, based on monthly returns, a measure of how returns over time have varied from the mean; a lower number signifies lower volatility. Average annual total returns and standard deviation are weighted averages for the underlying funds in the model portfolios. The model portfolios are monitored regularly and underlying funds may change. View returns for the American Funds Model Portfolios. The underlying funds and additional details can be found by clicking on each model’s name. American Funds Tax-Aware Moderate Growth Model Portfolio, incepted on July 24, 2020, is not shown because it has less than three years of history. American Funds Tax-Aware Growth and Income Model Portfolio, American Funds Tax-Aware Moderate Growth and Income Model Portfolio, American Funds Tax-Aware Moderate Income Model Portfolio and American Funds Tax-Aware Conservative Income Model Portfolio, which recently achieved three years of history, will be shown next quarter.
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Model portfolios are only available through registered investment advisers. This content is intended for registered investment advisers and their clients.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Cash and equivalents includes short-term securities, accrued income and other assets less liabilities. It may also include investments in money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. Accrued income and the timing of its settlement, as well as classification of convertible bonds as debt or equity, can cause slight variations in the balances displayed in different portfolio composition breakdowns.
Model portfolios are subject to the risks associated with the underlying funds in the model portfolio. Investors should carefully consider investment objectives, risks, fees and expenses of the funds in the model portfolio, which are contained in the fund prospectuses. 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. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. 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. 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 securities, such as stocks and bonds. A nondiversified fund has the ability to invest a larger percentage of assets in securities of individual issuers than a diversified fund. As a result, a single issuer could adversely affect a nondiversified fund’s results more than if the fund invested a smaller percentage of assets in securities of that issuer. See the applicable prospectus for details.
Model portfolios are provided to financial intermediaries who may or may not recommend them to clients. The portfolios consist of an allocation of funds for investors to consider and are not intended to be investment recommendations. The portfolios are asset allocations designed for individuals with different time horizons, investment objectives and risk profiles. Allocations may change and may not achieve investment objectives. If a cash allocation is not reflected in a model, the intermediary may choose to add one. Capital Group does not have investment discretion or authority over investment allocations in client accounts. Rebalancing approaches may differ depending on where the account is held. Investors should talk to their financial professional for information on other investment alternatives that may be available. In making investment decisions, investors should consider their other assets, income and investments. Visit capitalgroup.com for current allocations.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
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.
Use of this website is intended for U.S. residents only.