Lower Fees. Premium Research.

On June 1, 2017, as part of our commitment to low fees, we reduced the Administration Fee for Series F and F4 of our funds to offer greater access to Capital Group's lowest available prices for retail investors.

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Mark Tiffin, President of Capital Group in Canada

Our Commitment to Low Fees

As a privately owned company, Capital Group strives to share economies of scale with investors and keep fees as low as possible. Over time, small differences in fees can have a bigger impact on returns.

Administration Fee Reductions

Series F, F4 Administration Fees
Based on Fund Assets as of April 30, 2017
 
 
 
Previous
New
(As of June 1, 2017)
Capital Group Emerging Markets Total OpportunitiesSM Fund (Canada)
0.23%
0.17%
Capital Group Global Equity FundSM (Canada)
0.10%
0.05%
Capital Group International Equity FundSM (Canada)
0.21%
0.15%
Capital Group Canadian Focused Equity FundSM (Canada)
0.18%
0.13%
Capital Group U.S. Equity FundSM (Canada)
0.18%
0.13%
Capital Group Canadian Core Plus Fixed Income FundSM (Canada)
0.20%
0.15%
Capital Group Global Balanced FundSM (Canada)
0.20%
0.14%
 

Lower Administration Fees Mean Lower Expected MERs

Lower Administration Fees are expected to result in lower Series F and F4 Management Expense Ratios (MERs) for all of Capital Group's funds. Investors should benefit from these reductions beginning June 1, since operating expenses — which include Administration Fees — are calculated and accrued daily.

An Example of Our Commitment to Low Fees

Capital Group Global Equity FundSM (Canada) offers an example of our longstanding commitment to sharing economies of scale with investors. As the fund has grown since its November 2002 inception, its Series F MER has fallen about 20%, from 1.16% to 0.92% (as of December 31, 2016).

“The fund’s competitive price tag lowers the hurdle for future outperformance.”

Morningstar Canada's review of Capital Group Global Equity Fund (Canada), October 28, 2016

What's in a Mutual Fund MER?

Management Expense Ratios (MERs) have three components:

Premium Global Research

The management fee, in particular, provides access to Capital Group's premium global research:

Figures for the year ending December 31, 2017.

“No investment organization in the world has ever done so well for so long for so many clients as The Capital Group Companies.”

— Charles Ellis, Capital: The Story of Long-Term Investment Excellence (John Wiley & Sons, Inc., 2004). Ellis chaired the Yale University Investment Committee from 1997 to 2008 and served as a director of The Vanguard Group from 2001 to 2009.

 

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