FAQ

The Foreign Account Tax Compliance Act (FATCA), introduced as part of the HIRE Act in 2010 in the United States of America, is designed to compel foreign financial institutions (FFIs) and non-financial foreign entities (NFFEs) to provide information to the US Internal Revenue Service (IRS) about US persons who hold accounts with or interests abroad in FFIs or NFFEs.

As FFIs, the funds have registered with the IRS as reporting deemed compliant institutions under FATCA and the equivalent Luxembourg domestic law following the signing of an Inter-Governmental Agreement (“IGA”) with the US Treasury and have to comply with a number of due diligence obligations on their shareholders. As an individual shareholder you will be required to provide identity, residency and citizenship information to the funds in order to enable them to determine your FATCA status. For those shareholders who meet the criteria of a qualified US person under FATCA and provided always that they qualify under the “Restrictions on Ownership” section in the funds prospectuses and have been authorised to subscribe and/or remain invested in the funds, their account details will be reported to the Luxembourg tax authorities who in turn will exchange the information with the US tax authorities together with annual income and transaction information. If a shareholder does not provide such requested information and documentation in a timely manner, he will qualify as “recalcitrant account” and in addition to reporting; the funds may have to withhold a 30% tax on the payments processed to his account and/or redeem securities held by the investor.

On 10 November 2015, the EU Council decided to repeal the EUSD effective 1st January 2016. From that date, Common Reporting Standard ("CRS") applies in most EU countries, including Luxembourg. This new global standard developed by the OECD for the automatic exchange of information goes beyond the limited scope of the EUSD and extends the scope of that exchange to include interest, dividends and other types of income.

On 29 October 2014, Luxembourg signed a multilateral agreement, which establishes “CRS”. As from 1 January 2016, the EUSD has been repealed and Luxembourg funds are now required to comply with the relevant Luxembourg law implementing CRS. They are obliged to collect certain information about the tax residency and tax classification of each investor and to report relevant financial information on shareholders accounts to the Luxembourg tax authorities, who intend to commence information sharing on certain cross border investors from the participating jurisdictions in 2017. 

An annual management fee is payable in each fund, along with a number of other fees and expenses including fees for fund administration, custody, transfer agency and audit. The total of these fees, referred to as the Ongoing Charges Figures (OCF) also indicated in the Key Investor Information Documents (KIIDs), is available for most of the funds in each of the fund descriptions on our website. Subscription charges are waived for CG associates and family members.

Capital Group does not presently apply any fees to subscriptions, redemptions, or switches.

Covered persons must submit copies of contract notes after each transaction and quarterly disclosures of holdings to the Personal Investing Committee (PICO) by the 15th calendar day after quarter end. You can authorise J. P. Morgan Bank Luxembourg S.A. to send duplicates of your contract notes and statements to PICO at the time of account setup by using the PICO Authorisation Form. For further information, please review the Personal Investing Policy or contact PICO at extension 90000.

Yes, there are several account registration options for minors. To determine which type of account best suits you, please check the minors section of the Capital Group Luxembourg funds Guide for investing or contact a member of the Client Operations team.

Eligibility for CG associate Family Members:

·        Aunt/Uncle

·        Aunt/Uncle-in-law ³ (References to ‘in-laws’ include relationships derived from spouses and persons registered as domestic partners under the laws of the associate’s country of residence)

·        Brother/Sister ²

·        Brother/Sister-in-law ³

·        Child

·        Cousin/Cousin-in-law ³

·        Godchild/Godparents

·        Grandchild

·        Grandparent/Grandparent-in-law ³

·        Niece/Nephew

·        Parent ²

·        Parent-in-law ³

·        Spouse ¹

·        Son/Daughter-in-law ³

·        Trustee of a trust primarily for the benefit of a CG Associate

1.Includes former spouses, survivors of deceased associates and persons defined as domestic partners or equivalent under the laws of the relevant associate’s country of residence.

2.Includes step and adoptive relationships.

3.References to ‘in-laws’ include relationships derived from spouses and persons registered as domestic partners under the laws of the associate’s country of residence.

No. US citizens, including dual nationals residing outside the US, are not permitted to invest in these funds, due to regulations that constrain the availability of offshore funds to most US investors. Capital Group offers a wide range of US domiciled funds designed specifically to meet the needs of US residents. You may wish to visit americanfunds.com to read more about the array of fund choices offered by American Funds.

No. Such investments would need to take place in specialized firms which might offer investments into our funds.

Share classes available to CG associates are typically offered in Euro, US Dollar, Swiss Franc and Pound Sterling, each with its own ticker symbol. These are known as the payment currencies. For a full overview of available currencies, please refer to our website, or check the funds‘ prospectuses. To the extent available, you can transact in any of the relevant class’s payment currencies listed above without incurring additional foreign-exchange charges. However please note that the share class availability is subject to your country of domicile. In case of doubt please contact a member of the Investor Services Team. 

We offer them for a limited number of share classes and currencies, for more information please refer to our website. 

The purpose of hedged share classes is to seek to limit exposure to currencies other than the currency referred to in the relevant class’s designation; a systematic passive currency hedging overlay will be performed by JPMorgan Chase Bank, N.A. on a significant part of the assets of the relevant fund attributable to these classes. The actual passive currency-hedging overlay methodology will vary from class to class, as described in the relevant share class information sheet in annex 3 of the prospectus. 

In line with our investment philosophy, these should be considered long-term investments. All account activity is monitored to safeguard our funds and their investors against improper trading, and redemptions or switches of holdings within 60 days of a subscription (or vice versa) may qualify as improper trading with potential penalties. Please refer to the question “Could I be subject to other charges?” above.

Please refer to Transactions under Guide to Investing 

A distributing share class pays a dividend. There are two types of dividend distributing classes available to CG associates:

• Those marked by a “d” typically distribute the majority of their net investment income.
• Those marked by a “gd” typically distribute the majority of their gross investment income.

The frequency of payment depends on the fund and the share class but is typically either annual or quarterly. For more information, please read the section “Dividend Policy” in the relevant fund prospectus.

No. The purpose of this website is educational. It is not intended to promote the funds or to encourage you, or an eligible family member, to invest in them. Any investment in these funds should be made only after you, or your family member, have read the relevant prospectus, Key Investor Information Document (KIID) and related fund information, and/or consulted a financial adviser.

Please refer to Investor Documents under Guide to Investing.

For information on registration, please refer to the our website or contact the Client Operations Team.

Yes. You may leave your investments in the funds and later add to your holding without paying subscription charges. However, you will not be able to open a new account. Please note that zero balance accounts will be closed after 12 months and cannot be re-opened.

The Client Operations Team oversees transaction activity in the funds and can answer any questions you have about investing; however, COT cannot provide you with investment advice. Please refer to the Capital Group Luxembourg funds Guide for investing for contact details.

Your account will be deactivated after 13 months if it has not been funded. It is recommended to fund the account after it’s opened.
If your account is deactivated, please contact  Client_Operations@capgroup.com for reactivation requirements.