Capital Group Capital Income Builder (LUX) | Capital Group


Capital Group Capital Income Builder (LUX) 

©2020 Morningstar. All rights reserved.
Morningstar Analyst Rating™ as at 19 June 2019.
Morningstar USD Aggressive Allocation category.

Important Notes:

  • The Fund's investment in equity securities may incur significant losses due to fluctuation in equity values and exchange rates of currencies in which these investments are denominated.
  • The Fund's investment in debt securities may be affected by changes in interest rates, credit ratings, and fluctuation in exchange rates of currencies in which these investments are denominated. Investment in bonds issued or guaranteed by governments may involve political, economic, default, or other risks.
  • The Fund may invest in emerging market securities and may be subject to additional risks arising from political, economic, regulatory and market factors.
  • If the Fund invests in debt securities which are below investment grade or unrated, including high yield bonds, it may, as a result, be subject to liquidity, volatility, default and counterparty risk.
  • While the Fund uses derivative instruments in a prudent manner and only for hedging and/or efficient portfolio management purposes, in an adverse situation, derivative instruments may expose the Fund to a risk of significant loss.
  • The Fund may at its discretion pay dividends out of and/or effectively out of capital. This amounts to a return of part of an investor's original investment or distribution of capital gains. This may result in an immediate reduction in the net asset value per share.
  • The currency hedging process used for currency hedged share classes may not give a precise hedge; there is no guarantee that hedging will be totally successful.
  • Investors should not make any investment decision solely based on this document.
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Capital Group Capital Income Builder (LUX)

Capturing sustainable sources of income in a low-yield world



1. To find a lower risk solution to capture equity growth potential

By focusing on higher-quality, lower-risk income-generating equity and fixed income investments, Capital Income Builder is designed to help capture a combination of income, growth and stability.

What is Capital Income Builder?

2. To capture attractive opportunities offered by dividend stocks

Capital Income Builder can invest flexibly across the spectrum of high dividend paying companies and dividend growing companies, to build an opportunity set that is intended to meet the income and income-growth needs of investors.

A flexible opportunity set that looks beyond high dividend payers

"We look for promising investment opportunities among companies with the potential to grow dividends over time. In addition to providing strong returns, historically these 'dividend growers' have tended to be less volatile and more resilient."

James Lovelace
Portfolio manager

3. To capture sustainable sources of income in a low-yield world

Capital Income Builder – has dividend-distributing share classes that aim to provide a monthly income stream in a low interest rate environment.

Dividend per share of Capital Group Capital Income Builder (LUX) Bfdm USD
over the past 12 months*

Past results are not a guarantee of future results.
*Dividend rate is not guaranteed. Income distribution may be paid out of capital. Please note that a positive distribution yield does not necessarily imply a positive return.
Data as at 30 April 2020. Source: Capital Group
Dividend yield represents the ratio of dividends paid over the last 12 months to the Net Asset Value as of the last month end. Distributions are not guaranteed and can fluctuate. Dividends may be paid out of, or effectively out of, capital. If so, this amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to it. Any dividend distributed may result in an immediate reduction of the net asset value per share.

4. To tap into Capital Group’s multi-asset investment capabilities

Our experience in multi-asset investing dates back more than 45 years, when we introduced our first multi-asset fund in 1973 in the US. Since then we have grown globally and now manage over US$373 billion in multi-asset investments.1



Started managing multi-asset strategies

US$373 billion

in multi-asset strategies


Capital Group investment professionals

27 years

of investment experience on average of our portfolio managers

Bringing you hidden investment opportunities with bottom-up research

Our multi-disciplinary investment team has a deep knowledge of individual companies that has been developed over decades. This helps us to uncover the most compelling opportunities to meet our clients’ investment goals and discover emerging investment trends from a bottom-up perspective.

Why Capital Group?

The world’s largest active mutual fund asset manager2


US$1.7 trn

in assets under management

85+ years

of investing since 1931


investing alongside clients





A defensive approach to access growth and income opportunities


*Available in Chinese only


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Morningstar data: The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go here.


  1. Data as at 31 March 2020. Source: Capital Group
  2. Data as at 31 December 2019. Source: Morningstar Direct. The investment universe includes active open-ended funds and Australian Insurance funds, excludes money market funds, excludes fund of funds, excludes feeder funds but Japan-domiciled feeder funds are included, domicile countries exclude China. Active funds are defined as non-index funds, and managers have been ranked by their branding name. Manager assets under management has been broken down by underlying funds’ global broad category group. This excludes segregated accounts.


This material has not been reviewed by the Securities and Futures Commission of Hong Kong.

Risk factors you should consider before investing:

  • This material is not intended to provide investment advice or be considered a personal recommendation.
  • The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
  • Past results are not a guarantee of future results.
  • The Hong Kong Covering Document, Luxembourg Prospectus and Product Key Fact Statement (“KFS”) set out risks, which, depending on the fund, may include risks associated with investing in fixed income, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.

All data as at 31 March 2020 in US$ terms and attributable to Capital Group, unless otherwise stated.

The Capital Group companies manage equities through three investment divisions that make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organisation; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.