Commitment to low fees | Capital Group - Canada

Lower Fees.
Premium Research.


Good news — Series F and Series
F4 management expense ratios (MERs)
have been reduced across all of our
mandates. This reflects our longstanding
commitment to low fees.
mwt-low-fees-poster

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.

Reduced MERs for Capital Group Funds (Canada)

Series F, F4, FH MERs
 

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 28%, from 1.16% to 0.83% (as of June 30, 2018).

Series_F_H_6
“The fund’s
competitive price
tag lowers the
hurdle for future
outperformance.”


Morningstar Canada‘s
review of Capital Group
Global Equity Fund
(Canada), December 12,
2017

 


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:
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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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Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

* Capital Group, at its discretion, currently waives some of its management fees or absorbs some expenses of certain Capital Group funds. Such waivers and absorptions may be terminated at any time, but can be expected to continue for certain portfolios until such time as such funds are of sufficient size to reasonably absorb all management fees and expenses incurred in their operations.

The management expense ratios for the portfolios are based on unaudited total expenses for the six months ended June 30, 2018, and are expressed as an annualized percentage of daily average net assets during the period. Actual MERs may vary. The following lists the management expense ratio for the following Capital Group Funds (Canada) before waivers or absorptions for the six months ended June 30, 2018: Capital Group Canadian Focused Equity Fund (Canada) — Series F, 0.93%; Capital Group Global Equity Fund (Canada) — Series F/F4, 0.84% / 0.84%; Capital Group International Equity Fund (Canada) — Series F, 1.03% ; Capital Group U.S. Equity Fund (Canada) — Series F, 0.87%; Capital Group Emerging Markets Total Opportunities Fund (Canada) — Series F/F4, 1.29% / 1.55%; Capital Group Global Balanced Fund (Canada) — Series F/F4, 0.90% / 0.89%; Capital Group Canadian Core Plus Fixed Income Fund (Canada) — Series F, 0.66%; Capital Group World Bond Fund — Series F/FH, 0.91% / 1.01%.

†Series F4 of Capital Group Global Equity Fund (Canada) and Capital Group Emerging Markets Total Opportunities Fund (Canada) commenced operations on July 31, 2017. Series F and FH of Capital Group World Bond Fund (Canada) commenced operations on November 30, 2017. Estimated MERs at commencement of operations were: Global Equity Fund, Series F4, 0.85%; Emerging Markets Total Opportunities Fund, Series F4, 1.27%; World Bond Fund, Series F, 0.95% and Series FH, 1.02%.

The 2009 MER increase reflects a decline in assets in 2008. The 2010 increase reflects the industrywide addition of HST to mutual fund management expense ratios as of July 2010.

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Unless otherwise indicated, the investment professionals featured do not manage Capital Group‘s Canadian mutual funds.

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