Capital International Asset Management (Canada), Inc. (“Capital Group”) announced it will reduce fees on all 10 of its mutual funds, furthering its longstanding commitment to lower cost active management for investors.
Effective June 1, 2022, all funds will have a lower management fee schedule, with three management fee rate tiers that provide further reductions in a fund's management fee rate as the fund's assets grow into a new tier. This allows Capital Group to pass economies of scale on to Canadian investors as the fund grows. The fee reduction varies by fund, with the most significant drop applying to Capital Group World Bond FundTM (Canada) (Series F) which will experience a lower management fee rate of 0.45%, vs 0.65% today. As the fund grows, the rate will be further reduced by management fee breakpoints of 0.42% on net assets between $5 billion and $10 billion and 0.40% on net assets over $10 billion.
“Globally, Capital Group is one of the largest active fund managers in the world and we are committed to sharing economies of scale with investors, to help improve their financial lives through successful investing,” says Rick Headrick, president of Capital Group in Canada. “Delivering on that commitment is one reason we've succeeded in Canada and, as our business continues to grow, more investors benefit from the value our global team of investment professionals bring to our strategies.”
The administration fee on the hedged series of Capital Group World Bond FundTM (Canada) and Capital Group Capital Income BuilderTM (Canada) will also be reduced as we leverage the funds' scale to reduce third-party currency hedging costs
Current and new management fee rates for all Canadian fund series, as well as current and new administration fees for the currency hedged series are detailed below: