American Funds selected for Morningstar’s “The Terrific 28” list | Capital Group


American Funds selected for Morningstar’s “The Terrific 28” list

Six American Funds have been included in the Morningstar® FundInvestor℠ “The Terrific 28” list. Morningstar’s review of 8,000 mutual funds identified 28 funds screened for criteria that include expenses, manager ownership, returns, parent rating and risk ratings.

The American Funds that made Morningstar’s list are:

About Capital Group

Since 1931, Capital Group, home of the American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. As of September 30, 2019, Capital Group manages more than $1.9 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.

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

Source: Morningstar, “FundInvestor: The Terrific 28,” by Russel Kinnel, May 2019. Morningstar’s criteria for the “Terrific” list include: expense ratio in the cheapest quintile, manager investment of more than $1 million in the fund, Morningstar Risk rating below the High level, Morningstar Analyst Rating of Bronze or higher, Parent rating of Positive, returns above the fund’s benchmark over the manager’s tenure for a minimum of five years, must be a share class accessible to individual investors, and no funds of funds. Each fund’s results were evaluated based on share classes that were accessible to individual investors. Morningstar evaluated American Funds’ Class A shares because they are most widely held by individual investors. The list’s criteria have changed over the years.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

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