Implementation of our Engagement Policy

This page provides details of how Capital Group has implemented its Engagement Policy that has been prepared in accordance with the Shareholder Rights Directive EU/2017/828 (SRD II), and is reviewed annually.

Stewardship

As outlined in our Engagement Policy, stewardship is an essential part of our responsibility as managers of our clients’ assets and as providers of capital to investee companies. Our Stewardship Report describes our progress and continued commitment to ESG integration and stewardship, and how we are continually striving to meet our clients’ needs and expectations in this area.

Proxy voting

A proxy authorises someone other than the owner of a stock to cast a vote on his or her behalf at the issuing company’s shareholder meeting. Proxies typically are used by shareholders to elect a company’s board of directors, select independent auditors, approve executive compensation, and vote on other management- or shareholder-sponsored proposals.

With responsibility for millions of shares of stocks, Capital Group routinely votes by proxy. Through this process, we aim to promote the long-term financial interests of our shareholders.

Our proxy voting procedures and principles

We view proxies of companies held by the portfolios as significant fund assets — and proxy voting as an integral part of the overall investment process. Our approach to proxy voting can be found in our Global Proxy Voting Procedures and Principles

As we explain in our Engagement Policy, we rely primarily on our own proprietary research in evaluating companies. To provide supplementary analysis of resolutions at shareholder meetings, we will often review proxy research from third party vendors. However, voting decisions are made according to our internal voting policies and Capital Group Analysts’ recommendations and we do not automatically follow proxy adviser recommendations.

Our proxy voting results

Links to the most recent proxy voting results for equity securities held in each of our Luxembourg Funds, UK Funds and segregated portfolios managed by Capital International Management Company SARL, Capital Group UK Management Company Limited and Capital international Limited for each fiscal year are listed below. In line with the expectations of SRD II, we disclose how we vote (for, against or abstain) and provide the rationale for votes against management, shareholder proposals and other votes that we deem significant.

Capital Group AMCAP Fund (Lux)
Capital Group Asian Horizon Fund (Lux)
Capital Group Emerging Markets Total Opportunities Fund (Lux)
Capital Group European Growth and Income Fund (Lux)
Capital Group European Opportunities (Lux)
Capital Group Global Allocation Fund (Lux)
Capital Group Global Equity Fund (Lux)
Capital Group UK – Global High Income Opportunities
Capital Group Investment Company of America Fund (Lux)
Capital Group Japan Equity Fund (Lux)
Capital Group New Economy Fund (Lux)
Capital Group New Perspective Fund (Lux)
Capital Group New World Fund (Lux)
Capital Group World Dividend Growers Fund (Lux)
Capital Group World Growth and Income Fund (Lux)
Capital Group High Income Opportunities Fund (Lux)
Capital Group US High Yield Fund (Lux)
Capital Group Capital Income Builder Fund (Lux)
Capital Group Emerging Markets Growth Fund (Lux)
Capital Group Global Total Return Bond Fund (Lux)
Capital Group Multi-Sector Income Fund (Lux)
Capital International Limited Segregated Account Report
Capital International Management Company Segregated Account Report

*Capital Group has three separate equity divisions: Capital Research and Global Investors; Capital World Investors and Capital International Investors. These divisions have discrete investment research and proxy voting procedures. Where a company is held by more than one division, it is possible that the separate divisions may vote differently on certain proposals put forward by the company as a result of a diversity of opinions among our investment divisions. On these occasions, each division will vote the shares that they are managing, resulting in a split vote.