KEY BENEFITS
Seeking to capture growth in a lower-risk manner1
A prudently-managed portfolio designed to capture capital appreciation potential and income growth opportunities.
A lower risk solution1 to capture growth potential
Focusing on income-generating securities with lower volatility
A prudently-managed portfolio seeking reliable income
Primarily consists of quality dividend-paying stocks and bonds for income growth and to buffer against market downturns
Designed to offer downside resilience in volatile times
Aims to offer stability and capital preservation in choppy markets
1. Compared to a 100% global equity portfolio.
THINGS TO CONSIDER
Working towards long-term stable growth while considering risks
While investing in global equities and bonds offers investors growth potential, it still carries general investment, equities, fixed income and other risks that may cause your investment to decline or suffer losses.
Risk considerations
WHY INVEST IN THIS FUND
A lower risk solution2 that aims to capture equity growth potential
This fund could help address your clients’ need for equity growth without excessive exposure to volatility, while seeking to provide a long-term, growing income stream.
2. Compared to a 100% global equity portfolio.
The experience to deliver
The investment team behind this fund
Aline Avzaradel
San Francisco
19 years with Capital
Alfonso Barroso
London
29 years with Capital
Grant L. Cambridge
Los Angeles
27 years with Capital
Charles E. Ellwein
San Francisco
18 years with Capital
David A. Hoag
Los Angeles
32 years with Capital
Winnie Kwan
Hong Kong
24 years with Capital
James B. Lovelace
Los Angeles
42 years with Capital
Fergus N. MacDonald
Los Angeles
20 years with Capital
Caroline Randall
London
18 years with Capital
Steven Watson
Hong Kong
34 years with Capital
Philip Winston
London
27 years with Capital
William L. Robbins
San Francisco
29 years with Capital
Research Portfolio
Research analysts are allocated
part of the fund assets to manage
Let's kickstart your client conversation
Additional information on how this fund can help meet your clients’ needs
- A lower risk solution to capture growth potential
A defensive approach to investing in global equity markets, focusing on income-producing securities with lower volatility. - A prudently-managed portfolio seeking reliable income
The portfolio primarily consists of quality dividend-paying stocks and bonds for income growth and to buffer against market downturns. - A track record of resilient returns in volatile times
The strategy has consistently delivered resilience during periods of equity market volatility across multiple market cycles3.
3. Since its inception on 31 July 1987, the strategy has outpaced MSCI ACWI in every down market when the index fell more than 10%.
The information in relation to the index is provided for context and illustration only. The fund is an actively managed UCITS. It is not managed in reference to a benchmark. Past results are not a guarantee of future results.
We are living in a world with rising uncertainty.
- The defensive approach of this fund could be supportive in the current volatile market environment.
- This fund aims to address investors’ need for equity growth without excessive exposure to volatility.
- By combining higher quality, lower risk income-generating equity and fixed income investments, the fund aims to participate in strong markets as well as to achieve downside resilience in times of volatility.
This fund is positioned to address near- and long-term opportunities and challenges through its exposure to:
- Firms with a strong dividend-paying culture
- Dividend compounders with healthy free cash flow and balance sheets
- Companies with clear, sustainable pricing power to combat inflation
The fund’s primary objectives are to achieve a level of current income that exceeds the average yield on US stocks and provide growth of income, expressed in USD, by investing in income-producing securities, including common stocks and bonds. Growth of capital is a secondary objective.
Capital Income Builder invests in quality income-generating assets to attain both capital appreciation and defensiveness. By combining investments in companies that have a strong dividend-paying culture with investment grade bond investments, the fund seeks the best of both worlds - to participate in strong markets as well as to achieve downside resilience in times of volatility.
Capital Group has more than 50 years of multi-asset investment experience, dating back to the 1970s with the launch of our first multi-asset fund in the US.
Capital Income Builder’s seasoned portfolio manager team has navigated multiple market environments. They have a deep understanding of market complexities and the ability to invest in their highest conviction ideas.
Taking the long view
We base our investment decisions on a long-term perspective, aligning our goals with the interests of your clients. Superior, long-term returns are our goal. Our portfolio managers are rewarded for their results, not the level of assets they manage.
Breadth of experience
Our process enables individual investment professionals to act on their highest convictions while limiting the risk associated with isolated decision-making. We draw on their diverse experience to build the portfolio.
Deep, fundamental research
The scale and scope of our proprietary research, built over 90 years, allows us to uncover what we believe to be compelling investment opportunities for our clients. Investment analysts conduct thousands of research visits globally every year. This research is then combined with comprehensive macro analysis. This approach has been essential to the results we have delivered to our investors.
Capital Group manages 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.
Find out more about what this fund has to offer
WHY CAPITAL GROUP
A leader in global investing
For more than 90 years, we’ve been searching the world for long-term opportunities, making Capital one of the oldest global investors today.
Global investing credentials
US$2.5T
in total assets managed
28 years
average investment experience of our portfolio managers
US$496B
in multi-asset strategies
Data as at 31 December 2023
High conviction investments. Diverse perspectives.
The Capital SystemTM is designed to produce highly diverse portfolios that deliver consistent long-term results, a smoother ride and management continuity over a range of market conditions.
We believe ESG is key to successful investing. So we consider environmental, social and governance issues before we invest.
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We're here with the support and solutions you need.
Don't hesitate to reach out if you have questions or need assistance.
Bérenger de la Blache, CFA
Managing Director,
Financial Intermediaries & Institutional
Luxembourg, Belgium & France
+352 27 17 6245
Berenger.delaBlache@capitalgroup.com
Kim Pex
Managing Director,
Financial Intermediaries & Institutional
Luxembourg, Belgium & France
+352 27 17 6223
Kim.Pex@capitalgroup.com
Zoé Lavaud
Business Development Associate
Financial Intermediaries & Institutional
Luxembourg, Belgium & France
+352 27 17 6287
Zoe.lavaud@capitalgroup.com
Fatiha Benmaamar
Client Relations Manager
Luxembourg, Belgium & France
+352 27 17 6237
Fatiha.Benmaamar@capgroup.com
Grégoire Seron
Marketing Director
Luxembourg, Belgium & France
+352 27 17 6224
Gregoire.Seron@capitalgroup.com
Marie Henquet
Client Group Assistant
Luxembourg, Belgium & France
+352 27 17 6289
Marie.Henquet@capitalgroup.com
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.
- If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- Some portfolios may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
- There are additional ABS/MBS, Bonds, Counterparty, Derivative instruments, Equities, Liquidity and Operational risks associated with this fund.
Fund risks
ABS/MBS risk: The fund may invest in mortgage- or asset-backed securities. The underlying borrowers of these securities may not be able to pay back the full amount that they owe, which may result in losses to the fund.
Bonds risk: The value of bonds can change as a result of interest rate changes – typically when interest rates rise, bond values fall. Funds investing in bonds are exposed to credit risk. A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
Counterparty risk: Other financial institutions provide services to the fund such as safekeeping of assets, or may serve as a counterparty to financial contracts such as derivatives. There is a risk the counterparty will not meet their obligations.
Derivative instruments risk: Derivatives are financial instruments deriving their value from an underlying asset and may be used to hedge existing exposures or to gain economic exposure. A derivative instrument may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
Equities risk: The prices of equity securities may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund, overall market changes, local, regional or global political, social or economic instability and currency fluctuations.
Liquidity risk: In stressed market conditions, certain securities held by the fund may not be able to be sold at full value, or at all. This could cause the fund to defer or suspend redemptions of its shares, meaning investors may not have immediate access to their investment.
Operational risk: The risk of potential loss resulting from inadequate or failed internal processes, people and systems or from external events.
Data as at 31 December 2023 and attributed to Capital Group, unless otherwise specified.