Absolute Income Grower SM | Capital Group

DIVIDEND INCOME AND APPRECIATION

Absolute Income GrowerSM

Vehicle: Collective Investment Trust, Separate Account

Overview

Objective: Provide, over the long term, a level of income that exceeds the average yield on U.S. stocks generally, to grow such income annually and to distribute an increasing amount of income. In addition, seeks to provide long-term growth of capital.

  • Strategy inception date: 2003
  • Assets in strategy (millions): $595.3
  • Benchmarks: 
    • MSCI World Index
    • 60% MSCI ACWI/40% Bloomberg Barclays Global Aggregate Bond Index
  • Invests in:
    • Global equities
    • Convertibles
    • Fixed income securities
  • Minimum account size (millions):
    • Collective investment trust: $5
    • Separate account: $50

Assets in strategy as of March 31, 2018

For a DC collective investment trust, plan size of $250 million may be used to satisfy the minimum account size requirement.

Separate accounts assume fixed income exposure is achieved solely via pooled investment vehicles.

 


Approach
  • A core belief in independent research, a long-term focus and diverse viewpoints through The Capital System℠ define our investment process
  • We have a large global team of analysts that carefully examines each company’s dividend policy, history and payout ratio to identify securities that can provide attractive yield and dividend growth over the long term
  • Investment professionals share ideas and research globally to gain a more comprehensive knowledge of securities and the markets in which they operate
  • Most of our analysts have made research their career, which affords long-standing relationships with key people in the companies they follow and a long-term perspective that helps analysts project a company’s dividends several years ahead
  • The Absolute Income Grower team includes three equity managers, as well as U.S. investment-grade and global high-yield management teams each led by a lead manager
  • Although the investment universe is large, managers must maintain a disciplined focus on meeting the portfolio’s specific income and income-growth targets. The different investment approaches among managers creates a broadly diversified portfolio of the team’s best ideas. The Principal Investment Officer helps ensure the team has the proper mix of complementary investment styles
  • We have a comprehensive framework for addressing risk
    • Our research process and The Capital System help diversify the portfolio
    • Capital’s independent global investment control group monitors compliance with portfolio guidelines
    • Our legal and compliance team helps make certain we adhere to regulations in the markets in which we invest

Returns

Investment Results (PDF)

 

 


Portfolio Composition

Get a breakdown of holdings for this strategy and the benchmark.

Geographic and Sector Diversification (PDF)

 

 


Resources


Fund Characteristics

Defined Benefit Plans (PDF)

Defined Contribution Plans (PDF)

Endowments/Foundations (PDF)


Additional Reports
Defined Benefit Plans

Annual Report (PDF)

Defined Contribution Plans

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)

 

 


 

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.

Any collective investment trusts (“CITs”) available under the strategy shown are maintained by Capital Bank and Trust Company (“trustee”), which has retained an affiliate to serve as investment adviser to the trustee for the CITs.

 


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 or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing.