Firm unveils new management fee tier scheme for global equity mandate, portfolio manager change for core plus fixed income fund
Capital Group is making a pricing change to its global equity mandate and has announced a change to its core plus fixed income strategy.
Redoubling its commitment to lower costs for investors, the firm has announced that effective June 1, it will apply a new management fee tier to its Capital Group Global Equity Fund. For assets in excess of $11.5 billion, Series A and T4 units will come with an annual management fee of 1.650%. Series D will have a fee rate of 0.900%, while Series F and F4 will be charged 0.650%.
“Our goal at Capital Group is to provide access to our experienced global network of investment professionals while keeping fees as low as possible,” said Rick Headrick, president of Capital Group in Canada. “Our sole focus is investing for the long-term, and as an active manager, we work to improve outcomes with attention to risk and good stewardship, including low fees.”
With the new management fee tier, the Capital Group Global Equity Fund (Canada) management fee schedule will be as follows:
|
Asset tiers |
Series A & T4 |
Series D |
Series F & F4 |
|
Up to $500 million |
1.80% |
1.05% |
0.80% |
|
Over $500 million and up to $1.5 billion |
1.75% |
1.00% |
0.75% |
|
Over $1.5 billion and up to $3.5 billion |
1.71% |
0.96% |
0.71% |
|
Over $3.5 billion and up to $6.5 billion |
1.69% |
0.94% |
0.69% |
|
Over $6.5 billion and up to $11.5 billion |
1.67% |
0.92% |
0.67% |
|
Over $11.5 billion (as of June 1, 2021) |
1.65% |
0.90% |
0.65% |
The firm has also announced that effective July 1, the portfolio management team for its Capital Group Canadian Core Plus Fixed Income Fund (Canada) will no longer include portfolio manager Thomas H. Høgh.
The mandate will still be supported by LA-based portfolio manager Timothy Ng, who has 15 years of experience, and London-based Thomas Reithinger, who has 10 years of experience.
Høgh, who has 34 years of experience and is also London-based, will continue to be a portfolio manager for the Capital Group World Bond Fund (Canada) and Capital Group Global Balanced Fund (Canada).
