Capital Group will simplify mutual fund fees from June 1, potentially reducing costs for investors
Capital International Asset Management (Canada), Inc. has announced a simplification of the fixed-rate administration fees across its mutual funds, effective June 1.
The new structure will eliminate the three asset-based tiers, moving to a single fixed-rate administration fee for each series of a fund. This change may eventually result in lower management expense ratios (MERs) for funds not currently at the lowest administration fee rate.
Series A, A(US$) and T4
|
Fund Name |
Current Administration Fees (effective up to May 31) |
New Administration Fees (effective June 1) |
|---|---|---|
|
Capital Group International Equity FundTM (Canada) |
0.15% (Under $500M) / 0.09% ($500M - $1B) / 0.06% (Over $1B) |
0.06% |
|
Capital Group U.S. Equity FundTM (Canada) |
0.13% / 0.07% / 0.04% |
0.04% |
|
Capital Group Global Equity FundTM (Canada) |
0.13% / 0.08% / 0.05% |
0.05% |
|
Capital Group Canadian Focused Equity FundTM (Canada) |
0.13% / 0.07% / 0.04% |
0.04% |
|
Capital Group Capital Income BuilderTM (Canada) |
0.21% / 0.14% / 0.11% |
0.07% |
|
Capital Group Emerging Markets Total Opportunities FundTM (Canada) |
0.17% / 0.11% / 0.08% |
0.08% |
|
Capital Group Global Balanced FundTM (Canada) |
0.14% / 0.08% / 0.05% |
0.05% |
|
Capital Group Monthly Income PortfolioTM (Canada) |
0.11% / 0.07% / 0.05% |
0.05% |
|
Capital Group Canadian Core Plus Fixed Income FundTM (Canada) |
0.15% / 0.08% / 0.05% |
0.05% |
|
Capital Group World Bond FundTM (Canada) |
0.14% / 0.08% / 0.06% |
0.06% |
|
Capital Group Multi-Sector Income FundTM (Canada) |
0.15% / 0.11% / 0.08% |
0.07% |
Series F, F(US$) and F4
|
Fund Name |
Current Administration Fees (effective up to May 31) |
New Administration Fees (effective June 1) |
|---|---|---|
|
Capital Group International Equity FundTM (Canada) |
0.15% / 0.09% / 0.06% |
0.06% |
|
Capital Group U.S. Equity FundTM (Canada) |
0.13% / 0.07% / 0.04% |
0.04% |
|
Capital Group Global Equity FundTM (Canada) |
0.13% / 0.08% / 0.05% |
0.05% |
|
Capital Group Canadian Focused Equity FundTM (Canada) |
0.13% / 0.07% / 0.04% |
0.04% |
|
Capital Group Capital Income BuilderTM (Canada) |
0.20% / 0.13% / 0.09% |
0.07% |
|
Capital Group Emerging Markets Total Opportunities FundTM (Canada) |
0.17% / 0.11% / 0.08% |
0.08% |
|
Capital Group Global Balanced FundTM (Canada) |
0.14% / 0.08% / 0.05% |
0.05% |
|
Capital Group Monthly Income PortfolioTM (Canada) |
0.11% / 0.08% / 0.06% |
0.05% |
|
Capital Group Canadian Core Plus Fixed Income FundTM (Canada) |
0.15% / 0.08% / 0.05% |
0.05% |
|
Capital Group World Bond FundTM (Canada) |
0.18% / 0.12% / 0.10% |
0.06% |
|
Capital Group Multi-Sector Income FundTM (Canada) |
0.15% / 0.11% / 0.08% |
0.07% |
Series D
|
Fund Name |
Current Administration Fees (effective up to May 31) |
New Administration Fees (effective June 1) |
|---|---|---|
|
Capital Group International Equity FundTM (Canada) |
0.21% / 0.15% / 0.12% |
0.06% |
|
Capital Group U.S. Equity FundTM (Canada) |
0.18% / 0.13% / 0.10% |
0.04% |
|
Capital Group Global Equity FundTM (Canada) |
0.19% / 0.13% / 0.10% |
0.05% |
|
Capital Group Canadian Focused Equity FundTM (Canada) |
0.18% / 0.13% / 0.10% |
0.04% |
|
Capital Group Emerging Markets Total Opportunities FundTM (Canada) |
0.23% / 0.17% / 0.14% |
0.08% |
Series I
|
Fund Name |
Current Administration Fees (effective up to May 31) |
New Administration Fees (effective June 1) |
|---|---|---|
|
Capital Group International Equity FundTM (Canada) |
0.15% / 0.09% / 0.06% |
0.05% |
|
Capital Group U.S. Equity FundTM (Canada) |
0.13% / 0.07% / 0.04% |
0.04% |
|
Capital Group Global Equity FundTM (Canada) |
0.13% / 0.08% / 0.05% |
0.03% |
|
Capital Group Canadian Focused Equity FundTM (Canada) |
0.13% / 0.07% / 0.04% |
0.04% |
|
Capital Group Capital Income BuilderTM (Canada) |
0.15% / 0.08% / 0.05% |
0.05% |
|
Capital Group Emerging Markets Total Opportunities FundTM (Canada) |
0.17% / 0.11% / 0.08% |
0.06% |
|
Capital Group Global Balanced FundTM (Canada) |
0.14% / 0.08% / 0.05% |
0.05% |
|
Capital Group Monthly Income PortfolioTM (Canada) |
0.08% / 0.04% / 0.02% |
0.02% |
|
Capital Group Canadian Core Plus Fixed Income FundTM (Canada) |
0.15% / 0.08% / 0.05% |
0.05% |
|
Capital Group World Bond FundTM (Canada) |
0.14% / 0.08% / 0.06% |
0.05% |
|
Capital Group Multi-Sector Income FundTM (Canada) |
0.12% / 0.07% / 0.05% |
0.05% |
In addition to the changes to the fixed administration fees outlined above, the management fee for the Monthly Income Portfolio will also be lowered effective June 1.
Capital Group Monthly Income PortfolioTM (Canada) Lower Management Fees
|
Series |
Current (up to May 31) |
New (as of June 1) |
|---|---|---|
|
Series A and T4 |
1.65% (on first $5B) / 1.62% ($5B - $10B) / 1.60% (over $10B) |
1.60% / 1.57% / 1.55% |
|
Series F and F4 |
0.65% / 0.62% / 0.60% |
0.60% / 0.57% / 0.55% |
Rick Headrick, president of Capital Group in Canada, stated, "The recent change to the fees aligns with Capital Group's commitment to making decisions that prioritise the long-term interests of existing and new investors in our funds. Consistent active management, a simpler administration fee structure, and lower MERs on most of our mutual funds will help us deliver on our mission to help Canadian investors achieve their financial goals."
