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.
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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 $1B)
|
0.06%
|
Capital Group U.S. Equity FundTM (Canada)
|
0.13% / 0.07% / 0.04%
|
0.04%
|
Capital Group Global Equity FundTM (Canada)
|
0.13% / 0.08% / 0.05%
|
0.05%
|
Capital Group Canadian Focused Equity FundTM (Canada)
|
0.13% / 0.07% / 0.04%
|
0.04%
|
Capital Group Capital Income BuilderTM (Canada)
|
0.21% / 0.14% / 0.11%
|
0.07%
|
Capital Group Emerging Markets Total Opportunities FundTM (Canada)
|
0.17% / 0.11% / 0.08%
|
0.08%
|
Capital Group Global Balanced FundTM (Canada)
|
0.14% / 0.08% / 0.05%
|
0.05%
|
Capital Group Monthly Income PortfolioTM (Canada)
|
0.11% / 0.07% / 0.05%
|
0.05%
|
Capital Group Canadian Core Plus Fixed Income FundTM (Canada)
|
0.15% / 0.08% / 0.05%
|
0.05%
|
Capital Group World Bond FundTM (Canada)
|
0.14% / 0.08% / 0.06%
|
0.06%
|
Capital Group Multi-Sector Income FundTM (Canada)
|
0.15% / 0.11% / 0.08%
|
0.07%
|
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Series F, F(US$) 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%
|
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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%
|
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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.
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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%
|
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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.”
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