2. The Fund’s investment in debt securities may be affected by changes in interest rates, credit ratings, and fluctuation in exchange rates of currencies in which these investments are denominated. Investment in bonds issued or guaranteed by governments may involve political, economic, default, or other risks.
3. If the Fund invests in debt securities which are below investment grade or unrated, including high yield bonds, it may, as a result, be subject to liquidity, volatility, default and counterparty risk.
4. While the Fund uses derivative instruments in a prudent manner and only for hedging and/or efficient portfolio management purposes, in an adverse situation, derivative instruments may expose the Fund to a risk of significant loss.
5. The Fund may at its discretion pay dividends out of and/or effectively out of capital. This amounts to a return of part of an investor’s original investment or distribution of capital gains. This may result in an immediate reduction in the net asset value per share.
6. The currency hedging process used for currency hedged share classes may not give a precise hedge; there is no guarantee that hedging will be totally successful.
7. Investors should not make any investment decision solely based on this document.
Important Notes:
WHY THIS FUND
A proven approach to capture US growth and income
Capital Group American Balanced Fund (LUX) (“AMBAL”) is part of one of the world’s largest and oldest US multi-asset strategies,1 which has navigated multiple market environments for 50 years.
Investors often face an uncertain market backdrop. A balanced US multi-asset portfolio aims to capture growth from the largest equity market in the world, while seeking to preserve capital and delivering income through bonds. This could help investors achieve more consistent outcomes over the long-term.
A balanced approach aims to deliver consistent results
AMBAL takes a prudent approach to growth and income in the US. The fund invests in high quality bonds and blue-chip dividend paying equities, alongside long-term growth opportunities, with the aim of achieving durable long-term returns. We have different share classes available to suit investor needs.
Capital Group’s American Balanced strategy has gained the confidence of approximately 3.5 million individual investors since it launched in 19752. The strategy has navigated different market conditions for over 50 years.
INSIGHTS
Fresh perspectives from our investment team
WHY CAPITAL GROUP?
A leader in global investing
For more than 90 years, we have been searching the world for long-term opportunities, making Capital one of the world’s oldest and largest active mutual fund asset managers.
Global investing credentials
US$2.5T
in total assets managed
28 years
average investment experience of our portfolio managers
US$496B
multi-assets managed
To find out more, talk to your bank or financial advisor, or visit our How to Subscribe page.
Capital Group American Balanced Fund (LUX) share classes
Past results are not a guarantee of future results.
Dividend yield as at 31 March 2025. The fund aims to pay dividend on a monthly basis. Positive distribution yield does not imply a positive return. Dividend yield is the income return on the share class and is shown for distributing share classes only. Dividend yield is annualised and corresponds to the sum of all dividend distributions from the last 12 months, divided by the month-end net asset value (NAV) per share. Dividend amount or dividend rate is not guaranteed. Dividends may be paid out of, or effectively out of, capital. If so, this amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to it. Any dividend distributed may result in an immediate reduction of the NAV per share.
Never miss a fixed income insight
The Capital Ideas newsletter delivers the investment insights that matter straight to your inbox.
1. Source: eVestment. Strategy inception: July 1975.
2. Data as at 30 September 2024. Source: Capital Group
Glossary:
- Blue-chip equities: Stocks that have a long record of profit growth and dividend payment and a reputation for quality management, products and services.
- Bond – A debt instrument, essentially a loan, issued by governments (a sovereign bond) or corporates (a corporate bond) and financed by investors. The bondholder receives interest payments, known as a coupon, and the principal of the bond when it is due.
- Capital – Refers to financial assets or the financial value of assets.
- Dividend yield – Dividend yield represents the ratio of dividends paid over the last 12 months to the net asset value as of the last month end. However, an annualised dividend yield is calculated on the basis of the most recent dividend payment when, in the last 12 months,
- a share class has been launched for the first time or
- a share class changed its dividend payment frequency or
- the dividend payment frequency was modified as a result of a corporate event (for instance a special dividend distribution or a closure and relaunch of the share class).
- Downside protection/resilience – An investment position that seeks to reduce the frequency and/or magnitude of capital losses resulting from the decline of a stock or a fall in the overall market.
- Equity – Shares of ownership in a company.
- High-quality equities and bonds – Companies with outstanding characteristics, which may include low debt, stable earnings, strong balance sheets and high margins. High quality bonds include government bonds and investment grade bonds (assets rated BBB- or higher by rating agencies Moody’s, Standard & Poor’s or Fitch). High quality bonds may offer a lower risk, lower potential return profile.
- Multi-asset fund – Funds that invest in a mix of equities and bonds.
- Total expense ratio (TER) – A measure of the total costs associated with running the fund, including marketing and distribution costs.
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.
- The Prospectus - together with locally required offering documentation - sets out risks which, depending on the fund, may include risks associated with investing in fixed income, derivatives, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.