Capital Group Canada announces additional tiers for lower management fees

TORONTO, May 21, 2020 /CNW/ - Effective June 1, 2020, Capital International Asset Management (Canada), Inc. ("Capital Group") will implement new management fee tiers on Capital Group Capital Income Builder^TM (Canada) ("Capital Income Builder") and Capital Group International Equity Fund^TM (Canada) ("International Equity"). These fee tiers allow Capital Group to pass economies of scale on to investors as fund assets grow.

A new lower management fee tier will apply to Capital Income Builder and International Equity assets in excess of $500 million. 

Capital Group Capital Income Builder (Canada) Annual management fee rates
Asset tiers	Series A & AH	Series F & FH
Up to $500 million	1.70%	0.70%
Over $500 million (as of June 1, 2020)	1.65%	0.65%

Capital Group International Equity Fund (Canada) Annual management fee rates
Asset tiers	Series A	Series D	Series F
Up to $500 million	1.80%	1.05%	0.80%
Over $500 million (as of June 1, 2020)	1.75%	1.00%	0.75%

These fee tiers will also impact those series with negotiated fees, since the negotiated management fee for Series I units will not exceed the fees payable for Series F units of the funds, and the negotiated management fee for Series O units will not exceed the fees payable for Series A units of the funds. Please see the prospectus for additional details.

What these changes mean to investors

The MER, or management expense ratio, includes the management fee, operating expenses (including the administration fee) and taxes on those fees. Lower fees result in lower MERs, which can contribute to better results for investors, continuing Capital Group's longstanding practice of making decisions based on what they believe is in the best long-term interest of investors.

About Capital Group

Capital International Asset Management (Canada), Inc. is part of Capital Group, a global investment management firm originating in Los Angeles, California. Since 1931, Capital Group has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. As of March 31, 2020, Capital Group manages more than US$1.7 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.

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.

For more information, visit: www.capitalgroup.com/ca/en

SOURCE Capital Group Canada

Media contact: Caroline Semerdjian, [email protected], [phone]