Capital Group Canada announces lower fees for Global Equity investors

Firm also announces portfolio manager changes to its Canadian Core Plus Fixed Income strategy

TORONTO, May 19, 2021 /CNW/ - Capital International Asset Management (Canada), Inc. ("Capital Group") is adding a new management fee tier to Capital Group Global Equity Fund^TM (Canada) ("Global Equity") to further its longstanding commitment to lower costs for investors.

Effective June 1, 2021, a new lower management fee tier will apply to Global Equity assets in excess of $11.5 billion. The fee tiers allow Capital Group to pass economies of scale on to investors as assets grow.

"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."

Capital Group Global Equity Fund (Canada) annual management fee rates

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	1.685%	0.935%	0.685%
Over $6.5 billion and up to $11.5 billion	1.665%	0.915%	0.665%
Over $11.5 billion (as of June 1, 2021)	1.650%	0.900%	0.650%

What this means for investors

A fund's management expense ratio, or "MER," includes the management fee, operating expenses (including the fixed administration fee) and taxes on those fees. Lower fees result in lower MERs, which can contribute to better outcomes for investors. The new lower fee tier aligns with Capital Group's practice of making decisions based on what it believes is in the best long-term interest of investors.

Management team update to Capital Group Canadian Core Plus Fixed Income Fund^TM (Canada)

In addition to announcing the new, lower management fee tier for its Global Equity portfolio, Capital Group also announced changes to the portfolio management team for Capital Group Canadian Core Plus Fixed Income Fund (Canada). Effective July 1, 2021, portfolio manager Thomas H. Høgh will transition off of the mandate.

The mandate continues to be supported by the following portfolio managers:

• Timothy Ng (15 years of experience, based in Los Angeles)
• Thomas Reithinger (10 years of experience, based in London, U.K.)

Thomas Høgh (34 years of experience, based in London) continues to be a portfolio manager of Capital Group World Bond Fund^TM (Canada) and Capital Group Global Balanced Fund^TM (Canada).

Capital Group uses a distinct method of managing portfolios called The Capital System^TM, which the organization developed more than 60 years ago. This system creates a complementary mix of investment professional approaches, experience levels, backgrounds and areas of focus. One of its many benefits is that changes to the portfolio manager lineup are less disruptive to the overall strategy than they would be in a single-manager system. A manager's departure from or addition to a strategy happens in an orderly manner as each strategy is built to ensure long-term continuity around a team of decision-makers. These shifts can be made with minimal disruptions to the day-to-day operations and the overall objective of the strategy.

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, the Capital Group organization has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. As of December 31, 2020, Capital Group manages more than US$2 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.

Capital Group manages 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 the three equity investment groups.

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

SOURCE Capital Group Canada

Media contact: Caroline Semerdjian, Capital Group, [email protected], [phone]; Maggie Hall, Kaiser & Partners, [email protected], [phone]