Capital Group Canada launches Capital Income Builder: A strategy seeking a growing income stream and lower volatility

TORONTO, Oct. 31, 2018 /CNW/ - Capital Group today launched Capital Group Capital Income Builder^SM (Canada), a globally diversified equity-income portfolio designed for investors seeking growing income and lower volatility.

"Capital Income Builder's mandate grows more relevant with each passing year," said portfolio manager Joyce Gordon. "We're living longer, costs continue to rise and our years in retirement could match our working years."

The strategy is rooted in Capital Group's longstanding appreciation of the value of dividends for long-term investors. "What makes Capital Income Builder different is that we really do start the investment process with the dividend," said Jim Lovelace, principal investment officer and a portfolio manager on the mandate. "We focus on dividends and growth of dividends. The fund's quiet dependability may be one of its greatest achievements," said Lovelace.

The Capital Income Builder strategy was conceived more than 30 years ago in the U.S. to meet the needs of a foundation. "Since that time, Capital Income Builder has provided investors with an endowment-like experience: a steady stream of growing income, plus downside protection," said Mark Tiffin, president of Capital International Asset Management (Canada). "Now, the strategy – supported by the same investment team – is available to Canadian investors."

Capital Income Builder applies a stringent eligibility process to evaluate companies that pay a dividend and have the potential to grow that dividend over time. Fundamental research is the key to identifying quality companies that, in the portfolio managers' view, have strong managements, good business models and the ability to grow earnings and dividends. This on-the-ground research can't be duplicated by quantitative screens. 

The recent equity market volatility is a sobering reminder to investors that markets don't always move upward. Hand in hand with its focus on rising income, Capital Income Builder is designed to provide a cushion in down markets. Its discipline of investing in solid companies with strong dividend prospects can help investors participate in market gains, while providing resilience during downturns.

Capital Income Builder's 12 portfolio managers have a median of 28 years of investment experience. Each invests a portion of the assets independently, with another sleeve managed by a group of investment analysts. This method of portfolio management, called The Capital System^SM, is Capital Group's proprietary approach to managing investments. Leveraging Capital's strong global research network, Capital Income Builder looks well beyond North America in seeking dividend-paying companies.

The portfolio is offered to Canadian investors by Capital International Asset Management (Canada), Inc., part of Capital Group. Capital Group has been managing equity-income portfolios in the U.S. since 1973.

About Capital Group
Capital International Asset Management (Canada), Inc. and Capital Group Funds are 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 June 30, 2018, Capital Group manages more than US$1.8 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.

SOURCE Capital Group Canada

Media Contacts: Caroline Semerdjian, [email protected], [phone], Website: capitalgroup.com/ca; Andrea Herman, [email protected], [phone]