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Capital Group cuts fees on 18 funds
Twelve of the funds affected are fixed income funds, with the asset manager promising investors $20m in cost savings.
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Capital Group, which runs American Funds, is cutting fees on 18 funds, claiming the change will lead to $20m in savings for investors.
‘At Capital, we have a long history of sharing the benefits of scale with our fund shareholders through lower fees. Small differences in investment outcomes – just a few basis points – can compound over a lifetime and drive vastly different experiences for people,’ said Mike Gitlin, a member of the Capital Group management committee.
The funds affected – 12 of which are fixed income funds – are as follows:
| Fund name | Old expense ratio | New expense ratio |
|---|---|---|
| American Funds Corporate Bond fund | 0.36% | 0.25% |
| American Funds Emerging Markets Bond fund | 0.55% | 0.46% |
| American Funds Multi-Sector Income fund | 0.42% | 0.33% |
| American Funds Strategic Bond fund | 0.30% | 0.28% |
| American Funds Mortgage fund | 0.19% | 0.18% |
| American Funds Short-Term Bond Fund of America | 0.26% | 0.25% |
| American Funds Inflation-Linked Bond fund | 0.26% | 0.25% |
| American Funds Short-Term Tax-Exempt Bond fund | 0.33% | 0.20% |
| American Funds Tax-Exempt fund of New York | 0.29% | 0.24% |
| American Funds Tax-Exempt fund of California | 0.26% | 0.23% |
| American Funds Tax-Exempt Bond Fund of America | 0.20% | 0.18% |
| American High-Income Municipal Bond fund | 0.25% | 0.24% |
| American Funds International Vantage fund | 0.60% | 0.48% |
| American Funds Developing World Growth & Income fund | 0.73% | 0.65% |
| American Funds Global Insight fund | 0.42% | 0.41% |
| Capital Group Emerging Markets Growth fund | 0.76% | 0.62% |
| VI Ultra Short Bond fund | 0.32% | 0.26% |
| VI International fund | 0.49% | 0.48% |
Capital Group also said all affected funds have less than $15bn in assets. As of December 31, 2021, the asset manager had more than $2.7tn in AUM.
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