A strategy for growing revenue streams and lower volatility


TORONTO, October 31, 2018 /CNW/ – Capital Group today launched Capital Group Capital Income BuilderSM (Canada), a globally diversified income equity portfolio designed for investors seeking growing income and reduced volatility.

“Capital Income Builder’s mandate becomes more relevant every year,” said the portfolio manager. Joyce Gordon. “We’re living longer, costs continue to rise, and our retirement years could match our working years.”

The strategy is rooted in Capital Group’s long-standing appreciation of the value of dividends for long-term investors. “What differentiates Capital Income Builder is that we really start the investment process with the dividend,” said Jim Lovelace, chief investment officer and a portfolio manager on the mandate. “We are focused on dividends and dividend growth. The fund’s quiet reliability may be one of its greatest accomplishments,” Lovelace said.

The Capital Income Builder strategy was designed over 30 years ago in the United States to meet the needs of a foundation. “Since that time, Capital Income Builder has provided investors with an experience similar to an endowment: a steady stream of growing income, along with downside protection,” said Marc Tiffin, Chairman of Capital International Asset Management (Canada). “Now the strategy – backed by the same investment team – is available to Canadian investors.”

Capital Income Builder applies a rigorous eligibility process to evaluate companies that pay a dividend and have the potential to grow that dividend over time. Fundamental research is key to identifying quality companies that portfolio managers believe have strong management, good business models and the ability to grow earnings and dividends. This field research cannot be duplicated by quantitative screens.

The recent stock market volatility reminds investors that markets don’t always go up. Along with its focus on increasing income, Capital Income Builder is designed to provide a cushion in bear markets. Its discipline of investing in strong companies with solid dividend prospects can help investors participate in market gains, while providing resilience in the event of a downturn.

Capital Income Builder’s 12 portfolio managers have an average of 28 years of investment experience. Each invests a portion of the assets independently, with another round managed by a group of investment analysts. This method of portfolio management, called The Capital SystemSM, is Capital Group’s proprietary approach to investment management. Leveraging Capital’s strong global research network, Capital Income Builder looks beyond North America in the search for companies paying dividends.

The portfolio is offered to Canadian investors by Capital International Asset Management (Canada), Inc., which is part of Capital Group. Capital Group has managed income equity portfolios in the United States since 1973.

About Capital Group
Capital International Asset Management (Canada), Inc. and Capital Group Funds are part of Capital Group, a global investment management company originating in Los Angeles, California. Since 1931, Capital Group has been uniquely focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. From June 30, 2018, Capital Group manages more than US$1.8 trillion of equities and fixed income assets for millions of individual and institutional investors around the world.

SOURCE Capital Canada Group

For further information: Media contacts: Caroline Semerdjian, [email protected], (213) 615-3185, website: capitalgroup.com/ca; Andrea Hermann, [email protected], (416) 697-9037


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