The American Funds Advantage | Capital Group

The Capital Advantage℠

Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with
The Capital System℠ — has resulted in a superior long-term track record.

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Aligned With Investor Success

We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1

Our investment philosophy is based on doing what we believe is right for clients:

We reward long-term results
Compensation paid to our investment professionals is heavily influenced by investment results over one-, three-, five- and eight-year periods. Increasing weight is placed on each successive measurement period to encourage a long-term investment approach.

We invest alongside you
Collectively, Capital Group associates are significant investors in the companys investment offerings.

Why it matters:

Our interests are deeply intertwined with those of clients.

Portfolio manager experience as of December 31, 2016.

Compensation paid to our investment professionals is heavily influenced by investment results over one-, three-, five- and eight-year periods. Increasing weight is placed on each successive measurement period to encourage a long-term investment approach.

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The Capital System℠

The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

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Portfolio management team as of prospectus dated January 1, 2017.

The Complete Process

Investment analysts representing a variety of geographic regions and sector concentrations follow the universe of investment opportunities identified in the investment offering.

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The Complete Process

Portfolio managers — and, notably, analysts as well — are assigned a portion, or sleeve, of the overall investment offering to manage independently, enabling them to focus on their highest conviction ideas.

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A Diversified Portfolio

The end result is a diversified portfolio composed of individual managers’ and analysts’ highest conviction investment ideas. Combining experienced managers’ best independent decisions that are consistent with the investment offering‘s specific objectives delivers a portfolio with the potential for superior results over time.

 

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Diversified portfolio

For illustrative purposes only. In funds with research portfolios, analysts invest directly in a limited number of the companies they cover.

Superior Long-Term Track Record

Our equity funds have a proven record of success over multiple cycles.

The American Funds have delivered consistently superior results over meaningful periods. Our equity funds have beaten their Lipper peer indexes in 93% of 10-year periods and 98% of 20-year periods.* Our fixed-income funds have beaten their Lipper indexes in 80% of 10-year periods and 80% of 20-year periods.* Investors have been able to count on us for consistent long-term results.

* Based on Class F2 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund®, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.

Past results are not predictive of results in future periods.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

 


Our equity funds have beaten their Lipper peer indexes in

93% of 10-year periods

and

98% of 20-year periods.*


 
 
 
 
 
 
 
 
 
 
 
 
 
 

*Based on Class A share results for rolling periods through December 31, 2015. Periods covered are the shorter of the fund's lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund®, for which the Lipper average was used).

Past results are not predictive of results in future periods.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is
contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be
read carefully before investing.

Our fees are among the lowest in the industry

•     We are committed to providing exceptional services at a reasonable cost.

•     We have some of the lowest management fees among mutual fund companies.

Why it matters

Lower fees can mean better long-term results for your clients.

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The American Funds expense ratios are for Class A shares as of each fund’s most recent printed prospectus available on December 31, 2016. For American Funds Tax−Exempt Fund of New York the investment adviser is currently reimbursing a portion of other expenses. Net expense ratios reflect the reimbursement, without which they would have been higher. This reimbursement will be in effect through at least September 30, 2017, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Please see the fund’s most recent prospectus for details. Expense ratios do not reflect sales charges. Due to their significant investments outside the U.S., Capital World Growth and Income Fund, EuroPacific Growth Fund, International Growth and Income Fund, New Perspective Fund, New World Fund and SMALLCAP World Fund are included in the International/Global Equity category.

Source for industry averages: Lipper, based on comparable categories for front−end load funds (except money market funds, which are compared against no−load funds), excluding funds of funds, as of each fund’s most recent fiscal year−end available as of December 31,2016.

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Aligned With Investor Success

We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1

The Capital System℠ >

The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

Superior Long-Term Track Record >

Our equity funds have beaten their Lipper peer indexes in 93% of 10-year periods and 98% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 80% of 10-year periods and 80% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3

1 Portfolio manager experience as of December 31, 2016.
2 Based on Class F-2 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund's lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used).
3 On average, our management fees were in the lowest quintile 73% of the time, based on the 20-year period ended December 31, 2016, versus comparable Lipper categories, excluding funds of funds.
Past results are not predictive of results in future periods.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.