Absolute Income Grower SM | Capital Group

  • ACCOUNTS
  • INVESTMENTS
  • CLIENT SOLUTIONS
  • INSIGHTS
  • EVENTS
  • ABOUT US

DIVIDEND INCOME AND APPRECIATION

Absolute Income GrowerSM

Vehicle: Collective Investment Trust, Separate Account

You must be logged in to view select strategy information

Overview

Objective: Provide, over the long term, a level of income that exceeds the average yield on U.S. stocks generally, to grow such income annually and to distribute an increasing amount of income. In addition, seeks to provide long-term growth of capital.

  • Strategy inception date: 2003
  • Assets in strategy (millions): $597.3
  • Benchmarks: 
    • MSCI World Index
    • 60% MSCI ACWI/40% Bloomberg Barclays Global Aggregate Bond Index
  • Invests in:
    • Global equities
    • Convertibles
    • Fixed-income securities
  • Minimum account size (millions):
    • Collective Investment Trust: $5
    • Separate Account: $50

Assets in strategy as of March 31, 2017.

For a DC collective investment trust, plan size of $250 million may be used to satisfy the minimum account size requirement.

Separate accounts assume fixed-income exposure is achieved solely via pooled investment vehicles.

 


Approach
  • A core belief in independent research, a long-term focus and diverse viewpoints through The Capital System℠ define our investment process
  • We have a large global team of analysts that carefully examines each company’s dividend policy, history and payout ratio to identify securities that can provide attractive yield and dividend growth over the long term
  • Investment professionals share ideas and research globally to gain a more comprehensive knowledge of securities and the markets in which they operate
  • Most of our analysts have made research their career, which affords long-standing relationships with key people in the companies they follow and a long-term perspective that helps analysts project a company’s dividends several years ahead
  • The Absolute Income Grower team includes three equity managers, as well as U.S. investment-grade and global high-yield management teams each led by a lead manager
  • Although the investment universe is large, managers must maintain a disciplined focus on meeting the portfolio’s specific income and income-growth targets. The different investment approaches among managers creates a broadly diversified portfolio of the team’s best ideas. The mandate manager helps ensure the team has the proper mix of complementary investment styles
  • We have a comprehensive framework for addressing risk
    • Our research process and The Capital System help diversify the portfolio
    • Capital’s independent global investment control group monitors compliance with portfolio guidelines
    • Our legal and compliance team helps make certain we adhere to regulations in the markets in which we invest

 

 

 

 

 

 

View investment results data

 

 

 


Resources


Fund Characteristics

Defined Benefit Plans (PDF)

Defined Contribution Plans (PDF)

Endowments/Foundations (PDF)


Additional Reports

Annual Report (PDF)

Defined Benefit Plans

Annual Report (PDF)

Defined Contribution Plans

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)


 

 


This material is designed for use solely by Qualified Purchasers, institutional investors and consultants. It may not be disseminated to or used by individual plan participants or retail investors.

The Capital Group companies manage 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 one of the three equity investment groups.

Any collective investment trusts (“CITs”) available under the strategy shown are maintained by Capital Bank and Trust Company (“trustee”), which has retained an affiliate to serve as investment adviser to the trustee for the CITs.

This information supplements or enhances required or recommended disclosure and presentation provisions of the GIPS® standards, which if not included herein, are available upon request. GIPS is a trademark owned by CFA Institute.

All data as of June 30, 2017, unless otherwise specified.

Returns are in USD. Periods greater than one year are annualized. Returns reflect the reinvestment of dividends, interest and other earnings.

Composite returns reflect the Capital Group Absolute Income Grower Composite.

Composite returns are preliminary and net of withholding taxes on dividends, interest and capital gains. Actual withholding tax rates vary according to the country of denomination and tax status of each portfolio.

Composite net returns are calculated using the current highest management fees for institutional investors. Actual investment returns net of management fees may differ depending on, among other things, the applicable fee schedule and portfolio size.

The equity breakdown by revenue reflects the fund’s publicly traded equity holdings and excludes cash (and fixed income securities, if applicable). Underlying revenue data were compiled by MSCI and account for disparities in the way companies report their revenues across geographic segments. MSCI breaks out each company’s reported revenues into country-by-country estimates. MSCI provides revenue data figures based on a proprietary, standardized model. Revenue exposure at the fund and index level was calculated by using FactSet, which takes these company revenue exposures and multiplies by the company’s weighting in the portfolio and index. In this breakdown, Israel has been included in Europe.

Composite risk characteristics are final, gross of management fees. The analysis is based on monthly data, and periods greater than one year are annualized.

Portfolio reflects Capital Group Representative Absolute Income Grower Portfolio. MSCI index results reflect net dividends reinvested.

Index reflects MSCI World Index. Sources: MSCI. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. Bloomberg Index Services Ltd.

Each index is unmanaged.

Totals may not reconcile due to rounding.

Securities offered through American Funds Distributors, Inc.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing.