2. The Fund’s investment in debt securities may be affected by changes in interest rates, credit ratings, and fluctuation in exchange rates of currencies in which these investments are denominated. Investment in bonds issued or guaranteed by governments may involve political, economic, default, or other risks.
3. If the Fund invests in debt securities which are below investment grade or unrated, including high yield bonds, it may, as a result, be subject to liquidity, volatility, default and counterparty risk.
4. While the Fund uses derivative instruments in a prudent manner and only for hedging and/or efficient portfolio management purposes, in an adverse situation, derivative instruments may expose the Fund to a risk of significant loss.
5. The Fund may at its discretion pay dividends out of and/or effectively out of capital. This amounts to a return of part of an investor’s original investment or distribution of capital gains. This may result in an immediate reduction in the net asset value per share.
6. The currency hedging process used for currency hedged share classes may not give a precise hedge; there is no guarantee that hedging will be totally successful.
7. Investors should not make any investment decision solely based on this document.
KEY BENEFITS
Capital Group American Balanced Fund (LUX) (“AMBAL”) was launched on 27 July 2021 and is part of the world’s largest multi-asset strategy1 that has been helping investors navigate across multiple market cycles over 45 years since 1975.
Seeking quality income
Over 85% of AMBAL’s portfolio is invested in quality income-paying US equities and bonds to offer multiple sources of incomes to investors
Prepared for market opportunities with a balanced approach
AMBAL is well-positioned to balance growth, income and resilience under the current market environment
Flexibility across asset classes to navigate various market conditions
A prudent way to aim towards capturing growth and income while managing risks
A core anchor for your investment portfolio
AMBAL is designed to provide a smoother return profile2 to investors in times of volatility
MULTI-ASSET INVESTMENTS AT CAPITAL GROUP
Our experience in multi-asset investing dates back more than 50 years when we introduced our first multi-asset strategy in 1973. Since then, we have grown globally and now manage over US$496 billion in multi-asset investments.
Long Term
50+ years of experience in multi-asset investing
Size
US$496 billion AUM in multi-asset strategies
Scale
Managing three of the four largest multi-asset funds in the world3
WHY CAPITAL GROUP?
For more than 90 years, we have been searching the world for long-term opportunities, making Capital one of the world’s oldest and largest active mutual fund asset managers.
Global investing credentials
US$2.5T
in total assets managed
28 years
average investment experience of our portfolio managers
US$496B
multi-assets managed
To find out more about AMBAL, talk to your bank or financial advisers.
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Risk factors you should consider before investing:
- This material is not intended to provide investment advice or be considered a personal recommendation.
- The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
- Past results are not a guarantee of future results.
- If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- Some portfolios may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
- There are additional ABS/MBS, Bonds, Counterparty, Derivative instruments, Equities, Liquidity and Operational risks associated with this fund.
Fund risks
ABS/MBS risk: The fund may invest in mortgage- or asset-backed securities. The underlying borrowers of these securities may not be able to pay back the full amount that they owe, which may result in losses to the fund.
Bonds risk: The value of bonds can change as a result of interest rate changes – typically when interest rates rise, bond values fall. Funds investing in bonds are exposed to credit risk. A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
Counterparty risk: Other financial institutions provide services to the fund such as safekeeping of assets, or may serve as a counterparty to financial contracts such as derivatives. There is a risk the counterparty will not meet their obligations.
Derivative instruments risk: Derivatives are financial instruments deriving their value from an underlying asset and may be used to hedge existing exposures or to gain economic exposure. A derivative instrument may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
Equities risk: The prices of equity securities may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund, overall market changes, local, regional or global political, social or economic instability and currency fluctuations.
Liquidity risk: In stressed market conditions, certain securities held by the fund may not be able to be sold at full value, or at all. This could cause the fund to defer or suspend redemptions of its shares, meaning investors may not have immediate access to their investment.
Operational risk: The risk of potential loss resulting from inadequate or failed internal processes, people and systems or from external events.
Risk factors you should consider before investing:
- This material is not intended to provide investment advice or be considered a personal recommendation.
- The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
- Past results are not a guarantee of future results.
- If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- The Prospectus – together with any locally-required offering documentation – set out risks, which, depending on the fund, may include risks associated with investing in fixed income, derivatives, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
All data as at 31 December 2023 and attributable to Capital Group, unless otherwise stated.
1. Source: Morningstar, Global Broad Category Group = Allocation
2. Relative to US equities (S&P 500 Index)
3. Data as at 31 December 2023. Source: Morningstar
Glossary
Active mutual fund: An actively-managed fund is run by portfolio managers who have an attempt to surpass an index over time.
Investments are subject to investment risks and may result in loss of part or all of an investor’s investment. Past results are not a guarantee of future results. This advertisement is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities. This advertisement is issued by Capital International, Inc. and has not been reviewed by the Securities and Futures Commission. The fund(s) is (are) offered only by Prospectus, together with the Product Key Fact Statement. These documents are available online at capitalgroup.com, and should be read carefully before investing.