A time-tested approach to pursuing long-term growth and conserving capital
Launched in 1975, Capital Group American Balanced is one of the world’s largest and oldest US multi-asset strategies. Originally offered only to US-based investors, the strategy is now available to investors via Capital Group American Balanced Fund (LUX) – which is managed by the same experienced team and follows the same investment approach as the US strategy.
Why consider this fund?
Capital Group American Balanced Fund (LUX) is a part of a 45+ years
US multi-asset strategy
A 45-year history, demonstrating US pedigree
One of the world’s oldest US multi-asset strategies with a focus on quality US stocks and bonds. It is designed to deliver resilient results.
An experienced and stable portfolio management team
All 12 portfolio managers of the strategy have a median of 28 years’ investment experience and 22 years with Capital Group.
A proven track record of downside resilience1
The strategy has only seen five calendar years with negative returns since inception1.
Capital Group has the experience and scale for successful investing in multi-asset strategies
US$496 billion
in multi-asset strategies
1973
started managing multi-asset strategies
Multiple portfolio managers enable conviction with diversification
All information and opinions as at 31 December 2023, unless otherwise stated. Source: Capital Group
Capital Group American Balanced Fund (LUX)
A US-focused balanced strategy that has stood the test of time.
Past results are not a guarantee of future results.
As at 31 December 2023. Source: Capital Group
Capital Group American Balanced Fund (LUX) was launched on 27 July 2021. The investment results shown here are for the Capital Group American Balanced Composite (defined as a single group of discretionary portfolios that collectively represent a particular investment strategy or objective). This is intended to illustrate our experience and capability in managing this strategy over the long term. Our Luxembourg fund has become a member of this composite at the beginning of August 2021.
- The inception date of the Capital Group American Balanced strategy was 31 July 1975. Net of management fees and expenses for a representative Luxembourg fund share class (Z), applying the maximum Total Expense Ratio (TER). Please visit capitalgroup.com for further details. The Capital Group American Balanced Composite experienced negative returns in 1990, 2002, 2008, 2018 and 2022. Meanwhile, the S&P 500 Index, the 60%/40% blend of the S&P 500 and Bloomberg Barclays U.S. Aggregate Index, and the Morningstar peer category have each experienced nine down years during the same period.
Capital Group manages 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.
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.
- 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.