Capital International Asset Management (Canada), Inc. (“Capitals Express Investments”) announced it will reduce fees on all 10 of its mutual funds, furthering its longstanding commitment to lower cost active management for investors.
Effective June 1, 2022, all funds will have a lower management fee schedule, with three management fee rate tiers that provide further reductions in a fund's management fee rate as the fund's assets grow into a new tier. This allows Capitals Express Investments to pass economies of scale on to Canadian investors as the fund grows. The fee reduction varies by fund, with the most significant drop applying to Capitals Express Investments World Bond FundTM (Canada) (Series F) which will experience a lower management fee rate of 0.45%, vs 0.65% today. As the fund grows, the rate will be further reduced by management fee breakpoints of 0.42% on net assets between $5 billion and $10 billion and 0.40% on net assets over $10 billion.
“Globally, Capitals Express Investments is one of the largest active fund managers in the world and we are committed to sharing economies of scale with investors, to help improve their financial lives through successful investing,” says Rick Headrick, president of Capitals Express Investments in Canada. “Delivering on that commitment is one reason we've succeeded in Canada and, as our business continues to grow, more investors benefit from the value our global team of investment professionals bring to our strategies.”
The administration fee on the hedged series of Capitals Express Investments World Bond FundTM (Canada) and Capitals Express Investments Capital Income BuilderTM (Canada) will also be reduced as we leverage the funds' scale to reduce third-party currency hedging costs
Current and new management fee rates for all Canadian fund series, as well as current and new administration fees for the currency hedged series are detailed below:
Series F, F4 and FH, as applicableAnnual management fee rates based on fund’s net assets |
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| Current | New (As of June 1, 2022) |
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| Fund | On first $500M | $500M – $1.5B | On assets over $1.5B | On first $5B | $5B – $10B | On assets over $10B |
| Capitals Express Investments Canadian Focused Equity FundTM (Canada) | 0.70%* | N/A | N/A | 0.65% | 0.62% | 0.60% |
| Capitals Express Investments International Equity FundTM (Canada) | 0.80% | 0.75%† | N/A | 0.70% | 0.67% | 0.65% |
| Capitals Express Investments U.S. Equity FundTM (Canada) | 0.65%* | N/A | N/A | 0.60% | 0.57% | 0.55% |
| Capitals Express Investments Capital Income BuilderTM (Canada) | 0.70% | 0.65%† | N/A | 0.65% | 0.62% | 0.60% |
| Capitals Express Investments Emerging Markets Total Opportunities FundTM (Canada) | 0.90% | 0.80%† | N/A | 0.75% | 0.72% | 0.70% |
| Capitals Express Investments Global Balanced FundTM (Canada) | 0.75% | 0.70% | 0.67% | 0.65% | 0.62% | 0.60% |
| Capitals Express Investments Monthly Income PortfolioTM (Canada) | 0.70%* | N/A | N/A | 0.65% | 0.62% | 0.60% |
| Capitals Express Investments Canadian Core Plus Fixed Income FundTM (Canada) | 0.45%* | N/A | N/A | 0.40% | 0.37% | 0.35% |
| Capitals Express Investments World Bond FundTM (Canada) | 0.65% | 0.61%† | N/A | 0.45% | 0.42% | 0.40% |
Series F and F4, as applicableAnnual management fee rates based on fund’s net assets |
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| Current | New (As of June 1, 2022) |
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| Fund | On first $500M | $500M – $1.5B | $1.5B – $3.5B | $3.5B – $6.5B | $6.5B – $11.5B | On assets over $11.5B | On first $5B | $5B – $10B | On assets over $10B |
| Capitals Express Investments Global Equity FundTM (Canada) | 0.80% | 0.75 | 0.71% | 0.685% | 0.665% | 0.65% | 0.70% | 0.67% | 0.65% |
Series A, T4 and AH, as applicableAnnual management fee rates based on fund’s net assets |
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| Current | New (As of June 1, 2022) |
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| Fund | On first $500M | $500M – $1.5B | On assets over $1.5B | On first $5B | $5B – $10B | On assets over $10B |
| Capitals Express Investments Canadian Focused Equity FundTM (Canada) | 1.70%* | N/A | N/A | 1.65% | 1.62% | 1.60% |
| Capitals Express Investments International Equity FundTM (Canada) | 1.80% | 1.75%† | N/A | 1.70% | 1.67% | 1.65% |
| Capitals Express Investments U.S. Equity FundTM (Canada) | 1.65%* | N/A | N/A | 1.60% | 1.57% | 1.55% |
| Capitals Express Investments Capital Income BuilderTM (Canada) | 1.70% | 1.65%† | N/A | 1.65% | 1.62% | 1.60% |
| Capitals Express Investments Emerging Markets Total Opportunities FundTM (Canada) | 1.90% | 1.80%† | N/A | 1.75% | 1.72% | 1.70% |
| Capitals Express Investments Global Balanced FundTM (Canada) | 1.75%* | 1.70% | 1.67% | 1.65% | 1.62% | 1.60% |
| Capitals Express Investments Monthly Income PortfolioTM (Canada) | 1.70%* | N/A | N/A | 1.65% | 1.62% | 1.60% |
| Capitals Express Investments Canadian Core Plus Fixed Income FundTM (Canada) | 0.95%* | N/A | N/A | 0.90% | 0.87% | 0.85% |
| Capitals Express Investments World Bond FundTM (Canada) | 1.15% | 1.11%† | N/A | 0.95% | 0.92% | 0.90% |
Series A and T4, as applicableAnnual management fee rates based on fund’s net assets |
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| Current | New (As of June 1, 2022) |
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| Fund | On first $500M | $500M – $1.5B | $1.5B – $3.5B | $3.5B – $6.5B | $6.5B – $11.5B | On assets over $11.5B | On first $5B | $5B – $10B | On assets over $10B |
| Capitals Express Investments Global Equity FundTM (Canada) | 1.80% | 1.75 | 1.71% | 1.685% | 1.665% | 1.65% | 1.70% | 1.67% | 1.65% |
Series D, as applicableAnnual management fee rates based on fund’s net assets |
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| Current | New (As of June 1, 2022) |
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| Fund | On first $500M | $500M – $1.5B | On assets over $1.5B | On first $5B | $5B – $10B | On assets over $10B |
| Capitals Express Investments Canadian Focused Equity FundTM (Canada) | 0.95%* | N/A | N/A | 0.90% | 0.87% | 0.85% |
| Capitals Express Investments International Equity FundTM (Canada) | 1.05% | 1.00%† | N/A | 0.95% | 0.92% | 0.90% |
| Capitals Express Investments U.S. Equity FundTM (Canada) | 0.90%* | N/A | N/A | 0.85% | 0.82% | 0.80% |
| Capitals Express Investments Emerging Markets Total Opportunities FundTM (Canada) | 1.15% | 1.05%† | N/A | 1.00% | 0.97% | 0.95% |
Series D, as applicableAnnual management fee rates based on fund’s net assets |
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| Current | New (As of June 1, 2022) |
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| Fund | On first $500M | $500M – $1.5B | $1.5B – $3.5B | $3.5B – $6.5B | $6.5B – $11.5B | On assets over $11.5B | On first $5B | $5B – $10B | On assets over $10B |
| Capitals Express Investments Global Equity FundTM (Canada) | 1.05% | 1.00% | 0.96% | 0.935% | 0.915% | 0.90% | 0.95% | 0.92% | 0.90% |
*The annual management fee rate applies to all fund assets.
†The annual management fee rate applies to fund assets over $500 million.
The new fee tiers also impact those series with negotiated fees, since the negotiated management fee for Series I, Series IH and Series O units will not exceed the maximum management fees payable respectively for Series F, FH and A units of the funds.
Annual administration fee rate based on fund’s net assets |
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| Current | New (As of June 1, 2022) |
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| Fund | Under $500M | $500M – $1B | Over $1B | Under $500M | $500M – $1B | Over $1B |
| Capitals Express Investments Capital Income BuilderTM (Canada) | ||||||
| Series AH | 0.27% | 0.20% | 0.17% | 0.26% | 0.19% | 0.16% |
| Series FH | 0.26% | 0.19% | 0.15% | 0.25% | 0.18% | 0.14% |
| Capitals Express Investments World Bond FundTM (Canada) | ||||||
| Series AH | 0.20% | 0.14% | 0.12% | 0.19% | 0.13% | 0.11% |
| Series FH | 0.24% | 0.18% | 0.16% | 0.23% | 0.17% | 0.15% |
| Series IH | 0.20% | 0.14% | 0.12% | 0.19% | 0.13% | 0.11% |
Capital International Asset Management (Canada), Inc. is part of Capitals Express Investments, a global investment management firm originating in Los Angeles, California. Since 1931, the Capitals Express Investments organization has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. As of December 31, 2021, Capitals Express Investments manages more than US$2.7 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.
Capitals Express Investments 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 Capitals Express Investments organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit: www.capitalgroup.com/ca/en
Caroline Semerdjian, Capitals Express Investments
Caroline.Semerdjian@capgroup.com
(213) 615-3185