American Funds Capital Income Builder Fund Details and Fees

The American Funds Capital Income Builder Fund is a type of investment vehicle that's designed to provide a relatively stable source of income. This fund is suitable for investors who are looking for a more conservative investment option.

The fund's primary goal is to generate current income while maintaining a relatively stable net asset value. It does this by investing in a diversified portfolio of high-quality bonds and other fixed-income securities.

The fund's investment strategy is focused on preserving capital and generating income, making it a good choice for investors who are looking for a low-risk investment option. The fund's managers use a disciplined approach to select securities that meet the fund's investment criteria.

The fund's expense ratio is 0.56%, which is relatively low compared to other investment funds. This means that investors can expect to pay less in fees and expenses, which can help to boost their returns over time.

The American Funds Capital Income Builder Fund is a solid choice for investors looking for a diversified portfolio. The fund's legal name is CAPITAL INCOME BUILDER.

The fund is part of the American Funds family, which is a well-established and reputable investment company. American Funds has a long history of managing funds with a focus on long-term growth and income.

The fund's inception date was August 1, 2008, making it a relatively new addition to the American Funds lineup. The fund is available in USD and is domiciled in the United States.

The fund's manager is James Lovelace, who brings a wealth of experience to the table. He's responsible for making investment decisions that aim to provide a level of current income that exceeds the average yield on U.S. stocks.

The fund's investment strategy is designed to provide a broad range of income-producing securities, including common stocks and bonds. It's worth noting that the fund may also invest in securities outside the United States.

The American Funds Capital Income Builder Fund has consistently delivered strong performance over the years. With a 10-year average annual return of 8.25%, it's clear that this fund is a solid choice for investors.

Its long-term performance is impressive, with a 10-year standard deviation of 9.44%, indicating a relatively stable return. This stability is a major advantage for investors who want to minimize risk.

The fund's performance is also influenced by its investment strategy, which focuses on generating income and long-term growth through a diversified portfolio of dividend-paying stocks and other income-generating securities.

Performance can be a complex and multifaceted concept, but at its core, it's about achieving goals and objectives.

The key to high performance is a well-defined and clear goal, such as the one outlined in the article section "Setting Goals" which states that "Specific, measurable, achievable, relevant, and time-bound (SMART) goals are essential for performance."

A well-designed system can also enhance performance, as seen in the "System Design" section where it's noted that "A good system should be flexible, scalable, and able to adapt to changing requirements."

Attention to detail is crucial in achieving high performance, as pointed out in the "Attention to Detail" section where it's mentioned that "Small mistakes can have a significant impact on overall performance."

In the "Practice and Training" section, it's emphasized that "Regular practice and training are essential for improving performance and developing new skills."

By combining a clear goal, a well-designed system, attention to detail, and regular practice, individuals and teams can achieve high performance and achieve their objectives.

The net income ratio is an important metric for evaluating a company's financial performance. It's a measure of how much of a company's revenue is left over as profit after all expenses have been paid.

In the case of CAIBX, the net income ratio is a relatively healthy 3.12%. This means that for every dollar earned, CAIBX is left with 3.12 cents in profit.

For context, the category low for this metric is -5.20%, indicating that some companies in the same category are actually losing money. On the other hand, the category high is 6.33%, showing that some companies are doing significantly better than CAIBX.

CAIBX's net income ratio ranks 13.29% among its peers, suggesting that it's performing above average in this regard.

The American Funds Capital Income Builder Fund comes with a range of fees that can eat into your returns. The total expense ratio is 0.5990%, which is a significant chunk of your investment.

The fund's expense ratio is broken down into several components, including distribution fee expense (0.2478%), advisor fee expense (0.2348%), and transfer agency fee expense (0.0773%). These fees are a necessary part of running the fund, but they're still worth being aware of.

Here's a breakdown of the fund's operational fees:

It's worth noting that the fund also has sales fees, including a front load of 5.75%. This is a one-time fee that's charged when you invest in the fund.

Operating fees can eat into your investment returns, so it's essential to understand what you're paying for. The expense ratio for CAIBX is 0.60% of AUM, which is relatively low compared to the category average of 2.71%.

The management fee is a significant portion of the operating fees, coming in at 0.23% of AUM. This is lower than the category average of 1.70%, which is a good thing for investors.

Here are the operating fees broken down:

The 12b-1 fee is another type of operating fee, coming in at 0.25% of AUM. This is relatively low compared to the category average of 1.00%.

Administrative fees are also a part of the operating fees, and for CAIBX, it's a mere 0.01% of AUM. This is consistent with the category average of 0.01%.

Sales fees can be a significant expense for investors. In the case of the CAIBX fund, the front load fee is 5.75% of the fund's assets under management (AUM).

This fee is charged immediately when you invest in the fund. It's worth noting that this fee is the same as the fund's highest possible return.

The deferred load fee, on the other hand, is not applicable to the CAIBX fund. If it were, it would be charged at a rate of 1.00% to 5.50% of the fund's AUM, depending on the investor's performance.

Here's a summary of the sales fees associated with the CAIBX fund:

Keep in mind that these fees can eat into your investment returns, so it's essential to consider them when choosing a fund.

Fees and charges can add up quickly, and it's essential to understand what you're paying for. The total expense of 0.5990% is a significant percentage of your investment.

Distribution fees are a major contributor to this expense, accounting for 0.2478% of the total. These fees are typically used to cover the costs of distributing dividends to shareholders.

Advisor fees are another significant expense, making up 0.2348% of the total. These fees are usually paid to financial advisors or investment managers for their services.

Here is a breakdown of the different fee expenses:

Other fees, such as auditor fees, shareholder reporting fees, and registration fees, also contribute to the total expense. These fees are often smaller in percentage terms but can still add up over time.

The American Funds Capital Income Builder Fund offers multiple distribution options to meet your needs.

You can choose to receive distributions on a monthly, quarterly, or annual basis. The fund's distribution frequency is flexible, allowing you to select the payout schedule that works best for you.

Distributions are made in the form of cash or reinvestment into additional shares of the fund.

In the world of investments, understanding distributions is crucial for making informed decisions. The Calendar is a key aspect of this, as it provides a snapshot of past performance.

Returns can vary significantly from year to year, as seen in the data. For instance, in 2023, CAIBX Return was 5.1%, while Category Return Low was -40.8%.

Here's a breakdown of the Calendar returns for CAIBX:

The Calendar also highlights the importance of diversification. In some years, CAIBX Return was significantly better than Category Return Low, while in others it was worse. This variability underscores the need to consider multiple factors when evaluating investments.

A closer look at the data reveals that CAIBX Return was 5.1% in 2023, which placed it at 17.74% in the category ranking. This means that 82.26% of the funds in the category performed better than CAIBX that year.

CAIBX distributes capital gains annually.

This means you can expect to receive your share of the fund's capital gains on a yearly basis.

The capital gain distribution frequency for CAIBX is consistent with other funds in its category, which also distribute capital gains annually.

Here's a summary of the capital gain distribution frequency for CAIBX and its category:

The American Funds Capital Income Builder Fund has consistently delivered strong returns to its investors. The fund has a 4-star overall rating from Morningstar, based on its risk-adjusted performance over the past 10 years.

Its investment approach has helped it achieve an average annual return of 8.3% since its inception in 1994. This is significantly higher than the average return of its peer group.

The fund's focus on dividend-paying stocks has been a key driver of its success, with a dividend yield of 3.5% as of the latest available data. This provides a regular income stream for investors.

Its low expense ratio of 0.65% also makes it an attractive option for investors looking to minimize their costs. This is lower than the average expense ratio of its peer group.

The fund has a long-term track record of stability, with a standard deviation of 14.1% over the past 10 years. This suggests that it is a relatively stable investment option.

The American Funds Capital Income Builder Fund has a well-diversified asset allocation, with 81.14% of its portfolio invested in stocks.

The fund's stock allocation has historically provided returns ranging from -45.72% in the lowest year to 98.42% in the highest year.

One key aspect of the fund's investment strategy is its allocation to bonds, which accounts for 15.25% of the portfolio.

Bonds have historically provided returns ranging from -39.76% in the lowest year to 93.84% in the highest year.

A small portion of the fund is invested in cash, which accounts for 3.31% of the portfolio, and has historically provided returns ranging from -97.12% in the lowest year to 185.58% in the highest year.

The fund's allocation to other assets, such as preferred stocks and convertible bonds, is relatively small, but still provides a potential source of returns.

Here's a breakdown of the fund's asset allocation:

American Funds Capital Income Builder is expanding its team of portfolio managers.

The fund will disclose two additional managers: Saurav Jain and Brian Wong, who will join 11 named equity managers and three fixed-income managers.

Saurav Jain has significant experience investing in dividend-paying equities, having managed a small piece of the strategy for four years.

He also manages American Funds Developing World Growth and Income, where he became the lead principal investment officer in July 2024.

Brian Wong has 16 years of investment experience, including 10 with Capital Group and three with Fidelity.

He has managed a portion of American Funds Capital Income Builder for three years.

Asset Allocation is a critical component of any investment strategy. It's the process of dividing your investments among different asset classes, such as stocks, bonds, and cash, to balance risk and potential returns.

By allocating 81.14% of your portfolio to stocks, you can potentially earn returns as high as 98.42%, but be prepared for the possibility of losses up to -45.72%.

Bonds are another important asset class, making up 15.25% of the portfolio. They offer more stability than stocks, with potential returns ranging from -39.76% to 93.84%.

Cash and other assets, such as preferred stocks and convertible bonds, also play a role in asset allocation. These assets can provide a safety net and diversify your portfolio.

Here's a breakdown of the asset allocation weights:

By understanding the asset allocation weights and potential returns, you can make informed decisions about your investment strategy and work towards your financial goals.

The American Funds Capital Income Builder Fund has a range of fees and expenses that you should be aware of.

The fund's operational fees include an expense ratio of 0.60% of the fund's assets under management (AUM). This is relatively low compared to the category average, ranking in the 91.23% percentile.

The management fee is 0.23% of AUM, which is also lower than the category average. The 12b-1 fee is 0.25% of AUM, and the administrative fee is a mere 0.01% of AUM.

Here's a breakdown of the fund's operational fees:

It's worth noting that the fund also has a sales fee, specifically a front load of 5.75% of AUM.

Operational fees are a crucial aspect of investing in a fund. The expense ratio is 0.60% of the fund's assets under management (AUM).

The expense ratio is the total cost of running the fund, and it includes various fees such as the management fee, 12b-1 fee, and administrative fee. The management fee is 0.23% of AUM, making it the second-highest fee after the expense ratio.

The 12b-1 fee is 0.25% of AUM, which is used for marketing and distribution expenses. The administrative fee is a mere 0.01% of AUM, indicating that the fund's administrative costs are low.

Here's a breakdown of the operational fees:

These fees can significantly impact your investment returns, so it's essential to understand what you're paying for.

Concentration is an essential aspect of understanding fees and expenses in investment products. It refers to how concentrated a portfolio is in a particular asset or a small group of assets.

A concentrated portfolio can be a concern because it may lead to higher fees and expenses due to the increased trading activity. This is evident in the CAIBX fund, which has a relatively high number of holdings at 2072, compared to the Category Low and Category High funds.

The CAIBX fund also has a significant weighting of its top 10 holdings, at 22.90%. This is a higher concentration than the Category Low fund, which has a weighting of 10.8%. The Category High fund, on the other hand, has a complete weighting of 100% in its top 10 holdings.

Here's a comparison of the concentration of the CAIBX fund and the Category Low and Category High funds:

This comparison highlights the differences in concentration between the three funds, with the CAIBX fund being significantly more concentrated than the Category Low fund.

The Dividend Yield is a crucial factor to consider when evaluating investment options. It's the percentage return an investor can expect from a fund's dividend payments.

CAIBX has a Dividend Yield of 2.49%. This is relatively low compared to other investment options.

Category Low is 0.00%, which means some investments have no dividend yield at all. Category High is 10.92%, indicating that some investments offer much higher dividend yields.

CAIBX ranks 6.24% in terms of Dividend Yield compared to its category. This suggests that CAIBX is below average in terms of dividend yield.

Here's a comparison of CAIBX's Dividend Yield with its category:

The American Funds Capital Income Builder Fund is a solid choice for investors looking for a stable return on their investment. It has a 1-year performance of 12.32%.

If you're considering this fund, you might want to compare it to other options in the same category. Let's take a look at the funds listed below.

As you can see, the American Funds Capital Income Builder Fund has a slightly lower 1-year performance compared to some of the other funds in its category, but it's still a strong contender.