Rare sighting: American Funds tees up new fund
American Funds, which is a unit of The Capital Group Cos. Inc., has come out with only two mutual funds in the past decade. The new offering, called the American Funds Global Balanced Fund, is set to make its debut Feb. 1.
In a rare move, American Funds has revealed plans to launch a new mutual fund.
American Funds, which is a unit of The Capital Group Cos. Inc., has come out with only two mutual funds in the past decade. The new offering, called the American Funds Global Balanced Fund, is set to make its debut Feb. 1.
The global fund is similar to another offering from American Funds, the American Balanced Fund Ticker:(ABLX). But as the name suggests, the new investment vehicle features a global scope. According to its filing with the Securities and Exchange Administration, the global fund will invest in equity and debt securities around the world that offer growth and/or dividend income. Typically, the fund will invest a sizable portion of its assets in securities of issuers located outside the U.S.
The fund will seek to maintain at least 45% of its assets in stocks and equity investments. At least 25% of the assets will be invested in bond and debt securities.
American Funds, known for its fairly conservative investment strategy, has nearly $1 trillion in assets under management. Following the firm’s usual approach, the global fund will be directed by several managers. Those include senior vice presidents David Riley, Paul Flynn and Robert Neithart.
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