TORONTO, Oct. 15, 2013 /CNW/ - Capital International Asset Management
(Canada), Inc., part of Capital Group, has announced a proposal to
modify one of its mutual funds, Capital International - U.S. Equity.
The proposed modifications include a change to the fund's investment
objective and the merger of a private fund, Capital Group Canadian
Private Trusts - U.S. Equity into Capital International - U.S. Equity,
a publicly-offered open-end mutual fund trust (also referred to as the
"Continuing Fund"). These changes will be voted on at a special
meeting of Capital International - U.S. Equity securityholders on or
about January 7, 2014, in Toronto. In connection with implementing
changes to the investment objective, Capital Group is also proposing
changes to the investment strategies and the subadvisor for the fund.
The proposed fund merger, which is conditional upon implementation of
the investment objective change, will result in a broader investment
universe and a new portfolio management team. In the event that the
proposed investment objective change and merger are each not approved,
Capital International - U.S. Equity will be terminated on or about
March 31, 2014.
Meeting materials will be mailed on or about December 6, 2013 to
securityholders of record as of November 15, 2013.
Investment Objective Change and Other Related Changes
Securityholders of Capital International U.S. Equity will be asked to
vote on a proposed change to the fund's investment objective. If
approved, the new investment objective of the Continuing Fund will
long-term growth of capital through investments in a portfolio comprised
primarily of equity securities of large U.S. issuers and securities
whose principal markets are in the U.S. (including American Depositary
Receipts (ADRs) and other U.S.-registered foreign securities); to:
long-term growth of capital and income through investments primarily in
common stocks of U.S. issuers.
In addition, corresponding changes will be made to the investment
strategies of the Continuing Fund.
If the proposed merger is approved by securityholders of Capital
International - U.S. Equity,
The Continuing Fund will offer a larger asset base, a broader investment
universe and a new portfolio management team. It also will continue to
offer the strength of the Capital Group organization's global
investment research effort.
The merger will be effective on or about January 31, 2014. The fund's
Independent Review Committee has reviewed this proposal and made a
positive recommendation regarding the merger, including proposed
changes to the investment objective, strategies and subadvisor, on
October 10, 2013.
Securityholders who hold units of Capital Group Canadian Private Trusts
- U.S. Equity on the merger date will receive an equal number of units
of the Continuing Fund.
In connection with the proposed change in the fund's investment
objective and the proposed merger, Capital International - U.S.
Equity's investment subadvisor will change from its current Capital
Guardian Trust Company to Capital Research and Management Company, both
Capital Group affiliates. The subadvisor change will include changes
to the portfolio management team of the Continuing Fund.
About Capital Group
Capital International Asset Management (Canada), Inc. and Capital
International portfolios are part of Capital Group, a global investment
management firm originated in Los Angeles, California in 1931. Since
that time, Capital Group has been singularly focused on delivering
superior, consistent results for long-term investors using
high-conviction portfolios, rigorous research and individual
Capital Group manages equity assets through three investment groups that
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.
SOURCE: Capital International Asset Management (Canada), Inc.
For further information:
Capital International Asset Management (Canada), Inc.