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 change from:
- 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 accountability.
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.
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