Capital Group is offering a share class of its Capital Group American Balanced Fund (LUX) (AMBAL) exclusively to DBS and POSB customers with 0% upfront sales charge.
The fund, incepted in July 2021, is part of the Capital Group American Balanced strategy. Launched in 1975, Capital Group American Balanced strategy is the world’s largest multi-asset strategy, managing US$258 billion ($333.69 billion). It focuses on broad US opportunities with a balanced approach, aiming to capture equity market growth while preserving capital and delivering income through high-quality bonds.
According to an Oct 16 announcement, Capital Group is waiving upfront costs for DBS/POSB customers investing in AMBAL to make it easier for them to benefit from long-term investing while seeking consistent income and downside resilience.
Capital Group did not state when the waiver will end.
The new share class, Class U1 fdxm, is available with a minimum lump-sum investment of $1,000. Available to DBS/POSB customers since Oct 13, this share class has a 1.15% annual management fee.
The fdxm are share classes where the dividend will generally be fixed at a dividend per share level and distributed monthly, according to Capital Group.
See also: Fullerton launches Singapore Value-Up, first retail fund under MAS’s EQDP
To encourage investing for the long term, Class U1 fdxm has a three-year term. There will be an early redemption charge of 3% if the investment is redeemed before the first anniversary of the end of the initial offer period, 2% before the second anniversary and 1% before the third anniversary.
According to Capital Group, another new share class for AMBAL, Class BLfdxm, currently yields 6.5% on an annualised basis.
AMBAL is managed by a team of 12 portfolio managers with a median of 27 years of investment experience and 24 years with the firm.
See also: 65 Equity Partners leads US$188 mil investment in UltraGreen, valuing medtech firm at US$1.3 bil
Jeik Sohn, head of Singapore and Southeast Asia client group at Capital Group, says: “We recognise that for many Singapore investors, taking the first step into investing can feel daunting. Over time, when a significant portion of wealth remains in idle cash, it not only gets gradually eroded by inflation, but also represents a missed opportunity to grow future wealth – whether for retirement, family needs or long-term financial goals.”
Sohn adds: “That is why Capital Group has partnered with DBS to make investing simpler and more accessible. By removing upfront costs and lowering barriers to entry for Class U1 fdxm, we aim to encourage long-term investing habits. We’re proud to offer local investors access to our AMBAL fund, part of a time-tested strategy with nearly five decades of consistent performance.”
James Tan, DBS’s group head of investment products and advisory, says: “As investors here look to grow their wealth, we see a meaningful opportunity to help them stay invested through well-diversified portfolios that can weather different market conditions. This is particularly important for younger investors, who often find investing intimidating to start or struggle to stay disciplined amid market volatility — which is here to stay.”
Tan adds: “Launching AMBAL reflects our commitment to offering trusted, time-tested investment solutions that give investors not only the confidence to begin, but also the incentive to stay invested through changing market cycles.”
