American Funds Capital World Growth and Income Fund (CWGIX) Class A

The following fund review is one of the most popular world stock mutual funds. This American Funds Capital World G/I fund invests in companies around the world. More details about the fund’s review can be found below.

American Funds Capital World G/I A (CWGIX)

The American Funds Capital World Growth and Income fund investment fund’s objective is to provide long-term growth of capital while providing current income. This AF fund invests most of assets in common stocks of well-established companies located around the world. These companies also have the potential to pay dividends. It invests, on a global basis, in common stocks that are denominated in U.S. dollars or other currencies. This equity fund invests a significant portion of its assets in securities of issuers domiciled outside the United States. The fund may also invest in issuers in developing countries.

CWGIX Fund Details

CWGIX fund

• Fund Inception Date: 03/26/1993
• Ticker Symbol: CWGIX
• CUSIP: 140543109
• Beta (3yr): 0.90
• Rank in category (YTD): 56%
• Category: World Stock
• Yield: 2.18%
• Capital Gains: 0%
• Expense Ratio: 0.79%  
• Net Assets: $ 89.0 billion
• Number of Years Up: 14 years
• Number of Years Down: 3 years
• Annual Turnover Rate: 35.0%

Updated May 2017

This CWGIX fund has been in the market since its inception in March 1993. The current lead manager is Jeanne M. Carroll. She started managing it since February 2004. It has total net assets of $70.20 billion. This mutual fund also has annual expense ratio of 0.79% (the average annual expense ratio in World Stock category is 1.46%). The fund has a dividend yield of 2.72%. The distribution is done on quarterly basis and the latest dividend distributed for third quarter of 2011 is $0.15.

Since its inception, this American Funds fund has recorded 14 years of positive return with its best achievement in 2003 (39.07%). This fund has 3-stars rating from Morningstar. The 5-year average return is 0.62%. Based on the load adjusted return, this CWGIX fund has returned 7.68% over the past decade and 8.31% over the past 3-year.

• Year 2017: 9.50% (YTD)
• Year 2016: 6.49%
• Year 2015: -2.18%
• Year 2014: 4.02%
• Year 2013: 24.84%

The annual holdings turnover of this World Stock fund as of November 11, 2011 is 25.00%. Investor will need a minimum initial investment of $250 to open a brokerage or IRA account of this fund. This fund can be purchased through 77 brokerages like Merrill Lynch, JP Morgan, Edward Jones, Ameriprise Brokerage, E Trade No Load Fee, Firstrade, Raymond James, Royal Alliance, Schwab Retail, etc.

Investor may as well take a look at the other classes of this CWGIX fund, such as CWGBX (Class B), CWGCX (Class C), CWGFX (Class F-1) and WGIFX (Class F-2). The 529-Shares are also available in some classes, like CWIAX (Class 529-A), CWIBX (Class 529-B), CWICX (Class 529-C), CWIEX (Class 529-E) and CWIFX (Class 529-F-1).

The top 10 equity holdings as of October 2011 are Novartis (3.2%), Microsoft (2.4%), BP (2.2%), Philip Morris International (2.0%), Royal Dutch Shell (1.7%), Bayer (1.7%), AT&T (1.6%), America Movil (1.4%), Altria (1.4%) and Kraft Foods (1.3%). The geographic breakdowns of this fund as of September 2011 are United States (32.9%), Europe (39.4%), Asia & Pacific Basin (17.1%), Others – Including Canada & Latin America (3.7%) and Cash & Equivalents (6.9%).

The principal risks of investment are Market conditions risk, investing outside the United States risk, investing in developing countries risk, investment style risk, management risk, etc.

Pros:

• Low expense ratio
• Low annual turnover rate

Cons:

• This class A fund has a sales load

Disclosure: No Position

Interesting International Stock Funds:

• USAA World Growth (USAWX)
• Oakmark Global I (OAKGX)