American Funds plans launch of eight new funds for May

By Toni Weeks

San Diego, Jan. 6 - American Funds Portfolio Series announced plans for eight new funds in an N-1A filing with the Securities and Exchange Commission. The funds are expected to launch May 1.

Each fund will offer 16 share classes, with the exception of the Tax-Exempt Preservation Fund, which will offer five share classes.

The Tax-Exempt Preservation Fund will seek to provide current income exempt from federal income tax and to preserve capital. It will invest in a mix of American Funds in different combinations and weightings, especially funds that seek current income through bond investments.

The Preservation Fund will seek to provide current income along with preservation of capital by investing in a mix of American Funds in different combinations and weights. The fund will principally invest in funds that seek current income through bond investments.

The Tax-Advantaged Income Fund will seek to provide current income, a portion of which is exempt from federal income tax, and long-term growth of capital by investing in a mix of American Funds in different combinations and weightings. The underlying funds may represent a variety of fund categories such as bond funds, balanced funds, equity income funds, growth and income funds and growth funds.

The Income Fund will seek to provide current income with long-term growth of capital as a secondary objective by investing in a mix of American Funds in different combinations and weightings.

The Balanced Fund will seek current income and long-term growth of capital and income by investing in a variety of American Funds. The fund will normally maintain at least 45% of the value of its net assets in common stocks and other equity investments and at least 25% of its net assets in bonds and other debt securities.

The Growth and Income Fund will seek long-term growth of capital and current income by investing in a variety of American Funds.

The Growth Fund seeks long-term growth of capital by investing in a mix of American Funds in different combinations and weightings, primarily consisting of growth funds and growth and income funds that principally invest in equity securities and may have significant holdings of issuers domiciled outside the United States.

The Global Growth Fund seeks long-term growth of capital by investing in a mix of American Funds in different combinations and weightings. The underlying funds will primarily consist of growth funds and growth and income funds that principally invest in equity securities that may have significant holdings of issuers domiciled outside the United States. Under normal market conditions, the fund will invest at least 25% of its net assets in funds that invest significantly, or up to 40%, in normal conditions in issuers outside the United States.

The portfolio management team includes James B. Lovelace, Alan N. Berro, Nicholas J. Grace, Wesley K.-S. Phoa, John H. Smet and Bradley J. Vogt.

With the exception of the Tax-Exempt Preservation Fund, shareholder fees for all of the funds will consist of a maximum deferred sales charge, which will be 1% for class A, class 529-A, class C and class 529-C shares and 5% for class B and class 529-B shares.

Shareholder fees for the Tax-Exempt Preservation Fund will consist of a maximum deferred sales charge of 1% for class A and class C shares and 5% for class B shares only.

The funds' investment adviser will be Los Angeles-based Capital Research and Management Co.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.