1 Based on calendar-year returns of actively managed funds in the Morningstar Large Value, Large Blend and Large Growth categories. For more information about filtering methodology, see Methodology.
2 Numbers of periods are based on rolling monthly data for all funds — reducing entry- and exit-point bias and better reflecting the range of entry points experienced by investors. American Funds represents 18 equity-focused funds, in aggregate. For the list of funds and their comparable indexes/index blends, see Methodology. Past results are not predictive of results in future periods.
3 Market declines are defined as those months in which the market return was negative. This ratio is akin to a downside beta — specifying the percentage of the down market “captured” by the manager. If, for example, it is greater than 100%, then the manager has trailed in the down market. Conversely, a percentage less than 100% indicates a positive excess return for those market declines; the smaller, the better. Market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Data for downside capture are based on monthly returns for Class A shares. American Funds U.S. equity-focused funds represent only those funds (there are seven) whose comparable index is the S&P 500. For the list of funds that fall into this group, see Methodology.
4 Due to their significant investments outside the U.S., Capital World Growth and Income Fund, EuroPacific Growth Fund, International Growth and Income Fund, New Perspective Fund, New World Fund and SMALLCAP World Fund are included in the International/Global equity category. The American Funds expense ratios are for Class A shares as of each fund’s most recent prospectus available on January 1, 2017. Expense ratios do not reflect sales charges.