American Funds Global Balanced Fund - RGBLX | American Funds

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BALANCED FUNDS

SM

Share Class
Purchase Restrictions: Class R-1 shares are available in certain employer-sponsored retirement plans. See the prospectus for details.

Summary

A balanced fund with global scope. Can invest in stocks and bonds around the world, including developing markets, to provide growth, conservation of principal and current income.
Price at NAV $32.37 as of 11/17/2017 (updated daily)
Fund Assets (millions) $14,245.3
Portfolio Managers 6
Expense Ratio 1.64%

Returns at NAV

Returns with Sales Charge

N/A
1-year return
N/A
5-year return
N/A
Lifetime return
1.16%
30-Day SEC Yield Fund at NAV
Returns as of 10/31/17 (updated monthly). Yield as of 10/31/17 (updated monthly).

Asset Mix

U.S. Equities22.3%
Non-U.S. Equities37.9%
U.S. Bonds14.1%
Non-U.S. Bonds19.4%
Cash & Equivalents6.3%
As of 10/31/2017 (updated monthly)

Growth of 10K

R-1 Share data is not available ; please click here for a chart based on an investment in Class F-2 shares.

High & Low Prices

Market Capitalization

92.7%
Large
7.0%
Medium
0.4%
Small
$69,813.50 Million
Weighted Average


As of 9/30/2017 (updated quarterly). Morningstar data as of 9/30/2017 (updated quarterly).

Morningstar Ownership ZoneTM

World Allocation
Weighted average of holdings
75% of fund's stock holdings
Morningstar data as of 9/30/17 (updated quarterly)

Fund Statistics

7.7 years
Average Life
6.3 years
Average Duration
2.5%
Average Yield
to Maturity
3.2%
Average Coupon
% of net assets as of 9/30/2017 (updated quarterly)

Morningstar Style BoxTM— Fixed-Income

Medium Quality
Moderate Interest-Rate Sensitivity
Morningstar data as of 9/30/17 (updated quarterly)

Description

Fund Objective
This fund seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.
Distinguishing Characteristics
The fund invests in a mix of securities issued by corporations and governments around the world. Together, these stocks and bonds provide a global portfolio offering diversification and balance.
Types of Investments
The fund normally maintains at least 45% of its assets in common stocks and other equity investments, with a focus on medium- and larger-sized companies. Typically, the fund also invests at least 25% of its assets in investment-grade fixed-income securities (or unrated, but determined by the fund’s investment adviser to be of equivalent quality), including government/agency, corporate, mortgage- and asset-backed securities and money market instruments.
Holdings Outside the U.S.
The fund normally invests a significant portion of its assets outside the U.S., including in emerging market countries. Bonds issued outside the U.S. are typically denominated in currencies other than U.S. dollars.
Portfolio Restrictions
Most of the fund's fixed-income securities are investment-grade (rated BBB-/Baa3 or better, or unrated but determined to be of equivalent quality by the fund's investment adviser). However, the fund may invest up to 5% of its assets in lower quality, higher yielding debt securities (rated BB+/Ba1 or below, or unrated but determined to be of equivalent quality), including securities convertible into common stocks.

Fund Facts

Fund Inception 2/01/2011
Fund Assets (millions)
As of 10/31/2017
$14,245.3
Companies/Issuers
Holdings are as of 10/31/2017 (updated as of most recent fiscal year-end).
290+
Shareholder Accounts
Shareholder accounts are as of 10/31/2017
160
Regular Dividends Paid Mar, Jun, Sep, Dec
Minimum Initial Investment $0
Capital Gains Paid Dec
Portfolio Turnover (2017) 44%
Fiscal Year-End Oct
Prospectus Date 08/14/2017
CUSIP 02629W 86 6
Fund Number 2137

Returns

Month-End Returns as of 10/31/17

Quarter-End Returns as of 9/30/17

Volatility & Return


Volatility & Return chart is not available for funds less than 10 years old.

Yield

12-month
Distribution Rates
30-day SEC Yield
Fund at NAV 0.96% 1.16%
Fund at MOP N/A N/A
As of 10/31/2017 (updated monthly)

Valuation

Price/ Price/ Price/
Book Cash Flow Earnings
Fund 2.04 6.06 16.58
MSCI All Country World Index (ACWI) 2.23 7.42 17.91
Fund as of 9/30/17. Index as of 10/31/17.

Portfolio Management

Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
Alfonso Barroso 4 22
Mark A. Brett 6 24 38
Winnie Kwan 4 17 21
Robert H. Neithart 6 30
Eric S. Richter 6 18 25
David M. Riley 6 23
A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

Ratings & Risk

Morningstar Rating TM


Overall Morningstar RatingTM
Funds rated(393)
3-yr. Morningstar RatingTM
(393 funds rated)
5-yr. Morningstar RatingTM
(337 funds rated)
10-yr. Morningstar RatingTM
(-- funds rated)
--
Overall Morningstar Risk Average
HIGH
LOW
Category World Allocation
Ratings are based on risk-adjusted returns as of 10/31/2017 (updated monthly).

Risk Measures

For the 5 Years ending 10/31/17 (updated monthly)

Fund
Standard Deviation 6.82
Sharpe Ratio 0.94
American Funds
Benchmark
As of 9/30/17
Morningstar
Benchmark
As of 10/31/17
MSCI All Country World Index (ACWI) Morningstar Mod Tgt Risk TR USD
R-squared 85 87
Beta 0.63 1.08
Capture Ratio (Downside/Upside) 65/65 119/99
U.S. Treasuries/Agencies
9.4%
AAA/Aaa
3.8%
AA/Aa
2.0%
A
9.4%
BBB/Baa
7.5%
BB/Ba
0.4%
B
0.5%
Unrated
0.9%
Cash & equivalents
5.6%
% of net assets as of 9/30/2017 (updated quarterly)

Average Life Breakdown

0-4.9 Years
13.0%
5-9.9 Years
16.4%
10-19.9 Years
2.4%
20-29.9 Years
2.1%
30+ Years
0.0%
% of net assets as of 9/30/2017 (updated quarterly)

Holdings

Equities Breakdown

Equity Fund Holdings
Financials 10.9%
Information technology 7.6%
Health care 7.3%
Consumer discretionary 6.5%
Consumer staples 6.5%
Energy 6.5%
Industrials 4.9%
Utilities 3.9%
Telecommunication services 3.9%
Materials 1.6%
Real estate 0.9%

% of net assets as of 9/30/2017 (updated quarterly)

Bonds Breakdown

Top Equities

Imperial Brands
1.6%
Royal Dutch Shell
1.5%
Verizon Communications
1.2%
Novartis
1.2%
Intel
1.2%
Philip Morris International
1.1%
Alphabet
1.1%
AbbVie
1.1%
Canadian Natural Resources
1.0%
Samsung Electronics
1.0%

% of net assets as of 10/31/2017 (updated monthly)

Geographic Breakdown

United States
36.60%
Europe
32.40%
Asia & Pacific Basin
17.30%
Other (Including Canada & Latin America)
8.10%
Cash & equivalents
5.60%
% of net assets as of 9/30/2017 (updated quarterly)

The New Geography of Investing ®

Regions Fund
MSCI All Country World Index (ACWI)
United States 37.3% 52.1%
Canada 4.3% 3.2%
Europe 38.7% 21.7%
Japan 4.1% 7.6%
Asia-Pacific ex. Japan 1.7% 3.9%
Emerging Markets 13.9% 11.6%

% of net assets as of 9/30/2017 (updated quarterly)

Fund Breakdown by Domicile

Regions Fund
MSCI All Country World Index (ACWI)
United States 22.6% 52.1%
Canada 2.6% 3.2%
Europe 23.4% 21.7%
Japan 2.5% 7.6%
Asia-Pacific ex. Japan 1.0% 3.9%
Emerging Markets 8.4% 11.6%
Cash & Equivalents 5.6% --
Fixed Income 33.9% --

% of net assets as of 9/30/2017 (updated quarterly)

Prices & Distributions

Historical Prices Month-End

Historical Prices Year-End

Historical Distributions as of 11/17/17

2017
Record
Date
Calculated
Date
Pay Date
Income Dividend Regular
Income Dividend Special
Cap. Gains Long-Term
Cap. Gains Short-Term
Reinvest NAV
03/24/17 03/24/17 03/27/17 $0.0278 $0.00 $0.00 $0.00 $30.50
06/23/17 06/23/17 06/26/17 $0.1136 $0.00 $0.00 $0.00 $31.55
09/22/17 09/22/17 09/25/17 $0.0623 $0.00 $0.00 $0.00 $32.28
2017 Year-to-Date: Dividends Subtotal: $0.2037 Cap Gains Subtotal: $0.00
Total Distributions: $0.2037

Fees & Expenses

Fees

Annual Management Fees 0.46%
Other Expenses 0.18%
Service 12b-1 1.00%
As of each fund's most recent prospectus.

Expense Ratio

RGBLX 1.64%
Lipper Flexible Portfolio Funds Average --%
Fund as of most recent prospectus. Morningstar Category as of 7/31/17 (updated monthly).

Resources

Prospectuses & Reports for RGBLX

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

For more information about the risks associated with each fund, go to its detailed fund information page or read the prospectus.

There may have been periods when the fund(s) lagged the index(es). Certain market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Funds are managed, so holdings will change.

American Funds offers a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of advisor compensation and service provider payments.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

Although American Funds Global Balanced Fund has plans of distribution for Class R-1 shares, fees for distribution are not paid on amounts invested in the fund by the investment adviser and/or its affiliates. If fees for these services were charged on these assets, fund results would have been lower and expense ratios would have been higher. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement .

  1. Excludes certain securities in initial period of acquisition.
  2. Includes short-term securities, accrued income and other assets less liabilities.
  3. Prior to September 30, 2016, securities in the Real Estate sector were reported under the Financials sector.
  4. Figures include convertible securities; totals may not reconcile due to rounding. Methodology notes: The equity breakdown by revenue reflects the fund’s publicly traded equity holdings and excludes cash (and fixed income securities, if applicable). Underlying revenue data were compiled by MSCI and account for disparities in the way companies report their revenues across geographic segments. MSCI breaks out each company’s reported revenues into country-by-country estimates. MSCI provides revenue data figures based on a proprietary, standardized model. Revenue exposure at the fund and index level was calculated by using FactSet, which takes these company revenue exposures and multiplies by the company’s weighting in the portfolio and index. In this breakdown, Israel has been included in Europe.
  5. The portfolio managers shown are as of the fund's most recent prospectus dated 08/14/2017.
  6. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns at NAV, adjusted for volatility, relative to peers. Lipper ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures. Lipper ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return, Consistent Return, Preservation, Tax Efficiency and Expense metrics. The highest 20% of funds in each classification are named Lipper Leaders for Total Return, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader © 2017, Thomson Reuters, All Rights Reserved.
  7. Calculated by American Funds. Due to differing calculation methods, the figures shown here may differ from those calculated by Morningstar.
  8. Calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.
  9. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past results are not guarantee of results in future periods. Morningstar Rating is for Class R-1 only; other classes may have different performance characteristics.
  10. The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
  11. YTD (year-to-date return): the net change in the value of the fund's shares (in percentage terms) from January 1, 2017, to the current date shown above.
  12. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness. If agency ratings differ, the security will be considered to have received the highest  of those ratings, consistent with the fund's investment policies. Securities in the Unrated category have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with fund investment policies.
  13. Expense ratios are as of the most recent prospectus.
  14. Comparable industry expense information is not available for the fund.
  15. Read more information about Morningstar Style Box methodology. The Morningstar Ownership Zone™ provides detail about a portfolio's equity investment style by showing the range of stock sizes and styles. A portfolio's Ownership Zone™ is derived by plotting each stock in the fund's portfolio within the proprietary Morningstar Style Box™. The shaded area represents the center 75% of the fund's assets, and it provides an intuitive visual representation of the area of the market in which the fund invests. A "centroid" plot in the middle of the Ownership Zone represents the weighted average of all the fund's holdings. A fund that is concentrated will have a small ownership zone relative to the area of the style box, and broadly diversified fund will have an ownership zone that stretches across many sizes and style. Over a period of time, the shape and location of a fund's ownership zone may vary. The model for the fixed-income style box is based on the two pillars of fixed-income performance: interest-rate sensitivity and credit quality. The three interest sensitivity groups are limited, moderate and extensive and the three credit quality groups are high, medium and low. These groupings display a portfolio's effective duration and third party credit ratings to provide an overall representation of the fund's risk orientation given the sensitivity to interest rate and credit rating of bonds in the portfolio.
  16. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund's SEC yield and distribution rate may differ.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.

©2017 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor the American Funds are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.

Terms and Definitions

Beta: Beta relatively measures a fund's sensitivity to market movements over a specified period of time. The beta of the market (represented by the benchmark index) is equal to 1; a beta higher than 1 implies that a fund's return was more volatile than the market. A beta lower than 1 suggests that the fund was less volatile than the market. Generally the higher the R-squared measure, the more reliable the beta measurement will be.

Bond Statistic Average Coupon: The average coupon is the weighted average coupon rate of all the bonds in the fund.

Bond Statistic Average Duration in Years: Expressed in years, average duration is a weighted average of the estimated price sensitivity of the bonds in the fund's portfolio to a given change in interest rates. With respect to individual bonds, for example, a duration of 4 years indicates that the price of a bond will rise/fall by approximately 4% if rates in general fall/rise by 1%. Typically, bonds with a longer duration pay higher interest but are more sensitive to interest rate changes.

Bond Statistic Average Life in Years: Expressed in years, average life is time weighting the expected principal payments, taking into consideration the impact of calls and prepayments. In general, it is a better measure than average maturity for bonds that have the ability to prepay principal before they reach maturity (e.g., mortgages, mortgage-backed securities and asset-backed securities). Data shown is a weighted average of the bond funds held in the fund's portfolio.

Bond Statistic Average Yield to Maturity: A weighted average of all the fund's bond holding's yield to maturities. Yield to maturity is the return a bond earns if held to maturity, based on its price and coupon. Assumes that coupon payments can be reinvested at the yield to maturity.

Capture Ratio Downside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Capture Ratio Upside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Distribution rate 12-month: The income per share paid by the fund over the past 12 months to an investor from dividends (including any special dividends). The distribution rate is expressed as a percentage of the current price.

Historical Long-Term Capital Gains: When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund's holdings. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate. The information above classifies gain from the sale or exchange of a capital asset held for more than one year as a long-term capital gain.

Historical Regular Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Historical Short-Term Capital Gains: When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund's holdings. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate.

Historical Special Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Morningstar rating: In an effort to classify funds by what they own, as well as by their prospectus objectives and styles, Morningstar developed Morningstar Categories. While the prospectus objective identifies a fund's investment goals based on the wording in the fund prospectus, the Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio and other statistics over the past three years).

MSCI All Country World: MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure results of more than 40 developed and emerging equity markets. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter.

R-Squared: R-squared is a measure of the correlation between a particular fund's return and that of its benchmark index. A measure of 100 indicates that all of the fund's return can be explained by movements in its benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be. Calculated by Morningstar.

Standard Deviation: Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. Calculated by Morningstar.

Valuation Price-to-Cash Flow: Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund.

Valuation Price-to-Earnings Ratio: Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.

Valuation: Price-to-book ratio compares a stock's market value to the value of total assets less total liabilities (book value). Adjusted for stock splits. Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund. Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.