Capital Group Introduces Multi-Asset Approach in European Markets
In an exciting development for European investors, the Capital Group American Balanced Fund (LUX) has been launched, providing access to a well-established, balanced investment strategy with a strong track record of returns.
This fund, managed by the same investment team as its U.S. counterpart, aims for a balanced approach that combines capital preservation, income generation, and long-term capital and income growth. Its key features include a diversified portfolio across equities and bonds, with a clear focus on the U.S.
The Capital Group American Balanced Fund (LUX) (ISIN: LU2359297087) has shown impressive performance as of mid-2025. The American Funds American Balanced Fund® Class R-6, a U.S. equivalent fund, has delivered year-to-date returns of +8.27%, a 1-year return of +14.62%, a 5-year annualized return of +10.41%, and a 10-year annualized return of +9.27%. It has consistently outperformed its category averages and maintained a net expense ratio of 0.25%, significantly lower than the category average expense ratio of 1.01586%.
The investment strategy includes a diversified equity portfolio with significant holdings in major sectors like technology, healthcare, communication services, and energy. For example, a related Capital Group Core Balanced ETF shows top holdings such as Microsoft, Broadcom, and Alphabet, underpinning a strong quality-oriented equity component with a slightly larger allocation to high-yield bonds than peers, enhancing income potential.
The strategy benefits from Capital Group’s experienced management and sound investment process, as well as cost efficiency, reflected in its lower fees compared to competitors. Ten portfolio managers are responsible for the Capital Group American Balanced Fund (LUX).
The American Balanced Strategy, launched over 45 years ago in the U.S., manages approximately $210 billion in assets. According to the company, the strategy has proven successful in down markets and has shown only four calendar years of negative returns.
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- European investors considering alternative finance options might find the Capital Group American Balanced Fund (LUX) appealing, as it offers access to a balanced investment strategy that combines assets from both equities and bonds, with a focus on the U.S. markets.
- Investors looking to diversify their portfolios by investing in other funds may want to consider the Capital Group American Balanced Fund (LUX), as its investment strategy includes a diversified equity portfolio, focusing on major sectors like technology, healthcare, communication services, and energy, aiming to deliver both capital growth and income.
