Capital Group Introduces Multi-Asset Approach Across European Markets
Capital Group's American Balanced Strategy Now Available to European Investors
Capital Group's long-standing and successful American Balanced Strategy is now accessible to European investors, following the launch of the Capital Group American Balanced Fund (LUX). This UCITS fund, with the ISIN number LU2359297087, offers a balanced approach to achieving capital preservation, current income, and long-term growth of capital and income.
The American Balanced Fund has demonstrated a strong and consistent performance over various periods. As of mid-2025, it has delivered annualized returns of approximately 9.25% over 5 years and 8.11% over 10 years, outperforming category averages. Year-to-date and recent annual returns include +6.72% YTD and +12.43% over 1 year, reflecting its resilience in different market environments. The net expense ratio is about 1.31%, slightly above category average but without front load fees.
The fund employs a balanced approach by allocating across equities and fixed income to achieve growth and income objectives. It is actively managed without strict benchmark tracking, allowing flexibility to adapt across market cycles. The U.S.-focused strategy takes advantage of selective growth opportunities in large, addressable markets with strong secular growth drivers, while also providing downside protection through dividends and fixed income exposure.
Capital Group's American Balanced Strategy, originally launched 45 years ago in the U.S., manages around $210 billion in assets and historically has had only four calendar years of negative returns. The Capital Group American Balanced Fund, following the same investment approach as the U.S. strategy, is managed by the same team of ten portfolio managers.
For European investors, the American Balanced Fund (LUX) provides greater accessibility and regulatory protections, as it complies with European regulatory standards. Recently, Capital Group launched the Core Balanced ETF (CGBL) in 2023, a related product with a similar balanced philosophy, which has gained 20.5% annualized from inception through mid-2025, outperforming moderate allocation peers. It has a Gold Morningstar Medalist rating, reflecting a strong management team and sound investment process.
In summary, the Capital Group American Balanced Strategy combines long-term growth and income objectives in a balanced portfolio, with a strong track record of risk-adjusted performance, managed actively by an experienced team. The introduction of the Core Balanced ETF offers another option with a similar investment philosophy and notable early performance success. For those interested, a confirmation email has been sent, and the Capital Group American Balanced Fund can be found via a Luxembourg-based fund.
- Other European investors now have the opportunity to invest in Capital Group's American Balanced Strategy, which has demonstrated a strong performance in finance and has managed to outperform category averages for many years.
- With the launch of the Capital Group American Balanced Fund (LUX), European investors can invest in a balanced approach that aims to achieve capital preservation, current income, and long-term growth of capital and income, whereas the newly launched Core Balanced ETF provides another investing option with similar investment philosophy and significant early success.
