American Funds Equity Pool consists of both growth funds and growth-and-income funds. Growth funds seek growth of capital over the long-term by investing in companies with a history of rapidly growing earnings and generally higher price-to-earnings ratios. Growth-and-income funds seek growth of capital as well as current income. These funds invest mainly in the common stock of companies with a history of solid growth and a record of consistent dividend payments. The American Funds Equity Pool consists of the following funds:
30% Washington Mutual Investors Fund
23% Capital World Growth and Income Fund
20% The Growth Fund of America
15% AMCAP Fund
12% EuroPacific Growth Fund
American Funds Balanced Pool seeks to provide above-average current income, a growing stream of income and growth of capital. Normally, at least 50% of assets will be invested in common stocks of large, established companies with proven records of increasing dividends. The fund may also invest in preferred stocks, convertibles, bonds and cash. The fund may invest up to 40% of assets in securities of non-U.S. issuers. The American Funds Balanced Pool is currently The Capital Income Builder fund.
American Funds Fixed Income Pool is designed to produce current income for shareholders by investing in corporate and government securities. The American Funds Fixed Income Pool consists of the following:
34% The Bond Fund of America
33% Intermediate Bond Fund of America
33% U.S. Government Securities Fund
American Funds Money Market Pool invests in securities such as commercial paper, certificates of deposit, Treasury bills and other highly liquid and stable securities. Money market funds typically have very low expense ratios and interest is credited monthly to shareholders. The American Funds Money Market Pool is entirely The Cash Management Trust of America.
Visit the American Funds website for complete details on the individual funds. |
