Capital Income Builder®
American Funds®
Equity-income fund
Overview
Capital Income Builder may be appropriate for:
- Individuals who are seeking an opportunity for their investment income to grow
- Investors seeking a conservative investment with a history of resistance to market declines
- Investors who want an opportunity to outpace inflation with potential long-term growth and income
Objective
Seeks to provide a level of current income that exceeds the average yield on U.S. stocks generally, and a growing stream of income over the years. Secondarily, the fund strives to make your investment grow over time.
Manager
The fund is managed by Capital Research and Management Company, one of the nation's oldest, largest and most respected investment management firms. Since 1931, Capital Research has invested with a long-term focus based on thorough research and attention to risk.
Fund information
|
Began operations: Expense ratio:* Investment expenses paid annually:† |
7/30/87 0.66% $6.60 for a $1,000 balance |
 |
Newspaper symbol: Ticker symbol: |
CapIBA CAIBX |
Stock holdings may include convertible securities.
*Fund expenses are for the 12 months ended 9/30/09. Please see the fund's most recent prospectus for details.
†You can estimate the investment expenses you're paying annually by multiplying your balance in the fund by the expense ratio.
Top 10 holdings
(Percentage of net assets shown are for the most recent period available as of 9/30/09; holdings are subject to change)
| 1. | Verizon Communications | 2.0% | 6. | Sasol | 1.2% |
| 2. | Philip Morris International | 1.8% | 7. | Taiwan Semiconductor Manufacturing | 1.2% |
| 3. | AT&T | 1.7% | 8. | Merck | 1.1% |
| 4. | Banco Santander | 1.7% | 9. | Royal Dutch Shell | 1.1% |
| 5. | E.ON | 1.3% | 10. | BP PLC | 1.1% |
Where the fund was invested
(as of 9/30/09; percentage of net assets; holdings are subject to change)
Past results
The bar graph below shows the fund's annual results and illustrates the fund's fluctuations over the past 10 years. (The percentages are shown at net asset value, updated annually as of 12/31. If the results reflected deduction of the maximum sales charge of 5.75%, they would have been lower.)
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 here. For more current information and month-end results, click here. Share price and return will vary, so you may lose money. Investing for short periods make losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity.
Average annual total returns through 9/30/09
| Latest 10 years |
Latest 5 years |
Latest 3 years |
Latest year |
|
|---|---|---|---|---|
| At net asset value | 6.98% | 4.89% | -0.91% | -0.28% |
| At maximum offering price (Class A shares, with 5.75% maximum sales charge) |
6.35% | 3.65% | -2.85% | -6.01% |
Investment results reflect the deduction of applicable fees and expenses and the reinvestment of all distributions. The fund's investment adviser waived a portion of its management fees from 9/1/04 through 12/31/08. Results shown reflect the waiver, without which the results would have been lower. Please see the fund's most recent prospectus for details.
Important information
In applying any particular asset allocation model to your own individual situation, you should consider your other assets, income and investments. For example, in addition to your retirement plan investments, you should consider any investments (including those in an Individual Retirement Account) and savings accounts.
Investments made outside the United States involve special risks, such as currency fluctuations, political instability, differing securities regulations and periods of illiquidity.
Stock funds are subject to market fluctuations.
Fund results and expense ratio information listed above apply to Class A shares only. The results and expense ratio information for the investments in your plan may differ.
SIMPLE IRA and SEP plans only:
Additional share class options are available without an up-front sales charge. There is no sales charge on Class A shares for plans with over $1 million invested in American Funds. Class B shares have higher expenses than Class A shares and a contingent deferred sales charge (CDSC) (up to 5%) if shares are sold within the first six years of purchase. Class B shares convert to Class A shares in the month of the eighth anniversary of purchase. Class C shares have higher expenses than Class A shares and a 1% CDSC if shares are sold within the first year of purchase. Class C shares convert to Class F-1 shares in the month of the 10th anniversary of purchase. Class F-1 shares have expenses similar to Class A share expenses, and carry an annual asset-based fee that is charged by participating broker-dealers. Your financial professional can help you decide which option is best for you.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund's prospectus, which can be obtained from your financial professional or downloaded and should be read carefully before investing. You can find a link to the prospectus at the top of the page.
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