Fund Authority Scores rate mutual funds and exchange traded funds (ETFs) on the most important economic factors that influence individual investors’ net long term diversified investment fund performance. The Skilled Investor developed the Fund Authority Score system to provide individual investors with concise and objective summaries of mutual funds and ETFs for comparisons within investment asset classes.
For a directory of the Fund Authority Score reports of other mutual funds and ETFs, go here. When you go to this Fund Authority Score directory, you can easily find a list of all fund reports at the bottom of each article for that particular investment asset class. For more information about how a Fund Authority Score is developed for each mutual fund or ETF, go here.
The diversified investment fund strategy of the American Funds’ Capital World Growth and Income mutual Fund
At approximately $110 billion in assets with 3.6 million shareholder accounts, the Capital World Growth and Income Fund is a very large actively managed mutual fund. This fund invests worldwide in companies with large stock market capitalizations, and it favors firms that pay dividends. The Capital World Growth and Income Fund has a variety of share classes which can only be purchased through an advisor or other financial intermediary – not directly.
The table below presents the Fund Authority Score and other information for the Capital World Growth and Income Fund – Class A Shares.
Using an integer scale ranging from -10 to +10, Fund Authority Scores measure five factors:
1) annualized management and investment sales expenses (40% weighting), 2) annual trading costs implied by investment fund portfolio turnover (30% weighting), 3) inferior and superior historical performance (20% weighting), 4) minimum fund maturity (5% weighting), and 5) minimum fund size for operating efficiency (5% weighting).
Fund Authority Summary for the American Funds – Capital World Growth and Income Fund – Class A Shares (CWGIX) Fund Authority Summary American Funds – Capital World Growth and Income Fund Fund Authority Score FUND AUTHORITY SCORE (scale of -10 to +10) 2 FUND AUTHORITY SCORING COMPONENTS A) Management expenses & sales loads (-4 to +4) — Annual expense ratio with 12b-1 fees 0.69% — Front-end sales load with 5 year amortization 1.15% —– Total annual direct costs 1.84% -3 B) Fund portfolio transactions costs (-3 to +3) — [...]