On July 1, 2020, Capital Group, the advisor to the American Funds, announced that portfolio manager Gregory Johnson will retire in March 2021 and will step off of American Funds American Balanced at that time. Johnson also served as lead principal investment officer of the fund until June 8, 2020, and in that role made final asset-allocation decisions. Johnson has a great deal of experience, with 26 years at the firm and 17 years as a manager of the fund, so his departure will be a loss. However, the fund will still be managed by a deep, veteran crew that includes five named equity managers, three fixed-income managers, and one “balanced” manager who invests in both stocks and bonds. Johnson’s impending retirement does not affect the fund’s Above Average People rating, the Morningstar Analyst Rating of Silver for the 12 cheapest share classes, or the Bronze rating for the five others.
American Funds American Balanced 529E CLBEX
Adjusted Expense Ratio excludes certain variable investment-related expenses, such as interest from borrowings and dividends on borrowed securities, allowing for more consistent cost comparisons across funds.
Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will CLBEX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable CLBEX’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the CLBEX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of CLBEX’s parent organization’s priorities and whether they’re in line with investors’ interests.
An Impending Portfolio Manager Retirement Doesn't Affect American Funds American Balanced
