Dealing Guide for Distributors and Intermediaries Capital Group Luxembourg funds Last update: November 2015
Table of contents About this document Important information Funds Contact details information Account Opening information Dealing information Valuation Date Placing Orders Cut-Off Times Pricing frequency Pre-notifications Settlement cycles Payment Currency Confirmation / Contract notes Statements Dividend payments Improper trading Subscriptions Redemptions Commissions / Compensation Other EUSD Taxes Appendix 1: Settlement Instructions "Capitalised terms used in this Agreement that are not defined herein will have the definition given to them in the relevant Prospectus"
About this document This Dealing Guide provides key information and operational assistance when dealing in Capital Group Luxembourg funds (the Funds and should be looked at in conjunction with the relevant Funds Documents as defined below. The Dealing Guide applies only to distributors and Intermediaries ( Intermediary ) having an arrangement (the Agreement ) with the Capital Group. If assistance is required, please contact Capital Group Investor Services at +41 22 807 4800. Please refer also to Contact Details Information section. Important information This Guide is not a legal document and does not constitute an agreement. Should the terms of the Dealing Guide be or become inconsistent with the terms of the relevant Prospectus, the Key Investor Information Document ( KIID ) and/or the Agreement (the Funds Documents), the Prospectus, the KIIDs and/or the Agreement will prevail. Please note that the information is relevant only for the Funds and classes covered by the Agreement. Automatic updates of the Dealing Guide will be available on the Funds internet site (thecapitalgroup.com/emea) These Funds may not be registered for public or limited distribution in all countries. Please refer to thecapitalgroup.com/emea or contact Capital Group Investor Services for an updated list of Funds registrations. Funds Fund (CIF) Capital Group Global Equity Fund (LUX) Capital Group Japan Equity Fund (LUX) Capital Group Asia Pacific ex Japan Equity Fund (LUX) Capital Group World Dividend Growers (LUX) Capital Group Global Growth and Income Fund (LUX) Capital Group European Growth and Income Fund (LUX) Capital Group US Growth and Income Fund (LUX) Capital Group Global Allocation Fund (LUX) Capital Group Global High Income Opportunities (LUX) Capital Group Global Bond Fund (LUX) Capital Group Euro Bond Fund (LUX) Capital Group Euro Credit Fund (LUX) Capital Group New Perspective Fund (LUX) Emerging Markets Fund Portfolios Capital Group Emerging Markets Debt Fund (LUX) Capital Group Emerging Markets Total Opportunities (LUX) Capital Group Emerging Markets Local Currency Debt Fund (LUX) Portfolios 2 Capital Group Global Absolute Income Grower (LUX) Abbreviation CIF CGGELU CGJPELU CGAPXELU CGWDGLU CGGGILU CGEGILU CGUSGILU CGGALU CGGHIOLU CGGBLU CGEBLU CGECLU CGNPLU CIEMF CIP CGEMDLU CGETOPLU CGEMLCDLU CIP2 CGGAIGLU Dealing Guide for Distributors and Intermediaries 3
Contact Details Information Mailing address Capital Group Investor Services 6C, route de Trèves L-2633 Senningerberg Luxembourg For account and transaction queries (Please note these lines are recorded) Capital Group Investor Services Toll free (EU & CH): 00 800 243 38637 (option 1 or 3) Tel: +352 46 26 85 611 Team email: capital.ta@jpmorgan.com Fax: +352 22 74 43 For information on the Funds and fees Capital Group Investor Services Toll free (EU & CH): 00 800 243 38637 (option 2) Tel: +41 22 807 4800 Team email: ist@capgroup.com Fax: +41 22 807 4400 Fabien Bossus, Manager Tel: +41 22 807 4954 Email: fab@capgroup.com Lorenzo Fino, Senior Associate Tel: +41 22 807 4558 Email: lf@capgroup.com thecapitalgroup.com/emea Funds Custodian, Transfer Agent and Administrator J. P. Morgan Bank Luxembourg S.A. European Bank and Business Centre 6C, route de Trèves L-2633 Senningerberg Luxembourg Dealing Guide for Distributors and Intermediaries 4
Account opening Intermediaries must open an account with the Funds prior to first investing. Account Opening Forms must be used for this purpose and can be obtained from Capital Group Investor Services. An Account Opening Form is valid only when accompanied by a complete set of appropriate investor identification documents. Capital Group Investor Services must receive an Account Opening Form by fax and all the required identification documentation (the list of required documents will be communicated once the exact Intermediary s name will be known) prior to the initial transaction, no later than trade date ( T ), before the relevant Fund s Cut-Off Time. The original Account Opening Form, and other potential identification documents, will need to follow by post. Capital Group Investor Services will be responsible for collecting and checking Know Your Client ( KYC ) and Anti- Money Laundering ( AML ) documents in accordance with the Luxembourg regulatory requirements. The Intermediary will then be responsible for ensuring that such procedures are followed in respect of its clients, as per the Agreement. Capital Group Investor Services will open accounts in the Funds register(s) in the name of the Intermediary. If a Nominee is used, the Nominee will mention the Intermediary s name in the Account Opening Form. Dealing Guide for Distributors and Intermediaries 5
Dealing Information Valuation Date The Funds are valued on each Business Day, except when the markets that represent 40% or more of the Fund s portfolio, as determined towards the end of each year for the following year, are closed at the time the Net asset value is calculated. Please refer to our website: thecapitalgroup.com/emea for a complete list of the days on which the Funds are expected to be closed. Any transactions received on those dates will be processed on the next available valuation date. Dealing Cut-Off Times In order to take effect on a Valuation Date, orders must be received by Capital Group Investor Services prior to the dealing Cut-Off Time on that day. Orders received after this Cut-Off Time will be processed on the next available Valuation Date. Funds Dealing Cut-Off Time CIF 1:00pm CET CIEMF CIP CIP2 1:00pm CET 1:00pm CET 12:00pm CET Placing orders Deals can be sent via: Fax +352 22 74 43 to the attention of Capital Group Investor Services Mail Capital Group Investor Services PO Box 167 6C, route de Trèves L-2633 Senningerberg Luxembourg Clearstream or Euroclear ¹ The settlement via either Euroclear or Clearstream, and the relevant participant number, shall be indicated on the Account Opening Form when placing the initial trade. The account number with Euroclear or Clearstream to be used for settlement must be communicated whenever placing a transaction. Settlement: All orders will be delivery versus payment ( DVP ) with settlement on T+3 or T+4 Week Days (please refer to the Settlement cycles section on page 8). All transactions settle in the Clearstream account: 71339. Free of payment transactions to and from the Transfer Agent: any free of payment deliveries without matching instructions will be rejected by the Fund s Euroclear / Clearstream Settlement and Paying Agent. Distribution/Trailer fee processing: in order to accurately calculate and pay distribution fees, Capital Group Investor Services needs to be advised of any free of payment transfers between the Intermediary and another Euroclear or Clearstream participant. Dealing Guide for Distributors and Intermediaries 6
If no advice is given to the Transfer Agent, positions will be adjusted at month end upon receipt of the secondary market activity reports from Clearstream or Euroclear. Euroclear / Clearstream Settlement & Paying Agent Bank of New York Mellon Merck House, Seldown Lane POOLE, Dorset BH15 1TW ¹ Not all Funds/ classes are available through the various settlement platforms. Contact Capital Group Investor Services for an updated list Vestima or Fundsettle Capital Group Investor Services must be informed when opening the account. Transfers from Clearstream or Euroclear to Vestima or Fundsettle need to be coordinated with Capital Group Investor Services and Vestima or Fundsettle. Calastone Capital Group Investor Services and Calastone must be informed if this transaction network will be used. For existing clients of Calastone the connectivity implementation will take up to 5 Business Days. For new clients of Calastone, the connectivity implementation will take on average between 6 to 8 weeks. Contact details at Calastone Luxembourg: Isabell de Wit 46a, avenue John F. Kennedy L-1855 Luxembourg Tel: +352 26 005 217 Email: Isabell.dewit@calastone.com Web: http://www.calastone.com EMX Capital Group Investor Services must be informed when opening the account. FundSERV / NSCC Capital Group Investor Services must be informed immediately in order to coordinate the onboarding process. Account opening will take place via NSCC, and the Intermediary will be required to fill in a questionnaire indicating how they expect to transact, etc. A period of connectivity testing will be organized (1-2 weeks duration) to ensure the deals flow as expected. Any deals received on a holiday or restricted Valuation Date will be processed on the next available trade date. Note: orders sent by email or by telephone will not be accepted Dealing Guide for Distributors and Intermediaries 7
Prenotifications Subscription and redemption prenotifications: Funds Amounts Prenotification CGAPXELU over EUR 5 million or equivalent T-3 (WD) CGJPELU over EUR 5 million or equivalent T-3 (WD) CGGHIOLU over EUR 25 million or equivalent T-3 (WD) CIEMF over USD 50 million or equivalent T-3 (WD) CGETOPLU over USD 50 million or equivalent T-3 (WD) CGEMDLU over USD 25 million or equivalent T-3 (WD) CGEMLCDLU over USD 5 million or equivalent T-3 (WD) WD = Week Day (any calendar day other than a Saturday or a Sunday) Pricing frequency Funds Pricing frequency CIF Daily on T CIEMF Daily on T+1 CIP Daily on T+1 CIP2 Daily on T+1 CIF NAVs are available from around 7:00pm CET on T. CIEMF, CIP and CIP2 NAVs are available around 3:00pm CET on T+1. All NAVs are then published on thecapitalgroup.com/emea Upon request, the daily NAV will be communicated by email. Settlement cycles Fund Subscription Redemption CIF CIEMF Standard Contractual Above EUR 5 million or equivalent for CGAPXELU and CGJPELU and above EUR 25 million or equivalent for CGGHIOLU Standard Above USD 50 million or equivalent T T+3 (WD) T T+3 (WD) T T+3 (WD) T+4 (WD) Standard T Contractual T+4 (WD) CIP Above USD 50 million or equivalent for CGETOPLU, above USD 25 million or equivalent for CGEMDLU and above USD 5 million or equivalent for CGEMLCDLU T T+4 (WD) CIP2 Standard Contractual T T+3 (WD) T+4 (WD) WD = Week Day (any calendar day other than a Saturday or a Sunday) If you require contractual settlement, please contact Capital Group Investor Services at +41 22 807 4800 or ist@capgroup.com. Dealing Guide for Distributors and Intermediaries 8
Payment currencies Please check the latest Prospectus for the list of payment currencies available by Funds and classes. For payment in any other currencies, please refer to Appendix 1 Settlement instructions. Subscription amounts received in any convertible currency other than an available Payment Currency will generally be converted by Capital Group Investor Services before being invested in shares, on behalf of the Intermediary and at his expense and risk. To avoid delays and potential bank fees, IBAN are required for all EUR, GBP and CHF bank mandates or payment made in EUR, GBP and CHF currency. This is applicable to redemptions, distribution fee payments, and dividend distribution. Confirmation/ Contract Notes A Contract Note will normally be sent by regular mail or faxed to the Intermediary and specified parties: by the end of day on T for CIF (at the latest by 10:00am on T+1) before the end of the day on T+1 for CIEMF, CIP and CIP2 Statements Monthly statement will be sent to the Intermediary and the specified parties by regular mail and by fax (if a fax number has been provided) within 5 Business Days of month-end. Quarterly statement will also be sent with a summary of the transactions of the last quarter. The statement will not include transactions placed on the last Business Day of the month. These transactions will be included in the following month s statement. The information on the statement will include the number of shares held by the Intermediary, the Net Asset Value per share and the Intermediary s total net assets by Fund. The reporting will be made in the Payment Currency of the original subscription unless otherwise requested. It is currently not possible to provide monthly statements by email. Dividend payments Eligible classes (as described in the Prospectus) will pay dividends in cash or shares. The Intermediary can elect in writing to have their dividends paid to them or reinvested in shares. If the Intermediary elects payment, the relevant amount will be paid by bank transfer. Details of the dividend declaration and payment dates will be made available on the website thecapitalgroup.com/emea Improper trading The Funds are long-term investment vehicles and are not intended for improper trading practices. The Distributor and/or Intermediary will ensure that its clients do not engage in improper trading practices, as defined and provided for in relevant Luxembourg regulations, in respect of the Shares. Accordingly, consistent with the Prospectus, the Distributor will monitor trading patterns and refrain from submitting to the Funds transactions that would appear to involve such practices. Any Fund may withhold a redemption charge, or if applicable a switch charge, as per the Prospectus (at the date hereof, maximum 2%) for the purpose of protecting the Fund against excessive trading. Short-term holdings (i.e. typically any position sold, or switched to another Fund, less than 2 months after the date of investment) as well as excessive trading (i.e. Intermediaries having adopted a pattern of investing and disinvesting - or switching - regularly) are presumed to constitute improper trading. Capital Group Investor Services monitors the activity in the accounts and will request an explanation if unusual or suspicious activity is detected through the regular checks. Dealing Guide for Distributors and Intermediaries 9
Subscriptions Subscriptions will be processed on the same day the order is received provided complete and valid instructions (Transaction Request Form or equivalent) are received before the relevant Fund s Cut-Off Times as specified under Dealing Cut-Off Times section. Subscription orders should contain the following information: Shareholder account number and registered name Fund & ISIN Code Number of shares (two decimals) or amount to be purchased Payment currency Payment details Authorised signatures Subscription proceeds must be received on the Fund s account at J. P. Morgan Bank Luxembourg S.A. no later than the settlement date as specified under Settlement Cycles section. For payment instructions, please refer to Appendix 1 Settlement Instructions. Redemptions Redemptions will be processed on the same day if a valid order is received (complete and signed Transaction Request Form or equivalent with payment details) no later than the relevant Fund s Cut-Off time as specified under Dealing Cut-Off Times section. Redemption orders should contain the following information: Shareholder account number and registered name Fund & ISIN Code Number of shares or amount to be redeemed Payment currency Payment details Authorised signatures Capital Group Investor Services will transfer the redemption proceeds to the account in the name of the Intermediary at latest on settlement date, as specified under Settlement Cycles section, provided that all AML requirements are met. In case of multiple redemptions settling on same day and in the same currency, one aggregated amount will be wired to the account in the name of the Intermediary. Dealing Guide for Distributors and Intermediaries 10
Commissions / Compensation The investor entitled to compensation as described in the Agreement. For any accounts not held under the investor s name or with no reference, you are responsible for providing us with a detailed report of monthly transactions and positions. The distribution fees will be calculated and accrued on the basis of the number of shares held in each Fund by the investor and/or its Nominee, as of each calendar day, multiplied by the net asset value per Share on each such day, applying the relevant distribution fee rate. For calendar days that are not Valuation Dates, the calculation will be based on the last available Net Asset Value. The shares held in the account which belong to direct clients of one of the affiliates of Capital Group International Inc. will be excluded from the calculation of the compensation. The names of such clients will be communicated by Capital Group Investor Services. The fee is paid in arrears within 30 days after the end of each calendar quarter. The fee due will be paid in the Payment Currency of the original subscription unless otherwise requested. Payments will be made to the designated bank account. The payment will be advised to a designated contact at the investor. The advice will mention the receivable amount, the payment details and the value date of the payment. The amount of the commission can be reinvested in new shares if elected. Other EUSD Taxes Distributors acting as paying agents for their clients may be affected by EUSD. Please refer to our website: thecapitalgroup.com/emea for the list of the Funds in scope. For taxable investors resident in Austria, Germany, Switzerland and the United Kingdom, please refer to our website: thecapitalgroup.com for any tax related questions. Dealing Guide for Distributors and Intermediaries 11
Appendix 1: Settlement Instructions USD ABA: JPMorgan Chase Bank New York CHASUS33 021000021 001-1-019007 EUR BLZ: IBAN: J.P. Morgan AG Frankfurt CHASDEFX 501 108 00 6001600441 DE49501108006001600441 GBP Sort Code: IBAN: JPMorgan Chase Bank London CHASGB2L 60-92-42 23446303 GB22CHAS60924223446303 CHF Bank Clearing Code: IBAN: JPMorgan Chase Bank Zurich CHASCHGX 08635 9906859010 CH4608635009906859010 JPY Further credit to a/c name: Further credit to a/c no: J.P. Morgan Bank Tokyo CHASJPJT JPMorgan Chase Bank London 0195006713 23446307 SGD Further credit to a/c name: Further credit to a/c no: Oversea Chinese Banking Corporation Ltd, Singapore OCBCSGSG JPMorgan Chase Bank London 501474191001 40007929 AUD Further credit to a/c name: Further credit to a/c no: IBAN: Australian and New Zealand Banking Group Limited, Melbourne ANZBAU3M JPMorgan Chase Bank London 218032AUD00001 41380600 GB40CHAS60924241380600 Any other currencies Please contact Capital Group Investor Services at +41 22 807 4800 or ist@capgroup.com The FX will be performed at the exchange rate prevailing on T and at the cost and risk of the investor. Dealing Guide for Distributors and Intermediaries 12