May 14, 2018

IN THE MATTER OF THE SECURITIES LEGISLATION OF ONTARIO (the Jurisdiction)

AND

IN THE MATTER OF THE PROCESS FOR EXEMPTIVE RELIEF APPLICATIONS IN MULTIPLE JURISDICTIONS

AND

IN THE MATTER OF Capital International Asset Management (Canada), Inc. (the Filer)

AND

IN THE MATTER OF

Capital Group World Bond Fund^SM (Canada) (the Fund)

DECISION

Background

The principal regulator in the Jurisdiction has received an application from the Filer on behalf of the Fund for a decision under the securities legislation of the Jurisdiction of the principal regulator (the Legislation) for an exemption (the Exemption Sought), pursuant to section 19.1 of National Instrument 81-102 Investment Funds (NI 81-102), from subsection 2.1(1) of NI 81-102 (the Concentration Restriction) to permit the Fund to invest up to:

(a). 20% of its net asset value at the time of the transaction in evidences of indebtedness of any one issuer if those evidences of indebtedness are issued, or guaranteed fully as to principal and interest, by supranational agencies or governments, other than the government of Canada, the government of a jurisdiction in Canada or the government of the United States of America, and are rated “AA” by Standard & Poor’s Rating Services (Canada) (S&P) or its DRO affiliate (as defined in NI 81-102), or have an equivalent rating by one or more other designated rating organizations or their DRO affiliates; and

(b) 35% of its net asset value at the time of the transaction in evidences of indebtedness of any one issuer if those evidences of indebtedness are issued, or guaranteed fully as to principal and interest, by supranational agencies or governments, other than the government of Canada, the government of a jurisdiction in Canada or the government of the United States of America, and are rated “AAA” by S&P or its DRO affiliate, or have an equivalent rating by one or more other designated rating organizations or their DRO affiliates

(such evidences of indebtedness are collectively referred to as Foreign Government Securities).

Under the Process for Exemptive Relief Applications in Multiple Jurisdictions (for a passport application):

(a) the Ontario Securities Commission is the principal regulator for this application; and

(b) the Filer has provided notice that section 4.7(1) of Multilateral Instrument 11-102 Passport System (MI 11-102) is intended to be relied upon in British Columbia, Alberta, Saskatchewan, Manitoba, Québec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, the Northwest Territories, Nunavut and Yukon (the Other Jurisdictions).

Interpretation

Terms defined in NI 81-102, National Instrument 14-101 Definitions, and MI 11-102 have the same meaning if used in this decision, unless otherwise defined.

Representations

This decision is based on the following facts represented by the Filer:

1. The Filer is a corporation incorporated under the laws of the Province of Ontario. The head office of the Filer is in Toronto, Ontario.

2. The Filer is registered as an investment fund manager in Ontario, Québec and Newfoundland and Labrador, as an adviser in the category of portfolio manager in Ontario, and as a dealer in the category of exempt market dealer in Alberta, British Columbia, Nova Scotia, Ontario and Québec.

3. The Filer is the manager and trustee of the Fund. The Filer also acts as the portfolio advisor for the Fund’s portfolio, other than the portion of the portfolio invested in futures contracts and futures options (the Ex Commodity Futures Portfolio). Capital Research and Management Company, an affiliate of the Filer, acts as the portfolio advisor for the commodity futures portion of the portfolio and as investment subadvisor for the Ex Commodity Futures Portfolio.

4. The Fund is an open-ended mutual fund trust established under the laws of Ontario.

5. Units of the Fund are currently qualified for distribution pursuant to a simplified prospectus dated August 31, 2017 filed in the Jurisdiction and each of the Other Jurisdictions (the Simplified Prospectus). Accordingly, the Fund is a reporting issuer in the Jurisdiction and each of the Other Jurisdictions.

6. Neither the Filer nor the Fund is in default of securities legislation in the Jurisdiction or any of the Other Jurisdictions.

7. The investment objective of the Fund is to seek to provide, over the long term, a high level of total return consistent with prudent investment management through investments primarily in bonds and other debt securities of global issuers. Total return comprises the income generated by the Fund and the changes in the market value of the Fund’s investments.

8. As part of its investment strategies, the Filer would like to invest at least 80% of the Fund’s assets in bonds and other debt securities, which include Foreign Government Securities. Under normal market conditions, the Fund will invest substantially in investment-grade bonds (rated Baa3 or better or BBB- or better by Statistical Rating Organizations (SROs) recognized by the United States Securities and Exchange Commission), and may also invest up to 25% of the value of its assets in lower quality, higher yielding debt securities (rated Ba1 or below and BB+ or below by SROs).

9. Subsection 2.1(1) of NI 81-102 prohibits the Fund from purchasing a security of an issuer, other than a “government security”, as defined in NI 81-102, if, immediately after the purchase, more than 10% of the net asset value of the Fund would be invested in securities of that issuer.

10. The Foreign Government Securities do not meet the definition of “government securities”, as such term is defined in NI 81-102.

11. The Filer believes that the ability to purchase Foreign Government Securities in excess of the limit in subsection 2.1(1) of NI 81-102 will better enable the Fund to achieve its fundamental investment objectives, thereby benefitting the Fund’s investors.

12. The Fund will only purchase Foreign Government Securities if the purchase is consistent with the Fund’s fundamental investment objectives.

13. Subsection 3.1(4) of Companion Policy 81-102CP indicates that relief from paragraph 2.04(1)(a) of National Policy 39, which was replaced by the Concentration Restriction, has been provided to mutual funds generally under the following circumstances: