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Capital Group in Singapore fund push

The firm plans to launch four products in the Lion City, which include three equity funds and a fixed income offering.

Capital Group has filed an application with the Monetary Authority of Singapore (MAS) to launch four products to retail investors in the Lion City last week, according to the regulator’s records.

The funds, which are pending regulatory approval, are the Capital Group Washington Mutual Investors Fund (LUX), the Asian Horizon Fund (LUX), the European Opportunities (LUX) and the Global Total Return Bond Fund (LUX).

The firm told FSA that it plans to continue to build out its Luxembourg Ucits fund range in Asia, but declined to elaborate about the soon-to-be-launched products.

In Singapore, the firm offers around 24 of its Luxembourg Ucits funds to retail investors, while it has 23 SFC-authorised funds in Hong Kong, according to records from the MAS and Hong Kong’s Securities and Futures Commission.

The funds

The Washington Mutual Investors Fund (LUX) has a US-domiciled version, which was originally incepted in 1952, according to the firm’s website.

It invests primarily in New York-listed equities that have a “strong record of earnings and dividends”, according to its prospectus, noting that it prefers companies that have paid a dividend in at least eight of the past 10 years.

The Washington Mutual Investors Fund (LUX)

Source: Capital Group
Source: Capital Group

Meanwhile, the other three funds are newly-incepted products.

The Asian Horizon Fund (Lux) Fund invests in Asia (ex-Japan) equities and may invest up to 35% of its assets in China A-shares via the stock connect programmes between Hong Kong and China, according to the prospectus.

The European Opportunities (LUX) Fund seeks to provide long-term capital appreciation by investing in European equities, while the Global Total Return Bond Fund invests primarily in investment grade bonds.

The fund applications follow after Capital Group launched the World Growth and Income (WGI) Fund in Singapore in September last year. It also brought the Capital Group New Economy Fund to investors in Hong Kong and Singapore in 2019.

Part of Mark Allen.