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Capital Group launches global equity fund in Asia

The $94.3bn Capital World Growth and Income Fund was launched in Singapore today, according to a statement from the firm.

Set up in 1993, the World Growth and Income (WGI) Fund is a core global equity strategy of Capital Group, which aims to provide long-term growth of capital while providing income, the statement noted.

“The WGI strategy has been designed for investors who want to participate in the dynamism of global equity markets, but who have struggled to find a balance between capturing growth opportunities while maintaining some downside protection,” said Andy Budden, investment director of Capital Group in the statement.

“In today’s market environment, the WGI strategy also addresses investors’ concerns of slowing global growth, increased volatility and flattening interest rates,” Budden added.

The product was recognised by the Monetary Authority of Singapore (MAS) earlier this month, making it available to retail investors in Singapore, according to the regulator’s record.

The fund is managed by eight portfolio managers who are based in the US, Europe and Asia with individual responsibility for their segments, which is similar to the process adopted by the long-established $70bn Capital Group New Perspective Fund (LUX)

About half the portfolio is invested in US equities and the top three sectors are information technology, financials and health care, according to the fund’s factsheet as of 30 June 2019 (Capital Group was unable to provide more recent data).

The fund’s three-year annualised return to 30 June was 10.61%, which was lower than 11.62% return of its benchmark MSCI AC World Index, according to the factsheet.

As for further plans in Asia, a spokeswoman for the firm said that “the [WGI] fund will be available to retail investors and professional investors through private banks in Hong Kong” – but could not say how soon.

In addition, the firm’s Capital Group New Economy Fund has also been recognised by MAS. However, the spokeswoman could not say when it will be launched.

Capital World Growth & Income Fund: portfolio allocations

Source: Capital Group, 30 June 2019


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