The US asset manager this week said it has launched the Capital Group American Balanced Fund across Asia and Europe, and to US investors overseas.
“Asian investors will have access to one of the largest and most established US multi-asset strategies through the American Balanced fund,” said Andy Budden, head of product and investment services for Asia Pacific.
“This fund will appeal to prudent investors who are looking to generate income and capture US growth opportunities over time, while conserving capital, in some of the world’s largest equity and fixed income markets.”
The strategy, launched on Tuesday, is available as a Luxembourg-domiciled fund to retail investors in Singapore and is identical to its US counterpart, Capital Group American Balanced Composite.
The US fund was incepted 45 years ago and its total asset under management is valued at $210bn currently, according to the firm. It has a focus on US equity and bond markets.
According to the fund factsheet, the American strategy’s portfolio comprises 54.9% US equities, 26.8% US bonds, 10% non-US equities, 5.5% cash and equivalents, and 2.8% non-US bonds.
The fund reported an average lifetime return of 9.7% per annum over the last 45 years, versus the 60%/40% S&P 500 Index of 10.3%.
The fund is designed to deliver a balance of capital conservation, income generation, and long-term growth of capital and income, said Capital Group in a statement.
The fund is managed by 10 managers, including Alan Berro, Hilda Applbaum and Pramod Atluri, according to the fund factsheet.
America-based Capital Group has total asset under management of more than $2.6trn as of end of June. It has 32 registered Luxembourg-domiciled Ucits funds across equities, fixed income and multi-asset.
The group launched its Capital Group Asian Horizon Fund (LUX) in Hong Kong and Singapore in March, which allocates up to 35% of its assets in A-shares via the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect schemes.
The firm also applied to launch four funds in Singapore in September last year, which include three equity funds and a fixed income offering.
