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Capital Group launches US equity fund in Asia

Capital Group makes a bet that the US economy will stay robust and launches a US equity growth strategy available for professional investors in Asia.


The fund will invest in quality growth companies with proven track records, clear business models and strong management teams with the potential to create sustainable, long-term growth, according to a firm statement. 

“The US economy remains robust and although the market multiples are higher than historical averages, at individual company level we are still finding many quality growth companies whose prospects for expansion and earnings growth more than justify their current valuations,” said Andy Budden, investment director for the firm, in the statement.

“Many of these are global businesses, so they can generally benefit from less upward pressure on the US dollar.”

The strategy has a 50-year track record, according to the firm.

The Los Angeles-based fund house has registered 16 funds to sell in Hong Kong starting last year.

In Asia, the firm rolled out the New Perspective Fund in October 2015, the Investment Company of America in June 2016, the New World Fund in October 2016, and the Capital Group US Corporate Bond Fund in March.

The statement said that the above products, which are also Luxembourg-domiciled funds, have gathered around $1.7bn of assets from Asian investors. 

Part of the Mark Allen Group.