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HEAD-TO-HEAD: Capital Group versus Neuberger Berman

FSA compares two US equity products: The Capital Group AMCAP Fund and the Neuberger Berman US Multi Cap Opportunities Fund.

by Francis Nikolai Acosta 17 July 202029 November 2020

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INTRODUCTION

After the US equities market was largely hit in the middle of March, the asset class is now on positive territory, with the S&P 500 returning 0.60% on a year-to-date basis, according to data from FE Fundinfo.

Several asset and wealth managers have become positive over the asset class, despite the economic slowdown caused by the Covid-19 pandemic.

For example, JP Morgan Asset Management believes that overall earnings growth in the US equity market is expected to pick up 29% in 2021, which compares with 21% in Asia-Pacific (ex-Japan) and 23% in emerging markets.

Asia-based fund selectors are also positive on the asset class, with around 30% of them indicating that they will be buying US equity funds in the next 12 months, according to Last Word Media research.

Against this backdrop, FSA asked Samiya Jmili, manager research analyst at Morningstar, to compare two US equity products: The Capital Group AMCAP Fund and the Neuberger Berman US Multi Cap Opportunities Fund.

	Capital Group	Neuberger Berman
Size (Ucits / US-domiciled)	$113m / $70bn	$554m / $672m
Inception (Ucits / US-domiciled)	2017 /1967	2012 /2006
Manager	Barry Crosthwaite, Claudia Huntington, Eric Richter, James Terrile, Lawrence Solomon, Aidan O’Connell, Eric Stern, Gregory Wendt	Richard Nackenson
Three-year cumulative return*	38.91%	15.12%
Three-year annualised return**	11.29%	4.00%
Three-year annualised alpha**	2.93	-4.6
Three-year annualised volatility**	19.67	23.23
Morningstar analyst rating	Gold	Bronze
Morningstar star rating	***	***
FE Crown fund rating	–	**
OCF	1.65%	3.01%

Source: Morningstar, FE Fundinfo

* 14 July 2017 – 15 July 2017

** 15 July 2017 – 10 July 2017

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