Posted inHead To Head

HEAD-TO-HEAD: Capital Group versus Nomura

FSA compares two international equities products: the Capital Group New Prespective Fund and the Nomura Global High Conviction Fund.
by Rupert Walker

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Conclusion

Morningstar has awarded the Capital Group product four stars based on historical returns, with a silver analyst rating. The firm also gives the Nomura fund four stars, but a forward-looking analyst rating of only neutral.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the Capital Group and Nomura products three crowns.

“While both are high conviction vehicles, they look to achieve their returns in very different ways. The Nomura fund is as active as you can get with around 20 stocks in the portfolio, backed up by strong performance,” said McDermott.

“However, we are big fans of the Capital Group approach,” he said.

“Having multiple managers, with a bench of analysts ready to step up, means that the fund avoids key person risk that is inherit within the space. As such, it gives the strategy longevity as demonstrated by a track record dating back well over 40 years.”

“For those looking for large cap global growth exposure with active management, but without having to worry about manager change or style drift over the medium or long-term, this is a compelling option,” McDermott concluded.

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