LOS ANGELES, January 13, 2021 — Capital Group, home of the American Funds and one of the world’s largest investment management firms, announced it plans to offer the firm’s first actively managed exchange-traded funds (ETFs). Capital Group plans to launch both equity and fixed income ETF strategies early in 2022.
ETFs continue to grow in popularity among financial intermediaries and end investors due in part to potential tax benefits and an evolving regulatory framework.
Tim Armour, Chairman and CEO of Capital Group, notes, “We continue to believe that mutual funds provide great benefits to investors and will remain a core part of their portfolios. We also realize that adding ETFs to our suite of solutions will help us meet the needs of a large and growing group of investors who want the benefits of an ETF vehicle in their portfolio.”
Holly Framsted, CFA, will join the firm in March as Head of ETFs. In this new role, Framsted will be responsible for leading the development and launch of Capital Group’s suite of ETFs.
Framsted comes to Capital Group from BlackRock, where she most recently served as managing director and head of U.S. ETF Product Segments.
“The opportunity to build a market for active ETFs from Capital Group is tremendous,” said Framsted. “This is a company that doesn’t launch a new investment solution until it’s confident that it will be durable and differentiated, while seeking superior benefits over the long term for investors. I am excited to bring these solutions to market, expanding the quality of investments available in ETF form.”
“Throughout Capital Group’s almost 90-year history, the organization has introduced new investment services through a variety of structures as the marketplace and client preference have evolved,” said Matt O’Connor, Chairman and CEO of American Funds Distributors, part of Capital Group. “With Holly’s leadership, we will be ready in early 2022 to deliver active ETFs that seek to provide the same superior long-term results to our distribution partners and their clients that they have come to expect from us.”
Since its founding in 1931, Capital Group has evolved its offerings, starting with mutual funds and expanding into other services, including target date funds, Luxembourg funds, model portfolios, collective investment trusts and separately managed accounts.
- Specific strategies will be shared at a later date.
- The new offerings will complement the firm’s existing mutual funds and other investment strategies.
- At launch, Capital Group will offer its new ETFs through a variety of distribution partners and other platforms.
Framsted started at BlackRock in 2005 and held a variety of strategic product development roles with iShares. She also served as a portfolio manager. Prior to BlackRock, Framsted was with ArcLight Capital Partners where she was responsible for various research, risk management and portfolio management-related initiatives.
About Capital Group
Celebrating its 90th Anniversary in 2021, Capital Group, home of the American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability since 1931.
As of September 30, 2020, Capital Group manages more than $2.0 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.