Keeping investors “on the train” during volatile periods | Capital Group Canada | Insights



Keeping investors "on the train" during volatile periods

Portfolio managers Alan Wilson and Hilda Applbaum (manager on Global Balanced) discuss how Capital's focus on mitigating risk can help keep investors "on the train."


Alan Wilson: If you think about an investment journey, the most difficult thing is if you kind of get off the train is getting back on, right?

I think what I would explain about the Capital journey, is it is designed to enable you to stay in for the longer term. It's designed so that you have a team of people so that if one person leaves it's not time to have to sell this because we've got to go find something else. It's designed to understand companies analytically so that you have a better chance of not having blowups and things that'll scare you out of things.

It’s designed to have minimal downside capture, so when it's most likely time to become afraid, you'll feel a little bit better, because the dips aren't quite so deep. It's designed to have a place where the folks invested with you are invested alongside you.

That's the premise. We believe that there is no getting rich quick, but you can accumulate wealth slowly. And to do that, you need to stay on the train, need to minimize the dips that'll scare you off, and find someone who'll be there for the duration and that's what we're built to do.

Hilda Applbaum:
It's important to keep investors invested. I invested through the '87 crisis, the 2000 crisis, and the 2008 crisis, and what made 2008 really different is I think we lost an entire generation of investors. People got so scared, the volatility was so great, the loss was so precipitous, that people took their chips off the table and said I'm going to preserve what I have left and that's it.

Not only didn't they get to enjoy the revaluation back to the original level which happened in 2012, they missed out everything that's happened since 2012, so their life goals, their life aspirations, their plans have been deferred.

So low volatility is important because we want to lose less, we don't want to lose any money for our investors, but we certainly want to mitigate their downside, but we really need to keep them invested.



Alan J. Wilson Portfolio Manager

Alan has 34 years of investment experience, 28 with Capital Group. Earlier in his career at Capital, he covered U.S. construction & housing, machinery & engineering, environmental services and energy companies as an investment analyst. Alan holds an MBA from Harvard and a bachelor's in civil engineering from MIT.

Hilda L. Applbaum Portfolio Manager

Hilda L. Applbaum is a portfolio manager at Capital Group. She has 31 years of investment experience and has been with Capital Group for 23 years. Earlier in her career, as an equity investment analyst at Capital, Hilda covered global convertible securities. Before joining Capital, she was a principal investment officer and director of research for the California Public Employees Retirement System, and a research analyst and economist at Federal Farm Credit Banks Funding Corp. in New York. Hilda holds a master’s degree in economics from New York University and a bachelor’s degree in economics from Barnard College of Columbia University graduating magna cum laude. She also holds the Chartered Financial Analyst® designation. Hilda is based in San Francisco.

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