Rebuild your portfolio for 2022 with Capital Group Capital Income Builder (LUX)

Important Notes:

  • The Fund’s investment in equity securities may incur significant losses due to fluctuation in equity values and exchange rates of currencies in which these investments are denominated.
  • The Fund’s investment in debt securities may be affected by changes in interest rates, credit ratings, and fluctuation in exchange rates of currencies in which these investments are denominated. Investment in bonds issued or guaranteed by governments may involve political, economic, default, or other risks.
  • The Fund may invest in emerging market securities and may be subject to additional risks arising from factors such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
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In a low-yield world, with heightened volatility in the China and Hong Kong equity markets and increasing uncertainty over inflation, it’s becoming increasingly challenging for investors to capture sustainable growth and income in a resilient way. It’s time to rethink and rebuild your portfolio for 2022.


Three key challenges for local investors

Heightened volatility in the China and Hong Kong equity markets

The risk of elevated inflation

Income goals look increasingly difficult to achieve

Andrew Lee
Investment Director

 

In the following videos (available in Cantonese only), Andrew Lee discusses key investment considerations for 2022 and why investors might   want to consider rebuilding their portfolio with Capital Group Capital Income Builder (LUX).

 

Andrew Lee is an investment director at Capital Group. He has 10 years of industry experience and joined Capital Group in 2021. Andrew is based in Hong Kong.


Three key reasons to consider Capital Group Capital Income Builder (LUX) in 2022

Seeks capital appreciation through global dividend-paying companies

Invests in opportunities to provide resilience in a higher inflation environment

Captures opportunities with sustainable income and income growth potential

Capital Group Capital Income Builder (LUX)

Why Capital Group?

The world’s largest active mutual fund asset manager1

 

US$2.6 trn

in assets under management

90 years

of investing since 1931

Employee-owned

investing alongside clients

 

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1. Data as at 31 December 2020. Source: Morningstar Direct. The investment universe includes active open-ended funds and Australian Insurance funds, excludes money market funds, excludes fund of funds, excludes feeder funds but Japan-domiciled feeder funds are included, domicile countries exclude China. Active funds are defined as non-index funds, and managers have been ranked by their branding name. Manager assets under management has been broken down by underlying funds’ global broad category group. This excludes segregated accounts.

This material has not been reviewed by the Securities and Futures Commission of Hong Kong.

Risk factors you should consider before investing:

  • This material is not intended to provide investment advice or be considered a personal recommendation.
  • The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
  • Past results are not a guarantee of future results.
  • The Hong Kong Covering Document, Luxembourg Prospectus and Product Key Fact Statement (“KFS”) set out risks, which, depending on the fund, may include risks associated with investing in fixed income, derivatives, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.

All data as at 30 November 2021 in US$ terms and attributable to Capital Group, unless otherwise stated.

Glossary

Capital appreciation: Capital appreciation is a rise in the value of an asset based on a rise in market price. It occurs when the asset invested commands a higher price in the market than an investor originally paid for the asset. The capital appreciation portion of the investment includes all of the market value exceeding the original investment or cost basis.

Commodities: Basic goods used in commerce that are interchangeable with other goods of the same type. For investors, commodities can be an important way to diversify their portfolios beyond traditional securities.

Correlation: A statistic that measures the degree to which two variables move in relation to each other.

Current income: Refers to cash flows that are anticipated in the immediate to short term. Current income investing is a strategy that seeks to identify investments that pay above-average distributions.

Dividend: A sum of money paid regularly by a company to its shareholders out of its profits (or reserves).

Down market: The period of time after a market top during which a security’s price trends downwards.

Index: An index represents a particular market or segment of it, and is a tool used to describe the market and compare returns on specific investments.

Inflation: The rise in the prices of goods and services, as happens when spending increases relative to the supply of goods on the market – in other words, too much money chasing too few goods.

Inflation-linked bonds: Also called Treasury Inflation-Protected Securities in the US, these bonds pay interest that is linked to an underlying index, such as the Consumer Price Index (CPI).

Investment grade bonds: A bond issued by a corporation or sovereign that has been awarded a ‘Baa3’ or higher credit rating by Fitch, or ‘BBB-’ or higher credit rating by Standard & Poor’s or Fitch.

Investment universe: An investment universe, or a universe of securities, refers to the complete set of securities that share some common feature or features. The scope of features used to define a universe of securities can be broad or narrow depending on an individual investor's goals and preferences.

MSCI ACWI: MSCI All Country World Index.

NR: Net Return.

Real estate investment trust (REIT): A company owning and typically operating real estate which generates income.

Securities: Fungible and tradable financial instruments used to raise capital in public and private markets. There are primarily three types of securities: equity – which provides ownership rights to holders; debt – essentially loans repaid with periodic payments; and hybrids – which combine aspects of debt and equity.

Yield: Yield is the income returned on an investment, such as the interest or dividends received from holding an asset. The yield is usually expressed as an annual percentage rate based on the investment’s cost, current market.