They believed they had a responsibility to provide stability and management continuity to investors, so they asked a key question: If a portfolio manager left the firm, could they keep portfolios going strong?
They pioneered a plan. By dividing portfolios into sections and giving each existing manager a portion to oversee, no portfolio would be dependent on a single person.
This distinctive way of managing assets became The Capital System. By incorporating the highest conviction investment ideas of each manager in a portfolio, we aim to both increase portfolio diversification and reduce volatility, which can give investors a smoother ride in bumpy markets.
For illustrative purposes only.
Many Capital Group funds have a Research Portfolio — a sleeve of investments within a portfolio — managed by our investment analysts. They’re not just offering ideas to managers: they’re active investors in the portfolio. This helps to signal their highest convictions to portfolio managers, and it provides years of investing experience before they join portfolio management teams.
Hypothetical growth is calculated by accumulating an initial investment of $100,000 based on monthly returns of Capital Group Global Equity Fund (Canada) – Series F (assumes reinvestment of all distributions and no withdrawals). Benchmark index returns reflect MSCI World Index (net dividends reinvested) from fund inception to May 31, 2011, and MSCI ACWI (net dividends reinvested) thereafter.
This hypothetical illustration is for informational purposes only and is not intended to provide tax, legal or financial advice. We assume no liability for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. The information contained herein has been supplied without verification and may be subject to change. Capital Group funds are available in Canada through registered dealers. For your individual situation, please consult your financial and tax advisors.