Objective: The investment objective is long-term growth of capital.
- Investment Strategy: The fund invests primarily in common stock and other equity securities of issuers in developing countries.
- Strategy inception date: May 31, 1986
- Assets in fund (billions): $2.1
- Benchmark: MSCI Emerging Markets Investable Market Index
- Invests in: Emerging markets equities
- A core belief in independent research, a long-term focus and diverse viewpoints through The Capital System℠ define our investment process
- As investment managers, we have found value throughout the developing world as markets have evolved, but our approach has remained the same since the inception of our strategy more than 30 years ago
- Most analysts at Capital have made research their careers, establishing long-standing relationships with key corporate managers and policymakers over the course of several business and market cycles
- We thoroughly analyze the prospects of each company regardless of its market index weighting, gathering information from on-site visits in order to determine each company’s business prospects, management and competitive position within a local and global context
- We aim to fully understand the social, economic, cultural and political factors that contribute to the long-term outlook for each company as well as the markets and industries within which they operate
- For example, investments in materials, energy and technology companies may be based on research by several dedicated emerging markets analysts, combined with extensive discussion among developed-market analysts, fixed-income and macroeconomic analysts, and several managers, all looking at similar data points from different perspectives
- These exchanges also help identify the best ways to invest in longer-term trends such as infrastructure development, urban growth and growing consumer demand in the emerging markets
- We have a comprehensive framework for addressing risk
- Our research process and The Capital System help diversify the portfolio
- Capital’s independent global investment control group monitors compliance with portfolio guidelines
- Our legal and compliance team provides guidance on the regulations in the markets in which we invest
History of Emerging Markets Equity at Capital Group
Capital’s first emerging markets equity fund was launched in 1986, more than one year prior to the inception of the MSCI Emerging Markets Index. We continue to have one of the largest dedicated emerging markets research efforts in the investment management business. Our emerging markets team is an integral part of Capital’s broader global investment group, closely interacting with the developed-market equity, debt and private equity research teams and benefiting from a cross-pollination of investment ideas as markets and economies become more globalized.
Portfolio Management Team