Emerging Markets Equity | Capital Group

CAPITAL APPRECIATION

Emerging Markets Equity

Vehicle: Collective Investment Trust, Separate Account

Overview

Objective: The investment objective is long-term growth of capital by investing primarily in companies in developing countries.

  • Strategy inception date: 1986
  • Assets in strategy (billions): $4.8
  • Benchmark: MSCI Emerging Markets Investable Market Index
  • Invests in: Emerging markets equities
  • Minimum account size (millions):
    • Separate account: $100
    • Collective investment trust: $5

Assets in strategy as of March 31, 2018.

For a DC collective investment trust, plan size of $250 million may be used to satisfy the minimum account size requirement.


Approach
  • 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 helps make certain we adhere to regulations in the markets in which we invest

History of Emerging Markets 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

 

 


Returns

Investment Results (PDF)


 


Portfolio Composition

Geographic Diversification (PDF)

Sector Diversification (PDF)


 


Resources

 


Fund Characteristics

Defined Benefit Plans (PDF)

Endowments/Foundations (PDF)


Additional Reports

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)

 

 

 


The Capital Group companies manage 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.

Any collective investment trusts (“CITs”) available under the strategy shown are maintained by Capital Bank and Trust Company (“trustee”), which has retained an affiliate to serve as investment adviser to the trustee for the CITs.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses/summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants' plan provider or employer.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.