Emerging Markets Growth Fund SM | Capital Group

CAPITAL APPRECIATION

Emerging Markets Growth FundSM

Vehicle: Mutual Fund Share Class: M  F-3  R-6

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 fund (billions): $2.5
  • Benchmark: MSCI Emerging Markets Investable Market Index
  • Invests in: Emerging markets equities

Assets in strategy as of March 31, 2018.


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 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

 

 

 


 


 


Resources

 

 


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.

Fund inception: May 31, 1986.

Emerging Markets Growth Fund, a registered investment company, is a U.S.-domiciled open-end mutual fund.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.


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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing.