Emerging Markets Growth Fund SM | Capital Group

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Emerging Markets Growth FundSM

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

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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
  • Minimum account size (millions):
    • Emerging Markets Growth Fund $1mm

Assets in strategy as of June 30, 2017.


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 25 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.

All data as of June 30, 2017, unless otherwise specified.

Fund inception: May 31, 1986.

Returns are in USD. Periods greater than one year are annualized.

Gross of operating expenses reflects the investment returns of the Emerging Markets Growth Fund after adding back fund operating expenses, such as custodial and investment management fees. These returns are shown solely for comparison purposes to other investment alternatives that are shown gross of expenses. Please see the fund’s net returns for results experienced by fund investors.

Net of operating expenses total return percentages are calculated from net asset value assuming all distributions are reinvested.

Fund composition includes 6.1% in companies with substantial business assets in emerging markets but that are domiciled in developed markets, and 0.01% in a Capital International private equity fund.

The fund’s expense ratio as reflected in the prospectus dated September 1, 2016 (as supplemented December 12, 2016) includes fees and expenses incurred indirectly by the fund as a result of its investments in pooled investment vehicles (“acquired funds”).

Fund risk characteristics are net of operating expenses. The analysis is based on monthly data, and periods greater than one year are annualized.

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

MSCI Emerging Markets IMI reflects the S&P/IFC Global Composite Index with gross dividends reinvested from May 31, 1986 to December 31, 1987, MSCI Emerging Markets Index with gross dividends reinvested to December 31, 2000, MSCI Emerging Markets Index with net dividends reinvested to November 30, 2007 and MSCI Emerging Markets Investable Market Index with net dividends reinvested thereafter.

Emerging Markets Index – Standard reflects the S&P/IFC Global Composite Index with gross dividends reinvested from May 31, 1986 to December 31, 1987, MSCI Emerging Markets Index with gross dividends reinvested to December 31, 2000 and MSCI Emerging Markets Index with net dividends reinvested thereafter.

Sources: The S&P/IFC Global Composite Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2017 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. MSCI. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

Each index is unmanaged.

Totals may not reconcile due to rounding.

Securities offered through American Funds Distributors, Inc.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group which receives fees for managing, distributing and/or servicing its investments.


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.