Approach

• Our portfolio managers are experienced investors and draw upon a large research network that extends across the entire emerging markets spectrum. They are aided by dedicated quantitative research analysts who help them identify securities with the best expected risk-return trade-offs within a targeted volatility framework
• Research is the cornerstone of Capital’s investment process. Our equity, debt and private equity research teams are independent, yet work closely together to identify investment opportunities. Managers benefit from the synergy of analyzing both fixed income and equity securities
• The Emerging Markets Total Opportunities team consists of four portfolio managers, all with experience in both debt and equity investing
• Managers examine stocks, bonds and currencies within a dynamic risk-reward context; instead of a top-down asset allocation framework, managers look at valuations and risk parameters — and the relationship between them — to create a complete picture of the emerging markets universe
• Managers use a variety of investments, including futures, forwards, warrants and cash instruments, for maximum flexibility
• The dedicated quantitative analysts provide the portfolio managers with information on a variety of risk parameters for securities, markets and the overall portfolio. These analysts are also responsible for monitoring individual managers’ portfolios, tracking their progress in meeting return and volatility targets and identifying any unintended biases that may arise
• We recognize that exceptional periods in the markets — often marked by high volatility and risk aversion — can provide attractive opportunities. Our process allows portfolio managers to exceed predetermined risk parameters with the objective of maximizing returns over the long term
• 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 began investing in emerging markets debt in 1991 and had our first dedicated emerging markets debt account in 1994. Our first emerging markets private equity fund was launched in 1992. We continue to have one of the largest dedicated emerging markets research efforts in the investment management business.
 

Portfolio Management Team

Fund Characteristics

Defined Benefit Plans (PDF)

Endowments/Foundations (PDF)

Additional Reports

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)

Profile

Emerging Markets Total Opportunities Profile (PDF)