Emerging Markets Total Opportunities | Capital Group

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CAPITAL APPRECIATION

Emerging Markets Total Opportunities

Vehicle: Collective Investment Trust

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Overview

Objective: The investment objective is to provide long-term capital growth with lower volatility of returns and preservation of capital.

  • Strategy inception date: 2007
  • Assets in strategy (billions): $3.7
  • Invests in:
    • Emerging markets equities
    • Emerging markets fixed income (local and USD-dominated)
    • Convertibles
  • Minimum account size (millions):
    • Collective Investment Trust: $5

Assets in strategy as of June 30, 2017.


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 pre-determined 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

 

 

 

 

 

 

View investment results data

 

 

 


Resources


Fund Characteristics

Defined Benefit Plans (PDF)

Endowments/Foundations (PDF)


Additional Reports

Defined Benefit Plans

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)

 

 

 


This material is designed for use solely by Qualified Purchasers, institutional investors and consultants. It may not be disseminated to or used by individual plan participants or retail investors.

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.

This information supplements or enhances required or recommended disclosure and presentation provisions of the GIPS® standards, which if not included herein, are available upon request. GIPS is a trademark owned by CFA Institute.

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

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

Returns reflect the reinvestment of dividends, interest and other earnings. Returns are rebalanced monthly.

Composite returns reflect the Capital Group Emerging Markets Total Opportunities Composite.

Composite inception: September 30, 2007.

Daily volatility represents standard deviations based on daily returns and is annualized based on a 252-day factor. The composite’s primary investment objective is to seek long-term growth and preservation of capital with lower volatility of returns than emerging markets equities.

Composite returns are net of withholding taxes on dividends, interest and capital gains. Actual withholding tax rates vary according to the country of denomination and tax status of each portfolio.

Composite net returns are calculated using the current highest management fees for institutional investors. Actual investment returns net of management fees may differ depending on, among other things, the applicable fee schedule and portfolio size.

Portfolio reflects Capital Group Representative Emerging Markets Total Opportunities Portfolio.

P/E source: FactSet.

Securities in ten largest holdings are aggregated by issuer. Excludes cash and equivalents.

MSCI Emerging Markets IMI reflects MSCI Emerging Markets Index with net dividends reinvested from inception to November 30, 2007 and MSCI Emerging Markets Investable Market Index with net dividends reinvested thereafter.

Emerging markets blended market universe is defined as 50%/25%/25% MSCI Emerging Markets IMI with net dividends reinvested (MSCI Emerging Markets Index with net dividends reinvested to November 30, 2007 and MSCI Emerging Markets Investable Market Index with net dividends reinvested thereafter)/JP Morgan GBI-EM Global Diversified/JP Morgan EMBI Global.

Sources: 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. Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index is used with permission. The Index may not be copied, used, or distributed without J.P. Morgan’s prior written approval. Copyright 2017, J.P. Morgan Chase & Co. All rights reserved. This report, and any product, index or fund referred to herein, is not sponsored, endorsed or promoted in any way by J.P. Morgan or any of its affiliates who provide no warranties whatsoever, express or implied, and shall have no liability to any prospective investor, in connection with this report.

Each index is unmanaged.

Totals may not reconcile due to rounding.

Securities offered through American Funds Distributors, Inc.


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.