Emerging Markets Total Opportunities | Capital Group

CAPITAL APPRECIATION

Emerging Markets Total Opportunities

Vehicle: Collective Investment Trust

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): $2.6
  • 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, 2018.


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

 


Returns

Investment Results (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.