Emerging Markets Total Opportunities Fund | Capital Group

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CAPITAL APPRECIATION

Capital Group Emerging Markets Total Opportunities Fund℠

Vehicle: Mutual Fund Share Class: M

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Overview

Objective: Capital Group Emerging Markets Total Opportunities Fund℠ seeks long-term growth and preservation of capital with lower volatility of returns than emerging markets equities.

  • Fund inception date: 2012
  • Assets in fund (millions): $149.2
  • Portfolio Turnover: 60.78%
  • Benchmarks:
    • MSCI Emerging Markets Investable Markets Index
    • JP Morgan GBI-EM Global Diversified
    • JP Morgan EMBI Global
  • Invests in:
    • Emerging markets equities
    • Emerging markets fixed income (local and USD-denominated)
    • Convertibles
  • Minimum account size:
    • Institutional: $50K

Assets in fund as of June 30, 2017.


Approach
  • Research is the cornerstone of Capital’s investment process. Capital Group Emerging Markets Total Opportunities Fund managers draw upon a vast and deep well of emerging markets research and are aided by dedicated quantitative research analysts who help them identify securities with the best expected risk-return trade-offs given the goal of reduced volatility
  • The 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
  • Rather than using a top-down asset allocation framework, managers analyze valuations and risk parameters — and the relationship between them — to create a comprehensive view of the emerging markets universe. They have the flexibility to use a variety of investments, including forwards, warrants and cash instruments
  • 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 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 Team1

 

 

 

 


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.

Portfolio holdings may change.

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.

Fund inception: January 27, 2012.

Gross of operating expenses reflects the investment returns of the Capital Group Emerging Markets Total Opportunities 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.

P/E source: FactSet.

Expense ratios are as of the fund’s prospectus. The fund’s investment adviser has agreed to reimburse the fund for a portion of other expenses. The reimbursement will be in effect through at least January 1, 2018.

The investment adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Net expense ratios reflect the reimbursement, without which the expenses would have been higher.

Securities are aggregated by issuer. Excludes securities of the U.S. government that mature, or may be redeemed, in five years or less. Non-U.S. sovereign debt securities are aggregated separately by the following issue types: dollar denominated, local currency denominated and inflation linked.

Cash & equivalents include short-term securities, accrued income and other assets less liabilities.

MSCI index results reflect net dividends reinvested. Source: 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.

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.